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Second Substitute S.B. 23

Representative Joseph G. Murray proposes to substitute the following bill:


             1     
SPECIAL DISTRICT AND LOCAL DISTRICT AMENDMENTS

             2     
2001 GENERAL SESSION

             3     
STATE OF UTAH

             4     
Sponsor: David L. Gladwell

             5      This act modifies provisions relating to Special Districts and Limited Purpose Local
             6      Government Entities to rewrite and standardize annexation and dissolution provisions for
             7      specified special districts and for local districts. This act allows for the process to annex an
             8      area outside the boundaries of a specified special district or a local district to be initiated by
             9      petition or by resolution of a county or municipal legislative body. The act allows, in some
             10      circumstances, a county or municipality to terminate the annexation process if the county
             11      or municipality will provide the service proposed to be provided by the special or local
             12      district. The act requires, with some exceptions, the special or local district to hold a public
             13      hearing and provide notice of the hearing and provides for a protest and election, under
             14      certain circumstances. The act provides for a streamlined annexation process for a district
             15      providing service on a wholesale level and for a district providing transportation service.
             16      The act provides a procedure for districts to adjust a common boundary. The act provides
             17      a procedure for dissolving a district if certain conditions are present. The act provides for
             18      notice and a public hearing for a dissolution. The act repeals inconsistent and obsolete
             19      provisions and makes technical changes. This act provides a coordination clause.
             20      This act affects sections of Utah Code Annotated 1953 as follows:
             21      AMENDS:
             22          17A-2-101, as last amended by Chapter 177, Laws of Utah 2000
             23          17A-2-301, as last amended by Chapters 361 and 368, Laws of Utah 1998
             24          17A-2-317, as last amended by Chapter 227, Laws of Utah 1993
             25          17A-2-403, as last amended by Chapter 368, Laws of Utah 1998


             26          17A-2-405, as last amended by Chapter 21, Laws of Utah 1997
             27          17A-2-411, as last amended by Chapter 254, Laws of Utah 2000
             28          17A-2-413, as last amended by Chapter 227, Laws of Utah 1993
             29          17A-2-422, as last amended by Chapter 1, Laws of Utah 2000
             30          17A-2-530, as last amended by Chapter 254, Laws of Utah 2000
             31          17A-2-622, as last amended by Chapter 254, Laws of Utah 2000
             32          17A-2-706, as last amended by Chapter 254, Laws of Utah 2000
             33          17A-2-714, as last amended by Chapter 254, Laws of Utah 2000
             34          17A-2-715, as last amended by Chapter 254, Laws of Utah 2000
             35          17A-2-730, as renumbered and amended by Chapter 186, Laws of Utah 1990
             36          17A-2-738, as renumbered and amended by Chapter 186, Laws of Utah 1990
             37          17A-2-741, as last amended by Chapter 254, Laws of Utah 2000
             38          17A-2-749, as last amended by Chapter 254, Laws of Utah 2000
             39          17A-2-751, as last amended by Chapter 254, Laws of Utah 2000
             40          17A-2-752, as last amended by Chapter 254, Laws of Utah 2000
             41          17A-2-754, as last amended by Chapter 254, Laws of Utah 2000
             42          17A-2-758, as last amended by Chapter 254, Laws of Utah 2000
             43          17A-2-759, as last amended by Chapter 254, Laws of Utah 2000
             44          17A-2-801, as last amended by Chapter 254, Laws of Utah 2000
             45          17A-2-803, as last amended by Chapter 368, Laws of Utah 1998
             46          17A-2-842, as last amended by Chapter 254, Laws of Utah 2000
             47          17A-2-1048, as last amended by Chapter 254, Laws of Utah 2000
             48          17A-2-1049, as last amended by Chapter 254, Laws of Utah 2000
             49          17A-2-1420, as last amended by Chapter 254, Laws of Utah 2000
             50          17A-2-1821, as enacted by Chapter 216, Laws of Utah 1995
             51          17B-2-101, as enacted by Chapter 368, Laws of Utah 1998
             52          17B-2-201, as last amended by Chapter 1, Laws of Utah 2000
             53          17B-2-217, as last amended by Chapter 177, Laws of Utah 2000
             54          73-2-1, as last amended by Chapter 3, Laws of Utah 1991
             55      ENACTS:
             56          17A-2-101.3, Utah Code Annotated 1953


             57          17B-2-102, Utah Code Annotated 1953
             58          17B-2-501, Utah Code Annotated 1953
             59          17B-2-502, Utah Code Annotated 1953
             60          17B-2-503, Utah Code Annotated 1953
             61          17B-2-504, Utah Code Annotated 1953
             62          17B-2-505, Utah Code Annotated 1953
             63          17B-2-506, Utah Code Annotated 1953
             64          17B-2-507, Utah Code Annotated 1953
             65          17B-2-508, Utah Code Annotated 1953
             66          17B-2-509, Utah Code Annotated 1953
             67          17B-2-510, Utah Code Annotated 1953
             68          17B-2-511, Utah Code Annotated 1953
             69          17B-2-512, Utah Code Annotated 1953
             70          17B-2-513, Utah Code Annotated 1953
             71          17B-2-514, Utah Code Annotated 1953
             72          17B-2-515, Utah Code Annotated 1953
             73          17B-2-516, Utah Code Annotated 1953
             74          17B-2-517, Utah Code Annotated 1953
             75          17B-2-701, Utah Code Annotated 1953
             76          17B-2-702, Utah Code Annotated 1953
             77          17B-2-703, Utah Code Annotated 1953
             78          17B-2-704, Utah Code Annotated 1953
             79          17B-2-705, Utah Code Annotated 1953
             80          17B-2-706, Utah Code Annotated 1953
             81          17B-2-707, Utah Code Annotated 1953
             82          17B-2-708, Utah Code Annotated 1953
             83      RENUMBERS AND AMENDS:
             84          17A-3-244, (Renumbered from 17A-2-326, as renumbered and amended by Chapter 186,
             85      Laws of Utah 1990)
             86      REPEALS:
             87          17A-2-202, as last amended by Chapter 368, Laws of Utah 1998


             88          17A-2-203, as last amended by Chapter 227, Laws of Utah 1993
             89          17A-2-204, as last amended by Chapter 146, Laws of Utah 1994
             90          17A-2-205, as last amended by Chapter 227, Laws of Utah 1993
             91          17A-2-206, as last amended by Chapter 227, Laws of Utah 1993
             92          17A-2-207, as renumbered and amended by Chapter 186, Laws of Utah 1990
             93          17A-2-213, as last amended by Chapter 322, Laws of Utah 1997
             94          17A-2-214, as last amended by Chapter 322, Laws of Utah 1997
             95          17A-2-303, as last amended by Chapters 112 and 146, Laws of Utah 1994
             96          17A-2-304, as last amended by Chapter 146, Laws of Utah 1994
             97          17A-2-331, as last amended by Chapter 1, Laws of Utah 2000
             98          17A-2-332, as last amended by Chapter 227, Laws of Utah 1993
             99          17A-2-333, as last amended by Chapter 322, Laws of Utah 1997
             100          17A-2-339, as enacted by Chapter 129, Laws of Utah 1997
             101          17A-2-404, as last amended by Chapter 227, Laws of Utah 1993
             102          17A-2-406, as last amended by Chapter 227, Laws of Utah 1993
             103          17A-2-407, as renumbered and amended by Chapter 186, Laws of Utah 1990
             104          17A-2-408, as last amended by Chapter 227, Laws of Utah 1993
             105          17A-2-409, as last amended by Chapter 227, Laws of Utah 1993
             106          17A-2-410, as last amended by Chapter 227, Laws of Utah 1993
             107          17A-2-417, as last amended by Chapters 21 and 322, Laws of Utah 1997
             108          17A-2-420, as last amended by Chapter 227, Laws of Utah 1993
             109          17A-2-430, as last amended by Chapter 273, Laws of Utah 1991
             110          17A-2-529, as last amended by Chapter 254, Laws of Utah 2000
             111          17A-2-546, as last amended by Chapter 254, Laws of Utah 2000
             112          17A-2-561, as last amended by Chapter 254, Laws of Utah 2000
             113          17A-2-562, as last amended by Chapter 30, Laws of Utah 1992
             114          17A-2-563, as last amended by Chapter 254, Laws of Utah 2000
             115          17A-2-564, as renumbered and amended by Chapter 186, Laws of Utah 1990
             116          17A-2-565, as renumbered and amended by Chapter 186, Laws of Utah 1990
             117          17A-2-566, as last amended by Chapter 254, Laws of Utah 2000
             118          17A-2-567, as renumbered and amended by Chapter 186, Laws of Utah 1990


             119          17A-2-602, as last amended by Chapter 146, Laws of Utah 1994
             120          17A-2-603, as last amended by Chapter 146, Laws of Utah 1994
             121          17A-2-604, as last amended by Chapter 146, Laws of Utah 1994
             122          17A-2-605, as last amended by Chapter 1, Laws of Utah 2000
             123          17A-2-606, as last amended by Chapter 227, Laws of Utah 1993
             124          17A-2-608, as last amended by Chapters 12 and 146, Laws of Utah 1994
             125          17A-2-614, as last amended by Chapter 254, Laws of Utah 2000
             126          17A-2-624, as renumbered and amended by Chapter 186, Laws of Utah 1990
             127          17A-2-702, as last amended by Chapter 368, Laws of Utah 1998
             128          17A-2-703, as last amended by Chapter 254, Laws of Utah 2000
             129          17A-2-704, as last amended by Chapter 254, Laws of Utah 2000
             130          17A-2-705, as last amended by Chapter 254, Laws of Utah 2000
             131          17A-2-731, as last amended by Chapter 254, Laws of Utah 2000
             132          17A-2-732, as last amended by Chapter 254, Laws of Utah 2000
             133          17A-2-733, as last amended by Chapter 254, Laws of Utah 2000
             134          17A-2-734, as renumbered and amended by Chapter 186, Laws of Utah 1990
             135          17A-2-735, as renumbered and amended by Chapter 186, Laws of Utah 1990
             136          17A-2-736, as renumbered and amended by Chapter 186, Laws of Utah 1990
             137          17A-2-737, as renumbered and amended by Chapter 186, Laws of Utah 1990
             138          17A-2-745, as last amended by Chapter 254, Laws of Utah 2000
             139          17A-2-746, as last amended by Chapter 254, Laws of Utah 2000
             140          17A-2-747, as last amended by Chapter 254, Laws of Utah 2000
             141          17A-2-748, as last amended by Chapter 254, Laws of Utah 2000
             142          17A-2-811, as renumbered and amended by Chapter 186, Laws of Utah 1990
             143          17A-2-812, as last amended by Chapter 1, Laws of Utah 2000
             144          17A-2-813, as renumbered and amended by Chapter 186, Laws of Utah 1990
             145          17A-2-814, as renumbered and amended by Chapter 186, Laws of Utah 1990
             146          17A-2-815, as renumbered and amended by Chapter 186, Laws of Utah 1990
             147          17A-2-841, as last amended by Chapter 254, Laws of Utah 2000
             148          17A-2-912, as last amended by Chapter 322, Laws of Utah 1997
             149          17A-2-913, as renumbered and amended by Chapter 186, Laws of Utah 1990


             150          17A-2-1404, as last amended by Chapters 13 and 368, Laws of Utah 1998
             151          17A-2-1405, as renumbered and amended by Chapter 186, Laws of Utah 1990
             152          17A-2-1406, as last amended by Chapter 227, Laws of Utah 1993
             153          17A-2-1407, as last amended by Chapter 254, Laws of Utah 2000
             154          17A-2-1408, as renumbered and amended by Chapter 186, Laws of Utah 1990
             155          17A-2-1437, as last amended by Chapters 1 and 254, Laws of Utah 2000
             156          17A-2-1815, as enacted by Chapter 216, Laws of Utah 1995
             157          17A-2-1816, as enacted by Chapter 216, Laws of Utah 1995
             158          17A-2-1817, as enacted by Chapter 216, Laws of Utah 1995
             159          17A-2-1818, as enacted by Chapter 216, Laws of Utah 1995
             160          17A-2-1819, as enacted by Chapter 216, Laws of Utah 1995
             161          17A-2-1820, as enacted by Chapter 216, Laws of Utah 1995
             162      Be it enacted by the Legislature of the state of Utah:
             163          Section 1. Section 17A-2-101 is amended to read:
             164           17A-2-101. Creation procedures for certain independent special districts.
             165          (1) [(a) Beginning March 23, 1998, the] The creation of a special district under Part 2,
             166      Cemetery Maintenance Districts, Part 3, County Improvement Districts for Water, Sewerage, Flood
             167      Control, Electric and Gas, Part 4, County Service Area Act, Part 7, Irrigation Districts, Part 8,
             168      Metropolitan Water District Act, Part 9, Mosquito Abatement Districts, [and] Part 10, Utah Public
             169      Transit District Act, and Part 14, Water Conservancy Districts, shall be governed by Title 17B,
             170      Chapter 2, Part 2, Creation of Local Districts, in the same manner as if a local district under Title
             171      17B, Chapter 2, Local Districts, were proposed to be created.
             172          [(b) Beginning September 15, 1998, the creation of a special district under Part 14, Water
             173      Conservancy Districts, shall be governed by Title 17B, Chapter 2, Part 2, Creation of Local
             174      Districts, in the same manner as if a local district under Title 17B, Chapter 2, Local Districts, were
             175      proposed to be created.]
             176          (2) Subsection 17B-2-217 (1) does not prohibit the creation of one of the types of
             177      independent special districts listed in Subsection (1) under the creation provisions of Title 17B,
             178      Chapter 2, Part 2, Creation of Local Districts.
             179          (3) The provisions of Title 17B, Chapter 2, Part 2, Creation of Local Districts, do not apply
             180      to an independent special district under this chapter created before March 23, 1998.


             181          (4) (a) For each type of independent special district listed in Subsection (1), the provisions
             182      of the part under this chapter that applies to that district govern with respect to the appointment
             183      or election of the governing body of that type of independent special district after its creation under
             184      Title 17B, Chapter 2, Part 2, Creation of Local Districts.
             185          (b) If application of the provisions of Title 17B, Chapter 2, Part 2, Creation of Local
             186      Districts, results in the creation of an independent special district before the governing body of that
             187      district, under the applicable provisions of this chapter, takes office, the responsible body, as
             188      defined in Subsection 17B-2-201 (1)[(l)], shall be the governing body of the district until the
             189      governing body takes office under the applicable provisions of this chapter.
             190          (5) Notwithstanding Section 17B-2-202 , an independent special district listed in
             191      Subsection (1) may be created to provide only the services that are authorized under the part of this
             192      chapter applicable to that type of district.
             193          Section 2. Section 17A-2-101.3 is enacted to read:
             194          17A-2-101.3. Annexation and dissolution provisions for certain independent special
             195      districts.
             196          (1) Except as provided in Subsection (2), for each type of independent special district
             197      listed in Subsection 17A-2-101 (1) and for a drainage district under Part 5, Drainage Districts, a fire
             198      protection district under Part 6, Fire Protection Districts, and a regional service area under Part 18,
             199      Regional Service Area Act, on or after June 1, 2001:
             200          (a) annexation of additional territory to the district or adjustment of boundaries shared by
             201      two or more of those types of independent special districts shall be governed by Title 17B, Chapter
             202      2, Part 5, Annexation, to the same extent as if the independent special district were a local district
             203      under Title 17B, Chapter 2, Local Districts; and
             204          (b) dissolution of a district shall be governed by Title 17B, Chapter 2, Part 7, Dissolution,
             205      to the same extent as if the independent special district were a local district under Title 17B,
             206      Chapter 2, Local Districts.
             207          (2) An annexation, boundary adjustment, or dissolution proceeding begun before and still
             208      pending on June 1, 2001 for a type of independent special district referred to in Subsection (1) is
             209      not subject to Subsection (1)(a) or (b) but continues after that date to be governed by the statutory
             210      provisions in effect immediately before that date.
             211          Section 3. Section 17A-2-301 is amended to read:


             212           17A-2-301. Improvement district authority -- Area.
             213          (1) (a) An improvement district [may be established under this part and] may acquire
             214      through construction, purchase, gift, or condemnation, or any combination of these methods, and
             215      may operate all or any part of:
             216          (i) a system for the supply, treatment, and distribution of water;
             217          (ii) a system for the collection, treatment, and disposition of sewage;
             218          (iii) a system for the collection, retention, and disposition of storm and flood waters;
             219          (iv) a system for the generation, distribution, and sale of electricity; and
             220          (v) a system for the transmission of natural or manufactured gas if the system is:
             221          (A) connected to a gas plant, as defined in Section 54-2-1 , of a gas corporation, as defined
             222      in Section 54-2-1 , regulated under Section 54-4-1 ; and
             223          (B) to be used to facilitate gas utility service within the district if the gas utility service is
             224      not available within the district prior to the acquisition or construction of the system.
             225          (b) The new gas utility service under Subsection (1)(a)(v)(B) shall be provided by a gas
             226      corporation regulated under Section 54-4-1 and not by the district.
             227          (2) (a) (i) Subject to Subsection (2)[(c)](a)(ii), the area of a district under this part may
             228      include all or part of any county or counties, including all or any part of any incorporated
             229      municipalities, other incorporated areas, and unincorporated areas, as the needs of the inhabitants
             230      of the proposed districts may appear.
             231          (ii) Notwithstanding Subsection (2)(a)(i), the addition of any territory to a district under
             232      this part shall, on and after June 1, 2001 and as provided in Subsection 17A-2-101.3 (1)(a), be
             233      governed by Title 17B, Chapter 2, Part 5, Annexation.
             234          (b) The boundaries of a district authorized under this part do not need to be contiguous.
             235          [(c) (i) Notwithstanding Subsection (2)(a), an improvement district created under this part
             236      after May 4, 1998, for the supply, treatment, or distribution of water may not include part of a
             237      municipality unless:]
             238          [(A) the municipality's governing body adopts an ordinance or resolution consenting to the
             239      inclusion; and]
             240          [(B) the owners of over 50% of all parcels of real property, located in the area proposed
             241      to be included and that will have at least one water connection to the improvement district, request
             242      in writing that the improvement district and not the municipality provide the services proposed to


             243      be provided by the improvement district.]
             244          [(ii) For purposes of Subsection (2)(c)(i)(B), the provisions of Subsections
             245      17A-2-340 (2)(c)(i), (ii), (iii), and (iv) apply.]
             246          (3) If an improvement district authorized under this part was created solely for the purpose
             247      of acquiring a system for the collection, retention, or disposition of storm and flood waters, the
             248      county legislative body that created the district may, in its discretion and despite anything to the
             249      contrary in Section 17A-2-305 , act as the board of trustees of the district for so long as it considers
             250      desirable.
             251          [(4) All provisions of this part that establish, govern, or state the requirements and
             252      procedure for the creation of an improvement district:]
             253          [(a) are superseded by the provisions of Title 17B, Chapter 2, Part 2, Creation of Local
             254      Districts, with respect to the creation of an improvement district; and]
             255          [(b) remain valid to the extent they establish, govern, or state the requirements or
             256      procedure for annexation to an existing improvement district.]
             257          Section 4. Section 17A-2-317 is amended to read:
             258           17A-2-317. Ratification of districts created under prior laws -- Issuance of
             259      authorized bonds -- Amendatory proceedings.
             260          Whenever any district has been heretofore created or purported to be created under
             261      authority of Chapter 25, Laws of Utah 1947, Chapter 24, Laws of Utah 1949, or the act hereby
             262      amended and where proceedings have been adopted by the governing body of such district for the
             263      purpose of authorizing the bonds of such district, whether or not such bonds are payable from
             264      operating revenues or from taxes or both, and whether or not such bonds have been heretofore
             265      delivered, all proceedings had in connection with the creation of such district, the organization of
             266      the governing body thereof, and all proceedings had in connection with the authorization of such
             267      bonds, and, when duly delivered and paid for as required by such proceedings, the bonds
             268      themselves are hereby validated, ratified and declared to be binding and effective in accordance
             269      with their terms notwithstanding any failure to comply with any one or more pertinent statutory
             270      provisions and notwithstanding whether such proceedings have been continuously in effect from
             271      the date of their adoption to the date of the passage of this part.
             272          As to each district coming within the purview of this section which has heretofore
             273      authorized bonds which have not yet been issued, the governing body of such district is hereby


             274      authorized and empowered to do all things necessary to the issuance of such bonds and to the
             275      performance and carrying out of the contracts of such district, and such things may be done and
             276      such bonds when issued shall benefit from the curative provisions of this section whether or not
             277      changes in the details of the bonds and in the proceedings authorizing the issuance thereof have
             278      been made since the original adoption thereof or may hereafter be made and without regard to the
             279      nature of such changes.
             280          Where any district has been originally initiated or created under authority of either Chapter
             281      2, Part 3 or Chapter 3, Part 2, the governing authority of such district may proceed to issue bonds
             282      and operate facilities under the authority of the law under which it was created or may, if in so
             283      doing provision is made for the payment in full of all expenses and obligations heretofore incurred
             284      by such district for legal, engineering, fiscal agent's and other proper services, make such changes
             285      and amendments in the proceedings for the authorization of such bonds as may be necessary to
             286      effect the authorization and issuance of such bonds under the provisions of this part as amended,
             287      and to that end, may increase or decrease the amount of bonds so authorized, may make such
             288      bonds payable in whole or in part from the operating revenues of the district or from taxes or both
             289      as herein provided, and may make any other changes in such proceedings it may deem to the best
             290      interests of the district. If any such change has the effect of pledging or allocating to the payment
             291      of any such bond taxes to be levied by such district, such amendatory proceedings shall become
             292      effective only when there shall have been given [the] notice [contemplated by Section 17A-2-304
             293      hereof] of a public hearing by publishing notice once a week for three successive weeks in a
             294      newspaper of general circulation in each county that contains some or all of the district, and when
             295      the hearing [required by such section shall have] has been held and appeals taken therefrom, if any,
             296      terminated. For the purpose of this section, the county legislative body under districts initiated or
             297      created under said Chapter 3, Part 2, shall at its option, if it elects hereafter to proceed hereunder,
             298      exercise all duties and functions provided by this part to be exercised by the board of trustees of
             299      any district created hereunder or may cause an election to be held for the election of trustees in
             300      accordance with the provisions of this part.
             301          Section 5. Section 17A-2-403 is amended to read:
             302           17A-2-403. Authorized services -- Notice to and coordination with utility.
             303          (1) (a) [Whenever an unincorporated area in a county requires one or more of the following
             304      extended services which are not provided on a countywide basis] A county service area may


             305      provide: extended police protection; fire protection; culinary or irrigation water retail service;
             306      water conservation; local park, recreation or parkway facilities and services; cemeteries; public
             307      libraries; sewers, sewage and storm water treatment and disposal; flood control; garbage and refuse
             308      collection; street lighting; airports; planning and zoning; local streets and roads; curb, gutter and
             309      sidewalk construction and maintenance; mosquito abatement; health department services; hospital
             310      service; or the underground installation of an electric utility line or the conversion to underground
             311      of an existing electric utility line[, such services may be supplied by a county service area].
             312          (b) If [the provision of said services shall require] providing service requires the issuance
             313      of bonds or the creation of long-term obligations [said services], the service may be supplied by
             314      means available [at law] as [herein] provided in this part.
             315          [(b)] (2) Each county service area that supplies the service of the underground installation
             316      of an electric utility line or the conversion to underground of an existing electric utility line shall,
             317      in installing or converting the line, provide advance notice to and coordinate with the utility that
             318      owns the line.
             319          [(2) All provisions of this part that establish, govern, or state the requirements and
             320      procedure for the creation of a county service area:]
             321          [(a) are superseded by the provisions of Title 17B, Chapter 2, Part 2, Creation of Local
             322      Districts, with respect to the creation of a county service area; and]
             323          [(b) remain valid to the extent they establish, govern, or state the requirements or
             324      procedure for annexation to an existing county service area.]
             325          Section 6. Section 17A-2-405 is amended to read:
             326           17A-2-405. Area in county service area -- Overlapping of areas.
             327          (1) (a) [A] The boundaries of a county service area may [consist of] include:
             328          (i) all or part of any unincorporated area of one county; and
             329          (ii) territory located within a municipality[, as provided in Sections 17A-2-417 and
             330      17A-2-418 ].
             331          (b) Notwithstanding Subsection (1)(a), the addition of any territory to a county service area
             332      under this part shall, on and after June 1, 2001 and as provided in Subsection 17A-2-101.3 (1)(a),
             333      be governed by Title 17B, Chapter 2, Part 5, Annexation.
             334          [(b)] (2) County service areas may overlap if the service area which overlaps is entirely
             335      within the boundaries of the service area which it overlaps.


             336          [(c) (i)] (3) (a) Except as provided in Subsection [(1)(c)(ii)] (3)(b), not more than two
             337      service areas may occupy the same area in the county.
             338          [(ii)] (b) Notwithstanding Subsection [(1)(c)(i)] (3)(a), three service areas may occupy the
             339      same area in the county if one of the overlapping service areas is countywide.
             340          [(d)] (4) No overlapping service areas may perform the same services.
             341          [(e)] (5) All parts of a county service area need not be contiguous.
             342          [(2) (a) Proceedings for the establishment of a county service area may be commenced at
             343      any time and shall be instituted by the county legislative body if:]
             344          [(i) a majority of the county legislative body vote in support of a resolution made by a
             345      member of that legislative body, describing the boundaries of the territory proposed to be included
             346      in the area and specifying the type or types of extended county services already provided or to be
             347      provided;]
             348          [(ii) a petition is filed with the county clerk, requesting the institution of such proceedings
             349      signed by not less than 25% of the taxpayers owning real property which is located in the territory
             350      proposed to be included within the area; or]
             351          [(iii) a petition is filed with the county clerk, requesting the institution of such proceedings
             352      signed by not less than 25% of the qualified voters residing in the territory proposed to be included
             353      within the area.]
             354          [(b) The petition under Subsection (2)(a)(ii) or (iii) may consist of any number of separate
             355      instruments.]
             356          [(3) The resolution or the petitions described in Subsection (2) and all separate instruments
             357      related to them shall describe the boundaries of the proposed area with definiteness and certainty.]
             358          Section 7. Section 17A-2-411 is amended to read:
             359           17A-2-411. Board of trustees -- Selection procedures -- Surety bonds -- Other
             360      provisions applicable.
             361          (1) Each service area authorized under this part shall be governed by a board of trustees.
             362          (2) (a) Upon the creation of a county service area, the county legislative body may adopt
             363      an ordinance declaring that the county legislative body of the county shall act as the trustees of the
             364      service area.
             365          (b) Upon passage of the ordinance, the county legislative body of the county shall act as
             366      trustees of the service area with all the powers, authority, and responsibility vested in the trustees


             367      under this part.
             368          (c) (i) The county legislative body, when acting as trustees, may use any existing county
             369      offices, officers, or employees for the purposes of the service area.
             370          (ii) The county legislative body shall charge costs of those services to the service area and
             371      require them to be paid to the county treasurer for the general fund of the county.
             372          (3) At any time after the creation of a board of trustees as provided in Subsection (1), if
             373      no elected board has been established as provided in this section, the county legislative body of
             374      the county in which the service area is located may:
             375          (a) by ordinance, delegate its powers to an appointed or elected board of trustees as
             376      provided in Chapter 1, Part 3, Special District Board Selection Procedures; and
             377          (b) provide for the appointment or election of the board by following the procedures and
             378      requirements of Chapter 1, Part 3, Special District Board Selection Procedures.
             379          (4) At any time after the creation of a board of trustees as provided in Subsections (2) and
             380      (3), the county legislative body shall hold an election for trustees by following the procedures and
             381      requirements of Chapter 1, Part 3, Special District Board Selection Procedures, if:
             382          (a) the county legislative body receives a petition requesting that an election for trustees
             383      be held that is:
             384          (i) signed by at least 10% of persons eligible to vote in an election in a service area
             385      authorized under this part; and
             386          (ii) filed with the county legislative body at least 30 days before the date set for a bond
             387      election or 90 days before the date set for any municipal election; or
             388          (b) territory located within a municipality is annexed into the county service area under
             389      [Section 17A-2-417 ] Title 17B, Chapter 2, Part 5, Annexation.
             390          (5) (a) If there is no elected board of trustees at the time of the first bond election, trustees
             391      shall be elected in conjunction with that bond election.
             392          (b) Candidates for election to the board of trustees shall be taxpayers and qualified voters
             393      in the service area.
             394          (c) At any time within 30 days after the county legislative body has called a bond election,
             395      but not less than 15 days before the day of election, any person who is qualified to vote in the
             396      service area may file a signed statement with the county clerk announcing the person's candidacy
             397      to be one of the first elected trustees of the service area.


             398          (d) The board of trustees shall provide a ballot separate from the bond ballot that contains
             399      the names of the candidates and blanks in which the voters may write in additional names.
             400          (e) A voter at the election may vote for the number of trustee positions to be filled.
             401          (f) The persons receiving the highest number of votes at the election are members of the
             402      board of trustees.
             403          (6) (a) Each member of the board of trustees may vote on all questions, orders, resolutions,
             404      and ordinances coming before the board.
             405          (b) Notwithstanding Section 17B-2-404 , if the county legislative body acts as the board of
             406      trustees, no compensation may be paid to them as trustees.
             407          (c) Each trustee who is also a member of the county legislative body shall take the oath
             408      of office and shall give the bond that is required by law for members of the county legislative body.
             409          (7) All qualified voters in the service area may vote in elections to select trustees and in
             410      elections to approve the issuance of bonds.
             411          (8) Following the election or appointment of the first trustees, each elected trustee shall
             412      be elected according to the procedures and requirements of Chapter 1, Part 3, Special District
             413      Board Selection Procedures.
             414          (9) Each vacancy of an elected trustee in office shall be filled according to the procedures
             415      and requirements of Chapter 1, Part 3, Special District Board Selection Procedures.
             416          (10) (a) The provisions of Title 17B, Chapter 2, Part 4, Board of Trustees, apply to each
             417      county service area to the same extent as if the county service area were a local district under Title
             418      17B, Chapter 2, Local Districts.
             419          (b) (i) If a change in the number of board of trustees members is necessary to comply with
             420      the requirements of Subsection 17B-2-402 (1), the board of trustees may by majority vote,
             421      notwithstanding Subsection 17B-2-402 (3), change the number of board members to the next odd
             422      number higher or lower than the number of current board members.
             423          (ii) If a change under Subsection (10)(b)(i) decreases the number of board members, the
             424      change may not take effect until the expiration of the term of the member whose term next expires.
             425          (iii) If a change in the number of board members necessitated by Subsection 17B-2-402 (1)
             426      would cause the district to violate a provision of bonds issued by the district, the number of board
             427      members may be modified to the extent necessary to avoid a violation.
             428          (c) (i) If a change in the expiration date of the term of a board of trustees member is


             429      necessary to comply with the requirements of Subsection 17B-2-403 (1), the term of each board
             430      member whose term expires on a day other than the first Monday in January shall be extended to
             431      the first Monday in January after the normal expiration date next following the special district
             432      election date under Section 17A-1-305 .
             433          (ii) If a change in the length of the term of a board of trustees member is necessary to
             434      comply with the requirements of Subsection 17B-2-403 (2), the change may not take effect until
             435      the expiration of the term of the member whose term length is to be changed.
             436          Section 8. Section 17A-2-413 is amended to read:
             437           17A-2-413. Adding a new service within county service area.
             438          [(1) (a) After a] A county service area [is established, the board] may [extend the types of
             439      services] begin to provide within the boundaries of the county service area a service that it had not
             440      previously provided [by the area] by using the procedures set forth in [this part] Title 17B, Chapter
             441      2, Part 2, Creation of Local Districts, for the creation of [the] a county service area as though a new
             442      county service area were being created to provide that service.
             443          [(b) If the board extends the services provided, it shall make the appropriate changes in
             444      the wording of the required instruments.]
             445          [(2) If a county service area is abandoned as provided in this part, the county legislative
             446      body may:]
             447          [(a) discontinue any services for which the county service area was created; or]
             448          [(b) dissolve the county service area if the area has no bonds or other indebtedness
             449      outstanding.]
             450          Section 9. Section 17A-2-422 is amended to read:
             451           17A-2-422. Proposal to incur indebtedness -- Resolution -- Notice -- Hearing --
             452      Calling of bond election -- Written protests.
             453          (1) (a) A proposal to incur indebtedness which would cause the total county debt to exceed
             454      the county taxes for the current year or which would not be payable within one year, as the case
             455      may be, may be originated by a majority vote of the board of trustees or by petition of not less than
             456      100 property owners or 10% of all the property owners, whichever is less, who own property
             457      within the county service area or by petition of not less than 10% of all the qualified voters residing
             458      in the county service area.
             459          (b) The proposal shall specify the particular purpose for which the indebtedness is to be


             460      created, the amount in money of bonds which it is proposed to issue and the name and number of
             461      the county service area.
             462          (2) After the proposal has been made, the board of trustees, as expeditiously as possible,
             463      shall adopt a resolution fixing a time and place at which the proposal shall be heard, which time
             464      shall be not less than 30 nor more than 60 days after the date of adoption of the resolution.
             465          (3) (a) The board of trustees shall immediately issue a notice of the time and place of
             466      hearing, which notice shall state that all persons who own property in the service area when the
             467      debt is payable solely from within the county service area or all persons residing in the county
             468      when the debt is countywide may appear at the hearing and contend for or protest against the
             469      incurrence of the debt and the holding of a bond election.
             470          (b) If the service area has issued bonds, the notice shall include a statement of the amount
             471      of outstanding bonds of the service area and shall indicate whether the bonds are general
             472      obligations of the county or are payable solely from within the county service area.
             473          (4) (a) The board of trustees shall cause the notice to be published once a week during four
             474      consecutive weeks in a newspaper of general circulation in the county, the first publication to be
             475      not more than 60 days nor less than 28 days prior to the date of the hearing.
             476          (b) It is not necessary that the notice be published on the same day of the week in each of
             477      four calendar weeks, but not less than 20 days shall intervene between the first publication and the
             478      last publication.
             479          (5) At the time and place set for the hearing of the petition, or upon a subsequent date fixed
             480      at the original hearing the board of trustees shall proceed to hear the proposal and all matters in
             481      respect to a bond election.
             482          (6) If, upon the hearing of the proposal, the board of trustees finds that due notice has been
             483      given and that the services under discussion would be for the benefit of all taxable property or the
             484      real property owners situated in the service area, then the board shall make and cause to be entered
             485      of record upon its minutes an order so finding, and shall proceed to call the bond election and, if
             486      a majority of those voting, vote in the affirmative, to issue the bonds in the manner provided.
             487          (7) The board may reduce the amount in money of the bonds named in the petition.
             488          (8) (a) If written protests are filed prior to the date fixed for the original hearing, signed
             489      by property owners owning taxable property in the service area with a taxable value in excess of
             490      40% of the taxable value of all the taxable property within the service area, according to the last


             491      assessment roll for county taxes completed prior to the holding of the election or by 40% of all the
             492      qualified voters residing in the county service area or by 40% of all the qualified voters residing
             493      in the county, the board does not have authority to proceed with the calling of the election, and no
             494      new petition for a bond election in the service area may be entertained for a period of 12 months
             495      from that time.
             496          (b) If written protests are filed and the board of trustees determines that the protests so
             497      filed represent less than the 40% required, a resolution or finding in writing of the board calling
             498      the election shall so recite and the recital shall be conclusive.
             499          [(9) The provisions of this section and of Section 17A-2-407 with regard to publication
             500      of notice in a newspaper may be carried out concurrently.]
             501          Section 10. Section 17A-2-530 is amended to read:
             502           17A-2-530. Viewing of annexed land by board of trustees -- Assessment for taxation
             503      -- Board of equalization -- Hearing -- Notice -- Lien for taxes.
             504          (1) The board of trustees shall, as soon as practicable after [the recording of the order of]
             505      an annexation of land to the district under Title 17B, Chapter 2, Part 5, Annexation:
             506          (a) view each tract of land so annexed to the district;
             507          (b) carefully consider all the damages and benefits that each particular tract of land shall
             508      receive from the annexation to the drainage district and from the construction and maintenance of
             509      such drainage system; and
             510          (c) assess each tract of land in accordance with the benefits to be received by it, making
             511      proper allowance for damage, if [there be] any.
             512          (2) After the assessment under Subsection (1) is made, [the secretary of] the board of
             513      trustees shall transmit the assessment to the county legislative body.
             514          (3) (a) The county legislative body shall:
             515          (i) at its next regular meeting fix a time and place where it shall sit as a board of
             516      equalization and equalize and determine the benefits and taxes to be assessed against the land; and
             517          (ii) except as provided in Subsection (3)(b), publish a notice of the board of equalization
             518      hearing at least once each week for two consecutive weeks in a newspaper having general
             519      circulation in the county or counties where the drainage district is situated.
             520          (b) If the annexation resulted from a petition signed by all the owners of real property
             521      within the annexed area whose addresses were included in the petition, the county legislative body


             522      may, in lieu of the notice under Subsection (3)(a)(ii), give notice of the board of equalization
             523      hearing by mailing a copy of the notice to each owner of real property at the address stated in the
             524      petition.
             525          (c) (i) The first publication of the notice required under Subsection (3)(a)(ii) shall not be
             526      less than 15 days or more than 30 days prior to the date of the hearing.
             527          (ii) If the residence or post office address of an owner of the lands so annexed is known,
             528      the county clerk shall cause a copy of the notice and a copy of the proposed benefits to be sent by
             529      United States mail to the landowner at least 15 days prior to the time fixed for the hearing.
             530          (d) The notice shall state generally the purpose of the hearing and the time and place where
             531      the county legislative body shall meet as a board of equalization to hear and determine any
             532      complaint against the assessments.
             533          (4) (a) The county legislative body, at the time and place stated in the notice, shall sit as
             534      a board of equalization and shall make and determine the benefits to be assessed against each tract
             535      of annexed land.
             536          (b) The assessment of benefits shall be added to and made a part of the benefit assessment
             537      roll of the drainage district, and thereafter:
             538          (i) all such lands, easements, or interests in land shall be assessed in accordance with the
             539      assessment roll; and
             540          (ii) such assessment roll of benefits and taxes or user fees or charges shall be the basis of
             541      a lien upon the parcels of land or interest in land as thus equalized for all district purposes and
             542      indebtedness.
             543          Section 11. Section 17A-2-622 is amended to read:
             544           17A-2-622. Election regarding issuance of bonds.
             545          (1) After a fire protection district has been created, a petition may be presented to the fire
             546      protection district board of trustees requesting the board to order an election to determine whether
             547      the bonds of the district shall be issued to the amount and for the purpose or purposes stated in the
             548      petition. [Such petition shall comply in all respects to the requirements of Section 17A-2-602
             549      hereof, except shall be made to the fire protection district board of trustees. After the filing of the
             550      petition, the board of trustees' procedure in respect to publication of notice, contents of notice,
             551      hearing and determination of petition, continuance, objections, determination of amount of bonds
             552      shall comply, as nearly as practicable, with Sections 17A-2-603 and 17A-2-604 .]


             553          (2) (a) Each petition under Subsection (1) shall be signed by 25% or more of the holders
             554      of title of real property, or documentary evidence of title, within the boundaries of the district
             555      whose names appear as such upon the last county assessment roll.
             556          (b) If the petition is signed by all of the holders of title or documentary evidence of title
             557      within the boundaries of the district, a hearing on the petition and election shall be dispensed with.
             558          (3) (a) The board of trustees shall set a time and place for hearing upon the petition, which
             559      shall be not less than four nor more than six weeks from the date of the filing.
             560          (b) The board of trustees shall publish a notice of the time of the hearing once each week
             561      for three successive weeks, previous to the time of the hearing, in a newspaper published within
             562      the county, or if there is no newspaper so published, then by posting the notice in at least three
             563      public places in the district for a period of 15 days.
             564          (c) Each notice under Subsection (3)(b) shall state that any taxpayer within the district may
             565      appear on the date fixed for the hearing and offer objection to the issuance of bonds of such
             566      district.
             567          (4) (a) At the time and place fixed for the hearing on the petition or at any adjournment
             568      or adjournments of the hearing, which shall not extend the time for determining the petition for
             569      more than 30 days in all from the original date of hearing, the board of trustees shall hear the
             570      petition and all competent and relevant evidence, oral or written, in support of or in objection to
             571      the petition.
             572          (b) The board of trustees shall, after a full hearing, determine whether an election should
             573      be held on the question of issuing the bonds.
             574          [(2)] (5) Adoption of [the] a resolution calling the election, determination of voters'
             575      qualifications, notice and conduct of the election, and the canvass of election results shall be
             576      accomplished in the manner prescribed in Title 11, Chapter 14, Utah Municipal Bond Act. The fire
             577      protection district board of trustees, for purposes of the election, may treat the entire district as a
             578      single precinct or divide the district into several precincts and it may fix such polling places as they
             579      consider appropriate.
             580          Section 12. Section 17A-2-706 is amended to read:
             581           17A-2-706. Regular election of district for electing board members -- Election
             582      provisions -- Official bond -- Fiscal agents.
             583          (1) [The] (a) Except as provided in Subsection (2), the regular election of the district, for


             584      the purpose of electing a board of trustees, shall be held according to the procedures and
             585      requirements of Title 17A, Chapter 1, Part 3, Special District Board Selection Procedures.
             586          (2) (a) Each ballot used in an election under Subsection (1) shall contain the names of the
             587      persons to be voted for as members of the board of trustees.
             588          (b) Each landowner may vote for three trustees, one for each division.
             589          (c) Each elector is entitled to cast one vote for each acre-foot of water or fraction of
             590      acre-foot allotted to the land owned by the elector.
             591          (d) The board of trustees shall:
             592          (i) meet on the first Monday next succeeding the election under Subsection (1) and canvass
             593      the returns of the election;
             594          (ii) declare the persons receiving the highest number of votes for the several offices to be
             595      duly elected to the office; and
             596          (iii) file the returns with the county clerk.
             597          [(2)] (3) (a) If any district organized under this part is appointed fiscal agent of the United
             598      States or is authorized by the United States to collect money for and on behalf of the United States
             599      in connection with any federal project, each trustee shall execute an additional official bond in
             600      whatever sum that the Secretary of the Interior requires, conditioned upon the faithful discharge
             601      of the duties of the trustee's office.
             602          (b) The district shall execute an additional bond for the faithful discharge by the district
             603      of its duties as fiscal or other agent of the United States under that appointment or authorization.
             604          (c) Those additional official bonds shall be filed in the office of the county clerk.
             605          (d) The United States or any person injured by the failure of a trustee or of the district to
             606      fully, promptly, and completely perform their respective duties may sue upon those official bonds.
             607          Section 13. Section 17A-2-714 is amended to read:
             608           17A-2-714. Judicial notice -- Presumptions as to organization.
             609          [Judicial] For a district created before March 23, 1998, judicial notice shall be taken in all
             610      actions, suits, and judicial proceedings in any court of this state of the organization and existence
             611      of any irrigation district of this state, [now or hereafter organized,] from and after the filing in the
             612      office of the county clerk of the order of the county legislative body [mentioned in Section
             613      17A-2-705 ] creating the district and a certified copy of the order shall be prima facie evidence in
             614      all actions, suits and proceedings in any court of this state of the regularity and legal sufficiency


             615      of all acts, matters, and proceedings [therein recited and set forth] relating to the creation of the
             616      district; and any such irrigation district, in regard to which any such order has been heretofore or
             617      may hereafter be [entered] issued, and which has exercised or shall exercise the rights and powers
             618      of such a district, and shall have had or shall have in office a board of trustees exercising the duties
             619      of their office, the legality or regularity of the formation or organization whereof shall not have
             620      been questioned by proceedings in quo warranto instituted in the district court of the county in
             621      which such district or the greater portion thereof is situated within one year from the date of such
             622      filing, shall be conclusively considered to be a legally and regularly organized, established and
             623      existing irrigation district within the meaning of this part, and its due and lawful formation and
             624      organization shall not thereafter be questioned in any action, suit or proceeding whether brought
             625      under the provisions of this part or otherwise.
             626          Section 14. Section 17A-2-715 is amended to read:
             627           17A-2-715. Issuance of bonds -- Special election -- Contract with the United States
             628      -- Additional bonding -- Validation of previous issues.
             629          For the purpose of constructing or purchasing or acquiring necessary reservoir sites,
             630      reservoirs, water, water filings, water rights, canals, ditches and works, stock of irrigation, canal,
             631      or reservoir companies, and other necessary property and rights, for the assumption of any
             632      indebtedness to the United States, for the purpose of paying interest upon the bonds herein
             633      authorized during the period of construction and for not more than four years thereafter, and
             634      otherwise carrying out the provisions of this part, the board of trustees of any such district shall
             635      as soon after such district has been organized as may be practicable, estimate and determine the
             636      amount of money necessary to be raised for such purposes, and shall forthwith call a special
             637      election, at which election shall be submitted to the landowners of such district, possessing the
             638      qualifications prescribed by this part, the question of whether or not the bonds of the district shall
             639      be issued in the amount so determined. Notice of such election shall be given by posting notice
             640      in one public place in each election precinct in the district for at least 20 days, and also by
             641      publication in the manner prescribed in [Section 17A-2-702 ] Subsection 17A-2-751 (2). Such
             642      notice shall specify the time of holding the election, the amount and purpose of bonds proposed
             643      to be issued, and the election must be held and the result thereof determined and declared in all
             644      respects as nearly as possible in conformity with the provisions of this part governing the election
             645      of officers; provided, that no informalities in conducting such election shall invalidate the same,


             646      if the elections have been otherwise fairly conducted. At such election, the ballots shall contain
             647      the words "Bonds -- Yes," or "Bonds -- No," or words equivalent thereto. If a two-thirds majority
             648      of the votes cast at such election are "Bonds --Yes," the board of trustees shall cause the bonds to
             649      be executed and payable in series as follows, to wit:
             650          Not later than at the expiration of 11 years, and annually, after the date of first payment of
             651      principal amount, a certain percentage, not less than 3%, of the whole amount and number of the
             652      bonds; at the expiration of the final period for which the bonds have been issued, which period
             653      shall in no event exceed 40 years, a percentage sufficient to pay off the remainder of the bonds;
             654      that the several enumerated percentages be of the entire amount of the bond issue; that each bond
             655      must be payable at the given time for its entire amount, and not for percentage. That the bonds
             656      shall bear interest at the rate of not to exceed 6% per annum, payable semiannually on the 1st day
             657      of June and December of each year.
             658          The principal and interest shall be payable at the office of the county treasurer of the county
             659      in which the organization of the district was effected as aforesaid, and at such other places as the
             660      board of trustees may designate in such bonds. The bonds shall be each of the denomination of not
             661      less than $100, nor more than $1,000, shall be negotiable in form, executed in the name of the
             662      district and signed by the chair and secretary and the seal of the district shall be affixed thereto.
             663      Bonds deposited with the United States may call for the payment of such interest not exceeding
             664      6% per annum, may be of such denomination, and may call for the repayment of the principal at
             665      such times as may be agreed upon between the board and the United States, and where contract
             666      is made and bonds are not deposited with the United States, the contract may likewise call for the
             667      repayment of the principal at such time as may be agreed upon. The bonds shall be numbered
             668      consecutively as executed and bear the date of authorization. Coupons for the interest shall be
             669      attached to each bond bearing the printed or lithographed facsimile of the signature of the chair and
             670      the secretary. The bonds shall express on their face that they are issued by the authority of this part,
             671      stating its title and date of approval. The secretary shall keep a record of the bonds sold, their
             672      number, date of sale, the price received, the name of the purchaser and may keep a transfer
             673      register; provided, any such district may provide for the issuance of bonds that will mature in any
             674      number of years less than 40, and arrange for the payment thereof, in series as above provided;
             675      provided, further, that when the money obtained from any previous issue of bonds has become
             676      exhausted by expenditures, herein authorized therefor, and it becomes necessary to raise additional


             677      money for such purposes, additional bonds may be issued after submitting the question at a special
             678      election to the qualified voters of the district, and otherwise complying with the provisions of this
             679      section in respect to an original issue of such bonds; provided, also that the lien for taxes, for the
             680      payment of interest and principal for any bond issue, or for any indebtedness under any contract
             681      with the United States for or with which bonds have not been deposited, shall be a prior lien to that
             682      of any subsequent bond issue.
             683          All bonds heretofore executed by any irrigation district wherein the proceedings for the
             684      organization of such district and authorizing the issuance of such bonds have been approved and
             685      confirmed by the district court of the judicial district within which such irrigation district is
             686      located, are hereby confirmed and validated.
             687          Section 15. Section 17A-2-730 is amended to read:
             688           17A-2-730. Exclusion of lands from district.
             689          [Lands] (1) Land may be [included in or] excluded from [any] an irrigation district[, now
             690      or hereafter organized under the provisions of] as provided in this part[, in the manner herein
             691      prescribed; but any such inclusion or].
             692          (2) An exclusion of [lands shall] land may not impair or affect the district organization or
             693      its rights in or to property, or any of its rights or privileges [of whatsoever kind or nature], nor
             694      [shall] may it affect, impair, or discharge any contract, obligation, lien, or charge for or upon which
             695      it was or might become liable or chargeable had [such inclusion or] the exclusion [of lands] not
             696      [been made; provided that in case] occurred.
             697          (3) If a contract has been made between the district and the United States as provided in
             698      this part, no [lands shall] land may be [included in or] excluded from the district until the United
             699      States [shall assent thereto] consents in writing to the exclusion and [such assent be] the consent
             700      is filed with the board of [directors] trustees.
             701          Section 16. Section 17A-2-738 is amended to read:
             702           17A-2-738. Redivision of districts.
             703          At least 30 days before the next general election of [such] a district[, after the inclusion]
             704      under this part following an annexation of lands under Title 17B, Chapter 2, Part 5, Annexation,
             705      that occurs on or after June 1, 2001, or following an exclusion of land under this part, the board
             706      of [directors thereof] trustees shall make an order redividing [such] the district into three divisions
             707      as nearly equal in size as [may be] practicable[, which]. The divisions shall be numbered first,


             708      second, and third, and one [director] trustee shall [thereafter] be elected from each division.
             709          Section 17. Section 17A-2-741 is amended to read:
             710           17A-2-741. Notice of petition -- Objections.
             711          The secretary of the board of trustees shall cause a notice of the filing of such petition to
             712      be published as in [Section 17A-2-702 ] Subsection 17A-2-751 (2) provided; or if no newspaper be
             713      published as therein provided, then by posting such notice for the same time in at least three public
             714      places in the district, and in case of the posting of those notices, one of the notices shall be so
             715      posted on the lands proposed to be excluded. The notice shall state the filing of such petition, the
             716      names of the petitioners, description of the lands mentioned in the petition, and the prayer of the
             717      petitioners; and it shall notify all persons interested to appear at the office of the board at a time
             718      named in the notice, and show cause in writing, if any they have, why the petition should not be
             719      granted. The time to be specified in the notice at which they shall be required to show cause shall
             720      be the regular meeting of the board next after the expiration of the time for the publication of the
             721      notice. The petitioner or petitioners shall advance to the secretary sufficient money to pay the
             722      estimated cost of all proceedings under such petition before the secretary shall give such notice.
             723          Section 18. Section 17A-2-749 is amended to read:
             724           17A-2-749. Special proceedings for judicial examination.
             725          The board of trustees of an irrigation district [organized under the provisions of this part]
             726      may commence special proceedings, in and by which all proceedings had in the organization of
             727      the district or in and by which its acts and the acts of the district in authorizing the issue and sale
             728      of the bonds of the district or providing for the authorization of contract with the United States and
             729      the validity of such contract, whether the bonds or any of them have or have not been sold or
             730      disposed of, or such contract or proposed contract shall or shall not have been actually signed by
             731      the United States or the district, may be judicially examined, approved and confirmed.
             732          Section 19. Section 17A-2-751 is amended to read:
             733           17A-2-751. Notice -- Contest -- Time for hearing.
             734          (1) The court shall fix the time for the hearing of the petition and shall order the clerk of
             735      the court to give and publish notice of the filing of the petition. [The notice shall be given and
             736      published as in Section 17A-2-702 .]
             737          (2) (a) The notice required under this section shall be published once a week for three
             738      consecutive weeks in a newspaper of general circulation in the county or, if the district is located


             739      in more than one county, in the counties in which the district is located, with the last publication
             740      being at least one week before the date set for the hearing.
             741          (b) The notice shall state the time and place fixed for the hearing of the petition and the
             742      prayer of the petitioners, and that any person interested in the organization of the district, or in the
             743      proceedings for the issue or sale of the bonds, or in the making of contract with the United States,
             744      may, on or before the day fixed for the hearing of the petition, [demur to or] answer the petition.
             745          (c) The petition may be referred to and described in the notice as the petition of the board
             746      of trustees of _______ irrigation district (giving its name) praying that the proceedings for the issue
             747      and sale of the bonds of the district, or that the proceedings for the contract with the United States,
             748      or the proceedings had for the organization of the district and the validity thereof, be examined,
             749      approved and confirmed by the court.
             750          Section 20. Section 17A-2-752 is amended to read:
             751           17A-2-752. Parties -- Appearances -- Practice and procedure.
             752          Any person interested in the district, or in the issue or sale of the bonds, or in the making
             753      of contract with the United States, may [demur to or] answer the petition. The provisions of the
             754      Code of Civil Procedure respecting the [demurrer and] answer to a verified complaint shall be
             755      applicable to [a demurrer and] an answer to the petition. The person so [demurring or] answering
             756      the petition shall be the defendant to the special proceedings, and the board of trustees shall be the
             757      plaintiff. Every material statement of the petition not specifically controverted by the answer shall,
             758      for the purpose of the special proceedings, be taken as true, and each person failing to answer the
             759      petition shall be considered to admit as true all the material statements of the petition. The rules
             760      of pleading and practice relating to appeals and writs of error provided by the Rules of Civil
             761      Procedure which are not inconsistent with the provisions of this part are applicable to the special
             762      proceedings herein provided for.
             763          Section 21. Section 17A-2-754 is amended to read:
             764           17A-2-754. Transfer of water rights -- Notice to landowners.
             765          The board of trustees of any irrigation district, with the consent of the bondholders and
             766      other creditors, may sell, transfer, and convey the water rights and all or any other property
             767      belonging to the district to any irrigation company; provided, however, that no such sale, transfer,
             768      or conveyance shall be made until notice of the intention of the board to make the same shall have
             769      been published, as in [Section 17A-2-702 ] Subsection 17A-2-751 (2), and mailed to each


             770      landowner in the district at his last known address at least 30 days prior to the expiration of the
             771      time fixed for protest, and provided further that no such sale, transfer, or conveyance shall be made
             772      if within 30 days from the last publication of such notice the owners of 1/3 of the acre-feet of water
             773      allotted in the district file with the board their written protest against such sale, transfer, or
             774      conveyance.
             775          Section 22. Section 17A-2-758 is amended to read:
             776           17A-2-758. Local improvement districts.
             777          In the event the board shall find the proposed local improvement feasible, it shall approve
             778      the petition, fix a time and place for the hearing thereof, and shall publish notice thereof, as in
             779      [Section 17A-2-702 ] Subsection 17A-2-751 (2), stating that the certain lands, describing them, are
             780      proposed to be organized as a local improvement district and stating generally the nature of the
             781      proposed improvements; that warrants for such local improvement are proposed to be issued as
             782      the warrants of the irrigation district; and that the lands within the local improvement district are
             783      to be assessed for such improvement. At the time and place of hearing named in the notice all
             784      persons interested may appear before the board and show cause for or against the formation of the
             785      proposed improvement district and the issuance of warrants as aforesaid. Upon the hearing the
             786      board shall determine whether or not the proposed local improvement district shall be established.
             787      Any landowner whose lands can be served or will be benefitted by the proposed improvement may
             788      make application to the board at the time of hearing to include such lands, and the board of trustees
             789      in such case may, at their discretion, include such lands within such district. The board of trustees
             790      may exclude any land specified in the notice from the district, provided that in the judgment of the
             791      board the inclusion thereof will not be practicable.
             792          Section 23. Section 17A-2-759 is amended to read:
             793           17A-2-759. Establishment -- Limit as to costs -- Authorization -- Construction
             794      warrants -- Orders.
             795          If the board determines in favor of the improvement it shall enter an order establishing the
             796      improvement district and shall list and plat lands included therein, and shall adopt plans for the
             797      proposed improvement, estimate the cost, and determine the number of equal annual installments,
             798      in which the cost of the improvement shall be paid; provided, however, that no local improvement,
             799      the cost of which will exceed $10,000 and be less than $25,000, may be undertaken unless such
             800      improvement is first authorized and ratified, in writing, by a majority of the landowners within the


             801      local improvement district; nor may any improvement the cost of which will exceed $25,000 be
             802      undertaken unless first authorized and ratified, in writing, by a two-thirds majority of the
             803      landowners within the local improvement district, and not then if protests, in writing, signed by
             804      landowners of the irrigation district having a majority of the votes according to the number of
             805      votes cast at the last election, be submitted within 30 days after completion of publication of notice
             806      of the proposed improvement, published as in [Section 17A-2-702 ] Subsection 17A-2-751 (2). The
             807      cost of such improvement shall be paid by the issuance of the warrants of the district, from time
             808      to time, therefor, either directly for the payment of the labor and material or for the securing of the
             809      funds for such purposes. The warrants shall bear interest at a rate of not to exceed 7% per annum,
             810      payable semiannually, and shall state upon their face that they are issued as warrants of the
             811      irrigation district for the benefit of the local improvement district within the irrigation district, that
             812      all lands within the local improvement district shall be primarily liable to assessment for the
             813      principal and interest of the warrants, and that such warrants are also a general obligation of the
             814      district. No warrant may be issued in denomination exceeding $500 and no warrant shall be sold
             815      for less than par. A copy of the order establishing any local improvement district, together with
             816      list and plat of lands included, certified by the chair and secretary, shall be filed in the office of the
             817      clerk of the county in which the lands are located and recorded in [accordance with the provisions
             818      of Section 17A-2-705 relating to the filing and recording of the order declaring the organization
             819      of the irrigation district] the office of the recorder of the same county.
             820          Section 24. Section 17A-2-801 is amended to read:
             821           17A-2-801. Title.
             822          This act shall be known as the "Metropolitan Water District Act." [and shall apply to the
             823      incorporation, organization, government, maintenance and operation of the water districts herein
             824      provided for and described, and to the board of trustees herein referred to.]
             825          Section 25. Section 17A-2-803 is amended to read:
             826           17A-2-803. Purpose of metropolitan water district.
             827          [(1) Metropolitan] A metropolitan water [districts] district may [be organized hereunder
             828      for the purpose of acquiring, appropriating, developing, storing, selling, leasing and distributing]
             829      acquire, appropriate, develop, store, sell, lease, and distribute water for, and [devoting] devote
             830      water to, municipal and domestic purposes, irrigation, power, milling, manufacturing, mining,
             831      metallurgical and any and all other beneficial uses[, and such district may be formed of the territory


             832      included within the corporate boundaries of any one or more municipalities, which need not be
             833      contiguous, and may be organized and incorporated and thereafter governed, maintained and
             834      operated as herein provided, and when so incorporated shall have and exercise such powers as are
             835      herein expressly granted, together with such powers as are reasonably implied herefrom and
             836      necessary and proper to carry out the objects and purposes of such incorporated districts. Each
             837      such district when so incorporated shall be a separate and independent political corporate entity].
             838          [(2) All provisions of this part that establish, govern, or state the requirements and
             839      procedure for the creation of a metropolitan water district:]
             840          [(a) are superseded by the provisions of Title 17B, Chapter 2, Part 2, Creation of Local
             841      Districts, with respect to the creation of a metropolitan water district; and]
             842          [(b) remain valid to the extent they establish, govern, or state the requirements or
             843      procedure for annexation to an existing metropolitan water district.]
             844          Section 26. Section 17A-2-842 is amended to read:
             845           17A-2-842. Withdrawal from district.
             846          [Any] (1) A municipality whose corporate area has become or is a part of [any] a
             847      metropolitan water district may withdraw [therefrom in the following manner:] from the district
             848      as provided in this section.
             849          (2) The [governing] legislative body of any such municipality may submit to the [electors
             850      thereof] voters of the municipality at any general or special election the proposition of withdrawing
             851      from [any] a metropolitan water district [incorporated thereunder]. [Notice of such election shall
             852      be given in the manner provided in Subsection 17A-2-841 (3)(e). Such]
             853          (3) The municipal legislative body shall give notice of the election by:
             854          (a) posting the notice at least ten days and in three public places in the municipality; or
             855          (b) publishing the notice once in a newspaper of general circulation in the municipality at
             856      least ten days before the date fixed for the election.
             857          (4) (a) Each election under this section shall be conducted and the returns [thereof]
             858      canvassed in the manner provided by law for the conduct of municipal elections in the [city]
             859      municipality. [In the event that the]
             860          (b) If a majority of the electors voting [thereon] on the withdrawal question vote in favor
             861      of [such] withdrawal, the result [thereof] shall be certified by the [governing] legislative body of
             862      [such] the municipality to the board of trustees of the district. [A certificate of the proceedings


             863      hereunder shall be made by the]
             864          (5) (a) The secretary of the district shall prepare and [filed] file with the lieutenant
             865      governor[, and upon] a certificate of the withdrawal proceedings.
             866          (b) Upon the filing of [such] a certificate under Subsection (5)(a), the area of the
             867      municipality [so] withdrawing shall be excluded from the metropolitan water district[,] and shall
             868      no longer be a part [thereof; provided, however, that the property] of the district.
             869          (6) Property within the municipality [as it exists] that is within the withdrawn area at the
             870      time of [such] the exclusion shall continue taxable for the purpose of paying the bonded and other
             871      indebtedness outstanding or contracted for, at the time of such exclusion and until such bonded
             872      or other indebtedness has been satisfied.
             873          Section 27. Section 17A-2-1048 is amended to read:
             874           17A-2-1048. Board of trustees representation for newly annexed area.
             875          [Additional municipalities and county areas may be included within or become part of a
             876      district by either of the following methods:]
             877          [(1) If any area is annexed to or consolidated with any municipality which is a part of a
             878      district organized under these provisions, the annexed or consolidated area shall by virtue of its
             879      annexation or consolidation become part of the district and be taxable in accordance with the
             880      provisions of this part to pay the indebtedness of the district outstanding at the time of annexation
             881      or consolidation.]
             882          [(2) The governing body of any municipality or of any county may apply to and obtain
             883      from the comptroller of the district a financial statement showing the financial condition of the
             884      district, its assets and liabilities, taxable value of taxable property according to the last assessment,
             885      and the names of the municipalities and a description of other areas included in the district. After
             886      consideration of the statement, the governing body of the municipality or county may apply to the
             887      board of trustees of the district for consent to annex the municipality or described county area. The
             888      board of trustees after reasonable notice and public hearing may grant or deny the application and
             889      in granting it may fix the terms and conditions upon which the area may be annexed. The action
             890      of the board of trustees evidenced by order made on motion shall be promptly transmitted to the
             891      governing body or bodies of the entities applying for annexation, which shall promptly submit the
             892      proposition of annexation to the qualified electors of the area. Notice of election shall be given
             893      by posting or publication. When notice is given by posting, notice shall be posted for at least ten


             894      days in three public places in each area to be annexed. When notice is given by publication, notice
             895      shall be published at least once ten days before the date fixed for election in a newspaper of general
             896      circulation in the municipality and county area. Publication may be made in one newspaper having
             897      general circulation in each of the areas sought to be annexed. Notice shall contain the substance
             898      of the terms and conditions fixed by the board of trustees. Elections shall be conducted and returns
             899      canvassed by the governing bodies of the areas seeking annexation. If the annexation proposition
             900      receives the affirmative vote of a majority of the electors, the governing body of the municipality
             901      or county shall certify the election results to the board of trustees of the district and a certificate
             902      of proceedings shall be made by the secretary of the district and filed with the lieutenant governor.
             903      Upon filing the certificate in the office of the lieutenant governor, the municipality or county area
             904      shall become an integral part of the district and the taxable property in the municipality or area
             905      subject to taxation for the purposes of the district, including the payment of bonds and other
             906      obligations of the district at the time authorized or outstanding.]
             907          [(3) No action to contest the validity of annexation proceedings may be commenced more
             908      than three months after the certificate of proceedings is filed with the lieutenant governor.]
             909          [(4)] Upon the completion of an annexation under Title 17B, Chapter 2, Part 5,
             910      Annexation, the annexed area shall have a representative on the board of trustees on the same basis
             911      as it would have had if it had been included in the district as originally organized.
             912          Section 28. Section 17A-2-1049 is amended to read:
             913           17A-2-1049. Withdrawal from district.
             914          (1) Any municipality or unincorporated county area may withdraw from the district as
             915      provided in [the following manner:] this section.
             916          (2) (a) The [governing] legislative body of [such] a municipality seeking withdrawal, or,
             917      for an unincorporated area seeking withdrawal, the county, may submit to the electors at a special
             918      election a proposition for withdrawal from the district.
             919          (b) Notice of election shall be given [in the manner provided in Section 17A-2-1048 .] by:
             920          (i) posting notice for at least ten days in three public places in each area to be withdrawn;
             921      or
             922          (ii) publishing notice in a newspaper of general circulation in each municipality and
             923      unincorporated county area seeking withdrawal at least once ten days before the date of the
             924      election.


             925          (3) Elections shall be conducted and returns canvassed in the manner provided by law for
             926      the conduct of municipal elections.
             927          (4) (a) If a majority of the electors voting [thereon] on the withdrawal question vote in
             928      favor of withdrawal, the result [thereof] shall be certified by the [governing] legislative body of
             929      the municipality or, for an unincorporated area, the county, to the board of trustees of the district
             930      and filed with the lieutenant governor.
             931          (b) Withdrawal shall become effective upon filing the certificate with the lieutenant
             932      governor.
             933          (5) Taxable property within the withdrawn area at the time of exclusion shall continue
             934      taxable for purposes of paying any bonded indebtedness or judgments against the district incurred
             935      prior to the date of withdrawal.
             936          Section 29. Section 17A-2-1420 is amended to read:
             937           17A-2-1420. Organization of subdistricts -- Authority -- Bonds -- Board of trustees
             938      -- Powers -- Validation of proceedings -- Separability clause.
             939          (1) Subdistricts may be organized upon the petition of owners of real property, within or
             940      partly within and partly without the district, which petition shall be in substantially the same form
             941      and shall fulfill the same requirements concerning the subdistricts as the petition outlined in
             942      [Section 17A-2-1404 ] Subsection 17B-2-203 (1) is required to fulfill concerning the organization
             943      of the main district. The petition shall also contain a statement of the initial quantity of water
             944      which the subdistrict proposes to acquire from the district for perpetual use[, and the court shall,
             945      prior to the entry of its decree organizing a subdistrict, require that the]. The petitioners shall
             946      attach to the petition written evidence of the consent of the board of trustees of the district to
             947      furnish each subdistrict the perpetual use of water for the purpose specified. [Petitions for the
             948      organization of subdistricts shall be filed with the clerk of the court and shall be accompanied by
             949      a bond as provided for in Section 17A-2-1405 .] The procedure for the organization of subdistricts
             950      shall be the same as for the organization of districts[, except that the provisions of Section
             951      17A-2-1404 respecting the minimum taxable value of land and improvements within districts does
             952      not apply to subdistricts]. A subdistrict shall be a separate entity within the district, may contract
             953      with the district for the furnishing of water and for other purposes, and in addition to any other
             954      authority granted under this part, may issue its bonds pursuant to and in conformity with the
             955      provisions of this part for the following purposes: (a) acquiring or constructing all or part of an


             956      irrigation water system to be operated by the subdistrict for the purpose of providing irrigation
             957      water for agricultural and residential land within the boundaries of the subdistrict, including as a
             958      part of the subdistrict, the purchase or acquisition of stock in canal companies, water companies,
             959      and water users' associations and the acquisition or purchase of water rights and sources of water
             960      supply; and (b) constructing water pipelines and storage works, purchase of water and water rights,
             961      operation of waterworks systems for the purpose of providing municipal water within the
             962      boundaries of the subdistrict and for this purpose the subdistrict board has the same powers, rights,
             963      and privileges granted to a district board referred to in Sections 17A-2-1413 , 17A-2-1421 ,
             964      17A-2-1422 , and 17A-2-1424 , to carry out its separate purposes under the provisions of this part.
             965      The subdistrict board may contract with the district for the furnishing of water for the purposes as
             966      stated in the initial petition as well as other purposes. Within 30 days after entering the decree
             967      incorporating a subdistrict, the county legislative body of the county shall appoint a board of
             968      trustees of the subdistrict not exceeding seven persons who are owners of real property in the
             969      subdistrict and who are not trustees of the district. Vacancies in subdistricts shall be filled by the
             970      county legislative body of the county. The board of trustees of a subdistrict has all of the powers,
             971      rights, and privileges granted to a district board, including specifically, but not limited to, the right
             972      of the subdistrict board to levy and collect taxes and assessments referred to in Sections
             973      17A-2-1423 through 17A-2-1430 , to carry out its separate purposes, including the payment of
             974      principal and interest on bonds payable in whole or in part from the proceeds of assessments and
             975      taxes levied under this part issued by the subdistrict under this part. These taxes and assessments
             976      may be levied and collected by a subdistrict, notwithstanding the fact that taxes and assessments
             977      are being levied and collected by the district in which the subdistrict may lie, to carry out the
             978      district purposes; but the taxes levied and collected pursuant to Section 17A-2-1423 may not
             979      exceed .0002 per dollar of taxable value of taxable property within the subdistrict to pay the
             980      expenses of its organization and administration and may not exceed .0002 per dollar of taxable
             981      value of taxable property for all purposes.
             982          (2) Each subdistrict created under this section may exercise all powers granted to
             983      subdistricts under this part, it being expressly found and determined that all taxable property lying
             984      in each subdistrict will be benefitted by the acquisition or construction of the improvements
             985      acquired or constructed by the district to an amount not less than the aggregate of the taxes and
             986      assessments levied against the property to pay for the cost of acquisition or construction. Wherever


             987      proceedings are adopted under authority of this part purporting to create any subdistrict, all
             988      proceedings in connection with the creation of each subdistrict are validated, ratified, and
             989      confirmed, notwithstanding any failure to comply with any one or more pertinent statutory
             990      provisions; and each subdistrict is declared to be a validly created and existing subdistrict under
             991      authority of law.
             992          (3) If any provision of this part, or the application of any provision to any person or
             993      circumstance, is held invalid, the remainder of this part is not affected.
             994          Section 30. Section 17A-2-1821 is amended to read:
             995           17A-2-1821. Annexation areas to be included in election districts.
             996          [(1) The board of trustees shall annex the area by enacting a resolution that:]
             997          [(a) declares the area to be annexed;]
             998          [(b) determines and establishes the boundaries of the area that is annexed, which may not
             999      exceed the territory that had been proposed to be annexed; and]
             1000          [(c) sets forth in detail whether the services are to be paid for by a property tax, service
             1001      charge, or a combination of both.]
             1002          [(2) If an election has been held as provided in Section 17A-2-1820 , and a majority of the
             1003      qualified electors voting on the proposed annexation vote in favor of the annexation, the board of
             1004      trustees shall adopt the resolution required under Subsection (1).]
             1005          [(3) The resolution may contain any changes that the board of trustees considers necessary,
             1006      including the reduction of the boundaries of the annexation area.]
             1007          [(4) (a) The board of trustees shall file a certified copy of the annexation resolution with:]
             1008          [(i) the recorder of the county where the regional service area is located; and]
             1009          [(ii) the State Tax Commission, along with evidence that the information has been
             1010      recorded by the county recorder.]
             1011          [(b) Upon the filing with the county recorder, the annexation shall be complete and the
             1012      area described in the annexation resolution shall be part of the regional service area.]
             1013          [(5) (a) Any aggrieved property owner or person qualified to vote, who has filed a signed
             1014      written protest within 90 days after the end of the hearing, may appeal the decision of the board
             1015      of trustees to annex the area to the district court.]
             1016          [(b) In the appeal, the district court shall affirm the annexation unless the protesting
             1017      property owner or qualified elector can establish by clear and convincing evidence:]


             1018          [(i) that the board of trustees failed substantially to follow the procedural requirements for
             1019      annexation under this part; or ]
             1020          [(ii) that written protests were timely filed as required by Section 17A-2-1819 .]
             1021          [(c) If an appeal is not filed within 30 days after the effective date of the resolution
             1022      annexing the area, the annexation shall be final and conclusive.]
             1023          [(6) (a) If the annexation is based upon a referendum election as provided in Section
             1024      17A-2-1820 , any person qualified to vote who voted against the annexation in the referendum
             1025      election may appeal the annexation to the district court.]
             1026          [(b) In the appeal, the district court shall affirm the annexation unless the registered voter
             1027      challenging the annexation can establish by clear and convincing evidence:]
             1028          [(i) that there was an irregularity in the election that affected the outcome of the vote; or]
             1029          [(ii) that a majority of the qualified persons casting ballots in the referendum election
             1030      voted against annexation.]
             1031          [(c) If an appeal is not filed within 30 days after the effective date of the resolution
             1032      annexing the area pursuant to a referendum election, the annexation shall be final and conclusive.]
             1033          [(7) (a) Upon a signed petition by the property owner or person qualified to vote made
             1034      within the time for filing protests as provided in Section 17A-2-1819 , the board of trustees shall
             1035      exclude land from the area to be annexed if:]
             1036          [(i) the land is contiguous to other land not included in the regional service area; and]
             1037          [(ii) the board of trustees finds that the land, the real property owner, or the residents of
             1038      the land will not benefit from any of the services provided or proposed to be provided by the
             1039      regional service area.]
             1040          [(b) The land may be included within the boundaries of the regional service area at the
             1041      request of the owner.]
             1042          [(8)] If the regional service area has been divided into election districts, all [annexed] areas
             1043      annexed to the regional service area under Title 17B, Chapter 2, Part 5, Annexation, shall be
             1044      included in a trustee election district.
             1045          [(9) Voter registration records of the county shall be conclusive evidence of residency in
             1046      the annexation area.]
             1047          Section 31. Section 17A-3-244 , which is renumbered from Section 17A-2-326 is
             1048      renumbered and amended to read:


             1049           [17A-2-326].     17A-3-244. Dissolution of districts -- Payment of claims.
             1050          Any special improvement district created under [the authority of Chapter 2, Part 3 or
             1051      Chapter 3, Part 2,] this part may be dissolved by order of the district court of the county in which
             1052      it was created, upon a hearing had upon a petition to the court signed by the governing body of the
             1053      district. Said petition shall recite the reasons for the dissolution, that a resolution has been adopted
             1054      to dissolve the district, that all claims and demands against the district have been paid or that
             1055      provision has been made for the payment thereof.
             1056          The court shall fix a day for the hearing thereon, not less than 30 or more than 60 days after
             1057      the petition is filed, and shall order that the clerk publish a notice of the said petition and hearing
             1058      in a newspaper of general circulation once a week for four successive weeks prior to such hearing.
             1059      Such notice shall specify the district to be dissolved, the date, time and place of said hearing, and
             1060      shall provide that all persons who have any objections to the dissolution of said district shall file
             1061      such objections in the office of said clerk of said court at or prior to the date of said hearing, and
             1062      all persons who have any claim against said district must present the same duly itemized and
             1063      verified by the affidavit of the claimant at or prior to the time of said hearing or be forever barred
             1064      from thereafter asserting said claims, and said notice shall be signed by the clerk of said court. No
             1065      district shall be ordered dissolved until said claims shall have been paid or until provision has been
             1066      made for the payment thereof, either by the levying and collecting of assessments or by other
             1067      means approved by the court.
             1068          Section 32. Section 17B-2-101 is amended to read:
             1069           17B-2-101. Definitions.
             1070          As used in this chapter[, "local]
             1071          (1) "Local district" means a local government entity, created according to the provisions
             1072      of Part 2, Creation of Local Districts, that is not a general purpose government entity but is a
             1073      separate legal and corporate entity and a political subdivision of the state, authorized to provide
             1074      limited services in a defined geographic area, as provided in Part 2, Creation of Local Districts.
             1075          (2) "Municipal" means of or relating to a municipality.
             1076          (3) "Municipality" means a city or town.
             1077          (4) "Political subdivision" means a county, city, town, local district under this chapter,
             1078      independent special district under Title 17A, Chapter 2, Independent Special Districts, an entity
             1079      created by interlocal cooperation agreement under Title 11, Chapter 13, Interlocal Cooperation Act,


             1080      or any other governmental entity designated in statute as a political subdivision of the state.
             1081          (5) "Private," with respect to real property, means not owned by the United States or any
             1082      agency of the federal government, the state, a county, a municipality, a school district, an
             1083      independent special district under Title 17A, Chapter 2, Independent Special Districts, a local
             1084      district, or any other political subdivision of the state.
             1085          (6) "Unincorporated" means not included within a municipality.
             1086          Section 33. Section 17B-2-102 is enacted to read:
             1087          17B-2-102. Property owner provisions.
             1088          (1) For purposes of this chapter:
             1089          (a) the owner of real property shall be the fee title owner according to the records of the
             1090      county recorder on the date of the filing of the request or petition; and
             1091          (b) the value of private real property shall be determined according to the last assessment
             1092      before the filing of the request or petition, as determined by:
             1093          (i) the county under Title 59, Chapter 2, Part 3, County Assessment, for property subject
             1094      to assessment by the county;
             1095          (ii) the State Tax Commission under Title 59, Chapter 2, Part 2, Assessment of Property,
             1096      for property subject to assessment by the State Tax Commission; or
             1097          (iii) the county, for all other property.
             1098          (2) For purposes of each provision of this chapter that requires the owners of private real
             1099      property covering a percentage of the total private land area within the proposed local district to
             1100      sign a request, petition, or protest:
             1101          (a) a parcel of real property may not be included in the calculation of the required
             1102      percentage unless the request or petition is signed by:
             1103          (i) except as provided in Subsection (2)(a)(ii), owners representing a majority ownership
             1104      interest in that parcel; or
             1105          (ii) if the parcel is owned by joint tenants or tenants by the entirety, 50% of the number
             1106      of owners of that parcel;
             1107          (b) the signature of a person signing a request or petition in a representative capacity on
             1108      behalf of an owner is invalid unless:
             1109          (i) the person's representative capacity and the name of the owner the person represents
             1110      are indicated on the request or petition with the person's signature; and


             1111          (ii) the person provides documentation accompanying the request or petition that
             1112      reasonably substantiates the person's representative capacity; and
             1113          (c) subject to Subsection (2)(b), a duly appointed personal representative may sign a
             1114      request or petition on behalf of a deceased owner.
             1115          Section 34. Section 17B-2-201 is amended to read:
             1116           17B-2-201. Definitions.
             1117          [(1)] As used in this part:
             1118          [(a)] (1) "Applicable area" means:
             1119          [(i)] (a) for a county, the unincorporated area of the county that is included within the
             1120      proposed local district; or
             1121          [(ii)] (b) for a municipality, the area of the municipality that is included within the
             1122      proposed local district.
             1123          [(b) "Municipal" means of or relating to a municipality.]
             1124          [(c) "Municipality" means a city or town.]
             1125          [(d)] (2) "Petition" means a petition under Subsection 17B-2-203 (1)(a) or (b).
             1126          [(e) "Political subdivision" means a county, city, town, local district under this chapter,
             1127      independent special district under Title 17A, Chapter 2, Independent Special Districts, or an entity
             1128      created by interlocal cooperation agreement under Title 11, Chapter 13, Interlocal Cooperation
             1129      Act.]
             1130          [(f) "Private," with respect to real property, means not owned by the United States or any
             1131      agency of the federal government, the state, a county, a municipality, a school district, an
             1132      independent special district under Title 17A, Chapter 2, Independent Special Districts, a local
             1133      district, or any other political subdivision of the state.]
             1134          [(g)] (3) "Property owner petition" means a petition under Subsection 17B-2-203 (1)(a).
             1135          [(h)] (4) "Property owner request" means a request under Section 17B-2-204 that is signed
             1136      by owners of real property as provided in Subsection 17B-2-204 (2)(b)(i).
             1137          [(i)] (5) "Registered [owner] voter request" means a request under Section 17B-2-204 that
             1138      is signed by registered voters as provided in Subsection 17B-2-204 (2)(b)(ii).
             1139          [(j)] (6) "Registered voter petition" means a petition under Subsection 17B-2-203 (1)(b).
             1140          [(k)] (7) "Request" means a request as described in Section 17B-2-204 .
             1141          [(l)] (8) "Responsible body" means the legislative body of:


             1142          [(i)] (a) the municipality in which the proposed local district is located, if the petition
             1143      proposes the creation of a local district located entirely within a single municipality;
             1144          [(ii)] (b) the county in which the proposed local district is located, if the petition proposes
             1145      the creation of a local district located entirely within a single county and all or part of the proposed
             1146      local district is located within:
             1147          [(A)] (i) the unincorporated part of the county; or
             1148          [(B)] (ii) more than one municipality within the county; or
             1149          [(iii)] (c) if the petition proposes the creation of a local district located within more than
             1150      one county, the county whose boundaries include more of the area of the proposed local district
             1151      than is included within the boundaries of any other county.
             1152          [(m)] (9) "Responsible clerk" means the clerk of the county or the clerk or recorder of the
             1153      municipality whose legislative body is the responsible body.
             1154          [(n) "Unincorporated" means not included within a municipality.]
             1155          [(2) For purposes of this part:]
             1156          [(a) the owner of real property shall be the record title owner according to the records of
             1157      the county recorder on the date of the filing of the request or petition; and]
             1158          [(b) the value of private real property shall be determined according to the last assessment
             1159      before the filing of the request or petition, as determined by:]
             1160          [(i) the county under Title 59, Chapter 2, Part 3, County Assessment, for property subject
             1161      to assessment by the county;]
             1162          [(ii) the State Tax Commission under Title 59, Chapter 2, Part 2, Assessment of Property,
             1163      for property subject to assessment by the State Tax Commission; or]
             1164          [(iii) the county, for all other property.]
             1165          [(3) For purposes of each provision of this part that requires the owners of private real
             1166      property covering a percentage of the total private land area within the proposed local district to
             1167      sign a request, petition, or protest:]
             1168          [(a) a parcel of real property may not be included in the calculation of the required
             1169      percentage unless the request or petition is signed by:]
             1170          [(i) except as provided in Subsection (3)(a)(ii), owners representing a majority ownership
             1171      interest in that parcel; or]
             1172          [(ii) if the parcel is owned by joint tenants or tenants by the entirety, 50% of the number


             1173      of owners of that parcel;]
             1174          [(b) the signature of a person signing a request or petition in a representative capacity on
             1175      behalf of an owner is invalid unless:]
             1176          [(i) the person's representative capacity and the name of the owner the person represents
             1177      are indicated on the request or petition with the person's signature; and]
             1178          [(ii) the person provides documentation accompanying the request or petition that
             1179      reasonably substantiates the person's representative capacity; and]
             1180          [(c) subject to Subsection (3)(b), a duly appointed personal representative may sign a
             1181      request or petition on behalf of a deceased owner.]
             1182          Section 35. Section 17B-2-217 is amended to read:
             1183           17B-2-217. Limitation on initiating process to create local district.
             1184          (1) Notwithstanding any other provision of this part, the process to create a local district
             1185      under this part may not be initiated before [June 1, 2001] May 6, 2002.
             1186          (2) Subsection (1) does not prohibit the creation of one of the types of independent special
             1187      districts listed in Subsection 17A-2-101 (1) under the provisions of this part.
             1188          Section 36. Section 17B-2-501 is enacted to read:
             1189     
Part 5. Annexation

             1190          17B-2-501. Definitions.
             1191          For purposes of this part:
             1192          (1) "Applicable area" means:
             1193          (a) for a county, the unincorporated area of the county that is included within the area
             1194      proposed for annexation; or
             1195          (b) for a municipality, the area of the municipality that is included within the area proposed
             1196      for annexation.
             1197          (2) "Retail" means, with respect to a service provided by a municipality, local district, or
             1198      independent special district, that the service is provided directly to the ultimate user.
             1199          (3) "Wholesale" means, with respect to a service provided by a local district or
             1200      independent special district, that the service is not provided directly to the ultimate user but is
             1201      provided to a retail provider.
             1202          Section 37. Section 17B-2-502 is enacted to read:
             1203          17B-2-502. Annexation of area outside local district -- Multiple areas -- No


             1204      requirement to be contiguous.
             1205          (1) An area outside the boundaries of a local district may be annexed to the local district,
             1206      as provided in this part, in order to provide to the area a service that the local district provides.
             1207          (2) The area proposed to be annexed:
             1208          (a) may consist of one or more noncontiguous areas; and
             1209          (b) need not be adjacent to the boundaries of the proposed annexing local district.
             1210          Section 38. Section 17B-2-503 is enacted to read:
             1211          17B-2-503. Initiation of annexation process -- Petition and resolution.
             1212          (1) Except as provided in Sections 17B-2-515 and 17B-2-516 , the process to annex an area
             1213      to a local district may be initiated by:
             1214          (a) (i) for a district whose board of trustees is elected by electors based on the acre-feet of
             1215      water allotted to the land owned by the elector and subject to Subsection (2), a petition signed by
             1216      the owners of all of the acre-feet of water allotted to the land proposed for annexation; or
             1217          (ii) for all other districts:
             1218          (A) a petition signed by the owners of private real property that:
             1219          (I) is located within the area proposed to be annexed;
             1220          (II) covers at least 10% of the total private land area within the entire area proposed to be
             1221      annexed and within each applicable area; and
             1222          (III) is equal in assessed value to at least 10% of the assessed value of all private real
             1223      property within the entire area proposed to be annexed and within each applicable area; or
             1224          (B) a petition signed by registered voters residing within the entire area proposed to be
             1225      annexed and within each applicable area equal in number to at least 10% of the number of votes
             1226      cast within the entire area proposed to be annexed and within each applicable area, respectively,
             1227      for the office of governor at the last regular general election before the filing of the petition;
             1228          (b) a resolution adopted by the legislative body of each county whose unincorporated area
             1229      includes and each municipality whose boundaries include any of the area proposed to be annexed;
             1230      or
             1231          (c) a resolution adopted by the board of trustees of the proposed annexing local district if,
             1232      for at least 12 consecutive months immediately preceding adoption of the resolution, the local
             1233      district has provided:
             1234          (i) retail service to the area; or


             1235          (ii) a wholesale service to a provider of the same service that has provided that service on
             1236      a retail basis to the area.
             1237          (2) If an association representing all acre-feet of water allotted to the land that is proposed
             1238      to be annexed to a local district signs a petition under Subsection (1)(a)(i), pursuant to a proper
             1239      exercise of authority as provided in the bylaws or other rules governing the association, the petition
             1240      shall be considered to have been signed by the owners of all of the acre-feet of water allotted to
             1241      the land proposed for annexation, even though less than all of the owners within the association
             1242      consented to the association signing the petition.
             1243          (3) Each petition and resolution under Subsection (1) shall:
             1244          (a) describe the area proposed to be annexed; and
             1245          (b) be accompanied by a map of the boundaries of the area proposed to be annexed.
             1246          (4) The legislative body of each county and municipality that adopts a resolution under
             1247      Subsection (1)(b) shall, within five days after adopting the resolution, mail or deliver a copy of the
             1248      resolution to the board of trustees of the proposed annexing local district.
             1249          Section 39. Section 17B-2-504 is enacted to read:
             1250          17B-2-504. Petition requirements.
             1251          (1) Each petition under Subsection 17B-2-503 (1)(a) shall:
             1252          (a) indicate the typed or printed name and current residence address of each person signing
             1253      the petition;
             1254          (b) separately group signatures by county and municipality, so that all signatures of the
             1255      owners of real property located within or of registered voters residing within each county whose
             1256      unincorporated area includes and each municipality whose boundaries include part of the area
             1257      proposed for annexation are grouped separately;
             1258          (c) if it is a petition under Subsection 17B-2-503 (1)(a)(i) or (ii)(A), indicate the address
             1259      of the property as to which the owner is signing the petition;
             1260          (d) designate up to three signers of the petition as sponsors, one of whom shall be
             1261      designated the contact sponsor, with the mailing address and telephone number of each;
             1262          (e) be filed with the board of trustees of the proposed annexing local district; and
             1263          (f) for a petition under Subsection 17B-2-503 (a)(i), state the proposed method of supplying
             1264      water to the area proposed to be annexed.
             1265          (2) By submitting a written withdrawal or reinstatement with the board of trustees of the


             1266      proposed annexing local district, a signer of a petition may withdraw, or once withdrawn, reinstate
             1267      the signer's signature at any time:
             1268          (a) before the public hearing under Section 17B-2-509 is held; or
             1269          (b) if a hearing is not held because of Subsection 17B-2-513 (1) or because no hearing is
             1270      requested under Subsection 17B-2-513 (2)(a)(ii)(B), until 20 days after the local district provides
             1271      notice under Subsection 17B-2-513 (2)(a)(i).
             1272          Section 40. Section 17B-2-505 is enacted to read:
             1273          17B-2-505. Petition certification.
             1274          (1) Within 30 days after the filing of a petition under Subsection 17B-2-503 (1)(a)(i) or (ii),
             1275      the board of trustees of the proposed annexing local district shall:
             1276          (a) with the assistance of officers of the county in which the area proposed to be annexed
             1277      is located from whom the board requests assistance, determine whether the petition meets the
             1278      requirements of Subsection 17B-2-503 (1)(a)(i) or (ii), as the case may be, Subsection
             1279      17B-2-503 (3), and Subsection 17B-2-504 (1); and
             1280          (b) (i) if the board determines that the petition complies with the requirements, certify the
             1281      petition and mail or deliver written notification of the certification to the contact sponsor; or
             1282          (ii) if the board determines that the petition fails to comply with any of the requirements,
             1283      reject the petition and mail or deliver written notification of the rejection and the reasons for the
             1284      rejection to the contact sponsor.
             1285          (2) (a) If the board rejects a petition under Subsection (1)(b)(ii), the petition may be
             1286      amended to correct the deficiencies for which it was rejected and then refiled.
             1287          (b) A valid signature on a petition that was rejected under Subsection (1)(b)(ii) may be
             1288      used toward fulfilling the applicable signature requirement of the petition as amended under
             1289      Subsection (2)(a).
             1290          (3) The board shall process an amended petition filed under Subsection (2)(a) in the same
             1291      manner as an original petition under Subsection (1).
             1292          Section 41. Section 17B-2-506 is enacted to read:
             1293          17B-2-506. Notice to county and municipality -- Exception.
             1294          (1) Except as provided in Subsection (2), within ten days after certifying a petition under
             1295      Subsection 17B-2-505 (1)(b) the board of trustees of the proposed annexing local district shall mail
             1296      or deliver a written notice of the proposed annexation, with a copy of the certification and a copy


             1297      of the petition, to the legislative body of each:
             1298          (a) county in whose unincorporated area any part of the area proposed for annexation is
             1299      located; and
             1300          (b) municipality in which any part of the area proposed for annexation is located.
             1301          (2) The board is not required to send a notice under Subsection (1) to:
             1302          (a) a county or municipality that does not provide the service proposed to be provided by
             1303      the local district; or
             1304          (b) a county or municipality whose legislative body has adopted an ordinance or resolution
             1305      waiving the notice requirement as to:
             1306          (i) the proposed annexing local district; or
             1307          (ii) the service that the proposed annexing local district provides.
             1308          (3) For purposes of this section, an area proposed to be annexed to a municipality in a
             1309      petition under Section 10-2-403 filed before and still pending at the time of the filing of a petition
             1310      under Subsection 17B-2-503 (1)(a) shall be considered to be part of that municipality.
             1311          Section 42. Section 17B-2-507 is enacted to read:
             1312          17B-2-507. Notice of intent to consider providing service -- Public hearing
             1313      requirements.
             1314          (1) (a) If the legislative body of a county or municipality whose applicable area is proposed
             1315      to be annexed to a local district in a petition under Subsection 17B-2-503 (1)(a) intends to consider
             1316      having the county or municipality, respectively, provide to the applicable area the service that the
             1317      proposed annexing local district provides, the legislative body shall, within 30 days after receiving
             1318      the notice under Subsection 17B-2-506 (1), mail or deliver a written notice to the board of trustees
             1319      of the proposed annexing local district indicating that intent.
             1320          (b) (i) A notice of intent under Subsection (1)(a) suspends the local district's annexation
             1321      proceeding as to the applicable area of the county or municipality that submits the notice of intent
             1322      until the county or municipality:
             1323          (A) adopts a resolution under Subsection 17B-2-508 (1) declining to provide the service
             1324      proposed to be provided by the proposed annexing local district; or
             1325          (B) is considered under Subsection 17B-2-508 (2) or (3) to have declined to provide the
             1326      service.
             1327          (ii) The suspension of an annexation proceeding under Subsection (1)(b)(i) as to an


             1328      applicable area does not prevent the local district from continuing to pursue the annexation
             1329      proceeding with respect to other applicable areas for which no notice of intent was submitted.
             1330          (c) If a legislative body does not mail or deliver a notice of intent within the time required
             1331      under Subsection (1)(a), the legislative body shall be considered to have declined to provide the
             1332      service.
             1333          (2) Each legislative body that mails or delivers a notice under Subsection (1)(a) shall hold
             1334      a public hearing or a set of public hearings, sufficient in number and location to ensure that no
             1335      substantial group of residents of the area proposed for annexation need travel an unreasonable
             1336      distance to attend a public hearing.
             1337          (3) Each public hearing under Subsection (2) shall be held:
             1338          (a) no later than 45 days after the legislative body sends notice under Subsection (1);
             1339          (b) except as provided in Subsections (6) and (7), within the applicable area; and
             1340          (c) for the purpose of allowing public input on:
             1341          (i) whether the service is needed in the area proposed for annexation;
             1342          (ii) whether the service should be provided by the county or municipality or the proposed
             1343      annexing local district; and
             1344          (iii) all other matters relating to the issue of providing the service or the proposed
             1345      annexation.
             1346          (4) A quorum of the legislative body of each county or municipal legislative body holding
             1347      a public hearing under this section shall be present throughout each hearing held by that county
             1348      or municipal legislative body.
             1349          (5) Each hearing under this section shall be held on a weekday evening other than a
             1350      holiday beginning no earlier than 6:00 p.m.
             1351          (6) Two or more county or municipal legislative bodies may jointly hold a hearing or set
             1352      of hearings required under this section if all the requirements of this section, other than the
             1353      requirements of Subsection (3)(b), are met as to each hearing.
             1354          (7) Notwithstanding Subsection (3)(b), a county or municipal legislative body may hold
             1355      a public hearing or set of public hearings outside the applicable area if:
             1356          (a) there is no reasonable place to hold a public hearing within the applicable area; and
             1357          (b) the public hearing or set of public hearings is held as close to the applicable area as
             1358      reasonably possible.


             1359          (8) Before holding a public hearing or set of public hearings under this section, the
             1360      legislative body of each county or municipality that receives a request for service shall provide
             1361      notice of the hearing or set of hearings as provided in Section 17B-2-211 .
             1362          Section 43. Section 17B-2-508 is enacted to read:
             1363          17B-2-508. Resolution indicating whether the requested service will be provided.
             1364          (1) Within 30 days after the last hearing required under Section 17B-2-507 is held, the
             1365      legislative body of each county and municipality that sent a notice of intent under Subsection
             1366      17B-2-507 (1) shall adopt a resolution indicating whether the county or municipality will provide
             1367      to the area proposed for annexation within its boundaries the service proposed to be provided by
             1368      the proposed annexing local district.
             1369          (2) If the county or municipal legislative body fails to adopt a resolution within the time
             1370      provided under Subsection (1), the county or municipality shall be considered to have declined to
             1371      provide the service.
             1372          (3) If a county or municipal legislative body adopts a resolution under Subsection (1)
             1373      indicating that the county or municipality will provide the service but the county or municipality
             1374      does not, within 120 days after the adoption of that resolution, take substantial measures to provide
             1375      the service, the county or municipality shall be considered to have declined to provide the service.
             1376          (4) Each county or municipality whose legislative body adopts a resolution under
             1377      Subsection (1) indicating that the county or municipality will provide the service shall diligently
             1378      proceed to take all measures necessary to provide the service.
             1379          (5) If a county or municipal legislative body adopts a resolution under Subsection (1)
             1380      indicating that the county or municipality will provide the service and the county or municipality
             1381      takes substantial measures within the time provided in Subsection (3) to provide the service, the
             1382      local district's annexation proceeding as to the applicable area of that county or municipality is
             1383      terminated and that applicable area is considered deleted from the area proposed to be annexed in
             1384      a petition under Subsection 17B-2-503 (1)(a).
             1385          Section 44. Section 17B-2-509 is enacted to read:
             1386          17B-2-509. Public hearing on proposed annexation.
             1387          (1) Except as provided in Sections 17B-2-513 and 17B-2-515 , the board of trustees of each
             1388      local district that certifies a petition that was filed under Subsection 17B-2-503 (1)(a)(ii)(A) or (B),
             1389      receives a resolution adopted under Subsection 17B-2-503 (1)(b), or adopts a resolution under


             1390      Subsection 17B-2-503 (1)(c) shall hold a public hearing on the proposed annexation and provide
             1391      notice of the hearing as provided in Section 17B-2-510 .
             1392          (2) Each public hearing under Subsection (1) shall be held:
             1393          (a) within 45 days after:
             1394          (i) if no notice to a county or municipal legislative body is required under Section
             1395      17B-2-506 , petition certification under Section 17B-2-505 ; or
             1396          (ii) if notice is required under Section 17B-2-506 , but no notice of intent is submitted by
             1397      the deadline:
             1398          (A) expiration of the deadline under Subsection 17B-2-507 (1) to submit a notice of intent;
             1399      or
             1400          (B) termination of a suspension of the annexation proceeding under Subsection
             1401      17B-2-507 (1)(b);
             1402          (b) (i) for a local district located entirely within a single county:
             1403          (A) within or as close as practicable to the area proposed to be annexed; or
             1404          (B) at the local district office; or
             1405          (ii) for a local district located in more than one county:
             1406          (A) (I) within the county in which the area proposed to be annexed is located; and
             1407          (II) within or as close as practicable to the area proposed to be annexed; or
             1408          (B) if the local district office is reasonably accessible to all residents within the area
             1409      proposed to be annexed, at the local district office;
             1410          (c) on a weekday evening other than a holiday beginning no earlier than 6:00 p.m.; and
             1411          (d) for the purpose of allowing:
             1412          (i) the public to ask questions and obtain further information about the proposed
             1413      annexation and issues raised by it; and
             1414          (ii) any interested person to address the board regarding the proposed annexation.
             1415          (3) A quorum of the board of trustees of the proposed annexing local district shall be
             1416      present throughout each public hearing held under this section.
             1417          (4) (a) After holding a public hearing under this section or, if no hearing is held because
             1418      of application of Subsection 17B-2-513 (2)(a)(ii), after expiration of the time under Subsection
             1419      17B-2-513 (2)(a)(ii)(B) for requesting a hearing, the board of trustees may by resolution deny the
             1420      annexation and terminate the annexation procedure if:


             1421          (i) for a proposed annexation initiated by a petition under Subsection 17B-2-503 (1)(a)(i)
             1422      or (ii), the board determines that:
             1423          (A) it is not feasible for the local district to provide service to the area proposed to be
             1424      annexed; or
             1425          (B) annexing the area proposed to be annexed would be inequitable to the owners of real
             1426      property or residents already within the local district; or
             1427          (ii) for a proposed annexation initiated by resolution under Subsection 17B-2-503 (1)(b)
             1428      or (c), the board determines not to pursue annexation.
             1429          (b) In each resolution adopted under Subsection (4)(a), the board shall set forth its reasons
             1430      for denying the annexation.
             1431          Section 45. Section 17B-2-510 is enacted to read:
             1432          17B-2-510. Notice of public hearing.
             1433          (1) Before holding a public hearing required under Section 17B-2-509 , the board of
             1434      trustees of each proposed annexing local district shall:
             1435          (a) mail notice of the public hearing and the proposed annexation to:
             1436          (i) if the local district is funded predominantly by revenues from a property tax, each
             1437      owner of private real property located within the area proposed to be annexed, as shown upon the
             1438      county assessment roll last equalized as of the previous December 31; or
             1439          (ii) if the local district is not funded predominantly by revenues from a property tax, each
             1440      registered voter residing within the area proposed to be annexed, as determined by the voter
             1441      registration list maintained by the county clerk as of a date selected by the board of trustees that
             1442      is at least 20 but not more than 60 days before the public hearing; and
             1443          (b) post notice of the public hearing and the proposed annexation in at least four
             1444      conspicuous places within the area proposed to be annexed, no less than ten and no more than 30
             1445      days before the public hearing.
             1446          (2) Each notice required under Subsection (1) shall:
             1447          (a) describe the area proposed to be annexed;
             1448          (b) identify the proposed annexing local district;
             1449          (c) state the date, time, and location of the public hearing; and
             1450          (d) provide a local district telephone number where additional information about the
             1451      proposed annexation may be obtained; and


             1452          (e) except for a proposed annexation under a petition that meets the requirements of
             1453      Subsection 17B-2-513 (1), explain that property owners and registered voters within the area
             1454      proposed to be annexed may protest the annexation by filing a written protest with the local district
             1455      board of trustees within 30 days after the public hearing.
             1456          Section 46. Section 17B-2-511 is enacted to read:
             1457          17B-2-511. Modifications to area proposed for annexation -- Limitations.
             1458          (1) (a) Subject to Subsections (2), (3), (4), and (5), a board of trustees may, within 30 days
             1459      after the pubic hearing under Section 17B-2-509 , or, if no public hearing is held, within 30 days
             1460      after the board provides notice under Subsection 17B-2-513 (2)(a)(i), modify the area proposed for
             1461      annexation to include land not previously included in that area or to exclude land from that area
             1462      if the modification enhances the feasibility of the proposed annexation.
             1463          (b) A modification under Subsection (1)(a) may consist of the exclusion of all the land
             1464      within an applicable area if:
             1465          (i) the entire area proposed to be annexed consists of more than that applicable area;
             1466          (ii) sufficient protests under Section 17B-2-512 are filed with respect to that applicable
             1467      area that an election would have been required under Subsection 17B-2-512 (3) if that applicable
             1468      area were the entire area proposed to be annexed; and
             1469          (iii) the other requirements of Subsection (1)(a) are met.
             1470          (2) A board of trustees may not add property under Subsection (1) to the area proposed for
             1471      annexation without the consent of the owner of that property.
             1472          (3) Except as provided in Subsection (1)(b), a modification under Subsection (1) may not
             1473      avoid the requirement for an election under Subsection 17B-2-512 (3) if, before the modification,
             1474      the election was required because of protests filed under Section 17B-2-512 .
             1475          (4) If the annexation is proposed by a petition under Subsection 17B-2-503 (1)(a)(ii)(A)
             1476      or (B), a modification may not be made unless the requirements of Subsection
             1477      17B-2-503 (1)(a)(ii)(A) or (B) are met after the modification as to the area proposed to be annexed.
             1478          (5) If the petition meets the requirements of Subsection 17B-2-513 (1) before a
             1479      modification under this section but fails to meet those requirements after modification:
             1480          (a) the local district board shall give notice as provided in Section 17B-2-510 and hold a
             1481      public hearing as provided in Section 17B-2-509 on the proposed annexation; and
             1482          (b) the petition shall be considered in all respects as one that does not meet the


             1483      requirements of Subsection 17B-2-513 (1).
             1484          Section 47. Section 17B-2-512 is enacted to read:
             1485          17B-2-512. Protests -- Election.
             1486          (1) (a) Except as provided in Section 17B-2-513 and except for an annexation under
             1487      Section 17B-2-515 , an owner of private real property located within or a registered voter residing
             1488      within an area proposed to be annexed may protest an annexation by filing a written protest with
             1489      the board of trustees of the proposed annexing local district.
             1490          (b) A protest of a boundary adjustment is not governed by this section but is governed by
             1491      Section 17B-2-516 .
             1492          (2) Each protest under Subsection (1)(a) shall be filed within 30 days after the date of the
             1493      public hearing under Section 17B-3-509 .
             1494          (3) (a) Except as provided in Subsection (4), the local district shall hold an election on the
             1495      proposed annexation if timely protests are filed by:
             1496          (i) the owners of private real property that:
             1497          (A) is located within the area proposed to be annexed;
             1498          (B) covers at least 10% of the total private land area within the entire area proposed to be
             1499      annexed and within each applicable area; and
             1500          (C) is equal in assessed value to at least 10% of the assessed value of all private real
             1501      property within the entire area proposed to be annexed and within each applicable area; or
             1502          (ii) registered voters residing within the entire area proposed to be annexed and within
             1503      each applicable area equal in number to at least 10% of the number of votes cast within the entire
             1504      area proposed for annexation and within each applicable area, respectively, for the office of
             1505      governor at the last regular general election before the filing of the petition.
             1506          (b) Except as otherwise provided in this part, each election under Subsection (3)(a) shall
             1507      be governed by Title 20A, Election Code.
             1508          (c) If a majority of registered voters residing within the area proposed to be annexed and
             1509      voting on the proposal vote:
             1510          (i) in favor of annexation, the board of trustees shall, subject to Subsections
             1511      17B-2-514 (1)(b), (2), and (3), complete the annexation by adopting a resolution annexing the area;
             1512      or
             1513          (ii) against annexation, the annexation process is terminated, the board may not adopt a


             1514      resolution annexing the area, and the area proposed to be annexed may not for two years be the
             1515      subject of an effort under this part to annex to the same local district.
             1516          (4) If sufficient protests are filed under this section to require an election, a board of
             1517      trustees may, notwithstanding Subsection (3), adopt a resolution rejecting the annexation and
             1518      terminating the annexation process without holding an election.
             1519          Section 48. Section 17B-2-513 is enacted to read:
             1520          17B-2-513. Hearing, notice, and protest provisions do not apply for certain petitions.
             1521          (1) Section 17B-2-512 does not apply, and, except as provided in Subsection (2)(a),
             1522      Sections 17B-2-509 and 17B-2-510 do not apply:
             1523          (a) if the process to annex an area to a local district was initiated by:
             1524          (i) a petition under Subsection 17B-2-503 (1)(a)(i);
             1525          (ii) a petition under Subsection 17B-2-503 (1)(a)(ii)(A) that was signed by the owners of
             1526      private real property that:
             1527          (A) is located within the area proposed to be annexed;
             1528          (B) covers at least 75% of the total private land area within the entire area proposed to be
             1529      annexed and within each applicable area; and
             1530          (C) is equal in assessed value to at least 75% of the assessed value of all private real
             1531      property within the entire area proposed to be annexed and within each applicable area; or
             1532          (iii) a petition under Subsection 17B-2-503 (1)(a)(ii)(B) that was signed by registered
             1533      voters residing within the entire area proposed to be annexed and within each applicable area equal
             1534      in number to at least 75% of the number of votes cast within the entire area proposed to be
             1535      annexed and within each applicable area, respectively, for the office of governor at the last regular
             1536      general election before the filing of the petition;
             1537          (b) to an annexation under Section 17B-2-515 ; or
             1538          (c) to a boundary adjustment under Section 17B-2-516 .
             1539          (2) (a) If a petition that meets the requirements of Subsection (1)(a) is certified under
             1540      Section 17B-2-505 , the local district board:
             1541          (i) shall provide notice of the proposed annexation as provided in Subsection (2)(b); and
             1542          (ii) (A) may, in the board's discretion, hold a public hearing as provided in Section
             1543      17B-2-509 after giving notice of the public hearing as provided in Subsection (2)(b); and
             1544          (B) shall, after giving notice of the public hearing as provided in Subsection (2)(b), hold


             1545      a public hearing as provided in Section 17B-2-509 if a written request to do so is submitted, within
             1546      20 days after the local district provides notice under Subsection (2)(a)(i), to the local district board
             1547      by an owner of property that is located within or a registered voter residing within the area
             1548      proposed to be annexed who did not sign the annexation petition.
             1549          (b) The notice required under Subsections (2)(a)(i)and (ii) shall:
             1550          (i) be given:
             1551          (A) (I) for a notice under Subsection (2)(a)(i), within 30 days after petition certification;
             1552      or
             1553          (II) for a notice of a public hearing under Subsection (2)(a)(ii), at least ten but not more
             1554      than 30 days before the public hearing; and
             1555          (B) by:
             1556          (I) posting written notice at the local district's principal office and in one or more other
             1557      locations within or proximate to the area proposed to be annexed as are reasonable under the
             1558      circumstances, considering the number of parcels included in that area, the size of the area, the
             1559      population of the area, and the contiguousness of the area; and
             1560          (II) providing written notice to at least one newspaper of general circulation, if there is one,
             1561      within the area proposed to be annexed or to a local media correspondent; and
             1562          (ii) contain a brief explanation of the proposed annexation and include the name of the
             1563      local district, the service provided by the local district, a description or map of the area proposed
             1564      to be annexed, a local district telephone number where additional information about the proposed
             1565      annexation may be obtained, and, for a notice under Subsection (2)(a)(i), an explanation of the
             1566      right of a property owner or registered voter to request a public hearing as provided in Subsection
             1567      (2)(a)(ii)(B).
             1568          (c) A notice under Subsection (2)(a)(i) may be combined with the notice that is required
             1569      for a public hearing under Subsection (2)(a)(ii)(A).
             1570          Section 49. Section 17B-2-514 is enacted to read:
             1571          17B-2-514. Resolution approving an annexation -- Notice of annexation -- When
             1572      annexation complete.
             1573          (1) (a) Subject to Subsection (1)(b), the local district board shall adopt a resolution
             1574      annexing the area proposed to be annexed or rejecting the proposed annexation within 30 days
             1575      after:


             1576          (i) expiration of the protest period under Subsection 17B-2-512 (2), if sufficient protests
             1577      to require an election are not filed;
             1578          (ii) for a petition that meets the requirements of Subsection 17B-2-513 (1):
             1579          (A) a public hearing under Section 17B-2-509 is held, if the board chooses or is required
             1580      to hold a public hearing under Subsection 17B-2-513 (2)(a)(ii); or
             1581          (B) expiration of the time for submitting a request for public hearing under Subsection
             1582      17B-2-513 (2)(a)(ii)(B), if no request is submitted and the board chooses not to hold a public
             1583      hearing.
             1584          (b) If the local district has entered into an agreement with the United States that requires
             1585      the consent of the United States for an annexation of territory to the district, an annexation under
             1586      this part may not occur until the written consent of the United States is obtained and filed with the
             1587      board of trustees.
             1588          (2) Within ten days after adoption of an annexation resolution under Subsection (1),
             1589      Subsection 17B-2-512 (3)(c)(i), or Section 17B-2-515 , or a boundary adjustment resolution under
             1590      Subsection 17B-2-516 (4), the board shall:
             1591          (a) file a written notice of annexation with the State Tax Commission, the lieutenant
             1592      governor, and the assessor and recorder of the county in which the annexed area is located,
             1593      accompanied by an accurate map or legal description of the boundaries of the area being annexed,
             1594      adequate for purposes of the county assessor and recorder; and
             1595          (b) prepare and execute a certificate acknowledging that the notices required under
             1596      Subsection (2)(a) have been filed, and maintain the certificate with the district records.
             1597          (3) The annexation shall be complete on the date indicated in the certificate required under
             1598      Subsection (2)(b) as the date on which the board filed the notices required under Subsection (2)(a).
             1599          Section 50. Section 17B-2-515 is enacted to read:
             1600          17B-2-515. Annexation through expansion of retail district.
             1601          (1) (a) A local district that provides a wholesale service may adopt a resolution annexing
             1602      an area outside the local district's boundaries if:
             1603          (i) the area is annexed by or otherwise added to a municipality, an independent special
             1604      district, or another local district that:
             1605          (A) acquires the wholesale service from the local district and provides it as a retail service;
             1606          (B) is, before the annexation or other addition, located at least partly within the local


             1607      district; and
             1608          (C) after the annexation or other addition will provide to the annexed or added area the
             1609      same retail service that the local district provides as a wholesale service to the municipality,
             1610      independent special district, or other local district; and
             1611          (ii) except as provided in Subsection (2), no part of the area is within the boundaries of an
             1612      independent special district under Title 17A, Chapter 2, Independent Special Districts, or another
             1613      local district that provides the same wholesale service as the proposed annexing local district.
             1614          (b) For purposes of this section:
             1615          (i) a local district providing transportation service shall be considered to be providing a
             1616      wholesale service; and
             1617          (ii) a municipality included within the boundaries of the local district providing
             1618      transportation service shall be considered to be acquiring that wholesale service from the local
             1619      district and providing it as a retail service and to be providing that retail service after the
             1620      annexation or other addition to the annexed or added area, even though the municipality does not
             1621      in fact provide that service.
             1622          (2) Notwithstanding Subsection (1)(a)(ii), an area outside the boundaries of a local district
             1623      providing a wholesale service and located partly or entirely within the boundaries of an
             1624      independent special district or another local district that provides the same wholesale service may
             1625      be annexed to the local district if:
             1626          (a) the conditions under Subsection (1)(a)(i) are present; and
             1627          (b) the proposed annexing local district and the independent special district or other local
             1628      district follow the same procedure as is required for a boundary adjustment under Section
             1629      17B-2-516 , including both district boards adopting a resolution approving the annexation of the
             1630      area to the proposed annexing local district and the withdrawal of that area from the other district.
             1631          (3) Upon the adoption of an annexation resolution under this section, the board of the
             1632      annexing local district shall comply with the requirements of Subsection 17B-2-514 (2).
             1633          (4) Subsection 17B-2-514 (3) applies to an annexation under this section.
             1634          Section 51. Section 17B-2-516 is enacted to read:
             1635          17B-2-516. Boundary adjustment -- Notice and hearing -- Protest -- Resolution
             1636      adjusting boundaries -- Notice of the adjustment.
             1637          (1) As used in this section, "affected area" means the area located within the boundaries


             1638      of one local district that will be removed from that local district and be included within the
             1639      boundaries of another local district because of the boundary adjustment.
             1640          (2) The boards of trustees of two or more local districts having a common boundary and
             1641      providing the same service on the same wholesale or retail basis may adjust their common
             1642      boundary as provided in this section.
             1643          (3) (a) The board of trustees of each local district intending to adjust a boundary that is
             1644      common with another local district shall:
             1645          (i) adopt a resolution indicating the board's intent to adjust a common boundary;
             1646          (ii) hold a public hearing on the proposed boundary adjustment no less than 60 days after
             1647      the adoption of the resolution under Subsection (3)(a)(i); and
             1648          (iii) (A) (I) publish notice once a week for two successive weeks in a newspaper of general
             1649      circulation within the local district; or
             1650          (II) if there is no newspaper of general circulation within the local district, post notice in
             1651      at least four conspicuous places within the local district; or
             1652          (B) mail a notice to each owner of property located within the affected area and to each
             1653      registered voter residing within the affected area.
             1654          (b) The notice required under Subsection (3)(a)(iii) shall:
             1655          (i) state that the board of trustees of the local district has adopted a resolution indicating
             1656      the board's intent to adjust a boundary that the local district has in common with another local
             1657      district that provides the same service as the local district;
             1658          (ii) describe the affected area;
             1659          (iii) state the date, time, and location of the public hearing required under Subsection
             1660      (3)(a)(ii);
             1661          (iv) provide a local district telephone number where additional information about the
             1662      proposed boundary adjustment may be obtained;
             1663          (v) explain the financial and service impacts of the boundary adjustment on property
             1664      owners or residents within the affected area; and
             1665          (vi) state in conspicuous and plain terms that the board of trustees may adjust the
             1666      boundaries unless, at or before the public hearing under Subsection (3)(a)(ii), written protests to
             1667      the adjustment are filed with the board by:
             1668          (A) the owners of private real property that:


             1669          (I) is located within the affected area;
             1670          (II) covers at least 50% of the total private land area within the affected area; and
             1671          (III) is equal in assessed value to at least 50% of the assessed value of all private real
             1672      property within the affected area; or
             1673          (B) registered voters residing within the affected area equal in number to at least 50% of
             1674      the votes cast in the affected area for the office of governor at the last regular general election
             1675      before the filing of the protests.
             1676          (c) The first publication of the notice required under Subsection (3)(a)(iii)(A) shall be
             1677      within 14 days after the board's adoption of a resolution under Subsection (3)(a)(i).
             1678          (d) The boards of trustees of the local districts whose boundaries are being adjusted may
             1679      jointly:
             1680          (i) publish, post, or mail the notice required under Subsection (3)(a)(iii); and
             1681          (ii) hold the public hearing required under Subsection (3)(a)(ii).
             1682          (4) After the public hearing required under Subsection (3)(a)(ii), the board of trustees may
             1683      adopt a resolution adjusting the common boundary unless, at or before the public hearing, written
             1684      protests to the boundary adjustment have been filed with the board by:
             1685          (a) the owners of private real property that:
             1686          (i) is located within the affected area;
             1687          (ii) covers at least 50% of the total private land area within the affected area; and
             1688          (iii) is equal in assessed value to at least 50% of the assessed value of all private real
             1689      property within the affected area; or
             1690          (b) registered voters residing within the affected area equal in number to at least 50% of
             1691      the votes cast in the affected area for the office of governor at the last regular general election
             1692      before the filing of the protests.
             1693          (5) A resolution adopted under Subsection (4) does not take effect until the board of each
             1694      local district whose boundaries are being adjusted has adopted a resolution under Subsection (4).
             1695          (6) Within ten days after the resolutions take effect under Subsection (5), the board of the
             1696      local district whose boundaries are being adjusted to include the affected area shall comply with
             1697      the requirements of Subsection 17B-2-514 (2).
             1698          (7) Subsection 17B-2-514 (3) applies to a boundary adjustment under this section to the
             1699      same extent as if the boundary adjustment were an annexation.


             1700          Section 52. Section 17B-2-517 is enacted to read:
             1701          17B-2-517. Annexed area subject to taxes and fees.
             1702          When an annexation under Section 17B-2-514 or 17B-2-515 or a boundary adjustment
             1703      under Section 17B-2-516 is complete, the annexed area or the area affected by the boundary
             1704      adjustment shall be subject to user fees or charges imposed by and property, sales, and other taxes
             1705      levied by or for the benefit of the local district.
             1706     
Part 6. Reserved

             1707          Section 53. Section 17B-2-701 is enacted to read:
             1708     
Part 7. Dissolution

             1709          17B-2-701. Definitions.
             1710          For purposes of this part:
             1711          (1) "Active" means, with respect to a local district, that the district is not inactive.
             1712          (2) "Administrative body" means:
             1713          (a) if the local district proposed to be dissolved has a duly constituted board of trustees in
             1714      sufficient numbers to form a quorum, the board of trustees; or
             1715          (b) except as provided in Subsection (2)(a):
             1716          (i) for a local district located entirely within a single municipality, the legislative body of
             1717      that municipality;
             1718          (ii) for a local district located in multiple municipalities within the same county or at least
             1719      partly within the unincorporated area of a county, the legislative body of that county; or
             1720          (iii) for a local district located within multiple counties, the legislative body of the county
             1721      whose boundaries include more of the local district than is included within the boundaries of any
             1722      other county.
             1723          (3) "Clerk" means:
             1724          (a) the board of trustees if the board is also the administrative body under Subsection
             1725      (2)(a);
             1726          (b) the clerk or recorder of the municipality whose legislative body is the administrative
             1727      body under Subsection (2)(b)(i); or
             1728          (c) the clerk of the county whose legislative body is the administrative body under
             1729      Subsection (2)(b)(ii) or (iii).
             1730          (4) "Inactive" means, with respect to a local district, that during the preceding three years


             1731      the district has not:
             1732          (a) provided any service or otherwise operated;
             1733          (b) received property taxes or user or other fees; and
             1734          (c) expended any funds.
             1735          Section 54. Section 17B-2-702 is enacted to read:
             1736          17B-2-702. Dissolution of local district.
             1737          A local district may be dissolved as provided in this part.
             1738          Section 55. Section 17B-2-703 is enacted to read:
             1739          17B-2-703. Initiation of dissolution process.
             1740          The process to dissolve a local district may be initiated by:
             1741          (1) for an inactive local district:
             1742          (a) (i) for a local district whose board of trustees is elected by electors based on the
             1743      acre-feet of water allotted to the land owned by the elector, a petition signed by the owners of 25%
             1744      of the acre-feet of water allotted to the land within the local district; or
             1745          (ii) for all other districts:
             1746          (A) a petition signed by the owners of private real property that:
             1747          (I) is located within the local district proposed to be dissolved;
             1748          (II) covers at least 25% of the private land area within the local district; and
             1749          (III) is equal in assessed value to at least 25% of the assessed value of all private real
             1750      property within the local district; or
             1751          (B) a petition signed by registered voters residing within the local district proposed to be
             1752      dissolved equal in number to at least 25% of the number of votes cast in the district for the office
             1753      of governor at the last regular general election before the filing of the petition; or
             1754          (b) a resolution adopted by the administrative body; and
             1755          (2) for an active local district, a petition signed by:
             1756          (a) for a local district whose board of trustees is elected by electors based on the acre-feet
             1757      of water allotted to the land owned by the elector, a petition signed by the owners of 100% of the
             1758      acre-feet of water allotted to the land within the local district; or
             1759          (b) for all other districts, the owners of 100% of the private real property located within
             1760      or 100% of registered voters residing within the local district proposed to be dissolved.
             1761          Section 56. Section 17B-2-704 is enacted to read:


             1762          17B-2-704. Petition requirements.
             1763          (1) Each petition under Subsection 17B-2-703 (1)(a) or (2) shall:
             1764          (a) indicate the typed or printed name and current residence address of each owner of
             1765      acre-feet of water, property owner, or registered voter signing the petition;
             1766          (b) if it is a petition signed by the owners of acre-feet of water or property owners, indicate
             1767      the address of the property as to which the owner is signing;
             1768          (c) designate up to three signers of the petition as sponsors, one of whom shall be
             1769      designated the contact sponsor, with the mailing address and telephone number of each; and
             1770          (d) be filed with the clerk.
             1771          (2) A signer of a petition to dissolve a local district may withdraw, or, once withdrawn,
             1772      reinstate the signer's signature at any time until 30 days after the public hearing under Section
             1773      17B-2-706 .
             1774          Section 57. Section 17B-2-705 is enacted to read:
             1775          17B-2-705. Petition certification.
             1776          (1) Within 30 days after the filing of a petition under Subsection 17B-2-703 (1)(a) or (2),
             1777      the clerk shall:
             1778          (a) with the assistance of officers of the county in which the local district is located from
             1779      whom the clerk requests assistance, determine whether the petition meets the requirements of
             1780      Section 17B-2-703 and Subsection 17B-2-704 (1); and
             1781          (b) (i) if the clerk determines that the petition complies with the requirements, certify the
             1782      petition and mail or deliver written notification of the certification to the contact sponsor; or
             1783          (ii) if the clerk determines that the petition fails to comply with any of the requirements,
             1784      reject the petition and mail or deliver written notification of the rejection and the reasons for the
             1785      rejection to the contact sponsor.
             1786          (2) (a) If the clerk rejects a petition under Subsection (1)(b)(ii), the petition may be
             1787      amended to correct the deficiencies for which it was rejected and then refiled.
             1788          (b) A valid signature on a petition that was rejected under Subsection (1)(b)(ii) may be
             1789      used toward fulfilling the applicable signature requirement of the petition as amended under
             1790      subsection (2)(a).
             1791          (3) The clerk shall process an amended petition filed under Subsection (2)(a) in the same
             1792      manner as an original petition under Subsection (1).


             1793          Section 58. Section 17B-2-706 is enacted to read:
             1794          17B-2-706. Public hearing.
             1795          (1) For each petition certified under Section 17B-2-705 and each resolution adopted under
             1796      Subsection 17B-2-703 (1)(b), the administrative body shall hold a public hearing on the proposed
             1797      dissolution.
             1798          (2) Each public hearing under Subsection (1) shall be held:
             1799          (a) no later than 45 days after certification of the petition under Section 17B-2-705 or
             1800      adoption of a resolution under Subsection 17B-2-703 (1)(b), as the case may be;
             1801          (b) within the local district proposed to be dissolved;
             1802          (c) on a weekday evening other than a holiday beginning no earlier than 6:00 p.m.; and
             1803          (d) for the purpose of allowing:
             1804          (i) the public to ask questions and obtain further information about the proposed
             1805      dissolution and issues raised by it; and
             1806          (ii) any interested person to address the administrative body concerning the proposed
             1807      dissolution.
             1808          (3) A quorum of the administrative body shall be present throughout each public hearing
             1809      under this section.
             1810          Section 59. Section 17B-2-707 is enacted to read:
             1811          17B-2-707. Notice of public hearing and of dissolution.
             1812          (1) Before holding a public hearing required under Section 17B-2-706 , the administrative
             1813      body shall:
             1814          (a) (i) publish notice of the public hearing and of the proposed dissolution in a newspaper
             1815      of general circulation within the local district proposed to be dissolved; and
             1816          (ii) post notice of the public hearing and of the proposed dissolution in at least four
             1817      conspicuous places within the local district proposed to be dissolved, no less than five and no more
             1818      than 30 days before the public hearing; or
             1819          (b) mail a notice to each owner of property located within the local district and to each
             1820      registered voter residing within the local district.
             1821          (2) Each notice required under Subsection (1) shall:
             1822          (a) identify the local district proposed to be dissolved and the service it was created to
             1823      provide; and


             1824          (b) state the date, time, and location of the public hearing.
             1825          Section 60. Section 17B-2-708 is enacted to read:
             1826          17B-2-708. Dissolution resolution -- Limitations on dissolution -- Notice of
             1827      dissolution.
             1828          (1) After the public hearing required under Section 17B-2-706 and subject to Subsection
             1829      (2), the administrative body may adopt a resolution dissolving the local district.
             1830          (2) A resolution under Subsection (1) may not be adopted unless:
             1831          (a) any outstanding debt of the local district is:
             1832          (i) satisfied and discharged in connection with the dissolution; or
             1833          (ii) assumed by another governmental entity with the consent of all the holders of that debt
             1834      and all the holders of other debts of the local district;
             1835          (b) for a local district that has provided service during the preceding three years or
             1836      undertaken planning or other activity preparatory to providing service:
             1837          (i) another entity has committed to provide the same service to the area being served or
             1838      proposed to be served by the local district; and
             1839          (ii) all who are to receive the service have consented to the service being provided by the
             1840      other entity; and
             1841          (c) all outstanding contracts to which the local district is a party are resolved through
             1842      mutual termination or the assignment of the district's rights, duties, privileges, and responsibilities
             1843      to another entity with the consent of the other parties to the contract.
             1844          (3) (a) (i) Any assets of the local district remaining after paying all debts and other
             1845      obligations of the local district shall be used to pay costs associated with the dissolution process
             1846      under this part.
             1847          (ii) Any costs of the dissolution process remaining after exhausting the remaining assets
             1848      of the local district under Subsection (3)(a)(i) shall be paid by the administrative body.
             1849          (b) Any assets of the local district remaining after application of Subsection (3)(a) shall
             1850      be distributed:
             1851          (i) proportionately to the owners of real property within the dissolved local district if there
             1852      is a readily identifiable connection between a financial burden borne by the real property owners
             1853      in the district and the remaining assets; or
             1854          (ii) except as provided in Subsection (3)(b)(i), to each county, city, or town in which the


             1855      dissolved local district was located before dissolution in the same proportion that the land area of
             1856      the local district located within the unincorporated area of the county or within the city or town
             1857      bears to the total local district land area.
             1858          (4) Within ten days after adopting a resolution dissolving the local district, the
             1859      administrative body shall cause a notice of the dissolution, with a copy of the dissolution
             1860      resolution, to be mailed or delivered to the State Tax Commission, the state auditor, and the
             1861      assessor and recorder of each county in which any part of the dissolved district was located
             1862      immediately before dissolution.
             1863          Section 61. Section 73-2-1 is amended to read:
             1864           73-2-1. State engineer -- Term -- Powers and duties -- Qualification for duties.
             1865          (1) There shall be a state engineer.
             1866          (2) The state engineer shall:
             1867          (a) be appointed by the governor with the consent of the Senate;
             1868          (b) hold [his] office for the term of four years and until [his] a successor is appointed; and
             1869          (c) have five years experience as a practical engineer or the theoretical knowledge,
             1870      practical experience, and skill necessary for the position.
             1871          (3) (a) The state engineer shall be responsible for the general administrative supervision
             1872      of the waters of the state and the measurement, appropriation, apportionment, and distribution of
             1873      those waters.
             1874          (b) The state engineer shall have the power to:
             1875          (i) make and publish rules necessary to carry out the duties of his office;
             1876          (ii) secure the equitable apportionment and distribution of the water according to the
             1877      respective rights of appropriators; and
             1878          (iii) bring suit in courts of competent jurisdiction to:
             1879          (A) enjoin the unlawful appropriation, diversion, and use of surface and underground
             1880      water;
             1881          (B) prevent waste, loss, or pollution of those waters; and
             1882          (C) enable him to carry out the duties of his office.
             1883          (c) The state engineer shall:
             1884          (i) upon request from the board of trustees of an irrigation district under Title 17A, Chapter
             1885      2, Part 7, Irrigation Districts, or a local district under Title 17B, Chapter 2, Local Districts, that


             1886      operates an irrigation water system, cause a water survey to be made of all lands proposed to be
             1887      annexed to the district in order to determine and allot the maximum amount of water that could
             1888      be beneficially used on the land, with a separate survey and allotment being made for each 40-acre
             1889      or smaller tract in separate ownership; and
             1890          (ii) upon completion of the survey and allotment under Subsection (3)(c)(i), file with the
             1891      district board a return of the survey and report of the allotment.
             1892          (4) (a) The state engineer may establish water districts and define their boundaries.
             1893          (b) The water districts shall be formed in a manner that:
             1894          (i) secures the best protection to the water claimants; and
             1895          (ii) is the most economical for the state to supervise.
             1896          Section 62. Repealer.
             1897          This act repeals:
             1898          Section 17A-2-202, Creation and organization of district.
             1899          Section 17A-2-203, Procedure -- Petition -- Contents and sufficiency of petition.
             1900          Section 17A-2-204, Hearing and determination -- Notice -- Boundaries.
             1901          Section 17A-2-205, Election to determine organization of district -- Notice -- Eligibility
             1902      of voters.
             1903          Section 17A-2-206, Conduct of election -- Precincts -- Judges.
             1904          Section 17A-2-207, Canvass of returns.
             1905          Section 17A-2-213, Annexation of adjoining territory -- Procedure -- Necessity for
             1906      approval of board.
             1907          Section 17A-2-214, Annexation of additional territory within adjoining county --
             1908      Requirements.
             1909          Section 17A-2-303, Procedure for creation of district.
             1910          Section 17A-2-304, Notice of hearing and intent -- Protests -- Resolution establishing
             1911      district -- Writ of review.
             1912          Section 17A-2-331, Annexation of areas.
             1913          Section 17A-2-332, Methods of annexation -- Resolution -- Proposed area including
             1914      part of another county.
             1915          Section 17A-2-333, Notice of intention to annex -- Resolution -- Writ of review.
             1916          Section 17A-2-339, Adjustment of common boundaries -- Notice and hearing -- Protest


             1917      -- Property taxes after the boundary adjustment.
             1918          Section 17A-2-404, Establishment of service area.
             1919          Section 17A-2-406, Resolution of county.
             1920          Section 17A-2-407, Publication and mailing of resolution.
             1921          Section 17A-2-408, Hearing -- Protests -- Report of officers -- Record.
             1922          Section 17A-2-409, Abandonment of proposed service area -- Procedures.
             1923          Section 17A-2-410, Ordinance to establish area -- Appeals -- Exclusion of lands from
             1924      area -- Inclusion of unspecified services prohibited.
             1925          Section 17A-2-417, Annexation of other areas.
             1926          Section 17A-2-420, Existing districts may dissolve.
             1927          Section 17A-2-430, Reorganization of existing county service areas -- Procedure.
             1928          Section 17A-2-529, Procedure for annexation -- Petition -- Appeals by persons
             1929      aggrieved -- Recordation and filing of order.
             1930          Section 17A-2-546, Organization of districts in cities or towns.
             1931          Section 17A-2-561, Petition for dissolution -- Notice -- Hearings -- Objections --
             1932      Liquidation of indebtedness.
             1933          Section 17A-2-562, Disposal of district property.
             1934          Section 17A-2-563, Statement of assessment levied, collected and uncollected, and of
             1935      indebtedness filed with clerk.
             1936          Section 17A-2-564, Court to determine obligations and expense of dissolution --
             1937      Claims not presented, barred.
             1938          Section 17A-2-565, Allocating and apportioning indebtedness against land.
             1939          Section 17A-2-566, Payment discharges lien, excepting liens for prior assessments.
             1940          Section 17A-2-567, Sale of lands upon failure to pay amounts allocated -- Procedure.
             1941          Section 17A-2-602, Proposal of district by petition -- Petition -- Form, contents, and
             1942      requisites of petition.
             1943          Section 17A-2-603, Hearing for establishment of district.
             1944          Section 17A-2-604, Procedure at hearing upon petition.
             1945          Section 17A-2-605, Organization of proposed district -- Adoption of ordinance --
             1946      Election -- Qualification of voters.
             1947          Section 17A-2-606, Conduct of election -- Challenges -- Judges of election.


             1948          Section 17A-2-608, Canvass of votes -- Order of the county legislative body.
             1949          Section 17A-2-614, Annexation of contiguous territory -- Procedure -- Petition --
             1950      Special election.
             1951          Section 17A-2-624, Winding up and dissolution of district.
             1952          Section 17A-2-702, Petition for irrigation district -- Duty of the county legislative body
             1953      and state engineer -- Creation provisions superseded -- Exception.
             1954          Section 17A-2-703, Land and water allotments -- Revision and alteration --
             1955      Proceedings to list lands -- Writ of mandamus -- Hearing and determination on writ --
             1956      Calling election --Conduct of election.
             1957          Section 17A-2-704, Notice of election -- Trustees.
             1958          Section 17A-2-705, Canvass of returns -- Organization of district.
             1959          Section 17A-2-731, Petition for inclusion.
             1960          Section 17A-2-732, Notice of application -- Procedure -- Time -- Costs.
             1961          Section 17A-2-733, Hearing on petition.
             1962          Section 17A-2-734, Conditions precedent to granting.
             1963          Section 17A-2-735, Action on petition.
             1964          Section 17A-2-736, Copies of orders and plat recorded -- Additions liable.
             1965          Section 17A-2-737, Minutes admissible in evidence.
             1966          Section 17A-2-745, Division of districts -- Representation.
             1967          Section 17A-2-746, Dissolution of district -- Election -- Procedure.
             1968          Section 17A-2-747, Returns and canvass of election.
             1969          Section 17A-2-748, Irrigation district's failure to function -- Dissolution -- Increase
             1970      of assessment -- Lien and tax sale.
             1971          Section 17A-2-811, Publication of call.
             1972          Section 17A-2-812, Ballot.
             1973          Section 17A-2-813, Counting ballots and canvassing returns.
             1974          Section 17A-2-814, Consolidated elections.
             1975          Section 17A-2-815, Certificate to lieutenant governor -- Valuation of cities approving.
             1976          Section 17A-2-841, Annexation to district -- Validity of proceedings.
             1977          Section 17A-2-912, Annexation of area into district -- Conditions -- Procedures --
             1978      Petition -- Resolution -- Protests.


             1979          Section 17A-2-913, Dissolution -- Election -- Apportionment of property.
             1980          Section 17A-2-1404, Establishment of district -- Petition -- Effect of defects.
             1981          Section 17A-2-1405, Bond to be filed with petition.
             1982          Section 17A-2-1406, Hearing -- Jurisdiction of district court -- Court not to be
             1983      disqualified.
             1984          Section 17A-2-1407, Protest petition -- Objections -- Hearing -- Decree establishing
             1985      district -- Meetings -- Dismissal of petition or proceedings -- Finality and conclusiveness of
             1986      order --Appeal.
             1987          Section 17A-2-1408, Findings and decree to be filed -- Fees.
             1988          Section 17A-2-1437, Change of boundaries -- Petitions for and against inclusion within
             1989      district -- Hearing -- Petition protesting inclusion -- Hearing -- Appeal -- Annexation
             1990      --Hearings -- Objections -- Order of inclusion -- Findings and decrees -- Appeal.
             1991          Section 17A-2-1815, Dissolution of regional service areas.
             1992          Section 17A-2-1816, Annexation proceedings.
             1993          Section 17A-2-1817, Publication.
             1994          Section 17A-2-1818, Hearing -- Protests -- Report of officers -- Record.
             1995          Section 17A-2-1819, Abandonment of proposed annexation -- Procedures.
             1996          Section 17A-2-1820, Referendum election procedures.
             1997          Section 63. Coordination clause.
             1998          If this bill and H.B. 155, Annexation Amendments, both pass, it is the intent of the
             1999      Legislature that the Office of Legislative Research and General Counsel, in preparing the Utah
             2000      Code database for publication, include in the database a rewritten Subsection 17B-2-506 (3) that
             2001      shall read as follows:
             2002          "(3) For purposes of this section, an area proposed to be annexed to a municipality in a
             2003      petition under Section 10-2-403 filed before and still pending at the time of the filing of a petition
             2004      under Subsection 17B-2-503 (1)(a) and an area included within a municipality's annexation policy
             2005      plan under Section 10-2-401.5 shall be considered to be part of that municipality.".


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