Download Zipped Introduced WordPerfect HB0044S02.ZIP
[Status][Bill Documents][Fiscal Note][Bills Directory]

Second Substitute H.B. 44

Senator Carlene M. Walker proposes the following substitute bill:


             1     
LOCAL GOVERNMENT AMENDMENTS

             2     
2006 GENERAL SESSION

             3     
STATE OF UTAH

             4     
Chief Sponsor: Brad L. Dee

             5     
Senate Sponsor: Carlene M. Walker

             6     
             7      LONG TITLE
             8      General Description:
             9          This bill modifies provisions relating to local governments.
             10      Highlighted Provisions:
             11          This bill:
             12          .    expands the reach of the Local Government Bonding Act so that the act applies to
             13      additional independent special districts and to local districts;
             14          .    modifies definitions in the Local Government Bonding Act;
             15          .    adds to the Local Government Bonding Act a provision that:
             16              .    authorizes a local political subdivision to require bonds to recite that they
             17      comply with applicable law; and
             18              .    makes bonds incontestible if they contain that recital;
             19          .    modifies provisions that validates bonds and tax anticipation obligations and
             20      proceedings relating to them;
             21          .    adds a provision authorizing a newly created local political subdivision to issue tax
             22      and revenue anticipation notes or bonds;
             23          .    adds to the Local Government Bonding Act a provision that makes bonds legal
             24      investments for various funds, allows funds to be invested in or loaned upon the
             25      security of local political subdivision bonds, and allows bonds of a local political


             26      subdivision to be used as security for the faithful performance on execution of a court or
             27      private trust or other act;
             28          .    expands the reach of a provision under which an independent special district may be
             29      conclusively presumed to have been lawfully created and existing to apply to all
             30      independent special districts rather than those created after May 4, 1999;
             31          .    modifies the bonding authority of cemetery maintenance districts;
             32          .    modifies county service area provisions related to bonding;
             33          .    authorizes mosquito abatement districts to issue notes and bonds, subject to a debt
             34      limit;
             35          .    modifies provisions applicable to administrative control boards of special service
             36      districts;
             37          .    eliminates independent special districts provisions made redundant and superfluous
             38      because of changes in this bill to the Local Government Bonding Act;
             39          .    modifies provisions relating to the issuance of bonds by a municipal building
             40      authority; and
             41          .    makes technical changes.
             42      Monies Appropriated in this Bill:
             43          None
             44      Other Special Clauses:
             45          None
             46      Utah Code Sections Affected:
             47      AMENDS:
             48          11-14-102, as enacted by Chapter 105, Laws of Utah 2005
             49          11-14-103, as enacted by Chapter 105, Laws of Utah 2005
             50          11-14-201, as renumbered and amended by Chapter 105, Laws of Utah 2005
             51          11-14-202, as renumbered and amended by Chapter 105, Laws of Utah 2005
             52          11-14-205, as renumbered and amended by Chapter 105, Laws of Utah 2005
             53          11-14-206, as renumbered and amended by Chapter 105, Laws of Utah 2005
             54          11-14-207, as renumbered and amended by Chapter 105, Laws of Utah 2005
             55          11-14-301, as renumbered and amended by Chapter 105, Laws of Utah 2005
             56          11-14-302, as renumbered and amended by Chapter 105, Laws of Utah 2005


             57          11-14-303, as renumbered and amended by Chapter 105, Laws of Utah 2005
             58          11-14-305, as renumbered and amended by Chapter 105, Laws of Utah 2005
             59          11-14-306, as renumbered and amended by Chapter 105, Laws of Utah 2005
             60          11-14-307, as renumbered and amended by Chapter 105, Laws of Utah 2005
             61          11-14-308, as renumbered and amended by Chapter 105, Laws of Utah 2005
             62          11-14-310, as renumbered and amended by Chapter 105, Laws of Utah 2005
             63          11-14-311, as renumbered and amended by Chapter 105, Laws of Utah 2005
             64          11-14-312, as renumbered and amended by Chapter 105, Laws of Utah 2005
             65          11-14-313, as renumbered and amended by Chapter 105, Laws of Utah 2005
             66          11-14-314, as renumbered and amended by Chapter 105, Laws of Utah 2005
             67          11-14-315, as renumbered and amended by Chapter 105, Laws of Utah 2005
             68          11-14-316, as renumbered and amended by Chapter 105, Laws of Utah 2005
             69          11-14-405, as renumbered and amended by Chapter 105, Laws of Utah 2005
             70          11-14-406, as renumbered and amended by Chapter 105, Laws of Utah 2005
             71          17A-2-103, as enacted by Chapter 177, Laws of Utah 2000
             72          17A-2-223, as renumbered and amended by Chapter 186, Laws of Utah 1990
             73          17A-2-315, as renumbered and amended by Chapter 186, Laws of Utah 1990
             74          17A-2-317, as last amended by Chapter 90, Laws of Utah 2001
             75          17A-2-423, as last amended by Chapter 105, Laws of Utah 2005
             76          17A-2-424, as renumbered and amended by Chapter 186, Laws of Utah 1990
             77          17A-2-426, as renumbered and amended by Chapter 186, Laws of Utah 1990
             78          17A-2-428, as last amended by Chapter 105, Laws of Utah 2005
             79          17A-2-431, as renumbered and amended by Chapter 186, Laws of Utah 1990
             80          17A-2-543, as last amended by Chapter 105, Laws of Utah 2005
             81          17A-2-908, as renumbered and amended by Chapter 186, Laws of Utah 1990
             82          17A-2-1326, as last amended by Chapters 195 and 284, Laws of Utah 2001
             83          17A-2-1828, as enacted by Chapter 216, Laws of Utah 1995
             84          17A-3-909, as last amended by Chapter 259, Laws of Utah 1997
             85      ENACTS:
             86          11-14-304.5, Utah Code Annotated 1953
             87          11-14-317, Utah Code Annotated 1953


             88      REPEALS AND REENACTS:
             89          17A-2-429, as renumbered and amended by Chapter 186, Laws of Utah 1990
             90      REPEALS:
             91          17A-2-311, as renumbered and amended by Chapter 186, Laws of Utah 1990
             92          17A-2-314, as renumbered and amended by Chapter 186, Laws of Utah 1990
             93          17A-2-316, as renumbered and amended by Chapter 186, Laws of Utah 1990
             94          17A-2-321, as renumbered and amended by Chapter 186, Laws of Utah 1990
             95          17A-2-324, as renumbered and amended by Chapter 186, Laws of Utah 1990
             96          17A-2-330, as renumbered and amended by Chapter 186, Laws of Utah 1990
             97          17A-2-421, as renumbered and amended by Chapter 186, Laws of Utah 1990
             98          17A-2-422, as last amended by Chapter 90, Laws of Utah 2001
             99          17A-2-427, as renumbered and amended by Chapter 186, Laws of Utah 1990
             100          17A-2-547, as last amended by Chapter 254, Laws of Utah 2000
             101          17A-2-558, as renumbered and amended by Chapter 186, Laws of Utah 1990
             102          17A-2-825, as last amended by Chapter 254, Laws of Utah 2000
             103          17A-2-832, as renumbered and amended by Chapter 186, Laws of Utah 1990
             104          17A-2-1825, as last amended by Chapter 105, Laws of Utah 2005
             105          17A-2-1827, as enacted by Chapter 216, Laws of Utah 1995
             106     
             107      Be it enacted by the Legislature of the state of Utah:
             108          Section 1. Section 11-14-102 is amended to read:
             109           11-14-102. Definitions.
             110          For the purpose of this chapter:
             111          (1) "Bond" means any bond authorized to be issued under this chapter, including
             112      municipal bonds.
             113          (2) "Election results" [means the same as "election results"] has the same meaning as
             114      defined in Section 20A-1-102 .
             115          (3) "Governing body" means:
             116          (a) for a county, city, or town, the legislative body of the county, city, or town;
             117          (b) for an independent special district or local district, the board of trustees of the
             118      independent special district or local district;


             119          (c) for a school district, the local board of education; or
             120          (d) for a special service district under Title 17A, Chapter 2, Part 13, Utah Special
             121      Service District Act:
             122          (i) the governing body of the county or municipality that created the special service
             123      district if no administrative control board has been established under Section 17A-2-1326 ; or
             124          (ii) the administrative control board, if one has been established under Section
             125      17A-2-1326 and the power to issue bonds not payable from taxes has been delegated to the
             126      administrative control board.
             127          (4) "Independent special district" means a district operating under Title 17A, Chapter
             128      2, Independent Special Districts.
             129          (5) "Local district" means a district operating under Title 17B, Chapter 2, Local
             130      Districts.
             131          [(3)] (6) (a) "Local political subdivision" [includes:] means a county, city, town, school
             132      district, independent special district, or local district.
             133          [(i) cities;]
             134          [(ii) towns;]
             135          [(iii) counties;]
             136          [(iv) school districts;]
             137          [(v) public transit districts;]
             138          [(vi) improvement districts operating under the authority of Title 17A, Chapter 2, Part
             139      3, County Improvement Districts for Water, Sewage, Flood Control, Electric and Gas;]
             140          [(vii) special service districts operating under the authority of Title 17A, Chapter 2,
             141      Part 13, Utah Special Service District Act;]
             142          [(viii) metropolitan water districts operating under the authority of Title 17A, Chapter
             143      2, Part 8, Metropolitan Water District Act;]
             144          [(ix) irrigation districts operating under the authority of Title 17A, Chapter 2, Part 7,
             145      Irrigation District Act;]
             146          [(x) water conservancy districts operating under the authority of Title 17A, Chapter 2,
             147      Part 14, Water Conservancy Districts; and]
             148          [(xi) regional service areas operating under the authority of Title 17A, Chapter 2, Part
             149      18, Regional Service Area Act.]


             150          (b) "Local political subdivision" does not include the state and its institutions.
             151          Section 2. Section 11-14-103 is amended to read:
             152           11-14-103. Bond issues authorized -- Purposes -- Use of bond proceeds.
             153          (1) Any local political subdivision may, in the manner and subject to the limitations
             154      and restrictions contained in this chapter, issue its negotiable bonds for the purpose of paying
             155      all or part of the cost of:
             156          (a) acquiring, improving, or extending any one or more improvements, facilities, or
             157      property that the local political subdivision is authorized by law to acquire[. (2) Any local
             158      political subdivision may also issue such bonds for the acquisition of or the acquisition of],
             159      improve, or extend; or
             160          (b) acquiring, or acquiring an interest in, any one or more or any combination of the
             161      following types of improvements, facilities, or property to be owned by the local political
             162      subdivision, either alone or [to be owned] jointly [by two] with one or more other local
             163      political subdivisions, or for the improvement or extension of any [such] of those wholly or
             164      jointly owned [facility or property] improvements, facilities, or properties:
             165          [(a)] (i) public buildings of every nature, including without limitation, offices,
             166      courthouses, jails, fire, police and sheriff's stations, detention homes, and any other buildings to
             167      accommodate or house lawful activities of a local political subdivision;
             168          [(b)] (ii) waterworks, irrigation systems, water systems, dams, reservoirs, water
             169      treatment plants, and any other improvements, facilities, or property used in connection with
             170      the acquisition, storage, transportation, and supplying of water for domestic, industrial,
             171      irrigation, recreational, and other purposes and preventing pollution of water;
             172          [(c)] (iii) sewer systems, sewage treatment plants, incinerators, and other
             173      improvements, facilities, or property used in connection with the collection, treatment, and
             174      disposal of sewage, garbage, or other refuse;
             175          [(d)] (iv) drainage and flood control systems, storm sewers, and any other
             176      improvements, facilities, or property used in connection with the collection, transportation, or
             177      disposal of water;
             178          [(e)] (v) recreational facilities of every kind, including without limitation, athletic and
             179      play facilities, playgrounds, athletic fields, gymnasiums, public baths, swimming pools, camps,
             180      parks, picnic grounds, fairgrounds, golf courses, zoos, boating facilities, tennis courts,


             181      auditoriums, stadiums, arenas, and theaters;
             182          [(f)] (vi) convention centers, sports arenas, auditoriums, theaters, and other facilities
             183      for the holding of public assemblies, conventions, and other meetings;
             184          [(g)] (vii) roads, bridges, viaducts, tunnels, sidewalks, curbs, gutters, and parking
             185      buildings, lots, and facilities;
             186          [(h)] (viii) airports, landing fields, landing strips, and air navigation facilities;
             187          [(i)] (ix) educational facilities, including without limitation, schools, gymnasiums,
             188      auditoriums, theaters, museums, art galleries, libraries, stadiums, arenas, and fairgrounds;
             189          [(j)] (x) hospitals, convalescent homes, and homes for the aged or indigent; and
             190          [(k)] (xi) electric light works, electric generating systems, and any other improvements,
             191      facilities, or property used in connection with the generation and acquisition of electricity for
             192      these local political subdivisions and transmission facilities and substations if they do not
             193      duplicate transmission facilities and substations of other entities operating in the state prepared
             194      to provide the proposed service unless these transmission facilities and substations proposed to
             195      be constructed will be more economical to these local political subdivisions.
             196          [(3)] (2) Any [such] improvement, facility, or property under Subsection (1) need not
             197      lie within the limits of the local political subdivision.
             198          [(4)] (3) A cost under Subsection (1) may include:
             199          (a) the cost of equipment and furnishings for such improvements, facilities, or
             200      property;
             201          (b) all costs incident to the authorization and issuance of bonds, including engineering,
             202      legal, and fiscal advisers' fees;
             203          (c) costs incident to the issuance of bond anticipation notes, including interest to accrue
             204      on bond anticipation notes;
             205          (d) interest estimated to accrue on the bonds during the period to be covered by the
             206      construction of the improvement, facility, or property and for 12 months after that period; and
             207          (e) other amounts which the [legislative] governing body finds necessary to establish
             208      bond reserve funds and to provide working capital related to the improvement, facility, or
             209      property.
             210          Section 3. Section 11-14-201 is amended to read:
             211           11-14-201. Election on bond issues -- Qualified electors -- Resolution and notice.


             212          (1) The [legislative] governing body of any local political subdivision that wishes to
             213      issue bonds under the authority granted in Section 11-14-103 shall, at least 75 days before the
             214      date of election:
             215          (a) approve a resolution submitting the question of the issuance of the bonds to the
             216      voters of the local political subdivision; and
             217          (b) provide a copy of the resolution to:
             218          (i) the lieutenant governor; and
             219          (ii) the election officer, as defined in Section 20A-1-102 , charged with conducting the
             220      election.
             221          (2) The local political subdivision may not issue the bonds unless the majority of the
             222      qualified voters of the local political subdivision who vote on the bond proposition approve the
             223      issuance of the bonds.
             224          (3) Nothing in this section requires an election for the issuance of:
             225          (a) refunding bonds; or
             226          (b) other bonds not required by law to be voted on at an election.
             227          (4) The resolution calling the election shall include a ballot proposition, in substantially
             228      final form, that complies with the requirements of Subsection 11-14-206 (2).
             229          Section 4. Section 11-14-202 is amended to read:
             230           11-14-202. Notice of election -- Contents -- Publication -- Mailing.
             231          (1) (a) The [legislative] governing body shall ensure that:
             232          (i) notice of the election is published once per week during three consecutive weeks in
             233      a newspaper designated in accordance with Section 11-14-316 ; and
             234          (ii) the first publication occurs not less than 21 nor more than 35 days before the
             235      election.
             236          (b) Notice shall be published in a newspaper having general circulation in the local
             237      political subdivision.
             238          (2) When the debt service on the bonds to be issued will increase the property tax
             239      imposed upon the average value of a residence by an amount that is greater than or equal to $15
             240      per year, the governing body shall, at least seven days but not more than 30 days before the
             241      bond election, if the bond election is not held on the date of a regular primary election, a
             242      municipal primary election, a regular general election, or a municipal general election, either


             243      mail:
             244          (a) written notice of the bond election on a minimum three inch by five inch postcard
             245      to every household containing a registered voter who is eligible to vote on the bonds; or
             246          (b) a voter information pamphlet prepared by the governing body, if one is prepared,
             247      that includes the information required by Subsection (4).
             248          (3) (a) Except as provided in Subsection (3)(b), notice of the bond election need not be
             249      posted.
             250          (b) (i) In a local political subdivision where there is no newspaper of general
             251      circulation, the legislative body may require that notice of a bond election be given by posting
             252      in lieu of the publication requirements of Subsection (1).
             253          (ii) When the [legislative] governing body imposes a posting requirement, the
             254      [legislative] governing body shall ensure that notice of the bond election is posted in at least
             255      five public places in the local political subdivision at least 21 days before the election.
             256          (4) Any notice required by this section shall include:
             257          (a) the date and place of the election;
             258          (b) the hours during which the polls will be open; and
             259          (c) the title and text of the ballot proposition.
             260          (5) The [legislative] governing body shall pay the costs associated with the notice
             261      required by this section.
             262          Section 5. Section 11-14-205 is amended to read:
             263           11-14-205. Special registration not required -- Official register supplied by clerk.
             264          (1) (a) Voter registration shall be administered according to the requirements of Title
             265      20A, Chapter 2, Voter Registration.
             266          (b) The [legislative] governing body may not require or mandate any special
             267      registration of voters for a bond election.
             268          (2) The county clerk of each county in which a local political subdivision holding the
             269      bond election is located shall prepare the official register for the bond election according to the
             270      requirements of Section 20A-5-401 .
             271          (3) The official register's failure to identify those voters not residing in the local
             272      political subdivision holding the bond election, or any inaccuracy in that identification, is not a
             273      ground for invalidating the bond election.


             274          Section 6. Section 11-14-206 is amended to read:
             275           11-14-206. Ballots -- Submission of ballot language -- Form and contents.
             276          (1) At least 75 days before the election, the [legislative] governing body shall prepare
             277      and submit to the election officer:
             278          (a) a ballot title for the bond proposition that includes the name of the local political
             279      subdivision issuing the bonds and the word "bond" or an identification of the type of bonds;
             280      and
             281          (b) a ballot proposition that meets the requirements of Subsection (2).
             282          (2) (a) The ballot proposition shall include:
             283          (i) the maximum principal amount of the bonds;
             284          (ii) the maximum number of years from the issuance of the bonds to final maturity; and
             285          (iii) the general purpose for which the bonds are to be issued.
             286          (b) The purpose of the bonds may be stated in general terms and need not specify the
             287      particular projects for which the bonds are to be issued or the specific amount of bond proceeds
             288      to be expended for each project.
             289          (c) If the bonds are to be payable in part from tax proceeds and in part from the
             290      operating revenues of the local political subdivision, or from any combination of tax proceeds
             291      and operating revenues, the bond proposition shall indicate those payment sources, but need
             292      not specify how the bonds are to be divided between those sources of payment.
             293          (d) (i) The bond proposition shall be followed by the words, "For the issuance of
             294      bonds" and "Against the issuance of bonds," with appropriate boxes in which the voter may
             295      indicate his choice.
             296          (ii) Nothing in Subsection (2)(d)(i) prohibits the addition of descriptive information
             297      about the bonds.
             298          (3) If a bond proposition is submitted to a vote on the same day as any other election
             299      held in the local political subdivision calling the bond election, the bond proposition may be
             300      combined with the candidate ballot in a manner consistent with Section 20A-6-301 ,
             301      20A-6-303 , or 20A-6-402 .
             302          (4) The ballot form shall comply with the requirements of Title 20A, Chapter 6, Ballot
             303      Form.
             304          Section 7. Section 11-14-207 is amended to read:


             305           11-14-207. Counting and canvassing -- Official finding.
             306          (1) (a) Following the election officer's inspection and count of the ballots in accordance
             307      with the procedures of Title 20A, Chapter 4, Part 1, Counting Ballots and Tabulating Results,
             308      and Part 2, Transmittal and Disposition of Ballots and Election Returns, the [legislative]
             309      governing body shall meet and canvass the election results.
             310          (b) (i) The [legislative] governing body of the local political subdivision is the board of
             311      canvassers for the bond proposition.
             312          (ii) The board of canvassers shall always consist of a quorum of the [legislative]
             313      governing body.
             314          (c) The canvass of the election results shall be made in public no sooner than seven
             315      days after the election and no later than 14 days after the election.
             316          (d) The canvass of election results shall be conducted according to the procedures and
             317      requirements of Subsection 20A-4-301 (3) and Sections 20A-4-302 and 20A-4-303 .
             318          (e) If a bond proposition is submitted to a vote on the same day as any other election
             319      held in the local political subdivision calling the bond election, the [legislative] governing body
             320      shall coordinate the date of its canvass with any other board of canvassers appointed under
             321      Section 20A-4-301 .
             322          (2) (a) After the canvass of election returns, the [legislative] governing body shall
             323      record in its minutes:
             324          (i) an official finding as to the total number of votes cast, the number of affirmative
             325      votes, the number of negative votes, the number of challenged voters, the number of challenged
             326      voters that were issued a provisional ballot, and the number of provisional ballots that were
             327      counted; and
             328          (ii) an official finding that the bond proposition was approved or rejected.
             329          (b) The [legislative] governing body need not file with the county clerk or with any
             330      other official:
             331          (i) any statement or certificate of the election results;
             332          (ii) any affidavit with respect to the facts pertaining to the election; or
             333          (iii) any affidavit pertaining to the indebtedness and valuation of the municipality.
             334          (3) The official finding that the majority of the qualified voters of the local political
             335      subdivision voting on the bond proposition approved the issuance of the bonds is conclusive in


             336      any action or proceeding involving the validity of the election or involving the determination or
             337      declaration of the result of the election if the action is filed after the expiration of the period
             338      provided in Subsection 20A-4-403 (3).
             339          Section 8. Section 11-14-301 is amended to read:
             340           11-14-301. Issuance of bonds by governing body -- Computation of indebtedness
             341      under constitutional and statutory limitations.
             342          (1) If the [legislative] governing body has declared the bond proposition to have carried
             343      and no contest has been filed, or if a contest has been filed and favorably terminated, the
             344      [legislative] governing body may proceed to issue the bonds voted at the election.
             345          (2) It is not necessary that all of the bonds be issued at one time, but bonds approved by
             346      the voters may not be issued more than ten years after the date of the election.
             347          (3) (a) Bonds approved by the voters may not be issued to an amount [which] that will
             348      cause the indebtedness of the local political subdivision to exceed that permitted by the Utah
             349      Constitution or statutes.
             350          (b) In computing the amount of indebtedness that may be incurred pursuant to
             351      constitutional limitations, the constitutionally permitted percentage shall be applied to the fair
             352      market value, as defined under Section 59-2-102 , of the taxable property in the local political
             353      subdivision as computed from the last equalized assessment rolls for state and county purposes
             354      prior to the incurring of the additional indebtedness, except that in the case of cities the last
             355      equalized assessment rolls for city purposes shall be controlling.
             356          (c) In determining the fair market value of the taxable property in the local political
             357      subdivision as provided in this section, the value of all tax equivalent property, as defined in
             358      Section 59-3-102 , shall be included as a part of the total fair market value of taxable property
             359      in the local political subdivision, as provided in Title 59, Chapter 3, [the] Tax Equivalent
             360      Property Act.
             361          (4) Bonds of improvement districts issued in a manner that they are payable solely
             362      from the revenues to be derived from the operation of the facilities of the district may not be
             363      included as bonded indebtedness for the purposes of the computation.
             364          (5) Where bonds are issued by a city, town, or county payable solely from revenues
             365      derived from the operation of revenue-producing facilities of the city, town, or county, or
             366      payable solely from a special fund into which are deposited excise taxes levied and collected by


             367      the city, town, or county, or excise taxes levied by the state and rebated pursuant to law to the
             368      city, town, or county, or any combination of those excise taxes, the bonds shall be included as
             369      bonded indebtedness of the city, town, or county only to the extent required by the Utah
             370      Constitution, and any bonds not so required to be included as bonded indebtedness of the city,
             371      town, or county need not be authorized at an election, except as otherwise provided by the Utah
             372      Constitution, the bonds being hereby expressly excluded from the election requirement of
             373      Section 11-14-201 .
             374          (6) A bond election is not void when the amount of bonds authorized at the election
             375      exceeded the limitation applicable to the local political subdivision at the time of holding the
             376      election, but the bonds may be issued from time to time in an amount within the applicable
             377      limitation at the time the bonds are issued.
             378          Section 9. Section 11-14-302 is amended to read:
             379           11-14-302. Resolution -- Negotiability -- Registration -- Maturity -- Interest --
             380      Payment -- Redemption -- Combining issues -- Sale -- Financing plan.
             381          (1) Bonds issued under this chapter shall be authorized by resolution of the [legislative]
             382      governing body, shall be fully negotiable for all purposes, may be made registrable as to
             383      principal alone or as to principal and interest, shall mature at such time or times not more than
             384      40 years from their date, shall bear interest at such rate or rates, if any, shall be payable at such
             385      place or places, shall be in such form, shall be executed in such manner, may be made
             386      redeemable prior to maturity at such times and on such terms, shall be sold in such manner and
             387      at such prices, either at, in excess of, or below face value, and generally shall be issued in such
             388      manner and with such details as may be provided by resolution; it being the express intention
             389      of the legislature that interest rate limitations elsewhere appearing in the laws of Utah shall not
             390      apply to nor limit the rate of interest on bonds issued under this chapter. The resolution shall
             391      specify either the rate or rates of interest, if any, on the bonds or specify the method by which
             392      the interest rate or rates on the bonds may be determined while the bonds are outstanding. If
             393      the resolution specifies a method by which interest on the bonds may be determined, the
             394      resolution shall also specify the maximum rate of interest the bonds may bear. Bonds voted for
             395      different purposes by separate propositions at the same or different bond elections may in the
             396      discretion of the [legislative] governing body be combined and offered for sale as one issue of
             397      bonds. The resolution providing for this combination and the printed bonds for the combined


             398      issue shall separately set forth the amount being issued for each of the purposes provided for in
             399      each proposition submitted to the electors. If the local political subdivision has retained a
             400      fiscal agent to assist and advise it with respect to the bonds and the fiscal agent has received or
             401      is to receive a fee for such services, the bonds may be sold to the fiscal agent but only if the
             402      sale is made pursuant to a sealed bid submitted by the fiscal agent at an advertised public sale.
             403          (2) (a) All bonds shall be paid by the treasurer of the local political subdivision or the
             404      treasurer's duly authorized agent on their respective maturity dates or on the dates fixed for the
             405      bonds redemption. All bond coupons, other than coupons cancelled because of the redemption
             406      of the bonds to which they apply, shall similarly be paid on their respective dates or as soon
             407      thereafter as the bonds or coupons are surrendered.
             408          (b) Upon payment of a bond or coupon, the treasurer of the local political subdivision
             409      or the treasurer's duly authorized agent, shall perforate the bond or coupon with a device
             410      suitable to indicate payment.
             411          (c) Any bonds or coupons which have been paid or cancelled may be destroyed by the
             412      treasurer of the local political subdivision or by the treasurer's duly authorized agent.
             413          (3) Bonds, bond anticipation notes, or tax anticipation notes with maturity dates of one
             414      year or less may be authorized by a local political subdivision from time to time pursuant to a
             415      plan of financing adopted by the [legislative] governing body. The plan of financing shall
             416      specify the terms and conditions under which the bonds or notes may be issued, sold, and
             417      delivered, the officers of the local political subdivision authorized to issue the bonds or notes,
             418      the maximum amount of bonds or notes which may be outstanding at any one time, the source
             419      or sources of payment of the bonds or notes, and all other details necessary for issuance of the
             420      bonds or notes. Subject to the Constitution, the [legislative] governing body of the local
             421      political subdivision may include in the plan of financing the terms and conditions of
             422      agreements which may be entered into by the local political subdivision with banking
             423      institutions for letters of credit or for standby letters of credit to secure the bonds or notes,
             424      including payment from any legally available source of fees, charges, or other amounts coming
             425      due under the agreements entered into by the local political subdivision.
             426          Section 10. Section 11-14-303 is amended to read:
             427           11-14-303. Bonds, notes, or other evidences of indebtedness of political
             428      subdivisions exempt from taxation except corporate franchise tax.


             429          All bonds, notes, or other [evidences of indebtedness] obligations issued under this
             430      chapter or under any other law authorizing the issuance of bonds, notes, or indebtedness by
             431      [any county, city, town, school district, public transit district, improvement district, special
             432      service district, metropolitan water district, water conservancy district, irrigation district,] a
             433      local political subdivision or any other political subdivision now existing or subsequently
             434      created under the laws of Utah, [(]including[, but not limited to,] bonds payable solely from
             435      special assessments and tax anticipation indebtedness[)], and the interest on them shall be
             436      exempt from all taxation in this state, except for the corporate franchise tax.
             437          Section 11. Section 11-14-304.5 is enacted to read:
             438          11-14-304.5. Recital in bonds -- Incontestability.
             439          (1) In the resolution authorizing bonds to be issued as provided in this chapter or other
             440      applicable law, a local political subdivision may require that the bonds recite that they are
             441      issued under authority of this chapter or other applicable law.
             442          (2) (a) A bond recital as provided in Subsection (1) conclusively establishes full
             443      compliance with all the provisions of applicable law.
             444          (b) All bonds issued containing a recital as provided in Subsection (1) shall be
             445      incontestable for any reason after their delivery for value.
             446          Section 12. Section 11-14-305 is amended to read:
             447           11-14-305. Registration, denominations, and exchange of obligations.
             448          (1) As used in this section, "obligations" means bonds, bond anticipation notes, and tax
             449      anticipation notes.
             450          [(1)] (2) Unless otherwise provided by the local political subdivision, [the] Title 15,
             451      Chapter 7, Registered Public Obligations Act, governs and applies to all [bonds, bond
             452      anticipation notes, and tax anticipation notes (bonds, bond anticipation notes and tax
             453      anticipation notes being referred to in this section as "obligations")] obligations issued in
             454      registered form. If [the] Title 15, Chapter 7, Registered Public Obligations Act, is inapplicable
             455      to an issue of obligations, Subsection [(2)] (3) governs and applies with respect to such issue.
             456          [(2)] (3) Any obligations issued under this chapter may be issued in denominations [of
             457      $100 or any multiple of $100] as determined by the governing body. The [legislative]
             458      governing body may provide for the exchange of any of these obligations after issuance for
             459      obligations of larger or smaller denominations in such manner as may be provided in the


             460      authorizing resolution, provided the obligations in changed denominations shall be exchanged
             461      for the original obligations in like aggregate principal amounts and in such manner that no
             462      overlapping interest is paid; and such obligations in changed denominations shall bear interest
             463      at the same rate or rates, if any, shall mature on the same date or dates, shall be as nearly as
             464      practicable in the same form except for an appropriate recital as to the exchange, and shall in
             465      all other respects, except as to denominations and numbers, be identical with the original
             466      obligations surrendered for exchange. Where any exchange is made under this section, the
             467      obligations surrendered by the holders at the time of exchange shall be cancelled; any such
             468      exchange shall be made only at the request of the holders of the obligations to be surrendered;
             469      and the [legislative] governing body may require all expenses incurred in connection with such
             470      exchange, including the authorization and issuance of the new obligations, to be paid by such
             471      holders.
             472          Section 13. Section 11-14-306 is amended to read:
             473           11-14-306. Additional pledge for general obligation bonds -- Revenue bonds --
             474      Resolution.
             475          (1) To the extent constitutionally permissible, local political subdivisions may pledge
             476      as an additional source of payment for their general obligation bonds all or any part of
             477      revenues, fees, and charges attributable to the operation or availability of facilities or may issue
             478      bonds payable solely from such revenues, fees, or charges.
             479          (2) (a) The [legislative] governing body may issue bonds payable solely from revenues,
             480      fees, or charges attributable to extensions and improvements to revenue-producing facilities.
             481          (b) If the [legislative] governing body issues bonds under Subsection (2)(a), the
             482      resolution authorizing these bonds shall set forth as a finding of the [legislative] governing
             483      body:
             484          (i) the value of the then existing facility and the value of this facility after completion
             485      of the extensions or improvements proposed to be constructed; and
             486          (ii) that portion of the revenues, fees, or charges derived from the entire facility when
             487      the contemplated extensions and improvements are completed which the value of the existing
             488      facility bears to the value of the facility after completion shall be considered to be revenue
             489      derived from the existing facility and the remainder may be set aside and pledged to the
             490      payment of the principal of and interest on the bonds and for the establishment of appropriate


             491      reserve fund or funds, and such portion shall be considered to be revenue derived exclusively
             492      from the extensions and improvements.
             493          (3) (a) Any resolution or trust indenture authorizing bonds to which such revenues,
             494      fees, or charges are pledged may contain such covenants with the future holder or holders of
             495      the bonds as to the management and operation of the affected facilities, the imposition,
             496      collection, and disposition of rates, fees, and charges for commodities and services furnished
             497      thereby, the issuance of future bonds, the creation of future liens and encumbrances against the
             498      facilities, the carrying of insurance, the keeping of books and records, the deposit and paying
             499      out of revenues, fees, or charges and bond proceeds, the appointment and duties of a trustee,
             500      and other pertinent matters as may be considered proper by the [legislative] governing body.
             501          (b) If the revenue, fee, or charge so pledged involves either sewer or water revenues,
             502      fees, or charges or both sewer and water revenues, fees, or charges, provision may be made for
             503      charges for sewer services and water services to be billed in a single bill and for the suspension
             504      of water or sewer services, or both, to any customer who shall become delinquent in the
             505      payment due for either.
             506          (c) Provision may be made for the securing of such bonds by a trust indenture, but no
             507      such indenture shall convey, mortgage, or create any lien upon property of the local political
             508      subdivision.
             509          (d) Either the bond resolution or such trust indenture may impose in the holders of the
             510      bonds full rights to enforce the provisions thereof, and may include terms and conditions upon
             511      which the holders of the bonds or any proportion of them, or a trustee therefor, shall be entitled
             512      to the appointment of a receiver who may enter and take possession of the facility or facilities,
             513      the revenues, fees, or charges of which are so pledged, and may operate and maintain them,
             514      prescribe charges and collect, receive, and apply all revenues, fees, or charges therefrom arising
             515      in the same manner as the local political subdivision itself might do.
             516          Section 14. Section 11-14-307 is amended to read:
             517           11-14-307. Revenue bonds payable out of excise tax revenues.
             518          (1) To the extent constitutionally permissible, cities, towns, or counties may issue
             519      bonds payable solely from a special fund into which are to be deposited excise taxes levied and
             520      collected by the city, town, or county, or excise taxes levied by the state and rebated pursuant to
             521      law to the city, town, or county, or any combination of those excise taxes, or may pledge all or


             522      any part thereof as an additional source of payment for their general obligation bonds.
             523          (2) (a) Any resolution authorizing the issuance of bonds payable in whole or in part
             524      from the proceeds of excise tax revenues may contain covenants with the holder or holders of
             525      the bonds as to the excise tax revenues, the disposition of the excise tax revenues, the issuance
             526      of future bonds, and other pertinent matters that are considered necessary by the [legislative]
             527      governing body to assure the marketability of those bonds, provided the covenants are not
             528      inconsistent with the provisions of this chapter.
             529          (b) The resolution may also include provisions to insure the enforcement, collection,
             530      and proper application of excise tax revenues as the [legislative] governing body may think
             531      proper.
             532          (c) The proceeds of bonds payable in whole or in part from pledged class B or C road
             533      funds shall be used to construct, repair, and maintain streets and roads in accordance with
             534      Sections 72-6-108 and 72-6-110 and to fund any reserves and costs incidental to the issuance of
             535      the bonds.
             536          (d) When any bonds payable from excise tax revenues have been issued, the resolution
             537      or other enactment of the legislative body imposing the excise tax and pursuant to which the
             538      tax is being collected, the obligation of the [legislative] governing body to continue to levy,
             539      collect, and allocate the excise tax, and to apply the revenues derived therefrom in accordance
             540      with the provisions of the authorizing resolution or other enactment, shall be irrevocable until
             541      the bonds have been paid in full as to both principal and interest, and is not subject to
             542      amendment in any manner which would impair the rights of the holders of those bonds or
             543      which would in any way jeopardize the timely payment of principal or interest when due.
             544          (3) (a) The state pledges to and agrees with the holders of any bonds issued by a city,
             545      town, or county to which the proceeds of excise taxes collected by the state and rebated to the
             546      city, town, or county are devoted or pledged as authorized in this section, that the state will not
             547      alter, impair, or limit the excise taxes in a manner that reduces the amounts to be rebated to the
             548      city, town, or county which are devoted or pledged as authorized in this section until the bonds
             549      or other securities, together with applicable interest, are fully met and discharged.
             550          (b) Nothing in this Subsection (3) precludes alteration, impairment, or limitation of
             551      excise taxes if adequate provision is made by law for the protection of the holders of the bonds.
             552          (c) Each city, town, or county may include this pledge and undertaking for the state in


             553      those bonds.
             554          (4) The outstanding bonds to which excise tax revenues have been pledged as the sole
             555      source of payment may not at any one time exceed an amount for which the average annual
             556      installments of principal and interest will exceed 80% of the total excise tax revenues received
             557      by the issuing entity from the collection or rebate of the excise tax revenues during the fiscal
             558      year of the issuing entity immediately preceding the fiscal year in which the resolution
             559      authorizing the issuance of bonds is adopted.
             560          (5) Bonds issued solely from a special fund into which are to be deposited excise tax
             561      revenues constitutes a borrowing solely upon the credit of the excise tax revenues received or
             562      to be received by the city, town, or county and does not constitute an indebtedness or pledge of
             563      the general credit of the city, town, or county.
             564          (6) (a) Before issuing any bonds under this section, a city, town, or county shall:
             565          (i) give public notice of its intent to issue the bonds; and
             566          (ii) hold a public hearing to receive input from the public with respect to the issuance
             567      of the bonds.
             568          (b) The city, county, or town shall:
             569          (i) publish the notice once each week for two consecutive weeks in the official
             570      newspaper as designated under Section 11-14-316 , with the first publication being not less than
             571      14 days before the public hearing; and
             572          (ii) ensure that the notice identifies:
             573          (A) the purpose for the issuance of the bonds;
             574          (B) the maximum principal amount of the bonds to be issued;
             575          (C) the excise taxes proposed to be pledged for repayment of the bonds; and
             576          (D) the time, place, and location of the public hearing.
             577          (7) A city, town, or county shall submit the question of whether or not to issue any
             578      bonds under this section to voters for their approval or rejection if, within 30 calendar days
             579      after the notice required by Subsection (6), a written petition requesting an election and signed
             580      by at least 20% of the registered voters in the city, town, or county is filed with the city, town,
             581      or county.
             582          Section 15. Section 11-14-308 is amended to read:
             583           11-14-308. Special service district bonds secured by federal mineral lease


             584      payments -- Use of bond proceeds -- Bond resolution -- Nonimpairment of appropriation
             585      formula -- Issuance of bonds.
             586          (1) Special service districts may:
             587          (a) issue bonds payable, in whole or in part, from federal mineral lease payments which
             588      are to be deposited into the Mineral Lease Account under Section 59-21-1 and distributed to
             589      special service districts under Subsection 59-21-2 (3)(h); or
             590          (b) pledge all or any part of the mineral lease payments referred to in Subsection (1)(a)
             591      as an additional source of payment for their general obligation bonds.
             592          (2) The proceeds of these bonds may be used:
             593          (a) to construct, repair, and maintain streets and roads;
             594          (b) to fund any reserves and costs incidental to the issuance of the bonds and pay any
             595      associated administrative costs; and
             596          (c) for capital projects of the special service district.
             597          (3) (a) The special service district board shall enact a resolution authorizing the
             598      issuance of bonds which, until the bonds have been paid in full:
             599          (i) shall be irrevocable; and
             600          (ii) may not be amended in any manner that would:
             601          (A) impair the rights of the bond holders; or
             602          (B) jeopardize the timely payment of principal or interest when due.
             603          (b) Notwithstanding any other provision of this chapter, the resolution may contain
             604      covenants with the bond holder regarding:
             605          (i) mineral lease payments, or their disposition;
             606          (ii) the issuance of future bonds; or
             607          (iii) other pertinent matters considered necessary by the [legislative] governing body
             608      to:
             609          (A) assure the marketability of the bonds; or
             610          (B) insure the enforcement, collection, and proper application of mineral lease
             611      payments.
             612          (4) (a) Except as provided in Subsection (4)(b), the state may not alter, impair, or limit
             613      the statutory appropriation formula provided in Subsection 59-21-2 (3)(h), in a manner that
             614      reduces the amounts to be distributed to the special service district until the bonds and the


             615      interest on the bonds are fully met and discharged. Each special service district may include
             616      this pledge and undertaking of the state in these bonds.
             617          (b) Nothing in this section:
             618          (i) may preclude the alteration, impairment, or limitation of these bonds if adequate
             619      provision is made by law for the protection of the bond holders; or
             620          (ii) shall be construed:
             621          (A) as a pledge guaranteeing the actual dollar amount ultimately received by individual
             622      special service districts;
             623          (B) to require the Department of Transportation to allocate the mineral lease payments
             624      in a manner contrary to the general allocation method described in Subsection 59-21-2 (3)(h); or
             625          (C) to limit the Department of Transportation in making rules or procedures allocating
             626      mineral lease payments pursuant to Subsection 59-21-2 (3)(h).
             627          (5) (a) The average annual installments of principal and interest on bonds to which
             628      mineral lease payments have been pledged as the sole source of payment may not at any one
             629      time exceed:
             630          (i) 80% of the total mineral lease payments received by the issuing entity during the
             631      fiscal year of the issuing entity immediately preceding the fiscal year in which the resolution
             632      authorizing the issuance of bonds is adopted; or
             633          (ii) if the bonds are issued during the first fiscal year the issuing entity is eligible to
             634      receive funds, 60% of the amount estimated by the Department of Transportation to be
             635      appropriated to the issuing entity in that fiscal year.
             636          (b) The Department of Transportation shall not be liable for any loss or damage
             637      resulting from reliance on the estimates.
             638          (6) The final maturity date of the bonds may not exceed 15 years from the date of their
             639      issuance.
             640          (7) Bonds may not be issued under this section after December 31, 2010.
             641          (8) Bonds which are payable solely from a special fund into which mineral lease
             642      payments are deposited constitute a borrowing based solely upon the credit of the mineral lease
             643      payments received or to be received by the special service district and do not constitute an
             644      indebtedness or pledge of the general credit of the special service district or the state.
             645          Section 16. Section 11-14-310 is amended to read:


             646           11-14-310. General obligation bonds -- Levy and collection of taxes.
             647          (1) Any bonds issued under this chapter in such manner that they are not payable solely
             648      from revenues other than those derived from ad valorem taxes are full general obligations of
             649      the local political subdivision, for the prompt and punctual payment of principal of and interest
             650      on which the full faith and credit of the local political subdivision are pledged, and the local
             651      political subdivision is hereby expressly required, regardless of any limitations which may
             652      otherwise exist on the amount of taxes which the local political subdivision may levy, to
             653      provide for the levy and collection annually of ad valorem taxes without limitation as to rate or
             654      amount on all taxable property in the local political subdivision fully sufficient for such
             655      purpose. If by law ad valorem taxes for the local political subdivision are levied by a board
             656      other than its [legislative] governing body, the taxes for which provision is herein made shall
             657      be levied by such other board and the local political subdivision shall be under the duty in due
             658      season in each year to provide such other board with all information necessary to the levy of
             659      taxes in the required amount. Such taxes shall be levied and collected by the same officers, at
             660      the same time and in the same manner as are other taxes levied for the local political
             661      subdivision.
             662          (2) If any local political subdivision shall neglect or fail for any reason to levy or
             663      collect or cause to be levied or collected sufficient taxes for the prompt and punctual payment
             664      of such principal and interest, any person in interest may enforce levy and collection thereof in
             665      any court having jurisdiction of the subject matter, and any suit, action or proceeding brought
             666      by such person in interest shall be a preferred cause and shall be heard and disposed of without
             667      delay. All provisions of the constitution and laws relating to the collection of county and
             668      municipal taxes and tax sales shall also apply to and regulate the collection of the taxes levied
             669      pursuant to this section, through the officer whose duty it is to collect the taxes and money due
             670      the local political subdivision.
             671          Section 17. Section 11-14-311 is amended to read:
             672           11-14-311. Bond anticipation notes.
             673          (1) [Whenever the legislative] (a) If the governing body considers it advisable and in
             674      the interests of the local political subdivision to anticipate the issuance of bonds to be issued
             675      under this chapter, the [legislative] governing body may, pursuant to appropriate resolution,
             676      issue bond anticipation notes.


             677          (b) Each resolution authorizing the issuance of bond anticipation notes shall:
             678          [(a)] (i) describe the bonds in anticipation of which the notes are to be issued; [and]
             679          [(b)] (ii) specify the principal amount of the notes and the maturity dates of the notes[.
             680      The resolution shall]; and
             681          (iii) specify either the rates of interest, if any, on the notes or [specify] the method by
             682      which interest on the notes may be determined while the notes are outstanding.
             683          (c) If the resolution specifies a method by which the interest rates on the notes may be
             684      determined, the resolution may specify the maximum rate of interest which the notes may bear.
             685          (2) Bond anticipation notes shall be issued and sold in a manner and at a price, either
             686      at, below, or above face value, as the [legislative] governing body determines by resolution.
             687      Interest on bond anticipation notes may be made payable semiannually, annually, or at
             688      maturity. Bond anticipation notes may be made redeemable prior to maturity at the option of
             689      the [legislative] governing body in the manner and upon the terms fixed by the resolution
             690      authorizing their issuance. Bond anticipation notes shall be executed and shall be in a form
             691      and have details and terms as provided in the authorizing resolution.
             692          (3) Contemporaneously with the issuance of the bonds in anticipation of which bond
             693      anticipation notes are issued, provision shall be made for the retirement of any outstanding
             694      bond anticipation notes.
             695          (4) Whenever the bonds in anticipation of which notes are issued are to be payable
             696      from ad valorem taxes and constitute full general obligations of the local political subdivision,
             697      the bond anticipation notes and the interest on them shall be secured by a pledge of the full
             698      faith and credit of the local political subdivision in the manner provided in Section 11-14-310
             699      and shall also be made payable from funds derived from the sale of the bonds in anticipation of
             700      which the notes are issued. Whenever the bonds in anticipation of which the notes are to be
             701      issued are to be payable solely from revenues derived from the operation of revenue-producing
             702      facilities, these bond anticipation notes and the interest on them shall be secured by a pledge of
             703      the income and revenues derived by the local political subdivision from the revenue-producing
             704      facilities and shall also be made payable from funds derived from the sale of the bonds in
             705      anticipation of which the notes are issued.
             706          (5) Bond anticipation notes issued under this section may be refunded by the issuance
             707      of other bond anticipation notes issued under this section.


             708          (6) Sections 11-14-304 , 11-14-305 , 11-14-315 , 11-14-316 , and 11-14-401 apply to all
             709      bond anticipation notes issued under this section.
             710          (7) Bonds are not considered to have been issued more than ten years after the date of
             711      the election authorizing the issuance of them, under Section 11-14-301 , if the issuance of these
             712      bonds has been anticipated under this section by bond anticipation notes issued prior to the
             713      expiration of this ten-year period.
             714          Section 18. Section 11-14-312 is amended to read:
             715           11-14-312. Prior bonds validated -- Exceptions.
             716          All bonds issued by any local political subdivision [prior to the effective date of this
             717      chapter] before May 1, 2006, and all proceedings had in the authorization and issuance of them
             718      are hereby validated, ratified, and confirmed; and all such bonds are declared to constitute
             719      legally binding obligations in accordance with their terms. Nothing in this section shall be
             720      construed to affect or validate any bonds, the legality of which is being contested [at the time
             721      this chapter takes effect] as of May 1, 2006.
             722          Section 19. Section 11-14-313 is amended to read:
             723           11-14-313. Issuance of negotiable notes or bonds authorized -- Limitation on
             724      amount of tax anticipation notes or bonds -- Procedure.
             725          (1) (a) For the purpose of meeting the current expenses of the local political
             726      subdivision and for any other purpose for which funds of the local political subdivision may be
             727      expended, [the legislative] a local political subdivision may, if authorized by a resolution of its
             728      governing body [may], borrow money by issuing its negotiable notes or bonds in an initial
             729      principal amount:
             730          (i) not in excess of 90% of the taxes and other revenues of the local political
             731      subdivision for the current fiscal year, [issuing therefor negotiable notes or bonds of the local
             732      political subdivision. In the event that such] if the notes or bonds are issued after the annual
             733      tax levy for taxes falling due during the fiscal year in which the notes or bonds are issued;
             734          (ii) not in excess of 75% of the taxes and other revenues of the local political
             735      subdivision for the preceding fiscal year, if the notes or bonds are issued prior to the annual tax
             736      levy for taxes falling due during the fiscal year in which [such indebtedness is contracted, the
             737      amount so] the bonds or notes are issued [shall not exceed 75% of the tax revenues and other
             738      revenues of the preceding year, and the]; or


             739          (iii) not in excess of 75% of the taxes and other revenues that the governing body of
             740      the local political subdivision estimates that the local political subdivision will receive for the
             741      current fiscal year, if the notes or bonds are issued within 24 months following the creation of
             742      the local political subdivision.
             743          (b) The proceeds of the notes or bonds shall be applied only in payment of current and
             744      necessary expenses and other purposes for which funds of the local political subdivision may
             745      be expended[, and there].
             746          (c) There shall be included in the annual levy a tax and there shall be provision made
             747      for the imposition and collection of sufficient revenues other than taxes sufficient to pay the
             748      [same] notes or bonds at maturity. [In the event that]
             749          (d) If the taxes and other revenues in any one year are insufficient through delinquency
             750      or uncollectibility of taxes or other cause to pay when due all the lawful debts of the local
             751      political subdivision which have been or may hereafter be contracted, the [legislative]
             752      governing body of the local political subdivision is authorized and directed to levy and collect
             753      in the next succeeding year a sufficient tax and to provide for the imposition and collection of
             754      sufficient revenues other than taxes to pay all of such lawfully contracted indebtedness, and
             755      may borrow as provided in this section in anticipation of such tax and other revenues to pay
             756      any such lawfully contracted indebtedness.
             757          (e) Each resolution authorizing the issuance of tax anticipation notes or bonds shall:
             758          [(a)] (i) describe the taxes or revenues in anticipation of which the notes or bonds are
             759      to be issued; and
             760          [(b)] (ii) specify the principal amount of the notes or bonds, [the] any interest rates, [if
             761      any, (]including a variable interest rate[)], the notes or bonds shall bear, and the maturity dates
             762      of the notes or bonds, which dates shall not extend beyond the last day of the issuing local
             763      political subdivision's fiscal year.
             764          (2) Tax anticipation notes or bonds shall be issued and sold in such manner and at such
             765      prices, [(]whether at, below, or above face value[)], as the [legislative] governing body shall by
             766      resolution determine. Tax anticipation notes or bonds shall be in bearer form, except that the
             767      [legislative] governing body may provide for the registration of the notes or bonds in the name
             768      of the owner, either as to principal alone, or as to principal and interest. Tax anticipation notes
             769      or bonds may be made redeemable prior to maturity at the option of the [legislative] governing


             770      body in the manner and upon the terms fixed by the resolution authorizing their issuance. Tax
             771      anticipation notes or bonds shall be executed and shall be in such form and have such details
             772      and terms as shall be provided in the authorizing resolution.
             773          (3) The provisions of Sections 11-14-303 , 11-14-304 , 11-14-305 , 11-14-313 ,
             774      11-14-315 , 11-14-316 , 11-14-401 , 11-14-403 , and 11-14-404 shall apply to all tax anticipation
             775      notes or bonds issued under this section. In applying these sections to tax anticipation notes,
             776      "bond" or "bonds" as used in these sections shall be deemed to include tax anticipation notes.
             777          Section 20. Section 11-14-314 is amended to read:
             778           11-14-314. Tax anticipation obligations validated.
             779          All obligations issued in anticipation of the collection of taxes and other revenues by
             780      any local political subdivision [prior to the effective date of this chapter] before May 1, 2006,
             781      and all proceedings had in the authorization and issuance of them are validated, ratified, and
             782      confirmed; and all these obligations are declared to constitute legally binding obligations in
             783      accordance with their terms. Nothing in this section shall be construed to affect or validate any
             784      of these obligations, the legality of which is being contested [at the time this chapter takes
             785      effect] as of May 1, 2006.
             786          Section 21. Section 11-14-315 is amended to read:
             787           11-14-315. Nature and validity of bonds issued -- Applicability of other statutory
             788      provisions -- Budget provision required -- Applicable procedures for issuance.
             789          Bonds issued under this chapter shall have all the qualities of negotiable paper, shall be
             790      incontestable in the hands of bona fide purchasers or holders for value and shall not be invalid
             791      for any irregularity or defect in the proceedings for their issuance and sale. This chapter is
             792      intended to afford an alternative method for the issuance of bonds by local political
             793      subdivisions and shall not be so construed as to deprive any local political subdivision of the
             794      right to issue its bonds under authority of any other statute, but nevertheless this chapter shall
             795      constitute full authority for the issue and sale of bonds by local political subdivisions. The
             796      provisions of Section 11-1-1 , Utah Code Annotated 1953, shall not be applicable to bonds
             797      issued under this chapter. Any local political subdivision subject to the provisions of any
             798      budget law shall in its annual budget make proper provision for the payment of principal and
             799      interest currently falling due on bonds issued hereunder, but no provision need be made in any
             800      such budget prior to the issuance of the bonds for the issuance thereof or for the expenditure of


             801      the proceeds thereof. No ordinance, resolution or proceeding in respect to the issuance of
             802      bonds hereunder shall be necessary except as herein specifically required, nor shall the
             803      publication of any resolution, proceeding or notice relating to the issuance of the bonds be
             804      necessary except as herein required. Any publication made hereunder may be made in any
             805      newspaper conforming to the terms hereof in which legal notices may be published under the
             806      laws of Utah, without regard to the designation thereof as the official journal or newspaper of
             807      the local political subdivision. No resolution adopted or proceeding taken hereunder shall be
             808      subject to referendum petition or to an election other than as herein required. All proceedings
             809      adopted hereunder may be adopted on a single reading at any legally convened meeting of the
             810      [legislative] governing body.
             811          Section 22. Section 11-14-316 is amended to read:
             812           11-14-316. Publication of notice, resolution, or other proceeding -- Contest.
             813          (1) The [legislative] governing body of any local political subdivision may provide for
             814      the publication of any resolution or other proceeding adopted under this chapter in a newspaper
             815      having general circulation in the local political subdivision.
             816          (2) When publication involves a resolution or other proceeding providing for the
             817      issuance of bonds, the [legislative] governing body may, in lieu of publishing the entire
             818      resolution or other proceeding, publish a notice of bonds to be issued, titled as such,
             819      containing:
             820          (a) the name of the issuer;
             821          (b) the purpose of the issue;
             822          (c) the type of bonds and the maximum principal amount which may be issued;
             823          (d) the maximum number of years over which the bonds may mature;
             824          (e) the maximum interest rate which the bonds may bear, if any;
             825          (f) the maximum discount from par, expressed as a percentage of principal amount, at
             826      which the bonds may be sold; and
             827          (g) the times and place where a copy of the resolution or other proceeding may be
             828      examined, which shall be:
             829          (i) at an office of the issuer;
             830          (ii) identified in the notice;
             831          (iii) during regular business hours of the issuer as described in the notice; and


             832          (iv) for a period of at least 30 days after the publication of the notice.
             833          (3) For a period of 30 days after the publication, any person in interest may contest:
             834          (a) the legality of such resolution or proceeding;
             835          (b) any bonds which may be authorized by such resolution or proceeding; or
             836          (c) any provisions made for the security and payment of the bonds.
             837          (4) A person shall contest the matters set forth in Subsection (3) by filing a verified
             838      written complaint in the district court of the county in which he resides within the 30-day
             839      period.
             840          (5) After the 30-day period, no person may contest the regularity, formality, or legality
             841      of the resolution or proceeding for any reason.
             842          Section 23. Section 11-14-317 is enacted to read:
             843          11-14-317. Bonds as legal investments -- Use as security for the faithful
             844      performance of acts.
             845          (1) All bonds issued under this chapter or other applicable law shall be legal
             846      investments for:
             847          (a) all trust funds, including those under the jurisdiction of the state;
             848          (b) the funds of all insurance companies, banks, and both commercial and savings and
             849      trust companies;
             850          (c) the state school funds; and
             851          (d) all sinking funds under the control of the state treasurer.
             852          (2) If funds may by law be invested in or loaned upon the security of bonds of a county,
             853      city, or school district, funds may be invested in or loaned upon the security of the bonds of any
             854      other local political subdivision.
             855          (3) If bonds of a county, city, or school district may by law be used as security for the
             856      faithful performance on execution of any court or private trust or any other act, the bonds of
             857      any other local political subdivision may be used in the same way.
             858          Section 24. Section 11-14-405 is amended to read:
             859           11-14-405. Validity of prior bond issues.
             860          All bonds issued by any local political subdivision [prior to the effective date of this
             861      chapter] before May 1, 2006, and all proceedings had in the authorization and issuance
             862      [thereof] of those bonds are hereby validated, ratified, and confirmed, and all [such] those


             863      bonds are declared to constitute legally binding obligations in accordance with their terms.
             864      Nothing in this section [shall] may be construed to affect or validate any bonds, the legality of
             865      which is being contested [at the time this chapter takes effect] as of May 1, 2006.
             866          Section 25. Section 11-14-406 is amended to read:
             867           11-14-406. Application of chapter.
             868          Sections 11-14-201 , 11-14-202 , 11-14-203 , 11-14-204 , 11-14-205 , and 11-14-207 shall
             869      apply to all bond elections held by any [city, town, county, school district, public transit
             870      district, improvement district under Title 17A, Chapter 2, Part 3, special service district
             871      operating under authority of the Utah Special Service District Act, water conservancy district,
             872      metropolitan water district] local political subdivision and, except as otherwise provided in
             873      Section 11-14-402 , by any other taxing district or governmental entity whether or not the bonds
             874      are issued under authority granted by this chapter.
             875          Section 26. Section 17A-2-103 is amended to read:
             876           17A-2-103. Conclusive presumption regarding creation and existence.
             877          Notwithstanding any other provision of law, an independent special district under this
             878      chapter [created on or after May 4, 1999] shall be conclusively presumed to have been lawfully
             879      created and existing if:
             880          (1) for two years following the district's creation:
             881          (a) the district has:
             882          (i) levied and collected a tax; or
             883          (ii) collected a fee, charge, assessment, or tax increment for a commodity, service,
             884      facility, or improvement provided by the district; and
             885          (b) no challenge has been filed in court to the existence or creation of the district; and
             886          (2) the district has complied with Subsections 17A-1-102 (1) and 17A-1-504 (1).
             887          Section 27. Section 17A-2-223 is amended to read:
             888           17A-2-223. Power of board to incur indebtedness.
             889          [The cemetery maintenance board or other officers of the district have no power to
             890      incur any debt or liability either by issuing bonds or otherwise in excess of the express
             891      provisions of this part and any debt or liability incurred in excess of these provisions is void;
             892      but for the purpose of organization or for]
             893          (1) For any of the purposes of this part and subject to Subsections (2) and (3), the


             894      [cemetery maintenance] board of trustees of a cemetery maintenance district may[, before
             895      making the tax levy in the first year after the organization,] incur an indebtedness not
             896      exceeding in the aggregate a sum equal to .0001 per dollar of taxable value of taxable property
             897      within the district.
             898          (2) A board of trustees of a cemetery maintenance district may not issue bonds of the
             899      district payable in whole or in part from property taxes unless the proposed bond issuance is
             900      approved by a majority of the district voters voting at an election held for that purpose as
             901      provided in Title 11, Chapter 14, Local Government Bonding Act.
             902          (3) The issuance of notes or bonds by the board of trustees of a cemetery maintenance
             903      district is governed by Title 11, Chapter 14, Local Government Bonding Act.
             904          Section 28. Section 17A-2-315 is amended to read:
             905           17A-2-315. Publication of resolution or proceeding -- Right to contest legality.
             906          The board of trustees may provide for the publication of any resolution or other
             907      proceeding adopted by the board in a newspaper published in or having general circulation in
             908      the district. For a period of 30 days after the date of [such] the publication, any person in
             909      interest [shall have the right to] may contest the legality of [such] the resolution or
             910      [proceedings or any bonds which may be authorized thereby or by the provisions made for the
             911      security and payment of any such bonds] proceeding, and after [such time] that 30-day period
             912      no one [shall have any cause of action to] may contest the regularity, formality, or legality
             913      [thereof] of the resolution or proceeding for any cause whatsoever.
             914          Section 29. Section 17A-2-317 is amended to read:
             915           17A-2-317. Ratification of districts created under prior laws -- Issuance of
             916      authorized bonds -- Amendatory proceedings.
             917          [Whenever any] (1) If a district has been [heretofore] created or purported to be created
             918      under [authority of] Chapter 25, Laws of Utah 1947, Chapter 24, Laws of Utah 1949, or [the
             919      act hereby amended and where proceedings have been adopted by the governing body of such
             920      district for the purpose of authorizing the bonds of such district, whether or not such bonds are
             921      payable from operating revenues or from taxes or both, and whether or not such bonds have
             922      been heretofore delivered] this part, all proceedings had in connection with the creation of
             923      [such] the district[,] and the organization of the district's governing body [thereof, and all
             924      proceedings had in connection with the authorization of such bonds, and, when duly delivered


             925      and paid for as required by such proceedings, the bonds themselves] are hereby validated,
             926      ratified, and declared to be binding and effective in accordance with their terms
             927      notwithstanding any failure to comply with any one or more pertinent statutory provisions and
             928      notwithstanding whether such proceedings have been continuously in effect from the date of
             929      their adoption to the date of the passage of this part.
             930          [As to each district coming within the purview of this section which has heretofore
             931      authorized bonds which have not yet been issued, the governing body of such district is hereby
             932      authorized and empowered to do all things necessary to the issuance of such bonds and to the
             933      performance and carrying out of the contracts of such district, and such things may be done and
             934      such bonds when issued shall benefit from the curative provisions of this section whether or
             935      not changes in the details of the bonds and in the proceedings authorizing the issuance thereof
             936      have been made since the original adoption thereof or may hereafter be made and without
             937      regard to the nature of such changes.]
             938          [Where any] (2) (a) If a district has been [originally initiated or] created under
             939      [authority of either] this part or Chapter 3, Part 2, County Improvement District Act, the
             940      governing authority of [such] the district may [proceed to] issue bonds and operate facilities
             941      under the authority of the law under which it was created or may, if in so doing provision is
             942      made for the payment in full of all expenses and obligations [heretofore] incurred by [such] the
             943      district for legal, engineering, fiscal agent's and other proper services, make such changes and
             944      amendments in the proceedings for the authorization of [such] the bonds as may be necessary
             945      to effect the authorization and issuance of [such] the bonds under [the provisions of] this part
             946      [as amended], and to that end, may increase or decrease the amount of bonds so authorized,
             947      may make such bonds payable in whole or in part from the operating revenues of the district or
             948      from taxes or both as [herein] provided in this part, and may make any other changes in [such]
             949      the proceedings it may [deem] consider to be in the best interests of the district.
             950          (b) If any such change has the effect of pledging or allocating to the payment of any
             951      such bond taxes to be levied by such district, such amendatory proceedings shall become
             952      effective only when there shall have been given notice of a public hearing by publishing notice
             953      once a week for three successive weeks in a newspaper of general circulation in each county
             954      that contains some or all of the district, and when the hearing has been held and appeals taken
             955      therefrom, if any, terminated. For the purpose of this section, the county legislative body under


             956      districts initiated or created under said Chapter 3, Part 2, County Improvement District Act,
             957      shall at its option, if it elects hereafter to proceed hereunder, exercise all duties and functions
             958      provided by this part to be exercised by the board of trustees of any district created hereunder
             959      or may cause an election to be held for the election of trustees in accordance with the
             960      provisions of this part.
             961          Section 30. Section 17A-2-423 is amended to read:
             962           17A-2-423. Resolution calling election for issuing general obligation and revenue
             963      bonds.
             964          (1) (a) [If under the foregoing provisions the board is authorized to call an election on
             965      the issuance of the bonds, the] The board [shall] of trustees of a county service area may adopt
             966      a resolution directing that an election be held in the county [or] service area[, as the case may
             967      be, for the purpose of determining] to determine whether bonds in the amount, for the purpose,
             968      and with the maximum maturity specified in the resolution, [shall] should be issued. [A
             969      proposition for issuing general obligation bonds and a proposition for issuing revenue bonds, or
             970      any combination thereof, may be submitted at the same election.]
             971          (b) An election is not required for the issuance of bonds payable solely from revenues
             972      derived from the county service area's commodities, services, or facilities.
             973          (2) (a) Adoption of the resolution calling the election, determination of voters'
             974      qualifications, notice and conduct of the election, and the canvass of election results shall be
             975      accomplished in the manner prescribed in Title 11, Chapter 14, Local Government Bonding
             976      Act. [The board, for]
             977          (b) For purposes of the election, the board of trustees may:
             978          (i) treat the entire district as a single precinct or divide the district into several
             979      precincts; and [it may]
             980          (ii) fix [such] the polling places as [it] the board considers appropriate.
             981          (3) (a) General obligation bonds of a county service area may not be issued if the
             982      amount of the bonds, when added to the then outstanding amount of general obligation bonds
             983      of the county service area, exceeds 12% of the fair market value, as defined in Section
             984      59-2-102 , of the taxable property in the county service area.
             985          (b) For purposes of this Subsection (3):
             986          (i) the fair market value of all taxable equivalent property, as defined in Section


             987      59-3-102 , shall be included as part of the fair market value of taxable property in the county
             988      service area; and
             989          (ii) the fair market value shall be computed from the taxable value shown on the
             990      assessment rolls of the county in which the county service area is located as last equalized prior
             991      to the issuance of the bonds and by converting the taxable value to fair market value, using the
             992      appropriate multiple based on the statutory assessment ratio provided by law.
             993          (c) Tax anticipation notes, bond anticipation notes, and other bonds of a county service
             994      area payable solely from revenues derived from the operation of the county service area's
             995      commodities, services, or facilities may not be included in the calculation of the limit on the
             996      amount of outstanding general obligation bonds under Subsection (3)(a).
             997          Section 31. Section 17A-2-424 is amended to read:
             998           17A-2-424. Issuance of bonds -- Bonds as general obligations -- Tax levy --
             999      Resolution for issuance and disposal of bonds -- Time for issuance of full amount.
             1000          (1) (a) If a majority of the qualified [electors] voters voting [thereon shall] at an
             1001      election held pursuant to a resolution of the board of trustees adopted under Section 17A-2-423
             1002      vote in favor of incurring the indebtedness as proposed, the board of trustees [shall] may
             1003      proceed to issue the bonds in the amount of money specified or [such] in a lesser amount as it
             1004      may determine. [The bonds shall be issued]
             1005          (b) (i) If the board of trustees issues bonds as provided in Subsection (1)(a), the board
             1006      shall issue the bonds for the purpose or purposes provided in the voted proposition, which may
             1007      be for the acquisition, construction, or installation of any facility or property, including water
             1008      and water rights, required or [deemed] considered necessary to supply any of the [extended]
             1009      services referred to in Section 17A-2-403 or any part or combination [thereof] of those
             1010      services, or for maintaining, repairing, improving, and extending the facility or property or
             1011      combination of facilities and property.
             1012          (ii) The proceeds of the bonds may also be used for the payment of all legal,
             1013      engineering, and fiscal agent expenses reasonably incurred in connection with the construction,
             1014      installation, improving, maintaining, repairing, and extending of the facilities or property and
             1015      with the authorization and issuance of the bonds.
             1016          (2) (a) Improvements in county service areas may be financed either entirely from ad
             1017      valorem taxes or entirely from revenue of all or part of the facilities and property of the service


             1018      area or in whole or in part from both ad valorem taxes and operating revenues.
             1019          (b) All bonds of the county service area [which] that are not payable solely from the
             1020      revenues of the county service area [or from taxes proportionately levied on property benefited
             1021      by the improvements] shall be the general obligations of the county service area, and the full
             1022      faith, credit, and resources of the county service area shall be pledged for the payment [thereof]
             1023      of the bonds. [Regardless of any limitations contained elsewhere in the laws of Utah and this
             1024      part, including Section 17A-2-414 , it shall be the duty of the]
             1025          (c) (i) Notwithstanding any other provision of law, the board of trustees [to] shall cause
             1026      taxes to be levied annually on all taxable property in the county service area in the manner
             1027      provided in Section 17A-2-414 but without regard to the limitation on rate [therein] set forth[,
             1028      which will] in that section.
             1029          (ii) The taxes levied as provided in Subsection (2)(c)(i) shall be fully sufficient: [(a)]
             1030          (A) to pay the interest on [such indebtedness] the bonds as it falls due; and [(b)]
             1031          (B) to constitute a sinking fund for the payment of the principal [thereof] on the bonds
             1032      within the time for which [such] the bonds are issued.
             1033          [(3) The board of trustees shall provide by resolution for the issuance and disposal of
             1034      the bonds. The bonds may bear interest at such rate or rates and may be sold at public or
             1035      private sale, in such manner, and at such prices, either at, in excess of, or below the face value
             1036      thereof as may be provided in the resolution. The bonds may be made redeemable in advance
             1037      of maturity at such times and with such premium and may be issued for such period not
             1038      exceeding 40 years as may be provided in the resolution. The bonds may be either serial or
             1039      term bonds and may be in registered or coupon form.]
             1040          [(4) If the board of trustees does not issue the full amount of the bonds stated in the
             1041      proposition approved by the electors, all or any part of the remainder so authorized may be
             1042      issued at any time not later than three years after the date of the election at which the
             1043      proposition was approved.]
             1044          (3) If the board of trustees of a county service area issues bonds approved at an election
             1045      held pursuant to a resolution adopted under Section 17A-2-423 , the board shall issue the bonds
             1046      as provided in Title 11, Chapter 14, Local Government Bonding Act.
             1047          Section 32. Section 17A-2-426 is amended to read:
             1048           17A-2-426. Refunding bonds.


             1049          [Any bonds] Bonds issued by [any] a county service area may be refunded [pursuant to
             1050      resolutions adopted by the board of trustees in the manner provided by this part for the issuance
             1051      of other bonds except that no hearing or election need be held in order to issue refunding
             1052      bonds. Refunding bonds so issued may be secured in the manner and may be made payable
             1053      from those sources as may be provided in the resolution authorizing their issuance except that
             1054      bonds payable solely from the revenues of the service area may not be refunded into bonds
             1055      payable in whole or in part from taxes. Refunding bonds so issued may be sold at public or
             1056      private sale or may be exchanged for the bonds to be refunded. If sold, the proceeds of the sale
             1057      may be escrowed for the payment of the bonds to be refunded in such manner as may be
             1058      authorized in the resolution authorizing the refunding bonds. No bonds may be refunded
             1059      unless they either mature or are callable for redemption under their terms within 12 months
             1060      from the date of issuance of the refunding bonds, or unless the holders of said bonds
             1061      voluntarily surrender them for exchange or payment] as provided in Title 11, Chapter 27, Utah
             1062      Refunding Bond Act.
             1063          Section 33. Section 17A-2-428 is amended to read:
             1064           17A-2-428. Tax anticipation notes.
             1065          (1) The board of trustees of a county service area may issue notes in anticipation of the
             1066      receipt of taxes levied and revenues to be collected under this part. [The amount of notes so
             1067      issued shall not exceed 75% of the tax revenues and other revenues of the preceding year, and
             1068      the proceeds shall be applied only to pay current and necessary expenses and for other purposes
             1069      for which funds for the service area may be expended, and there shall be included in the annual
             1070      levy a tax in connection with which provision is made for the imposition and collection of
             1071      sufficient revenues.]
             1072          [(2) Each resolution authorizing the issuance of tax anticipation notes shall:]
             1073          [(a) describe the taxes or revenues in anticipation of which the notes are to be issued;
             1074      and]
             1075          [(b) specify the principal amount of the notes, their rate of interest, which may be
             1076      variable, and their maturity date, which shall not extend beyond the last day of the fiscal year of
             1077      the issuing service area.]
             1078          [(3) Tax anticipation notes shall be issued and sold in such manner and at such price
             1079      (whether at, below, or above face value), as the board of trustees shall by resolution determine.


             1080      Tax anticipation notes shall be in bearer form, except that the board of trustees may provide for
             1081      the registration of the notes in the name of the owner, either as to principal alone, or as to
             1082      principal and interest. Tax anticipation notes may be made redeemable prior to maturity at the
             1083      option of the board of trustees in the manner and upon the terms fixed by the resolution
             1084      authorizing their issuance. Tax anticipation notes shall be executed and shall be in such form
             1085      and have such details and terms as shall be provided for in the authorizing resolution.]
             1086          [(4) The provisions of Sections 11-14-303 , 11-14-304 , 11-14-305 , 11-14-313 ,
             1087      11-14-315 , 11-14-316 , 11-14-401 , 11-14-403 , and 11-14-404 shall apply to all tax anticipation
             1088      notes issued under this section. In applying these sections to tax anticipation notes, "bond" or
             1089      "bonds" as used in these sections shall be deemed to include tax anticipation notes.]
             1090          (2) Notes issued under Subsection (1) shall be issued as provided in Title 11, Chapter
             1091      14, Local Government Bonding Act.
             1092          Section 34. Section 17A-2-429 is repealed and reenacted to read:
             1093          17A-2-429. Property and bonds exempt from taxation except corporate franchise
             1094      tax and inheritance taxes.
             1095          Property owned by a county service area is exempt from any general ad valorem tax.
             1096          Section 35. Section 17A-2-431 is amended to read:
             1097           17A-2-431. Publication of resolutions or other proceedings adopted by board --
             1098      Time limit for contesting legality.
             1099          (1) The board of trustees may provide for the publication once of any resolution or
             1100      other proceeding adopted by the board in a newspaper of general circulation in the service area.
             1101          (2) (a) For a period of 30 days after the date of publication, any person in interest [shall
             1102      have the right to] may contest the legality of the resolution or proceeding [or any bonds which
             1103      may be authorized thereby] by a proper proceeding in the district court of the county in which
             1104      the service area is located [and after such time no one shall have any cause of action to].
             1105          (b) After that 30-day period, no one may contest the regularity, formality, or legality of
             1106      any resolution or proceeding for any cause whatsoever.
             1107          Section 36. Section 17A-2-543 is amended to read:
             1108           17A-2-543. Contractual powers -- Bond issues -- Elections -- Limitations -- Uses.
             1109          [Whenever the] (1) The board of trustees [considers it expedient it shall have power]
             1110      may, for the purpose of constructing drains, drainage canals, and other required improvements


             1111      necessary to drain lands in the district or conserve the public health or welfare, [to] make a
             1112      contract or contracts with the United States providing for the repayment of the principal and
             1113      such other sums due [thereunder] under the contract at such times as may be agreed upon, or to
             1114      issue bonds of the district [to run not less than five years nor more than 40 years, and to bear
             1115      interest, payable semiannually, at a rate not exceeding 8% per annum to be called "drainage
             1116      district bonds," which bonds shall not be sold for less than 90% of their par value, and the
             1117      proceeds of which] as provided in Title 11, Chapter 14, Local Government Bonding Act.
             1118          (2) The proceeds of any bonds issued as provided in Subsection (1) shall be used for no
             1119      other purpose than paying the cost of constructing [such] drains, drainage canals, or other like
             1120      work considered necessary to drain lands within the district, or conserve the public health or
             1121      welfare.
             1122          (3) Before [such] a contract [or contracts shall] may be made or bonds [shall] may be
             1123      issued, [the board of trustees shall request the county legislative body to order, and the county
             1124      legislative body shall at once order a special election on the question of the issuance of bonds.
             1125      The persons authorized to vote in, the giving of notice, the forms of ballots, and the manner of
             1126      holding the election, and canvassing the results of the] as provided in Subsection (1), an
             1127      election[,] on the proposed contract or bond issuance shall be held as provided in Title 11,
             1128      Chapter 14, Local Government Bonding Act. [The expenses of such election shall be paid out
             1129      of the funds belonging to the drainage district. The terms and times of payment of the bonds so
             1130      issued shall be fixed by the board of trustees. The bonds shall be issued for the benefit of the
             1131      district authorizing the issue and shall bear the name and number of the district. The board of
             1132      trustees shall keep a record of the bonds issued and sold or otherwise disposed of, and such
             1133      record will also show the lands embraced in the district.] In no case shall the amount of bonds
             1134      exceed the benefits assessed. [Each bond issued shall show expressly upon its face that it is to
             1135      be paid by a tax assessed, levied, and collected on the lands within the drainage district. The
             1136      board of trustees shall, by resolution, provide for the issuance and disposal of such bonds and
             1137      for the payment of the interest thereon, the creation of a sinking fund for the ultimate
             1138      redemption thereof, and for the date and manner of the redemption of the bonds. The board of
             1139      trustees may sell or dispose of the bonds either at public or private sale. Before making any
             1140      such sale, either private or public, the board of trustees shall give due notice of their intention
             1141      to sell or dispose of the bonds, by publishing notice of sale at least once a week for four


             1142      consecutive weeks in some newspaper having general circulation in the state and in the county
             1143      where the district is situated, and by publishing in any other publication they consider
             1144      advisable. The notice shall state that sealed proposals will be received by the board of trustees
             1145      at their office, for the purchase of the bonds, until the day and hour fixed by the board of
             1146      trustees. At the time appointed the board of trustees shall open the proposals, and award the
             1147      purchase of the bonds to the highest responsible bidder, or may reject all bids. In case no bid is
             1148      made and accepted as above provided, the board of trustees is hereby authorized to use the
             1149      bonds for the construction of any ditches, drain or drains, drainage canal or drainage canals, or
             1150      any other required improvement considered necessary to drain lands or for the public health or
             1151      welfare.]
             1152          Section 37. Section 17A-2-908 is amended to read:
             1153           17A-2-908. Powers of board of trustees.
             1154          (1) The board of trustees may:
             1155          [(1)] (a) take all necessary and proper steps for the extermination of mosquitoes, flies,
             1156      crickets, grasshoppers, and other insects within the district and to abate as nuisances all
             1157      stagnant pools of water and other breeding places for mosquitoes, flies, crickets, grasshoppers,
             1158      or other insects anywhere in the state situated so that mosquitoes therefrom may migrate into
             1159      the district;
             1160          [(2)] (b) enter upon territory referred to in Subsection (1)(a) to inspect and examine the
             1161      same, and remove therefrom without notice, stagnant water or other breeding places for
             1162      mosquitoes, flies, crickets, grasshoppers, or other insects;
             1163          [(3)] (c) purchase such supplies and materials and employ labor necessary or proper in
             1164      furtherance of the purposes of this part, and if necessary or proper, build, construct, repair, and
             1165      maintain necessary levees, cuts, canals, or channels upon any land within the district, and
             1166      acquire by purchase, condemnation, or other lawful means in the name of the district any
             1167      necessary lands, rights-of-way, easements, property, or materials requisite or necessary for any
             1168      of such purposes; and
             1169          [(4)] (d) make contracts to indemnify or compensate any owner of land or other
             1170      property for any injury or damage necessarily caused by the exercise of its powers or arising
             1171      out of the use, taking, or damage of property for any such purposes and generally to do any and
             1172      all things necessary or incident to its powers and to carry out the purposes of this part.


             1173          (2) (a) For any of the purposes of this part and subject to Subsections (2)(b) and (c), the
             1174      board of trustees may incur indebtedness not exceeding in the aggregate a sum equal to .0001
             1175      per dollar of taxable value of taxable property in the district.
             1176          (b) A board of trustees may not issue bonds of the district payable in whole or in part
             1177      from property taxes unless the proposed bond issuance is approved by a majority of the district
             1178      voters voting at an election held for that purpose as provided in Title 11, Chapter 14, Local
             1179      Government Bonding Act.
             1180          (c) The issuance of notes or bonds by the board of trustees is governed by Title 11,
             1181      Chapter 14, Local Government Bonding Act.
             1182          Section 38. Section 17A-2-1326 is amended to read:
             1183           17A-2-1326. Administrative control board -- Powers -- Compensation.
             1184          (1) (a) The legislative body of a municipality or county that has established a special
             1185      service district may, by resolution adopted at the time of the establishment or at any time
             1186      afterwards, create an administrative control board for the special service district.
             1187          (b) (i) Except as provided in Subsection (1)(f), each administrative control board shall
             1188      consist of at least three and no more than seven persons.
             1189          (ii) (A) If a county establishes a service district that includes all or part of one or more
             1190      municipalities or one or more improvement districts organized under Title 17A, Chapter 2, Part
             1191      3, County Improvement Districts for Water, Sewerage, Flood Control, Electric and Gas, to
             1192      provide the same service as the service district, the municipality or improvement district may
             1193      appoint one member to represent it on any administrative control board created.
             1194          (B) A member appointed under Subsection (1)(b)(ii)(A) may, but need not, be a
             1195      qualified elector of the service district.
             1196          (c) (i) If a service district is providing commodities, services, or facilities to an
             1197      institution of higher education, that institution may appoint the number of members necessary
             1198      to assure that it has at least 1/3 of the total of the board members to represent it on the board.
             1199          (ii) Members appointed under Subsection (1)(c)(i) may, but need not, be qualified
             1200      electors of the service district.
             1201          (d) The number of members of the administrative control board shall be increased by
             1202      the number of improvement district, municipal, or institution of higher education members
             1203      appointed.


             1204          (e) (i) Except as provided in Subsections (1)(b)(ii)(B), (c)(ii), and (e)(ii), each member
             1205      of an administrative control board shall be a qualified elector of the service district.
             1206          (ii) A member of an administrative control board may be other than a qualified elector
             1207      of the service district if at least 90% of the owners of property located within the service
             1208      district are not qualified electors of the service district.
             1209          (f) Notwithstanding Subsection (1)(b), each administrative control board of a special
             1210      service district that provides jail services as provided in Subsection 17A-2-1304 (1)(a)(x) shall
             1211      consist of nine members, three of whom shall be selected from a list of at least six
             1212      recommendations from the county sheriff, three of whom shall be selected from a list of at least
             1213      six recommendations from the municipalities within the county, and three of whom shall be
             1214      selected from a list of at least six recommendations from the county executive.
             1215          (2) Members of the administrative control board other than improvement district,
             1216      municipal, or institution of higher education members shall be either appointed or elected as
             1217      provided in Title 17A, Chapter 1, Part 3, Special District Board Selection Procedures.
             1218          (3) (a) If a service district was established to provide either water or sewerage service
             1219      or both, the governing authority may by resolution adopted at or after the time of establishment,
             1220      or if the service district was established before March 29, 1983, or within 90 days after that
             1221      date, create an administrative control board according to Subsection (1).
             1222          (b) A resolution creating a service district for water or sewerage purposes adopted
             1223      under Section 17A-2-1305 after March 29, 1983, shall identify all existing water and sewerage
             1224      districts within the area of the proposed service district.
             1225          (4) (a) One-half of the members initially elected or appointed shall serve two-year
             1226      terms and 1/2 shall serve four year terms.
             1227          (b) The initial terms shall be determined by lot.
             1228          (5) (a) The legislative body of the municipality or county that established the service
             1229      district may, by resolution, delegate any of its powers to the administrative control board,
             1230      including the power to act as the governing authority of the service district and to exercise all
             1231      or any of the powers provided for in Sections 17A-2-1314 , 17A-2-1316 , 17A-2-1320 , and
             1232      17A-2-1321 .
             1233          (b) Notwithstanding anything to the contrary in this part, the legislative body of the
             1234      municipality or county may not delegate the power to:


             1235          (i) levy a tax on the taxable property of the service district;
             1236          (ii) issue bonds payable from taxes;
             1237          (iii) call or hold an election for the authorization of the tax or bonds;
             1238          (iv) levy assessments [for improvements in an improvement district created under
             1239      Chapter 3, Part 3, Utah Municipal Improvement District Act, or Chapter 3, Part 2, County
             1240      Improvement District Act];
             1241          (v) issue interim warrants or bonds payable from those assessments; or
             1242          (vi) appoint a board of equalization under Section 17A-3-217 or Section 17A-3-317 .
             1243          [(c) The administrative control board may not hold an election, levy a tax or
             1244      assessment, or issue bonds or interim warrants unless the county or municipal legislative body
             1245      that created the district has approved.]
             1246          (6) The county or municipal legislative body that created the district may revoke in
             1247      whole or in part any power or authority delegated to an administrative control board or other
             1248      officers or employees.
             1249          (7) Administrative control board members may receive compensation and
             1250      reimbursement of expenses as provided in Section 17B-2-404 to the same extent as if they were
             1251      members of a board of trustees of a local district.
             1252          (8) If a county legislative body establishes an administrative control board under this
             1253      section for a special service district that provides jail service as provided in Subsection
             1254      17A-2-1304 (1)(a)(x), the administrative control board may review and approve any amount
             1255      charged to the special service district as reimbursement to the county for services provided
             1256      under Subsection 17A-2-1314 (1)(g) before the amount is included in the special service district
             1257      budget.
             1258          Section 39. Section 17A-2-1828 is amended to read:
             1259           17A-2-1828. Taxation of property and bonds.
             1260          [(1) A regional service area organized under this part is for the benefit of the people
             1261      residing within the regional service area, for the increase of their commerce and prosperity, and
             1262      for the improvement of their health and living conditions. The Legislature finds that a regional
             1263      service area performs essential government functions.]
             1264          [(2)] A general ad valorem or fee in lieu of taxes may not be levied upon any property
             1265      acquired or used by a regional service area.


             1266          [(3) The bonds issued in conjunction with any regional service area, their transfer, and
             1267      the income from them, shall at all times be free from taxation by the state, or any of its
             1268      subdivisions, except for the corporate franchise tax and inheritance taxes.]
             1269          Section 40. Section 17A-3-909 is amended to read:
             1270           17A-3-909. Bonds -- Terms and conditions.
             1271          (1) A building authority may issue and sell its bonds for the purpose of paying the costs
             1272      of acquiring, improving, or extending a project.
             1273          (2) Bonds shall be fully negotiable for all purposes, shall bear such date or dates, shall
             1274      be issued in such denominations and in such form, shall be serial bonds or term bonds, or both,
             1275      shall mature at such times not exceeding 40 years from date of issue, shall bear such interest
             1276      rate or rates, shall have such registration privileges, shall be executed in such manner, and shall
             1277      be payable at such places and in such medium of payment as shall be specified by the board of
             1278      trustees of the building authority in the proceedings authorizing the bonds.
             1279          (3) The board of trustees of the building authority may provide for an option to redeem
             1280      all or a part of the bonds issued prior to maturity upon terms established by it.
             1281          (4) The bonds shall be sold at public or private sale upon the terms, in the manner and
             1282      at such prices, either at, in excess of, or below their face value, as determined by the board of
             1283      trustees of the building authority.
             1284          (5) Bonds may be issued in one or more series.
             1285          (6) Bonds may not mature over a longer period than the estimated useful life of the
             1286      project to finance which the bonds are issued.
             1287          (7) No person executing any bond or leasing contract under this part shall be subject to
             1288      personal liability or accountability by reason of this.
             1289          (8) Bonds shall be authorized, executed, and issued in accordance with this part and the
             1290      articles of incorporation and the bylaws of the building authority.
             1291          (9) No bonds may be issued by a building authority unless the issuance of the bonds
             1292      and the terms of the bonds have been approved by the governing body of the public body.
             1293          (10) (a) As used in this Subsection (10), "active" means, with reference to a voter, that
             1294      the voter has voted in both of the two immediately preceding regular general elections.
             1295          [(10) (a)] (b) Before issuing any bonds, the authority board shall give public notice of
             1296      its intent to issue bonds.


             1297          [(b) The board shall submit the question of whether or not to issue any bond to the
             1298      voters for their approval or rejection if, within 30 calendar days of the notice,]
             1299          (c) If a written petition requesting an election and signed by at least 20% of the active
             1300      registered voters in the public body is filed with the authority board[.] within 30 calendar days
             1301      after notice under Subsection (10)(b) is given, the board shall, if it intends to pursue issuance of
             1302      the bonds, submit the question of whether or not to issue the bonds to the voters.
             1303          (d) Each election under Subsection (10)(c) shall be held as provided in Title 11,
             1304      Chapter 14, Local Government Bonding Act, for general obligation bonds of the public body
             1305      that created the building authority.
             1306          Section 41. Repealer.
             1307          This bill repeals:
             1308          Section 17A-2-311, Recital in bonds -- Incontestability.
             1309          Section 17A-2-314, Refunding bonds -- Escrow of proceeds of sale.
             1310          Section 17A-2-316, Bonds to be legal investments -- Use as security for faithful
             1311      performance of acts.
             1312          Section 17A-2-321, Validation of creation, organization, bond proceedings and
             1313      bonds.
             1314          Section 17A-2-324, Validation of bonds.
             1315          Section 17A-2-330, Validating provisions.
             1316          Section 17A-2-421, Power to incur countywide indebtedness -- Limitation --
             1317      Submission to electors.
             1318          Section 17A-2-422, Proposal to incur indebtedness -- Resolution -- Notice --
             1319      Hearing -- Calling of bond election -- Written protests.
             1320          Section 17A-2-427, Recital in bonds as to authority for issuance -- Effect.
             1321          Section 17A-2-547, Refunding bonds -- Time limit.
             1322          Section 17A-2-558, Bonds to be canceled.
             1323          Section 17A-2-825, Validity of signatures and facsimile signatures.
             1324          Section 17A-2-832, Bonds as legal investment for trust and institutional funds.
             1325          Section 17A-2-1825, Recital in bonds -- Effect.
             1326          Section 17A-2-1827, Bonds -- Legal investments -- Use as security.


[Bill Documents][Bills Directory]