First Substitute H.B. 65

This document includes Senate 2nd Reading Floor Amendments incorporated into the bill on Mon, Feb 26, 2007 at 4:37 PM by rday. -->

Representative Brad L. Dee proposes the following substitute bill:

1 SPECIAL AND LOCAL DISTRICTS
2 AMENDMENTS
3 2007 GENERAL SESSION
4 STATE OF UTAH
5 Chief Sponsor: Brad L. Dee
6 Senate Sponsor: Carlene M. Walker
7
8 LONG TITLE
9 General Description:
10 This bill modifies provisions relating to special districts and local districts.
11 Highlighted Provisions:
12 This bill:
13 . substantially rewrites, reorganizes, and renumbers provisions related to independent
14 special districts and dependent special districts known as county improvement
15 districts and municipal improvement districts;
16 . consolidates and standardizes provisions relating to district authority, including
17 taxing, bonding, and eminent domain authority, district boards of trustees, actions
18 contesting a district resolution or other action, local district validation proceedings,
19 and other matters, and repeals redundant or inconsistent provisions;
20 . changes terminology applicable to entities previously known as independent special
21 districts, except special service districts, so that they will be known as local
22 districts;
23 . changes terminology applicable to what have previously been known as county
24 improvement districts and municipal improvement districts so that they will be
25 known as assessment areas;

26 . expands the entities that are authorized to designate assessment areas from counties
27 and municipalities to include local districts and special service districts;
28 . authorizes the creation of a new type of limited purposes local government entity
29 known as a basic local district and provides for its authority and the makeup of its
30 board of trustees;
31 . authorizes the creation of a local district by another local district whose boundaries
32 completely encompass the proposed local district if the proposed local district is
33 being created to provide one or more components of the same service that the
34 initiating local district is authorized to provide;
35 . extends eminent domain authority to cemetery maintenance districts and
36 standardizes language related to the eminent domain authority of all local districts
37 that have eminent domain authority;
38 . authorizes local districts to acquire, lease, or construct and operate electrical
39 generation, transmission, and distribution facilities if the facilities are to harness
40 energy that results inherently from the district's operations, the primary purpose of
41 the facilities is incidental to the district's primary operations, and the operation of
42 the facilities will not hinder or interfere with the district's primary operations;
43 . modifies the types of services that local districts may provide;
44 . eliminates a redundant provision regarding the circumstances under which a local
45 district is conclusively presumed to be incorporated;
46 . modifies a provision prohibiting board of trustees members from being employed by
47 the local district and provides an exception for remote districts;
48 . authorizes a local district's board of trustees to determine the district's fiscal year;
49 . authorizes local districts to combine a notice and hearing related to the district's
50 budget with the notice and hearing on a proposed fee increase;
51 . authorizes local districts to charge on a single bill for multiple commodities,
52 services, or facilities the district provides and to suspend furnishing the commodity,
53 service, or facility for a customer's failure to pay;
54 . authorizes local districts to certify delinquent fees or charges to the county treasurer
55 and so that they become a lien on the customer's property;
56 . increases the debt limit of a former regional service area from 5% to 12% of the

57 taxable value of taxable property in the service area;
58 . increases the debt limit of a cemetery maintenance district from .0001 to .004 of the
59 taxable value of taxable property in the district;
60 . increases the debt limit of a mosquito abatement district from .0001 to .0004 of the
61 taxable value of taxable property in the district;
62 . modifies the calculation of the debt limit of a drainage district from $1.50 per acre
63 to .002 of the taxable value of taxable property in the district;
64 . establishes a debt limit for basic local districts;
65 . modifies the basis for calculating the debt limit of some districts from taxable value
66 to fair market value;
67 . allows a municipality within an improvement district to elect not to appoint a
68 member to the board of trustees and participate instead in the election of board
69 members;
70 . provides an exception to a residency requirement for board of trustees members in a
71 district with a specified percentage of seasonally occupied homes;
72 . eliminates county legislative body approval as a requirement for a drainage district
73 to levy a property tax;
74 . expands the authority of drainage districts to incur debt and authorizes them to incur
75 long-term debt;
76 . modifies a provision relating to fire protection districts boards of trustees;
77 . authorizes mosquito abatement districts to establish a reserve fund for extraordinary
78 abatement measures;
79 . authorizes local districts to allow another political subdivision to use surplus
80 capacity or have an ownership interest in district facilities for monetary,
81 nonmonetary, or no consideration;
82 . authorizes local districts to allow another political subdivision or a public or private
83 property owner to use the surface of land on which the district has a right-of-way,
84 for monetary, nonmonetary, or no consideration;
85 . validates existing fire protection district boards of trustees;
86 . modifies provisions relating to the board of trustees of a metropolitan water district;
87 . modifies the area within which a mosquito abatement district may provide service;

88 . eliminates a public transit district provision relating to labor dispute arbitration;
89 . transforms a former regional service area into a service area and makes the former
90 regional service area subject to provisions applicable to service area;
91 . rewrites and modifies powers of water conservancy districts and other political
92 subdivisions to enter into agreements related to water and water works;
93 . rewrites and consolidates provisions relating to different classes of water
94 conservancy district assessments;
95 . authorizes a local government entity to finance operation and maintenance costs of
96 improvements through an assessment area;
97 . authorizes a local government entity to add additional property to a designated
98 assessment area under certain circumstances;
99 . authorizes a local government entity to issue bond anticipation notes with respect to
100 anticipated bonds secured by property in an assessment area;
101 . authorizes the levy of assessments in an assessment area by zones;
102 . modifies provisions related to a board of equalization with respect to assessments
103 levied in an assessment area;
104 . authorizes a local government entity to designate a trustee for purposes of
105 foreclosing a lien after a delinquency;
106 . modifies provisions relating to a guaranty fund and reserve fund for paying
107 obligations relating to an assessment area;
108 . allows property owners to waive requirements applicable to the designation of an
109 assessment area and the levying of an assessment in an assessment area; and
110 . makes technical and conforming changes.
111 Monies Appropriated in this Bill:
112 None
113 Other Special Clauses:
114 This bill coordinates with H.B. 103, Statewide Mutual Aid Act, by providing changes
115 in terminology.
116 This bill coordinates with H.B. 140, Safe Drinking Water Amendments, by providing
117 changes in terminology.
118 This bill coordinates with H.B. 222, Open and Public Meetings - Electronic Notice, by

119 providing changes in terminology.
120 This bill coordinates with H.B. 253, Allowing State Memorials on State Property, by
121 providing changes in terminology.
122 This bill coordinates with H.B. 272, Prohibition Relating to Fees on Foster Homes for
123 the Use of Emergency Services, by providing changes in terminology.
124 This bill coordinates with H.B. 337, Local Government Post-Employment Benefit Trust
125 Fund Amendments, by providing changes in terminology.
126 This bill coordinates with H.B. 372, Local District Amendments, by providing
127 substantive amendments.
128 This bill coordinates with H.B. 430, Public Employees Union Financial Responsibility
129 Act, by providing changes in terminology.
130 This bill coordinates with H.B. 450, Law Enforcement Districts, by providing changes
131 in terminolgy and substantive amendments.
132 This bill coordinates with S.B. 22, Sales and Use Tax Exemptions For Certain
133 Governmental Entities, and Entities Within the State Systems of Public and Higher
134 Education by providing technical changes.
135 This bill coordinates with S.B. 95, Permanent Instream Flow to Preserve Water Quality,
136 by providing changes in terminology and technical changes.
137 This bill coordinates with S.B. 98, Governmental Immunity for Trails, by providing
138 changes in terminology and substantive amendments.
139 This bill coordinates with S.B. 111, Free Exercise of Religion Without Government
140 Interference, by providing changes in terminology.
141 This bill coordinates with S.B. 172, Municipal Land Use, Development, and
142 Management Changes, by providing changes in terminology.
143 This bill coordinates with S.B. 232, Military Installation Development Authority, by
144 providing changes in terminology.
145 This bill provides revisor instructions.
146 Utah Code Sections Affected:
147 AMENDS:
148 8-5-5, as last amended by Chapter 123, Laws of Utah 2002
149 10-1-117, as last amended by Chapter 233, Laws of Utah 2005

150 10-2-101, as last amended by Chapter 3, Laws of Utah 1997, Second Special Session
151 10-2-106, as last amended by Chapter 105, Laws of Utah 1999
152 10-2-401, as last amended by Chapter 206, Laws of Utah 2001
153 10-2-403, as last amended by Chapter 259, Laws of Utah 2004
154 10-2-406, as last amended by Chapters 211 and 257, Laws of Utah 2003
155 10-2-412, as last amended by Chapter 206, Laws of Utah 2001
156 10-2-413, as last amended by Chapter 206, Laws of Utah 2001
157 10-2-414, as last amended by Chapter 211, Laws of Utah 2003
158 10-2-418, as last amended by Chapter 227, Laws of Utah 2003
159 10-2-419, as last amended by Chapter 233, Laws of Utah 2005
160 10-2-425, as last amended by Chapter 233, Laws of Utah 2005
161 10-2-428, as enacted by Chapter 227, Laws of Utah 2003
162 10-5-119, as last amended by Chapter 30, Laws of Utah 1992
163 10-6-131, as enacted by Chapter 26, Laws of Utah 1979
164 10-7-14.2, as last amended by Chapter 30, Laws of Utah 1992
165 10-9a-103, as last amended by Chapters 14, 163, 240, 257 and 289, Laws of Utah 2006
166 10-9a-305, as last amended by Chapter 364, Laws of Utah 2006
167 11-2-1, as last amended by Chapter 9, Laws of Utah 1980
168 11-13-103, as last amended by Chapter 21, Laws of Utah 2003
169 11-14-102, as last amended by Chapter 83, Laws of Utah 2006
170 11-14-301, as last amended by Chapter 83, Laws of Utah 2006
171 11-14a-1, as enacted by Chapter 266, Laws of Utah 1995
172 11-27-2, as last amended by Chapter 359, Laws of Utah 2006
173 11-30-2, as enacted by Chapter 197, Laws of Utah 1987
174 11-31-2, as last amended by Chapter 12, Laws of Utah 2001
175 11-34-1, as enacted by Chapter 200, Laws of Utah 1987
176 11-36-102, as last amended by Chapter 257, Laws of Utah 2006
177 11-36-201, as last amended by Chapter 240, Laws of Utah 2006
178 11-36-202, as last amended by Chapters 240 and 257, Laws of Utah 2006
179 11-36-501, as last amended by Chapter 71, Laws of Utah 2005
180 11-39-101, as last amended by Chapter 94, Laws of Utah 2004

181 11-39-103, as last amended by Chapter 94, Laws of Utah 2004
182 11-39-107, as last amended by Chapter 25, Laws of Utah 2005
183 11-40-101, as last amended by Chapter 90, Laws of Utah 2004
184 14-1-18, as last amended by Chapter 25, Laws of Utah 2005
185 15-7-2, as enacted by Chapter 62, Laws of Utah 1983
186 17-23-17, as last amended by Chapter 155, Laws of Utah 2004
187 17-27a-103, as last amended by Chapters 14, 163, 240, 257 and 289, Laws of Utah
188 2006
189 17-27a-305, as last amended by Chapter 364, Laws of Utah 2006
190 17-35b-302, as last amended by Chapter 133, Laws of Utah 2000
191 17-35b-303, as enacted by Chapter 369, Laws of Utah 1998
192 17-36-9, as last amended by Chapter 300, Laws of Utah 1999
193 17-36-29, as last amended by Chapter 212, Laws of Utah 1996
194 17-41-101, as last amended by Chapter 194, Laws of Utah 2006
195 17-43-201, as last amended by Chapters 2 and 71, Laws of Utah 2005
196 17-43-301, as last amended by Chapter 71, Laws of Utah 2005
197 17-50-103, as enacted by Chapter 185, Laws of Utah 2000
198 17-52-403, as last amended by Chapter 241, Laws of Utah 2001
199 17A-2-1314, as last amended by Chapter 259, Laws of Utah 2003
200 17A-2-1315, as last amended by Chapter 105, Laws of Utah 2005
201 17A-2-1326, as last amended by Chapter 83, Laws of Utah 2006
202 17A-2-1330, as renumbered and amended by Chapter 186, Laws of Utah 1990
203 17C-1-102, as last amended by Chapter 254 and renumbered and amended by Chapter
204 359, Laws of Utah 2006
205 19-3-301, as last amended by Chapter 148, Laws of Utah 2005
206 19-4-111, as last amended by Chapter 185, Laws of Utah 2003
207 19-6-502, as renumbered and amended by Chapter 112, Laws of Utah 1991
208 20A-1-102, as last amended by Chapters 16, 264 and 326, Laws of Utah 2006
209 20A-1-201.5, as last amended by Chapter 355, Laws of Utah 2006
210 20A-1-202, as last amended by Chapter 241, Laws of Utah 2000
211 20A-1-512, as last amended by Chapter 108, Laws of Utah 1994

212 20A-2-101, as last amended by Chapter 266, Laws of Utah 1998
213 20A-3-101, as last amended by Chapter 177, Laws of Utah 2002
214 20A-3-102, as enacted by Chapter 1, Laws of Utah 1993
215 20A-3-501, as last amended by Chapter 127, Laws of Utah 2003
216 20A-4-301, as last amended by Chapter 355, Laws of Utah 2006
217 20A-4-304, as last amended by Chapters 326 and 355, Laws of Utah 2006
218 20A-4-305, as last amended by Chapter 24, Laws of Utah 1997
219 20A-4-401, as last amended by Chapter 105, Laws of Utah 2005
220 20A-5-101, as last amended by Chapter 249, Laws of Utah 2003
221 20A-5-201, as last amended by Chapter 3, Laws of Utah 1996, Second Special Session
222 20A-5-302, as last amended by Chapter 5, Laws of Utah 2005, First Special Session
223 20A-5-400.5, as last amended by Chapter 105, Laws of Utah 2005
224 20A-5-401, as last amended by Chapters 264 and 326, Laws of Utah 2006
225 20A-5-403, as last amended by Chapter 326, Laws of Utah 2006
226 20A-5-407, as last amended by Chapter 21, Laws of Utah 1994
227 20A-5-602, as last amended by Chapter 40, Laws of Utah 1998
228 20A-9-101, as last amended by Chapter 24, Laws of Utah 1997
229 20A-9-503, as last amended by Chapter 45, Laws of Utah 1999
230 20A-11-1202, as last amended by Chapter 142, Laws of Utah 2004
231 26-8a-405.1, as last amended by Chapter 60, Laws of Utah 2006
232 32A-2-103, as last amended by Chapter 152, Laws of Utah 2005
233 32A-3-106, as last amended by Chapter 152, Laws of Utah 2005
234 32A-4-106, as last amended by Chapter 268, Laws of Utah 2004
235 32A-4-307, as last amended by Chapter 268, Laws of Utah 2004
236 32A-5-107, as last amended by Chapter 268, Laws of Utah 2004
237 34-30-14, as enacted by Chapter 72, Laws of Utah 1995
238 34-32-1.1, as last amended by Chapter 220, Laws of Utah 2004
239 34-41-101, as enacted by Chapter 18, Laws of Utah 1994
240 36-12-13, as last amended by Chapter 55, Laws of Utah 1998
241 49-11-102, as last amended by Chapter 116, Laws of Utah 2005
242 51-4-2, as last amended by Chapters 10 and 215, Laws of Utah 1997

243 52-4-203, as renumbered and amended by Chapter 14 and last amended by Chapters
244 263 and 265, Laws of Utah 2006
245 53-3-207, as last amended by Chapter 20, Laws of Utah 2005
246 53-7-104, as last amended by Chapter 25, Laws of Utah 2001
247 53-10-605, as last amended by Chapter 169, Laws of Utah 2005
248 53-13-103, as last amended by Chapter 347, Laws of Utah 2006
249 53A-2-123, as last amended by Chapter 169, Laws of Utah 2005
250 53B-16-104, as enacted by Chapter 21, Laws of Utah 2000
251 54-3-28, as last amended by Chapter 169, Laws of Utah 2005
252 54-8c-1, as last amended by Chapter 30, Laws of Utah 1992
253 54-14-103, as enacted by Chapter 197, Laws of Utah 1997
254 57-8-27, as last amended by Chapter 265, Laws of Utah 2003
255 59-2-102, as last amended by Chapters 223 and 249, Laws of Utah 2006
256 59-2-511, as last amended by Chapter 254, Laws of Utah 2005
257 59-2-912, as last amended by Chapter 227, Laws of Utah 1993
258 59-2-924, as last amended by Chapters 26, 105 and 359, Laws of Utah 2006
259 59-2-1101, as last amended by Chapter 19, Laws of Utah 2005
260 59-12-104, as last amended by Chapters 181, 182, 217, 218, 219, 220, 246, 268 and
261 346, Laws of Utah 2006
262 59-12-501, as last amended by Chapter 253, Laws of Utah 2006
263 59-12-502, as last amended by Chapters 253 and 329, Laws of Utah 2006
264 59-12-1001, as last amended by Chapter 253, Laws of Utah 2006
265 59-12-1502, as enacted by Chapter 282, Laws of Utah 2003
266 59-12-1503, as last amended by Chapter 253, Laws of Utah 2006
267 59-12-1703, as enacted by Chapter 1, Laws of Utah 2006, Fourth Special Session
268 63-2-103, as last amended by Chapters 2, 261 and 300, Laws of Utah 2006
269 63-6-1 (Effective 07/01/07), as last amended by Chapter 357, Laws of Utah 2006
270 63-30d-102, as enacted by Chapter 267, Laws of Utah 2004
271 63-30d-401, as enacted by Chapter 267, Laws of Utah 2004
272 63-38-3.3, as last amended by Chapter 66, Laws of Utah 2005
273 63-38d-102, as enacted by Chapter 16, Laws of Utah 2003

274 63-38d-601, as enacted by Chapter 298, Laws of Utah 2005
275 63-38f-2002, as enacted by Chapter 151, Laws of Utah 2005
276 63-51-2, as last amended by Chapter 12, Laws of Utah 1994
277 63-56-102, as renumbered and amended by Chapter 25, Laws of Utah 2005
278 63-56-201, as renumbered and amended by Chapter 25, Laws of Utah 2005
279 63-90a-1, as enacted by Chapter 91, Laws of Utah 1994
280 63-90b-102, as enacted by Chapter 99, Laws of Utah 2005
281 63-91-102, as last amended by Chapter 293, Laws of Utah 1996
282 63-93-102, as enacted by Chapter 256, Laws of Utah 1997
283 63-96-102, as enacted by Chapter 341, Laws of Utah 1998
284 63A-9-401, as last amended by Chapter 34, Laws of Utah 2004
285 63C-7-103, as enacted by Chapter 136, Laws of Utah 1997
286 63D-2-102, as enacted by Chapter 175, Laws of Utah 2004
287 63E-1-102, as last amended by Chapter 46, Laws of Utah 2006
288 63F-1-507, as last amended by Chapter 359, Laws of Utah 2006
289 67-1a-6.5, as last amended by Chapter 359, Laws of Utah 2006
290 67-3-1, as last amended by Chapter 71, Laws of Utah 2005
291 67-11-2, as last amended by Chapter 92, Laws of Utah 1987
292 67-21-2, as last amended by Chapter 189, Laws of Utah 1989
293 71-8-1, as last amended by Chapter 134, Laws of Utah 2000
294 71-10-1, as last amended by Chapter 134, Laws of Utah 2000
295 72-1-208, as renumbered and amended by Chapter 270, Laws of Utah 1998
296 72-1-303, as last amended by Chapter 336, Laws of Utah 2004
297 72-2-201, as renumbered and amended by Chapter 270, Laws of Utah 1998
298 72-10-601, as enacted by Chapter 137, Laws of Utah 2006
299 73-1-4, as last amended by Chapter 99, Laws of Utah 2003
300 73-2-1, as last amended by Chapter 165, Laws of Utah 2005
301 73-5-15, as enacted by Chapter 193, Laws of Utah 2006
302 73-10-1, as last amended by Chapter 10, Laws of Utah 1997
303 73-10-21, as last amended by Chapter 30, Laws of Utah 1992
304 73-10-32, as last amended by Chapter 43, Laws of Utah 2004

305 76-10-1503, as last amended by Chapter 151, Laws of Utah 1998
306 78-27-63, as last amended by Chapter 304, Laws of Utah 2006
307 ENACTS:
308 11-42-101, Utah Code Annotated 1953
309 11-42-102, Utah Code Annotated 1953
310 11-42-103, Utah Code Annotated 1953
311 11-42-104, Utah Code Annotated 1953
312 11-42-105, Utah Code Annotated 1953
313 11-42-106, Utah Code Annotated 1953
314 11-42-107, Utah Code Annotated 1953
315 11-42-108, Utah Code Annotated 1953
316 11-42-109, Utah Code Annotated 1953
317 11-42-201, Utah Code Annotated 1953
318 11-42-202, Utah Code Annotated 1953
319 11-42-203, Utah Code Annotated 1953
320 11-42-204, Utah Code Annotated 1953
321 11-42-205, Utah Code Annotated 1953
322 11-42-206, Utah Code Annotated 1953
323 11-42-207, Utah Code Annotated 1953
324 11-42-208, Utah Code Annotated 1953
325 11-42-301, Utah Code Annotated 1953
326 11-42-302, Utah Code Annotated 1953
327 11-42-401, Utah Code Annotated 1953
328 11-42-402, Utah Code Annotated 1953
329 11-42-403, Utah Code Annotated 1953
330 11-42-404, Utah Code Annotated 1953
331 11-42-405, Utah Code Annotated 1953
332 11-42-406, Utah Code Annotated 1953
333 11-42-407, Utah Code Annotated 1953
334 11-42-408, Utah Code Annotated 1953
335 11-42-409, Utah Code Annotated 1953

336 11-42-410, Utah Code Annotated 1953
337 11-42-411, Utah Code Annotated 1953
338 11-42-412, Utah Code Annotated 1953
339 11-42-413, Utah Code Annotated 1953
340 11-42-414, Utah Code Annotated 1953
341 11-42-415, Utah Code Annotated 1953
342 11-42-416, Utah Code Annotated 1953
343 11-42-501, Utah Code Annotated 1953
344 11-42-502, Utah Code Annotated 1953
345 11-42-503, Utah Code Annotated 1953
346 11-42-504, Utah Code Annotated 1953
347 11-42-505, Utah Code Annotated 1953
348 11-42-506, Utah Code Annotated 1953
349 11-42-601, Utah Code Annotated 1953
350 11-42-602, Utah Code Annotated 1953
351 11-42-603, Utah Code Annotated 1953
352 11-42-604, Utah Code Annotated 1953
353 11-42-605, Utah Code Annotated 1953
354 11-42-606, Utah Code Annotated 1953
355 11-42-607, Utah Code Annotated 1953
356 11-42-608, Utah Code Annotated 1953
357 11-42-609, Utah Code Annotated 1953
358 11-42-701, Utah Code Annotated 1953
359 11-42-702, Utah Code Annotated 1953
360 11-42-703, Utah Code Annotated 1953
361 11-42-704, Utah Code Annotated 1953
362 11-42-705, Utah Code Annotated 1953
363 11-42-706, Utah Code Annotated 1953
364 17B-1-101, Utah Code Annotated 1953
365 17B-1-103, Utah Code Annotated 1953
366 17B-1-112, Utah Code Annotated 1953

367 17B-1-114, Utah Code Annotated 1953
368 17B-1-115, Utah Code Annotated 1953
369 17B-1-116, Utah Code Annotated 1953
370 17B-1-117, Utah Code Annotated 1953
371 17B-1-308, Utah Code Annotated 1953
372 17B-1-313, Utah Code Annotated 1953
373 17B-1-501, Utah Code Annotated 1953
374 17B-1-623, Utah Code Annotated 1953
375 17B-1-901, Utah Code Annotated 1953
376 17B-1-1001, Utah Code Annotated 1953
377 17B-1-1002, Utah Code Annotated 1953
378 17B-1-1101, Utah Code Annotated 1953
379 17B-1-1102, Utah Code Annotated 1953
380 17B-1-1103, Utah Code Annotated 1953
381 17B-1-1104, Utah Code Annotated 1953
382 17B-1-1105, Utah Code Annotated 1953
383 17B-1-1106, Utah Code Annotated 1953
384 17B-1-1107, Utah Code Annotated 1953
385 17B-1-1201, Utah Code Annotated 1953
386 17B-1-1202, Utah Code Annotated 1953
387 17B-1-1203, Utah Code Annotated 1953
388 17B-1-1204, Utah Code Annotated 1953
389 17B-1-1205, Utah Code Annotated 1953
390 17B-1-1206, Utah Code Annotated 1953
391 17B-1-1207, Utah Code Annotated 1953
392