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             1     

INCORPORATION OF A TOWN AMENDMENTS

             2     
2007 GENERAL SESSION

             3     
STATE OF UTAH

             4     
Chief Sponsor: Melvin R. Brown

             5     
Senate Sponsor: Sheldon L. Killpack

             6     
             7      LONG TITLE
             8      General Description:
             9          This bill modifies a provision relating to the incorporation of a town.
             10      Highlighted Provisions:
             11          This bill:
             12          .    modifies the requirements applicable to a petition for incorporation as a town;
             13          .    requires each county that receives a petition representing 1/2 or less of the property
             14      value in the area proposed to be incorporated as a town to commission and pay for a
             15      feasibility study;
             16          .    with respect to a petition representing 1/2 or less of the property value in the area
             17      proposed to be incorporated, authorizes a county to grant the petition, deny the
             18      petition, or, with the consent of the petition sponsors, grant the petition with
             19      conditions or alterations;
             20          .    requires counties of the second, third, fourth, fifth, or sixth class to grant a petition
             21      that represents over 1/2 of the property value in the area proposed to be incorporated
             22      as a town;
             23          .    modifies the process of appointing the mayor and council members in a newly
             24      incorporated town to require the officials to be selected from a list provided by
             25      petition sponsors; and
             26          .    requires a newly incorporated town to operate under a six-member council form of
             27      government.
             28      Monies Appropriated in this Bill:
             29          None


             30      Other Special Clauses:
             31          None
             32      Utah Code Sections Affected:
             33      AMENDS:
             34          10-2-125, as last amended by Chapter 233, Laws of Utah 2005
             35          67-1a-6.5, as last amended by Chapter 359, Laws of Utah 2006
             36     
             37      Be it enacted by the Legislature of the state of Utah:
             38          Section 1. Section 10-2-125 is amended to read:
             39           10-2-125. Incorporation of a town.
             40          (1) As used in this section:
             41          (a) "Base petition" means a petition under this section proposing the incorporation of a
             42      town and signed by the owners of private real property that:
             43          (i) is located within the area proposed to be incorporated;
             44          (ii) covers at least a majority of the total private land area within the area proposed to
             45      be incorporated; and
             46          (iii) is equal in value to at least 1/3 but not more than 1/2 of the value of all private real
             47      property within the area proposed to be incorporated.
             48          (b) "Qualifying petition" means a petition under this section proposing the
             49      incorporation of a town and signed by the owners of private real property that:
             50          (i) is located within the area proposed to be incorporated;
             51          (ii) covers at least a majority of the total private land area within the area proposed to
             52      be incorporated; and
             53          (iii) is equal in value to more than 1/2 of the value of all private real property within
             54      the area proposed to be incorporated.
             55          [(1)] (2) (a) A contiguous area of a county not within a municipality, with a population
             56      of at least 100 but less than 1,000, may incorporate as a town as provided in this section.
             57          (b) (i) The population figure under Subsection [(1)] (2)(a) shall be derived from the


             58      most recent official census or census estimate of the United States Bureau of the Census.
             59          (ii) If the population figure is not available from the United States Bureau of the
             60      Census, the population figure shall be derived from the estimate from the Utah Population
             61      Estimates Committee.
             62          [(2)] (3) (a) The process to incorporate an area as a town is initiated by filing a petition
             63      with the clerk of the county in which the area is located.
             64          (b) Each petition under Subsection [(2)] (3)(a) shall:
             65          (i) be signed by the owners of private real property that:
             66          (A) is located within the area proposed to be incorporated;
             67          (B) covers a majority of the total private land area within the area; and
             68          (C) is equal in value to at least 1/3 of the value of all private real property within the
             69      area;
             70          (ii) state the legal description of the boundaries of the area proposed to be incorporated
             71      as a town; [and]
             72          (iii) designate up to five signers of the petition as sponsors, one of whom shall be
             73      designated as the contact sponsor, with the mailing address of each owner signing as a sponsor;
             74          (iv) be accompanied by and circulated with an accurate map or plat, prepared by a
             75      licensed surveyor, showing the boundaries of the proposed town; and
             76          [(iii)] (v) substantially comply with and be circulated in the following form:
             77          PETITION FOR INCORPORATION OF (insert the proposed name of the proposed
             78      town)
             79          To the Honorable County Legislative Body of (insert the name of the county in which
             80      the proposed town is located) County, Utah:
             81          We, the undersigned owners of real property within the area described in this petition,
             82      respectfully petition the county legislative body [to examine the question of whether the area
             83      should incorporate] for the area described in this petition to be incorporated as a town. Each of
             84      the undersigned affirms that each has personally signed this petition and is an owner of real
             85      property within the described area, and that the current residence address of each is correctly


             86      written after the signer's name. The area proposed to be incorporated as a town is described as
             87      follows: (insert an accurate description of the area proposed to be incorporated).
             88          (c) A petition under this section may not describe an area that includes some or all of
             89      an area proposed for annexation in an annexation petition under Section 10-2-403 that:
             90          (i) was filed before the filing of the petition; and
             91          (ii) is still pending on the date the petition is filed.
             92          [(3)] (4) Section 10-2-104 applies to a petition for incorporation as a town in any
             93      county, except that the notice under Subsection 10-2-104 (1) shall be sent within seven calendar
             94      days [of] after the filing of a petition under Subsection [(2)] (3).
             95          [(4) (a) A county] (5) (a) (i) The legislative body [may treat a petition filed under
             96      Subsection (2) as a request for] of each county with which a base petition is filed under this
             97      section shall commission and pay for a feasibility study [under] as provided in Section
             98      10-2-103 [and process it as a request under that section would be processed under this part to
             99      determine whether the feasibility study results meet the requirements of Subsection
             100      10-2-109 (3)].
             101          (ii) If the results of the feasibility study under Subsection (5)(a)(i) meet the
             102      requirements of Subsection 10-2-109 (3), the county legislative body shall grant the petition.
             103          [(b)] (iii) If the results of [a] the feasibility study under Subsection [(4)(a)] (5)(a)(i) do
             104      not meet the requirements of Subsection 10-2-109 (3), the county legislative body may [not
             105      approve the incorporation petition.]:
             106          [(c) If the results of the feasibility study under Subsection (4)(a) meet the requirements
             107      of Subsection 10-2-109 (3), the county legislative body may approve the incorporation petition,
             108      if the county legislative body determines that the incorporation is in the best interests of the
             109      citizens of the county and the proposed town.]
             110          (A) deny the petition;
             111          (B) grant the petition; or
             112          (C) with the consent of the petition sponsors, grant the petition, after:
             113          (I) imposing conditions to mitigate the fiscal inequities identified in the feasibility


             114      study; or
             115          (II) altering the boundaries of the area proposed to be incorporated as a town to
             116      approximate the boundaries necessary to meet the requirements of Subsection 10-2-109 (3).
             117          (iv) Each town that incorporates pursuant to a petition granted after the county
             118      legislative body imposes conditions under Subsection (5)(a)(iii)(C)(I) shall comply with those
             119      conditions.
             120          (b) The legislative body of each county of the second, third, fourth, fifth, or sixth class
             121      with which a qualifying petition is filed shall grant the petition.
             122          [(5)] (6) (a) Upon [approval] the granting of a petition filed under [Subsection (2)] this
             123      section, the legislative body of the county in which the proposed town is located shall appoint a
             124      mayor and members of the town council [who] from a list of qualified individuals approved by
             125      the petition sponsors.
             126          (b) The officers appointed under Subsection (6)(a) shall hold office until the next
             127      regular municipal election and until their successors are elected and qualified.
             128          (7) Each newly incorporated town shall operate under the six-member council form of
             129      government as described in Section 10-3-101 .
             130          [(6)] (8) (a) Each mayor appointed under Subsection [(5)] (6) shall, within seven days
             131      of appointment, file articles of incorporation of the new town with the lieutenant governor.
             132          (b) The articles of incorporation shall meet the requirements of Subsection
             133      10-2-119 (2).
             134          [(7)] (9) A town is incorporated upon the lieutenant governor's issuance of a certificate
             135      of entity creation under Section 67-1a-6.5 .
             136          [(8)] (10) The legislative body of the new town shall comply with the notice
             137      requirements of Section 10-1-116 .
             138          Section 2. Section 67-1a-6.5 is amended to read:
             139           67-1a-6.5. Lieutenant governor certification of governmental entity creation,
             140      consolidation, division, dissolution, or boundary change.
             141          (1) As used in this section:


             142          (a) "AGRC" means the Automated Geographic Reference Center created under Section
             143      63F-1-506 .
             144          (b) "Boundary change" means the adjustment of an entity's boundary either through
             145      gaining territory (annexation), losing territory (withdrawal), adjusting the common boundary
             146      with an adjacent entity (may gain territory, lose territory, or a combination of both gaining and
             147      losing territory), or any other adjustment of the entity's boundary.
             148          (c) "Consolidation" means the combining of two or more entities into a single entity
             149      such that the consolidated entity's boundary contains all of the territory of the original entities,
             150      but no additional territory.
             151          (d) "County attorney" means the county attorney of each county which contains any
             152      part of the area affected by the entity creation, consolidation, division, dissolution, or boundary
             153      change.
             154          (e) (i) "County auditor" means the county auditor of each county which contains any
             155      part of the area affected by the entity creation, consolidation, division, dissolution, or boundary
             156      change.
             157          (ii) If the county does not have a county auditor, "county auditor" means the county
             158      clerk or other government official acting as the county auditor.
             159          (f) "County recorder" means the county recorder of each county which contains any
             160      part of the area affected by the entity creation, consolidation, division, dissolution, or boundary
             161      change.
             162          (g) "County surveyor" means the county surveyor of each county which contains any
             163      part of the area affected by the entity creation, consolidation, division, dissolution, or boundary
             164      change.
             165          (h) "Creation" means the forming of a new entity where that entity did not exist before
             166      its creation.
             167          (i) "Dissolution" means the disbandment of an entity.
             168          (j) "Division" means the dividing of one entity into two or more entities such that the
             169      original entity's boundary contains all of the territory of the resultant entities, but no additional


             170      territory.
             171          (k) "Entity" means the entity that is created, consolidated, divided, dissolved, or whose
             172      boundary is changed.
             173          (l) "Initiating body" means the county legislative body, municipal legislative body,
             174      special district board, local district board, court, public official, or other authorized person that
             175      initiates the creation, dissolution, consolidation, or boundary change of an entity or entities.
             176          (m) "Notice of entity boundary change" means the notice the lieutenant governor
             177      receives under Subsection 10-1-116 (1), 10-2-419 (4), 10-2-425 (1), 10-2-507 (1), 17-2-9 (2),
             178      17-2-13 (3), 17-50-104 (3), 17-50-105 (1)(b) or (2)(e), 17A-2-1327 (4), 17B-2-514 (2),
             179      17B-2-516 (6), 17B-2-610 (1), or 53A-2-101.5 (1) of an entity's pending boundary change.
             180          (n) "Notice of entity consolidation" means the notice the lieutenant governor receives
             181      under Section 10-2-610 or Subsection 10-1-116 (1) or 17-2-4 (2) of entities' pending
             182      consolidation.
             183          (o) "Notice of entity creation" means the notice the lieutenant governor receives under
             184      Subsection 10-1-116 (1), 10-2-119 (1), 10-2-125 [(6)](8), 11-13-204 (4), 11-13-205 (6),
             185      17A-2-1311 (2), 17B-2-215 (1), 17C-1-201 (2), or 53A-2-101.5 (1) of an entity's pending
             186      creation.
             187          (p) "Notice of entity dissolution" means the notice the lieutenant governor receives
             188      under Subsection 10-1-116 (1), 10-2-712 (2), 17A-2-1329 (3), 17B-2-708 (4), or 17C-1-701 (2)(a)
             189      of an entity's pending dissolution.
             190          (q) "Notice of entity division" means the notice the lieutenant governor receives under
             191      Subsection 17-3-3 (3) of an entity's pending division.
             192          (r) "Notice of intention to file articles of incorporation" means the notice the lieutenant
             193      governor receives under Subsection 10-2-120 (1).
             194          (s) "Lieutenant governor" means the lieutenant governor created in Article VII, Section
             195      1 of the Utah Constitution.
             196          (t) "State auditor" means the state auditor created in Article VII, Section 1 of the Utah
             197      Constitution.


             198          (u) "State Tax Commission" means the State Tax Commission created in Article XIII,
             199      Section 6 of the Utah Constitution.
             200          (2) Within ten days after receiving a notice of entity creation, the lieutenant governor
             201      shall:
             202          (a) issue a certificate of entity creation;
             203          (b) (i) send a copy of the certificate issued under Subsection (2)(a) and a copy of the
             204      notice of entity creation, including the accompanying map or legal description, to the State Tax
             205      Commission, AGRC, county recorder, county surveyor, county auditor, and county attorney;
             206      and
             207          (ii) send a copy of the certificate issued under Subsection (2)(a) to the state auditor;
             208      and
             209          (c) send to the initiating body a copy of the certificate issued under Subsection (2)(a)
             210      and a statement indicating completion of Subsection (2)(b).
             211          (3) Within ten days after receiving a notice of intention to file articles of incorporation,
             212      the lieutenant governor shall:
             213          (a) issue a certificate indicating receipt of a notice of intention to file articles of
             214      incorporation;
             215          (b) (i) send a copy of the certificate issued under Subsection (3)(a) and a copy of the
             216      notice of intention to file articles of incorporation, including the accompanying map or legal
             217      description, to the State Tax Commission, AGRC, county recorder, county surveyor, county
             218      auditor, and county attorney; and
             219          (ii) send a copy of the certificate issued under Subsection (3)(a) to the state auditor;
             220      and
             221          (c) send to the initiating body a copy of the certificate issued under Subsection (3)(a)
             222      and a statement indicating completion of Subsection (3)(b).
             223          (4) Within ten days after receiving a notice of entity consolidation, the lieutenant
             224      governor shall:
             225          (a) issue a certificate of entity consolidation;


             226          (b) (i) send a copy of the certificate issued under Subsection (4)(a) and a copy of the
             227      notice of entity consolidation to the State Tax Commission, AGRC, county recorder, county
             228      surveyor, county auditor, and county attorney; and
             229          (ii) send a copy of the certificate issued under Subsection (4)(a) to the state auditor;
             230      and
             231          (c) send to the initiating body and the entities being consolidated, if different from the
             232      initiating body, a copy of the certificate issued under Subsection (4)(a) and a statement
             233      indicating completion of Subsection (4)(b).
             234          (5) Within ten days after receiving a notice of entity division, the lieutenant governor
             235      shall:
             236          (a) issue a certificate of entity division;
             237          (b) (i) send a copy of the certificate issued under Subsection (5)(a) and a copy of the
             238      notice of entity consolidation, including the accompanying map or legal description, to the
             239      State Tax Commission, AGRC, county recorder, county surveyor, county auditor, and county
             240      attorney; and
             241          (ii) send a copy of the certificate issued under Subsection (5)(a) to the state auditor;
             242      and
             243          (c) send to the initiating body a copy of the certificate issued under Subsection (5)(a)
             244      and a statement indicating completion of Subsection (5)(b).
             245          (6) Within ten days after receiving a notice of entity dissolution, the lieutenant
             246      governor shall:
             247          (a) issue a certificate of entity dissolution;
             248          (b) (i) send a copy of the certificate issued under Subsection (6)(a) and a copy of the
             249      notice of entity dissolution to the State Tax Commission, AGRC, county recorder, county
             250      surveyor, county auditor, and county attorney; and
             251          (ii) send a copy of the certificate issued under Subsection (6)(a) to the state auditor;
             252      and
             253          (c) send to the initiating body and the entity being dissolved, if different than the


             254      initiating body, a copy of the certificate issued under Subsection (6)(a) and a statement
             255      indicating completion of Subsection (6)(b).
             256          (7) Within ten days after receiving a notice of entity boundary change, the lieutenant
             257      governor shall:
             258          (a) issue a certificate of entity boundary change;
             259          (b) send a copy of the certificate issued under Subsection (7)(a) and a copy of the
             260      notice of entity boundary change, including the accompanying map or legal description, to the
             261      State Tax Commission, AGRC, county recorder, county surveyor, county auditor, and county
             262      attorney; and
             263          (c) send to the initiating body or bodies, and each entity whose boundary is changed, if
             264      different than the initiating body, a copy of the certificate issued under Subsection (7)(a) and a
             265      statement indicating completion of Subsection (7)(b).
             266          (8) (a) The lieutenant governor shall keep, index, maintain, and make available to the
             267      public certificates, notices, maps, and other documents necessary in performing the duties of
             268      Subsections (2) through (7).
             269          (b) The lieutenant governor shall furnish a certified copy of documents to any person
             270      who requests a certified copy.
             271          (c) The lieutenant governor may charge a reasonable fee for copies of documents or
             272      certified copies of documents.


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