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S.B. 181

This document includes Senate Committee Amendments incorporated into the bill on Thu, Feb 21, 2013 at 9:33 AM by lpoole. -->             


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Senate Committee Amendments 2-21-2013 lp/va
1     
POLITICAL SUBDIVISIONS PROPERTY AMENDMENTS

             2     
2013 GENERAL SESSION

             3     
STATE OF UTAH

             4     
Chief Sponsor: Wayne A. Harper

             5     
House Sponsor: V. Lowry Snow

             6     

             7      LONG TITLE
             8      General Description:
             9          This bill enacts language prohibiting a political subdivision or educational entity from
             10      disposing of property unless the political subdivision or educational entity receives
             11      S. [ consideration in the form of ] .S fair market value for the property.
             12      Highlighted Provisions:
             13          This bill:
             14          .    defines terms;
             15          .    prohibits, with certain exceptions, a political subdivision or educational entity from
             16      disposing of property unless the political subdivision or educational entity receives
             17      S. [ consideration in the form of ] .S fair market value for the property; and
             18          .    makes technical corrections.
             19      Money Appropriated in this Bill:
             20          None
             21      Other Special Clauses:
             22          None
             23      Utah Code Sections Affected:
             24      AMENDS:
             25          10-8-2, as last amended by Laws of Utah 2010, Chapter 90
             26          17-50-302, as last amended by Laws of Utah 2010, Chapter 385
             27          17-50-312, as last amended by Laws of Utah 2007, Chapter 291



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             28
         17B-1-103, as last amended by Laws of Utah 2011, Chapters 68 and 272
             29          17B-1-301, as last amended by Laws of Utah 2011, Chapter 209
             30          17C-1-202, as renumbered and amended by Laws of Utah 2006, Chapter 359
             31          17C-1-207, as last amended by Laws of Utah 2012, Chapter 235
             32          17D-1-103, as enacted by Laws of Utah 2008, Chapter 360
             33      ENACTS:
             34          11-50-101, Utah Code Annotated 1953
             35          11-50-102, Utah Code Annotated 1953
             36          11-50-201, Utah Code Annotated 1953
             37     

             38      Be it enacted by the Legislature of the state of Utah:
             39          Section 1. Section 10-8-2 is amended to read:
             40           10-8-2. Appropriations -- Acquisition and disposal of property -- Municipal
             41      authority -- Corporate purpose -- Procedure -- Notice of intent to acquire real property.
             42          (1) (a) A municipal legislative body may:
             43          (i) appropriate money for corporate purposes only;
             44          (ii) provide for payment of debts and expenses of the corporation;
             45          (iii) subject to Subsections (4) and (5) and Title 11, Chapter 50, Part 2, Certain
             46      Prohibitions on Disposal of Political Subdivision Property, purchase, receive, hold, sell, lease,
             47      convey, and dispose of real and personal property for the benefit of the municipality, whether
             48      the property is within or without the municipality's corporate boundaries, if the action is in the
             49      public interest and complies with other law;
             50          (iv) improve, protect, and do any other thing in relation to this property that an
             51      individual could do; and
             52          (v) subject to Subsection (2) and after first holding a public hearing, authorize
             53      municipal services or other nonmonetary assistance to be provided to or waive fees required to
             54      be paid by a nonprofit entity, whether or not the municipality receives consideration in return.
             55          (b) A municipality may:
             56          (i) furnish all necessary local public services within the municipality;
             57          (ii) purchase, hire, construct, own, maintain and operate, or lease public utilities
             58      located and operating within and operated by the municipality; and



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             59
         (iii) subject to Subsection (1)(c), acquire by eminent domain, or otherwise, property
             60      located inside or outside the corporate limits of the municipality and necessary for any of the
             61      purposes stated in Subsections (1)(b)(i) and (ii), subject to restrictions imposed by Title 78B,
             62      Chapter 6, Part 5, Eminent Domain, and general law for the protection of other communities.
             63          (c) Each municipality that intends to acquire property by eminent domain under
             64      Subsection (1)(b) shall, upon the first contact with the owner of the property sought to be
             65      acquired, deliver to the owner a copy of a booklet or other materials provided by the Office of
             66      the Property Rights Ombudsman, created under Section 13-43-201 , dealing with the property
             67      owner's rights in an eminent domain proceeding.
             68          (d) Subsection (1)(b) may not be construed to diminish any other authority a
             69      municipality may claim to have under the law to acquire by eminent domain property located
             70      inside or outside the municipality.
             71          (2) (a) Services or assistance provided pursuant to Subsection (1)(a)(v) is not subject to
             72      the provisions of Subsection (3).
             73          (b) The total amount of services or other nonmonetary assistance provided or fees
             74      waived under Subsection (1)(a)(v) in any given fiscal year may not exceed 1% of the
             75      municipality's budget for that fiscal year.
             76          (3) It is considered a corporate purpose to appropriate money for any purpose that, in
             77      the judgment of the municipal legislative body, provides for the safety, health, prosperity,
             78      moral well-being, peace, order, comfort, or convenience of the inhabitants of the municipality
             79      subject to the following:
             80          (a) The net value received for any money appropriated shall be measured on a
             81      project-by-project basis over the life of the project.
             82          (b) The criteria for a determination under this Subsection (3) shall be established by the
             83      municipality's legislative body. A determination of value received, made by the municipality's
             84      legislative body, shall be presumed valid unless it can be shown that the determination was
             85      arbitrary, capricious, or illegal.
             86          (c) The municipality may consider intangible benefits received by the municipality in
             87      determining net value received.
             88          (d) (i) Prior to the municipal legislative body making any decision to appropriate any
             89      funds for a corporate purpose under this section, a public hearing shall be held.



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             90
         (ii) Notice of the hearing described in Subsection (3)(d)(i) shall be published:
             91          (A) (I) in a newspaper of general circulation at least 14 days before the date of the
             92      hearing; or
             93          (II) if there is no newspaper of general circulation, by posting notice in at least three
             94      conspicuous places within the municipality for the same time period; and
             95          (B) on the Utah Public Notice Website created in Section 63F-1-701 , at least 14 days
             96      before the date of the hearing.
             97          (e) A study shall be performed before notice of the public hearing is given and shall be
             98      made available at the municipality for review by interested parties at least 14 days immediately
             99      prior to the public hearing, setting forth an analysis and demonstrating the purpose for the
             100      appropriation. In making the study, the following factors shall be considered:
             101          (i) what identified benefit the municipality will receive in return for any money or
             102      resources appropriated;
             103          (ii) the municipality's purpose for the appropriation, including an analysis of the way
             104      the appropriation will be used to enhance the safety, health, prosperity, moral well-being,
             105      peace, order, comfort, or convenience of the inhabitants of the municipality; and
             106          (iii) whether the appropriation is necessary and appropriate to accomplish the
             107      reasonable goals and objectives of the municipality in the area of economic development, job
             108      creation, affordable housing, blight elimination, job preservation, the preservation of historic
             109      structures and property, and any other public purpose.
             110          (f) (i) An appeal may be taken from a final decision of the municipal legislative body,
             111      to make an appropriation.
             112          (ii) The appeal shall be filed within 30 days after the date of that decision, to the
             113      district court.
             114          (iii) Any appeal shall be based on the record of the proceedings before the legislative
             115      body.
             116          (iv) A decision of the municipal legislative body shall be presumed to be valid unless
             117      the appealing party shows that the decision was arbitrary, capricious, or illegal.
             118          (g) The provisions of this Subsection (3) apply only to those appropriations made after
             119      May 6, 2002.
             120          (h) This section applies only to appropriations not otherwise approved pursuant to Title



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             121
     10, Chapter 5, Uniform Fiscal Procedures Act for Utah Towns, or Title 10, Chapter 6, Uniform
             122      Fiscal Procedures Act for Utah Cities.
             123          (4) (a) Before a municipality may dispose of a significant parcel of real property, the
             124      municipality shall:
             125          (i) provide reasonable notice of the proposed disposition at least 14 days before the
             126      opportunity for public comment under Subsection (4)(a)(ii); and
             127          (ii) allow an opportunity for public comment on the proposed disposition.
             128          (b) Each municipality shall, by ordinance, define what constitutes:
             129          (i) a significant parcel of real property for purposes of Subsection (4)(a); and
             130          (ii) reasonable notice for purposes of Subsection (4)(a)(i).
             131          (5) (a) Except as provided in Subsection (5)(d), each municipality intending to acquire
             132      real property for the purpose of expanding the municipality's infrastructure or other facilities
             133      used for providing services that the municipality offers or intends to offer shall provide written
             134      notice, as provided in this Subsection (5), of its intent to acquire the property if:
             135          (i) the property is located:
             136          (A) outside the boundaries of the municipality; and
             137          (B) in a county of the first or second class; and
             138          (ii) the intended use of the property is contrary to:
             139          (A) the anticipated use of the property under the general plan of the county in whose
             140      unincorporated area or the municipality in whose boundaries the property is located; or
             141          (B) the property's current zoning designation.
             142          (b) Each notice under Subsection (5)(a) shall:
             143          (i) indicate that the municipality intends to acquire real property;
             144          (ii) identify the real property; and
             145          (iii) be sent to:
             146          (A) each county in whose unincorporated area and each municipality in whose
             147      boundaries the property is located; and
             148          (B) each affected entity.
             149          (c) A notice under this Subsection (5) is a protected record as provided in Subsection
             150      63G-2-305 (7).
             151          (d) (i) The notice requirement of Subsection (5)(a) does not apply if the municipality



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             152      previously provided notice under Section 10-9a-203 identifying the general location within the
             153      municipality or unincorporated part of the county where the property to be acquired is located.
             154          (ii) If a municipality is not required to comply with the notice requirement of
             155      Subsection (5)(a) because of application of Subsection (5)(d)(i), the municipality shall provide
             156      the notice specified in Subsection (5)(a) as soon as practicable after its acquisition of the real
             157      property.
             158          Section 2. Section 11-50-101 is enacted to read:
             159     
CHAPTER 50. PROPERTY OF POLITICAL SUBDIVISIONS

             160     
Part 1. General Provisions

             161          11-50-101. Title.
             162          This chapter is known as "Property of Political Subdivisions."
             163          Section 3. Section 11-50-102 is enacted to read:
             164          11-50-102. Definitions.
             165          (1) "Consideration" means something S. :
             165a              (a) .S of value given or done in exchange for
             166      something given or done by another, including money, a service, or labor S. [ . ] ; or
             166a              (b) provided in the public interest supporting health, safety, and welfare of the
             166b      citizens of a political subdivision. .S
             167          (2) "Educational entity" means S. [ :
             168          (a)
] .S
a school district or charter school S. [ ; and
             169          (b) an institution of higher education as described in Section 53B-2-101
] .S
.
             170          (3) "Fair market value" means the S. [ amount ] consideration .S at which property
             170a      would change hands
             171      between a willing buyer and a willing seller, neither being under any compulsion to buy or sell
             172      and both having reasonable knowledge of the relevant facts.
             173          (4) "Political subdivision" means:
             174          (a) a county;
             175          (b) a municipality;
             176          (c) a local district;
             177          (d) a special service district;
             178          (e) an entity created by an interlocal agreement adopted in accordance with Title 11,
             179      Chapter 13, Interlocal Cooperation Act; or
             180          (f) an agency as defined in Section 17C-1-102 .
             181          (5) "Property" means anything of value, whether real or personal, tangible or
             182      intangible, including:



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             183          (a) an interest in property;
             184          (b) a benefit, privilege, right, or other interest with respect to anything of value;
             185          (c) proprietary software;
             186          (d) a computer program that is developed or purchased by or for a political subdivision
             187      or educational entity for its own use; or
             188          (e) data collected or compiled by a political subdivision, whether stored electronically
             189      or otherwise.
             190          (6) "Record" has the same meaning as defined in Section 63G-2-103 .
             191          Section 4. Section 11-50-201 is enacted to read:
             192     
Part 2. Certain Prohibitions on Disposal of Political Subdivision Property

             193          11-50-201. Consideration for political subdivision property.
             194          (1) A political subdivision or educational entity:
             195          (a) shall hold property in trust for the public's interest; and
             196          (b) except as provided in Subsection (2), may not sell, alienate, give away, or otherwise
             197      dispose of property without receiving S. [ consideration in the form of ] .S fair market value for
             197a      the
             198      property.
             199          (2) Subsection (1) does not apply to:
             200          (a) property conveyed in accordance with Section 11-13-214 ;
             201          (b) property described in Section 11-13-215 ;
             202          (c) a service or assistance provided by a county in accordance with Section 17-50-303 ;
             203          (d) property that is:
             204          (i) S. subject to Subsection (3), .S a record requested in accordance with Title 63G,
             204a      Chapter 2, Government Records
             205      Access and Management Act; and
             206          (ii) is requested for a purpose, including media purposes, other than commercial use;
             206a      S. [ or ] .S
             207          (e) property requested by, conveyed to, or otherwise disposed to the state, another
             208      political subdivision, or the federal government S. [ . ] (f) the acquisition or disposal of property
             208a      in accordance with Section 10-8-2; or
             208b           (g) any transfer of property specifically authorized by law.
             208c          (3)(a) If a records request has apparent significant commercial value, the custodian


            
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208d      of the property may require the requestor to attest in writing, under penalty of perjury,
             208e      whether the material is to be used for commercial resale purposes.
             208f          (b) If the request is for commercial resale purposes, the requestor shall pay fair market
             208g      value for the property as provided in Subsection (1). .S
             209          Section 5. Section 17-50-302 is amended to read:
             210           17-50-302. General county powers.
             211          (1) (a) Except as provided in Subsection (1)(b), a county may:
             212          (i) as prescribed by statute:
             213          (A) levy a tax;



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             214
         (B) perform an assessment;
             215          (C) collect a tax;
             216          (D) borrow money; or
             217          (E) levy and collect a special assessment for a conferred benefit; or
             218          (ii) provide a service, exercise a power, or perform a function that is reasonably related
             219      to the safety, health, morals, and welfare of county inhabitants, except as limited or prohibited
             220      by statute.
             221          (b) A county or a governmental instrumentality of a county may not perform an action
             222      described in Subsection (1)(a)(i) or provide a service, exercise a power, or perform a function
             223      described in Subsection (1)(a)(ii) in another county or a municipality within the other county
             224      without first entering into an agreement under Title 11, Chapter 13, Interlocal Cooperation Act,
             225      or other contract with the other county to perform the action, provide the service, exercise the
             226      power, or perform the function.
             227          (2) (a) A county may:
             228          (i) sue and be sued;
             229          (ii) subject to Subsection (2)(c), acquire real property by tax sale, purchase, lease,
             230      contract, or gift, and hold the real property as necessary and proper for county purposes;
             231          (iii) (A) subject to Subsection (2)(b), acquire real property by condemnation, as
             232      provided in Title 78B, Chapter 6, Part 5, Eminent Domain; and
             233          (B) hold the real property as necessary and proper for county purposes;
             234          (iv) as may be necessary to the exercise of its powers, acquire personal property by
             235      purchase, lease, contract, or gift, and hold such personal property; and
             236          (v) subject to Title 11, Chapter 50, Part 2, Certain Prohibitions on Disposal of Political
             237      Subdivision Property, manage and dispose of its property as the interests of its inhabitants may
             238      require.
             239          (b) (i) For purposes of Subsection (2)(a)(iii), water rights that are not appurtenant to
             240      land do not constitute real property that may be acquired by the county through condemnation.
             241          (ii) Nothing in Subsection (2)(a)(iii) may be construed to authorize a county to acquire
             242      by condemnation the rights to water unless the land to which those water rights are appurtenant
             243      is acquired by condemnation.
             244          (c) (i) Except as provided in Subsection (2)(c)(iv), each county intending to acquire



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             245
     real property for the purpose of expanding the county's infrastructure or other facilities used for
             246      providing services that the county offers or intends to offer shall provide written notice, as
             247      provided in this Subsection (2)(c), of its intent to acquire the property if:
             248          (A) the property is located:
             249          (I) outside the boundaries of the unincorporated area of the county; and
             250          (II) in a county of the first or second class; and
             251          (B) the intended use of the property is contrary to:
             252          (I) the anticipated use of the property under the general plan of the county in whose
             253      unincorporated area or the municipality in whose boundaries the property is located; or
             254          (II) the property's current zoning designation.
             255          (ii) Each notice under Subsection (2)(c)(i) shall:
             256          (A) indicate that the county intends to acquire real property;
             257          (B) identify the real property; and
             258          (C) be sent to:
             259          (I) each county in whose unincorporated area and each municipality in whose
             260      boundaries the property is located; and
             261          (II) each affected entity.
             262          (iii) A notice under this Subsection (2)(c) is a protected record as provided in
             263      Subsection 63G-2-305 (7).
             264          (iv) (A) The notice requirement of Subsection (2)(c)(i) does not apply if the county
             265      previously provided notice under Section 17-27a-203 identifying the general location within
             266      the municipality or unincorporated part of the county where the property to be acquired is
             267      located.
             268          (B) If a county is not required to comply with the notice requirement of Subsection
             269      (2)(c)(i) because of application of Subsection (2)(c)(iv)(A), the county shall provide the notice
             270      specified in Subsection (2)(c)(i) as soon as practicable after its acquisition of the real property.
             271          Section 6. Section 17-50-312 is amended to read:
             272           17-50-312. Acquisition, management, and disposal of property.
             273          (1) Subject to Subsection (4) and Title 11, Chapter 50, Part 2, Certain Prohibitions on
             274      Disposal of Political Subdivision Property, a county may purchase, receive, hold, sell, lease,
             275      convey, or otherwise acquire and dispose of any real or personal property or any interest in



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             276
     such property if the action is in the public interest and complies with other law.
             277          (2) Any property interest acquired by the county shall be held in the name of the county
             278      unless specifically otherwise provided by law.
             279          (3) The county legislative body shall, subject to Title 11, Chapter 50, Part 2, Certain
             280      Prohibitions on Disposal of Political Subdivision Property, provide by ordinance, resolution,
             281      rule, or regulation for the manner in which property shall be acquired, managed, and disposed
             282      of.
             283          (4) (a) Before a county may dispose of a significant parcel of real property, the county
             284      shall:
             285          (i) provide reasonable notice of the proposed disposition at least 14 days before the
             286      opportunity for public comment under Subsection (4)(a)(ii); and
             287          (ii) allow an opportunity for public comment on the proposed disposition.
             288          (b) Each county shall, by ordinance, define what constitutes:
             289          (i) a significant parcel of real property for purposes of Subsection (4)(a); and
             290          (ii) reasonable notice for purposes of Subsection (4)(a)(i).
             291          Section 7. Section 17B-1-103 is amended to read:
             292           17B-1-103. Local district status and powers.
             293          (1) A local district:
             294          (a) is:
             295          (i) a body corporate and politic with perpetual succession;
             296          (ii) a quasi-municipal corporation; and
             297          (iii) a political subdivision of the state; and
             298          (b) may sue and be sued.
             299          (2) A local district may:
             300          (a) acquire, by any lawful means, or lease any real property, personal property, or a
             301      groundwater right necessary or convenient to the full exercise of the district's powers;
             302          (b) acquire, by any lawful means, any interest in real property, personal property, or a
             303      groundwater right necessary or convenient to the full exercise of the district's powers;
             304          (c) subject to Title 11, Chapter 50, Part 2, Certain Prohibitions on Disposal of Political
             305      Subdivision Property, transfer an interest in or dispose of any property or interest described in
             306      Subsections (2)(a) and (b);



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             307
         (d) acquire or construct works, facilities, and improvements necessary or convenient to
             308      the full exercise of the district's powers, and operate, control, maintain, and use those works,
             309      facilities, and improvements;
             310          (e) borrow money and incur indebtedness for any lawful district purpose;
             311          (f) issue bonds, including refunding bonds:
             312          (i) for any lawful district purpose; and
             313          (ii) as provided in and subject to Part 11, Local District Bonds;
             314          (g) levy and collect property taxes:
             315          (i) for any lawful district purpose or expenditure, including to cover a deficit resulting
             316      from tax delinquencies in a preceding year; and
             317          (ii) as provided in and subject to Part 10, Local District Property Tax Levy;
             318          (h) as provided in Title 78B, Chapter 6, Part 5, Eminent Domain, acquire by eminent
             319      domain property necessary to the exercise of the district's powers;
             320          (i) invest money as provided in Title 51, Chapter 7, State Money Management Act;
             321          (j) (i) impose fees or other charges for commodities, services, or facilities provided by
             322      the district, to pay some or all of the district's costs of providing the commodities, services, and
             323      facilities, including the costs of:
             324          (A) maintaining and operating the district;
             325          (B) acquiring, purchasing, constructing, improving, or enlarging district facilities;
             326          (C) issuing bonds and paying debt service on district bonds; and
             327          (D) providing a reserve established by the board of trustees; and
             328          (ii) take action the board of trustees considers appropriate and adopt regulations to
             329      assure the collection of all fees and charges that the district imposes;
             330          (k) if applicable, charge and collect a fee to pay for the cost of connecting a customer's
             331      property to district facilities in order for the district to provide service to the property;
             332          (l) enter into a contract that the local district board of trustees considers necessary,
             333      convenient, or desirable to carry out the district's purposes, including a contract:
             334          (i) with the United States or any department or agency of the United States;
             335          (ii) to indemnify and save harmless; or
             336          (iii) to do any act to exercise district powers;
             337          (m) purchase supplies, equipment, and materials;



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             338
         (n) encumber district property upon terms and conditions that the board of trustees
             339      considers appropriate;
             340          (o) exercise other powers and perform other functions that are provided by law;
             341          (p) construct and maintain works and establish and maintain facilities, including works
             342      or facilities:
             343          (i) across or along any public street or highway, subject to Subsection (3) and if the
             344      district:
             345          (A) promptly restores the street or highway, as much as practicable, to its former state
             346      of usefulness; and
             347          (B) does not use the street or highway in a manner that completely or unnecessarily
             348      impairs the usefulness of it;
             349          (ii) in, upon, or over any vacant public lands that are or become the property of the
             350      state, including school and institutional trust lands, as defined in Section 53C-1-103 , if the
             351      director of the School and Institutional Trust Lands Administration, acting under Sections
             352      53C-1-102 and 53C-1-303 , consents; or
             353          (iii) across any stream of water or watercourse, subject to Section 73-3-29 ;
             354          (q) perform any act or exercise any power reasonably necessary for the efficient
             355      operation of the local district in carrying out its purposes;
             356          (r) (i) except for a local district described in Subsection (2)(r)(ii), designate an
             357      assessment area and levy an assessment on land within the assessment area, as provided in
             358      Title 11, Chapter 42, Assessment Area Act; or
             359          (ii) for a local district created to assess a groundwater right in a critical management
             360      area described in Subsection 17B-1-202 (1), designate an assessment area and levy an
             361      assessment, as provided in Title 11, Chapter 42, Assessment Area Act, on a groundwater right
             362      to facilitate a groundwater management plan;
             363          (s) contract with another political subdivision of the state to allow the other political
             364      subdivision to use the district's surplus water or capacity or have an ownership interest in the
             365      district's works or facilities, upon the terms and for the consideration, whether monetary or
             366      nonmonetary consideration or no consideration, that the district's board of trustees considers to
             367      be in the best interests of the district and the public; and
             368          (t) upon the terms and for the consideration, whether monetary or nonmonetary



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             369
     consideration or no consideration, that the district's board of trustees considers to be in the best
             370      interests of the district and the public, agree:
             371          (i) with:
             372          (A) another political subdivision of the state; or
             373          (B) a public or private owner of property:
             374          (I) on which the district has a right-of-way; or
             375          (II) adjacent to which the district owns fee title to property; and
             376          (ii) to allow the use of property:
             377          (A) owned by the district; or
             378          (B) on which the district has a right-of-way.
             379          (3) With respect to a local district's use of a street or highway, as provided in
             380      Subsection (2)(p)(i):
             381          (a) the district shall comply with the reasonable rules and regulations of the
             382      governmental entity, whether state, county, or municipal, with jurisdiction over the street or
             383      highway, concerning:
             384          (i) an excavation and the refilling of an excavation;
             385          (ii) the relaying of pavement; and
             386          (iii) the protection of the public during a construction period; and
             387          (b) the governmental entity, whether state, county, or municipal, with jurisdiction over
             388      the street or highway:
             389          (i) may not require the district to pay a license or permit fee or file a bond; and
             390          (ii) may require the district to pay a reasonable inspection fee.
             391          (4) (a) A local district may:
             392          (i) acquire, lease, or construct and operate electrical generation, transmission, and
             393      distribution facilities, if:
             394          (A) the purpose of the facilities is to harness energy that results inherently from the
             395      district's:
             396          (I) operation of a project or facilities that the district is authorized to operate; or
             397          (II) providing a service that the district is authorized to provide;
             398          (B) the generation of electricity from the facilities is incidental to the primary
             399      operations of the district; and



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             400
         (C) operation of the facilities will not hinder or interfere with the primary operations of
             401      the district;
             402          (ii) (A) use electricity generated by the facilities; or
             403          (B) subject to Subsection (4)(b), sell electricity generated by the facilities to an electric
             404      utility or municipality with an existing system for distributing electricity.
             405          (b) A district may not act as a retail distributor or seller of electricity.
             406          (c) Revenue that a district receives from the sale of electricity from electrical
             407      generation facilities it owns or operates under this section may be used for any lawful district
             408      purpose, including the payment of bonds issued to pay some or all of the cost of acquiring or
             409      constructing the facilities.
             410          (5) A local district may adopt and, after adoption, alter a corporate seal.
             411          (6) (a) As used in this Subsection (6), "knife" means a cutting instrument that includes
             412      a sharpened or pointed blade.
             413          (b) The authority to regulate a knife is reserved to the state except where the
             414      Legislature specifically delegates responsibility to a local district.
             415          (c) Unless specifically authorized by the Legislature by statute, a local district may not
             416      adopt or enforce a regulation or rule pertaining to a knife.
             417          Section 8. Section 17B-1-301 is amended to read:
             418           17B-1-301. Board of trustees duties and powers.
             419          (1) (a) Each local district shall be governed by a board of trustees which shall manage
             420      and conduct the business and affairs of the district and shall determine all questions of district
             421      policy.
             422          (b) All powers of a local district are exercised through the board of trustees.
             423          (2) The board of trustees may:
             424          (a) fix the location of the local district's principal place of business and the location of
             425      all offices and departments, if any;
             426          (b) fix the times of meetings of the board of trustees;
             427          (c) select and use an official district seal;
             428          (d) subject to Subsections (3) and (4), employ employees and agents, or delegate to
             429      district officers power to employ employees and agents, for the operation of the local district
             430      and its properties and prescribe or delegate to district officers the power to prescribe the duties,



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             431
     compensation, and terms and conditions of employment of those employees and agents;
             432          (e) require district officers and employees charged with the handling of district funds to
             433      provide surety bonds in an amount set by the board or provide a blanket surety bond to cover
             434      officers and employees;
             435          (f) contract for or employ professionals to perform work or services for the local
             436      district that cannot satisfactorily be performed by the officers or employees of the district;
             437          (g) through counsel, prosecute on behalf of or defend the local district in all court
             438      actions or other proceedings in which the district is a party or is otherwise involved;
             439          (h) adopt bylaws for the orderly functioning of the board;
             440          (i) adopt and enforce rules and regulations for the orderly operation of the local district
             441      or for carrying out the district's purposes;
             442          (j) prescribe a system of civil service for district employees;
             443          (k) on behalf of the local district, enter into contracts that the board considers to be for
             444      the benefit of the district;
             445          (l) acquire, construct or cause to be constructed, operate, occupy, control, and use
             446      buildings, works, or other facilities for carrying out the purposes of the local district;
             447          (m) on behalf of the local district, acquire, use, hold, manage, occupy, and possess
             448      property necessary to carry out the purposes of the district, dispose of property, subject to Title
             449      11, Chapter 50, Part 2, Certain Prohibitions on Disposal of Political Subdivision Property,
             450      when the board considers it appropriate, and institute and maintain in the name of the district
             451      any action or proceeding to enforce, maintain, protect, or preserve rights or privileges
             452      associated with district property;
             453          (n) delegate to a district officer the exercise of a district duty; and
             454          (o) exercise all powers and perform all functions in the operation of the local district
             455      and its properties as are ordinarily exercised by the governing body of a political subdivision of
             456      the state and as are necessary to accomplish the purposes of the district.
             457          (3) (a) As used in this Subsection (3), "interim vacancy period" means:
             458          (i) if any member of the local district board is elected, the period of time that:
             459          (A) begins on the day on which a municipal general election described in Section
             460      17B-1-306 is held to elect a local district board member; and
             461          (B) ends on the day on which the local district board member-elect begins the



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             462
     member's term; or
             463          (ii) if any member of the local district board is appointed, the period of time that:
             464          (A) begins on the day on which an appointing authority posts a notice of vacancy in
             465      accordance with Section 17B-1-304 ; and
             466          (B) ends on the day on which the person who is appointed by the local district board to
             467      fill the vacancy begins the person's term.
             468          (b) (i) The local district may not hire during an interim vacancy period a manager, a
             469      chief executive officer, a chief administrative officer, or a similar position to perform executive
             470      and administrative duties or functions.
             471          (ii) Notwithstanding Subsection (3)(b)(i):
             472          (A) the local district may hire an interim manager, a chief executive officer, a chief
             473      administrative officer, or a similar position during an interim vacancy period; and
             474          (B) the interim manager's, chief executive officer's, chief administrative officer's, or
             475      similar position's employment shall terminate once a new manager, chief executive officer,
             476      chief administrative officer, or similar position is hired by the new local district board after the
             477      interim vacancy period has ended.
             478          (c) Subsection (3)(b) does not apply if:
             479          (i) all the elected local district board members who held office on the day of the
             480      municipal general election whose term of office was vacant for the election are re-elected to the
             481      local district board; and
             482          (ii) all the appointed local district board members who were appointed whose term of
             483      appointment was expiring are re-appointed to the local district board.
             484          (4) A local district board that hires an interim manager, a chief executive officer, a
             485      chief administrative officer, or a similar position in accordance with this section may not, on or
             486      after May 10, 2011, enter into an employment contract that contains an automatic renewal
             487      provision with the interim manager, chief executive officer, chief administrative officer, or
             488      similar position.
             489          Section 9. Section 17C-1-202 is amended to read:
             490           17C-1-202. Agency powers.
             491          (1) A community development and renewal agency may:
             492          (a) sue and be sued;



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             493
         (b) enter into contracts generally;
             494          (c) buy, obtain an option upon, or otherwise acquire any interest in real or personal
             495      property;
             496          (d) subject to Title 11, Chapter 50, Part 2, Certain Prohibitions on Disposal of Political
             497      Subdivision Property, sell, convey, grant, dispose of by gift, or otherwise dispose of any
             498      interest in real or personal property;
             499          (e) enter into a lease agreement on real or personal property, either as lessee or lessor;
             500          (f) provide for urban renewal, economic development, and community development as
             501      provided in this title;
             502          (g) receive tax increment as provided in this title;
             503          (h) if disposing of or leasing land, retain controls or establish restrictions and
             504      covenants running with the land consistent with the project area plan;
             505          (i) accept financial or other assistance from any public or private source for the
             506      agency's activities, powers, and duties, and expend any funds so received for any of the
             507      purposes of this title;
             508          (j) borrow money or accept financial or other assistance from the federal government, a
             509      public entity, or any other source for any of the purposes of this title and comply with any
             510      conditions of the loan or assistance;
             511          (k) issue bonds to finance the undertaking of any urban renewal, economic
             512      development, or community development or for any of the agency's other purposes, including:
             513          (i) reimbursing an advance made by the agency or by a public entity or the federal
             514      government to the agency;
             515          (ii) refunding bonds to pay or retire bonds previously issued by the agency; and
             516          (iii) refunding bonds to pay or retire bonds previously issued by the community that
             517      created the agency for expenses associated with an urban renewal, economic development, or
             518      community development project; and
             519          (l) transact other business and exercise all other powers provided for in this title.
             520          (2) The establishment of controls or restrictions and covenants under Subsection (1)(h)
             521      is a public purpose.
             522          Section 10. Section 17C-1-207 is amended to read:
             523           17C-1-207. Public entities may assist with urban renewal, economic development,



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             524
     or community development project.
             525          (1) In order to assist and cooperate in the planning, undertaking, construction, or
             526      operation of urban renewal, economic development, or community development within the
             527      area in which it is authorized to act, a public entity may:
             528          (a) (i) provide or cause to be furnished:
             529          (A) parks, playgrounds, or other recreational facilities;
             530          (B) community, educational, water, sewer, or drainage facilities; or
             531          (C) any other works which the public entity is otherwise empowered to undertake;
             532          (ii) provide, furnish, dedicate, close, vacate, pave, install, grade, regrade, plan, or
             533      replan streets, roads, roadways, alleys, sidewalks, or other places;
             534          (iii) in any part of the project area:
             535          (A) (I) plan or replan any property within the project area;
             536          (II) plat or replat any property within the project area;
             537          (III) vacate a plat;
             538          (IV) amend a plat; or
             539          (V) zone or rezone any property within the project area; and
             540          (B) make any legal exceptions from building regulations and ordinances;
             541          (iv) purchase or legally invest in any of the bonds of an agency and exercise all of the
             542      rights of any holder of the bonds;
             543          (v) enter into an agreement with another public entity concerning action to be taken
             544      pursuant to any of the powers granted in this title;
             545          (vi) do any and all things necessary to aid or cooperate in the planning or carrying out
             546      of the urban renewal, economic development, or community development;
             547          (vii) in connection with the project area plan, become obligated to the extent
             548      authorized and funds have been made available to make required improvements or construct
             549      required structures; and
             550          (viii) lend, grant, or contribute funds to an agency for an urban renewal, economic
             551      development, or community development project; and
             552          (b) 15 days after posting public notice:
             553          (i) purchase or otherwise acquire property or lease property from an agency; or
             554          (ii) subject to Title 11, Chapter 50, Part 2, Certain Prohibitions on Disposal of Political



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             555
     Subdivision Property, sell, grant, convey, or otherwise dispose of the public entity's property or
             556      lease the public entity's property to an agency.
             557          (2) Notwithstanding any law to the contrary, an agreement under Subsection (1)(a)(v)
             558      may extend over any period.
             559          (3) A grant or contribution of funds from a public entity to an agency, or from an
             560      agency under a project area plan or project area budget, is not subject to the requirements of
             561      Section 10-8-2 .
             562          Section 11. Section 17D-1-103 is amended to read:
             563           17D-1-103. Special service district status, powers, and duties -- Limitation on
             564      districts providing jail service.
             565          (1) A special service district:
             566          (a) is a body corporate and politic with perpetual succession, separate and distinct from
             567      the county or municipality that creates it;
             568          (b) is a quasi-municipal corporation; and
             569          (c) may sue and be sued.
             570          (2) A special service district may:
             571          (a) exercise the power of eminent domain possessed by the county or municipality that
             572      creates the special service district;
             573          (b) enter into a contract that the governing authority considers desirable to carry out
             574      special service district functions, including a contract:
             575          (i) with the United States or an agency of the United States, the state, an institution of
             576      higher education, a county, a municipality, a school district, a local district, another special
             577      service district, or any other political subdivision of the state; or
             578          (ii) that includes provisions concerning the use, operation, and maintenance of special
             579      service district facilities and the collection of fees or charges with respect to commodities,
             580      services, or facilities that the district provides;
             581          (c) acquire or construct facilities;
             582          (d) acquire real or personal property, or an interest in real or personal property,
             583      including water and water rights, whether by purchase, lease, gift, devise, bequest, or
             584      otherwise, and whether the property is located inside or outside the special service district, and
             585      own, hold, improve, use, finance, or otherwise deal in and with the property or property right;



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             586
         (e) subject to Title 11, Chapter 50, Part 2, Certain Prohibitions on Disposal of Political
             587      Subdivision Property, sell, convey, lease, exchange, transfer, or otherwise dispose of all or any
             588      part of the special service district's property or assets, including water and water rights;
             589          (f) mortgage, pledge, or otherwise encumber all or any part of the special service
             590      district's property or assets, including water and water rights;
             591          (g) enter into a contract with respect to the use, operation, or maintenance of all or any
             592      part of the special service district's property or assets, including water and water rights;
             593          (h) accept a government grant or loan and comply with the conditions of the grant or
             594      loan;
             595          (i) use an officer, employee, property, equipment, office, or facility of the county or
             596      municipality that created the special service district, subject to reimbursement as provided in
             597      Subsection (3);
             598          (j) employ one or more officers, employees, or agents, including one or more
             599      engineers, accountants, attorneys, or financial consultants, and establish their compensation;
             600          (k) designate an assessment area and levy an assessment as provided in Title 11,
             601      Chapter 42, Assessment Area Act;
             602          (l) contract with a franchised, certificated public utility for the construction and
             603      operation of an electrical service distribution system within the special service district;
             604          (m) borrow money and incur indebtedness;
             605          (n) as provided in Part 5, Special Service District Bonds, issue bonds for the purpose of
             606      acquiring, constructing, and equipping any of the facilities required for the services the special
             607      service district is authorized to provide, including:
             608          (i) bonds payable in whole or in part from taxes levied on the taxable property in the
             609      special service district;
             610          (ii) bonds payable from revenues derived from the operation of revenue-producing
             611      facilities of the special service district;
             612          (iii) bonds payable from both taxes and revenues;
             613          (iv) guaranteed bonds, payable in whole or in part from taxes levied on the taxable
             614      property in the special service district;
             615          (v) tax anticipation notes;
             616          (vi) bond anticipation notes;



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             617
         (vii) refunding bonds;
             618          (viii) special assessment bonds; and
             619          (ix) bonds payable in whole or in part from mineral lease payments as provided in
             620      Section 11-14-308 ;
             621          (o) except as provided in Subsection (4), impose fees or charges or both for
             622      commodities, services, or facilities that the special service district provides;
             623          (p) provide to an area outside the special service district's boundary, whether inside or
             624      outside the state, a service that the special service district is authorized to provide within its
             625      boundary, if the governing body makes a finding that there is a public benefit to providing the
             626      service to the area outside the special service district's boundary;
             627          (q) provide other services that the governing body determines will more effectively
             628      carry out the purposes of the special service district; and
             629          (r) adopt an official seal for the special service district.
             630          (3) Each special service district that uses an officer, employee, property, equipment,
             631      office, or facility of the county or municipality that created the special service district shall
             632      reimburse the county or municipality a reasonable amount for what the special service district
             633      uses.
             634          (4) (a) A special service district that provides jail service as provided in Subsection
             635      17D-1-201 (10) may not impose a fee or charge for the service it provides.
             636          (b) Subsection (4)(a) may not be construed to limit a special service district that
             637      provides jail service from:
             638          (i) entering into a contract with the federal government, the state, or a political
             639      subdivision of the state to provide jail service for compensation; or
             640          (ii) receiving compensation for jail service it provides under a contract described in
             641      Subsection (4)(b)(i).





Legislative Review Note
    as of 2-8-13 12:47 PM


Office of Legislative Research and General Counsel


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