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Third Substitute S.B. 200

Senator Jerry W. Stevenson proposes the following substitute bill:


             1     
LOCAL AND SPECIAL SERVICE DISTRICTS

             2     
AMENDMENTS

             3     
2013 GENERAL SESSION

             4     
STATE OF UTAH

             5     
Chief Sponsor: Jerry W. Stevenson

             6     
House Sponsor: Stephen G. Handy

             7     
             8      LONG TITLE
             9      General Description:
             10          This bill amends provisions related to a local district and a special service district.
             11      Highlighted Provisions:
             12          This bill:
             13          .    amends procurement provisions governing a political subdivision;
             14          .    enacts provisions prohibiting the creation of a local district in certain circumstances;
             15          .    enacts provisions that require the dissolution of a local district in certain
             16      circumstances;
             17          .    amends provisions that govern the terms of office of a local district board of
             18      trustees;
             19          .    permits a member of the board of trustees to continue to serve until a successor is
             20      elected or appointed;
             21          .    amends provisions related to the election of a local district board member;
             22          .    amends provisions related to compensation paid to a member of the board of
             23      trustees;
             24          .    prohibits a board of trustees from adopting certain bylaws or rules in certain
             25      circumstances;


             26          .    amends provisions governing employment of a member of the board of trustees by a
             27      local district;
             28          .    amends provisions related to a local district audit;
             29          .    authorizes a special service district to provide cemetery services;
             30          .    amends provisions related to filling a midterm vacancy on a local district board;
             31          .    enacts language related to background checks of certain public transit district
             32      employees; and
             33          .    makes technical and conforming amendments.
             34      Money Appropriated in this Bill:
             35          None
             36      Other Special Clauses:
             37          None
             38      Utah Code Sections Affected:
             39      AMENDS:
             40          11-39-107 (Effective 05/01/13), as last amended by Laws of Utah 2012, Chapter 347
             41          17B-1-202, as last amended by Laws of Utah 2012, Chapter 97
             42          17B-1-217, as renumbered and amended by Laws of Utah 2007, Chapter 329
             43          17B-1-303, as last amended by Laws of Utah 2012, Chapter 97
             44          17B-1-304, as last amended by Laws of Utah 2012, Chapter 97
             45          17B-1-306, as last amended by Laws of Utah 2012, Chapter 97
             46          17B-1-307, as last amended by Laws of Utah 2010, Chapter 286
             47          17B-1-310, as last amended by Laws of Utah 2011, Chapter 107
             48          17B-1-311, as renumbered and amended by Laws of Utah 2007, Chapter 329
             49          17B-1-639, as last amended by Laws of Utah 2009, Chapter 323
             50          17B-1-640, as renumbered and amended by Laws of Utah 2007, Chapter 329
             51          17B-2a-813, as last amended by Laws of Utah 2008, Chapter 360
             52          17D-1-201, as last amended by Laws of Utah 2011, Chapter 106
             53          20A-1-512, as last amended by Laws of Utah 2011, Chapter 40
             54          62A-5-103.5, as last amended by Laws of Utah 2008, Chapters 3 and 17
             55     
             56      Be it enacted by the Legislature of the state of Utah:


             57          Section 1. Section 11-39-107 (Effective 05/01/13) is amended to read:
             58           11-39-107 (Effective 05/01/13). Procurement code.
             59          (1) This chapter may not be construed to:
             60          (a) prohibit a county or municipal legislative body from adopting the procedures of the
             61      procurement code; or
             62          (b) limit the application of the procurement code to a local district or special service
             63      district.
             64          (2) A local entity may adopt procedures for the following construction contracting
             65      methods:
             66          (a) construction manager/general contractor, as defined in Section 63G-6a-103 ; or
             67          (b) a method that requires that the local entity draft a plan, specifications, and an
             68      estimate for the building improvement or public works project.
             69          (3) For a public works project only and that costs [$10,000,000] $1,000,000 or more, in
             70      consultation with a professional engineer licensed under Title 58, Chapter 22, Professional
             71      Engineers and Professional Land Surveyors Licensing Act, who has design-build experience
             72      and is employed by or is under contract with the owner, the following may enter into a contract
             73      for design-build, as defined in Section 63G-6a-103 , and adopt the procedures and follow the
             74      provisions of the procurement code for the procurement of and as the procedures and
             75      provisions relate to a design-build:
             76          (a) a city of the first class;
             77          (b) a local district; or
             78          (c) a special service district.
             79          (4) (a) In seeking bids and awarding a contract for a building improvement or public
             80      works project, a county or a municipal legislative body may elect to follow the provisions of
             81      the procurement code, as the county or municipal legislative body considers appropriate under
             82      the circumstances, for specification preparation, source selection, or contract formation.
             83          (b) A county or municipal legislative body's election to adopt the procedures of the
             84      procurement code may not excuse the county or municipality, respectively, from complying
             85      with the requirements to award a contract for work in excess of the bid limit and to publish
             86      notice of the intent to award.
             87          (c) An election under Subsection (4)(a) may be made on a case-by-case basis, unless


             88      the county or municipality has previously adopted the provisions of Title 63G, Chapter 6a,
             89      Utah Procurement Code.
             90          (d) The county or municipal legislative body shall:
             91          (i) make each election under Subsection (4)(a) in an open meeting; and
             92          (ii) specify in its action the portions of the procurement code to be followed.
             93          (5) If the estimated cost of the building improvement or public works project proposed
             94      by a local district or special service district exceeds the bid limit, the governing body of the
             95      local district or special service district may, if it determines to proceed with the building
             96      improvement or public works project, use the competitive procurement procedures of the
             97      procurement code in place of the comparable provisions of this chapter.
             98          Section 2. Section 17B-1-202 is amended to read:
             99           17B-1-202. Local district may be created -- Services that may be provided --
             100      Limitations.
             101          (1) (a) A local district may be created as provided in this part to provide within its
             102      boundaries service consisting of:
             103          (i) the operation of an airport;
             104          (ii) the operation of a cemetery;
             105          (iii) fire protection, paramedic, and emergency services, including consolidated 911
             106      and emergency dispatch services;
             107          (iv) garbage collection and disposal;
             108          (v) health care, including health department or hospital service;
             109          (vi) the operation of a library;
             110          (vii) abatement or control of mosquitos and other insects;
             111          (viii) the operation of parks or recreation facilities or services;
             112          (ix) the operation of a sewage system;
             113          (x) the construction and maintenance of a right-of-way, including:
             114          (A) a curb;
             115          (B) a gutter;
             116          (C) a sidewalk;
             117          (D) a street;
             118          (E) a road;


             119          (F) a water line;
             120          (G) a sewage line;
             121          (H) a storm drain;
             122          (I) an electricity line;
             123          (J) a communications line;
             124          (K) a natural gas line; or
             125          (L) street lighting;
             126          (xi) transportation, including public transit and providing streets and roads;
             127          (xii) the operation of a system, or one or more components of a system, for the
             128      collection, storage, retention, control, conservation, treatment, supplying, distribution, or
             129      reclamation of water, including storm, flood, sewage, irrigation, and culinary water, whether
             130      the system is operated on a wholesale or retail level or both;
             131          (xiii) in accordance with Subsection (1)(c), the acquisition or assessment of a
             132      groundwater right for the development and execution of a groundwater management plan in
             133      cooperation with and approved by the state engineer in accordance with Section 73-5-15 ;
             134          (xiv) law enforcement service;
             135          (xv) subject to Subsection (1)(b), the underground installation of an electric utility line
             136      or the conversion to underground of an existing electric utility line;
             137          (xvi) the control or abatement of earth movement or a landslide; or
             138          (xvii) the operation of animal control services and facilities.
             139          (b) Each local district that provides the service of the underground installation of an
             140      electric utility line or the conversion to underground of an existing electric utility line shall, in
             141      installing or converting the line, provide advance notice to and coordinate with the utility that
             142      owns the line.
             143          (c) A groundwater management plan described in Subsection (1)(a)(xiii) may include
             144      the banking of groundwater rights by a local district in a critical management area as defined in
             145      Section 73-5-15 following the adoption of a groundwater management plan by the state
             146      engineer under Section 73-5-15 .
             147          (i) A local district may manage the groundwater rights it acquires under Subsection
             148      17B-1-103 (2)(a) or (b) consistent with the provisions of a groundwater management plan
             149      described in this Subsection (1)(c).


             150          (ii) A groundwater right held by a local district to satisfy the provisions of a
             151      groundwater management plan is not subject to the forfeiture provisions of Section 73-1-4 .
             152          (iii) (A) A local district may divest itself of a groundwater right subject to a
             153      determination that the groundwater right is not required to facilitate the groundwater
             154      management plan described in this Subsection (1)(c).
             155          (B) The groundwater right described in Subsection (1)(c)(iii)(A) is subject to Section
             156      73-1-4 beginning on the date of divestiture.
             157          (iv) Upon a determination by the state engineer that an area is no longer a critical
             158      management area as defined in Section 73-5-15 , a groundwater right held by the local district is
             159      subject to Section 73-1-4 .
             160          (v) A local district created in accordance with Subsection (1)(a)(xiii) to develop and
             161      execute a groundwater management plan may hold or acquire a right to surface waters that are
             162      naturally tributary to the groundwater basin subject to the groundwater management plan if the
             163      surface waters are appropriated in accordance with Title 73, Water and Irrigation, and used in
             164      accordance with Title 73, Chapter 3b, Groundwater Recharge and Recovery Act.
             165          (2) For purposes of this section:
             166          (a) "Operation" means all activities involved in providing the indicated service
             167      including acquisition and ownership of property reasonably necessary to provide the indicated
             168      service and acquisition, construction, and maintenance of facilities and equipment reasonably
             169      necessary to provide the indicated service.
             170          (b) "System" means the aggregate of interrelated components that combine together to
             171      provide the indicated service including, for a sewage system, collection and treatment.
             172          (3) (a) A local district may not be created to provide and may not after its creation
             173      provide more than four of the services listed in Subsection (1).
             174          (b) Subsection (3)(a) may not be construed to prohibit a local district from providing
             175      more than four services if, before April 30, 2007, the local district was authorized to provide
             176      those services.
             177          (4) (a) Except as provided in Subsection (4)(b), a local district may not be created to
             178      provide and may not after its creation provide to an area the same service already being
             179      provided to that area by another political subdivision, unless the other political subdivision
             180      gives its written consent.


             181          (b) For purposes of Subsection (4)(a), a local district does not provide the same service
             182      as another political subdivision if it operates a component of a system that is different from a
             183      component operated by another political subdivision but within the same:
             184          (i) sewage system; or
             185          (ii) water system.
             186          (5) (a) Except for a local district in the creation of which an election is not required
             187      under Subsection 17B-1-214 (3)(d), the area of a local district may include all or part of the
             188      unincorporated area of one or more counties and all or part of one or more municipalities.
             189          (b) The area of a local district need not be contiguous.
             190          (6) For a local district created before May 5, 2008, the authority to provide fire
             191      protection service also includes the authority to provide:
             192          (a) paramedic service; and
             193          (b) emergency service, including hazardous materials response service.
             194          (7) A local district created before May 11, 2010, authorized to provide the construction
             195      and maintenance of curb, gutter, or sidewalk may provide a service described in Subsection
             196      (1)(a)(x) on or after May 11, 2010.
             197          (8) A local district created before May 10, 2011, authorized to provide culinary,
             198      irrigation, sewage, or storm water services may provide a service described in Subsection
             199      (1)(a)(xii) on or after May 10, 2011.
             200          (9) A local district may not be created under this chapter for two years after the date on
             201      which a local district is dissolved as provided in Section 17B-1-217 if the local district
             202      proposed for creation:
             203          (a) provides the same or a substantially similar service as the dissolved local district;
             204      and
             205          (b) is located in substantially the same area as the dissolved local district.
             206          Section 3. Section 17B-1-217 is amended to read:
             207           17B-1-217. Activity required -- Dissolution -- Conclusive presumption regarding
             208      creation and existence.
             209          (1) A local district that is not engaged in one or more of the following activities,
             210      services, or duties is subject to dissolution in accordance with Subsections (5) and (6):
             211          (a) levying and collecting a tax;


             212          (b) providing a commodity or service;
             213          (c) collecting a fee or charging an assessment for a commodity, service, facility, or
             214      improvement provided by the local district;
             215          (d) undertaking planning necessary for the provision of a commodity, service, facility,
             216      or improvement as reflected in a written study or report;
             217          (e) acquiring or maintaining property or an easement necessary for a service, facility, or
             218      improvement to be provided by the local district in accordance with a general or master plan
             219      adopted by the district;
             220          (f) constructing, installing, maintaining, owning, or operating infrastructure for the
             221      provision of a commodity, service, facility, or improvement; or
             222          (g) legally incurring debt, contracting, or otherwise being obligated to provide a
             223      commodity, service, facility, or improvement within a reasonable period of time.
             224          (2) For a local district created after May 14, 2013, the local district shall file with the
             225      state auditor a written certification:
             226          (a) declaring that the district is engaged in an activity, service, or duty described in
             227      Subsection (1);
             228          (b) identifying the activity in which the local district is engaged; and
             229          (c) no later than five years after the date on which a local district is created as reflected
             230      in the certificate of incorporation issued by the lieutenant governor under Section 67-1a-6.5 .
             231          (3) (a) The state auditor shall send a deficiency notice in accordance with Subsection
             232      (3)(c) if:
             233          (i) a local district fails to deliver a certification in accordance with Subsection (2); or
             234          (ii) the state auditor determines that, subject to Subsection (3)(b), a local district
             235      created after January 1, 2005, and before May 15, 2013, is not engaged in an activity, service,
             236      or duty required under Subsection (1) within five years after the date on which the local district
             237      is created as reflected in the certificate of incorporation issued by the lieutenant governor under
             238      Section 67-1a-6.5 or thereafter.
             239          (b) The state auditor shall make a determination described in Subsection (3)(a)(ii)
             240      based on:
             241          (i) the local district's failure to file a required annual financial report with the state
             242      auditor in accordance with Section 17B-1-639 ; or


             243          (ii) subject to Subsection (7), other credible information related to Subsection (1).
             244          (c) (i) The state auditor shall send the deficiency notice to the local district and the
             245      Utah Association of Special Districts.
             246          (ii) The deficiency notice shall state that the local district is required to file with the
             247      state auditor a written certification:
             248          (A) declaring that the district was and continues to be engaged in an activity, service,
             249      or duty described in Subsection (1) prior to the date of the deficiency notice; and
             250          (B) identifying the activity, service, or duty in which the local district is engaged.
             251          (4) If within four months of receiving a deficiency notice, a local district fails to file a
             252      written certification with the state auditor in accordance with Subsection (2) or (3)(c)(ii), the
             253      state auditor shall, in writing:
             254          (a) notify the lieutenant governor that the local district has failed to meet the
             255      requirements of this section and specify the reason for the district's failure; and
             256          (b) request that the lieutenant governor dissolve the local district in accordance with
             257      Subsections (5) and (6).
             258          (5) If the lieutenant governor receives a request to dissolve a local district from the
             259      state auditor in accordance with Subsection (4), the lieutenant governor shall:
             260          (a) issue a certification of dissolution under Section 67-1a-6.5 ; and
             261          (b) send a copy of the certification of dissolution to:
             262          (i) the state auditor;
             263          (ii) the State Tax Commission;
             264          (iii) the recorder of the county in which the local district is located, or, if the local
             265      district is located in more than one county, the recorder of each county in which the local
             266      district is located;
             267          (iv) the last known address of the local district; and
             268          (v) the Utah Association of Special Districts.
             269          (6) A local district identified in a certification of dissolution is dissolved:
             270          (a) upon recordation of the certification by the county recorder; or
             271          (b) if the local district is located within more than one county, upon recordation of the
             272      certification by the county recorder of the last county to record.
             273          (7) Notwithstanding any other provision of law, a local district shall be conclusively


             274      presumed to have been lawfully created [and], existing, and active if for two years following
             275      the district's creation under Subsection 17B-1-215 (4):
             276          [(1)] (a) the district has:
             277          [(a)] (i) levied and collected a tax; or
             278          [(b)] (ii) collected a fee, charge, or assessment for a commodity, service, facility, or
             279      improvement provided by the district; and
             280          [(2)] (b) no challenge has been filed in court to the existence or creation of the district.
             281          Section 4. Section 17B-1-303 is amended to read:
             282           17B-1-303. Term of board of trustees members -- Oath of office -- Bond.
             283          (1) (a) Except as provided in [Subsection] Subsections (1)(b) and (c), the term of each
             284      member of a board of trustees shall begin at noon on the January 1 following the member's
             285      election or appointment.
             286          (b) The term of each member of the initial board of trustees of a newly created local
             287      district shall begin:
             288          (i) upon appointment, for an appointed member; and
             289          (ii) upon the member taking the oath of office after the canvass of the election at which
             290      the member is elected, for an elected member.
             291          (c) The term of each water conservancy district board member appointed by the
             292      governor as provided in Subsection 17B-2a-1005 (2)(c) shall begin on the date on which the
             293      senate consents to the appointment.
             294          (2) (a) (i) Subject to Subsection (2)(a)(ii), the term of each member of a board of
             295      trustees shall be four years, except that approximately half the members of the initial board of
             296      trustees, chosen by lot, shall serve a two-year term so that the term of approximately half the
             297      board members expires every two years.
             298          (ii) (A) If the terms of members of the initial board of trustees of a newly created local
             299      district do not begin on January 1 because of application of Subsection (1)(b), the terms of
             300      those members shall be adjusted as necessary, subject to Subsection (2)(a)(ii)(B), to result in
             301      the terms of their successors complying with:
             302          (I) the requirement under Subsection (1)(a) for a term to begin on January 1 following
             303      a member's election or appointment; and
             304          (II) the requirement under Subsection (2)(a)(i) that terms be four years.


             305          (B) An adjustment under Subsection (2)(a)(ii)(A) may not add more than a year to or
             306      subtract more than a year from a member's term.
             307          (b) Each board of trustees member shall serve until a successor is duly elected or
             308      appointed and qualified, unless the member earlier is removed from office or resigns or
             309      otherwise leaves office.
             310          (c) If a member of a board of trustees no longer meets the qualifications of Subsection
             311      17B-1-302 (1), or if the member's term expires without a duly elected or appointed successor:
             312          (i) the member's position is considered vacant, subject to Subsection (2)(c)(ii); and
             313          (ii) the member may continue to serve until a successor is duly elected or appointed
             314      and qualified.
             315          (3) (a) (i) Before entering upon the duties of office, each member of a board of trustees
             316      shall take the oath of office specified in Utah Constitution Article IV, Section 10.
             317          (ii) An oath of office may be administered by a judge, county clerk, notary public, or
             318      the local district clerk.
             319          (b) Each oath of office shall be filed with the clerk of the local district.
             320          (c) The failure of a board of trustees member to take the oath required by Subsection
             321      (3)(a) does not invalidate any official act of that member.
             322          (4) A board of trustees member is not limited in the number of terms the member may
             323      serve.
             324          (5) Except as provided in Subsection (6), each midterm vacancy in a board of trustees
             325      position shall be filled as provided in Section 20A-1-512 .
             326          (6) (a) For purposes of this Subsection (6):
             327          (i) "Appointed official" means a person who:
             328          (A) is appointed as a member of a local district board of trustees by a county or
             329      municipality entitled to appoint a member to the board; and
             330          (B) holds an elected position with the appointing county or municipality.
             331          (ii) "Appointing entity" means the county or municipality that appointed the appointed
             332      official to the board of trustees.
             333          (b) The board of trustees shall declare a midterm vacancy for the board position held
             334      by an appointed official if:
             335          (i) during the appointed official's term on the board of trustees, the appointed official


             336      ceases to hold the elected position with the appointing entity; and
             337          (ii) the appointing entity submits a written request to the board to declare the vacancy.
             338          (c) Upon the board's declaring a midterm vacancy under Subsection (6)(b), the
             339      appointing entity shall appoint another person to fill the remaining unexpired term on the board
             340      of trustees.
             341          (7) (a) Each member of a board of trustees shall give a bond for the faithful
             342      performance of the member's duties, in the amount and with the sureties prescribed by the
             343      board of trustees.
             344          (b) The local district shall pay the cost of each bond required under Subsection (7)(a).
             345          Section 5. Section 17B-1-304 is amended to read:
             346           17B-1-304. Appointment procedures for appointed members.
             347          (1) The appointing authority may, by resolution, appoint persons to serve as members
             348      of a local district board by following the procedures established by this section.
             349          (2) (a) In any calendar year when appointment of a new local district board member is
             350      required, the appointing authority shall prepare a notice of vacancy that contains:
             351          (i) the positions that are vacant that shall be filled by appointment;
             352          (ii) the qualifications required to be appointed to those positions;
             353          (iii) the procedures for appointment that the governing body will follow in making
             354      those appointments; and
             355          (iv) the person to be contacted and any deadlines that a person shall meet who wishes
             356      to be considered for appointment to those positions.
             357          (b) The appointing authority shall:
             358          (i) post the notice of vacancy in four public places within the local district at least one
             359      month before the deadline for accepting nominees for appointment; and
             360          (ii) (A) publish the notice of vacancy:
             361          (I) in a daily newspaper of general circulation within the local district for five
             362      consecutive days before the deadline for accepting nominees for appointment; or
             363          (II) in a local weekly newspaper circulated within the local district in the week before
             364      the deadline for accepting nominees for appointment; and
             365          (B) in accordance with Section 45-1-101 for five days before the deadline for accepting
             366      nominees for appointment.


             367          (c) The appointing authority may bill the local district for the cost of preparing,
             368      printing, and publishing the notice.
             369          (3) (a) Not sooner than two months after the appointing authority is notified of the
             370      vacancy, the appointing authority shall select a person to fill the vacancy from the applicants
             371      who meet the qualifications established by law.
             372          (b) The appointing authority shall:
             373          (i) comply with Title 52, Chapter 4, Open and Public Meetings Act, in making the
             374      appointment;
             375          (ii) allow any interested persons to be heard; and
             376          (iii) adopt a resolution appointing a person to the local district board.
             377          (c) If no candidate for appointment to fill the vacancy receives a majority vote of the
             378      appointing authority, the appointing authority shall select the appointee from the two top
             379      candidates by lot.
             380          (4) Persons appointed to serve as members of the local district board serve four-year
             381      terms, but may be removed for cause at any time after a hearing by two-thirds vote of the
             382      appointing body.
             383          (5) (a) At the end of each board member's term, the position is considered vacant and
             384      the appointing authority may either reappoint the old board member or appoint a new member
             385      after following the appointment procedures established in this section.
             386          (b) Notwithstanding Subsection (5)(a), a board member may continue to serve until a
             387      successor is duly elected or appointed and qualified in accordance with Subsection
             388      17B-1-303 (2)(b).
             389          (6) Notwithstanding any other provision of this section, if the appointing authority
             390      appoints one of its own members, it need not comply with Subsection (2) or (3).
             391          Section 6. Section 17B-1-306 is amended to read:
             392           17B-1-306. Local district board -- Election procedures.
             393          (1) Except as provided in Subsection (11), each elected board member shall be selected
             394      as provided in this section.
             395          (2) (a) Each election of a local district board member shall be held:
             396          (i) at the same time as the municipal general election; and
             397          (ii) at polling places designated by the county clerk in consultation with the local


             398      district for each county in which the local district is located, which polling places shall coincide
             399      with municipal general election polling places whenever feasible.
             400          (b) The county clerk may consolidate two or more polling places to enable voters from
             401      more than one district to vote at one consolidated polling place.
             402          [(b)] (c) (i) Subject to Subsections (4)(f) and (g), the number of polling places under
             403      Subsection (2)(a)(ii) in an election of board members of an irrigation district shall be one
             404      polling place per division of the district, designated by the district board.
             405          (ii) Each polling place designated by an irrigation district board under Subsection
             406      (2)[(b)](c)(i) shall coincide with a polling place designated by the county clerk under
             407      Subsection (2)(a)(ii).
             408          (3) (a) The clerk of each local district with a board member position to be filled at the
             409      next municipal general election shall provide notice of:
             410          (i) each elective position of the local district to be filled at the next municipal general
             411      election;
             412          (ii) the constitutional and statutory qualifications for each position; and
             413          (iii) the dates and times for filing a declaration of candidacy.
             414          (b) The notice required under Subsection (3)(a) shall be:
             415          (i) posted in at least five public places within the local district at least 10 days before
             416      the first day for filing a declaration of candidacy; or
             417          (ii) (A) published in a newspaper of general circulation within the local district at least
             418      three but no more than 10 days before the first day for filing a declaration of candidacy; and
             419          (B) published, in accordance with Section 45-1-101 , for 10 days before the first day for
             420      filing a declaration of candidacy.
             421          (4) (a) To become a candidate for an elective local district board position, the
             422      prospective candidate shall file a declaration of candidacy in person with the local district,
             423      during office hours and not later than the close of normal office hours between June 1 and June
             424      15 of any odd-numbered year.
             425          (b) When June 15 is a Saturday, Sunday, or holiday, the filing time shall be extended
             426      until the close of normal office hours on the following regular business day.
             427          (c) (i) Before the filing officer may accept any declaration of candidacy, the filing
             428      officer shall:


             429          (A) read to the prospective candidate the constitutional and statutory qualification
             430      requirements for the office that the candidate is seeking; and
             431          (B) require the candidate to state whether or not the candidate meets those
             432      requirements.
             433          (ii) If the prospective candidate does not meet the qualification requirements for the
             434      office, the filing officer may not accept the declaration of candidacy.
             435          (iii) If it appears that the prospective candidate meets the requirements of candidacy,
             436      the filing officer shall accept the declaration of candidacy.
             437          (d) The declaration of candidacy shall substantially comply with the following form:
             438          "I, (print name) ____________, being first duly sworn, say that I reside at (Street)
             439      ____________, City of ________________, County of ________________, State of Utah,
             440      (Zip Code) ______, (Telephone Number, if any)____________; that I meet the qualifications
             441      for the office of board of trustees member for _______________________ (state the name of
             442      the local district); that I am a candidate for that office to be voted upon at the next election, and
             443      I hereby request that my name be printed upon the official ballot for that election.
             444          (Signed) _________________________________________
             445          Subscribed and sworn to (or affirmed) before me by ____________ on this ______ day
             446      of ____________, ____.
             447          (Signed) ________________________
             448              (Clerk or Notary Public)"
             449          (e) Each person wishing to become a valid write-in candidate for an elective local
             450      district board position is governed by Section 20A-9-601 .
             451          (f) If at least one person does not file a declaration of candidacy as required by this
             452      section, a person shall be appointed to fill that board position by following the procedures and
             453      requirements for appointment established in Section 20A-1-512 .
             454          (g) If only one candidate files a declaration of candidacy and there is no write-in
             455      candidate who complies with Section 20A-9-601 , the board, in accordance with Section
             456      20A-1-206 , may:
             457          (i) consider the candidate to be elected to the position; and
             458          (ii) cancel the election.
             459          (5) (a) A primary election may be held if:


             460          (i) the election is authorized by the local district board; and
             461          (ii) the number of candidates for a particular local board position or office exceeds
             462      twice the number of persons needed to fill that position or office.
             463          (b) The primary election shall be conducted:
             464          (i) on the same date as the municipal primary election, as provided for in Section
             465      20A-1-201.5 ; and
             466          (ii) according to the procedures for municipal primary elections provided under Title
             467      20A, Election Code.
             468          (6) (a) Except as provided in Subsection (6)(c), the local district clerk shall certify the
             469      candidate names to the clerk of each county in which the local district is located no later than
             470      July 20 of the municipal election year.
             471          (b) (i) Except as provided in Subsection (6)(c) and in accordance with Section
             472      20A-6-305 , the clerk of each county in which the local district is located shall coordinate the
             473      placement of the name of each candidate for local district office in the nonpartisan section of
             474      the municipal general election ballot with the municipal election clerk.
             475          (ii) If consolidation of the local district election ballot with the municipal general
             476      election ballot is not feasible, the county clerk shall provide for a separate local district election
             477      ballot to be administered by poll workers at polling locations designated under Subsection (2).
             478          (c) (i) Subsections (6)(a) and (b) do not apply to an election of a member of the board
             479      of an irrigation district established under Chapter 2a, Part 5, Irrigation District Act.
             480          (ii) (A) Subject to Subsection (6)(c)(ii)(B), the board of each irrigation district shall
             481      prescribe the form of the ballot for each board member election.
             482          (B) Each ballot for an election of an irrigation district board member shall be in a
             483      nonpartisan format.
             484          (C) The name of each candidate shall be placed on the ballot in the order specified
             485      under Section 20A-6-305 .
             486          (7) (a) Each voter at an election for a board of trustees member of a local district shall:
             487          (i) be a registered voter within the district, except for an election of:
             488          (A) an irrigation district board of trustees member; or
             489          (B) a basic local district board of trustees member who is elected by property owners;
             490      and


             491          (ii) meet the requirements to vote established by the district.
             492          (b) Each voter may vote for as many candidates as there are offices to be filled.
             493          (c) The candidates who receive the highest number of votes are elected.
             494          (8) Except as otherwise provided by this section, the election of local district board
             495      members is governed by Title 20A, Election Code.
             496          (9) (a) A person elected to serve on a local district board shall serve a four-year term,
             497      beginning at noon on the January 1 after the person's election.
             498          (b) A person elected shall be sworn in as soon as practical after January 1.
             499          (10) (a) Except as provided in Subsection (10)(b), each local district shall reimburse
             500      the county or municipality holding an election under this section for the costs of the election
             501      attributable to that local district.
             502          (b) Each irrigation district shall bear its own costs of each election it holds under this
             503      section.
             504          (11) This section does not apply to an improvement district that provides electric or gas
             505      service.
             506          (12) Except as provided in Subsection 20A-3-605 (1)(b), the provisions of Title 20A,
             507      Chapter 3, Part 6, Early Voting, do not apply to an election under this section.
             508          Section 7. Section 17B-1-307 is amended to read:
             509           17B-1-307. Annual compensation -- Per diem compensation -- Participation in
             510      group insurance plan -- Reimbursement of expenses.
             511          (1) (a) Except as provided in Subsection 17B-1-308 (1)(e), a member of a board of
             512      trustees may receive compensation for service on the board, as determined by the board of
             513      trustees.
             514          (b) The amount of compensation under this Subsection (1) may not exceed $5,000 per
             515      year.
             516          (c) (i) As determined by the board of trustees, a member of the board of trustees may
             517      participate in a group insurance plan provided to employees of the local district on the same
             518      basis as employees of the local district.
             519          (ii) The amount that the local district pays to provide a member with coverage under a
             520      group insurance plan shall be included as part of the member's compensation for purposes of
             521      Subsection (1)(b).


             522          (d) The amount that a local district pays employer-matching employment taxes, if a
             523      member of the board of trustees is treated as an employee for federal tax purposes, does not
             524      constitute compensation under Subsection (1).
             525          (2) In addition to the compensation provided under Subsection (1), the board of
             526      trustees may elect to allow a member to receive per diem and travel expenses for up to 12
             527      meetings or activities per year in accordance with:
             528          (a) Section 63A-3-106 ;
             529          (b) Section 63A-3-107 ; and
             530          (c) rules made by the Division of Finance pursuant to Sections 63A-3-106 and
             531      63A-3-107 .
             532          Section 8. Section 17B-1-310 is amended to read:
             533           17B-1-310. Quorum of board of trustees -- Meetings of the board.
             534          (1) (a) (i) Except as provided in Subsection (1)(b), a majority of the board of trustees
             535      constitutes a quorum for the transaction of board business, and action by a majority of a
             536      quorum constitutes action of the board.
             537          (ii) Except as otherwise required by law, an otherwise valid action of the board is not
             538      made invalid because of the method chosen by the board to take or memorialize the action.
             539          (b) (i) Subject to Subsection (1)(b)(ii), a board may adopt bylaws or other rules that
             540      require more than a majority to constitute a quorum or that require action by more than a
             541      majority of a quorum to constitute action by the board.
             542          (ii) [Except for board action to dispose of real property owned by the local district,
             543      board] A board with five or more members may not adopt bylaws or rules [may not] that
             544      require a vote of more than two-thirds [vote] of the board to constitute board action except for
             545      a board action to dispose of real property owned by the local district.
             546          (2) The board of trustees shall hold such regular and special meetings as the board
             547      determines at a location that the board determines.
             548          (3) (a) Each meeting of the board of trustees shall comply with Title 52, Chapter 4,
             549      Open and Public Meetings Act.
             550          (b) Subject to Subsection (3)(c), a board of trustees shall:
             551          (i) adopt rules of order and procedure to govern a public meeting of the board of
             552      trustees;


             553          (ii) conduct a public meeting in accordance with the rules of order and procedure
             554      described in Subsection (3)(b)(i); and
             555          (iii) make the rules of order and procedure described in Subsection (3)(b)(i) available
             556      to the public:
             557          (A) at each meeting of the board of trustees; and
             558          (B) on the local district's public website, if available.
             559          (c) Subsection (3)(b) does not affect the board of trustees' duty to comply with Title 52,
             560      Chapter 4, Open and Public Meetings Act.
             561          Section 9. Section 17B-1-311 is amended to read:
             562           17B-1-311. Board member prohibited from district employment -- Exception.
             563          (1) No elected or appointed member of the board of trustees of a local district may,
             564      while serving on the board, be employed by the district, whether as an employee or under a
             565      contract.
             566          (2) No person employed by a local district, whether as an employee or under a contract,
             567      may serve on the board of that local district.
             568          (3) A local district is not in violation of a prohibition described in Subsection (1) or (2)
             569      if the local district:
             570          (a) treats a member of a board of trustees as an employee for income tax purposes; and
             571          (b) complies with the compensation limits of Section 17B-1-307 for purposes of that
             572      member.
             573          [(3)] (4) This section does not apply to a local district if:
             574          (a) fewer than 3,000 people live within 40 miles of the primary place of employment,
             575      measured over all weather public roads; and
             576          (b) with respect to the employment of a board of trustees member under Subsection
             577      (1):
             578          (i) the job opening has had reasonable public notice; and
             579          (ii) the person employed is the best qualified candidate for the position.
             580          Section 10. Section 17B-1-639 is amended to read:
             581           17B-1-639. Annual financial reports -- Audit reports.
             582          (1) Within 180 days after the close of each fiscal year, the district shall prepare an
             583      annual financial report in conformity with generally accepted accounting principles as


             584      prescribed in the Uniform Accounting Manual for Local Districts.
             585          (2) The requirement under Subsection (1) to prepare an annual financial report may be
             586      satisfied by presentation of the audit report furnished by the [independent] auditor.
             587          (3) Copies of the annual financial report or the audit report furnished by the
             588      [independent] auditor shall be filed with the state auditor and shall be filed as a public
             589      document in the district office.
             590          Section 11. Section 17B-1-640 is amended to read:
             591           17B-1-640. Audits required.
             592          (1) [Independent audits of all local districts are] An audit of each local district is
             593      required to be performed in conformity with Title 51, Chapter 2a, Accounting Reports from
             594      Political Subdivisions, Interlocal Organizations, and Other Local Entities Act.
             595          (2) The board of trustees shall appoint an [independent] auditor for the purpose of
             596      complying with the requirements of this section and with Title 51, Chapter 2a, Accounting
             597      Reports from Political Subdivisions, Interlocal Organizations, and Other Local Entities Act.
             598          Section 12. Section 17B-2a-813 is amended to read:
             599           17B-2a-813. Rights, benefits, and protective conditions for employees of a public
             600      transit district -- Strike prohibited -- Employees of an acquired transit system.
             601          (1) The rights, benefits, and other employee protective conditions and remedies of
             602      Section 13(c) of the Urban Mass Transportation Act of 1964, 49 U.S.C. Sec. 5333(b), as
             603      determined by the Secretary of Labor, apply to a public transit district's establishment and
             604      operation of a public transit service or system.
             605          (2) (a) Employees of a public transit system established and operated by a public transit
             606      district have the right to:
             607          (i) self-organization;
             608          (ii) form, join, or assist labor organizations; and
             609          (iii) bargain collectively through representatives of their own choosing.
             610          (b) Employees of a public transit district and labor organizations may not join in a
             611      strike against the public transit system operated by the public transit district.
             612          (c) Each public transit district shall:
             613          (i) recognize and bargain exclusively with any labor organization representing a
             614      majority of the district's employees in an appropriate unit with respect to wages, salaries, hours,


             615      working conditions, and welfare, pension, and retirement provisions; and
             616          (ii) upon reaching agreement with the labor organization, enter into and execute a
             617      written contract incorporating the agreement.
             618          (3) If a public transit district acquires an existing public transit system:
             619          (a) all employees of the acquired system who are necessary for the operation of the
             620      acquired system, except executive and administrative officers and employees, shall be:
             621          (i) transferred to and appointed employees of the acquiring public transit district; and
             622          (ii) given sick leave, seniority, vacation, and pension or retirement credits in
             623      accordance with the acquired system's records;
             624          (b) members and beneficiaries of a pension or retirement plan or other program of
             625      benefits that the acquired system has established shall continue to have rights, privileges,
             626      benefits, obligations, and status with respect to that established plan or program; and
             627          (c) the public transit district may establish, amend, or modify, by agreement with
             628      employees or their authorized representatives, the terms, conditions, and provisions of a
             629      pension or retirement plan or of an amendment or modification of a pension or retirement plan.
             630          (4) A pension administrator for a retirement plan sponsored by a public transit district
             631      or a person designated by the administrator shall maintain retirement records in accordance
             632      with Subsection 49-11-618 (2).
             633          Section 13. Section 17D-1-201 is amended to read:
             634           17D-1-201. Services that a special service district may be created to provide.
             635          As provided in this part, a county or municipality may create a special service district to
             636      provide any combination of the following services:
             637          (1) water;
             638          (2) sewerage;
             639          (3) drainage;
             640          (4) flood control;
             641          (5) garbage collection and disposal;
             642          (6) health care;
             643          (7) transportation, including the receipt of federal secure rural school funds under
             644      Section 51-9-603 for the purposes of constructing, improving, repairing, or maintaining public
             645      roads;


             646          (8) recreation;
             647          (9) fire protection, including:
             648          (a) emergency medical services, ambulance services, and search and rescue services, if
             649      fire protection service is also provided;
             650          (b) Firewise Communities programs and the development of community wildfire
             651      protection plans; and
             652          (c) the receipt of federal secure rural school funds as provided under Section 51-9-603
             653      for the purposes of carrying out Firewise Communities programs, developing community
             654      wildfire protection plans, and performing emergency services, including firefighting on federal
             655      land and other services authorized under this Subsection (9);
             656          (10) providing, operating, and maintaining correctional and rehabilitative facilities and
             657      programs for municipal, state, and other detainees and prisoners;
             658          (11) street lighting;
             659          (12) consolidated 911 and emergency dispatch;
             660          (13) animal shelter and control;
             661          (14) receiving federal mineral lease funds under Title 59, Chapter 21, Mineral Lease
             662      Funds, and expending those funds to provide construction and maintenance of public facilities,
             663      traditional governmental services, and planning, as a means for mitigating impacts from
             664      extractive mineral industries;
             665          (15) in a county of the first class, extended police protection; [or]
             666          (16) control or abatement of earth movement or a landslide[.]; or
             667          (17) cemetery.
             668          Section 14. Section 20A-1-512 is amended to read:
             669           20A-1-512. Midterm vacancies on local district boards.
             670          (1) (a) Whenever a vacancy occurs on any local district board for any reason, a
             671      replacement to serve out the unexpired term shall be appointed as provided in this section by:
             672          (i) the local district board, if the person vacating the position was elected; or
             673          (ii) the appointing authority, as defined in Section 17B-1-102 , if the person vacating
             674      the position was appointed.
             675          (b) [Before] Except as provided in Subsection (1)(c), before acting to fill the vacancy,
             676      the local district board or appointing authority shall:


             677          (i) give public notice of the vacancy at least two weeks before the local district board
             678      or appointing authority meets to fill the vacancy; and
             679          (ii) identify, in the notice:
             680          (A) the date, time, and place of the meeting where the vacancy will be filled; and
             681          (B) the person to whom a person interested in being appointed to fill the vacancy may
             682      submit his name for consideration and any deadline for submitting it.
             683          (c) An appointing authority is not subject to Subsection (1)(b) if the appointing
             684      authority appoints one of its own members.
             685          (2) If the local district board fails to appoint a person to complete an elected board
             686      member's term within 90 days, the legislative body of the county or municipality that created
             687      the local district shall fill the vacancy following the procedure set forth for a local district in
             688      Subsection (1)(b).
             689          Section 15. Section 62A-5-103.5 is amended to read:
             690           62A-5-103.5. Disbursal of public funds -- Background check of a direct service
             691      worker.
             692          (1) For purposes of this section:
             693          (a) "directly supervised" means that the person being supervised is under the
             694      uninterrupted visual and auditory surveillance of the person doing the supervising; and
             695          (b) "office" is as defined in Section 62A-2-101 .
             696          (2) Subject to Subsection (4), public funds may not be disbursed to pay a direct service
             697      worker for personal services rendered to a person, unless:
             698          (a) subject to [Subsection (5)] Subsections (5) and (7), the direct service worker is
             699      approved by the office to have direct access and provide services to children or vulnerable
             700      adults pursuant to Section 62A-2-120 ;
             701          (b) except as provided in Subsection (5):
             702          (i) during the time that the direct service worker renders the services described in this
             703      Subsection (2), the direct service worker who renders the services is directly supervised by a
             704      direct service worker who is approved by the office to have direct access and provide services
             705      to children or vulnerable adults pursuant to Section 62A-2-120 ;
             706          (ii) the direct service worker who renders the services described in this Subsection (2)
             707      has submitted the information required for a background check pursuant to Section 62A-2-120 ;


             708      and
             709          (iii) the office has not determined whether to approve the direct service worker
             710      described in Subsection (2)(b)(ii) to have direct access and provide services to children or
             711      vulnerable adults; or
             712          (c) except as provided in Subsection (5), the direct service worker:
             713          (i) (A) is a direct ancestor or descendent of the person to whom the services are
             714      rendered, but is not the person's parent;
             715          (B) is the aunt, uncle, or sibling of the person to whom the services are rendered; or
             716          (C) (I) has submitted the information required for a background check pursuant to
             717      Section 62A-2-120 ; and
             718          (II) the office has not determined whether to approve the direct service worker to have
             719      direct access and provide services to children or vulnerable adults; and
             720          (ii) is not listed in:
             721          (A) the Licensing Information System of the Division of Child and Family Services
             722      created by Section 62A-4a-1006 ;
             723          (B) the statewide database of the Division of Aging and Adult Services created by
             724      Section 62A-3-311.1 as having a substantiated finding of abuse, neglect, or exploitation; or
             725          (C) juvenile court records as having a substantiated finding under Section 78A-6-323
             726      that the direct service worker committed a severe type of child abuse or neglect.
             727          (3) For purposes of Subsection (2), the office shall conduct a background check of a
             728      direct service worker:
             729          (a) except as provided in Subsection (2)(b) or (c), before public funds are disbursed to
             730      pay the direct service worker for the personal services described in Subsection (2); and
             731          (b) using the same procedures established for a background check of an applicant for
             732      an initial license under Section 62A-2-120 .
             733          (4) The background check and the approval determination described in this section
             734      shall be conducted for a direct service worker on an annual basis.
             735          (5) Notwithstanding Subsections (1) through (4), and except as provided in Subsection
             736      (6), a child who is in the legal custody of the department or any of the department's divisions
             737      may not be placed with a direct service worker unless, before the child is placed with the direct
             738      service worker, the direct service worker passes a background check, pursuant to the


             739      requirements of Section 62A-2-120 , that includes:
             740          (a) submitting the direct service worker's fingerprints for an FBI national criminal
             741      history records check, through the Criminal Investigations and Technical Services Division;
             742          (b) checking the child abuse and neglect registry in each state where the direct service
             743      worker resided in the five years immediately preceding the day on which the direct service
             744      worker applied to be a direct service worker; and
             745          (c) checking the child abuse and neglect registry in each state where each adult living
             746      in the home where the child will be placed resided in the five years immediately preceding the
             747      day on which the direct service worker applied to be a direct service worker.
             748          (6) The requirements under Subsection (5) do not apply to the extent that federal law or
             749      rule permits otherwise.
             750          (7) If a public transit district, as described in Title 17B, Chapter 2a, Part 8, Public
             751      Transit District Act, contracts with the division to provide services:
             752          (a) the provisions of Subsections (2) through (5) are not applicable to a direct service
             753      worker employed by the public transit district; and
             754          (b) the division may not reimburse the public transit district for services provided
             755      unless a direct service worker hired or transferred internally after July 1, 2013, by the public
             756      transit district to drive a paratransit route:
             757          (i) is approved by the office to have direct access to children and vulnerable adults in
             758      accordance with Section 62A-2-120 ; and
             759          (ii) is subject to a background check established in a statute or rule governing a public
             760      transit district or other public transit district policy.


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