H.B. 382 Enrolled

             1     

LIMITED PURPOSE LOCAL GOVERNMENT ENTITIES

             2     
AMENDMENTS

             3     
2014 GENERAL SESSION

             4     
STATE OF UTAH

             5     
Chief Sponsor: Brad L. Dee

             6     
Senate Sponsor: Jerry W. Stevenson

             7     
             8      LONG TITLE
             9      General Description:
             10          This bill amends provisions related to a special service district.
             11      Highlighted Provisions:
             12          This bill:
             13          .    addresses appointment of an improvement district board of trustees;
             14          .    enacts language clarifying that a special service district is a political subdivision of
             15      the state similar to a local district; and
             16          .    makes technical corrections.
             17      Money Appropriated in this Bill:
             18          None
             19      Other Special Clauses:
             20          None
             21      Utah Code Sections Affected:
             22      AMENDS:
             23           17B-2a-404 , as last amended by Laws of Utah 2012, Chapter 97
             24           17D-1-103 , as enacted by Laws of Utah 2008, Chapter 360
             25     
             26      Be it enacted by the Legislature of the state of Utah:
             27          Section 1. Section 17B-2a-404 is amended to read:
             28           17B-2a-404. Improvement district board of trustees.
             29          (1) As used in this section:


             30          (a) "County district" means an improvement district that does not include within its
             31      boundaries any territory of a municipality.
             32          (b) "County member" means a member of a board of trustees of a county district.
             33          (c) "Electric district" means an improvement district that was created for the purpose of
             34      providing electric service.
             35          (d) "Included municipality" means a municipality whose boundaries are entirely
             36      contained within but do not coincide with the boundaries of an improvement district.
             37          (e) "Municipal district" means an improvement district whose boundaries coincide
             38      with the boundaries of a single municipality.
             39          (f) "Regular district" means an improvement district that is not a county district,
             40      electric district, or municipal district.
             41          (g) "Remaining area" means the area of a regular district that:
             42          (i) is outside the boundaries of an included municipality; and
             43          (ii) includes the area of an included municipality whose legislative body elects, under
             44      Subsection (4)(a)(ii), not to appoint a member to the board of trustees of the regular district.
             45          (h) "Remaining area member" means a member of a board of trustees of a regular
             46      district who is appointed, or, if applicable, elected to represent the remaining area of the
             47      district.
             48          (2) The legislative body of the municipality included within a municipal district may:
             49          (a) elect, at the time of the creation of the district, to be the board of trustees of the
             50      district; and
             51          (b) adopt at any time a resolution providing for:
             52          (i) the election of board of trustees members, as provided in Section 17B-1-306 ; or
             53          (ii) the appointment of board of trustees members, as provided in Section 17B-1-304 .
             54          (3) (a) The legislative body of a county whose unincorporated area is partly or
             55      completely within a county district may:
             56          [(a)] (i) elect, at the time of the creation of the district, to be the board of trustees of the
             57      district, even though a member of the legislative body of the county may not meet the


             58      requirements of Subsection 17B-1-302 (1)(a); [and]
             59          [(b)] (ii) adopt at any time a resolution providing for:
             60          [(i)] (A) the election of board of trustees members, as provided in Section 17B-1-306 ;
             61      or
             62          [(ii)] (B) the appointment of board of trustees members, as provided in Section
             63      17B-1-304 [.]; and
             64          (iii) if the conditions of Subsection (3)(b) are met, appoint a member of the legislative
             65      body of the county to the board of trustees, except that the legislative body of the county may
             66      not appoint more than three members of the legislative body of the county to the board of
             67      trustees.
             68          (b) A legislative body of a county whose unincorporated area is partly or completely
             69      within a county district may take an action under Subsection (3)(a)(iii) if:
             70          (i) more than 35% of the residences within a county district that receive service from
             71      the district are seasonally occupied homes, as defined in Subsection 17B-1-302 (1)(b)(i)(B);
             72          (ii) the board of trustees are appointed by the legislative body of the county; and
             73          (iii) there are at least two appointed board members who meet the requirements of
             74      Subsection 17B-1-302 (1), except that a member of the legislative body of the county need not
             75      satisfy the requirements of Subsection 17B-1-302 (1).
             76          (4) (a) (i) Except as provided in Subsection (4)(a)(ii), the legislative body of each
             77      included municipality shall each appoint one member to the board of trustees of a regular
             78      district.
             79          (ii) The legislative body of an included municipality may elect not to appoint a member
             80      to the board under Subsection (4)(a)(i).
             81          (b) Except as provided in Subsection (5), the legislative body of each county whose
             82      boundaries include a remaining area shall appoint all other members to the board of trustees of
             83      a regular district.
             84          (5) Notwithstanding Subsection (3), each remaining area member of a regular district
             85      and each county member of a county district shall be elected, as provided in Section


             86      17B-1-306 , if:
             87          (a) the petition or resolution initiating the creation of the district provides for remaining
             88      area or county members to be elected;
             89          (b) the district holds an election to approve the district's issuance of bonds;
             90          (c) for a regular district, an included municipality elects, under Subsection (4)(a)(ii),
             91      not to appoint a member to the board of trustees; or
             92          (d) (i) at least 90 days before the municipal general election, a petition is filed with the
             93      district's board of trustees requesting remaining area members or county members, as the case
             94      may be, to be elected; and
             95          (ii) the petition is signed by registered voters within the remaining area or county
             96      district, as the case may be, equal in number to at least 10% of the number of registered voters
             97      within the remaining area or county district, respectively, who voted in the last gubernatorial
             98      election.
             99          (6) Subject to Section 17B-1-302 , the number of members of a board of trustees of a
             100      regular district shall be:
             101          (a) the number of included municipalities within the district, if:
             102          (i) the number is an odd number; and
             103          (ii) the district does not include a remaining area;
             104          (b) the number of included municipalities plus one, if the number of included
             105      municipalities within the district is even; and
             106          (c) the number of included municipalities plus two, if:
             107          (i) the number of included municipalities is odd; and
             108          (ii) the district includes a remaining area.
             109          (7) (a) Except as provided in Subsection (7)(b), each remaining area member of the
             110      board of trustees of a regular district shall reside within the remaining area.
             111          (b) Notwithstanding Subsection (7)(a) and subject to Subsection (7)(c), each remaining
             112      area member shall be chosen from the district at large if:
             113          (i) the population of the remaining area is less than 5% of the total district population;


             114      or
             115          (ii) (A) the population of the remaining area is less than 50% of the total district
             116      population; and
             117          (B) the majority of the members of the board of trustees are remaining area members.
             118          (c) Application of Subsection (7)(b) may not prematurely shorten the term of any
             119      remaining area member serving the remaining area member's elected or appointed term on May
             120      11, 2010.
             121          (8) If the election of remaining area or county members of the board of trustees is
             122      required because of a bond election, as provided in Subsection (5)(b):
             123          (a) a person may file a declaration of candidacy if:
             124          (i) the person resides within:
             125          (A) the remaining area, for a regular district; or
             126          (B) the county district, for a county district; and
             127          (ii) otherwise qualifies as a candidate;
             128          (b) the board of trustees shall, if required, provide a ballot separate from the bond
             129      election ballot, containing the names of candidates and blanks in which a voter may write
             130      additional names; and
             131          (c) the election shall otherwise be governed by Title 20A, Election Code.
             132          (9) (a) (i) This Subsection (9) applies to the board of trustees members of an electric
             133      district.
             134          (ii) Subsections (2) through (8) do not apply to an electric district.
             135          (b) The legislative body of the county in which an electric district is located may
             136      appoint the initial board of trustees of the electric district as provided in Section 17B-1-304 .
             137          (c) After the initial board of trustees is appointed as provided in Subsection (9)(b), each
             138      member of the board of trustees of an electric district shall be elected by persons using
             139      electricity from and within the district.
             140          (d) Each member of the board of trustees of an electric district shall be a user of
             141      electricity from the district and, if applicable, the division of the district from which elected.


             142          (e) The board of trustees of an electric district may be elected from geographic
             143      divisions within the district.
             144          (f) A municipality within an electric district is not entitled to automatic representation
             145      on the board of trustees.
             146          Section 2. Section 17D-1-103 is amended to read:
             147           17D-1-103. Special service district status, powers, and duties -- Limitation on
             148      districts providing jail service.
             149          (1) A special service district:
             150          (a) is:
             151          (i) a body corporate and politic with perpetual succession, separate and distinct from
             152      the county or municipality that creates it;
             153          [(b) is ] (ii) a quasi-municipal corporation; and
             154          (iii) a political subdivision of the state; and
             155          [(c)] (b) may sue and be sued.
             156          (2) A special service district may:
             157          (a) exercise the power of eminent domain possessed by the county or municipality that
             158      creates the special service district;
             159          (b) enter into a contract that the governing authority considers desirable to carry out
             160      special service district functions, including a contract:
             161          (i) with the United States or an agency of the United States, the state, an institution of
             162      higher education, a county, a municipality, a school district, a local district, another special
             163      service district, or any other political subdivision of the state; or
             164          (ii) that includes provisions concerning the use, operation, and maintenance of special
             165      service district facilities and the collection of fees or charges with respect to commodities,
             166      services, or facilities that the district provides;
             167          (c) acquire or construct facilities;
             168          (d) acquire real or personal property, or an interest in real or personal property,
             169      including water and water rights, whether by purchase, lease, gift, devise, bequest, or


             170      otherwise, and whether the property is located inside or outside the special service district, and
             171      own, hold, improve, use, finance, or otherwise deal in and with the property or property right;
             172          (e) sell, convey, lease, exchange, transfer, or otherwise dispose of all or any part of the
             173      special service district's property or assets, including water and water rights;
             174          (f) mortgage, pledge, or otherwise encumber all or any part of the special service
             175      district's property or assets, including water and water rights;
             176          (g) enter into a contract with respect to the use, operation, or maintenance of all or any
             177      part of the special service district's property or assets, including water and water rights;
             178          (h) accept a government grant or loan and comply with the conditions of the grant or
             179      loan;
             180          (i) use an officer, employee, property, equipment, office, or facility of the county or
             181      municipality that created the special service district, subject to reimbursement as provided in
             182      Subsection (3);
             183          (j) employ one or more officers, employees, or agents, including one or more
             184      engineers, accountants, attorneys, or financial consultants, and establish their compensation;
             185          (k) designate an assessment area and levy an assessment as provided in Title 11,
             186      Chapter 42, Assessment Area Act;
             187          (l) contract with a franchised, certificated public utility for the construction and
             188      operation of an electrical service distribution system within the special service district;
             189          (m) borrow money and incur indebtedness;
             190          (n) as provided in Part 5, Special Service District Bonds, issue bonds for the purpose of
             191      acquiring, constructing, and equipping any of the facilities required for the services the special
             192      service district is authorized to provide, including:
             193          (i) bonds payable in whole or in part from taxes levied on the taxable property in the
             194      special service district;
             195          (ii) bonds payable from revenues derived from the operation of revenue-producing
             196      facilities of the special service district;
             197          (iii) bonds payable from both taxes and revenues;


             198          (iv) guaranteed bonds, payable in whole or in part from taxes levied on the taxable
             199      property in the special service district;
             200          (v) tax anticipation notes;
             201          (vi) bond anticipation notes;
             202          (vii) refunding bonds;
             203          (viii) special assessment bonds; and
             204          (ix) bonds payable in whole or in part from mineral lease payments as provided in
             205      Section 11-14-308 ;
             206          (o) except as provided in Subsection (4), impose fees or charges or both for
             207      commodities, services, or facilities that the special service district provides;
             208          (p) provide to an area outside the special service district's boundary, whether inside or
             209      outside the state, a service that the special service district is authorized to provide within its
             210      boundary, if the governing body makes a finding that there is a public benefit to providing the
             211      service to the area outside the special service district's boundary;
             212          (q) provide other services that the governing body determines will more effectively
             213      carry out the purposes of the special service district; and
             214          (r) adopt an official seal for the special service district.
             215          (3) Each special service district that uses an officer, employee, property, equipment,
             216      office, or facility of the county or municipality that created the special service district shall
             217      reimburse the county or municipality a reasonable amount for what the special service district
             218      uses.
             219          (4) (a) A special service district that provides jail service as provided in Subsection
             220      17D-1-201 (10) may not impose a fee or charge for the service it provides.
             221          (b) Subsection (4)(a) may not be construed to limit a special service district that
             222      provides jail service from:
             223          (i) entering into a contract with the federal government, the state, or a political
             224      subdivision of the state to provide jail service for compensation; or
             225          (ii) receiving compensation for jail service it provides under a contract described in


             226      Subsection (4)(b)(i).


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