First Substitute H.B. 382

Representative Brad L. Dee proposes the following substitute bill:


             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          .    enacts language clarifying that a special service district is a political subdivision of
             14      the state similar to a local district; and
             15          .    makes technical corrections.
             16      Money Appropriated in this Bill:
             17          None
             18      Other Special Clauses:
             19          None
             20      Utah Code Sections Affected:
             21      AMENDS:
             22           17D-1-103 , as enacted by Laws of Utah 2008, Chapter 360
             23     
             24      Be it enacted by the Legislature of the state of Utah:
             25          Section 1. Section 17D-1-103 is amended to read:


             26           17D-1-103. Special service district status, powers, and duties -- Limitation on
             27      districts providing jail service.
             28          (1) A special service district:
             29          (a) is:
             30          (i) a body corporate and politic with perpetual succession, separate and distinct from
             31      the county or municipality that creates it;
             32          [(b) is ] (ii) a quasi-municipal corporation; and
             33          (iii) a political subdivision of the state; and
             34          [(c)] (b) may sue and be sued.
             35          (2) A special service district may:
             36          (a) exercise the power of eminent domain possessed by the county or municipality that
             37      creates the special service district;
             38          (b) enter into a contract that the governing authority considers desirable to carry out
             39      special service district functions, including a contract:
             40          (i) with the United States or an agency of the United States, the state, an institution of
             41      higher education, a county, a municipality, a school district, a local district, another special
             42      service district, or any other political subdivision of the state; or
             43          (ii) that includes provisions concerning the use, operation, and maintenance of special
             44      service district facilities and the collection of fees or charges with respect to commodities,
             45      services, or facilities that the district provides;
             46          (c) acquire or construct facilities;
             47          (d) acquire real or personal property, or an interest in real or personal property,
             48      including water and water rights, whether by purchase, lease, gift, devise, bequest, or
             49      otherwise, and whether the property is located inside or outside the special service district, and
             50      own, hold, improve, use, finance, or otherwise deal in and with the property or property right;
             51          (e) sell, convey, lease, exchange, transfer, or otherwise dispose of all or any part of the
             52      special service district's property or assets, including water and water rights;
             53          (f) mortgage, pledge, or otherwise encumber all or any part of the special service
             54      district's property or assets, including water and water rights;
             55          (g) enter into a contract with respect to the use, operation, or maintenance of all or any
             56      part of the special service district's property or assets, including water and water rights;


             57          (h) accept a government grant or loan and comply with the conditions of the grant or
             58      loan;
             59          (i) use an officer, employee, property, equipment, office, or facility of the county or
             60      municipality that created the special service district, subject to reimbursement as provided in
             61      Subsection (3);
             62          (j) employ one or more officers, employees, or agents, including one or more
             63      engineers, accountants, attorneys, or financial consultants, and establish their compensation;
             64          (k) designate an assessment area and levy an assessment as provided in Title 11,
             65      Chapter 42, Assessment Area Act;
             66          (l) contract with a franchised, certificated public utility for the construction and
             67      operation of an electrical service distribution system within the special service district;
             68          (m) borrow money and incur indebtedness;
             69          (n) as provided in Part 5, Special Service District Bonds, issue bonds for the purpose of
             70      acquiring, constructing, and equipping any of the facilities required for the services the special
             71      service district is authorized to provide, including:
             72          (i) bonds payable in whole or in part from taxes levied on the taxable property in the
             73      special service district;
             74          (ii) bonds payable from revenues derived from the operation of revenue-producing
             75      facilities of the special service district;
             76          (iii) bonds payable from both taxes and revenues;
             77          (iv) guaranteed bonds, payable in whole or in part from taxes levied on the taxable
             78      property in the special service district;
             79          (v) tax anticipation notes;
             80          (vi) bond anticipation notes;
             81          (vii) refunding bonds;
             82          (viii) special assessment bonds; and
             83          (ix) bonds payable in whole or in part from mineral lease payments as provided in
             84      Section 11-14-308 ;
             85          (o) except as provided in Subsection (4), impose fees or charges or both for
             86      commodities, services, or facilities that the special service district provides;
             87          (p) provide to an area outside the special service district's boundary, whether inside or


             88      outside the state, a service that the special service district is authorized to provide within its
             89      boundary, if the governing body makes a finding that there is a public benefit to providing the
             90      service to the area outside the special service district's boundary;
             91          (q) provide other services that the governing body determines will more effectively
             92      carry out the purposes of the special service district; and
             93          (r) adopt an official seal for the special service district.
             94          (3) Each special service district that uses an officer, employee, property, equipment,
             95      office, or facility of the county or municipality that created the special service district shall
             96      reimburse the county or municipality a reasonable amount for what the special service district
             97      uses.
             98          (4) (a) A special service district that provides jail service as provided in Subsection
             99      17D-1-201 (10) may not impose a fee or charge for the service it provides.
             100          (b) Subsection (4)(a) may not be construed to limit a special service district that
             101      provides jail service from:
             102          (i) entering into a contract with the federal government, the state, or a political
             103      subdivision of the state to provide jail service for compensation; or
             104          (ii) receiving compensation for jail service it provides under a contract described in
             105      Subsection (4)(b)(i).


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