S.B. 216

             1     

MUNICIPAL FORMATION AMENDMENTS

             2     
2014 GENERAL SESSION

             3     
STATE OF UTAH

             4     
Chief Sponsor: Karen Mayne

             5     
House Sponsor: ____________

             6     
             7      LONG TITLE
             8      General Description:
             9          This bill enacts provisions related to the incorporation of a noncontiguous municipality.
             10      Highlighted Provisions:
             11          This bill:
             12          .    defines terms;
             13          .    enacts provisions authorizing a county legislative body or residents of the
             14      unincorporated county to request an incorporation feasibility study;
             15          .    directs the county clerk to certify or reject a resident request;
             16          .    provides requirements for a feasibility study and a hearing on the feasibility study;
             17          .    enacts provisions authorizing a county legislative body to adopt a resolution to
             18      incorporate unincorporated areas of the county as a noncontiguous municipality and
             19      residents of the unincorporated county to petition for the incorporation of
             20      unincorporated areas of the county as a noncontiguous municipality;
             21          .    directs a county legislative body to appoint an advisory committee to recommend
             22      districts for the council members of the proposed noncontiguous municipality;
             23          .    directs the county clerk to certify or reject a resident petition for incorporation;
             24          .    requires, in certain circumstances, the county legislative body to hold an election on
             25      the incorporation of a proposed noncontiguous municipality;
             26          .    enacts provisions related to the terms, candidate eligibility, and membership of a
             27      noncontiguous municipality council;


             28          .    enacts provisions governing a county mayor-municipal council form of government;
             29          .    enacts provisions governing the administration of a noncontiguous municipality;
             30          .    prohibits a noncontiguous municipality from levying a municipal energy sales and
             31      use tax;
             32          .    exempts a noncontiguous municipality from the Uniform Fiscal Procedures Act for
             33      Utah Cities;
             34          .    amends provisions of Title 17, Chapter 34, Municipal-Type Services to
             35      Unincorporated Areas;
             36          .    amends provisions of Title 17, Chapter 36, Uniform Fiscal Procedures Act for
             37      Counties;
             38          .    requires a candidate for the initial election of a noncontiguous municipal council to
             39      comply with certain candidacy requirements in Title 20A, Election Code;
             40          .    prohibits a municipal primary for the initial election of candidates to a
             41      noncontiguous municipal council; and
             42          .    makes technical and conforming amendments.
             43      Money Appropriated in this Bill:
             44          None
             45      Other Special Clauses:
             46          None
             47      Utah Code Sections Affected:
             48      AMENDS:
             49           10-1-104 , as last amended by Laws of Utah 2003, Chapter 292
             50           10-1-304 , as last amended by Laws of Utah 2012, Chapter 410
             51           10-2-101 , as last amended by Laws of Utah 2012, Chapter 359
             52           10-2-102 , as last amended by Laws of Utah 2012, Chapter 359
             53           10-2-120 , as last amended by Laws of Utah 2009, Chapter 350
             54           10-2-123 , as enacted by Laws of Utah 1997, Chapter 389
             55           10-3-205.5 , as last amended by Laws of Utah 2003, Chapter 292
             56           10-3-301 , as last amended by Laws of Utah 2012, Chapter 251
             57           10-3-302 , as repealed and reenacted by Laws of Utah 1993, Chapter 1
             58           10-3-803 , as enacted by Laws of Utah 1977, Chapter 48


             59           10-3-824 , as enacted by Laws of Utah 1977, Chapter 48
             60           10-3-1302 , as enacted by Laws of Utah 1981, Chapter 57
             61           10-3b-501 , as enacted by Laws of Utah 2008, Chapter 19
             62           10-6-103 , as enacted by Laws of Utah 1979, Chapter 26
             63           17-34-1 , as last amended by Laws of Utah 2003, Chapter 275
             64           17-34-3 , as last amended by Laws of Utah 2013, Chapter 371
             65           17-34-5 , as last amended by Laws of Utah 2011, Chapter 297
             66           17-36-2 , as last amended by Laws of Utah 1983, Chapter 73
             67           17-36-3 , as last amended by Laws of Utah 2012, Chapter 17
             68           17-36-3.5 , as enacted by Laws of Utah 1999, Chapter 300
             69           17-36-4 , as last amended by Laws of Utah 2013, Chapter 413
             70           17-36-6 , as last amended by Laws of Utah 1996, Chapter 212
             71           17-36-7 , as enacted by Laws of Utah 1975, Chapter 22
             72           17-36-8 , as last amended by Laws of Utah 1999, Chapter 300
             73           17-36-9 , as last amended by Laws of Utah 2012, Chapter 17
             74           17-36-10 , as last amended by Laws of Utah 2012, Chapter 17
             75           17-36-12 , as last amended by Laws of Utah 2010, Chapter 90
             76           17-36-15 , as last amended by Laws of Utah 2012, Chapter 17
             77           17-36-16 , as last amended by Laws of Utah 2003, Chapter 167
             78           17-36-17 , as last amended by Laws of Utah 2011, Chapter 297
             79           17-36-19 , as last amended by Laws of Utah 1983, Chapter 73
             80           17-36-20 , as last amended by Laws of Utah 2012, Chapter 17
             81           17-36-21 , as enacted by Laws of Utah 1975, Chapter 22
             82           17-36-22 , as last amended by Laws of Utah 2009, Chapter 186
             83           17-36-26 , as last amended by Laws of Utah 2010, Chapters 90 and 116
             84           17-36-30 , as enacted by Laws of Utah 1975, Chapter 22
             85           17-36-31 , as last amended by Laws of Utah 1993, Chapter 227
             86           17-36-35 , as last amended by Laws of Utah 1996, Chapter 212
             87           17-36-37 , as last amended by Laws of Utah 2009, Chapter 323
             88           17-36-38 , as last amended by Laws of Utah 1999, Chapter 300
             89           17-36-39 , as last amended by Laws of Utah 2004, Chapter 206


             90           17-36-40 , as last amended by Laws of Utah 2009, Chapter 388
             91           17-36-41 , as last amended by Laws of Utah 1983, Chapter 73
             92           17-36-43 , as last amended by Laws of Utah 2012, Chapter 17
             93           17-36-44 , as last amended by Laws of Utah 2012, Chapter 17
             94           17-36-45 , as enacted by Laws of Utah 1996, Chapter 212
             95           17-36-46 , as renumbered and amended by Laws of Utah 2000, Chapter 133
             96           17-36-47 , as renumbered and amended by Laws of Utah 2000, Chapter 133
             97           17-36-48 , as renumbered and amended by Laws of Utah 2000, Chapter 133
             98           17-36-49 , as renumbered and amended by Laws of Utah 2000, Chapter 133
             99           17-36-50 , as renumbered and amended by Laws of Utah 2000, Chapter 133
             100           17-36-51 , as renumbered and amended by Laws of Utah 2000, Chapter 133
             101           17-36-52 , as renumbered and amended by Laws of Utah 2000, Chapter 133
             102           17-36-53 , as renumbered and amended by Laws of Utah 2000, Chapter 133
             103           17-36-54 , as last amended by Laws of Utah 2005, Chapter 105
             104           17B-1-502 , as last amended by Laws of Utah 2013, Chapter 141
             105           20A-9-202 , as last amended by Laws of Utah 2013, Chapter 317
             106           20A-9-404 , as last amended by Laws of Utah 2013, Chapter 402
             107      ENACTS:
             108           10-2-130 , Utah Code Annotated 1953
             109           10-2-131 , Utah Code Annotated 1953
             110           10-2-132 , Utah Code Annotated 1953
             111           10-2-133 , Utah Code Annotated 1953
             112           10-2-134 , Utah Code Annotated 1953
             113           10-2-135 , Utah Code Annotated 1953
             114           10-2-136 , Utah Code Annotated 1953
             115           10-2-137 , Utah Code Annotated 1953
             116           10-2-138 , Utah Code Annotated 1953
             117           10-2-139 , Utah Code Annotated 1953
             118           10-2-140 , Utah Code Annotated 1953
             119           10-2-141 , Utah Code Annotated 1953
             120           10-3b-601 , Utah Code Annotated 1953


             121           10-3b-602 , Utah Code Annotated 1953
             122           10-3b-603 , Utah Code Annotated 1953
             123           10-3b-604 , Utah Code Annotated 1953
             124           10-3b-605 , Utah Code Annotated 1953
             125           10-3b-606 , Utah Code Annotated 1953
             126           10-3b-607 , Utah Code Annotated 1953
             127           10-3c-101 , Utah Code Annotated 1953
             128           10-3c-102 , Utah Code Annotated 1953
             129           10-3c-201 , Utah Code Annotated 1953
             130           10-3c-202 , Utah Code Annotated 1953
             131           10-3c-203 , Utah Code Annotated 1953
             132     
             133      Be it enacted by the Legislature of the state of Utah:
             134          Section 1. Section 10-1-104 is amended to read:
             135           10-1-104. Definitions.
             136          As used in this title:
             137          (1) "City" means a municipality that is classified by population as a city of the first
             138      class, a city of the second class, a city of the third class, a city of the fourth class, or a city of
             139      the fifth class, under Section 10-2-301 .
             140          (2) "Contiguous" means:
             141          (a) if used to described an area, continuous, uninterrupted, and without an island of
             142      territory not included as part of the area; and
             143          (b) if used to describe an area's relationship to another area, sharing a common
             144      boundary.
             145          (3) "Governing body" means collectively the legislative body and the executive of any
             146      municipality. [Unless otherwise provided:]
             147          [(a) in a city of the first or second class, the governing body is the city commission;]
             148          [(b) in a city of the third, fourth, or fifth class, the governing body is the city council;
             149      and]
             150          [(c) in a town, the governing body is the town council.]
             151          (4) "Municipal" means of or relating to a municipality.


             152          (5) "Municipality" means a city of the first class, city of the second class, city of the
             153      third class, city of the fourth class, city of the fifth class, or a town, as classified in Section
             154      10-2-301 .
             155          (6) "Peninsula," when used to describe an unincorporated area, means an area
             156      surrounded on more than 1/2 of its boundary distance, but not completely, by incorporated
             157      territory and situated so that the length of a line drawn across the unincorporated area from an
             158      incorporated area to an incorporated area on the opposite side shall be less than 25% of the
             159      total aggregate boundaries of the unincorporated area.
             160          (7) "Person" means an individual, corporation, partnership, organization, association,
             161      trust, governmental agency, or any other legal entity.
             162          (8) "Provisions of law" shall include other statutes of the state of Utah and ordinances,
             163      rules, and regulations properly adopted by any municipality unless the construction is clearly
             164      contrary to the intent of state law.
             165          (9) "Recorder," unless clearly inapplicable, includes and applies to a town clerk.
             166          (10) "Town" means a municipality classified by population as a town under Section
             167      10-2-301 .
             168          (11) "Unincorporated" means not within a municipality.
             169          Section 2. Section 10-1-304 is amended to read:
             170           10-1-304. Municipality and military installation development authority may levy
             171      tax -- Rate -- Imposition or repeal of tax -- Tax rate change -- Effective date -- Notice
             172      requirements -- Exemptions.
             173          (1) (a) Except as provided in Subsections (4) and (5) and Section 10-3c-203 , a
             174      municipality may levy a municipal energy sales and use tax on the sale or use of taxable energy
             175      within the municipality:
             176          (i) by ordinance as provided in Section 10-1-305 ; and
             177          (ii) of up to 6% of the delivered value of the taxable energy.
             178          (b) Subject to Section 63H-1-203 , the military installation development authority
             179      created in Section 63H-1-201 may levy a municipal energy sales and use tax under this part
             180      within a project area described in a project area plan adopted by the authority under Title 63H,
             181      Chapter 1, Military Installation Development Authority Act, as though the authority were a
             182      municipality.


             183          (2) A municipal energy sales and use tax imposed under this part may be in addition to
             184      any sales and use tax imposed by the municipality under Title 59, Chapter 12, Sales and Use
             185      Tax Act.
             186          (3) (a) For purposes of this Subsection (3):
             187          (i) "Annexation" means an annexation to a municipality under Chapter 2, Part 4,
             188      Annexation.
             189          (ii) "Annexing area" means an area that is annexed into a municipality.
             190          (b) (i) If, on or after May 1, 2000, a city or town enacts or repeals a tax or changes the
             191      rate of a tax under this part, the enactment, repeal, or change shall take effect:
             192          (A) on the first day of a calendar quarter; and
             193          (B) after a 90-day period beginning on the date the commission receives notice meeting
             194      the requirements of Subsection (3)(b)(ii) from the municipality.
             195          (ii) The notice described in Subsection (3)(b)(i)(B) shall state:
             196          (A) that the city or town will enact or repeal a tax or change the rate of a tax under this
             197      part;
             198          (B) the statutory authority for the tax described in Subsection (3)(b)(ii)(A);
             199          (C) the effective date of the tax described in Subsection (3)(b)(ii)(A); and
             200          (D) if the city or town enacts the tax or changes the rate of the tax described in
             201      Subsection (3)(b)(ii)(A), the new rate of the tax.
             202          (c) (i) If, for an annexation that occurs on or after May 1, 2000, the annexation will
             203      result in a change in the rate of a tax under this part for an annexing area, the change shall take
             204      effect:
             205          (A) on the first day of a calendar quarter; and
             206          (B) after a 90-day period beginning on the date the commission receives notice meeting
             207      the requirements of Subsection (3)(c)(ii) from the municipality that annexes the annexing area.
             208          (ii) The notice described in Subsection (3)(c)(i)(B) shall state:
             209          (A) that the annexation described in Subsection (3)(c)(i) will result in a change in the
             210      rate of a tax under this part for the annexing area;
             211          (B) the statutory authority for the tax described in Subsection (3)(c)(ii)(A);
             212          (C) the effective date of the tax described in Subsection (3)(c)(ii)(A); and
             213          (D) the new rate of the tax described in Subsection (3)(c)(ii)(A).


             214          (4) (a) Subject to Subsection (4)(b), a sale or use of electricity within a municipality is
             215      exempt from the tax authorized by this section if the sale or use is made under a tariff adopted
             216      by the Public Service Commission of Utah only for purchase of electricity produced from a
             217      new source of alternative energy, as defined in Section 59-12-102 , as designated in the tariff by
             218      the Public Service Commission of Utah.
             219          (b) The exemption under Subsection (4)(a) applies to the portion of the tariff rate a
             220      customer pays under the tariff described in Subsection (4)(a) that exceeds the tariff rate under
             221      the tariff described in Subsection (4)(a) that the customer would have paid absent the tariff.
             222          (5) (a) A municipality may not levy a municipal energy sales and use tax within any
             223      portion of the municipality that is within a project area described in a project area plan adopted
             224      by the military installation development authority under Title 63H, Chapter 1, Military
             225      Installation Development Authority Act.
             226          (b) Subsection (5)(a) does not apply to the military installation development authority's
             227      levy of a municipal energy sales and use tax.
             228          Section 3. Section 10-2-101 is amended to read:
             229           10-2-101. Definitions.
             230          (1) As used in this part:
             231          (a) "Feasibility consultant" means a person or firm:
             232          (i) with expertise in the processes and economics of local government; and
             233          (ii) [who] that is independent of and not affiliated with a county or sponsor of a
             234      petition to incorporate.
             235          (b) "Noncontiguous" means:
             236          (i) if used to describe an area, discontinuous, interrupted, and possibly with an island of
             237      territory included as part of the area; and
             238          (ii) if used to describe an area's relationship to another area, not sharing a common
             239      boundary.
             240          [(b)] (c) "Private," with respect to real property, means taxable property.
             241          (2) For purposes of this part:
             242          (a) the owner of real property shall be the record title owner according to the records of
             243      the county recorder on the date of the filing of the request or petition; and
             244          (b) the value of private real property shall be determined according to the last


             245      assessment roll for county taxes before the filing of the request or petition.
             246          (3) For purposes of each provision of this part that requires the owners of private real
             247      property covering a percentage or fraction of the total private land area within an area to sign a
             248      request or petition:
             249          (a) a parcel of real property may not be included in the calculation of the required
             250      percentage or fraction unless the request or petition is signed by:
             251          (i) except as provided in Subsection (3)(a)(ii), owners representing a majority
             252      ownership interest in that parcel; or
             253          (ii) if the parcel is owned by joint tenants or tenants by the entirety, 50% of the number
             254      of owners of that parcel;
             255          (b) the signature of a person signing a request or petition in a representative capacity on
             256      behalf of an owner is invalid unless:
             257          (i) the person's representative capacity and the name of the owner the person represents
             258      are indicated on the request or petition with the person's signature; and
             259          (ii) the person provides documentation accompanying the request or petition that
             260      substantiates the person's representative capacity; and
             261          (c) subject to Subsection (3)(b), a duly appointed personal representative may sign a
             262      request or petition on behalf of a deceased owner.
             263          Section 4. Section 10-2-102 is amended to read:
             264           10-2-102. Incorporation of a contiguous area -- Governing provisions of city or
             265      town incorporation -- Incorporation of a noncontiguous area.
             266          (1) (a) A contiguous area of a county not within a municipality may incorporate as a
             267      municipality as provided in this part.
             268          [(2) (a)] (b) Incorporation of a contiguous area as a city is governed by Sections
             269      10-2-103 through 10-2-124 .
             270          [(b)] (c) Incorporation of a contiguous area as a town is governed by Sections 10-2-125
             271      through 10-2-129 .
             272          (2) A noncontiguous area of a county of a first class and not within a municipality may
             273      incorporate as a municipality in accordance with Sections 10-2-130 through 10-2-141 .
             274          Section 5. Section 10-2-120 is amended to read:
             275           10-2-120. Powers of officers-elect.


             276          (1) Upon the canvass of the final election of city officers under Section 10-2-116 and
             277      until the future city becomes legally incorporated, the officers of the future city may:
             278          (a) prepare and adopt[, under Chapter 6, Uniform Fiscal Procedures Act for Utah
             279      Cities, a proposed budget and]:
             280          (i) a compilation of ordinances; and
             281          (ii) a proposed budget:
             282          (A) for a newly incorporated city that is contiguous, in accordance with Chapter 6,
             283      Uniform Fiscal Procedures Act for Utah Cities; or
             284          (B) for a newly incorporated noncontiguous municipality, in accordance with Title 17,
             285      Chapter 36, Uniform Fiscal Procedures Act for Counties;
             286          (b) negotiate and make personnel contracts and hirings;
             287          (c) negotiate and make service contracts;
             288          (d) negotiate and make contracts to purchase equipment, materials, and supplies;
             289          (e) borrow funds from the county in which the future city is located under Subsection
             290      10-2-121 (3);
             291          (f) borrow funds for startup expenses of the future city;
             292          (g) issue tax anticipation notes in the name of the future city; and
             293          (h) make appointments to the city's planning commission.
             294          (2) The city's legislative body shall review and ratify each contract made by the
             295      officers-elect under Subsection (1) within 30 days after the effective date of incorporation
             296      under Section 10-2-119 .
             297          (3) The officers of a noncontiguous municipality may exercise the powers and fulfill
             298      the duties described in this section to the extent that a power or duty, including the employment
             299      of personnel or appointment of officers, is not already exercised by the county on behalf of the
             300      noncontiguous municipality in accordance with law.
             301          Section 6. Section 10-2-123 is amended to read:
             302           10-2-123. Costs of incorporation.
             303          (1) Subject to Subsection (2), all costs of the incorporation proceeding, including
             304      request certification, feasibility study, petition certification, publication of notices, public
             305      hearings, and elections, shall be paid by the county in which the proposed city is located.
             306          (2) If incorporation occurs, the new municipality shall reimburse the county for the


             307      following costs [of] as applicable:
             308          (a) the notices and hearing under Section 10-2-114 [,];
             309          (b) the notices and elections under [Section] Sections 10-2-116 [,] and 10-2-138 ; and
             310          (c) all other incorporation activities occurring after the elections under [Section]
             311      Sections 10-2-116 and 10-2-138 .
             312          Section 7. Section 10-2-130 is enacted to read:
             313          10-2-130. Request or resolution for feasibility study for noncontiguous
             314      municipality -- Requirements -- Limitations.
             315          (1) (a) The process to incorporate as a municipality a noncontiguous area of a county of
             316      the first class that is governed by a county executive-council form of government, as described
             317      in Section 17-52-504 , and not located within a municipality, is initiated by:
             318          (i) a request for a feasibility study filed with the clerk of the county in which the area is
             319      located; or
             320          (ii) a resolution adopted by the county legislative body to engage a feasibility
             321      consultant.
             322          (b) A county other than a county of the first class with a form of government other than
             323      the county executive-council form of government may adopt the procedures described in
             324      Sections 10-2-130 through 10-2-141 by ordinance.
             325          (2) Each request under Subsection (1)(a)(i) shall:
             326          (a) be signed by the owners of private real property that:
             327          (i) is located within the area proposed to be incorporated;
             328          (ii) covers at least 10% of the total private land area within the area; and
             329          (iii) is equal in value to at least 7% of the value of all private real property within the
             330      area;
             331          (b) indicate the typed or printed name and current residence address of each owner
             332      signing the request;
             333          (c) describe the noncontiguous area proposed to be incorporated as a municipality;
             334          (d) designate up to five signers of the request as sponsors, one of whom shall be
             335      designated as the contact sponsor, with the mailing address and telephone number of each;
             336          (e) be accompanied by and circulated with an accurate map or plat, prepared by a
             337      licensed surveyor, showing the boundaries of the proposed municipality; and


             338          (f) request the county legislative body to commission a study to determine the
             339      feasibility of incorporating the noncontiguous area as a municipality.
             340          (3) A resolution under Subsection (1)(a)(ii) shall:
             341          (a) describe the noncontiguous area proposed to be incorporated as a municipality;
             342          (b) be accompanied by and circulated with an accurate map or plat, prepared by a
             343      licensed surveyor, showing the boundaries of the proposed municipality; and
             344          (c) direct the county legislative body to commission a study to determine the feasibility
             345      of incorporating the area as a municipality.
             346          (4) A request or a resolution for a feasibility study under this section may not propose
             347      for incorporation an area that includes some or all of an area that is the subject of a petition that
             348      is certified in accordance with Section 10-2-110 , a resolution adopted under 10-2-135 , or a
             349      petition certified in accordance with Section 10-2-137 unless:
             350          (a) the proposed incorporation that is the subject of the petition or resolution has been
             351      defeated by the voters at an election under Section 10-2-111 or 10-2-138 ; or
             352          (b) the time provided under Subsection 10-2-109 (1) or Subsection 10-2-135 (1) has
             353      lapsed without the filing of a petition or adoption of a resolution.
             354          (5) (a) As used in this Subsection (5):
             355          (i) "Incorporation procedure" means the following actions, the subject of which
             356      includes an area located in whole or in part in a township:
             357          (A) a request for incorporation described in Section 10-2-130 ;
             358          (B) a feasibility study described in Section 10-2-106 ;
             359          (C) a modified request and a supplemental feasibility study described in Section
             360      10-2-107 ; or
             361          (D) an incorporation petition described in Section 10-2-109 that is not certified under
             362      Section 10-2-110 .
             363          (ii) "Annexation procedure" means one or more of the following actions, the subject of
             364      which includes an area located in whole or in part in a township:
             365          (A) a petition to annex described in Section 10-2-403 ;
             366          (B) a feasibility study described in Section 10-2-413 ;
             367          (C) a modified annexation petition or supplemental feasibility study described in
             368      Section 10-2-414 ;


             369          (D) a boundary commission decision described in Section 10-2-416 ; or
             370          (E) any action described in Section 10-2-418 before the adoption of an ordinance to
             371      approve annexation under Subsection 10-2-418 (3)(b).
             372          (b) If an incorporation petition or resolution is filed under this section, and the petition
             373      or resolution includes some or all of an area that is the subject of an incorporation procedure or
             374      annexation procedure filed on or after January 1, 2014, the incorporation procedure or
             375      annexation procedure is suspended on the date that the incorporation petition is filed or
             376      resolution is adopted under this section.
             377          (c) If an incorporation procedure or annexation procedure is suspended under
             378      Subsection (5)(b), any applicable deadline or timeline is suspended until all proceedings on a
             379      noncontiguous incorporation are final, at which time the applicable deadline or timeline:
             380          (i) may proceed and the period of time during the suspension does not toll against that
             381      deadline or timeline; and
             382          (ii) does not start over.
             383          (6) (a) At the time of filing the request for a feasibility study with the county clerk, the
             384      sponsors of the request shall mail or deliver a copy of the request to the chair of the planning
             385      commission of each township in which any part of the area proposed for incorporation is
             386      located.
             387          (b) No later than three business days after the day on which a county legislative body
             388      adopts a resolution to engage a feasibility consultant, the county legislative body shall mail or
             389      deliver a copy of the request to the chair of the planning commission of each township in which
             390      any part of the area proposed for incorporation is located.
             391          (7) (a) As used in this Subsection (7), "rural real property" means an area:
             392          (i) zoned primarily for manufacturing, commercial, or agricultural purposes; and
             393          (ii) that does not include residential units with a density greater than one unit per acre.
             394          (b) Except as provided in Subsection (8), unless a property owner consents in writing, a
             395      request under Subsection (1)(a)(i) and a resolution under Subsection (1)(a)(ii) may not include
             396      real property that:
             397          (i) consists of 1,500 or more contiguous acres of rural real property;
             398          (ii) is not contiguous to but is used in connection with rural real property that consists
             399      of 1,500 acres or more of contiguous acres of real property;


             400          (iii) is owned, managed, or controlled by a person, company, or association, including
             401      a parent, subsidiary, or affiliate related to the owner of 1,500 or more contiguous acres of rural
             402      real property; or
             403          (iv) is located in whole or part in one of the following as defined in Section 17-41-101 :
             404          (A) an agricultural protection area;
             405          (B) a mining protection area; or
             406          (C) an industrial protection area.
             407          (8) A resolution or petition described in Subsection (1) may not include real property
             408      described in Subsection (7) without the owner's written consent unless the county legislative
             409      body finds by clear and convincing evidence in the record that:
             410          (a) the real property is not rural real property; and
             411          (b) the real property does not receive from the county a majority of municipal-type
             412      services described in Subsection 10-2-104 (4)(b)(ii).
             413          Section 8. Section 10-2-131 is enacted to read:
             414          10-2-131. Notice to owner of property -- Exclusion of property from proposed
             415      boundaries.
             416          (1) As used in this section:
             417          (a) "Assessed value" with respect to property means the value at which the property
             418      would be assessed without regard to a valuation for agricultural use under Section 59-2-503 .
             419          (b) "Owner" means a person having an interest in real property, including an affiliate,
             420      subsidiary, or parent company.
             421          (c) "Urban" means an area with a residential density of greater than one unit per acre.
             422          (2) Within seven calendar days of the date on which a request under Section 10-2-130
             423      is filed or a resolution under Section 10-2-130 is adopted, the county clerk shall send written
             424      notice of the proposed incorporation to each record owner of real property owning more than:
             425          (a) 1% of the assessed value of all property in the proposed incorporation boundaries;
             426      or
             427          (b) 10% of the total private land area within the proposed incorporation boundaries.
             428          (3) If an owner owns, controls, or manages more than 1% of the assessed value of all
             429      property in the proposed incorporation boundaries, or owns, controls, or manages 10% or more
             430      of the total private land area in the proposed incorporation boundaries, the owner may exclude


             431      all or part of the property owned, controlled, or managed by the owner from the proposed
             432      boundaries by filing a Notice of Exclusion with the county legislative body within 15 calendar
             433      days of receiving the clerk's notice under Subsection (2).
             434          (4) The county legislative body shall exclude the property identified by an owner in the
             435      Notice of Exclusion from the proposed incorporation boundaries unless the county legislative
             436      body finds by clear and convincing evidence in the record that:
             437          (a) the exclusion will leave an unincorporated island within the proposed municipality;
             438      and
             439          (b) the property to be excluded:
             440          (i) is urban; and
             441          (ii) currently receives from the county a majority of municipal-type services, including:
             442          (A) culinary or irrigation water;
             443          (B) sewage collection or treatment;
             444          (C) storm drainage or flood control;
             445          (D) recreational facilities or parks;
             446          (E) electric generation or transportation;
             447          (F) construction or maintenance of local streets and roads;
             448          (G) curb and gutter or sidewalk maintenance;
             449          (H) garbage and refuse collection; and
             450          (I) street lighting.
             451          (5) If the county legislative body excludes property from the proposed boundaries
             452      under Subsection (4), the county legislative body shall, within five days of the exclusion, send
             453      written notice of the exclusion to the contact sponsor.
             454          Section 9. Section 10-2-132 is enacted to read:
             455          10-2-132. Processing a request for noncontiguous incorporation -- Certification or
             456      rejection by county clerk -- Processing priority -- Limitations -- Township planning
             457      commission recommendation.
             458          (1) Within 45 days of the filing of a request under Section 10-2-130 , the county clerk
             459      shall:
             460          (a) with the assistance of other county officers from whom the clerk requests
             461      assistance, determine whether the request complies with Section 10-2-130 ; and


             462          (b) (i) if the clerk determines that the request complies with Section 10-2-130 :
             463          (A) certify the request and deliver the certified request to the county legislative body;
             464      and
             465          (B) mail or deliver written notification of the certification to the contact sponsor and
             466      the chair of the planning commission of each township in which any part of the area proposed
             467      for incorporation is located; or
             468          (ii) if the clerk determines that the request fails to comply with the requirements of
             469      Section 10-2-130 , reject the request and notify the contact sponsor in writing of the rejection
             470      and the reasons for the rejection.
             471          (2) The county clerk shall certify or reject requests under Subsection (1) in the order in
             472      which they are filed.
             473          (3) (a) (i) If the county clerk rejects a request under Subsection (1)(b)(ii), the request
             474      may be amended to correct the deficiencies for which it was rejected and then refiled with the
             475      county clerk.
             476          (ii) A signature on a request under Section 10-2-130 may be used toward fulfilling the
             477      signature requirement of Subsection 10-2-130 (2)(a) for the request as modified under
             478      Subsection (3)(a)(i).
             479          (b) If a request is amended and refiled under Subsection (3)(a) after having been
             480      rejected by the county clerk under Subsection (1)(b)(ii), it shall be considered as a newly filed
             481      request, and its processing priority is determined by the date on which it is refiled.
             482          Section 10. Section 10-2-133 is enacted to read:
             483          10-2-133. Feasibility study -- Feasibility study consultant.
             484          (1) Within 60 days of receipt of a certified request under Subsection 10-2-132 (1)(b)(i),
             485      or within 60 days of adopting a resolution to engage a feasibility consultant in accordance with
             486      Subsection 10-2-130 (1)(a)(ii), the county legislative body shall engage the feasibility
             487      consultant chosen under Subsection (2) to conduct a feasibility study.
             488          (2) The feasibility consultant shall be chosen:
             489          (a) (i) if a request for a feasibility study was filed with the county clerk:
             490          (A) by the contact sponsor of the incorporation petition with the consent of the county;
             491      or
             492          (B) by the county if the designated sponsors state, in writing, that the contact sponsor


             493      defers selection of the feasibility consultant to the county; or
             494          (ii) if the county legislative body adopted a resolution to engage the feasibility
             495      consultant, by the county legislative body; and
             496          (b) in accordance with applicable county procurement procedures.
             497          (3) The county legislative body shall require the feasibility consultant to:
             498          (a) complete the feasibility study and submit the written results to the county legislative
             499      body and the contact sponsor, if applicable, no later than 90 days after the feasibility consultant
             500      is engaged to conduct the study;
             501          (b) submit with the full written results of the feasibility study a summary of the results
             502      no longer than one page in length; and
             503          (c) attend the public hearings under Subsection 10-2-134 (1) and present the feasibility
             504      study results and respond to questions from the public at those hearings.
             505          (4) (a) The feasibility study shall consider:
             506          (i) population and population density within the area proposed for incorporation and
             507      the surrounding area;
             508          (ii) current and five-year projections of demographics and economic base in the
             509      proposed municipality and surrounding area, including household size and income, commercial
             510      and industrial development, and public facilities;
             511          (iii) projected growth in the proposed municipality and in adjacent areas during the
             512      next five years;
             513          (iv) subject to Subsection (4)(b), the present and five-year projections of the cost,
             514      including overhead, of governmental services in the proposed municipality, including:
             515          (A) culinary water;
             516          (B) secondary water;
             517          (C) sewer;
             518          (D) law enforcement;
             519          (E) fire protection;
             520          (F) roads and public works;
             521          (G) garbage;
             522          (H) weeds; and
             523          (I) government offices;


             524          (v) assuming the same tax categories and tax rates as currently imposed by the county
             525      and all other current service providers, the present and five-year projected revenue for the
             526      proposed municipality;
             527          (vi) a projection of any new taxes per household that may be levied within the
             528      incorporated area within five years of incorporation; and
             529          (vii) the fiscal impact on unincorporated areas, other municipalities, local districts,
             530      special service districts, and other governmental entities in the county.
             531          (b) (i) For purposes of Subsection (4)(a)(iv), the feasibility consultant shall assume a
             532      level and quality of governmental services to be provided to the proposed municipality in the
             533      future that fairly and reasonably approximate the level and quality of governmental services
             534      being provided to the proposed municipality at the time of the feasibility study.
             535          (ii) In determining the present cost of a governmental service, the feasibility consultant
             536      shall consider:
             537          (A) the amount it would cost the proposed municipality to provide governmental
             538      service for the first five years after incorporation; and
             539          (B) the county's present and five-year projected cost of providing governmental
             540      service.
             541          (iii) The costs calculated under Subsection (4)(a)(iv) shall take into account inflation
             542      and anticipated growth.
             543          (5) If the five-year projected revenues under Subsection (4)(a)(v) exceed the five-year
             544      projected costs under Subsection (4)(a)(iv) by more than 5%, the feasibility consultant shall
             545      project and report the expected annual revenue surplus to the contact sponsor, if applicable, the
             546      county legislative body, and the lieutenant governor.
             547          Section 11. Section 10-2-134 is enacted to read:
             548          10-2-134. Public hearings on feasibility study results -- Notice of hearings.
             549          (1) The county legislative body shall, at its next regular meeting after receipt of the
             550      results of the feasibility study, schedule at least two public hearings to be held:
             551          (a) within the following 60 days;
             552          (b) at least seven days apart;
             553          (c) in geographically diverse locations within the proposed municipality; and
             554          (d) for the purpose of allowing:


             555          (i) the feasibility consultant to present the results of the study; and
             556          (ii) the public to become informed about the feasibility study results and to ask the
             557      feasibility consultant questions about those results.
             558          (2) At a public hearing described in Subsection (1), the county legislative body shall:
             559          (a) provide a map or plat of the boundaries of the proposed municipality;
             560          (b) provide a copy of the feasibility study for public review; and
             561          (c) allow the public to express its views about the proposed incorporation, including its
             562      views about the proposed boundaries.
             563          (3) (a) (i) The county clerk shall publish notice of the public hearings required under
             564      Subsection (1):
             565          (A) at least once a week for three successive weeks in a newspaper of general
             566      circulation within the proposed municipality; and
             567          (B) on the Utah Public Notice Website, created in Section 63F-1-701 , for three weeks.
             568          (ii) The last publication of notice required under Subsection (3)(a)(i)(A) shall be at
             569      least three days before the first public hearing required under Subsection (1).
             570          (b) (i) If, under Subsection (3)(a)(i)(A), there is no newspaper of general circulation
             571      within the proposed municipality, the county clerk shall post at least one notice of the hearings
             572      per 1,000 population in conspicuous places within the proposed municipality that are most
             573      likely to give notice of the hearings to the residents of the proposed municipality.
             574          (ii) The clerk shall post the notices under Subsection (3)(b)(i) at least seven days before
             575      the first hearing under Subsection (1).
             576          (c) The notice under Subsections (3)(a) and (b) shall include the feasibility study
             577      summary under Subsection 10-2-133 (3)(b) and shall indicate that a full copy of the study is
             578      available for inspection and copying at the office of the county clerk.
             579          Section 12. Section 10-2-135 is enacted to read:
             580          10-2-135. Noncontiguous incorporation petition or resolution -- Requirements and
             581      form.
             582          (1) At any time within one year of the completion of the public hearings required under
             583      Subsection 10-2-134 (1):
             584          (a) a petition for incorporation of the area proposed to be incorporated as a
             585      municipality may be filed in the office of the clerk of the county in which the area is located; or


             586          (b) the county legislative body may adopt a resolution to incorporate the area proposed
             587      to be incorporated as a municipality.
             588          (2) Each petition under Subsection (1)(a) shall:
             589          (a) be signed by:
             590          (i) 10% of all registered voters within the area proposed to be incorporated as a
             591      municipality, according to the official voter registration list maintained by the county on the
             592      date the petition is filed; and
             593          (ii) 10% of all registered voters within, subject to Subsection (5), 90% of the voting
             594      precincts within the area proposed to be incorporated as a municipality, according to the
             595      official voter registration list maintained by the county on the date the petition is filed;
             596          (b) indicate the typed or printed name and current residence address of each owner
             597      signing the petition;
             598          (c) describe the area proposed to be incorporated as a municipality, as described in the
             599      feasibility study request;
             600          (d) state the proposed name for the proposed municipality;
             601          (e) designate five signers of the petition as petition sponsors, one of whom shall be
             602      designated as the contact sponsor, with the mailing address and telephone number of each;
             603          (f) be accompanied by and circulated with an accurate plat or map, prepared by a
             604      licensed surveyor, showing the boundaries of the proposed municipality; and
             605          (g) substantially comply with and be circulated in the following form:
             606          "PETITION FOR INCORPORATION OF (insert the proposed name of the proposed
             607      municipality).
             608          To the Honorable County Legislative Body of (insert the name of the county in which
             609      the proposed municipality is located) County, Utah:
             610          We, the undersigned registered voters within the area described in this petition,
             611      respectfully petition the county legislative body to submit to the registered voters residing
             612      within the area described in this petition, at the next regular or municipal general election,
             613      whichever occurs first, the question of whether the area should incorporate as a municipality.
             614      Each of the undersigned affirms that each has personally signed this petition and is a registered
             615      voter within the described area, and that the current residence address of each is correctly
             616      written after the signer's name. The area proposed to be incorporated as a municipality is


             617      described as follows: (insert an accurate description of the area proposed to be incorporated)."
             618          (3) A resolution adopted by the county legislative body for incorporation shall:
             619          (a) include the information described in Subsections (2)(d) and (f); and
             620          (b) appoint members to the council district advisory committee in accordance with
             621      Section 10-2-136 .
             622          (4) A signature on a request under Section 10-2-130 may be used toward fulfilling the
             623      signature requirement of Subsection (2)(a):
             624          (a) if the request under Section 10-2-130 notified the signer in conspicuous language
             625      that the signature, unless withdrawn, would also be used for purposes of a petition for
             626      incorporation under this section; and
             627          (b) unless the signer files with the county clerk a written withdrawal of the signature
             628      before the petition under this section is filed with the clerk.
             629          (5) (a) A signature does not qualify as a signature to meet the requirement described in
             630      Subsection (2)(a)(ii) if the signature is gathered from a voting precinct that:
             631          (i) is not located entirely within the boundaries of the proposed municipality; or
             632          (ii) includes fewer than 50 registered voters.
             633          (b) A voting precinct that is not located entirely within the boundaries of the proposed
             634      municipality does not qualify as a voting precinct to meet the precinct requirements of
             635      Subsection (2)(a)(ii).
             636          Section 13. Section 10-2-136 is enacted to read:
             637          10-2-136. Determination of boundaries of council districts -- Appointment of
             638      council districts advisory committee -- Adoption of proposed council districts.
             639          (1) The boundaries of the nine council districts for election of municipal council
             640      members shall be designated in accordance with this section.
             641          (2) (a) In a resolution to incorporate under Section 10-2-135 , or in accordance with
             642      Subsection 10-2-137 (4), a resolution adopted after the certification of a petition, the county
             643      legislative body shall appoint the following 12 members to a council district advisory
             644      committee to advise the county legislative body on the designation of council districts for the
             645      noncontiguous area proposed for incorporation:
             646          (i) six members representing the townships that are located within the county and that
             647      are also located, in part or in whole, in the area proposed for incorporation;


             648          (ii) two members who each reside in the area proposed for incorporation; and
             649          (iii) four additional members.
             650          (b) (i) The county legislative body may not appoint a person under Subsection (2)(a)
             651      unless the person:
             652          (A) is a registered voter of the county; and
             653          (B) does not hold a public office or public employment other than membership on the
             654      advisory committee.
             655          (ii) Notwithstanding Subsection (2)(b)(i)(A), the county legislative body may appoint a
             656      public official of a local district, as defined in Section 17B-1-102 , or a special service district,
             657      as defined in Section 17D-1-102 , if the public official does not also hold a public office with a
             658      political subdivision other than the local district or special service district.
             659          (c) The county shall reimburse each member of the advisory committee for necessary
             660      expenses incurred in performing the member's duties on the committee.
             661          (d) If a vacancy occurs in the advisory committee, the county legislative body shall fill
             662      the vacancy within 10 days of receiving notice of the vacancy.
             663          (3) The county executive shall convene a meeting of the members of the advisory
             664      committee described in Subsection (2) within 10 days after the day on which the county
             665      legislative body adopts the resolution appointing the members.
             666          (4) The advisory committee may:
             667          (a) establish advisory boards or committees and include on them persons who are not
             668      members of the advisory committee; and
             669          (b) request the assistance and advice of any officers or employees of a state agency or
             670      local government.
             671          (5) (a) The advisory committee shall:
             672          (i) study the division of the area proposed for incorporation into council districts that
             673      comply with Section 10-3-205.5 ;
             674          (ii) hold public hearings and community forums and other means the committee
             675      considers appropriate to disseminate information and stimulate public discussion of the
             676      committee's purposes, progress, and conclusions;
             677          (iii) include in the report described in Subsection (5)(a)(iv) a determination of the
             678      initial terms of the members of the municipal council so that:


             679          (A) approximately half the members of the municipal council are elected to serve an
             680      initial term, of no less than one year, that allows their successors to serve a full four-year term
             681      that coincides with the schedule established in Subsection 10-3-205 (1); and
             682          (B) the remaining members of the municipal council are elected to serve an initial
             683      term, of no less than one year, that allows their successors to serve a full four-year term that
             684      coincides with the schedule established in Subsection 10-3-205 (2); and
             685          (iv) file a written report of its findings and recommendations with the county executive
             686      and the county legislative body within 60 days after the convening of its first meeting.
             687          (b) Each advisory committee report under Subsection (5)(a) shall include:
             688          (i) the advisory committee's recommendation as to the division of the area proposed for
             689      incorporation into nine council districts; and
             690          (ii) a detailed map, prepared by a licensed surveyor, of the boundaries of each council
             691      district.
             692          (6) A meeting held by the advisory committee is open to the public.
             693          (7) The county legislative body shall provide for the advisory committee:
             694          (a) suitable meeting facilities;
             695          (b) necessary secretarial services;
             696          (c) necessary printing and photocopying services; and
             697          (d) necessary clerical and staff assistance.
             698          (8) After receiving the report from the advisory committee, the county legislative body
             699      shall adopt by resolution:
             700          (a) the nine municipal council districts as recommended by the advisory committee; or
             701          (b) nine municipal council districts with boundaries other than those proposed by the
             702      advisory committee but that are otherwise in compliance with Section 10-3-205.5 and the
             703      schedule described in Section 10-3-205 .
             704          Section 14. Section 10-2-137 is enacted to read:
             705          10-2-137. Processing of petition by county clerk -- Certification or rejection --
             706      Processing priority -- Resolution after petition to appoint council district advisory
             707      committee.
             708          (1) Within 45 days of the filing of a petition under Section 10-2-135 , the county clerk
             709      shall:


             710          (a) with the assistance of other county officers from whom the clerk requests
             711      assistance, determine whether the petition meets the requirements of Section 10-2-135 ; and
             712          (b) (i) if the clerk determines that the petition meets those requirements, certify the
             713      petition, deliver it to the county legislative body, and notify in writing the contact sponsor of
             714      the certification; or
             715          (ii) if the clerk determines that the petition fails to meet any of those requirements,
             716      reject the petition and notify the contact sponsor in writing of the rejection and the reasons for
             717      the rejection.
             718          (2) (a) If the county clerk rejects a petition under Subsection (1)(b)(ii), the petition may
             719      be modified to correct the deficiencies for which it was rejected and then refiled with the
             720      county clerk.
             721          (b) A modified petition under Subsection (2)(a) may be filed at any time until 30 days
             722      after the county clerk notifies the contact sponsor under Subsection (1)(b)(ii), even though the
             723      modified petition is filed after the expiration of the deadline provided in Subsection
             724      10-2-135 (1).
             725          (c) A signature on an incorporation petition under Section 10-2-135 may be used
             726      toward fulfilling the signature requirement of Subsection 10-2-135 (2)(a) for the petition as
             727      modified under Subsection (2)(a).
             728          (3) (a) Within 20 days of the county clerk's receipt of a modified petition under
             729      Subsection (2)(a), the county clerk shall follow the same procedure for the modified petition as
             730      provided under Subsection (1) for an original petition.
             731          (b) If a county clerk rejects a modified petition under Subsection (1)(b)(ii), no further
             732      modification of that petition may be filed.
             733          (4) Within 10 days of certification of a petition by the county clerk in accordance with
             734      Subsection (1)(b), the county legislative body shall adopt a resolution to appoint members to a
             735      council district advisory committee in accordance with Section 10-2-136 .
             736          Section 15. Section 10-2-138 is enacted to read:
             737          10-2-138. Noncontiguous incorporation and council member election -- Notice of
             738      candidacy deadline -- Notice of election.
             739          (1) (a) At the next regular general election date under Section 20A-1-201 or municipal
             740      general election date under Section 20A-1-202 , whichever occurs first, more than 80 days after


             741      the county legislative body adopts a resolution designating the municipal council districts under
             742      Subsection 10-2-136 (8), the county legislative body shall hold an election:
             743          (i) on the proposed incorporation of the noncontiguous area; and
             744          (ii) to select a council member for each of the municipal council seats representing the
             745      nine municipal council districts.
             746          (b) Unless a person is a registered voter who resides, as defined in Section 20A-1-102 ,
             747      within the boundaries of:
             748          (i) the proposed municipality, the person may not vote on the proposed incorporation;
             749      and
             750          (ii) the council district of a candidate for municipal council, the person may not vote
             751      for the candidate.
             752          (2) (a) Within 20 days of the county legislative body's adoption of a resolution
             753      designating the municipal council districts under Subsection 10-2-136 (8), the county clerk shall
             754      publish, in accordance with Subsection (2)(b), notice containing:
             755          (i) a description of the boundaries of the council districts as designated in the
             756      resolution;
             757          (ii) information about the deadline for filing a declaration of candidacy for those
             758      seeking to become candidates for municipal council; and
             759          (iii) information about the length of the initial term of each of the municipal officers, as
             760      described in a resolution under Section 10-2-135 .
             761          (b) The notice under Subsection (2)(a) shall be published:
             762          (i) in a newspaper of general circulation within the future municipality at least once a
             763      week for two successive weeks; and
             764          (ii) in accordance with Section 45-1-101 for two weeks.
             765          (c) (i) In accordance with Subsection (2)(b)(i), if there is no newspaper of general
             766      circulation within the future municipality, the county clerk shall post at least one notice per
             767      1,000 population in conspicuous places within the future municipality that are most likely to
             768      give notice to the residents of the future municipality.
             769          (ii) The notice under Subsection (2)(c)(i) shall contain the information required under
             770      Subsection (2)(a).
             771          (iii) The county clerk shall post the notices under Subsection (2)(c)(i) at least seven


             772      days before the deadline for filing a declaration of candidacy under Subsection (2)(d).
             773          (d) Notwithstanding Subsection 20A-9-202 (1)(b)(i), if the election is a regular general
             774      election, or Subsection 20A-9-203 (2)(a), if the election is a regular municipal general election,
             775      each person seeking to become a candidate for municipal council of a noncontiguous
             776      municipality shall, no later than 60 days before the day of the incorporation election under
             777      Subsection (1), file a declaration of candidacy with the clerk of the county in which the future
             778      municipality is located.
             779          (3) (a) The county clerk shall publish notice of the election:
             780          (i) at least once a week for three successive weeks in a newspaper of general
             781      circulation within the area proposed to be incorporated; and
             782          (ii) for three weeks in accordance with Section 45-1-101 .
             783          (b) The notice required by Subsection (3)(a) shall contain:
             784          (i) a statement of the contents of the incorporation petition or resolution;
             785          (ii) a description of the noncontiguous area proposed to be incorporated as a
             786      municipality;
             787          (iii) a statement of the date and time of the election and the location of polling places;
             788      and
             789          (iv) the feasibility study summary under Subsection 10-2-133 (3)(b) and a statement
             790      that a full copy of the study is available for inspection and copying at the office of the county
             791      clerk.
             792          (c) The last publication of notice required under Subsection (3)(a) shall occur at least
             793      one day but no more than seven days before the election.
             794          (d) (i) In accordance with Subsection (3)(a)(i), if there is no newspaper of general
             795      circulation within the proposed municipality, the county clerk shall post at least one notice of
             796      the election per 1,000 population in conspicuous places within the proposed municipality that
             797      are most likely to give notice of the election to the voters of the proposed municipality.
             798          (ii) The clerk shall post the notices under Subsection (3)(d)(i) at least seven days before
             799      the election under Subsection (1).
             800          (4) (a) If a majority of those casting votes within the area boundaries of the proposed
             801      municipality vote to incorporate as a municipality, the area shall:
             802          (i) incorporate as a noncontiguous municipality as defined in Section 10-3c-102 ; and


             803          (ii) be governed by the county mayor-municipal council form of government as
             804      described in Title 10, Chapter 3b, Part 6, County Mayor-Municipal Council Form of
             805      Government.
             806          (b) The candidate for each council district that receives a majority of the vote is elected
             807      as the municipal council person for that council district and for a term as designated in
             808      accordance with Section 10-2-136 .
             809          Section 16. Section 10-2-139 is enacted to read:
             810          10-2-139. Ballot used at the noncontiguous incorporation election.
             811          The ballot at the incorporation election under Section 10-2-138 shall:
             812          (1) pose the incorporation question substantially as follows:
             813          "Shall the area described as (insert a description of the proposed municipality) be
             814      incorporated as the municipality of (insert the proposed name of the proposed municipality)?";
             815          (2) provide a space for the voter to answer yes or no to the question in Subsection (1);
             816      and
             817          (3) in a nonpartisan format, include the name of each qualified candidate for each
             818      municipal council district as described in a resolution adopted under Subsection 10-2-136 (8).
             819          Section 17. Section 10-2-140 is enacted to read:
             820          10-2-140. Status and powers.
             821          A noncontiguous municipality incorporated in an election in accordance with Section
             822      10-2-138 :
             823          (1) is:
             824          (a) a body corporate and politic with perpetual succession;
             825          (b) a municipal corporation; and
             826          (c) a political subdivision of the state; and
             827          (2) may sue and be sued.
             828          Section 18. Section 10-2-141 is enacted to read:
             829          10-2-141. Incorporation of noncontiguous municipality subject to other
             830      provisions.
             831          An incorporation of a noncontiguous municipality in accordance with Sections
             832      10-2-130 through 10-2-140 is subject to the following provisions to the same extent as the
             833      incorporation of a contiguous municipality in accordance with Sections 10-2-130 through


             834      10-2-124 :
             835          (1) Section 10-2-113 ;
             836          (2) Section 10-2-120 ;
             837          (3) Section 10-2-121 ; and
             838          (4) Section 10-2-123 .
             839          Section 19. Section 10-3-205.5 is amended to read:
             840           10-3-205.5. At-large election of officers -- Election of commissioners or council
             841      members.
             842          (1) Except as provided in [Subsection (2)] Subsections (2) and (3), the officers of each
             843      city shall be elected in an at-large election held at the time and in the manner provided for
             844      electing municipal officers.
             845          (2) (a) [Notwithstanding Subsection (1), the] The governing body of a city may by
             846      ordinance provide for the election of some or all commissioners or council members, as the
             847      case may be, by district equal in number to the number of commissioners or council members
             848      elected by district.
             849          (b) (i) Each district shall be of substantially equal population as the other districts.
             850          (ii) Within six months after the Legislature completes its redistricting process, the
             851      governing body of each city that has adopted an ordinance under Subsection (2)(a) shall make
             852      any adjustments in the boundaries of the districts as may be required to maintain districts of
             853      substantially equal population.
             854          (3) (a) The municipal council members of a noncontiguous municipality, as defined in
             855      Section 10-3c-102 , are elected by district.
             856          (b) There are nine council districts in a noncontiguous municipality and those districts
             857      shall comply with Subsections (2)(b)(i) and (ii).
             858          Section 20. Section 10-3-301 is amended to read:
             859           10-3-301. Notice -- Eligibility and residency requirements for elected municipal
             860      office -- Mayor and recorder limitations.
             861          (1) (a) On or before February 1 in a year in which there is a municipal general election,
             862      the municipal clerk shall publish a notice that identifies:
             863          (i) the municipal offices to be voted on in the municipal general election; and
             864          (ii) the dates for filing a declaration of candidacy for the offices identified under


             865      Subsection (1)(a)(i).
             866          (b) The municipal clerk shall publish the notice described in Subsection (1)(a):
             867          (i) on the Utah Public Notice Website established by Section 63F-1-701 ; and
             868          (ii) in at least one of the following ways:
             869          (A) at the principal office of the municipality;
             870          (B) in a newspaper of general circulation within the municipality at least once a week
             871      for two successive weeks in accordance with Section 45-1-101 ;
             872          (C) in a newsletter produced by the municipality;
             873          (D) on a website operated by the municipality; or
             874          (E) with a utility enterprise fund customer's bill.
             875          (2) A person filing a declaration of candidacy for a municipal office shall meet the
             876      requirements of Section 20A-9-203 .
             877          (3) Any person elected to municipal office shall be a registered voter in the
             878      municipality in which the person was elected.
             879          (4) (a) Each elected officer of a municipality shall maintain residency within the
             880      boundaries of the municipality during the officer's term of office.
             881          (b) If an elected officer of a municipality establishes a principal place of residence as
             882      provided in Section 20A-2-105 outside the municipality during the officer's term of office, the
             883      office is automatically vacant.
             884          (5) Notwithstanding Subsection (3) or (4), the mayor of a noncontiguous municipality
             885      as defined in Section 10-3c-102 :
             886          (a) (i) shall be a registered voter in the county in which the noncontiguous municipality
             887      is located; and
             888          (ii) is not required to be a registered voter of the noncontiguous municipality; and
             889          (b) shall maintain residence within the boundaries of the county of which the mayor is
             890      the chief executive administrative officer in which the noncontiguous municipality is located
             891      but is not required to reside within the noncontiguous municipality.
             892          [(5)] (6) If an elected municipal officer is absent from the municipality any time during
             893      the officer's term of office for a continuous period of more than 60 days without the consent of
             894      the municipal legislative body, the municipal office is automatically vacant.
             895          [(6)] (7) (a) A mayor of a municipality may not also serve as the municipal recorder or


             896      treasurer.
             897          (b) The recorder of a municipality may not also serve as the municipal treasurer.
             898          (8) The mayor of a noncontiguous municipality, as defined in Section 10-3c-102 , is the
             899      candidate successfully elected in a regular general election as the county mayor of the county in
             900      which the noncontiguous municipality is located, the election and notice of which is not subject
             901      to the election and notice requirements of this title.
             902          Section 21. Section 10-3-302 is amended to read:
             903           10-3-302. Mayoral or council vacancy of a municipality.
             904          (1) Mayoral or council vacancies [shall be] are filled as provided in Section
             905      20A-1-510 .
             906          (2) Notwithstanding Subsection (1), a vacancy in the office of mayor of a
             907      noncontiguous municipality, as defined in Section 10-3c-102 , is filled in accordance with
             908      Section 20A-1-508 .
             909          Section 22. Section 10-3-803 is amended to read:
             910           10-3-803. Officers limited to one office -- Exceptions.
             911          (1) In cities of the first class, the mayor, commissioners, recorder and treasurer shall
             912      administer only one office under the city government, except that the offices of city recorder
             913      and auditor may be held by one person.
             914          (2) This section may not be construed to prohibit the filling of an office under Section
             915      10-3b-606 .
             916          Section 23. Section 10-3-824 is amended to read:
             917           10-3-824. Bonds of first officers after incorporation.
             918          [Whenever] (1) (a) If the inhabitants of any municipality incorporate under [this act]
             919      Chapter 2, Incorporation, Classification, Boundaries, Consolidation, and Dissolution of
             920      Municipalities, the officers first elected or appointed, except the treasurer, shall give bonds in
             921      the penal sum of not less than $500.
             922          (b) The bonds required in this section shall remain in force until the passage of
             923      ordinances or resolutions by the governing body of such municipality providing for the bonds
             924      required of its officers under this act.
             925          (c) The bond of the municipal treasurer shall be in a penal sum of not less than $500
             926      and may be established by an ordinance or resolution by the governing body, except that the


             927      bond of the treasurer shall be set in an amount provided by the rules and regulations of the state
             928      money management council if [it] the bond has been established by the state money
             929      management council.
             930          (2) In a newly incorporated noncontiguous municipality, as defined in Section
             931      10-3c-102 , this section does not apply to an officer of a county who is also the first officer of
             932      the municipality as described in Section 10-3c-606 .
             933          Section 24. Section 10-3-1302 is amended to read:
             934           10-3-1302. Purpose -- Application.
             935          (1) The purposes of this part are to establish standards of conduct for municipal
             936      officers and employees and to require these persons to disclose actual or potential conflicts of
             937      interest between their public duties and their personal interests.
             938          (2) In a noncontiguous municipality as defined in Section 10-3c-102 , the provisions of
             939      this part may not be applied to an employee who is paid a salary or otherwise reimbursed by the
             940      county for services required to be provided to the noncontiguous municipality in accordance
             941      with Chapter 3c, Administration of Noncontiguous Municipalities.
             942          Section 25. Section 10-3b-501 is amended to read:
             943           10-3b-501. Authority to change to another form of municipal government.
             944          (1) As provided in this part, a municipality may change from the form of government
             945      under which it operates to:
             946          [(1)] (a) the council-mayor form of government with a five-member council;
             947          [(2)] (b) the council-mayor form of government with a seven-member council;
             948          [(3)] (c) the six-member council form of government; or
             949          [(4)] (d) the five-member council form of government.
             950          (2) A municipality other than a noncontiguous municipality, as defined in Section
             951      10-3c-102 , may not operate under the county mayor-municipal council form of government.
             952          Section 26. Section 10-3b-601 is enacted to read:
             953     
Part 6. County Mayor-Municipal Council Form of Government

             954          10-3b-601. Application.
             955          The provisions of this part apply to a municipality located in a county of the first class
             956      in which noncontiguous areas are successfully incorporated as a municipality through an
             957      election in accordance with Sections 10-2-130 through 10-2-141 .


             958          Section 27. Section 10-3b-602 is enacted to read:
             959          10-3b-602. Separate branches of government under county mayor-municipal
             960      council form of government.
             961          The powers of municipal government in a municipality operating under the county
             962      mayor-municipal council form of government are vested in two separate, independent, and
             963      equal branches of municipal government consisting of:
             964          (1) a council composed of nine members; and
             965          (2) a mayor and, under the mayor's supervision, any executive or administrative
             966      departments, divisions, and offices and any executive or administrative officers provided for by
             967      statute or municipal ordinance.
             968          Section 28. Section 10-3b-603 is enacted to read:
             969          10-3b-603. Mayor in county mayor-municipal council form of government.
             970          (1) The mayor in a municipality operating under the county mayor-municipal council
             971      form of government:
             972          (a) (i) is the person who is the mayor of the county in which the municipality is
             973      located; and
             974          (ii) retains any powers and duties authorized under Title 17, Counties;
             975          (b) is the chief executive and administrative officer of the municipality;
             976          (c) exercises the executive and administrative powers and performs or supervises the
             977      performance of the executive and administrative duties and functions of the municipality;
             978          (d) shall:
             979          (i) keep the peace and enforce the laws of the municipality;
             980          (ii) execute the policies adopted by the council;
             981          (iii) appoint, with the council's advice and consent, a qualified person as, subject to
             982      Subsection (3), chief administrative officer, if required under the resolution or petition under
             983      Section 10-2-135 , that proposed the change to a county mayor-municipal council form of
             984      government;
             985          (iv) provide to the council, at intervals provided by ordinance and as provided in Title
             986      17, Chapter 36, Uniform Fiscal Procedures Act for Counties, a written report to the council
             987      setting forth:
             988          (A) the amount of budget appropriations;


             989          (B) total disbursements from the appropriations;
             990          (C) the amount of indebtedness incurred or contracted against each appropriation,
             991      including disbursements and indebtedness incurred and not paid; and
             992          (D) the percentage of the appropriations encumbered;
             993          (v) report to the council the condition and needs of the municipality;
             994          (vi) report to the council any release granted under Subsection (1)(e)(xii);
             995          (vii) if the mayor remits a fine or forfeiture under Subsection (1)(e)(xi), report the
             996      remittance to the council at the council's next meeting after the remittance; and
             997          (viii) perform each other duty:
             998          (A) prescribed by statute; or
             999          (B) required by a municipal ordinance that is not inconsistent with statute;
             1000          (e) may:
             1001          (i) subject to budget constraints:
             1002          (A) appoint a chief administrative officer subject to Subsections (3)(b) and (4), and one
             1003      or more deputies or administrative assistants to the mayor; or
             1004          (B) create any other administrative office that the mayor considers necessary for good
             1005      government of the municipality and appoint a person to that office;
             1006          (ii) with the council's advice and consent and except as otherwise specifically limited
             1007      by statute, appoint each member of a statutory commission, board, or committee of the
             1008      municipality;
             1009          (iii) dismiss any person appointed by the mayor;
             1010          (iv) as provided in Section 10-3b-605 , veto an ordinance, tax levy, or appropriation
             1011      passed by the council;
             1012          (v) exercise control of and supervise each executive or administrative department,
             1013      division, or office of the municipality;
             1014          (vi) within the general provisions of statute and ordinance, regulate and prescribe the
             1015      powers and duties of each other executive or administrative officer or employee of the
             1016      municipality;
             1017          (vii) attend each council meeting, take part in council meeting discussions, and freely
             1018      give advice to the council;
             1019          (viii) appoint a budget officer to serve in place of the mayor to comply with and fulfill


             1020      in all other respects the requirements of Title 17, Chapter 36, Uniform Fiscal Procedures Act
             1021      for Counties;
             1022          (ix) execute an agreement on behalf of the municipality, or delegate, by written
             1023      executive order, the authority to execute an agreement on behalf of the municipality if the
             1024      obligation under the agreement is within certified budget appropriations;
             1025          (x) at any reasonable time, examine and inspect the official books, papers, records, or
             1026      documents of:
             1027          (A) the municipality; or
             1028          (B) any officer, employee, or agent of the municipality;
             1029          (xi) remit fines and forfeitures; and
             1030          (xii) release a person imprisoned for a violation of a municipal ordinance; and
             1031          (f) may not vote on any matter before the council.
             1032          (2) (a) The first mayor under a newly established county mayor-municipal council form
             1033      of government shall, within six months after taking office, draft and submit to the council a
             1034      proposed ordinance:
             1035          (i) providing for the division of the municipality's administrative service into
             1036      departments, divisions, and bureaus; and
             1037          (ii) defining the functions and duties of each department, division, and bureau.
             1038          (b) Before the council adopts an ordinance on the municipality's administrative service,
             1039      the mayor may establish temporary rules and regulations to ensure efficiency and effectiveness
             1040      in the divisions of the municipal government.
             1041          (3) (a) As used in this Subsection (3), "interim vacancy period" means the period of
             1042      time that:
             1043          (i) begins on the day on which a regular general election described in Section 17-16-6
             1044      is held to elect a mayor; and
             1045          (ii) ends on the day on which the mayor-elect begins the mayor's term.
             1046          (b) Each person appointed as chief administrative officer under Subsection (1)(d)(iii)
             1047      shall be appointed on the basis of:
             1048          (i) the person's ability and prior experience in the field of public administration; and
             1049          (ii) any other qualification prescribed by ordinance.
             1050          (c) (i) The mayor may not appoint a chief administrative officer during an interim


             1051      vacancy period.
             1052          (ii) Notwithstanding Subsection (3)(c)(i):
             1053          (A) the mayor may appoint an interim chief administrative officer during an interim
             1054      vacancy period; and
             1055          (B) the interim chief administrative officer's term shall expire once a new chief
             1056      administrative officer is appointed by the new mayor after the interim vacancy period has
             1057      ended.
             1058          (d) Subsection (3)(c) does not apply if the mayor who holds office on the day of the
             1059      regular general election is re-elected to the county mayor's office for the following term.
             1060          (4) A mayor who appoints a chief administrative officer in accordance with this section
             1061      may not, on or after May 13, 2014, enter into an employment contract that contains an
             1062      automatic renewal provision with the chief administrative officer.
             1063          Section 29. Section 10-3b-604 is enacted to read:
             1064          10-3b-604. Council in county mayor-municipal council form of government.
             1065          (1) The council in a municipality operating under a county mayor-municipal council
             1066      form of government:
             1067          (a) shall:
             1068          (i) by ordinance, provide for the manner in which:
             1069          (A) municipal property is bought, sold, traded, encumbered, or otherwise transferred;
             1070      and
             1071          (B) a subdivision or annexation is approved, disapproved, or otherwise regulated;
             1072          (ii) pass ordinances, appropriate funds, and review municipal administration;
             1073          (iii) perform all duties that the law imposes on the council; and
             1074          (iv) elect one of its members to be the chair of the council;
             1075          (b) may:
             1076          (i) adopt an ordinance, to be known as the municipal administrative code:
             1077          (A) dividing administrative services not otherwise provided by the county into
             1078      departments, divisions, and bureaus; and
             1079          (B) defining the functions and duties of each department, division, and bureau that is
             1080      not under the control of the county;
             1081          (ii) adopt an ordinance for departments, divisions, or bureaus not under the control of


             1082      the county as described in Sections 10-3b-606 and 10-3c-202 :
             1083          (A) creating, consolidating, or abolishing a department, division, or bureau; and
             1084          (B) defining or altering the functions and duties of each department, division, and
             1085      bureau;
             1086          (iii) notwithstanding Subsection (1)(c)(iii), make suggestions or recommendations to a
             1087      subordinate of the mayor;
             1088          (iv) (A) notwithstanding Subsection (1)(c), appoint a committee of council members or
             1089      citizens to conduct an investigation into an officer, department, or agency of the municipality,
             1090      or any other matter relating to the welfare of the municipality; and
             1091          (B) delegate to an appointed committee powers of inquiry that the council considers
             1092      necessary;
             1093          (v) make and enforce any additional rule or regulation for the government of the
             1094      council, the preservation of order, and the transaction of the council's business that the council
             1095      considers necessary; and
             1096          (vi) unless otherwise provided, take any action allowed under Section 10-8-84 ; and
             1097          (c) may not:
             1098          (i) direct or request, other than in writing, the appointment of a person to or the
             1099      removal of a person from an executive municipal office;
             1100          (ii) interfere in any way with an executive officer's performance of the officer's duties;
             1101      or
             1102          (iii) publicly or privately give orders to a subordinate of the mayor.
             1103          (2) A member of a council in a municipality operating under the county
             1104      mayor-municipal council form of government may not have any other compensated
             1105      employment with the municipality.
             1106          (3) A council member is:
             1107          (a) elected as a nonpartisan candidate; and
             1108          (b) elected and serves a term in accordance with Chapter 3, Part 2, Election of
             1109      Governing Body.
             1110          (4) This section may not be construed to grant a power to or otherwise authorize a
             1111      municipal council with a power that is granted to or an authority assigned to a county
             1112      governing body or county legislative body to govern, administer, or control a service provided


             1113      to, or personnel who provide a service to, the municipality in accordance with Section
             1114      10-3c-202 .
             1115          Section 30. Section 10-3b-605 is enacted to read:
             1116          10-3b-605. Presenting council action to mayor -- Veto -- Reconsideration -- When
             1117      ordinance, tax levy, or appropriation takes effect.
             1118          (1) The council in each municipality operating under a county mayor-municipal
             1119      council form of municipal government shall present to the mayor each ordinance, tax levy, and
             1120      appropriation passed by the council.
             1121          (2) (a) The mayor in a municipality operating under a county mayor-municipal council
             1122      form of municipal government may veto an ordinance or tax levy or all or any part of an
             1123      appropriation passed by the council.
             1124          (b) If a mayor vetoes an ordinance or tax levy or all or any part of an appropriation, the
             1125      mayor shall return the ordinance, tax levy, or appropriation to the council within 15 days after
             1126      the council presents the ordinance, tax levy, or appropriation to the mayor, with a statement
             1127      explaining the mayor's objections.
             1128          (3) At its next meeting following a mayor's veto under Subsection (2), the council shall
             1129      reconsider the vetoed ordinance, tax levy, or appropriation.
             1130          (4) An ordinance, tax levy, or appropriation passed by the council takes effect upon
             1131      recording as provided in Chapter 3, Part 7, Municipal Ordinances, Resolutions, and Procedure,
             1132      if:
             1133          (a) the mayor signs the ordinance, tax levy, or appropriation;
             1134          (b) the mayor fails to sign the ordinance, tax levy, or appropriation within 15 days after
             1135      the council presents the ordinance, tax levy, or appropriation to the mayor; or
             1136          (c) following a veto, the council reconsiders the ordinance, tax levy, or appropriation
             1137      and passes it by a vote of at least two-thirds of all council members.
             1138          Section 31. Section 10-3b-606 is enacted to read:
             1139          10-3b-606. Municipal offices filled by county officers.
             1140          (1) (a) The following officials elected or appointed, or persons employed by, the county
             1141      in which a municipality operating under the county mayor-municipal council form of
             1142      government is located shall, for the purposes of interpreting and complying with applicable
             1143      law, fulfill the responsibilities and hold the following municipal offices or positions:


             1144          (i) the county treasurer shall fulfill the duties and hold the powers of treasurer for the
             1145      municipality;
             1146          (ii) the county clerk shall fulfill the duties and hold the powers of recorder and clerk for
             1147      the municipality;
             1148          (iii) the county engineer shall fulfill the duties and hold the powers of engineer for the
             1149      municipality;
             1150          (iv) subject to Subsection (1)(b), the county auditor shall fulfill the duties and hold the
             1151      powers of auditor for the municipality; and
             1152          (v) except as otherwise provided, the county executive, director, or other head of a
             1153      county agency, program, or department that provides a service, described in Subsection
             1154      10-3c-202 (1), to the municipality shall fulfill the duties and hold the powers of executive,
             1155      director, or head of the applicable municipal agency, program, or department.
             1156          (b) (i) The county auditor shall fulfill the duties and hold the powers of auditor for the
             1157      municipality to the extent that the county auditor's powers and duties are described in and
             1158      delegated to the county auditor in accordance with Title 17, Chapter 19a, County Auditor, and
             1159      a municipal auditor's powers and duties described in this title are the same.
             1160          (ii) Notwithstanding Subsection (1)(b), in a municipality with the county
             1161      mayor-municipal council form of government, services described in Sections 17-19a-203 ,
             1162      17-19a-204 , and 17-19a-205 , and services other than those described in Subsection (1)(b)(i)
             1163      that are provided by a municipal auditor in accordance with this title that are required by law
             1164      shall be performed by county staff other than the county auditor.
             1165          (2) (a) Nothing in Subsection (1) may be construed to relieve an official described in
             1166      Subsections (1)(a)(i) through (v) of a duty to either the county or municipality or a duty to
             1167      fulfill that official's position as required by law.
             1168          (b) Notwithstanding Subsection (2)(a), an official or the official's deputy or other
             1169      person described in Subsections (1)(a)(i) through (v):
             1170          (i) is elected, appointed, or otherwise employed, in accordance with the provisions of
             1171      Title 17, Counties, as applicable to that official's or person's county office;
             1172          (ii) is paid a salary and benefits and subject to employment discipline in accordance
             1173      with the provisions of Title 17, Counties, as applicable to that official's or person's county
             1174      office;


             1175          (iii) is not subject to:
             1176          (A) Chapter 3, Part 13, Municipal Officers' and Employees' Ethics Act; or
             1177          (B) Chapter 3, Part 11, Personnel Rules and Benefits; and
             1178          (iv) is not required to provide a bond for the applicable municipal office if a bond for
             1179      the office is required by this title.
             1180          Section 32. Section 10-3b-607 is enacted to read:
             1181          10-3b-607. Rules and regulations by municipal officers.
             1182          A municipal officer in a municipality operating under a county mayor-municipal
             1183      council form of government may prescribe rules and regulations, not inconsistent with statute,
             1184      municipal ordinance, or the county personnel management act and policies.
             1185          Section 33. Section 10-3c-101 is enacted to read:
             1186     
CHAPTER 3c. ADMINISTRATION OF NONCONTIGUOUS MUNICIPALITIES

             1187     
Part 1. General Provisions

             1188          10-3c-101. Title.
             1189          This chapter is known as "Administration of Noncontiguous Municipalities."
             1190          Section 34. Section 10-3c-102 is enacted to read:
             1191          10-3c-102. Definitions.
             1192          As used in this chapter:
             1193          (1) "Municipal service" is a service identified in Section 17-34-1 or 17-36-3 .
             1194          (2) "Noncontiguous municipality" means a municipality incorporated in accordance
             1195      with Sections 10-2-130 through 10-2-141 .
             1196          Section 35. Section 10-3c-201 is enacted to read:
             1197     
Part 2. Administration of Noncontiguous Municipality

             1198          10-3c-201. Budget.
             1199          (1) A noncontiguous municipality shall adopt the same fiscal period as the fiscal period
             1200      of the county in which it is located, in accordance with Section 17-36-3.5 .
             1201          (2) Notwithstanding any other provision of law, a noncontiguous municipality is
             1202      subject to the provisions of Title 17, Chapter 36, Uniform Fiscal Procedures Act for Counties.
             1203          Section 36. Section 10-3c-202 is enacted to read:
             1204          10-3c-202. Administrative and operational services provided by the county.
             1205          (1) The county in which a noncontiguous municipality is located shall provide for the


             1206      noncontiguous municipality:
             1207          (a) all administrative services, including:
             1208          (i) human resources; and
             1209          (ii) accounting and budgeting services other than the adoption of a budget by the
             1210      municipal council;
             1211          (b) all municipal services; and
             1212          (c) all operational and other local government services, including:
             1213          (i) maintenance of municipal infrastructure;
             1214          (ii) public safety;
             1215          (iii) road construction and maintenance;
             1216          (iv) animal control services;
             1217          (v) curb, gutter, and sidewalk services;
             1218          (vi) snow removal;
             1219          (vii) streetlights; and
             1220          (viii) staff to assist with planning and zoning.
             1221          (2) A county may provide the services described in Subsection (1)(b) or (c) by
             1222      contracting with another entity or through a local or special service district.
             1223          (3) In accordance with this section or other provision of law, the noncontiguous
             1224      municipality shall reimburse the county for a service provided to the noncontiguous
             1225      municipality that is not otherwise provided on a county-wide basis.
             1226          Section 37. Section 10-3c-203 is enacted to read:
             1227          10-3c-203. Energy sales and use tax prohibited.
             1228          A noncontiguous municipality may not levy a municipal energy sales and use tax as
             1229      described in Chapter 1, Part 3, Municipal Energy Sales and Use Tax Act.
             1230          Section 38. Section 10-6-103 is amended to read:
             1231           10-6-103. Applicability to all cities -- Exception.
             1232          (1) This chapter shall apply to all cities, including charter cities.
             1233          (2) Notwithstanding Subsection (1), this chapter does not apply to a municipality with
             1234      the county mayor-municipal council form of government as described in Chapter 3b, Part 6,
             1235      County Mayor-Municipal Council Form of Government.
             1236          Section 39. Section 17-34-1 is amended to read:


             1237           17-34-1. Counties may provide municipal services -- County shall provide
             1238      municipal services to noncontiguous municipality -- Limitation -- First class counties to
             1239      provide certain services -- Counties allowed to provide certain services in recreational
             1240      areas.
             1241          (1) For purposes of this chapter, except as otherwise provided in Subsection (3):
             1242          (a) "Greater than class C radioactive waste" has the same meaning as in Section
             1243      19-3-303 .
             1244          (b) "High-level nuclear waste" has the same meaning as in Section 19-3-303 .
             1245          (c) "Municipal-type services" means:
             1246          (i) fire protection service;
             1247          (ii) waste and garbage collection and disposal;
             1248          (iii) planning and zoning;
             1249          (iv) street lighting;
             1250          (v) in a county of the first class:
             1251          (A) advanced life support and paramedic services; and
             1252          (B) detective investigative services; and
             1253          (vi) all other services and functions that are required by law to be budgeted,
             1254      appropriated, and accounted for from a municipal services fund or a municipal capital projects
             1255      fund as defined under Chapter 36, Uniform Fiscal Procedures Act for Counties.
             1256          (d) "Noncontiguous municipality" is as defined in Section 10-3c-102 .
             1257          [(d)] (e) "Placement" has the same meaning as in Section 19-3-303 .
             1258          [(e)] (f) "Storage facility" has the same meaning as in Section 19-3-303 .
             1259          [(f)] (g) "Transfer facility" has the same meaning as in Section 19-3-303 .
             1260          (2) A county [may]:
             1261          (a) may:
             1262          [(a)] (i) provide municipal-type services to areas of the county outside the limits of
             1263      cities and towns without providing the same services to cities or towns; and
             1264          [(b)] (ii) fund those services by:
             1265          [(i)] (A) levying a tax on taxable property in the county outside the limits of cities and
             1266      towns; or
             1267          [(ii)] (B) charging a service charge or fee to persons benefitting from the


             1268      municipal-type services[.]; and
             1269          (b) shall:
             1270          (i) provide municipal-type services to a noncontiguous municipality; and
             1271          (ii) fund those services by collecting payment for those services provided from the
             1272      noncontiguous municipality.
             1273          (3) A county may not:
             1274          (a) provide, contract to provide, or agree in any manner to provide municipal-type
             1275      services, as these services are defined in Section 19-3-303 , to any area under consideration for
             1276      a storage facility or transfer facility for the placement of high-level nuclear waste, or greater
             1277      than class C radioactive waste; or
             1278          (b) seek to fund services for these facilities by:
             1279          (i) levying a tax; or
             1280          (ii) charging a service charge or fee to persons benefitting from the municipal-type
             1281      services.
             1282          (4) Each county of the first class shall provide to the area of the county outside the
             1283      limits of cities and towns and to a noncontiguous municipality:
             1284          (a) advanced life support and paramedic services; and
             1285          (b) detective investigative services.
             1286          (5) (a) A county may provide fire, paramedic, and police protection services in any area
             1287      of the county outside the limits of cities and towns that is designated as a recreational area in
             1288      accordance with the provisions of this Subsection (5).
             1289          (b) A county legislative body may designate any area of the county outside the limits of
             1290      cities and towns as a recreational area if:
             1291          (i) the area has fewer than 1,500 residents and is primarily used for recreational
             1292      purposes, including canyons, ski resorts, wilderness areas, lakes and reservoirs, campgrounds,
             1293      or picnic areas; and
             1294          (ii) the county legislative body makes a finding that the recreational area is used by
             1295      residents of the county who live both inside and outside the limits of cities and towns.
             1296          (c) Fire, paramedic, and police protection services needed to primarily serve those
             1297      involved in the recreation activities in areas designated as recreational areas by the county
             1298      legislative body in accordance with Subsection (5)(b) may be funded from the county general


             1299      fund.
             1300          Section 40. Section 17-34-3 is amended to read:
             1301           17-34-3. Taxes or service charges.
             1302          (1) (a) If a county furnishes the municipal-type services and functions described in
             1303      Section 17-34-1 to areas of the county outside the limits of incorporated cities or towns, the
             1304      county shall defray the entire cost of the services or functions [so] furnished [shall be defrayed]
             1305      from funds that the county has derived from:
             1306          (i) taxes that the county may lawfully levy or impose outside the limits of incorporated
             1307      towns or cities;
             1308          (ii) service charges or fees the county may impose upon the persons benefited in any
             1309      way by the services or functions; or
             1310          (iii) a combination of these sources.
             1311          (b) (i) If a county is required to provide municipal-type services to a noncontiguous
             1312      municipality in accordance with this chapter and Title 10, Chapter 3c, Administration of
             1313      Noncontiguous Municipalities, the county shall pay the entire cost of the services or functions
             1314      furnished from funds payed by the noncontiguous municipality to the county.
             1315          (ii) A noncontiguous municipality that receives municipal-type services from a county
             1316      shall repay the county in full for services rendered.
             1317          [(b)] (c) As the taxes [or], service charges, or fees are levied and collected, or as
             1318      repayment from a noncontiguous municipality is received, they shall be placed in a special
             1319      revenue fund of the county and shall be disbursed only for the rendering of the services or
             1320      functions established in Section 17-34-1 :
             1321          (i) within the unincorporated areas of the county [or];
             1322          (ii) as provided in Subsection 10-2-121 (2)[.]; or
             1323          (iii) within a noncontiguous municipality.
             1324          (2) (a) For the purpose of levying taxes, service charges, or fees provided in this
             1325      section, the county legislative body may establish a district or districts in the unincorporated
             1326      areas of the county.
             1327          (b) A district established by a county as provided in Subsection (2)(a) may be
             1328      reorganized as a local district in accordance with the procedures set forth in Sections
             1329      17D-1-601 , 17D-1-603 , and 17D-1-604 .


             1330          (3) Nothing contained in this chapter may be construed to authorize counties to impose
             1331      or levy taxes not otherwise allowed by law.
             1332          (4) Notwithstanding any other provision of this chapter, a county providing fire,
             1333      paramedic, and police protection services in a designated recreational area, as provided in
             1334      Subsection 17-34-1 (5), may fund those services from the county general fund with revenues
             1335      derived from both inside and outside the limits of cities and towns, and the funding of those
             1336      services is not limited to unincorporated area revenues.
             1337          Section 41. Section 17-34-5 is amended to read:
             1338           17-34-5. Budgeting, accounting for, and disbursing of funds -- Annual audit.
             1339          (1) (a) With respect to the budgeting, accounting for, and disbursing of funds to furnish
             1340      the municipal-type services and functions described in Section 17-34-1 to areas of the county
             1341      outside the limits of incorporated towns and cities, including levying of taxes and imposition of
             1342      fees and charges under Section 17-34-3 , or providing municipal-type services to a
             1343      noncontiguous municipality, each county legislative body shall separately budget and strictly
             1344      account for and apportion to the costs of providing municipal-type services and functions the
             1345      following:
             1346          (i) the salaries of each county commissioner and the salaries and wages of all other
             1347      elected and appointed county officials and employees;
             1348          (ii) the operation and maintenance costs of each municipal-type service or function
             1349      provided, set forth separately as line items in the Municipal Services Fund budget;
             1350          (iii) the cost of renting or otherwise using capital facilities for the purposes of
             1351      providing municipal-type services or functions; and
             1352          (iv) all other costs including administrative costs associated, directly or indirectly, with
             1353      the costs of providing municipal-type services or functions.
             1354          (b) At all times these funds and any expenditures from these funds shall be separately
             1355      accounted for and utilized only for the purposes of providing municipal-type services and
             1356      functions to areas of the county outside the limits of incorporated towns or cities.
             1357          (2) To implement Subsection (1):
             1358          (a) a budget shall be adopted and administered in the same manner as the budget for
             1359      general purposes of the county which furnishes the municipal-type services and functions is
             1360      adopted and administered, either as a part of the general budget or separate from it;


             1361          (b) funds for the purposes of furnishing municipal-type services and functions under
             1362      this chapter shall be collected, held, and administered in the same manner as other funds of the
             1363      county are collected, held, and administered, but shall be segregated and separately maintained,
             1364      except that where, in the judgment of the county legislative body, advantages inure to the fund
             1365      from coinvestment of these funds and other funds also subject to control by the county
             1366      legislative body, the county legislative body may direct this coinvestment, but in no event may
             1367      the funds to furnish municipal-type services and functions or the income from their investment
             1368      be used for purposes other than those described in Section 17-34-1 ;
             1369          (c) expenditures shall be made in the same manner as other expenditures of the county
             1370      are made; and
             1371          (d) any taxes levied under this chapter shall be levied at the same time and in the same
             1372      manner as other taxes of the county are levied.
             1373          (3) An annual audit of the budgeting, accounting for, and disbursing of funds used to
             1374      furnish municipal-type services and functions, shall be conducted by an independent certified
             1375      public accountant.
             1376          Section 42. Section 17-36-2 is amended to read:
             1377           17-36-2. Purpose of chapter.
             1378          The purpose of this act is to codify and revise the law relating to county and
             1379      noncontiguous municipality fiscal procedures in order to establish uniform accounting,
             1380      budgeting, and financial reporting procedures for all counties and noncontiguous
             1381      municipalities. The act provides for the establishment of uniform procedures for the adoption
             1382      and administration of fiscal and optional performance budgets.
             1383          The act is intended to enable counties and noncontiguous municipalities to make
             1384      financial plans for both current and capital expenditures, to ensure that executive staffs
             1385      administer their respective functions in accordance with adopted budgets, and to provide
             1386      taxpayers and investors with information about the financial policies and administration of the
             1387      county or noncontiguous municipalities in which they are interested.
             1388          Section 43. Section 17-36-3 is amended to read:
             1389           17-36-3. Definitions.
             1390          As used in this chapter:
             1391          (1) "Accrual basis of accounting" means a method where revenues are recorded when


             1392      earned and expenditures recorded when they become liabilities notwithstanding that the receipt
             1393      of the revenue or payment of the expenditure may take place in another accounting period.
             1394          (2) "Appropriation" means an allocation of money for a specific purpose.
             1395          (3) (a) "Budget" means a plan for financial operations for a fiscal period, embodying
             1396      estimates for proposed expenditures for given purposes and the means of financing the
             1397      expenditures.
             1398          (b) "Budget" may refer to the budget of a fund for which a budget is required by law, or
             1399      collectively to the budgets for all those funds.
             1400          (4) "Budgetary fund" means a fund for which a budget is required, such as those
             1401      described in Section 17-36-8 .
             1402          (5) "Budget officer" means:
             1403          (a) for a county of the second, third, fourth, fifth, or sixth class, the county auditor,
             1404      county clerk, or county executive as provided in Subsection 17-19-19 (1); [or]
             1405          (b) for a county of the first class, a person described in Section 17-19a-203 [.]; or
             1406          (c) for a noncontiguous municipality, the mayor or, with the advice and consent of the
             1407      municipal council, the mayor's designee.
             1408          (6) "Budget period" means the fiscal period for which a budget is prepared.
             1409          (7) "Check" means an order in a specific amount drawn upon the depositary by any
             1410      authorized officer in accordance with Section 17-19-3 , 17-19a-301 , 17-24-1 , or 17-24-1.1 , as
             1411      applicable.
             1412          (8) "Countywide service" means a service provided in both incorporated and
             1413      unincorporated areas of a county.
             1414          (9) "Current period" means the fiscal period in which a budget is prepared and adopted.
             1415          (10) "Department" means any functional unit within a fund which carries on a specific
             1416      activity.
             1417          (11) "Encumbrance system" means a method of budgetary control where part of an
             1418      appropriation is reserved to cover a specific expenditure by charging obligations, such as
             1419      purchase orders, contracts, or salary commitments to an appropriation account. An expenditure
             1420      ceases to be an encumbrance when paid or when the actual liability is entered in the books of
             1421      account.
             1422          (12) "Estimated revenue" means any revenue estimated to be received during the


             1423      budget period in any fund for which a budget is prepared.
             1424          (13) "Fiscal period" means the annual or biennial period for recording county fiscal
             1425      operations.
             1426          (14) "Fund" means an independent fiscal and accounting entity comprised of a sum of
             1427      money or other resources segregated for a specific purpose or objective.
             1428          (15) "Fund balance" means the excess of the assets over liabilities, reserves, and
             1429      contributions, as reflected by its books of account.
             1430          (16) "Fund deficit" means the excess of liabilities, reserves, and contributions over its
             1431      assets, as reflected by its books of account.
             1432          (17) "General Fund" means the fund used to account for all receipts, disbursements,
             1433      assets, liabilities, reserves, fund balances, revenues, and expenditures not required to be
             1434      accounted for in other funds.
             1435          (18) "Interfund loan" means a loan of cash from one fund to another, subject to future
             1436      repayment; but it does not constitute an expenditure or a use of retained earnings, fund balance,
             1437      or unappropriated surplus of the lending fund.
             1438          (19) "Last completed fiscal period" means the fiscal period next preceding the current
             1439      period.
             1440          (20) "Modified accrual basis of accounting" means a method under which expenditures
             1441      other than accrued interest on general long-term debt are recorded at the time liabilities are
             1442      incurred and revenues are recorded when they become measurable and available to finance
             1443      expenditures of the current period.
             1444          (21) "Municipal capital project" means the acquisition, construction, or improvement
             1445      of capital assets that facilitate providing municipal service.
             1446          (22) "Municipal service" means a service not provided on a countywide basis and not
             1447      accounted for in an enterprise fund, and includes police patrol, fire protection, culinary or
             1448      irrigation water retail service, water conservation, local parks, sewers, sewage treatment and
             1449      disposal, cemeteries, garbage and refuse collection, street lighting, airports, planning and
             1450      zoning, local streets and roads, curb, gutter, and sidewalk maintenance, and ambulance service.
             1451          (23) "Noncontiguous municipality" is as defined in Section 10-3c-102 .
             1452          [(23)] (24) "Retained earnings" means that part of the net earnings retained by an
             1453      enterprise or internal service fund which is not segregated or reserved for any specific purpose.


             1454          [(24)] (25) "Special fund" means any fund other than the General Fund, such as those
             1455      described in Section 17-36-6 .
             1456          [(25)] (26) "Unappropriated surplus" means that part of a fund which is not
             1457      appropriated for an ensuing budget period.
             1458          [(26)] (27) "Warrant" means an order in a specific amount drawn upon the treasurer by
             1459      the auditor.
             1460          Section 44. Section 17-36-3.5 is amended to read:
             1461           17-36-3.5. Fiscal period -- Annual or biennial.
             1462          (1) [Except as provided in Subsection (2), the] The fiscal period for each county and
             1463      each noncontiguous municipality shall be an annual period beginning on January 1 of each year
             1464      and ending December 31 of the same calendar year.
             1465          (2) (a) Notwithstanding Subsection (1), the legislative body of a county may, by
             1466      ordinance, adopt for the county a fiscal period that is a biennial period beginning January 1 and
             1467      ending December 31 of the following calendar year.
             1468          (b) Each county adopting an ordinance under Subsection (2)(a) shall separately specify
             1469      in its budget the amount of ad valorem property tax it intends to levy and collect during both
             1470      the first half and the second half of the budget period.
             1471          (c) Each county that adopts a fiscal period that is a biennial period under Subsection
             1472      (2)(a) shall:
             1473          (i) comply with Sections 59-2-912 through 59-2-926 as if it had adopted a fiscal period
             1474      that is an annual period; and
             1475          (ii) allocate budgeted revenues and expenditures to each of the two annual periods in
             1476      the biennial budget.
             1477          (d) The legislative body of each county that adopts a fiscal period that is a biennial
             1478      period under Subsection (2)(a) shall, within 10 days after the adoption of the ordinance
             1479      adopting the biennial period, deliver a copy of the ordinance to the state auditor.
             1480          Section 45. Section 17-36-4 is amended to read:
             1481           17-36-4. State auditor -- Duties.
             1482          (1) The state auditor shall:
             1483          (a) prescribe a uniform system of fiscal procedures for the several counties and
             1484      noncontiguous municipalities;


             1485          (b) conduct a constant review and modification of such procedures to improve them;
             1486          (c) prepare and supply each county budget officer with suitable budget forms; and
             1487          (d) prepare instructional materials, conduct training programs, and render other
             1488      services deemed necessary to assist counties in implementing the uniform system.
             1489          (2) (a) The uniform system of procedure may include reasonable exceptions and
             1490      modifications applicable to [counties] a county or noncontiguous municipality with a
             1491      population of 25,000 or less, such population to be determined by the Utah Population Work
             1492      Committee. [Counties]
             1493          (b) A county or noncontiguous municipality may expand the uniform system to serve
             1494      better [their] its needs. [Deviations from or alterations to]
             1495          (c) A county or noncontiguous municipality may not deviate or alter the basic
             1496      prescribed classification system for the identity of funds and accounts [should not be made].
             1497          Section 46. Section 17-36-6 is amended to read:
             1498           17-36-6. Required funds and accounts.
             1499          (1) In its system of accounts, each county and noncontiguous municipality shall
             1500      maintain the following funds or account groups that are appropriate to its needs:
             1501          (a) a general fund;
             1502          (b) special revenue funds;
             1503          (c) debt service funds to account for the retirement of general obligation bonds or other
             1504      long-term indebtedness including the payment of interest;
             1505          (d) capital project funds, as required to account for the application of proceeds from the
             1506      sale of general obligation bonds or other general long-term debt, or funds derived from other
             1507      sources, to the specific purposes for which they are authorized;
             1508          (e) a separate fund for each utility or enterprise such as an airport fund, a sewer fund, a
             1509      water fund, or other similar funds;
             1510          (f) intragovernmental service funds;
             1511          (g) trust and agency funds such as a cemetery perpetual-care fund or a retirement fund;
             1512          (h) a separate fund for each special improvement district, which shall be known as a
             1513      special assessment fund;
             1514          (i) a ledger or group of accounts to record the details relating to the general fixed assets
             1515      of the county;


             1516          (j) a ledger or group of accounts to record the details relating to the general obligation
             1517      bonds or other long-term indebtedness of the county;
             1518          (k) municipal services fund as required in Section 17-36-9 ; and
             1519          (l) any other funds for special purposes required or established under the uniform
             1520      system of budgeting, accounting, and reporting.
             1521          (2) The county or noncontiguous municipality shall classify the funds and account
             1522      groups established under the authority of this section according to the uniform procedures
             1523      established by this chapter.
             1524          Section 47. Section 17-36-7 is amended to read:
             1525           17-36-7. Basis of accounting.
             1526          The basis of accounting to record transactions by [counties] a county or noncontiguous
             1527      municipality shall be either accrual or modified accrual as prescribed in the uniform system of
             1528      budgeting, accounting, and reporting.
             1529          Section 48. Section 17-36-8 is amended to read:
             1530           17-36-8. Preparation of budgets.
             1531          The budget officer of each county or noncontiguous municipality shall prepare each
             1532      budget period, on forms provided pursuant to Section 17-36-4 , a budget for each of the
             1533      following funds which are included in its system of accounts:
             1534          (1) general fund;
             1535          (2) special revenue funds;
             1536          (3) debt service funds;
             1537          (4) capital project funds; and
             1538          (5) any other fund or funds for which a budget is required by the uniform system of
             1539      budgeting, accounting, and reporting.
             1540          Section 49. Section 17-36-9 is amended to read:
             1541           17-36-9. Budget -- Financial plan -- Contents -- Municipal services and capital
             1542      projects funds.
             1543          (1) (a) The budget for each fund shall provide a complete financial plan for the budget
             1544      period and shall contain in tabular form classified by the account titles as required by the
             1545      uniform system of budgeting, accounting, and reporting:
             1546          (i) estimates of all anticipated revenues;


             1547          (ii) all appropriations for expenditures; and
             1548          (iii) any additional data required by Section 17-36-10 or 17-36-10.1 , as applicable, or
             1549      by the uniform system of budgeting, accounting, and reporting.
             1550          (b) The total of appropriated expenditures shall be equal to the total of anticipated
             1551      revenues.
             1552          (2) (a) Each first-, second-, and third-class county and a noncontiguous municipality
             1553      that provides municipal-type services under Section 17-34-1 shall:
             1554          (i) establish a special revenue fund, "Municipal Services Fund," and a capital projects
             1555      fund, "Municipal Capital Projects Fund," or establish a local district or special service district
             1556      to provide municipal services; and
             1557          (ii) budget appropriations for municipal services and municipal capital projects from
             1558      these funds.
             1559          (b) The Municipal Services Fund is subject to the same budgetary requirements as the
             1560      county's general fund.
             1561          (c) (i) Except as provided in Subsection (2)(c)(ii), the county or noncontiguous
             1562      municipality may deposit revenue derived from any taxes otherwise authorized by law, income
             1563      derived from the investment of money contained within the municipal services fund and the
             1564      municipal capital projects fund, the appropriate portion of federal money, and fees collected
             1565      into a municipal services fund, a special fund, and a municipal capital projects fund.
             1566          (ii) The county may not deposit revenue derived from a fee, tax, or other source based
             1567      upon a countywide assessment or from a countywide service or function into a municipal
             1568      services fund or a municipal capital projects fund.
             1569          (d) The maximum accumulated unappropriated surplus in the municipal services fund,
             1570      as determined prior to adoption of the tentative budget, may not exceed an amount equal to the
             1571      total estimated revenues of the current fiscal period.
             1572          Section 50. Section 17-36-10 is amended to read:
             1573           17-36-10. Preparation of tentative budget.
             1574          (1) (a) On or before December 31, 2014, a county of the second, third, fourth, fifth, or
             1575      sixth class is not subject to the provisions of this section; and
             1576          (b) on or after January 1, 2015, a county of the second, third, fourth, fifth, or sixth class
             1577      is subject to the provisions of this section.


             1578          (2) On or before the first day of the next to last month of every fiscal period, the budget
             1579      officer shall prepare for the next budget period and file with the governing body a tentative
             1580      budget for each fund for which a budget is required.
             1581          (3) (a) A department for which county funds are appropriated shall file with the budget
             1582      officer not less than three months before the commencement of each fiscal year on forms
             1583      furnished by the budget officer a detailed estimate and statement of the revenue and necessary
             1584      expenditures of the department for the next budget year.
             1585          (b) The estimate and statement described in Subsection (3)(a) shall set forth:
             1586          (i) the number of persons to be regularly employed;
             1587          (ii) the kinds of service the department will perform;
             1588          (iii) the salaries and wages the department expects to pay;
             1589          (iv) the kind of work the department will perform and the improvements the
             1590      department expects to make; and
             1591          (v) the estimated cost of the service, work, and improvements.
             1592          (c) The statement shall also record performance data expressed in work units, unit
             1593      costs, man hours, and man years sufficient in detail, content, and scope to permit the budget
             1594      officer to prepare and process the county or noncontiguous municipality budget.
             1595          (4) In the preparation of the budget, the budget officer and all other county or
             1596      noncontiguous municipality officers are subject to Sections 17-36-1 through 17-36-44 and to
             1597      the uniform system of budgeting, accounting, and reporting established therein.
             1598          (5) In the tentative budget, the budget officer shall set forth in tabular form:
             1599          (a) actual revenues and expenditures in the last completed fiscal period;
             1600          (b) estimated total revenues and expenditures for the current fiscal period;
             1601          (c) the estimated available revenues and expenditures for the ensuing budget period
             1602      computed by determining:
             1603          (i) the estimated expenditure for each fund after review of each departmental budget
             1604      request;
             1605          (ii) (A) the total revenue requirements of the fund;
             1606          (B) the part of the total revenue that will be derived from revenue sources other than
             1607      property tax; and
             1608          (C) the part of the total revenue that shall be derived from property taxes; and


             1609          (d) if required by the governing body, actual performance experience to the extent
             1610      available in work units, unit costs, man hours, and man years for each budgeted fund that
             1611      includes an appropriation for salaries or wages for the last completed fiscal period and the first
             1612      eight months of the current fiscal period if the county or noncontiguous municipality is on an
             1613      annual fiscal period, or the first 20 months of the current fiscal period if the county is on a
             1614      biennial fiscal period, together with the total estimated performance data of like character for
             1615      the current fiscal period and for the ensuing budget period.
             1616          (6) The budget officer may recommend modification of any departmental budget
             1617      request under Subsection (5)(c)(i) before it is filed with the governing body, if each department
             1618      head has been given an opportunity to be heard concerning the modification.
             1619          (7) (a) A tentative budget shall contain the estimates of expenditures submitted by any
             1620      department together with specific work programs and other supportive data as the governing
             1621      body requests.
             1622          (b) The budget officer shall include with the tentative budget by a supplementary
             1623      estimate of all capital projects or planned capital projects within the budget period and within
             1624      the next three succeeding years.
             1625          (8) (a) A budget officer that submits a tentative budget in a county or noncontiguous
             1626      municipality with a population in excess of 25,000 determined in accordance with Section
             1627      17-36-4 shall include with the tentative budget a budget message in explanation of the budget.
             1628          (b) The budget message shall contain an outline of the proposed financial policies of
             1629      the county or noncontiguous municipality for the budget period and describe the important
             1630      features of the budgetary plan. It shall also state the reasons for changes from the previous
             1631      fiscal period in appropriation and revenue items and explain any major changes in financial
             1632      policy.
             1633          (c) A budget message for [counties] a county or noncontiguous municipality with a
             1634      population of less than 25,000 is recommended but not incumbent upon the budget officer.
             1635          (9) (a) The governing body shall review, consider, and adopt a tentative budget in a
             1636      regular or special meeting called for that purpose.
             1637          (b) (i) Subject to Subsection (9)(b)(ii), the governing body may thereafter amend or
             1638      revise the tentative budget prior to public hearings on the tentative budget.
             1639          (ii) A governing body may not:


             1640          (A) reduce below the required minimum an appropriation required for debt retirement
             1641      and interest; or
             1642          (B) reduce, in accordance with Section 17-36-17 , an existing deficit.
             1643          Section 51. Section 17-36-12 is amended to read:
             1644           17-36-12. Notice of budget hearing.
             1645          (1) The governing body shall determine the time and place for the public hearing on the
             1646      adoption of the budget.
             1647          (2) Notice of such hearing shall be published:
             1648          (a) (i) at least seven days before the hearing in at least one newspaper of general
             1649      circulation within the county or noncontiguous municipality, as applicable, if there is such a
             1650      paper; or
             1651          (ii) if there is no newspaper as described in Subsection (2)(a)(i), by posting notice in
             1652      three conspicuous places within the county or noncontiguous municipality, as applicable, seven
             1653      days before the hearing; and
             1654          (b) on the Utah Public Notice Website created in Section 63F-1-701 , for seven days
             1655      before the hearing.
             1656          Section 52. Section 17-36-15 is amended to read:
             1657           17-36-15. Adoption of budget -- Immunity.
             1658          (1) (a) On or before December 31, 2014, a county of the second, third, fourth, fifth, or
             1659      sixth class is not subject to the provisions of this section; and
             1660          (b) on or after January 1, 2015, a county of the second, third, fourth, fifth, or sixth class
             1661      is subject to the provisions of this section.
             1662          (2) (a) On or before the last day of each fiscal period, the governing body by resolution
             1663      shall adopt the budget.
             1664          (b) A budget adopted in accordance with Subsection (2)(a) is, unless amended, in
             1665      effect for the next fiscal period.
             1666          (c) The budget officer shall:
             1667          (i) certify a copy of the final budget, and of any subsequent budget amendment; and
             1668          (ii) file a copy with the state auditor not later than 30 days after the day on which the
             1669      governing body adopts the budget.
             1670          (d) The budget officer shall file a certified copy of the budget in the office of the


             1671      budget officer for inspection by the public during business hours.
             1672          (3) (a) Except as provided in Subsection (3)[(b)](c), a county officer or county
             1673      employee may not file a legal action in state or federal court against the county, a department,
             1674      or a county officer for any matter related to the following:
             1675          (i) the adoption of a county budget;
             1676          (ii) a county appropriation;
             1677          (iii) a county personnel allocation; or
             1678          (iv) a fund related to the county budget, a county appropriation, or a county personnel
             1679      allocation.
             1680          (b) Except as provided in Subsection (3)(c), a noncontiguous municipality officer or
             1681      noncontiguous municipality employee may not file a legal action in state or federal court
             1682      against the noncontiguous municipality, a department, or a noncontiguous municipality officer
             1683      for any matter related to the following:
             1684          (i) the adoption of a noncontiguous municipality budget;
             1685          (ii) a noncontiguous municipality appropriation;
             1686          (iii) a noncontiguous municipality personnel allocation; or
             1687          (iv) a fund related to the noncontiguous municipality budget, a noncontiguous
             1688      municipality appropriation, or a noncontiguous municipality personnel allocation.
             1689          [(b)] (c) A county or district attorney may enforce a procedural requirement that
             1690      governs the adoption or approval of a budget in accordance with this chapter.
             1691          Section 53. Section 17-36-16 is amended to read:
             1692           17-36-16. Retained earnings -- Accumulation -- Restrictions -- Disbursements.
             1693          (1) A county or noncontiguous municipality may accumulate retained earnings in any
             1694      enterprise or internal service fund or a fund balance in any other fund; but with respect to the
             1695      General Fund, its use shall be restricted to the following purposes:
             1696          (a) to provide cash to finance expenditures from the beginning of the budget period
             1697      until general property taxes, sales taxes, or other revenues are collected;
             1698          (b) to provide a fund or reserve to meet emergency expenditures; and
             1699          (c) to cover unanticipated deficits for future years.
             1700          (2) (a) The maximum accumulated unappropriated surplus in the General Fund, as
             1701      determined prior to adoption of the tentative budget, may not exceed an amount equal to the


             1702      greater of:
             1703          (i) (A) for a county or noncontiguous municipality with a taxable value of
             1704      $750,000,000 or more and a population of 100,000 or more, 20% of the total revenues of the
             1705      General Fund for the current fiscal period; or
             1706          (B) for any other county or noncontiguous municipality, 50% of the total revenues of
             1707      the General Fund for the current fiscal period; and
             1708          (ii) the estimated total revenues from property taxes for the current fiscal period.
             1709          (b) Any surplus balance in excess of the above computed maximum shall be included
             1710      in the estimated revenues of the General Fund budget for the next fiscal period.
             1711          (3) Any fund balance exceeding 5% of the total General Fund revenues may be used
             1712      for budgetary purposes.
             1713          (4) (a) A county or noncontiguous municipality may appropriate funds from estimated
             1714      revenue in any budget period to a reserve for capital improvements within any capital
             1715      improvements fund which has been duly established by ordinance or resolution.
             1716          (b) Money in the reserves shall be allowed to accumulate from fiscal period to fiscal
             1717      period until the accumulated total is sufficient to permit economical expenditure for the
             1718      specified purposes.
             1719          (c) Disbursements from the reserves shall be made only by transfer to a revenue
             1720      account within a capital improvements fund pursuant to an appropriation for the fund.
             1721          (d) Expenditures from the capital improvement budget accounts shall conform to all
             1722      requirements of this act as it relates to the execution and control of budgets.
             1723          Section 54. Section 17-36-17 is amended to read:
             1724           17-36-17. Appropriations in final budget -- Limitations.
             1725          (1) The governing body of a county or noncontiguous municipality may not make any
             1726      appropriation in the final budget of any fund in excess of the estimated expendable revenue of
             1727      the fund for the budget period.
             1728          (2) There shall be included as an item of appropriation in the budget of each fund for
             1729      any fiscal period any existing deficit as of the close of the last completed fiscal period to the
             1730      extent of at least 5% of the total revenue of the fund in the last completed fiscal period or if the
             1731      deficit is less than 5% of the total revenue, an amount equal to the deficit.
             1732          Section 55. Section 17-36-19 is amended to read:


             1733           17-36-19. Encumbrance system.
             1734          Each county and noncontiguous municipality shall use an encumbrance system or other
             1735      budgetary controls to ensure that no expenditure is made for any item of an appropriation
             1736      unless there is a sufficient unencumbered balance in the appropriation and available funds,
             1737      except in cases of an emergency as hereinafter provided in Section 17-36-27 .
             1738          Section 56. Section 17-36-20 is amended to read:
             1739           17-36-20. Purchases or encumbrances by purchasing agent.
             1740          (1) (a) On or before December 31, 2014, a county of the second, third, fourth, fifth, or
             1741      sixth class is not subject to the provisions of this section; and
             1742          (b) on or after January 1, 2015, a county of the second, third, fourth, fifth, or sixth class
             1743      is subject to the provisions of this section.
             1744          (2) A person may not make a purchase or incur an encumbrance on behalf of a county
             1745      or noncontiguous municipality unless that person acts in accordance with an order by, or
             1746      approval of, the person duly authorized to act as purchasing agent for the county or
             1747      noncontiguous municipality, except encumbrances or expenditures directly investigated and
             1748      specifically approved by the executive or legislative body.
             1749          (3) Unless otherwise provided by the governing body, the budget officer or the budget
             1750      officer's agents shall serve as a purchasing agent.
             1751          Section 57. Section 17-36-21 is amended to read:
             1752           17-36-21. Expenditure limitation.
             1753          No officer or employee of a county or noncontiguous municipality shall make any
             1754      expenditure or encumbrance in excess of the total appropriation for any department. Any
             1755      obligation that is contracted by any such officer or employee in excess of the total departmental
             1756      appropriation is the personal obligation of the officer or employee and is unenforceable against
             1757      the county or noncontiguous municipality.
             1758          Section 58. Section 17-36-22 is amended to read:
             1759           17-36-22. Transfer of unexpended appropriation balance by department.
             1760          (1) After review by the budget officer and in accordance with budgetary and fiscal
             1761      policies or ordinances adopted by the county legislative body or noncontiguous municipal
             1762      council, any department may:
             1763          (a) transfer any unencumbered or unexpended appropriation balance or any part from


             1764      one expenditure account to another within the department during the budget year; or
             1765          (b) incur an excess expenditure of one or more line items.
             1766          (2) A transfer or expenditure under Subsection (1) may not occur if the transfer or
             1767      expenditure would cause the total of all excess expenditures or encumbrances to exceed the
             1768      total unused appropriation within the department at the close of the budget period.
             1769          Section 59. Section 17-36-26 is amended to read:
             1770           17-36-26. Increase in budgetary fund or general fund -- Public hearing.
             1771          (1) Before the governing body may, by resolution, increase a budget appropriation of
             1772      any budgetary fund, increase the budget of the general fund, or make an amendment to a
             1773      budgetary fund or the general fund, the governing body shall hold a public hearing giving all
             1774      interested parties an opportunity to be heard.
             1775          (2) Notice of the public hearing described in Subsection (1) shall be published at least
             1776      five days before the day of the hearing:
             1777          (a) (i) in at least one issue of a newspaper generally circulated in the county or
             1778      noncontiguous municipality, respectively; or
             1779          (ii) if there is not a newspaper generally circulated in the county or noncontiguous
             1780      municipality, the hearing may be published by posting notice in three conspicuous places
             1781      within the county or noncontiguous municipality; and
             1782          (b) on the Utah Public Notice Website created under Section 63F-1-701 .
             1783          Section 60. Section 17-36-30 is amended to read:
             1784           17-36-30. Interfund loans -- Acquisition of issued unmatured bonds.
             1785          The governing body may:
             1786          (1) authorize interfund loans from one fund to another at such interest rates and subject
             1787      to such terms for repayment as it may prescribe; and [may]
             1788          (2) with available cash in any fund, purchase or otherwise acquire for investment,
             1789      issued unmatured bonds of the county or of any county fund or of the noncontiguous
             1790      municipality or any noncontiguous municipality fund, respectively.
             1791          Section 61. Section 17-36-31 is amended to read:
             1792           17-36-31. Tax levy -- Amount.
             1793          (1) (a) Before June 22 of each year[,]:
             1794          (i) the county legislative body shall levy a tax on the taxable real and personal property


             1795      within the county[.]; and
             1796          (ii) the noncontiguous municipality shall levy a tax on the taxable real and personal
             1797      property within the noncontiguous municipality.
             1798          (b) In its computation of the total levy subject to Sections 59-2-908 and 59-2-911 , [it]
             1799      the county or noncontiguous municipality shall determine the requirements for each fund and
             1800      specify the amount of the levy apportioned to each fund.
             1801          (2) The proceeds of the tax apportioned for purposes of the General Fund shall be
             1802      credited in the General Fund.
             1803          (3) The proceeds of the tax apportioned for utility and other special fund purposes shall
             1804      be credited to the appropriate accounts in the utility or other special funds.
             1805          Section 62. Section 17-36-35 is amended to read:
             1806           17-36-35. County officials -- Profit from public funds.
             1807          If the governing body receives evidence that a county or noncontiguous municipality
             1808      official is profiting from public money or uses it for any unauthorized purpose, the matter shall
             1809      be promptly referred to the county attorney or district attorney for appropriate action. If
             1810      convicted for any such offense, the county or noncontiguous municipality official shall
             1811      immediately forfeit his office.
             1812          Section 63. Section 17-36-37 is amended to read:
             1813           17-36-37. Budget officer -- Annual financial statement -- Contents.
             1814          (1) The budget officer of each county and noncontiguous municipality, within 180 days
             1815      after the close of each fiscal period or, for a county that has adopted a fiscal period that is a
             1816      biennial period, within 180 days after both the midpoint and the close of the fiscal period,
             1817      except as provided by Section 17-36-38 , shall prepare and make available to the governing
             1818      body an annual financial report which shall contain:
             1819          (a) a statement of revenues and expenditures and a comparison with the budget of the
             1820      general fund, similar statements of all other funds for which budgets are required, and
             1821      statements of revenues and expenditures or of income and expense, as the case may be, of all
             1822      other operating funds of the county or noncontiguous municipality;
             1823          (b) a balance sheet of each fund and a combined balance sheet of all funds as of:
             1824          (i) for a county that has adopted a fiscal period that is a biennial period, the midpoint
             1825      and the close of the fiscal period; and


             1826          (ii) for each other county and noncontiguous municipality, the close of the fiscal
             1827      period; or
             1828          (c) any other reports the governing body may require, including work performance
             1829      data, tax levies, taxable values, details of bonded indebtedness, and historical facts of interest
             1830      to the governing body and the public.
             1831          (2) Copies of the annual report shall be furnished to the state auditor and made a matter
             1832      of public record in the office of the budget officer.
             1833          Section 64. Section 17-36-38 is amended to read:
             1834           17-36-38. Presentation of annual report by independent auditor.
             1835          The annual report required by Section 17-36-37 may be satisfied by a county or
             1836      noncontiguous municipality by the presentation of the report of the independent auditor on the
             1837      results of operations for the year and financial condition at the midpoint of the fiscal period or
             1838      at the close of the fiscal period if it is prepared in conformity with the uniform system of
             1839      budgeting, accounting, and reporting.
             1840          Section 65. Section 17-36-39 is amended to read:
             1841           17-36-39. Independent audits.
             1842          Independent audits are required for all counties and noncontiguous municipalities as
             1843      provided in Title 51, Chapter 2a, Accounting Reports from Political Subdivisions, Interlocal
             1844      Organizations, and Other Local Entities Act.
             1845          Section 66. Section 17-36-40 is amended to read:
             1846           17-36-40. Notice that audit is complete.
             1847          (1) Within 10 days after the receipt of the audit report furnished by the independent
             1848      auditor, the county auditor shall prepare and publish a notice to the public that the county audit
             1849      or noncontiguous municipality audit is complete:
             1850          (a) at least twice in a newspaper of general circulation within the county or
             1851      noncontiguous municipality, respectively; and
             1852          (b) as required in Section 45-1-101 .
             1853          (2) A copy of the county audit may be inspected at the office of the county auditor.
             1854          Section 67. Section 17-36-41 is amended to read:
             1855           17-36-41. Analysis and evaluation of accounting practices and systems by state
             1856      auditor -- Regional accounting services.


             1857          (1) The state auditor shall analyze and evaluate the accounting practices and systems
             1858      used by the counties and noncontiguous municipalities and provide advice and consultation to
             1859      them in improving and updating their practices and systems.
             1860          (2) Any county or group or association of counties may by agreement pursuant to the
             1861      Interlocal Co-operation Act provide accounting services upon a regional basis for other
             1862      counties or other local governmental units. The state auditor shall evaluate the county or other
             1863      organization's ability to provide such service and shall periodically review the internal controls
             1864      maintained by such a county or organization.
             1865          Section 68. Section 17-36-43 is amended to read:
             1866           17-36-43. Financial administration ordinance -- Purposes.
             1867          (1) (a) On or before December 31, 2014, a county of the second, third, fourth, fifth, or
             1868      sixth class is not subject to the provisions of this section; and
             1869          (b) on or after January 1, 2015, a county of the second, third, fourth, fifth, or sixth class
             1870      is subject to the provisions of this section.
             1871          (2) (a) The county legislative body, after consultation with the county auditor, may
             1872      adopt a financial administration ordinance authorizing the county auditor, county executive,
             1873      county manager, or, in the case of county operated hospitals or mental health districts, an
             1874      appointed administrator, to act as the financial officer for the purpose of approving:
             1875          [(a)] (i) payroll checks, if the checks are prepared in accordance with a salary schedule
             1876      established in a personnel ordinance or resolution; or
             1877          [(b)] (ii) routine expenditures, such as utility bills, payroll-related expenses, supplies,
             1878      materials, and payments on county-approved contracts and capital expenditures which are
             1879      referenced in the budget document and approved by an appropriation resolution adopted for the
             1880      current fiscal year.
             1881          (b) A noncontiguous municipality may adopt a financial administration ordinance
             1882      authorizing the noncontiguous municipality manager or county executive to act as the financial
             1883      officer for the purpose of approving an expenditure described in Subsection (2)(a)(i) or (ii).
             1884          Section 69. Section 17-36-44 is amended to read:
             1885           17-36-44. Financial administration ordinance -- Required provisions.
             1886          The financial administration ordinance, adopted pursuant to Section 17-36-43 or
             1887      17-36-43.1 , as applicable, shall provide:


             1888          (1) a maximum amount over which purchases may not be made without the approval
             1889      of the county executive;
             1890          (2) that the financial officer be bonded for a reasonable amount; and
             1891          (3) any other provisions the county legislative body or noncontiguous municipality
             1892      council, respectively, considers advisable.
             1893          Section 70. Section 17-36-45 is amended to read:
             1894           17-36-45. Internal control structure.
             1895          (1) Each county legislative body and noncontiguous municipality council shall[, with
             1896      the advice and assistance of the county auditor and county treasurer,] implement an internal
             1897      control structure to ensure, on a reasonable basis, that all valid financial transactions of the
             1898      county are identified and recorded accurately and timely. The objectives of the internal control
             1899      structure shall be to ensure:
             1900          (a) the proper authorization of transactions and activities;
             1901          (b) the appropriate segregation of:
             1902          (i) the duty to authorize transactions;
             1903          (ii) the duty to record transactions; and
             1904          (iii) the duty to maintain custody of assets;
             1905          (c) the design and use of adequate documents and records to ensure the proper
             1906      recording of events;
             1907          (d) adequate safeguards over access to and use of assets and records; and
             1908          (e) independent checks on performance and proper valuation of recorded amounts.
             1909          (2) The state auditor shall evaluate procedures implemented to effectuate this section
             1910      and shall provide advice and consultation in approving and updating these procedures.
             1911          Section 71. Section 17-36-46 is amended to read:
             1912           17-36-46. Reserve fund for capital improvements -- Creation -- Purpose --
             1913      Limitation.
             1914          (1) The legislative body of any count, or a noncontiguous municipality council, may
             1915      establish and maintain, by ordinance, a cumulative reserve fund to be accumulated by levy for
             1916      the purpose of financing the purchase of real property and the cost of planning, constructing or
             1917      rehabilitating public buildings or other public works and capital improvements.
             1918          (2) (a) Before a reserve fund under Subsection (1) may be established, the county


             1919      legislative body or noncontiguous municipality council shall designate by ordinance the
             1920      specific purpose for which the fund is established.
             1921          (b) Except as provided in Section 17-36-50 , all funds in a reserve fund under
             1922      Subsection (1) shall be expended for the designated purposes.
             1923          Section 72. Section 17-36-47 is amended to read:
             1924           17-36-47. Reserve fund for capital improvements -- Estimate of amount required
             1925      -- Tax levy -- Accumulation from year to year -- Restriction on use.
             1926          (1) Subject to Subsection (4) the legislative body of a county, or noncontiguous
             1927      municipality council, that has established a reserve fund under Section 17-36-46 may:
             1928          (a) include in the annual budget or estimate of amounts required to meet the public
             1929      expenses of the county for the ensuing year such sum as it considers necessary for the uses and
             1930      purposes of the fund; and
             1931          (b) include those amounts in the annual tax levy of the county or noncontiguous
             1932      municipality.
             1933          (2) Subject to Subsection (4), the money in the fund shall be allowed to accumulate
             1934      from year to year until the county legislative body or noncontiguous municipality council
             1935      determines to spend any money in the fund for the purpose specified.
             1936          (3) Subject to Subsection (4), money in the fund at the end of a fiscal year shall remain
             1937      in the fund as surplus available for future use, and may not be transferred to any other fund or
             1938      used for any other purpose.
             1939          (4) The amount of money in a reserve fund established under Section 17-36-46 may
             1940      not exceed .6% of the taxable value of the county.
             1941          Section 73. Section 17-36-48 is amended to read:
             1942           17-36-48. Reserve fund for capital improvements -- Transfer to fund of
             1943      unencumbered surplus county funds.
             1944          At any time after the creation of a reserve fund under Section 17-36-46 , the county
             1945      legislative body or noncontiguous municipality council may transfer to the fund any
             1946      unencumbered surplus county funds remaining at the end of a fiscal year.
             1947          Section 74. Section 17-36-49 is amended to read:
             1948           17-36-49. Reserve fund for capital improvements -- Investment -- Interest and
             1949      income.


             1950          (1) All money belonging to a reserve fund created under Section 17-36-46 shall be
             1951      invested in such securities as are legal for other funds of the county or noncontiguous
             1952      municipality, respectively.
             1953          (2) The interest and income from the investments shall be a part of the fund.
             1954          Section 75. Section 17-36-50 is amended to read:
             1955           17-36-50. Reserve fund for capital improvements -- Use for projects other than
             1956      originally specified -- Special election.
             1957          (1) The legislative body of any county, or a noncontiguous municipality council, may
             1958      submit the proposition of using funds in a reserve fund established under Section 17-36-46 for
             1959      projects other than originally specified to the electors of the county or noncontiguous
             1960      municipality, respectively, at a special election if the projects are for the purposes set forth in
             1961      Section 17-36-46 .
             1962          (2) If a proposition under Subsection (1) is proposed, the county legislative body or
             1963      noncontiguous municipality council shall fix a time and place for a special election on the
             1964      proposition, to be held as provided by law.
             1965          Section 76. Section 17-36-51 is amended to read:
             1966           17-36-51. Establishment of tax stability and trust fund -- Increase in tax levy.
             1967          (1) (a) Notwithstanding anything to the contrary contained in statute, the legislative
             1968      body of any county, or noncontiguous municipality council, may by ordinance establish and
             1969      maintain a tax stability and trust fund, for the purpose of preserving funds during years with
             1970      favorable tax revenues for use during years with less favorable tax revenues.
             1971          (b) Each fund under Subsection (1)(a) shall be subject to all of the limitations and
             1972      restrictions imposed by this section and Sections 17-36-52 and 17-36-53 .
             1973          (c) The principal of the fund shall consist of all sums transferred to it in accordance
             1974      with Subsection (2) and interest or other income retained in the fund under Subsection
             1975      17-36-52 (2).
             1976          (2) After establishing a tax stability and trust fund as provided in Subsection (1), the
             1977      legislative body or noncontiguous municipality council, in establishing the levy for the property
             1978      tax levied by the county under Section 59-2-908 , may establish the levy at a level not to exceed
             1979      .0001 per dollar of taxable value of taxable property increase per year that will permit the
             1980      county to receive during that fiscal year sums in excess of what may be required to provide for


             1981      the purposes of the county. Any excess sums so received are to be transferred from the General
             1982      Fund of the county into the tax stability and trust fund.
             1983          Section 77. Section 17-36-52 is amended to read:
             1984           17-36-52. Tax stability and trust fund -- Deposit or investment of funds -- Use of
             1985      interest or other income.
             1986          (1) All amounts in the tax stability and trust fund established by a county or
             1987      noncontiguous municipality under Section 17-36-51 may be deposited or invested as provided
             1988      in Section 51-7-11 . These amounts may also be transferred by the county treasurer to the state
             1989      treasurer under Section 51-7-5 for the treasurer's management and control under Title 51,
             1990      Chapter 7, State Money Management Act.
             1991          (2) The interest or other income realized from amounts in the tax stability and trust
             1992      fund shall be returned to the general fund of the county or noncontiguous municipality during
             1993      the fiscal year in which the income or interest is paid to the extent the interest or income is
             1994      required by the county or noncontiguous municipality to provide for its purposes during that
             1995      fiscal year. Any amounts so returned may be used for all purposes as other amounts in such
             1996      general fund. Any interest or income not so returned to the county's or noncontiguous
             1997      municipality's general fund shall be added to the principal of that county's tax stability and trust
             1998      fund.
             1999          Section 78. Section 17-36-53 is amended to read:
             2000           17-36-53. Tax stability and trust fund -- Amount in fund limited -- Disposition of
             2001      excess.
             2002          (1) The total amount in a county's or noncontiguous municipality's tax stability and
             2003      trust fund established under Section 17-36-51 shall be limited to the percentage of the total
             2004      taxable value of property in that county or noncontiguous municipality, respectively, not to
             2005      exceed the limits provided in the following schedule:
             2006      Total Taxable Value Fund Limits
Percentage of
Taxable Value
but not to
exceed:
             2007      Less than $500,000,000 1.6% $5,000,000
             2008      From 500,000,000 to
1,500,000,000

1.0%

7,500,000
             2009      Over 1,500,000,000 .5% 15,000,000
             2010          (2) If any excess occurs in the tax stability and trust fund over the percentage or
             2011      maximum dollar amounts specified in Subsection (1), this excess shall be transferred to the
             2012      general fund of the county or noncontiguous municipality and may be used for all purposes as
             2013      other amounts in the general fund are used.
             2014          (3) If any excess in the fund exists because of a decrease in total taxable value, that
             2015      excess may remain in the fund, but if the excess amount in the fund is decreased below the
             2016      limitations of the fund for any reason, the fund limitations established under Subsection (1)
             2017      apply.
             2018          Section 79. Section 17-36-54 is amended to read:
             2019           17-36-54. Tax stability and trust fund -- Use of principal -- Determination of
             2020      necessity -- Election.
             2021          If the legislative body of a county, or noncontiguous municipal council, that has
             2022      established a tax stability and trust fund under Section 17-36-51 determines that it is necessary
             2023      for purposes of that county or noncontiguous municipality to use any portion of the principal of
             2024      the fund, the county legislative body or noncontiguous municipality shall submit this
             2025      proposition to the electorate of that county or noncontiguous municipality in a special election
             2026      called and held in the manner provided for in Title 11, Chapter 14, Local Government Bonding
             2027      Act, for the holding of bond elections. If the proposition is approved at this special election by
             2028      a majority of the qualified electors of the county or noncontiguous municipality voting at the
             2029      election, then that portion of the principal of the fund covered by the proposition may be
             2030      transferred to the county's or noncontiguous municipality's general fund for use for purposes of
             2031      that county or noncontiguous municipality.
             2032          Section 80. Section 17B-1-502 is amended to read:
             2033           17B-1-502. Withdrawal of area from local district -- Automatic withdrawal in
             2034      certain circumstances.
             2035          (1) (a) An area within the boundaries of a local district may be withdrawn from the
             2036      local district only as provided in this part.
             2037          (b) Except as provided in Subsections (2) and (3), the inclusion of an area of a local
             2038      district within a municipality because of a municipal incorporation under Title 10, Chapter 2,
             2039      Part 1, Incorporation, or a municipal annexation or boundary adjustment under Title 10,


             2040      Chapter 2, Part 4, Annexation, does not affect the requirements under this part for the process
             2041      of withdrawing that area from the local district.
             2042          (2) (a) An area within the boundaries of a local district is automatically withdrawn
             2043      from the local district by the annexation of the area to a municipality or the adding of the area
             2044      to a municipality by boundary adjustment under Title 10, Chapter 2, Part 4, Annexation, if:
             2045          (i) the local district provides:
             2046          (A) fire protection, paramedic, and emergency services; or
             2047          (B) law enforcement service;
             2048          (ii) an election for the creation of the local district was not required because of
             2049      Subsection 17B-1-214 (3)(d); and
             2050          (iii) before annexation or boundary adjustment, the boundaries of the local district do
             2051      not include any of the annexing municipality.
             2052          (b) The effective date of a withdrawal under this Subsection (2) is governed by
             2053      Subsection 17B-1-512 (2)(b).
             2054          (3) (a) An area within the boundaries of a local district located in a county of the first
             2055      class is automatically withdrawn from the local district by the incorporation of a municipality,
             2056      other than the incorporation of a noncontiguous municipality as defined in Section 10-3c-102 ,
             2057      whose boundaries include the area if:
             2058          (i) the local district provides:
             2059          (A) fire protection, paramedic, and emergency services; or
             2060          (B) law enforcement service;
             2061          (ii) an election for the creation of the local district was not required because of
             2062      Subsection 17B-1-214 (3)(d); and
             2063          (iii) the legislative body of the newly incorporated municipality:
             2064          (A) adopts a resolution no later than 180 days after the effective date of incorporation
             2065      approving the withdrawal that includes the legal description of the area to be withdrawn; and
             2066          (B) delivers a copy of the resolution to the board of trustees of the local district.
             2067          (b) The effective date of a withdrawal under this Subsection (3) is governed by
             2068      Subsection 17B-1-512 (2)(a).
             2069          (c) Section 17B-1-505 shall govern the withdrawal of an area within a noncontiguous
             2070      municipality, as defined in Section 10-3c-102 , in a county of the first class if:


             2071          (i) the local district from which the area is withdrawn provides:
             2072          (A) fire protection, paramedic, and emergency services; or
             2073          (B) law enforcement services; or
             2074          (ii) an election for the creation of the local district was not required under Subsection
             2075      17B-1-214 (3)(d).
             2076          Section 81. Section 20A-9-202 is amended to read:
             2077           20A-9-202. Declarations of candidacy for regular general elections --
             2078      Requirements for candidates.
             2079          (1) (a) Each person seeking to become a candidate for elective office for any county
             2080      office that is to be filled at the next regular general election shall:
             2081          (i) file a declaration of candidacy in person with the county clerk on or after the second
             2082      Friday in March and before 5 p.m. on the third Thursday in March before the next regular
             2083      general election; and
             2084          (ii) pay the filing fee.
             2085          (b) Each person intending to become a candidate for any legislative office or
             2086      multicounty office that is to be filled at the next regular general election shall:
             2087          (i) file a declaration of candidacy in person with either the lieutenant governor or the
             2088      county clerk in the candidate's county of residence on or after the second Friday in March and
             2089      before 5 p.m. on the third Thursday in March before the next regular general election; and
             2090          (ii) pay the filing fee.
             2091          (c) (i) Each county clerk who receives a declaration of candidacy from a candidate for
             2092      multicounty office shall transmit the filing fee and a copy of the candidate's declaration of
             2093      candidacy to the lieutenant governor within one working day after it is filed.
             2094          (ii) Each day during the filing period, each county clerk shall notify the lieutenant
             2095      governor electronically or by telephone of legislative candidates who have filed in their office.
             2096          (d) Each person seeking to become a candidate for elective office for any federal office
             2097      or constitutional office that is to be filled at the next regular general election shall:
             2098          (i) file a declaration of candidacy in person with the lieutenant governor on or after the
             2099      second Friday in March and before 5 p.m. on the third Thursday in March before the next
             2100      regular general election; and
             2101          (ii) pay the filing fee.


             2102          (e) Each person seeking the office of lieutenant governor, the office of district attorney,
             2103      or the office of president or vice president of the United States shall comply with the specific
             2104      declaration of candidacy requirements established by this section.
             2105          (2) (a) Each person intending to become a candidate for the office of district attorney
             2106      within a multicounty prosecution district that is to be filled at the next regular general election
             2107      shall:
             2108          (i) file a declaration of candidacy with the clerk designated in the interlocal agreement
             2109      creating the prosecution district on or after the second Friday in March and before 5 p.m. on the
             2110      third Thursday in March before the next regular general election; and
             2111          (ii) pay the filing fee.
             2112          (b) The designated clerk shall provide to the county clerk of each county in the
             2113      prosecution district a certified copy of each declaration of candidacy filed for the office of
             2114      district attorney.
             2115          (3) (a) Within five working days of nomination, each lieutenant governor candidate
             2116      shall:
             2117          (i) file a declaration of candidacy with the lieutenant governor; and
             2118          (ii) pay the filing fee.
             2119          (b) (i) Any candidate for lieutenant governor who fails to file within five working days
             2120      is disqualified.
             2121          (ii) If a lieutenant governor is disqualified, another candidate shall be nominated to
             2122      replace the disqualified candidate.
             2123          (4) Each registered political party shall:
             2124          (a) certify the names of its candidates for president and vice president of the United
             2125      States to the lieutenant governor no later than August 31; or
             2126          (b) provide written authorization for the lieutenant governor to accept the certification
             2127      of candidates for president and vice president of the United States from the national office of
             2128      the registered political party.
             2129          (5) (a) A declaration of candidacy filed under this section is valid unless a written
             2130      objection is filed with the clerk or lieutenant governor within five days after the last day for
             2131      filing.
             2132          (b) If an objection is made, the clerk or lieutenant governor shall:


             2133          (i) mail or personally deliver notice of the objection to the affected candidate
             2134      immediately; and
             2135          (ii) decide any objection within 48 hours after it is filed.
             2136          (c) If the clerk or lieutenant governor sustains the objection, the candidate may cure the
             2137      problem by amending the declaration or petition within three days after the objection is
             2138      sustained or by filing a new declaration within three days after the objection is sustained.
             2139          (d) (i) The clerk's or lieutenant governor's decision upon objections to form is final.
             2140          (ii) The clerk's or lieutenant governor's decision upon substantive matters is reviewable
             2141      by a district court if prompt application is made to the court.
             2142          (iii) The decision of the district court is final unless the Supreme Court, in the exercise
             2143      of its discretion, agrees to review the lower court decision.
             2144          (6) Any person who filed a declaration of candidacy may withdraw as a candidate by
             2145      filing a written affidavit with the clerk.
             2146          (7) Except as provided in Subsection 20A-9-201 (4)(b), notwithstanding a requirement
             2147      in this section to file a declaration of candidacy in person, a person may designate an agent to
             2148      file the form described in Subsection 20A-9-201 (4) in person with the filing officer if:
             2149          (a) the person is located outside the state during the filing period because:
             2150          (i) of employment with the state or the United States; or
             2151          (ii) the person is a member of:
             2152          (A) the active or reserve components of the Army, Navy, Air Force, Marine Corps, or
             2153      Coast Guard of the United States who is on active duty;
             2154          (B) the Merchant Marine, the commissioned corps of the Public Health Service, or the
             2155      commissioned corps of the National Oceanic and Atmospheric Administration of the United
             2156      States; or
             2157          (C) the National Guard on activated status;
             2158          (b) the person communicates with the filing officer using an electronic device that
             2159      allows the person and filing officer to see and hear each other; and
             2160          (c) the person provides the filing officer with an email address to which the filing
             2161      officer may send the copies described in Subsection 20A-9-201 (3).
             2162          (8) (a) A candidate for the initial municipal council of a noncontiguous municipality at
             2163      the time of election to incorporate the noncontiguous municipality as described in Section


             2164      10-2-138 , if the election is held at a regular general election, shall:
             2165          (i) meet the candidacy requirements of Section 20A-9-203 and any other candidacy
             2166      requirement established by law; and
             2167          (ii) comply with the provisions of this section except as otherwise provided in Section
             2168      10-2-138 .
             2169          (b) A candidate for a noncontiguous municipal council who is a candidate after the
             2170      election of the initial municipal council and incorporation of the noncontiguous municipality
             2171      shall comply with the provisions of Section 20A-9-203 .
             2172          Section 82. Section 20A-9-404 is amended to read:
             2173           20A-9-404. Municipal primary elections.
             2174          (1) (a) Except as otherwise provided in this section, candidates for municipal office in
             2175      all municipalities shall be nominated at a municipal primary election.
             2176          (b) Municipal primary elections shall be held:
             2177          (i) consistent with Section 20A-1-201.5 , on the second Tuesday following the first
             2178      Monday in the August before the regular municipal election; and
             2179          (ii) whenever possible, at the same polling places as the regular municipal election.
             2180          (2) If the number of candidates for a particular municipal office does not exceed twice
             2181      the number of persons needed to fill that office, a primary election for that office may not be
             2182      held and the candidates are considered nominated.
             2183          (3) (a) For purposes of this Subsection (3), "convention" means an organized assembly
             2184      of voters or delegates.
             2185          (b) (i) By ordinance adopted before the May 1 that falls before a regular municipal
             2186      election, any third, fourth, or fifth class city or town may exempt itself from a primary election
             2187      by providing that the nomination of candidates for municipal office to be voted upon at a
             2188      municipal election be nominated by a political party convention or committee.
             2189          (ii) Any primary election exemption ordinance adopted under the authority of this
             2190      subsection remains in effect until repealed by ordinance.
             2191          (c) (i) A convention or committee may not nominate more than one group of
             2192      candidates or have placed on the ballot more than one group of candidates for the municipal
             2193      offices to be voted upon at the municipal election.
             2194          (ii) A convention or committee may nominate a person who has been nominated by a


             2195      different convention or committee.
             2196          (iii) A political party may not have more than one group of candidates placed upon the
             2197      ballot and may not group the same candidates on different tickets by the same party under a
             2198      different name or emblem.
             2199          (d) (i) The convention or committee shall prepare a certificate of nomination for each
             2200      person nominated.
             2201          (ii) The certificate of nomination shall:
             2202          (A) contain the name of the office for which each person is nominated, the name, post
             2203      office address, and, if in a city, the street number of residence and place of business, if any, of
             2204      each person nominated;
             2205          (B) designate in not more than five words the political party that the convention or
             2206      committee represents;
             2207          (C) contain a copy of the resolution passed at the convention that authorized the
             2208      committee to make the nomination;
             2209          (D) contain a statement certifying that the name of the candidate nominated by the
             2210      political party will not appear on the ballot as a candidate for any other political party;
             2211          (E) be signed by the presiding officer and secretary of the convention or committee;
             2212      and
             2213          (F) contain a statement identifying the residence and post office address of the
             2214      presiding officer and secretary and certifying that the presiding officer and secretary were
             2215      officers of the convention or committee and that the certificates are true to the best of their
             2216      knowledge and belief.
             2217          (iii) Certificates of nomination shall be filed with the clerk not later than 80 days
             2218      before the municipal general election.
             2219          (e) A committee appointed at a convention, if authorized by an enabling resolution,
             2220      may also make nominations or fill vacancies in nominations made at a convention.
             2221          (f) The election ballot shall substantially comply with the form prescribed in Title 20A,
             2222      Chapter 6, Part 4, Ballot Form Requirements for Municipal Elections, but the party name shall
             2223      be included with the candidate's name.
             2224          (4) (a) Any third, fourth, or fifth class city may adopt an ordinance before the May 1
             2225      that falls before the regular municipal election that:


             2226          (i) exempts the city from the other methods of nominating candidates to municipal
             2227      office provided in this section; and
             2228          (ii) provides for a partisan primary election method of nominating candidates as
             2229      provided in this Subsection (4).
             2230          (b) (i) Any party that was a registered political party at the last regular general election
             2231      or regular municipal election is a municipal political party under this section.
             2232          (ii) Any political party may qualify as a municipal political party by presenting a
             2233      petition to the city recorder that:
             2234          (A) is signed, with a holographic signature, by registered voters within the municipality
             2235      equal to at least 20% of the number of votes cast for all candidates for mayor in the last
             2236      municipal election at which a mayor was elected;
             2237          (B) is filed with the city recorder by May 31 of any odd-numbered year;
             2238          (C) is substantially similar to the form of the signature sheets described in Section
             2239      20A-7-303 ; and
             2240          (D) contains the name of the municipal political party using not more than five words.
             2241          (c) (i) If the number of candidates for a particular office does not exceed twice the
             2242      number of offices to be filled at the regular municipal election, no partisan primary election for
             2243      that office shall be held and the candidates are considered to be nominated.
             2244          (ii) If the number of candidates for a particular office exceeds twice the number of
             2245      offices to be filled at the regular municipal election, those candidates for municipal office shall
             2246      be nominated at a partisan primary election.
             2247          (d) The clerk shall ensure that:
             2248          (i) the partisan municipal primary ballot is similar to the ballot forms required by
             2249      Sections 20A-6-401 and 20A-6-401.1 ;
             2250          (ii) the candidates for each municipal political party are listed in one or more columns
             2251      under their party name and emblem;
             2252          (iii) the names of candidates of all parties are printed on the same ballot, but under
             2253      their party designation;
             2254          (iv) every ballot is folded and perforated so as to separate the candidates of one party
             2255      from those of the other parties and so as to enable the elector to separate the part of the ballot
             2256      containing the names of the party of his choice from the remainder of the ballot; and


             2257          (v) the side edges of all ballots are perforated so that the outside sections of the ballots,
             2258      when detached, are similar in appearance to inside sections when detached.
             2259          (e) After marking a municipal primary ballot, the voter shall:
             2260          (i) detach the part of the ballot containing the names of the candidates of the party he
             2261      has voted from the rest of the ballot;
             2262          (ii) fold the detached part so that its face is concealed and deposit it in the ballot box;
             2263      and
             2264          (iii) fold the remainder of the ballot containing the names of the candidates of the
             2265      parties for whom the elector did not vote and deposit it in the blank ballot box.
             2266          (f) Immediately after the canvass, the election judges shall, without examination,
             2267      destroy the tickets deposited in the blank ballot box.
             2268          (5) (a) In an election described in Section 10-2-138 to incorporate a noncontiguous
             2269      municipality and elect the initial members of the municipal council, a municipal primary may
             2270      not be held and a candidate is not required to be nominated at a municipal primary.
             2271          (b) After incorporation, a primary for the municipal council candidates in a
             2272      noncontiguous municipality, as defined in Section 10-3c-102 , shall be held in accordance with
             2273      this section.




Legislative Review Note
    as of 2-18-14 1:44 PM


Office of Legislative Research and General Counsel


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