(17)(a) The state auditor shall exercise the authority and comply with the duties established in
Subsection (7)(b) if, upon investigation of a special service district, as defined in Section 17D-1-102,
whose revenue sources are limited to assessed fees and rates, the state auditor establishes a finding of
well-founded concern that the special service district has engaged in a pattern and practice of:
(i) improper use of public funds for private purposes;
(ii) extraordinary financial impropriety involving an amount equal to or more than $1 million in
public funds;
(iii) causing irreparable harm to individuals or to the public trust;
(iv) defaulting on public bonds;
(v) affirmative acts to conceal the special service district's financial records from the review of the
state auditor;
(vi) documented threats of coercion of private parties; and
(vii) failure to deal in good faith with the state auditor's requests for reliable information.
(b) If the state auditor establishes a finding described in Subsection (17)(a), the state auditor shall:
(i) suspend the special service district's authority to:
(A) expend or transfer special service district funds; and
(B) operate under the control and supervision of the existing special service district management
and, as defined in Section 17D-1-102, governing body;
(ii) take custody of the special service's public records and assets; and
(iii) in coordination with the state treasurer and municipalities and counties contiguous to the
special service district, appoint a receiver for the special service district.
(c) The receiver appointed under Subsection (17)(b) shall:
(i) manage the special service district's assets;
(ii) deliver special service district services;
(iii) resolve, including through litigation if necessary, claims against and by the special service
district;
(iv) develop a viable long-term plan to resolve financial improprieties, if any, of the special service
district; and
(v) select a responsible local government to manage the special service district for a minimum of
three years.
(d) A local government selected under Subsection (17)(c)(v) has the powers granted in, and is
subject to, the provisions of Title 17D, Chapter 1, Special Service District Act.
1993
Section 32.
Section
78B-2-216
is amended to read:
1994
78B-2-216. Adverse possession of certain real property.
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