1     
INCORPORATION FILING AMENDMENTS

2     
2017 GENERAL SESSION

3     
STATE OF UTAH

4     
Chief Sponsor: John R. Westwood

5     
Senate Sponsor: Don L. Ipson

6     

7     LONG TITLE
8     General Description:
9          This bill relates to the process by which a town is incorporated.
10     Highlighted Provisions:
11          This bill:
12          ▸     amends definitions;
13          ▸     reorders the requirements that individuals must meet to file a town incorporation
14     petition;
15          ▸     requires the sponsors of a town incorporation petition to:
16               •     file an application with the lieutenant governor; and
17               •     conduct a public hearing before collecting signatures for the petition;
18          ▸     requires that at least 50% of the voting-eligible population within a proposed town
19     be registered voters;
20          ▸     expands a provision to allow certain property owners to remove property from a
21     proposed town incorporation;
22          ▸     creates standards and a process by which the lieutenant governor may reject a town
23     incorporation petition;
24          ▸     modifies requirements related to the selection of a feasibility consultant;
25          ▸     provides repeal dates for certain provisions that this bill makes obsolete; and
26          ▸     makes technical and conforming changes.
27     Money Appropriated in this Bill:
28          None
29     Other Special Clauses:

30          None
31     Utah Code Sections Affected:
32     AMENDS:
33          10-2-403, as last amended by Laws of Utah 2015, Chapter 352
34          10-2a-106, as enacted by Laws of Utah 2015, Chapter 157 and further amended by
35     Revisor Instructions, Laws of Utah 2015, Chapters 157 and last amended by
36     Coordination Clause, Laws of Utah 2015, Chapter 352
37          10-2a-302, as last amended by Laws of Utah 2015, Chapter 157 and renumbered and
38     amended by Laws of Utah 2015, Chapter 352
39          10-2a-303, as last amended by Laws of Utah 2015, Chapter 157 and renumbered and
40     amended by Laws of Utah 2015, Chapter 352
41          10-2a-304, as last amended by Laws of Utah 2015, Chapters 96, 111, 157 and
42     renumbered and amended by Laws of Utah 2015, Chapter 352 and last amended by
43     Coordination Clause, Laws of Utah 2015, Chapter 352
44          20A-11-101, as last amended by Laws of Utah 2016, Chapter 95
45          63I-2-210, as last amended by Laws of Utah 2016, Chapter 14
46          63I-2-220, as last amended by Laws of Utah 2016, Chapters 28 and 348
47     ENACTS:
48          10-2a-302.5, Utah Code Annotated 1953
49     

50     Be it enacted by the Legislature of the state of Utah:
51          Section 1. Section 10-2-403 is amended to read:
52          10-2-403. Annexation petition -- Requirements -- Notice required before filing.
53          (1) Except as provided in Section 10-2-418, the process to annex an unincorporated
54     area to a municipality is initiated by a petition as provided in this section.
55          (2) (a) (i) Before filing a petition under Subsection (1) with respect to the proposed
56     annexation of an area located in a county of the first class, the person or persons intending to
57     file a petition shall:

58          (A) file with the city recorder or town clerk of the proposed annexing municipality a
59     notice of intent to file a petition; and
60          (B) send a copy of the notice of intent to each affected entity.
61          (ii) Each notice of intent under Subsection (2)(a)(i) shall include an accurate map of the
62     area that is proposed to be annexed.
63          (b) (i) Subject to Subsection (2)(b)(ii), the county in which the area proposed to be
64     annexed is located shall:
65          (A) mail the notice described in Subsection (2)(b)(iii) to:
66          (I) each owner of real property located within the area proposed to be annexed; and
67          (II) each owner of real property located within 300 feet of the area proposed to be
68     annexed; and
69          (B) send to the proposed annexing municipality a copy of the notice and a certificate
70     indicating that the notice has been mailed as required under Subsection (2)(b)(i)(A).
71          (ii) The county shall mail the notice required under Subsection (2)(b)(i)(A) within 20
72     days after receiving from the person or persons who filed the notice of intent:
73          (A) a written request to mail the required notice; and
74          (B) payment of an amount equal to the county's expected actual cost of mailing the
75     notice.
76          (iii) Each notice required under Subsection (2)(b)(i)(A) shall:
77          (A) be in writing;
78          (B) state, in bold and conspicuous terms, substantially the following:
79          "Attention: Your property may be affected by a proposed annexation.
80          Records show that you own property within an area that is intended to be included in a
81     proposed annexation to (state the name of the proposed annexing municipality) or that is within
82     300 feet of that area. If your property is within the area proposed for annexation, you may be
83     asked to sign a petition supporting the annexation. You may choose whether or not to sign the
84     petition. By signing the petition, you indicate your support of the proposed annexation. If you
85     sign the petition but later change your mind about supporting the annexation, you may

86     withdraw your signature by submitting a signed, written withdrawal with the recorder or clerk
87     of (state the name of the proposed annexing municipality) within 30 days after (state the name
88     of the proposed annexing municipality) receives notice that the petition has been certified.
89          There will be no public election on the proposed annexation because Utah law does not
90     provide for an annexation to be approved by voters at a public election. Signing or not signing
91     the annexation petition is the method under Utah law for the owners of property within the area
92     proposed for annexation to demonstrate their support of or opposition to the proposed
93     annexation.
94          You may obtain more information on the proposed annexation by contacting (state the
95     name, mailing address, telephone number, and email address of the official or employee of the
96     proposed annexing municipality designated to respond to questions about the proposed
97     annexation), (state the name, mailing address, telephone number, and email address of the
98     county official or employee designated to respond to questions about the proposed annexation),
99     or (state the name, mailing address, telephone number, and email address of the person who
100     filed the notice of intent under Subsection (2)(a)(i)(A), or, if more than one person filed the
101     notice of intent, one of those persons). Once filed, the annexation petition will be available for
102     inspection and copying at the office of (state the name of the proposed annexing municipality)
103     located at (state the address of the municipal offices of the proposed annexing municipality).";
104     and
105          (C) be accompanied by an accurate map identifying the area proposed for annexation.
106          (iv) A county may not mail with the notice required under Subsection (2)(b)(i)(A) any
107     other information or materials related or unrelated to the proposed annexation.
108          (c) (i) After receiving the certificate from the county as provided in Subsection
109     (2)(b)(i)(B), the proposed annexing municipality shall, upon request from the person or persons
110     who filed the notice of intent under Subsection (2)(a)(i)(A), provide an annexation petition for
111     the annexation proposed in the notice of intent.
112          (ii) An annexation petition provided by the proposed annexing municipality may be
113     duplicated for circulation for signatures.

114          (3) Each petition under Subsection (1) shall:
115          (a) be filed with the city recorder or town clerk, as the case may be, of the proposed
116     annexing municipality;
117          (b) contain the signatures of, if all the real property within the area proposed for
118     annexation is owned by a public entity other than the federal government, the owners of all the
119     publicly owned real property, or the owners of private real property that:
120          (i) is located within the area proposed for annexation;
121          (ii) (A) subject to Subsection (3)(b)(ii)(C), covers a majority of the private land area
122     within the area proposed for annexation;
123          (B) covers 100% of rural real property as that term is defined in Section 17B-2a-1107
124     within the area proposed for annexation; and
125          (C) covers 100% of the private land area within the area proposed for annexation, if the
126     area is within an agriculture protection area created under Title 17, Chapter 41, Agriculture and
127     Industrial Protection Areas, or a migratory bird production area created under Title 23, Chapter
128     28, Migratory Bird Production Area; and
129          (iii) is equal in value to at least 1/3 of the value of all private real property within the
130     area proposed for annexation;
131          (c) be accompanied by:
132          (i) an accurate and recordable map, prepared by a licensed surveyor, of the area
133     proposed for annexation; and
134          (ii) a copy of the notice sent to affected entities as required under Subsection
135     (2)(a)(i)(B) and a list of the affected entities to which notice was sent;
136          (d) if the area proposed to be annexed is located in a county of the first class, contain
137     on each signature page a notice in bold and conspicuous terms that states substantially the
138     following:
139          "Notice:
140          • There will be no public election on the annexation proposed by this petition because
141     Utah law does not provide for an annexation to be approved by voters at a public election.

142          • If you sign this petition and later decide that you do not support the petition, you may
143     withdraw your signature by submitting a signed, written withdrawal with the recorder or clerk
144     of (state the name of the proposed annexing municipality). If you choose to withdraw your
145     signature, you shall do so no later than 30 days after (state the name of the proposed annexing
146     municipality) receives notice that the petition has been certified.";
147          (e) if the petition proposes the annexation of an area located in a county that is not the
148     county in which the proposed annexing municipality is located, be accompanied by a copy of
149     the resolution, required under Subsection 10-2-402(6), of the legislative body of the county in
150     which the area is located; and
151          (f) designate up to five of the signers of the petition as sponsors, one of whom shall be
152     designated as the contact sponsor, and indicate the mailing address of each sponsor.
153          (4) A petition under Subsection (1) may not propose the annexation of all or part of an
154     area proposed for annexation to a municipality in a previously filed petition that has not been
155     denied, rejected, or granted.
156          (5) A petition under Subsection (1) proposing the annexation of an area located in a
157     county of the first class may not propose the annexation of an area that includes some or all of
158     an area proposed to be incorporated in a request for a feasibility study under Section 10-2a-202
159     or a petition under Section 10-2a-302 or 10-2a-302.5 if:
160          (a) the request or petition was filed before the filing of the annexation petition; and
161          (b) the request, a petition under Section 10-2a-208 based on that request, or a petition
162     under Section 10-2a-302 or 10-2a-302.5 is still pending on the date the annexation petition is
163     filed.
164          (6) If practicable and feasible, the boundaries of an area proposed for annexation shall
165     be drawn:
166          (a) along the boundaries of existing local districts and special service districts for
167     sewer, water, and other services, along the boundaries of school districts whose boundaries
168     follow city boundaries or school districts adjacent to school districts whose boundaries follow
169     city boundaries, and along the boundaries of other taxing entities;

170          (b) to eliminate islands and peninsulas of territory that is not receiving municipal-type
171     services;
172          (c) to facilitate the consolidation of overlapping functions of local government;
173          (d) to promote the efficient delivery of services; and
174          (e) to encourage the equitable distribution of community resources and obligations.
175          (7) On the date of filing, the petition sponsors shall deliver or mail a copy of the
176     petition to the clerk of the county in which the area proposed for annexation is located.
177          (8) A property owner who signs an annexation petition proposing to annex an area
178     located in a county of the first class may withdraw the owner's signature by filing a written
179     withdrawal, signed by the property owner, with the city recorder or town clerk no later than 30
180     days after the municipal legislative body's receipt of the notice of certification under
181     Subsection 10-2-405(2)(c)(i).
182          Section 2. Section 10-2a-106 is amended to read:
183          10-2a-106. Feasibility study or petition to incorporate filed before May 12, 2015.
184          (1) If a request for a feasibility study to incorporate a city is filed under Section
185     10-2a-202 before May 12, 2015, the request and a subsequent feasibility study, petition, public
186     hearing, election, and any other city incorporation action applicable to that request shall be
187     filed with and be acted upon, held, processed, or paid for by the county legislative body or
188     county clerk, as applicable, as designated, directed, or authorized before Laws of Utah 2015,
189     Chapter 157, takes effect.
190          (2) If a petition to incorporate a town is filed under Section 10-2a-302 or 10-2a-302.5
191     before May 12, 2015, the petition and a subsequent feasibility study, petition, public hearing,
192     election, and any other town incorporation action applicable to that petition to incorporate shall
193     be filed with and be acted upon, held, processed, or paid for by the county legislative body or
194     county clerk, as applicable, as designated, directed, or authorized before Laws of Utah 2015,
195     Chapter 157, takes effect.
196          Section 3. Section 10-2a-302 is amended to read:
197          10-2a-302. Incorporation of a town -- Petition.

198          (1) As used in this section:
199          (a) "Assessed value," with respect to agricultural land, means the value at which the
200     land would be assessed without regard to a valuation for agricultural use under Section
201     59-2-503.
202          (b) "Feasibility consultant" means a person or firm:
203          (i) with expertise in the processes and economics of local government; and
204          (ii) who is independent of and not affiliated with a county or sponsor of a petition to
205     incorporate.
206          (c) "Financial feasibility study" means a study described in Subsection (7).
207          (d) "Municipal service" means a publicly provided service that is not provided on a
208     countywide basis.
209          (e) "Nonurban" means having a residential density of less than one unit per acre.
210          (2) (a) This section applies to individuals who seek to initiate the process of
211     incorporating a town before May 9, 2017.
212          (b) (i) A contiguous area of a county not within a municipality, with a population of at
213     least 100 but less than 1,000, may incorporate as a town as provided in this section.
214          (ii) An area within a county of the first class is not contiguous for purposes of
215     Subsection (2)[(a)](b)(i) if:
216          (A) the area includes a strip of land that connects geographically separate areas; and
217          (B) the distance between the geographically separate areas is greater than the average
218     width of the strip of land connecting the geographically separate areas.
219          [(b)] (c) The population figure under Subsection (2)[(a)](b) shall be determined:
220          (i) as of the date the incorporation petition is filed; and
221          (ii) by the Utah Population Estimates Committee within 20 days after the county clerk's
222     certification under Subsection (6) of a petition filed under Subsection (4).
223          (3) (a) [The] Individuals may initiate the process to incorporate an area as a town [is
224     initiated by filing a] by circulating a petition to incorporate the area as a town.
225          (b) The individuals must file the petition with the Office of the Lieutenant Governor no

226     later than January 2, 2018 for the petition to be valid.
227          [(b)] (c) A petition under Subsection (3)[(a)](b) shall:
228          (i) be signed by:
229          (A) the owners of private real property that:
230          (I) is located within the area proposed to be incorporated; and
231          (II) is equal in assessed value to more than 1/5 of the assessed value of all private real
232     property within the area; and
233          (B) 1/5 of all registered voters within the area proposed to be incorporated as a town,
234     according to the official voter registration list maintained by the county on the date the petition
235     is filed;
236          (ii) designate as sponsors at least five of the property owners who have signed the
237     petition, one of whom shall be designated as the contact sponsor, with the mailing address of
238     each owner signing as a sponsor;
239          (iii) be accompanied by and circulated with an accurate map or plat, prepared by a
240     licensed surveyor, showing a legal description of the boundary of the proposed town; and
241          (iv) substantially comply with and be circulated in the following form:
242          PETITION FOR INCORPORATION OF (insert the proposed name of the proposed
243     town)
244          To the Honorable Lieutenant Governor:
245          We, the undersigned owners of real property and registered voters within the area
246     described in this petition, respectfully petition the lieutenant governor to direct the county
247     legislative body to submit to the registered voters residing within the area described in this
248     petition, at the next regular general election, the question of whether the area should
249     incorporate as a town. Each of the undersigned affirms that each has personally signed this
250     petition and is an owner of real property or a registered voter residing within the described area,
251     and that the current residence address of each is correctly written after the signer's name. The
252     area proposed to be incorporated as a town is described as follows: (insert an accurate
253     description of the area proposed to be incorporated).

254          [(c)] (d) A petition under this Subsection (3) may not describe an area that includes
255     some or all of an area proposed for annexation in an annexation petition under Section
256     10-2-403 that:
257          (i) was filed before the filing of the petition; and
258          (ii) is still pending on the date the petition is filed.
259          [(d)] (e) A petition may not be filed under this section if the private real property
260     owned by the petition sponsors, designated under Subsection (3)[(b)](c)(ii), cumulatively
261     exceeds 40% of the total private land area within the area proposed to be incorporated as a
262     town.
263          [(e)] (f) A signer of a petition under this Subsection (3) may withdraw or, after
264     withdrawn, reinstate the signer's signature on the petition:
265          (i) at any time until the lieutenant governor certifies the petition under Subsection (5);
266     and
267          (ii) by filing a signed, written withdrawal or reinstatement with the lieutenant governor.
268          (4) (a) If a petition is filed under Subsection (3)[(a)](b) proposing to incorporate as a
269     town an area located within a county of the first class, the lieutenant governor shall deliver
270     written notice of the proposed incorporation:
271          (i) to each owner of private real property owning more than 1% of the assessed value
272     of all private real property within the area proposed to be incorporated as a town; and
273          (ii) within seven calendar days after the date on which the petition is filed.
274          (b) A private real property owner described in Subsection (4)(a)(i) may exclude all or
275     part of the owner's property from the area proposed to be incorporated as a town by filing a
276     notice of exclusion:
277          (i) with the lieutenant governor; and
278          (ii) within 10 calendar days after receiving the clerk's notice under Subsection (4)(a).
279          (c) The lieutenant governor shall exclude from the area proposed to be incorporated as
280     a town the property identified in the notice of exclusion under Subsection (4)(b) if:
281          (i) the property:

282          (A) is nonurban; and
283          (B) does not and will not require a municipal service; and
284          (ii) exclusion will not leave an unincorporated island within the proposed town.
285          (d) If the lieutenant governor excludes property from the area proposed to be
286     incorporated as a town, the lieutenant governor shall send written notice of the exclusion to the
287     contact sponsor within five days after the exclusion.
288          (5) No later than 20 days after the filing of a petition under Subsection (3), the
289     lieutenant governor shall:
290          (a) with the assistance of other county officers of the county in which the incorporation
291     is proposed from whom the lieutenant governor requests assistance, determine whether the
292     petition complies with the requirements of Subsection (3); and
293          (b) (i) if the lieutenant governor determines that the petition complies with those
294     requirements:
295          (A) certify the petition; and
296          (B) mail or deliver written notification of the certification to:
297          (I) the contact sponsor; and
298          (II) the Utah Population Estimates Committee; or
299          (ii) if the lieutenant governor determines that the petition fails to comply with any of
300     those requirements, reject the petition and notify the contact sponsor in writing of the rejection
301     and the reasons for the rejection.
302          (6) (a) (i) A petition that is rejected under Subsection (5)(b)(ii) may be amended to
303     correct a deficiency for which it was rejected and then refiled with the lieutenant governor.
304          (ii) A valid signature on a petition filed under Subsection (3)[(a)](b) may be used
305     toward fulfilling the signature requirement of Subsection (3)[(b)](c) for the same petition that
306     is amended under Subsection (6)(a)(i) and then refiled with the lieutenant governor.
307          (b) If a petition is amended and refiled under Subsection (6)(a)(i) after having been
308     rejected by the lieutenant governor under Subsection (5)(b)(ii):
309          (i) the amended petition shall be considered as a newly filed petition; and

310          (ii) the amended petition's processing priority is determined by the date on which it is
311     refiled.
312          (7) (a) (i) If a petition is filed under Subsection (4) and certified under Subsection [(6)]
313     (5), the lieutenant governor shall commission and pay for a financial feasibility study.
314          (ii) The feasibility consultant shall be chosen:
315          (A) (I) by the contact sponsor of the incorporation petition, as described in Subsection
316     (3)[(b)](c)(ii), with the consent of the lieutenant governor; or
317          (II) by the lieutenant governor if the contact sponsor states, in writing, that the sponsor
318     defers selection of the feasibility consultant to the lieutenant governor; and
319          (B) in accordance with applicable county procurement procedure.
320          (iii) The lieutenant governor shall require the feasibility consultant to complete the
321     financial feasibility study and submit written results of the study to the lieutenant governor no
322     later than 30 days after the feasibility consultant is engaged to conduct the financial feasibility
323     study.
324          (b) The financial feasibility study shall consider the:
325          (i) population and population density within the area proposed for incorporation and
326     the surrounding area;
327          (ii) current and five-year projections of demographics and economic base in the
328     proposed town and surrounding area, including household size and income, commercial and
329     industrial development, and public facilities;
330          (iii) projected growth in the proposed town and in adjacent areas during the next five
331     years;
332          (iv) subject to Subsection (7)(c), the present and five-year projections of the cost,
333     including overhead, of governmental services in the proposed town, including:
334          (A) culinary water;
335          (B) secondary water;
336          (C) sewer;
337          (D) law enforcement;

338          (E) fire protection;
339          (F) roads and public works;
340          (G) garbage;
341          (H) weeds; and
342          (I) government offices;
343          (v) assuming the same tax categories and tax rates as currently imposed by the county
344     and all other current service providers, the present and five-year projected revenue for the
345     proposed town; and
346          (vi) a projection of any new taxes per household that may be levied within the
347     incorporated area within five years of incorporation.
348          (c) (i) For purposes of Subsection (7)(b)(iv), the feasibility consultant shall assume a
349     level and quality of governmental services to be provided to the proposed town in the future
350     that fairly and reasonably approximate the level and quality of governmental services being
351     provided to the proposed town at the time of the feasibility study.
352          (ii) In determining the present cost of a governmental service, the feasibility consultant
353     shall consider:
354          (A) the amount it would cost the proposed town to provide governmental service for
355     the first five years after incorporation; and
356          (B) the county's present and five-year projected cost of providing governmental
357     service.
358          (iii) The costs calculated under Subsection (7)(b)(iv), shall take into account inflation
359     and anticipated growth.
360          (d) If the five year projected revenues under Subsection (7)(b)(v) exceed the five-year
361     projected costs under Subsection (7)(b)(iv) by more than 10%, the feasibility consultant shall
362     project and report the expected annual revenue surplus to the contact sponsor and the lieutenant
363     governor.
364          (e) The lieutenant governor shall post a copy of the feasibility study on the lieutenant
365     governor's website and make a copy available for public review at the Office of the Lieutenant

366     Governor.
367          (f) The lieutenant governor shall approve a certified petition proposing the
368     incorporation of a town and hold a public hearing as provided in Section 10-2a-303.
369          Section 4. Section 10-2a-302.5 is enacted to read:
370          10-2a-302.5. Incorporation of a town -- Petition.
371          (1) As used in this section:
372          (a) "Assessed value," with respect to agricultural land, means the value at which the
373     land would be assessed without regard to a valuation for agricultural use under Section
374     59-2-503.
375          (b) (i) "Municipal services" means any of the following that are publicly provided:
376          (A) culinary water;
377          (B) secondary water;
378          (C) sewer service;
379          (D) law enforcement service;
380          (E) fire protection;
381          (F) roads;
382          (G) refuse collection; or
383          (H) weed control.
384          (ii) "Municipal services" includes the physical facilities required to provide a service
385     described in Subsection (1)(b)(i).
386          (2) (a) This section applies to individuals who seek to initiate the process of
387     incorporating a town on or after May 9, 2017.
388          (b) Individuals who reside in a contiguous area of a county that is not within a
389     municipality may incorporate as a town as provided in this section if:
390          (i) the area has a population of at least 100 people, but less than 1,000 people; and
391          (ii) at least 50% of the voting eligible population in the area are registered voters.
392          (c) An area within a county of the first class is not contiguous for purposes of
393     Subsection (2)(b) if:

394          (i) the area includes a strip of land that connects geographically separate areas; and
395          (ii) the distance between the geographically separate areas is greater than the average
396     width of the strip of land connecting the geographically separate areas.
397          (3) (a) Individuals described in Subsection (2) may initiate the process of incorporating
398     a town by filing an application for an incorporation petition with the lieutenant governor that
399     contains:
400          (i) the name and residential address of at least five sponsors of the petition who meet
401     the qualifications described in Subsection (3)(b) for a sponsor and Subsection (7) for a petition
402     signer;
403          (ii) a statement certifying that each of the sponsors:
404          (A) is a resident of the state; and
405          (B) has voted in a regular general election or municipal general election in the state
406     within the last three years;
407          (iii) the signature of each sponsor, attested to by a notary public;
408          (iv) the name of a sponsor who is designated as the contact sponsor;
409          (v) consistent with the requirements described in Subsection (3)(c), an accurate map or
410     plat, prepared by a licensed surveyor, showing a legal description of the boundary of the
411     proposed town; and
412          (vi) a statement indicating whether persons may be paid for gathering signatures for the
413     petition.
414          (b) Sponsors may not file a petition under this section if the cumulative private real
415     property that the petition sponsors own exceeds 40% of the total private land area within the
416     boundaries of the proposed town.
417          (c) A map described in Subsection (3)(a)(v) may not include an area proposed for
418     annexation in an annexation petition described in Section 10-2-403 that is pending on the day
419     on which the application for the incorporation petition is filed.
420          (4) (a) If the lieutenant governor determines that an incorporation petition application
421     complies with the requirements described in Subsection (3)(a), the lieutenant governor shall

422     accept the application and mail or transmit written notification of the acceptance to:
423          (i) the contact sponsor; and
424          (ii) the Utah Population Estimates Committee.
425          (b) If the lieutenant governor determines that an application does not comply with the
426     requirements described in Subsection (3)(a), the lieutenant governor shall reject the application
427     and mail or transmit written notification of the rejection, including the reason for the rejection,
428     to the contact sponsor.
429          (5) (a) Within 20 days after the day on which the lieutenant governor accepts an
430     application under Subsection (4)(a), the Utah Population Estimates Committee shall:
431          (i) determine the population of the proposed town as of the date the application was
432     filed under Subsection (3) for the proposed town; and
433          (ii) provide that determination to the lieutenant governor.
434          (b) If the Utah Population Estimates Committee determines that the population of the
435     proposed town does not meet the requirements described in Subsection (2)(b)(i), the lieutenant
436     governor shall rescind the acceptance described in Subsection (4)(a) and reject the application
437     in accordance with Subsection (4)(b).
438          (6) Within 30 days after the day on which the lieutenant governor receives the
439     determination described in Subsection (5)(b) but before collecting signatures under Subsection
440     (7), the sponsors of the incorporation petition shall hold a public hearing at which the public
441     may:
442          (a) review the map or plat of the proposed town described in Subsection (3)(a)(v);
443          (b) ask questions and receive information about the incorporation of the proposed
444     town; and
445          (c) express views about the proposed incorporation, including views regarding the
446     boundary of the proposed town.
447          (7) (a) If, after holding the public hearing described in Subsection (6), the sponsors
448     wish to proceed with the proposed incorporation, the sponsors shall circulate an incorporation
449     petition that, in order to be declared sufficient under Subsection (8)(b)(i), must be signed by:

450          (i) the owners of private real property that:
451          (A) is located within the boundaries of the proposed town; and
452          (B) is collectively greater than or equal to 20% of the assessed value of all private real
453     property within the boundaries of the proposed town; and
454          (ii) 20% of the registered voters residing within the boundaries of the proposed town,
455     as of the day on which the petition is filed.
456          (b) The petition sponsors shall ensure that the petition is:
457          (i) accompanied by and circulated with a copy of the map described in Subsection
458     (3)(a)(v); and
459          (ii) printed in substantially the following form:
460          "PETITION FOR INCORPORATION OF (insert the proposed name of the proposed
461     town)
462          To the Honorable Lieutenant Governor:
463          We, the undersigned, respectfully petition the lieutenant governor to direct the county to
464     submit to the registered voters residing within the area described in this petition, in an election,
465     the question of whether the area should incorporate as a town. Each of the undersigned affirms
466     that each has personally signed this petition and is an owner of real property located within, or
467     is a registered voter residing within, the described area, and that the current residence address
468     of each is correctly written after the signer's name. The area we propose for incorporation as a
469     town is described as follows: (insert an accurate description of the area proposed to be
470     incorporated)."
471          (c) An individual who signs a petition described in this Subsection (7) may withdraw
472     or reinstate the individual's signature by filing a written, signed statement with the lieutenant
473     governor before the lieutenant governor certifies the petition signatures under Subsection (8).
474          (d) The petition sponsors shall submit a completed petition to the lieutenant governor
475     no later than 316 days after the day on which the sponsors submit the application described in
476     Subsection (3)(a) to the lieutenant governor.
477          (8) No later than 20 days after the day on which the sponsors submit the petition to the

478     lieutenant governor under Subsection (7)(d), the lieutenant governor shall:
479          (a) determine whether the petition complies with the requirements described in
480     Subsection (7); and
481          (b) (i) if the lieutenant governor determines that the petition complies with the
482     requirements described in Subsection (7):
483          (A) certify the petition as sufficient; and
484          (B) mail or deliver written notification of the certification to the contact sponsor; or
485          (ii) if the lieutenant governor determines that the petition does not comply with the
486     requirements described in Subsection (7):
487          (A) reject the petition; and
488          (B) notify the contact sponsor in writing of the rejection and the reasons for the
489     rejection.
490          (9) (a) Petition sponsors may amend a petition that the lieutenant governor rejected
491     under Subsection (8)(b)(ii) by:
492          (i) correcting the reason for which the lieutenant governor rejects the petition; and
493          (ii) submitting an amended petition to the lieutenant governor no later than the deadline
494     described in Subsection (7)(d).
495          (b) A valid signature on a petition that the lieutenant governor rejects under Subsection
496     (8)(b)(ii) is valid for an amended petition that the petition sponsors submit to the lieutenant
497     governor under Subsection (9)(a).
498          (c) The lieutenant governor shall review an amended petition in accordance with
499     Subsection (8).
500          (d) The sponsors of an incorporation petition may not amend the petition more than
501     once.
502          (10) (a) If the lieutenant governor certifies an incorporation petition as sufficient under
503     Subsection (8), the lieutenant governor shall, within seven days after the day on which the
504     lieutenant governor certifies the petition, mail or transmit written notice of the proposed
505     incorporation to each person who owns private real property that:

506          (i) is located within the boundaries of the proposed town; and
507          (ii) has a value that is greater than or equal to 1% of the assessed value of all private
508     real property within the boundaries of the proposed town.
509          (b) A person described in Subsection (10)(a) may request that the lieutenant governor
510     exclude all or part of the person's property from boundaries of the proposed town if:
511          (i) the property does not require, and is not expected to require, a municipal service
512     that the proposed town will provide; and
513          (ii) exclusion of the property will not leave an unincorporated island within the
514     proposed town.
515          (c) (i) To request exclusion under this Subsection (10), a person described in
516     Subsection (10)(a) shall file a written request with the lieutenant governor within 10 days after
517     the day on which the person receives the notice described in Subsection (10)(a).
518          (ii) The notice shall describe the property for which the person requests exclusion.
519          (d) (i) The lieutenant governor shall exclude property from the boundaries of the
520     proposed town if the property is described in a written request filed under Subsection (10)(c)
521     and meets the requirements described in Subsection (10)(b).
522          (ii) Within five days after the lieutenant governor excludes the property, the lieutenant
523     governor shall mail or transmit written notice of the exclusion to the person who filed the
524     request and to the contact sponsor.
525          (11) (a) If the lieutenant governor certifies an incorporation petition as sufficient under
526     Subsection (8), the lieutenant governor shall, in accordance with Title 63G, Chapter 6a, Utah
527     Procurement Code, procure the services of a feasibility consultant to conduct a financial
528     feasibility study on the proposed incorporation.
529          (b) The lieutenant governor shall ensure that a feasibility consultant selected under
530     Subsection (11)(a):
531          (i) has expertise in the processes and economics of local government; and
532          (ii) is not affiliated with:
533          (A) a sponsor of the incorporation petition to which the feasability study relates; or

534          (B) the county in which the proposed town is located.
535          (c) The lieutenant governor shall require the feasibility consultant to complete the
536     financial feasibility study and submit written results of the study to the lieutenant governor no
537     later than 60 days after the day on which the lieutenant governor procures the services of the
538     feasibility consultant.
539          (d) The financial consultant shall ensure that the financial feasibility study includes:
540          (i) an analysis of the population and population density within the boundaries of the
541     proposed town and the surrounding area;
542          (ii) the current and projected five-year demographics of, and tax base within, the
543     boundaries of the proposed town and the surrounding area, including household size and
544     income, commercial and industrial development, and public facilities;
545          (iii) subject to Subsection (11)(e), the current and five-year projected cost of providing
546     municipal services to the proposed town, including administrative costs;
547          (iv) assuming the same tax categories and tax rates as currently imposed by the county
548     and all other current municipal services providers, the present and five-year projected revenue
549     for the proposed town;
550          (v) a projection of the tax burden per household of any new taxes that may be levied
551     within the proposed town within five years of the town's incorporation; and
552          (vi) if the lieutenant governor excludes property from the proposed town under
553     Subsection (10)(d), an update to the map and legal description described in Subsection
554     (3)(a)(v).
555          (e) (i) For purposes of Subsection (11)(d)(iii), the feasibility consultant shall assume
556     that the proposed town will provide a level and quality of municipal services that fairly and
557     reasonably approximate the level and quality of municipal services that are provided to the
558     proposed town at the time the feasibility consultant conducts the feasibility study.
559          (ii) In determining the present cost of municipal services, the feasibility consultant
560     shall consider:
561          (A) the amount it would cost the proposed town to provide the municipal services for

562     the first five years after the town's incorporation; and
563          (B) the current municipal services provider's present and five-year projected cost of
564     providing the municipal services.
565          (iii) In calculating the costs described in Subsection (11)(d)(iii), the feasibility
566     consultant shall account for inflation and anticipated growth.
567          (f) If the five-year projected revenues described in Subsection (11)(d)(iv) exceed the
568     five-year projected costs described in Subsection (11)(d)(iii) by more than 10%, the feasibility
569     consultant shall project and report the expected annual revenue surplus to the contact sponsor
570     and the lieutenant governor.
571          (g) The lieutenant governor shall publish the feasibility study on the lieutenant
572     governor's website and make a copy of the feasibility study available for public review at the
573     Office of the Lieutenant Governor.
574          (12) After the lieutenant governor conducts the feasibility study, the lieutenant
575     governor shall hold a public hearing in accordance with Section 10-2a-303.
576          Section 5. Section 10-2a-303 is amended to read:
577          10-2a-303. Incorporation of a town -- Public hearing on feasibility.
578          (1) If, in accordance with Section 10-2a-302 or 10-2a-302.5, the lieutenant governor
579     certifies a petition for incorporation or an amended petition for incorporation, the lieutenant
580     governor shall, after completion of the feasibility study, schedule a public hearing [to]:
581          (a) [be held] that takes place no later than 60 days after the day on which the feasibility
582     study is completed; and
583          (b) to consider, in accordance with Subsection (3)(b), the feasibility of incorporation
584     for the proposed town.
585          (2) (a) The lieutenant governor shall give notice of the public hearing on the proposed
586     incorporation by:
587          (i) (A) publishing notice of the public hearing at least once a week for two consecutive
588     weeks in a newspaper of general circulation within the proposed town; or
589          (B) if there is no newspaper of general circulation within the proposed town, posting

590     notice of the public hearing in at least five conspicuous public places within the proposed
591     town; and
592          (ii) publishing notice of the public hearing on the Utah Public Notice Website created
593     in Section 63F-1-701.
594          (b) The county in which the incorporation is proposed shall post the notice described in
595     Subsection (2)(a)(ii) on the county's website, if the county has a website, for at least two
596     consecutive weeks before the day of the public hearing.
597          (3) At the public hearing scheduled in accordance with Subsection (1), the lieutenant
598     governor shall:
599          (a) (i) provide a copy of the feasibility study; and
600          (ii) present the results of the feasibility study to the public; and
601          (b) allow the public to:
602          (i) review the map or plat of the boundary of the proposed town;
603          (ii) ask questions and become informed about the proposed incorporation; and
604          (iii) express its views about the proposed incorporation, including their views about the
605     boundary of the area proposed to be incorporated.
606          (4) A county under the direction of the lieutenant governor may not hold an election on
607     the incorporation of a town in accordance with Section 10-2a-304 if the results of the feasibility
608     study show that the five-year projected revenues under Subsection 10-2a-302(7)(b)(v) or
609     10-2a-302.5(11)(d)(iv) exceed the five-year projected costs under Subsection
610     10-2a-302(7)(b)(iv) or 10-2a-302.5(11)(d)(iii) by more than 10%.
611          Section 6. Section 10-2a-304 is amended to read:
612          10-2a-304. Incorporation of a town -- Election to incorporate -- Ballot form.
613          (1) (a) Upon [receipt of a certified petition or a certified amended petition under
614     Section 10-2a-302] the completion of a feasibility study described in Section 10-2a-302 or
615     10-2a-302.5 and the public hearing described in Section 10-2a-303, the lieutenant governor
616     shall[: (i) determine and set an election date for the] schedule an incorporation election [that is:
617     (A) on] for the proposed town on:

618          (i) the date of a regular general election [date under] described in Section 20A-1-201 or
619     on the date of a local special election [date under] described in Section 20A-1-203; and
620          [(B)] (ii) a date that is at least 65 days after the day [that the legislative body receives
621     the certified petition; and] on which the lieutenant governor certifies the petition under
622     Subsection 10-2a-302(5) or Section 10-2a-302.5.
623          [(ii)] (b) The lieutenant governor shall direct the county [legislative body of the county]
624     in which the [incorporation is] proposed town is located to hold the incorporation election on
625     the date [determined by] that the lieutenant governor [in accordance with] schedules under
626     Subsection (1)(a)[(i)].
627          [(b)] (c) The county described in Subsection (1)(b) shall hold the incorporation election
628     as directed by the lieutenant governor in accordance with Subsection (1)[(a)(ii)](b).
629          [(c)] (d) [Unless a person] An individual may not vote in an incorporation election
630     under this section unless the individual is a registered voter who resides, as defined in Section
631     20A-1-102, within the boundaries of the proposed town[, the person may not vote on the
632     proposed incorporation].
633          (2) (a) The county clerk shall publish notice of the election:
634          (i) in a newspaper of general circulation, within the area proposed to be incorporated,
635     at least once a week for three successive weeks; and
636          (ii) in accordance with Section 45-1-101 for three weeks.
637          (b) The notice required by Subsection (2)(a) shall contain:
638          (i) a statement of the contents of the petition;
639          (ii) a description of the area proposed to be incorporated as a town;
640          (iii) a statement of the date and time of the election and the location of polling places;
641     and
642          (iv) the lieutenant governor's Internet website address, if applicable, and the address of
643     the Office of the Lieutenant Governor where the feasibility study is available for review.
644          (c) The last publication of notice required under Subsection (2)(a) shall occur at least
645     one day but no more than seven days before the election.

646          (d) (i) In accordance with Subsection (2)(a)(i), if there is no newspaper of general
647     circulation within the proposed town, the county clerk shall post at least one notice of the
648     election per 100 population in conspicuous places within the proposed town that are most
649     likely to give notice of the election to the voters of the proposed town.
650          (ii) The clerk shall post the notices under Subsection (2)(d)(i) at least seven days before
651     the election under Subsection (1)(a).
652          (3) The ballot at the incorporation election shall pose the incorporation question
653     substantially as follows:
654          Shall the area described as (insert a description of the proposed town) be incorporated
655     as the town of (insert the proposed name of the proposed town)?
656          (4) The ballot shall provide a space for the voter to answer yes or no to the question in
657     Subsection (3).
658          (5) If a majority of those casting votes within the area boundaries of the proposed town
659     vote to incorporate as a town, the area shall incorporate.
660          Section 7. Section 20A-11-101 is amended to read:
661          20A-11-101. Definitions.
662          As used in this chapter:
663          (1) "Address" means the number and street where an individual resides or where a
664     reporting entity has its principal office.
665          (2) "Agent of a reporting entity" means:
666          (a) a person acting on behalf of a reporting entity at the direction of the reporting
667     entity;
668          (b) a person employed by a reporting entity in the reporting entity's capacity as a
669     reporting entity;
670          (c) the personal campaign committee of a candidate or officeholder;
671          (d) a member of the personal campaign committee of a candidate or officeholder in the
672     member's capacity as a member of the personal campaign committee of the candidate or
673     officeholder; or

674          (e) a political consultant of a reporting entity.
675          (3) "Ballot proposition" includes initiatives, referenda, proposed constitutional
676     amendments, and any other ballot propositions submitted to the voters that are authorized by
677     the Utah Code Annotated 1953.
678          (4) "Candidate" means any person who:
679          (a) files a declaration of candidacy for a public office; or
680          (b) receives contributions, makes expenditures, or gives consent for any other person to
681     receive contributions or make expenditures to bring about the person's nomination or election
682     to a public office.
683          (5) "Chief election officer" means:
684          (a) the lieutenant governor for state office candidates, legislative office candidates,
685     officeholders, political parties, political action committees, corporations, political issues
686     committees, state school board candidates, judges, and labor organizations, as defined in
687     Section 20A-11-1501; and
688          (b) the county clerk for local school board candidates.
689          (6) (a) "Contribution" means any of the following when done for political purposes:
690          (i) a gift, subscription, donation, loan, advance, or deposit of money or anything of
691     value given to the filing entity;
692          (ii) an express, legally enforceable contract, promise, or agreement to make a gift,
693     subscription, donation, unpaid or partially unpaid loan, advance, or deposit of money or
694     anything of value to the filing entity;
695          (iii) any transfer of funds from another reporting entity to the filing entity;
696          (iv) compensation paid by any person or reporting entity other than the filing entity for
697     personal services provided without charge to the filing entity;
698          (v) remuneration from:
699          (A) any organization or its directly affiliated organization that has a registered lobbyist;
700     or
701          (B) any agency or subdivision of the state, including school districts;

702          (vi) a loan made by a candidate deposited to the candidate's own campaign; and
703          (vii) in-kind contributions.
704          (b) "Contribution" does not include:
705          (i) services provided by individuals volunteering a portion or all of their time on behalf
706     of the filing entity if the services are provided without compensation by the filing entity or any
707     other person;
708          (ii) money lent to the filing entity by a financial institution in the ordinary course of
709     business; or
710          (iii) goods or services provided for the benefit of a candidate or political party at less
711     than fair market value that are not authorized by or coordinated with the candidate or political
712     party.
713          (7) "Coordinated with" means that goods or services provided for the benefit of a
714     candidate or political party are provided:
715          (a) with the candidate's or political party's prior knowledge, if the candidate or political
716     party does not object;
717          (b) by agreement with the candidate or political party;
718          (c) in coordination with the candidate or political party; or
719          (d) using official logos, slogans, and similar elements belonging to a candidate or
720     political party.
721          (8) (a) "Corporation" means a domestic or foreign, profit or nonprofit, business
722     organization that is registered as a corporation or is authorized to do business in a state and
723     makes any expenditure from corporate funds for:
724          (i) the purpose of expressly advocating for political purposes; or
725          (ii) the purpose of expressly advocating the approval or the defeat of any ballot
726     proposition.
727          (b) "Corporation" does not mean:
728          (i) a business organization's political action committee or political issues committee; or
729          (ii) a business entity organized as a partnership or a sole proprietorship.

730          (9) "County political party" means, for each registered political party, all of the persons
731     within a single county who, under definitions established by the political party, are members of
732     the registered political party.
733          (10) "County political party officer" means a person whose name is required to be
734     submitted by a county political party to the lieutenant governor in accordance with Section
735     20A-8-402.
736          (11) "Detailed listing" means:
737          (a) for each contribution or public service assistance:
738          (i) the name and address of the individual or source making the contribution or public
739     service assistance, except to the extent that the name or address of the individual or source is
740     unknown;
741          (ii) the amount or value of the contribution or public service assistance; and
742          (iii) the date the contribution or public service assistance was made; and
743          (b) for each expenditure:
744          (i) the amount of the expenditure;
745          (ii) the person or entity to whom it was disbursed;
746          (iii) the specific purpose, item, or service acquired by the expenditure; and
747          (iv) the date the expenditure was made.
748          (12) (a) "Donor" means a person that gives money, including a fee, due, or assessment
749     for membership in the corporation, to a corporation without receiving full and adequate
750     consideration for the money.
751          (b) "Donor" does not include a person that signs a statement that the corporation may
752     not use the money for an expenditure or political issues expenditure.
753          (13) "Election" means each:
754          (a) regular general election;
755          (b) regular primary election; and
756          (c) special election at which candidates are eliminated and selected.
757          (14) "Electioneering communication" means a communication that:

758          (a) has at least a value of $10,000;
759          (b) clearly identifies a candidate or judge; and
760          (c) is disseminated through the Internet, newspaper, magazine, outdoor advertising
761     facility, direct mailing, broadcast, cable, or satellite provider within 45 days of the clearly
762     identified candidate's or judge's election date.
763          (15) (a) "Expenditure" means any of the following made by a reporting entity or an
764     agent of a reporting entity on behalf of the reporting entity:
765          (i) any disbursement from contributions, receipts, or from the separate bank account
766     required by this chapter;
767          (ii) a purchase, payment, donation, distribution, loan, advance, deposit, gift of money,
768     or anything of value made for political purposes;
769          (iii) an express, legally enforceable contract, promise, or agreement to make any
770     purchase, payment, donation, distribution, loan, advance, deposit, gift of money, or anything of
771     value for political purposes;
772          (iv) compensation paid by a filing entity for personal services rendered by a person
773     without charge to a reporting entity;
774          (v) a transfer of funds between the filing entity and a candidate's personal campaign
775     committee; or
776          (vi) goods or services provided by the filing entity to or for the benefit of another
777     reporting entity for political purposes at less than fair market value.
778          (b) "Expenditure" does not include:
779          (i) services provided without compensation by individuals volunteering a portion or all
780     of their time on behalf of a reporting entity;
781          (ii) money lent to a reporting entity by a financial institution in the ordinary course of
782     business; or
783          (iii) anything listed in Subsection (15)(a) that is given by a reporting entity to
784     candidates for office or officeholders in states other than Utah.
785          (16) "Federal office" means the office of president of the United States, United States

786     Senator, or United States Representative.
787          (17) "Filing entity" means the reporting entity that is required to file a financial
788     statement required by this chapter or Chapter 12, Part 2, Judicial Retention Elections.
789          (18) "Financial statement" includes any summary report, interim report, verified
790     financial statement, or other statement disclosing contributions, expenditures, receipts,
791     donations, or disbursements that is required by this chapter or Chapter 12, Part 2, Judicial
792     Retention Elections.
793          (19) "Governing board" means the individual or group of individuals that determine the
794     candidates and committees that will receive expenditures from a political action committee,
795     political party, or corporation.
796          (20) "Incorporation" means the process established by Title 10, Chapter 2a, Municipal
797     Incorporation, by which a geographical area becomes legally recognized as a city, town, or
798     metro township.
799          (21) "Incorporation election" means the election authorized by Section 10-2a-210,
800     10-2a-304, or 10-2a-404.
801          (22) "Incorporation petition" means a petition authorized by Section 10-2a-208 [or],
802     10-2a-302, or 10-2a-302.5.
803          (23) "Individual" means a natural person.
804          (24) "In-kind contribution" means anything of value, other than money, that is accepted
805     by or coordinated with a filing entity.
806          (25) "Interim report" means a report identifying the contributions received and
807     expenditures made since the last report.
808          (26) "Legislative office" means the office of state senator, state representative, speaker
809     of the House of Representatives, president of the Senate, and the leader, whip, and assistant
810     whip of any party caucus in either house of the Legislature.
811          (27) "Legislative office candidate" means a person who:
812          (a) files a declaration of candidacy for the office of state senator or state representative;
813          (b) declares oneself to be a candidate for, or actively campaigns for, the position of

814     speaker of the House of Representatives, president of the Senate, or the leader, whip, and
815     assistant whip of any party caucus in either house of the Legislature; or
816          (c) receives contributions, makes expenditures, or gives consent for any other person to
817     receive contributions or make expenditures to bring about the person's nomination, election, or
818     appointment to a legislative office.
819          (28) "Major political party" means either of the two registered political parties that
820     have the greatest number of members elected to the two houses of the Legislature.
821          (29) "Officeholder" means a person who holds a public office.
822          (30) "Party committee" means any committee organized by or authorized by the
823     governing board of a registered political party.
824          (31) "Person" means both natural and legal persons, including individuals, business
825     organizations, personal campaign committees, party committees, political action committees,
826     political issues committees, and labor organizations, as defined in Section 20A-11-1501.
827          (32) "Personal campaign committee" means the committee appointed by a candidate to
828     act for the candidate as provided in this chapter.
829          (33) "Personal use expenditure" has the same meaning as provided under Section
830     20A-11-104.
831          (34) (a) "Political action committee" means an entity, or any group of individuals or
832     entities within or outside this state, a major purpose of which is to:
833          (i) solicit or receive contributions from any other person, group, or entity for political
834     purposes; or
835          (ii) make expenditures to expressly advocate for any person to refrain from voting or to
836     vote for or against any candidate or person seeking election to a municipal or county office.
837          (b) "Political action committee" includes groups affiliated with a registered political
838     party but not authorized or organized by the governing board of the registered political party
839     that receive contributions or makes expenditures for political purposes.
840          (c) "Political action committee" does not mean:
841          (i) a party committee;

842          (ii) any entity that provides goods or services to a candidate or committee in the regular
843     course of its business at the same price that would be provided to the general public;
844          (iii) an individual;
845          (iv) individuals who are related and who make contributions from a joint checking
846     account;
847          (v) a corporation, except a corporation a major purpose of which is to act as a political
848     action committee; or
849          (vi) a personal campaign committee.
850          (35) (a) "Political consultant" means a person who is paid by a reporting entity, or paid
851     by another person on behalf of and with the knowledge of the reporting entity, to provide
852     political advice to the reporting entity.
853          (b) "Political consultant" includes a circumstance described in Subsection (35)(a),
854     where the person:
855          (i) has already been paid, with money or other consideration;
856          (ii) expects to be paid in the future, with money or other consideration; or
857          (iii) understands that the person may, in the discretion of the reporting entity or another
858     person on behalf of and with the knowledge of the reporting entity, be paid in the future, with
859     money or other consideration.
860          (36) "Political convention" means a county or state political convention held by a
861     registered political party to select candidates.
862          (37) (a) "Political issues committee" means an entity, or any group of individuals or
863     entities within or outside this state, a major purpose of which is to:
864          (i) solicit or receive donations from any other person, group, or entity to assist in
865     placing a ballot proposition on the ballot, assist in keeping a ballot proposition off the ballot, or
866     to advocate that a voter refrain from voting or vote for or vote against any ballot proposition;
867          (ii) make expenditures to expressly advocate for any person to sign or refuse to sign a
868     ballot proposition or incorporation petition or refrain from voting, vote for, or vote against any
869     proposed ballot proposition or an incorporation in an incorporation election; or

870          (iii) make expenditures to assist in qualifying or placing a ballot proposition on the
871     ballot or to assist in keeping a ballot proposition off the ballot.
872          (b) "Political issues committee" does not mean:
873          (i) a registered political party or a party committee;
874          (ii) any entity that provides goods or services to an individual or committee in the
875     regular course of its business at the same price that would be provided to the general public;
876          (iii) an individual;
877          (iv) individuals who are related and who make contributions from a joint checking
878     account;
879          (v) a corporation, except a corporation a major purpose of which is to act as a political
880     issues committee; or
881          (vi) a group of individuals who:
882          (A) associate together for the purpose of challenging or supporting a single ballot
883     proposition, ordinance, or other governmental action by a county, city, town, local district,
884     special service district, or other local political subdivision of the state;
885          (B) have a common liberty, property, or financial interest that is directly impacted by
886     the ballot proposition, ordinance, or other governmental action;
887          (C) do not associate together, for the purpose described in Subsection (37)(b)(vi)(A),
888     via a legal entity;
889          (D) do not receive funds for challenging or supporting the ballot proposition,
890     ordinance, or other governmental action from a person other than an individual in the group;
891     and
892          (E) do not expend a total of more than $5,000 for the purpose described in Subsection
893     (37)(b)(vi)(A).
894          (38) (a) "Political issues contribution" means any of the following:
895          (i) a gift, subscription, unpaid or partially unpaid loan, advance, or deposit of money or
896     anything of value given to a political issues committee;
897          (ii) an express, legally enforceable contract, promise, or agreement to make a political

898     issues donation to influence the approval or defeat of any ballot proposition;
899          (iii) any transfer of funds received by a political issues committee from a reporting
900     entity;
901          (iv) compensation paid by another reporting entity for personal services rendered
902     without charge to a political issues committee; and
903          (v) goods or services provided to or for the benefit of a political issues committee at
904     less than fair market value.
905          (b) "Political issues contribution" does not include:
906          (i) services provided without compensation by individuals volunteering a portion or all
907     of their time on behalf of a political issues committee; or
908          (ii) money lent to a political issues committee by a financial institution in the ordinary
909     course of business.
910          (39) (a) "Political issues expenditure" means any of the following when made by a
911     political issues committee or on behalf of a political issues committee by an agent of the
912     reporting entity:
913          (i) any payment from political issues contributions made for the purpose of influencing
914     the approval or the defeat of:
915          (A) a ballot proposition; or
916          (B) an incorporation petition or incorporation election;
917          (ii) a purchase, payment, distribution, loan, advance, deposit, or gift of money made for
918     the express purpose of influencing the approval or the defeat of:
919          (A) a ballot proposition; or
920          (B) an incorporation petition or incorporation election;
921          (iii) an express, legally enforceable contract, promise, or agreement to make any
922     political issues expenditure;
923          (iv) compensation paid by a reporting entity for personal services rendered by a person
924     without charge to a political issues committee; or
925          (v) goods or services provided to or for the benefit of another reporting entity at less

926     than fair market value.
927          (b) "Political issues expenditure" does not include:
928          (i) services provided without compensation by individuals volunteering a portion or all
929     of their time on behalf of a political issues committee; or
930          (ii) money lent to a political issues committee by a financial institution in the ordinary
931     course of business.
932          (40) "Political purposes" means an act done with the intent or in a way to influence or
933     tend to influence, directly or indirectly, any person to refrain from voting or to vote for or
934     against any:
935          (a) candidate or a person seeking a municipal or county office at any caucus, political
936     convention, or election; or
937          (b) judge standing for retention at any election.
938          (41) (a) "Poll" means the survey of a person regarding the person's opinion or
939     knowledge of an individual who has filed a declaration of candidacy for public office, or of a
940     ballot proposition that has legally qualified for placement on the ballot, which is conducted in
941     person or by telephone, facsimile, Internet, postal mail, or email.
942          (b) "Poll" does not include:
943          (i) a ballot; or
944          (ii) an interview of a focus group that is conducted, in person, by one individual, if:
945          (A) the focus group consists of more than three, and less than thirteen, individuals; and
946          (B) all individuals in the focus group are present during the interview.
947          (42) "Primary election" means any regular primary election held under the election
948     laws.
949          (43) "Publicly identified class of individuals" means a group of 50 or more individuals
950     sharing a common occupation, interest, or association that contribute to a political action
951     committee or political issues committee and whose names can be obtained by contacting the
952     political action committee or political issues committee upon whose financial statement the
953     individuals are listed.

954          (44) "Public office" means the office of governor, lieutenant governor, state auditor,
955     state treasurer, attorney general, state school board member, state senator, state representative,
956     speaker of the House of Representatives, president of the Senate, and the leader, whip, and
957     assistant whip of any party caucus in either house of the Legislature.
958          (45) (a) "Public service assistance" means the following when given or provided to an
959     officeholder to defray the costs of functioning in a public office or aid the officeholder to
960     communicate with the officeholder's constituents:
961          (i) a gift, subscription, donation, unpaid or partially unpaid loan, advance, or deposit of
962     money or anything of value to an officeholder; or
963          (ii) goods or services provided at less than fair market value to or for the benefit of the
964     officeholder.
965          (b) "Public service assistance" does not include:
966          (i) anything provided by the state;
967          (ii) services provided without compensation by individuals volunteering a portion or all
968     of their time on behalf of an officeholder;
969          (iii) money lent to an officeholder by a financial institution in the ordinary course of
970     business;
971          (iv) news coverage or any publication by the news media; or
972          (v) any article, story, or other coverage as part of any regular publication of any
973     organization unless substantially all the publication is devoted to information about the
974     officeholder.
975          (46) "Receipts" means contributions and public service assistance.
976          (47) "Registered lobbyist" means a person registered under Title 36, Chapter 11,
977     Lobbyist Disclosure and Regulation Act.
978          (48) "Registered political action committee" means any political action committee that
979     is required by this chapter to file a statement of organization with the Office of the Lieutenant
980     Governor.
981          (49) "Registered political issues committee" means any political issues committee that

982     is required by this chapter to file a statement of organization with the Office of the Lieutenant
983     Governor.
984          (50) "Registered political party" means an organization of voters that:
985          (a) participated in the last regular general election and polled a total vote equal to 2%
986     or more of the total votes cast for all candidates for the United States House of Representatives
987     for any of its candidates for any office; or
988          (b) has complied with the petition and organizing procedures of Chapter 8, Political
989     Party Formation and Procedures.
990          (51) (a) "Remuneration" means a payment:
991          (i) made to a legislator for the period the Legislature is in session; and
992          (ii) that is approximately equivalent to an amount a legislator would have earned
993     during the period the Legislature is in session in the legislator's ordinary course of business.
994          (b) "Remuneration" does not mean anything of economic value given to a legislator by:
995          (i) the legislator's primary employer in the ordinary course of business; or
996          (ii) a person or entity in the ordinary course of business:
997          (A) because of the legislator's ownership interest in the entity; or
998          (B) for services rendered by the legislator on behalf of the person or entity.
999          (52) "Reporting entity" means a candidate, a candidate's personal campaign committee,
1000     a judge, a judge's personal campaign committee, an officeholder, a party committee, a political
1001     action committee, a political issues committee, a corporation, or a labor organization, as
1002     defined in Section 20A-11-1501.
1003          (53) "School board office" means the office of state school board.
1004          (54) (a) "Source" means the person or entity that is the legal owner of the tangible or
1005     intangible asset that comprises the contribution.
1006          (b) "Source" means, for political action committees and corporations, the political
1007     action committee and the corporation as entities, not the contributors to the political action
1008     committee or the owners or shareholders of the corporation.
1009          (55) "State office" means the offices of governor, lieutenant governor, attorney general,

1010     state auditor, and state treasurer.
1011          (56) "State office candidate" means a person who:
1012          (a) files a declaration of candidacy for a state office; or
1013          (b) receives contributions, makes expenditures, or gives consent for any other person to
1014     receive contributions or make expenditures to bring about the person's nomination, election, or
1015     appointment to a state office.
1016          (57) "Summary report" means the year end report containing the summary of a
1017     reporting entity's contributions and expenditures.
1018          (58) "Supervisory board" means the individual or group of individuals that allocate
1019     expenditures from a political issues committee.
1020          Section 8. Section 63I-2-210 is amended to read:
1021          63I-2-210. Repeal dates -- Title 10.
1022          (1) Subsection 10-2a-106(2), the language that states ", including a township
1023     incorporation procedure as defined in Section 10-2a-105," is repealed July 1, 2016.
1024          (2) On July 1, 2018, the following are repealed:
1025          (a) in Subsection 10-2-403(5), the language that states "10-2a-302 or";
1026          (b) in Subsection 10-2-403(5)(b), the language that states "10-2a-302 or";
1027          (c) in Subsection 10-2a-106(2), the language that states "10-2a-302 or";
1028          (d) Section 10-2a-302;
1029          (e) Subsection 10-2a-302.5(2)(a);
1030          (f) in Subsection 10-2a-303(1), the language that states "10-2a-302 or";
1031          (g) in Subsection 10-2a-303(4), the language that states "10-2a-302(7)(b)(v) or" and
1032     "10-2a-302(7)(b)(iv) or";
1033          (h) in Subsection 10-2a-304(1)(a), the language that states "10-2a-302 or"; and
1034          (i) in Subsection 10-2a-304(1)(a)(ii), the language that states "Subsection 10-2a-302(5)
1035     or".
1036          [(2)] (3) Subsection 10-2a-410(3)(d)(ii) is repealed January 1, 2017.
1037          [(3)] (4) Section 10-2a-105 is repealed July 1, 2016.

1038          [(4)] (5) Subsection 10-9a-304(2) is repealed June 1, 2016.
1039          Section 9. Section 63I-2-220 is amended to read:
1040          63I-2-220. Repeal dates, Title 20A.
1041          [On January 1, 2017:]
1042          [(1) in Subsection 20A-1-102(71), the language that states "State Board of Education
1043     and" is repealed;]
1044          [(2) in Subsection 20A-9-201(4)(a), the language that states "and State Board of
1045     Education candidates" is repealed;]
1046          [(3) Subsection 20A-9-201(9) is repealed;]
1047          [(4) in Subsection 20A-9-403(4)(c), the language that states "State Board of Education
1048     and" is repealed;]
1049          [(5) in Subsection 20A-9-403(5)(a), the language that states "State Board of Education
1050     or" is repealed; and]
1051          [(6) Section 20A-14-104 is repealed.]
1052          On July 1, 2018, in Subsection 20A-11-101(21), the language that states ", 10-2a-302,"
1053     is repealed.