Representative John R. Westwood proposes the following substitute bill:


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          This bill provides a coordination clause.
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, and 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     Utah Code Sections Affected by Coordination Clause:
50          10-2a-302, as last amended by Laws of Utah 2015, Chapter 157 and renumbered and
51     amended by Laws of Utah 2015, Chapter 352
52          10-2a-302.5, Utah Code Annotated 1953
53     

54     Be it enacted by the Legislature of the state of Utah:
55          Section 1. Section 10-2-403 is amended to read:
56          10-2-403. Annexation petition -- Requirements -- Notice required before filing.

57          (1) Except as provided in Section 10-2-418, the process to annex an unincorporated
58     area to a municipality is initiated by a petition as provided in this section.
59          (2) (a) (i) Before filing a petition under Subsection (1) with respect to the proposed
60     annexation of an area located in a county of the first class, the person or persons intending to
61     file a petition shall:
62          (A) file with the city recorder or town clerk of the proposed annexing municipality a
63     notice of intent to file a petition; and
64          (B) send a copy of the notice of intent to each affected entity.
65          (ii) Each notice of intent under Subsection (2)(a)(i) shall include an accurate map of the
66     area that is proposed to be annexed.
67          (b) (i) Subject to Subsection (2)(b)(ii), the county in which the area proposed to be
68     annexed is located shall:
69          (A) mail the notice described in Subsection (2)(b)(iii) to:
70          (I) each owner of real property located within the area proposed to be annexed; and
71          (II) each owner of real property located within 300 feet of the area proposed to be
72     annexed; and
73          (B) send to the proposed annexing municipality a copy of the notice and a certificate
74     indicating that the notice has been mailed as required under Subsection (2)(b)(i)(A).
75          (ii) The county shall mail the notice required under Subsection (2)(b)(i)(A) within 20
76     days after receiving from the person or persons who filed the notice of intent:
77          (A) a written request to mail the required notice; and
78          (B) payment of an amount equal to the county's expected actual cost of mailing the
79     notice.
80          (iii) Each notice required under Subsection (2)(b)(i)(A) shall:
81          (A) be in writing;
82          (B) state, in bold and conspicuous terms, substantially the following:
83          "Attention: Your property may be affected by a proposed annexation.
84          Records show that you own property within an area that is intended to be included in a
85     proposed annexation to (state the name of the proposed annexing municipality) or that is within
86     300 feet of that area. If your property is within the area proposed for annexation, you may be
87     asked to sign a petition supporting the annexation. You may choose whether or not to sign the

88     petition. By signing the petition, you indicate your support of the proposed annexation. If you
89     sign the petition but later change your mind about supporting the annexation, you may
90     withdraw your signature by submitting a signed, written withdrawal with the recorder or clerk
91     of (state the name of the proposed annexing municipality) within 30 days after (state the name
92     of the proposed annexing municipality) receives notice that the petition has been certified.
93          There will be no public election on the proposed annexation because Utah law does not
94     provide for an annexation to be approved by voters at a public election. Signing or not signing
95     the annexation petition is the method under Utah law for the owners of property within the area
96     proposed for annexation to demonstrate their support of or opposition to the proposed
97     annexation.
98          You may obtain more information on the proposed annexation by contacting (state the
99     name, mailing address, telephone number, and email address of the official or employee of the
100     proposed annexing municipality designated to respond to questions about the proposed
101     annexation), (state the name, mailing address, telephone number, and email address of the
102     county official or employee designated to respond to questions about the proposed annexation),
103     or (state the name, mailing address, telephone number, and email address of the person who
104     filed the notice of intent under Subsection (2)(a)(i)(A), or, if more than one person filed the
105     notice of intent, one of those persons). Once filed, the annexation petition will be available for
106     inspection and copying at the office of (state the name of the proposed annexing municipality)
107     located at (state the address of the municipal offices of the proposed annexing municipality).";
108     and
109          (C) be accompanied by an accurate map identifying the area proposed for annexation.
110          (iv) A county may not mail with the notice required under Subsection (2)(b)(i)(A) any
111     other information or materials related or unrelated to the proposed annexation.
112          (c) (i) After receiving the certificate from the county as provided in Subsection
113     (2)(b)(i)(B), the proposed annexing municipality shall, upon request from the person or persons
114     who filed the notice of intent under Subsection (2)(a)(i)(A), provide an annexation petition for
115     the annexation proposed in the notice of intent.
116          (ii) An annexation petition provided by the proposed annexing municipality may be
117     duplicated for circulation for signatures.
118          (3) Each petition under Subsection (1) shall:

119          (a) be filed with the city recorder or town clerk, as the case may be, of the proposed
120     annexing municipality;
121          (b) contain the signatures of, if all the real property within the area proposed for
122     annexation is owned by a public entity other than the federal government, the owners of all the
123     publicly owned real property, or the owners of private real property that:
124          (i) is located within the area proposed for annexation;
125          (ii) (A) subject to Subsection (3)(b)(ii)(C), covers a majority of the private land area
126     within the area proposed for annexation;
127          (B) covers 100% of rural real property as that term is defined in Section 17B-2a-1107
128     within the area proposed for annexation; and
129          (C) covers 100% of the private land area within the area proposed for annexation, if the
130     area is within an agriculture protection area created under Title 17, Chapter 41, Agriculture and
131     Industrial Protection Areas, or a migratory bird production area created under Title 23, Chapter
132     28, Migratory Bird Production Area; and
133          (iii) is equal in value to at least 1/3 of the value of all private real property within the
134     area proposed for annexation;
135          (c) be accompanied by:
136          (i) an accurate and recordable map, prepared by a licensed surveyor, of the area
137     proposed for annexation; and
138          (ii) a copy of the notice sent to affected entities as required under Subsection
139     (2)(a)(i)(B) and a list of the affected entities to which notice was sent;
140          (d) if the area proposed to be annexed is located in a county of the first class, contain
141     on each signature page a notice in bold and conspicuous terms that states substantially the
142     following:
143          "Notice:
144          • There will be no public election on the annexation proposed by this petition because
145     Utah law does not provide for an annexation to be approved by voters at a public election.
146          • If you sign this petition and later decide that you do not support the petition, you may
147     withdraw your signature by submitting a signed, written withdrawal with the recorder or clerk
148     of (state the name of the proposed annexing municipality). If you choose to withdraw your
149     signature, you shall do so no later than 30 days after (state the name of the proposed annexing

150     municipality) receives notice that the petition has been certified.";
151          (e) if the petition proposes the annexation of an area located in a county that is not the
152     county in which the proposed annexing municipality is located, be accompanied by a copy of
153     the resolution, required under Subsection 10-2-402(6), of the legislative body of the county in
154     which the area is located; and
155          (f) designate up to five of the signers of the petition as sponsors, one of whom shall be
156     designated as the contact sponsor, and indicate the mailing address of each sponsor.
157          (4) A petition under Subsection (1) may not propose the annexation of all or part of an
158     area proposed for annexation to a municipality in a previously filed petition that has not been
159     denied, rejected, or granted.
160          (5) A petition under Subsection (1) proposing the annexation of an area located in a
161     county of the first class may not propose the annexation of an area that includes some or all of
162     an area proposed to be incorporated in a request for a feasibility study under Section 10-2a-202
163     or a petition under Section 10-2a-302 if or 10-2a-302.5:
164          (a) the request or petition was filed before the filing of the annexation petition; and
165          (b) the request, a petition under Section 10-2a-208 based on that request, or a petition
166     under Section 10-2a-302 or 10-2a-302.5 is still pending on the date the annexation petition is
167     filed.
168          (6) If practicable and feasible, the boundaries of an area proposed for annexation shall
169     be drawn:
170          (a) along the boundaries of existing local districts and special service districts for
171     sewer, water, and other services, along the boundaries of school districts whose boundaries
172     follow city boundaries or school districts adjacent to school districts whose boundaries follow
173     city boundaries, and along the boundaries of other taxing entities;
174          (b) to eliminate islands and peninsulas of territory that is not receiving municipal-type
175     services;
176          (c) to facilitate the consolidation of overlapping functions of local government;
177          (d) to promote the efficient delivery of services; and
178          (e) to encourage the equitable distribution of community resources and obligations.
179          (7) On the date of filing, the petition sponsors shall deliver or mail a copy of the
180     petition to the clerk of the county in which the area proposed for annexation is located.

181          (8) A property owner who signs an annexation petition proposing to annex an area
182     located in a county of the first class may withdraw the owner's signature by filing a written
183     withdrawal, signed by the property owner, with the city recorder or town clerk no later than 30
184     days after the municipal legislative body's receipt of the notice of certification under
185     Subsection 10-2-405(2)(c)(i).
186          Section 2. Section 10-2a-106 is amended to read:
187          10-2a-106. Feasibility study or petition to incorporate filed before May 12, 2015.
188          (1) If a request for a feasibility study to incorporate a city is filed under Section
189     10-2a-202 before May 12, 2015, the request and a subsequent feasibility study, petition, public
190     hearing, election, and any other city incorporation action applicable to that request shall be
191     filed with and be acted upon, held, processed, or paid for by the county legislative body or
192     county clerk, as applicable, as designated, directed, or authorized before Laws of Utah 2015,
193     Chapter 157, takes effect.
194          (2) If a petition to incorporate a town is filed under Section 10-2a-302 or 10-2a-302.5
195     before May 12, 2015, the petition and a subsequent feasibility study, petition, public hearing,
196     election, and any other town incorporation action applicable to that petition to incorporate shall
197     be filed with and be acted upon, held, processed, or paid for by the county legislative body or
198     county clerk, as applicable, as designated, directed, or authorized before Laws of Utah 2015,
199     Chapter 157, takes effect.
200          Section 3. Section 10-2a-302 is amended to read:
201          10-2a-302. Incorporation of a town -- Petition.
202          (1) As used in this section:
203          (a) "Assessed value," with respect to agricultural land, means the value at which the
204     land would be assessed without regard to a valuation for agricultural use under Section
205     59-2-503.
206          (b) "Feasibility consultant" means a person or firm:
207          (i) with expertise in the processes and economics of local government; and
208          (ii) who is independent of and not affiliated with a county or sponsor of a petition to
209     incorporate.
210          (c) "Financial feasibility study" means a study described in Subsection (7).
211          (d) "Municipal service" means a publicly provided service that is not provided on a

212     countywide basis.
213          (e) "Nonurban" means having a residential density of less than one unit per acre.
214          (2) (a) This section applies to individuals who seek to initiate the process of
215     incorporating a town before May 9, 2017.
216          (b) (i) A contiguous area of a county not within a municipality, with a population of at
217     least 100 but less than 1,000, may incorporate as a town as provided in this section.
218          (ii) An area within a county of the first class is not contiguous for purposes of
219     Subsection (2)[(a)](b)(i) if:
220          (A) the area includes a strip of land that connects geographically separate areas; and
221          (B) the distance between the geographically separate areas is greater than the average
222     width of the strip of land connecting the geographically separate areas.
223          [(b)] (c) The population figure under Subsection (2)[(a)](b) shall be determined:
224          (i) as of the date the incorporation petition is filed; and
225          (ii) by the Utah Population Estimates Committee within 20 days after the county clerk's
226     certification under Subsection (6) of a petition filed under Subsection (4).
227          (3) (a) [The] Individuals may initiate the process to incorporate an area as a town [is
228     initiated by filing a] by circulating a petition to incorporate the area as a town.
229          (b) The individuals must file the petition with the Office of the Lieutenant Governor no
230     later than January 2, 2018 for the petition to be valid.
231          [(b)] (c) A petition under Subsection (3)[(a)](b) shall:
232          (i) be signed by:
233          (A) the owners of private real property that:
234          (I) is located within the area proposed to be incorporated; and
235          (II) is equal in assessed value to more than 1/5 of the assessed value of all private real
236     property within the area; and
237          (B) 1/5 of all registered voters within the area proposed to be incorporated as a town,
238     according to the official voter registration list maintained by the county on the date the petition
239     is filed;
240          (ii) designate as sponsors at least five of the property owners who have signed the
241     petition, one of whom shall be designated as the contact sponsor, with the mailing address of
242     each owner signing as a sponsor;

243          (iii) be accompanied by and circulated with an accurate map or plat, prepared by a
244     licensed surveyor, showing a legal description of the boundary of the proposed town; and
245          (iv) substantially comply with and be circulated in the following form:
246          PETITION FOR INCORPORATION OF (insert the proposed name of the proposed
247     town)
248          To the Honorable Lieutenant Governor:
249          We, the undersigned owners of real property and registered voters within the area
250     described in this petition, respectfully petition the lieutenant governor to direct the county
251     legislative body to submit to the registered voters residing within the area described in this
252     petition, at the next regular general election, the question of whether the area should
253     incorporate as a town. Each of the undersigned affirms that each has personally signed this
254     petition and is an owner of real property or a registered voter residing within the described area,
255     and that the current residence address of each is correctly written after the signer's name. The
256     area proposed to be incorporated as a town is described as follows: (insert an accurate
257     description of the area proposed to be incorporated).
258          [(c)] (d) A petition under this Subsection (3) may not describe an area that includes
259     some or all of an area proposed for annexation in an annexation petition under Section
260     10-2-403 that:
261          (i) was filed before the filing of the petition; and
262          (ii) is still pending on the date the petition is filed.
263          [(d)] (e) A petition may not be filed under this section if the private real property
264     owned by the petition sponsors, designated under Subsection (3)[(b)](c)(ii), cumulatively
265     exceeds 40% of the total private land area within the area proposed to be incorporated as a
266     town.
267          [(e)] (f) A signer of a petition under this Subsection (3) may withdraw or, after
268     withdrawn, reinstate the signer's signature on the petition:
269          (i) at any time until the lieutenant governor certifies the petition under Subsection (5);
270     and
271          (ii) by filing a signed, written withdrawal or reinstatement with the lieutenant governor.
272          (4) (a) If a petition is filed under Subsection (3)[(a)](b) proposing to incorporate as a
273     town an area located within a county of the first class, the lieutenant governor shall deliver

274     written notice of the proposed incorporation:
275          (i) to each owner of private real property owning more than 1% of the assessed value
276     of all private real property within the area proposed to be incorporated as a town; and
277          (ii) within seven calendar days after the date on which the petition is filed.
278          (b) A private real property owner described in Subsection (4)(a)(i) may exclude all or
279     part of the owner's property from the area proposed to be incorporated as a town by filing a
280     notice of exclusion:
281          (i) with the lieutenant governor; and
282          (ii) within 10 calendar days after receiving the clerk's notice under Subsection (4)(a).
283          (c) The lieutenant governor shall exclude from the area proposed to be incorporated as
284     a town the property identified in the notice of exclusion under Subsection (4)(b) if:
285          (i) the property:
286          (A) is nonurban; and
287          (B) does not and will not require a municipal service; and
288          (ii) exclusion will not leave an unincorporated island within the proposed town.
289          (d) If the lieutenant governor excludes property from the area proposed to be
290     incorporated as a town, the lieutenant governor shall send written notice of the exclusion to the
291     contact sponsor within five days after the exclusion.
292          (5) No later than 20 days after the filing of a petition under Subsection (3), the
293     lieutenant governor shall:
294          (a) with the assistance of other county officers of the county in which the incorporation
295     is proposed from whom the lieutenant governor requests assistance, determine whether the
296     petition complies with the requirements of Subsection (3); and
297          (b) (i) if the lieutenant governor determines that the petition complies with those
298     requirements:
299          (A) certify the petition; and
300          (B) mail or deliver written notification of the certification to:
301          (I) the contact sponsor; and
302          (II) the Utah Population Estimates Committee; or
303          (ii) if the lieutenant governor determines that the petition fails to comply with any of
304     those requirements, reject the petition and notify the contact sponsor in writing of the rejection

305     and the reasons for the rejection.
306          (6) (a) (i) A petition that is rejected under Subsection (5)(b)(ii) may be amended to
307     correct a deficiency for which it was rejected and then refiled with the lieutenant governor.
308          (ii) A valid signature on a petition filed under Subsection (3)[(a)](b) may be used
309     toward fulfilling the signature requirement of Subsection (3)[(b)](c) for the same petition that
310     is amended under Subsection (6)(a)(i) and then refiled with the lieutenant governor.
311          (b) If a petition is amended and refiled under Subsection (6)(a)(i) after having been
312     rejected by the lieutenant governor under Subsection (5)(b)(ii):
313          (i) the amended petition shall be considered as a newly filed petition; and
314          (ii) the amended petition's processing priority is determined by the date on which it is
315     refiled.
316          (7) (a) (i) If a petition is filed under Subsection (4) and certified under Subsection [(6)]
317     (5), the lieutenant governor shall commission and pay for a financial feasibility study.
318          (ii) The feasibility consultant shall be chosen:
319          (A) (I) by the contact sponsor of the incorporation petition, as described in Subsection
320     (3)[(b)](c)(ii), with the consent of the lieutenant governor; or
321          (II) by the lieutenant governor if the contact sponsor states, in writing, that the sponsor
322     defers selection of the feasibility consultant to the lieutenant governor; and
323          (B) in accordance with applicable county procurement procedure.
324          (iii) The lieutenant governor shall require the feasibility consultant to complete the
325     financial feasibility study and submit written results of the study to the lieutenant governor no
326     later than 30 days after the feasibility consultant is engaged to conduct the financial feasibility
327     study.
328          (b) The financial feasibility study shall consider the:
329          (i) population and population density within the area proposed for incorporation and
330     the surrounding area;
331          (ii) current and five-year projections of demographics and economic base in the
332     proposed town and surrounding area, including household size and income, commercial and
333     industrial development, and public facilities;
334          (iii) projected growth in the proposed town and in adjacent areas during the next five
335     years;

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

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

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

429          (b) If the lieutenant governor determines that an application does not comply with the
430     requirements described in Subsection (3)(a), the lieutenant governor shall reject the application
431     and mail or transmit written notification of the rejection, including the reason for the rejection,
432     to the contact sponsor.
433          (5) (a) Within 20 days after the day on which the lieutenant governor accepts an
434     application under Subsection (4)(a), the Utah Population Estimates Committee shall:
435          (i) determine the population of the proposed town as of the date the application was
436     filed under Subsection (3) for the proposed town; and
437          (ii) provide that determination to the lieutenant governor.
438          (b) If the Utah Population Estimates Committee determines that the population of the
439     proposed town does not meet the requirements described in Subsection (2)(b)(i), the lieutenant
440     governor shall rescind the acceptance described in Subsection (4)(a) and reject the application
441     in accordance with Subsection (4)(b).
442          (6) Within 30 days after the day on which the lieutenant governor receives the
443     determination described in Subsection (5)(b) but before collecting signatures under Subsection
444     (7), the sponsors of the incorporation petition shall hold a public hearing at which the public
445     may:
446          (a) review the map or plat of the proposed town described in Subsection (3)(a)(v);
447          (b) ask questions and receive information about the incorporation of the proposed
448     town; and
449          (c) express views about the proposed incorporation, including views regarding the
450     boundary of the proposed town.
451          (7) (a) If, after holding the public hearing described in Subsection (6), the sponsors
452     wish to proceed with the proposed incorporation, the sponsors shall circulate an incorporation
453     petition that, in order to be declared sufficient under Subsection (8)(b)(i), must be signed by:
454          (i) the owners of private real property that:
455          (A) is located within the boundaries of the proposed town; and
456          (B) is collectively greater than or equal to 20% of the assessed value of all private real
457     property within the boundaries of the proposed town; and
458          (ii) 20% of the registered voters residing within the boundaries of the proposed town,
459     as of the day on which the petition is filed.

460          (b) The petition sponsors shall ensure that the petition is:
461          (i) accompanied by and circulated with a copy of the map described in Subsection
462     (3)(a)(v); and
463          (ii) printed in substantially the following form:
464          "PETITION FOR INCORPORATION OF (insert the proposed name of the proposed
465     town)
466          To the Honorable Lieutenant Governor:
467          We, the undersigned, respectfully petition the lieutenant governor to direct the county to
468     submit to the registered voters residing within the area described in this petition, in an election,
469     the question of whether the area should incorporate as a town. Each of the undersigned affirms
470     that each has personally signed this petition and is an owner of real property located within, or
471     is a registered voter residing within, the described area, and that the current residence address
472     of each is correctly written after the signer's name. The area we propose for incorporation as a
473     town is described as follows: (insert an accurate description of the area proposed to be
474     incorporated)."
475          (c) An individual who signs a petition described in this Subsection (7) may withdraw
476     or reinstate the individual's signature by filing a written, signed statement with the lieutenant
477     governor before the lieutenant governor certifies the petition signatures under Subsection (8).
478          (d) The petition sponsors shall submit a completed petition to the lieutenant governor
479     no later than 316 days after the day on which the sponsors submit the application described in
480     Subsection (3)(a) to the lieutenant governor.
481          (8) No later than 20 days after the day on which the sponsors submit the petition to the
482     lieutenant governor under Subsection (7)(d), the lieutenant governor shall:
483          (a) determine whether the petition complies with the requirements described in
484     Subsection (7); and
485          (b) (i) if the lieutenant governor determines that the petition complies with the
486     requirements described in Subsection (7):
487          (A) certify the petition as sufficient; and
488          (B) mail or deliver written notification of the certification to the contact sponsor; or
489          (ii) if the lieutenant governor determines that the petition does not comply with the
490     requirements described in Subsection (7):

491          (A) reject the petition; and
492          (B) notify the contact sponsor in writing of the rejection and the reasons for the
493     rejection.
494          (9) (a) Petition sponsors may amend a petition that the lieutenant governor rejected
495     under Subsection (8)(b)(ii) by:
496          (i) correcting the reason for which the lieutenant governor rejects the petition; and
497          (ii) submitting an amended petition to the lieutenant governor no later than the deadline
498     described in Subsection (7)(d).
499          (b) A valid signature on a petition that the lieutenant governor rejects under Subsection
500     (8)(b)(ii) is valid for an amended petition that the petition sponsors submit to the lieutenant
501     governor under Subsection (9)(a).
502          (c) The lieutenant governor shall review an amended petition in accordance with
503     Subsection (8).
504          (d) The sponsors of an incorporation petition may not amend the petition more than
505     once.
506          (10) (a) If the lieutenant governor certifies an incorporation petition as sufficient under
507     Subsection (8), the lieutenant governor shall, within seven days after the day on which the
508     lieutenant governor certifies the petition, mail or transmit written notice of the proposed
509     incorporation to each person who owns private real property that:
510          (i) is located within the boundaries of the proposed town; and
511          (ii) has a value that is greater than or equal to 1% of the assessed value of all private
512     real property within the boundaries of the proposed town.
513          (b) A person described in Subsection (10)(a) may request that the lieutenant governor
514     exclude all or part of the person's property from boundaries of the proposed town if:
515          (i) the property does not require, and is not expected to require, a municipal service
516     that the proposed town will provide; and
517          (ii) exclusion of the property will not leave an unincorporated island within the
518     proposed town.
519          (c) (i) To request exclusion under this Subsection (10), a person described in
520     Subsection (10)(a) shall file a written request with the lieutenant governor within 10 days after
521     the day on which the person receives the notice described in Subsection (10)(a).

522          (ii) The notice shall describe the property for which the person requests exclusion.
523          (d) (i) The lieutenant governor shall exclude property from the boundaries of the
524     proposed town if the property is described in a written request filed under Subsection (10)(c)
525     and meets the requirements described in Subsection (10)(b).
526          (ii) Within five days after the lieutenant governor excludes the property, the lieutenant
527     governor shall mail or transmit written notice of the exclusion to the person who filed the
528     request and to the contact sponsor.
529          (11) (a) If the lieutenant governor certifies an incorporation petition as sufficient under
530     Subsection (8), the lieutenant governor shall, in accordance with Title 63G, Chapter 6a, Utah
531     Procurement Code, procure the services of a feasibility consultant to conduct a financial
532     feasibility study on the proposed incorporation.
533          (b) The lieutenant governor shall ensure that a feasibility consultant selected under
534     Subsection (11)(a):
535          (i) has expertise in the processes and economics of local government; and
536          (ii) is not affiliated with:
537          (A) a sponsor of the incorporation petition to which the feasability study relates; or
538          (B) the county in which the proposed town is located.
539          (c) The lieutenant governor shall require the feasibility consultant to complete the
540     financial feasibility study and submit written results of the study to the lieutenant governor no
541     later than 60 days after the day on which the lieutenant governor procures the services of the
542     feasibility consultant.
543          (d) The financial consultant shall ensure that the financial feasibility study includes:
544          (i) an analysis of the population and population density within the boundaries of the
545     proposed town and the surrounding area;
546          (ii) the current and projected five-year demographics of, and tax base within, the
547     boundaries of the proposed town and the surrounding area, including household size and
548     income, commercial and industrial development, and public facilities;
549          (iii) subject to Subsection (11)(e), the current and five-year projected cost of providing
550     municipal services to the proposed town, including administrative costs;
551          (iv) assuming the same tax categories and tax rates as currently imposed by the county
552     and all other current municipal services providers, the present and five-year projected revenue

553     for the proposed town;
554          (v) a projection of the tax burden per household of any new taxes that may be levied
555     within the proposed town within five years of the town's incorporation; and
556          (vi) if the lieutenant governor excludes property from the proposed town under
557     Subsection (10)(d), an update to the map and legal description described in Subsection
558     (3)(a)(v).
559          (e) (i) For purposes of Subsection (11)(d)(iii), the feasibility consultant shall assume
560     that the proposed town will provide a level and quality of municipal services that fairly and
561     reasonably approximate the level and quality of municipal services that are provided to the
562     proposed town at the time the feasibility consultant conducts the feasibility study.
563          (ii) In determining the present cost of municipal services, the feasibility consultant
564     shall consider:
565          (A) the amount it would cost the proposed town to provide the municipal services for
566     the first five years after the town's incorporation; and
567          (B) the current municipal services provider's present and five-year projected cost of
568     providing the municipal services.
569          (iii) In calculating the costs described in Subsection (11)(d)(iii), the feasibility
570     consultant shall account for inflation and anticipated growth.
571          (f) If the five-year projected revenues described in Subsection (11)(d)(iv) exceed the
572     five-year projected costs described in Subsection (11)(d)(iii) by more than 10%, the feasibility
573     consultant shall project and report the expected annual revenue surplus to the contact sponsor
574     and the lieutenant governor.
575          (g) The lieutenant governor shall publish the feasibility study on the lieutenant
576     governor's website and make a copy of the feasibility study available for public review at the
577     Office of the Lieutenant Governor.
578          (12) After the lieutenant governor conducts the feasibility study, the lieutenant
579     governor shall hold a public hearing in accordance with Section 10-2a-303.
580          Section 5. Section 10-2a-303 is amended to read:
581          10-2a-303. Incorporation of a town -- Public hearing on feasibility.
582          (1) If, in accordance with Section 10-2a-302 or 10-2a-302.5, the lieutenant governor
583     certifies a petition for incorporation or an amended petition for incorporation, the lieutenant

584     governor shall, after completion of the feasibility study, schedule a public hearing [to]:
585          (a) [be held] that takes place no later than 60 days after the day on which the feasibility
586     study is completed; and
587          (b) to consider, in accordance with Subsection (3)(b), the feasibility of incorporation
588     for the proposed town.
589          (2) (a) The lieutenant governor shall give notice of the public hearing on the proposed
590     incorporation by:
591          (i) (A) publishing notice of the public hearing at least once a week for two consecutive
592     weeks in a newspaper of general circulation within the proposed town; or
593          (B) if there is no newspaper of general circulation within the proposed town, posting
594     notice of the public hearing in at least five conspicuous public places within the proposed
595     town; and
596          (ii) publishing notice of the public hearing on the Utah Public Notice Website created
597     in Section 63F-1-701.
598          (b) The county in which the incorporation is proposed shall post the notice described in
599     Subsection (2)(a)(ii) on the county's website, if the county has a website, for at least two
600     consecutive weeks before the day of the public hearing.
601          (3) At the public hearing scheduled in accordance with Subsection (1), the lieutenant
602     governor shall:
603          (a) (i) provide a copy of the feasibility study; and
604          (ii) present the results of the feasibility study to the public; and
605          (b) allow the public to:
606          (i) review the map or plat of the boundary of the proposed town;
607          (ii) ask questions and become informed about the proposed incorporation; and
608          (iii) express its views about the proposed incorporation, including their views about the
609     boundary of the area proposed to be incorporated.
610          (4) A county under the direction of the lieutenant governor may not hold an election on
611     the incorporation of a town in accordance with Section 10-2a-304 if the results of the feasibility
612     study show that the five-year projected revenues under Subsection 10-2a-302(7)(b)(v) or
613     10-2a-302.5(11)(d)(iv) exceed the five-year projected costs under Subsection
614     10-2a-302(7)(b)(iv) or 10-2a-302.5(11)(d)(iii) by more than 10%.

615          Section 6. Section 10-2a-304 is amended to read:
616          10-2a-304. Incorporation of a town -- Election to incorporate -- Ballot form.
617          (1) (a) Upon [receipt of a certified petition or a certified amended petition under
618     Section 10-2a-302] the completion of a feasibility study described in Section 10-2a-302 or
619     10-2a-302.5 and the public hearing described in Section 10-2a-303, the lieutenant governor
620     shall[: (i) determine and set an election date for the] schedule an incorporation election [that is:
621     (A) on] for the proposed town on:
622          (i) the date of a regular general election [date under] described in Section 20A-1-201 or
623     on the date of a local special election [date under] described in Section 20A-1-203; and
624          [(B)] (ii) a date that is at least 65 days after the day [that the legislative body receives
625     the certified petition; and] on which the lieutenant governor certifies the petition under
626     Subsection 10-2a-302(5) or 10-2a-302.5.
627          [(ii)] (b) The lieutenant governor shall direct the county [legislative body of the county]
628     in which the [incorporation is] proposed town is located to hold the incorporation election on
629     the date [determined by] that the lieutenant governor [in accordance with] schedules under
630     Subsection (1)(a)[(i)].
631          [(b)] (c) The county described in Subsection (1)(b) shall hold the incorporation election
632     as directed by the lieutenant governor in accordance with Subsection (1)[(a)(ii)](b).
633          [(c)] (d) [Unless a person] An individual may not vote in an incorporation election
634     under this section unless the individual is a registered voter who resides, as defined in Section
635     20A-1-102, within the boundaries of the proposed town[, the person may not vote on the
636     proposed incorporation].
637          (2) (a) The county clerk shall publish notice of the election:
638          (i) in a newspaper of general circulation, within the area proposed to be incorporated,
639     at least once a week for three successive weeks; and
640          (ii) in accordance with Section 45-1-101 for three weeks.
641          (b) The notice required by Subsection (2)(a) shall contain:
642          (i) a statement of the contents of the petition;
643          (ii) a description of the area proposed to be incorporated as a town;
644          (iii) a statement of the date and time of the election and the location of polling places;
645     and

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

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

708          (b) "Contribution" does not include:
709          (i) services provided by individuals volunteering a portion or all of their time on behalf
710     of the filing entity if the services are provided without compensation by the filing entity or any
711     other person;
712          (ii) money lent to the filing entity by a financial institution in the ordinary course of
713     business; or
714          (iii) goods or services provided for the benefit of a candidate or political party at less
715     than fair market value that are not authorized by or coordinated with the candidate or political
716     party.
717          (7) "Coordinated with" means that goods or services provided for the benefit of a
718     candidate or political party are provided:
719          (a) with the candidate's or political party's prior knowledge, if the candidate or political
720     party does not object;
721          (b) by agreement with the candidate or political party;
722          (c) in coordination with the candidate or political party; or
723          (d) using official logos, slogans, and similar elements belonging to a candidate or
724     political party.
725          (8) (a) "Corporation" means a domestic or foreign, profit or nonprofit, business
726     organization that is registered as a corporation or is authorized to do business in a state and
727     makes any expenditure from corporate funds for:
728          (i) the purpose of expressly advocating for political purposes; or
729          (ii) the purpose of expressly advocating the approval or the defeat of any ballot
730     proposition.
731          (b) "Corporation" does not mean:
732          (i) a business organization's political action committee or political issues committee; or
733          (ii) a business entity organized as a partnership or a sole proprietorship.
734          (9) "County political party" means, for each registered political party, all of the persons
735     within a single county who, under definitions established by the political party, are members of
736     the registered political party.
737          (10) "County political party officer" means a person whose name is required to be
738     submitted by a county political party to the lieutenant governor in accordance with Section

739     20A-8-402.
740          (11) "Detailed listing" means:
741          (a) for each contribution or public service assistance:
742          (i) the name and address of the individual or source making the contribution or public
743     service assistance, except to the extent that the name or address of the individual or source is
744     unknown;
745          (ii) the amount or value of the contribution or public service assistance; and
746          (iii) the date the contribution or public service assistance was made; and
747          (b) for each expenditure:
748          (i) the amount of the expenditure;
749          (ii) the person or entity to whom it was disbursed;
750          (iii) the specific purpose, item, or service acquired by the expenditure; and
751          (iv) the date the expenditure was made.
752          (12) (a) "Donor" means a person that gives money, including a fee, due, or assessment
753     for membership in the corporation, to a corporation without receiving full and adequate
754     consideration for the money.
755          (b) "Donor" does not include a person that signs a statement that the corporation may
756     not use the money for an expenditure or political issues expenditure.
757          (13) "Election" means each:
758          (a) regular general election;
759          (b) regular primary election; and
760          (c) special election at which candidates are eliminated and selected.
761          (14) "Electioneering communication" means a communication that:
762          (a) has at least a value of $10,000;
763          (b) clearly identifies a candidate or judge; and
764          (c) is disseminated through the Internet, newspaper, magazine, outdoor advertising
765     facility, direct mailing, broadcast, cable, or satellite provider within 45 days of the clearly
766     identified candidate's or judge's election date.
767          (15) (a) "Expenditure" means any of the following made by a reporting entity or an
768     agent of a reporting entity on behalf of the reporting entity:
769          (i) any disbursement from contributions, receipts, or from the separate bank account

770     required by this chapter;
771          (ii) a purchase, payment, donation, distribution, loan, advance, deposit, gift of money,
772     or anything of value made for political purposes;
773          (iii) an express, legally enforceable contract, promise, or agreement to make any
774     purchase, payment, donation, distribution, loan, advance, deposit, gift of money, or anything of
775     value for political purposes;
776          (iv) compensation paid by a filing entity for personal services rendered by a person
777     without charge to a reporting entity;
778          (v) a transfer of funds between the filing entity and a candidate's personal campaign
779     committee; or
780          (vi) goods or services provided by the filing entity to or for the benefit of another
781     reporting entity for political purposes at less than fair market value.
782          (b) "Expenditure" does not include:
783          (i) services provided without compensation by individuals volunteering a portion or all
784     of their time on behalf of a reporting entity;
785          (ii) money lent to a reporting entity by a financial institution in the ordinary course of
786     business; or
787          (iii) anything listed in Subsection (15)(a) that is given by a reporting entity to
788     candidates for office or officeholders in states other than Utah.
789          (16) "Federal office" means the office of president of the United States, United States
790     Senator, or United States Representative.
791          (17) "Filing entity" means the reporting entity that is required to file a financial
792     statement required by this chapter or Chapter 12, Part 2, Judicial Retention Elections.
793          (18) "Financial statement" includes any summary report, interim report, verified
794     financial statement, or other statement disclosing contributions, expenditures, receipts,
795     donations, or disbursements that is required by this chapter or Chapter 12, Part 2, Judicial
796     Retention Elections.
797          (19) "Governing board" means the individual or group of individuals that determine the
798     candidates and committees that will receive expenditures from a political action committee,
799     political party, or corporation.
800          (20) "Incorporation" means the process established by Title 10, Chapter 2a, Municipal

801     Incorporation, by which a geographical area becomes legally recognized as a city, town, or
802     metro township.
803          (21) "Incorporation election" means the election authorized by Section 10-2a-210,
804     10-2a-304, or 10-2a-404.
805          (22) "Incorporation petition" means a petition authorized by Section 10-2a-208 [or],
806     10-2a-302, or 10-2a-302.5.
807          (23) "Individual" means a natural person.
808          (24) "In-kind contribution" means anything of value, other than money, that is accepted
809     by or coordinated with a filing entity.
810          (25) "Interim report" means a report identifying the contributions received and
811     expenditures made since the last report.
812          (26) "Legislative office" means the office of state senator, state representative, speaker
813     of the House of Representatives, president of the Senate, and the leader, whip, and assistant
814     whip of any party caucus in either house of the Legislature.
815          (27) "Legislative office candidate" means a person who:
816          (a) files a declaration of candidacy for the office of state senator or state representative;
817          (b) declares oneself to be a candidate for, or actively campaigns for, the position of
818     speaker of the House of Representatives, president of the Senate, or the leader, whip, and
819     assistant whip of any party caucus in either house of the Legislature; or
820          (c) receives contributions, makes expenditures, or gives consent for any other person to
821     receive contributions or make expenditures to bring about the person's nomination, election, or
822     appointment to a legislative office.
823          (28) "Major political party" means either of the two registered political parties that
824     have the greatest number of members elected to the two houses of the Legislature.
825          (29) "Officeholder" means a person who holds a public office.
826          (30) "Party committee" means any committee organized by or authorized by the
827     governing board of a registered political party.
828          (31) "Person" means both natural and legal persons, including individuals, business
829     organizations, personal campaign committees, party committees, political action committees,
830     political issues committees, and labor organizations, as defined in Section 20A-11-1501.
831          (32) "Personal campaign committee" means the committee appointed by a candidate to

832     act for the candidate as provided in this chapter.
833          (33) "Personal use expenditure" has the same meaning as provided under Section
834     20A-11-104.
835          (34) (a) "Political action committee" means an entity, or any group of individuals or
836     entities within or outside this state, a major purpose of which is to:
837          (i) solicit or receive contributions from any other person, group, or entity for political
838     purposes; or
839          (ii) make expenditures to expressly advocate for any person to refrain from voting or to
840     vote for or against any candidate or person seeking election to a municipal or county office.
841          (b) "Political action committee" includes groups affiliated with a registered political
842     party but not authorized or organized by the governing board of the registered political party
843     that receive contributions or makes expenditures for political purposes.
844          (c) "Political action committee" does not mean:
845          (i) a party committee;
846          (ii) any entity that provides goods or services to a candidate or committee in the regular
847     course of its business at the same price that would be provided to the general public;
848          (iii) an individual;
849          (iv) individuals who are related and who make contributions from a joint checking
850     account;
851          (v) a corporation, except a corporation a major purpose of which is to act as a political
852     action committee; or
853          (vi) a personal campaign committee.
854          (35) (a) "Political consultant" means a person who is paid by a reporting entity, or paid
855     by another person on behalf of and with the knowledge of the reporting entity, to provide
856     political advice to the reporting entity.
857          (b) "Political consultant" includes a circumstance described in Subsection (35)(a),
858     where the person:
859          (i) has already been paid, with money or other consideration;
860          (ii) expects to be paid in the future, with money or other consideration; or
861          (iii) understands that the person may, in the discretion of the reporting entity or another
862     person on behalf of and with the knowledge of the reporting entity, be paid in the future, with

863     money or other consideration.
864          (36) "Political convention" means a county or state political convention held by a
865     registered political party to select candidates.
866          (37) (a) "Political issues committee" means an entity, or any group of individuals or
867     entities within or outside this state, a major purpose of which is to:
868          (i) solicit or receive donations from any other person, group, or entity to assist in
869     placing a ballot proposition on the ballot, assist in keeping a ballot proposition off the ballot, or
870     to advocate that a voter refrain from voting or vote for or vote against any ballot proposition;
871          (ii) make expenditures to expressly advocate for any person to sign or refuse to sign a
872     ballot proposition or incorporation petition or refrain from voting, vote for, or vote against any
873     proposed ballot proposition or an incorporation in an incorporation election; or
874          (iii) make expenditures to assist in qualifying or placing a ballot proposition on the
875     ballot or to assist in keeping a ballot proposition off the ballot.
876          (b) "Political issues committee" does not mean:
877          (i) a registered political party or a party committee;
878          (ii) any entity that provides goods or services to an individual or committee in the
879     regular course of its business at the same price that would be provided to the general public;
880          (iii) an individual;
881          (iv) individuals who are related and who make contributions from a joint checking
882     account;
883          (v) a corporation, except a corporation a major purpose of which is to act as a political
884     issues committee; or
885          (vi) a group of individuals who:
886          (A) associate together for the purpose of challenging or supporting a single ballot
887     proposition, ordinance, or other governmental action by a county, city, town, local district,
888     special service district, or other local political subdivision of the state;
889          (B) have a common liberty, property, or financial interest that is directly impacted by
890     the ballot proposition, ordinance, or other governmental action;
891          (C) do not associate together, for the purpose described in Subsection (37)(b)(vi)(A),
892     via a legal entity;
893          (D) do not receive funds for challenging or supporting the ballot proposition,

894     ordinance, or other governmental action from a person other than an individual in the group;
895     and
896          (E) do not expend a total of more than $5,000 for the purpose described in Subsection
897     (37)(b)(vi)(A).
898          (38) (a) "Political issues contribution" means any of the following:
899          (i) a gift, subscription, unpaid or partially unpaid loan, advance, or deposit of money or
900     anything of value given to a political issues committee;
901          (ii) an express, legally enforceable contract, promise, or agreement to make a political
902     issues donation to influence the approval or defeat of any ballot proposition;
903          (iii) any transfer of funds received by a political issues committee from a reporting
904     entity;
905          (iv) compensation paid by another reporting entity for personal services rendered
906     without charge to a political issues committee; and
907          (v) goods or services provided to or for the benefit of a political issues committee at
908     less than fair market value.
909          (b) "Political issues contribution" does not include:
910          (i) services provided without compensation by individuals volunteering a portion or all
911     of their time on behalf of a political issues committee; or
912          (ii) money lent to a political issues committee by a financial institution in the ordinary
913     course of business.
914          (39) (a) "Political issues expenditure" means any of the following when made by a
915     political issues committee or on behalf of a political issues committee by an agent of the
916     reporting entity:
917          (i) any payment from political issues contributions made for the purpose of influencing
918     the approval or the defeat of:
919          (A) a ballot proposition; or
920          (B) an incorporation petition or incorporation election;
921          (ii) a purchase, payment, distribution, loan, advance, deposit, or gift of money made for
922     the express purpose of influencing the approval or the defeat of:
923          (A) a ballot proposition; or
924          (B) an incorporation petition or incorporation election;

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

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

987     Governor.
988          (50) "Registered political party" means an organization of voters that:
989          (a) participated in the last regular general election and polled a total vote equal to 2%
990     or more of the total votes cast for all candidates for the United States House of Representatives
991     for any of its candidates for any office; or
992          (b) has complied with the petition and organizing procedures of Chapter 8, Political
993     Party Formation and Procedures.
994          (51) (a) "Remuneration" means a payment:
995          (i) made to a legislator for the period the Legislature is in session; and
996          (ii) that is approximately equivalent to an amount a legislator would have earned
997     during the period the Legislature is in session in the legislator's ordinary course of business.
998          (b) "Remuneration" does not mean anything of economic value given to a legislator by:
999          (i) the legislator's primary employer in the ordinary course of business; or
1000          (ii) a person or entity in the ordinary course of business:
1001          (A) because of the legislator's ownership interest in the entity; or
1002          (B) for services rendered by the legislator on behalf of the person or entity.
1003          (52) "Reporting entity" means a candidate, a candidate's personal campaign committee,
1004     a judge, a judge's personal campaign committee, an officeholder, a party committee, a political
1005     action committee, a political issues committee, a corporation, or a labor organization, as
1006     defined in Section 20A-11-1501.
1007          (53) "School board office" means the office of state school board.
1008          (54) (a) "Source" means the person or entity that is the legal owner of the tangible or
1009     intangible asset that comprises the contribution.
1010          (b) "Source" means, for political action committees and corporations, the political
1011     action committee and the corporation as entities, not the contributors to the political action
1012     committee or the owners or shareholders of the corporation.
1013          (55) "State office" means the offices of governor, lieutenant governor, attorney general,
1014     state auditor, and state treasurer.
1015          (56) "State office candidate" means a person who:
1016          (a) files a declaration of candidacy for a state office; or
1017          (b) receives contributions, makes expenditures, or gives consent for any other person to

1018     receive contributions or make expenditures to bring about the person's nomination, election, or
1019     appointment to a state office.
1020          (57) "Summary report" means the year end report containing the summary of a
1021     reporting entity's contributions and expenditures.
1022          (58) "Supervisory board" means the individual or group of individuals that allocate
1023     expenditures from a political issues committee.
1024          Section 8. Section 63I-2-210 is amended to read:
1025          63I-2-210. Repeal dates -- Title 10.
1026          (1) Subsection 10-2a-106(2), the language that states ", including a township
1027     incorporation procedure as defined in Section 10-2a-105," is repealed July 1, 2016.
1028          (2) On July 1, 2018, the following are repealed:
1029          (a) in Subsection 10-2-403(5), the language that states "10-2a-302 or";
1030          (b) in Subsection 10-2-403(5)(b), the language that states "10-2a-302 or"
1031          (c) in Subsection 10-2a-106(2), the language that states "10-2a-302 or";
1032          (d) Section 10-2a-302;
1033          (e) Subsection 10-2a-302.5(2)(a);
1034          (f) in Subsection 10-2a-303(1), the language that states "10-2a-302 or";
1035          (g) in Subsection 10-2a-303(4), the language that states "10-2a-302 (7)(b)(v) or" and
1036     "10-2a-302 (7)(b)(iv) or";
1037          (h) in Subsection 10-2a-304(1)(a), the language that states "10-2a-302 or"; and
1038          (i) in Subsection 10-2a-304(1)(a)(ii), the language that states "10-2a-302(5) or".
1039          [(2)] (3) Subsection 10-2a-410(3)(d)(ii) is repealed January 1, 2017.
1040          [(3)] (4) Section 10-2a-105 is repealed July 1, 2016.
1041          [(4)] (5) Subsection 10-9a-304(2) is repealed June 1, 2016.
1042          Section 9. Section 63I-2-220 is amended to read:
1043          63I-2-220. Repeal dates, Title 20A.
1044          [On January 1, 2017:]
1045          [(1) in Subsection 20A-1-102(71), the language that states "State Board of Education
1046     and" is repealed;]
1047          [(2) in Subsection 20A-9-201(4)(a), the language that states "and State Board of
1048     Education candidates" is repealed;]

1049          [(3) Subsection 20A-9-201(9) is repealed;]
1050          [(4) in Subsection 20A-9-403(4)(c), the language that states "State Board of Education
1051     and" is repealed;]
1052          [(5) in Subsection 20A-9-403(5)(a), the language that states "State Board of Education
1053     or" is repealed; and]
1054          [(6) Section 20A-14-104 is repealed.]
1055          On July 1, 2018, in Subsection 20A-11-101(21), the language that states ", 10-2a-302,"
1056     is repealed.
1057          Section 10. Coordinating H.B. 415 with H.B. 335 -- Technical amendments.
1058          If this H.B. 415 and H.B. 335, Utah Population Estimates Production, both pass and
1059     become law, it is the intent of the Legislature that the Office of Legislative Research and
1060     General Counsel, in preparing the Utah Code database for publication, change the terminology
1061     in Sections 10-2a-302 and 10-2a-302.5 from "Utah Population Estimates Committee" to "Utah
1062     Population Committee."