Section 1. Section 17B-1-502 is amended to read:17B-1-502. Withdrawal of area from special district -- Automatic withdrawal in certain circumstances.(1)(a)An area within the boundaries of a special district may be withdrawn from the special district only as provided in this part or, if applicable, as provided in Chapter 2a, Part 11, Municipal Services District Act.(b)Except as provided in Subsections (2) and (3), the inclusion of an area of a special district within a municipality because of a municipal incorporation under Title 10, Chapter 2a, Municipal Incorporation, a municipal annexation under Title 10, Chapter 2, Part 8, Annexation, or a boundary adjustment under Title 10, Chapter 2, Part 9, Municipal Boundary Adjustments, does not affect the requirements under this part for the process of withdrawing that area from the special district.(2)(a)An area within the boundaries of a special district is automatically withdrawn from the special district by the annexation of the area to a municipality under Title 10, Chapter 2, Part 8, Annexation, or the adding of the area to a municipality by boundary adjustment under Title 10, Chapter 2, Part 9, Municipal Boundary Adjustments, if:(i)the special district provides:(A)fire protection, paramedic, and emergency services; or(B)law enforcement service;(ii)an election for the creation of the special district was not required because of Subsection 17B-1-214(3)(d) or (g); and(iii)before annexation or boundary adjustment, the boundaries of the special district do not include any of the annexing municipality.(b)The effective date of a withdrawal under this Subsection (2) is governed by Subsection 17B-1-512(2)(b).(3)(a)Except as provided in Subsection (3)(c) or (d), an area within the boundaries of a special district located in a county of the first class is automatically withdrawn from the special district by the incorporation of a municipality whose boundaries include the area if:(i)the special district provides municipal services, as defined in Section 17B-2a-1102, excluding fire protection, paramedic, emergency, and law enforcement services;(ii)an election for the creation of the special district was not required because of Subsection 17B-1-214(3)(g); and(iii)the legislative body of the newly incorporated municipality:(A)adopts a resolution no later than 180 days after the effective date of incorporation approving the withdrawal that includes the legal description of the area to be withdrawn; and(B)delivers a copy of the resolution to the board of trustees of the special district.(b)The effective date of a withdrawal under this Subsection (3) is governed by Subsection 17B-1-512(2)(a).(c)Section 17B-1-505 governs the withdrawal of an incorporated area within a county of the first class if:(i)the special district from which the area is withdrawn provides:(A)fire protection, paramedic, and emergency services;(B)law enforcement service; or(C)municipal services, as defined in Section 17B-2a-1102;(ii)an election for the creation of the special district was not required under Subsection 17B-1-214(3)(d) or (g); and(iii)for a special district that provides municipal services, as defined in Section 17B-2a-1102, excluding fire protection, paramedic, emergency, and law enforcement services, the 180-day period described in Subsection (3)(a)(iii)(A) is expired.(d)An area may not be withdrawn from a special district that provides municipal services, as defined in Section 17B-2a-1102, excluding fire protection, paramedic, emergency, and law enforcement services, if the area is within a converted municipality, as defined in Section 10-1-201.5.

Section 2. Section 17B-1-504 is amended to read:17B-1-504. Initiation of withdrawal process -- Notice of petition.(1)Except as provided in Section 17B-1-505, the process to withdraw an area from a special district may be initiated:(a)for a special district funded predominantly by revenues from property taxes or service charges other than those based upon acre-feet of water:(i)by a petition signed by the owners of private real property that:(A)is located within the area proposed to be withdrawn;(B)covers at least 51% of the total private land within the area proposed to be withdrawn; and(C)is equal in taxable value to at least 51% of the taxable value of all private real property within the area proposed to be withdrawn;(ii)by a petition signed by registered voters residing within the area proposed to be withdrawn equal in number to at least 67% of the number of votes cast in the same area for the office of governor at the last regular general election before the filing of the petition;(iii)by a resolution adopted by the board of trustees of the special district in which the area proposed to be withdrawn is located, which:(A)states the reasons for withdrawal; and(B)is accompanied by a general description of the area proposed to be withdrawn; or(iv)by a resolution to file a petition with the special district to withdraw from the special district all or a specified portion of the area within a municipality or county, adopted by the governing body of a municipality that has within its boundaries an area located within the boundaries of a special district, or by the governing body of a county that has within its boundaries an area located within the boundaries of a special district that is located in more than one county, which petition of the governing body shall be filed with the board of trustees only if a written request to petition the board of trustees to withdraw an area from the special district has been filed with the governing body of the municipality, or county, and the request has been signed by registered voters residing within the boundaries of the area proposed for withdrawal equal in number to at least 51% of the number of votes cast in the same area for the office of governor at the last regular general election before the filing of the petition;(b)for a special district whose board of trustees is elected by electors based on the acre-feet of water allotted to the land owned by the elector:(i)in the same manner as provided in Subsection (1)(a)(iii) or Subsection (1)(a)(iv); or(ii)by a petition signed by the owners of at least 67% of the acre-feet of water allotted to the land proposed to be withdrawn; (c)for a special district funded predominantly by revenues other than property taxes, service charges, or assessments based upon an allotment of acre-feet of water:(i)in the same manner as provided in Subsection (1)(a)(iii) or Subsection (1)(a)(iv); or(ii)by a petition signed by the registered voters residing within the entire area proposed to be withdrawn, which area shall be comprised of an entire unincorporated area within the special district or an entire municipality within a special district, or a combination thereof, equal in number to at least 67% of the number of votes cast within the entire area proposed to be withdrawn for the office of governor at the last regular general election before the filing of the petition; or(d)for an infrastructure financing district, by a petition signed by 100% of the owners of all surface property within the area proposed to be withdrawn.(2)(a)Prior toBefore soliciting any signatures on a petition under Subsection (1), the sponsors of the petition shall:(i)notify the special district board with which the petition is intended to be filed that the sponsors will be soliciting signatures for a petition; and(ii)mail a copy of the petition to the special district board.(b)Subsection (2)(a) does not apply to a petition to withdraw an area from an infrastructure financing district.

Section 3. Section 17B-1-505 is amended to read:17B-1-505. Withdrawal from certain districts providing fire protection, paramedic, and emergency services or law enforcement service or municipal services.(1)As used in this section,: (a)"County" means all of the unincorporated land in a county of the first class, as classified under Section 17-60-104, that is entirely within the boundary of a first responder district.(b)"Eligible area" means:(i)all of the unincorporated land in a county of the first class, as classified under Section 17-60-104, that is entirely within the boundary of a first responder district; or(ii)all of a municipality that is entirely within the boundary of a qualified district.(c)"first"First responder district" means a special district, other than a municipal services district, that provides:(a)(i)fire protection, paramedic, and emergency services; or(b)(ii)law enforcement service.(d)"Legislative body" means:(i)for an eligible area that is wholly within a municipality, the municipal legislative body; and(ii)for an eligible area that is all of the unincorporated land in a county, the county legislative body.(e)"Municipal services district" means a municipal services district formed under Chapter 2a, Part 11, Municipal Services District Act.(f)"Qualified district" means:(i)a first responder district; or(ii)a municipal services district.(2)This section applies to theprovides the sole method of withdrawal of: (a)a municipality that is entirely within the boundary of a first responder district from the first responder district;(b)a municipality that is entirely within the boundary of a municipal services district from the municipal services district; and(c) or municipal services district that was created without the necessity of an election because of Subsection 17B-1-214(3)(d) or (g)a county from a first responder district.(3)(a)The process to withdraw a municipality from a first responder district or municipal services district, or a county from a first responder district, may be initiated by a resolution adopted by thea legislative body of the municipality, subject to Subsection (3)(b).(b)The legislative body of a municipality that is within a municipal services district may not adopt a resolution under Subsection (3)(a) to withdraw from the municipal services district unless the municipality has conducted a feasibility study in accordance with Section 17B-2a-1110.(c)Within 10 days after adopting a resolution under Subsection (3)(a), the municipal legislative body shall submit to the board of trustees of the first responder district or municipal services qualified district written notice of the adoption of the resolution, accompanied by a copy of the resolution.(4)If a resolution is adopted under Subsection (3)(a) by the legislative body of a municipality within a municipal services district, the municipal legislative body shall hold an election at the next municipal general election that is more than 60180 days after adoption of the resolution on the question of whether the municipality should withdraw from the municipal services district.(5)(a)A municipality or county shall be withdrawn from a first responder district if:(i)the legislative body of the municipality governing the municipality or county adopts a resolution initiating the withdrawal under Subsection (3)(a); and(ii)(A)whether before or after the effective date of this section, the municipalitythe legislative body of the municipality or county and the first responder district agree in writing to the withdrawal; or(B)except as provided in Subsection (5)(b) and subject to Subsection (6), the voters of the municipality residing in the eligible area approve the withdrawal at an election held for that purpose.(b)An election under Subsection (5)(a)(ii)(B) is not required if, after a feasibility study is conducted under Section 17B-1-505.5 and a public hearing is held under Subsection 17B-1-505.5(14), the municipalitylegislative body governing the eligible area and first responder district agree in writing to the withdrawal.(6)An election under Subsection (5)(a)(ii)(B) may not be held unless:(a)a feasibility study is conducted under Section 17B-1-505.5; and(b)(i)the feasibility study concludes that the withdrawal is functionally and financially feasible for the municipalityeligible area and the first responder district; or(ii)(A)the feasibility study concludes that the withdrawal would be functionally and financially feasible for the municipalityeligible area and the first responder district if conditions specified in the feasibility study are met; and(B)the legislative body of the municipalityeligible area adopts a resolution irrevocably committing the municipalityeligible area to satisfying the conditions specified in the feasibility study, if the withdrawal is approved by the municipality's voters.(7)If a majority of those voting on the question of withdrawal at an election held under Subsection (4) or (5)(a)(ii)(B) vote in favor of withdrawal, the municipalityeligible area shall be withdrawn from the specialqualified district.(8)(a)Within 10 days after the canvass of an election at which a withdrawal under this section is submitted to voters, the municipal legislative body shall send written notice to the board of the first responder district or municipal services qualified district from which the municipalityeligible area is proposed to withdraw.(b)Each notice under Subsection (8)(a) shall:(i)state the results of the withdrawal election; and(ii)if the withdrawal was approved by voters, be accompanied by a copy of an approved final local entity plat, as defined in Section 67-1a-6.5.(9)The effective date of a withdrawal under this section is governed by Subsection 17B-1-512(2)(a)Section 17B-1-512.

Section 4. Section 17B-1-505.5 is amended to read:17B-1-505.5. Feasibility study for withdrawal from a special district providing fire protection, paramedic, and emergency services or law enforcement service -- Notice of hearing.(1)As used in this section:(a)"Eligible area" means the same as that term is defined in Section 17B-1-505.(b)"Feasibility consultant" means a person with expertise in:(i)the processes and economics of local government; and(ii)the economics of providing fire protection, paramedic, and emergency services or law enforcement service.(b)(c)"Feasibility study" means a study to determine the functional and financial feasibility of a municipality's withdrawal from a first responder special district.(c)(d)"First responder district" means a special district, other than a municipal services district, that provides:(i)fire protection, paramedic, and emergency services; or(ii)law enforcement servicethe same as that term is defined in Section 17B-1-505.(d)(e)"Withdrawing municipalityentity" means: (i)a municipality whose legislative body has adopted a resolution under Subsection 17B-1-505(3)(a) to initiate the process of the municipality's withdrawal from a first responder district.; or(ii)a county whose legislative body has adopted a resolution under Subsection 17B-1-505(3)(a) to initiate the process of withdrawing all unincorporated areas of the county from a first responder district.(2)This section applies and a feasibility study shall be conducted, as provided in this section, if:(a)the legislative body of a municipalitywithdrawing entity has adopted a resolution under Subsection 17B-1-505(3)(a) to initiate the process of the municipality's withdrawal from a first responder district;(b)the municipalitywithdrawing entity and first responder district have not agreed in writing to the withdrawal; and(c)a feasibility study is a condition under Subsection 17B-1-505(6)(a) for an election to be held approving the withdrawal.(3)(a)As provided in this Subsection (3), the withdrawing municipalityentity and first responder district shall choose and engage a feasibility consultant to conduct a feasibility study.(b)The withdrawing municipalityentity and first responder district shall jointly choose and engage a feasibility consultant according to applicable county, municipal, or special district procurement procedures.(c)(i)If the withdrawing municipalityentity and first responder district cannot agree on and have not engaged a feasibility consultant under Subsection (3)(b) within 45 days after the legislative body of the withdrawing municipalityentity submits written notice to the first responder district under Subsection 17B-1-505(3)(c), the withdrawing municipalityentity and first responder district shall, as provided in this Subsection (3)(c), choose a feasibility consultant from a list of at least eight feasibility consultants provided by the Utah Association of Certified Public Accountants.(ii)A list of feasibility consultants under Subsection (3)(c)(i) may not include a feasibility consultant that has had a contract to provide services to the withdrawing municipalityentity or first responder district at any time during the two-year period immediately preceding the date the list is provided under Subsection (3)(c)(i).(iii)(A)Beginning with the first responder district, the first responder district and withdrawing municipalityentity shall alternately eliminate one feasibility consultant each from the list of feasibility consultants until one feasibility consultant remains.(B)Within five days after receiving the list of consultants from the Utah Association of Certified Public Accountants, the first responder district shall make the first elimination of a feasibility consultant from the list and notify the withdrawing municipalityentity in writing of the elimination.(C)After the first elimination of a feasibility consultant from the list, the withdrawing municipalityentity and first responder district shall each, within three days after receiving the written notification of the preceding elimination, notify the other in writing of the elimination of a feasibility consultant from the list.(d)If a withdrawing municipalityentity and first responder district do not engage a feasibility consultant under Subsection (3)(b), the withdrawing municipalityentity and first responder district shall engage the feasibility consultant that has not been eliminated from the list at the completion of the process described in Subsection (3)(c).(4)A feasibility consultant that conducts a feasibility study under this section shall be independent of and unaffiliated with the withdrawing municipalityentity and first responder district.(5)In conducting a feasibility study under this section, the feasibility consultant shall consider:(a)population and population density within the withdrawing municipalityeligible area;(b)current and five-year projections of demographics and economic base in the withdrawing municipalityentity, including household size and income, commercial and industrial development, and public facilities;(c)projected growth in the withdrawing municipalityentity during the next five years;(d)subject to Subsection (6)(a), the present and five-year projections of the cost, including overhead, of providing the same service in the withdrawing municipalityentity as is provided by the first responder district, including:(i)the estimated cost if the first responder district continues to provide service; and(ii)the estimated cost if the withdrawing municipalityentity provides service;(e)subject to Subsection (6)(a), the present and five-year projections of the cost, including overhead, of the first responder district providing service with:(i)the municipalityeligible area included in the first responder district's service area; and(ii)the withdrawing municipalityentity excluded from the first responder district's service area;(f)a projection of any new taxes per household that may be levied within the withdrawing municipalityentity within five years after the withdrawal;(g)the fiscal impact that the withdrawing municipality'sentity's withdrawal has on other municipalities and unincorporated areas served by the first responder district, including any rate increase that may become necessary to maintain required coverage ratios for the first responder district's debt;(h)the physical and other assets that will be required by the withdrawing municipalityentity to provide, without interruption or diminution of service, the same service that is being provided by the first responder district;(i)the physical and other assets that will no longer be required by the first responder district to continue to provide the current level of service to the remainder of the first responder district, excluding the withdrawing municipalityentity, and could be transferred to the withdrawing municipalityentity;(j)subject to Subsection (6)(b), a fair and equitable allocation of the first responder district's assets between the first responder district and the withdrawing municipalityentity, effective upon the withdrawal of the withdrawing municipalityentity from the first responder district;(k)a fair and equitable allocation of the debts, liabilities, and obligations of the first responder district and any local building authority of the first responder district, between the withdrawing municipalityentity and the remaining first responder district, taking into consideration:(i)any requirement to maintain the excludability of interest from the income of the holder of the debt, liability, or obligation for federal income tax purposes; and(ii)any first responder district assets that have been purchased with the proceeds of bonds issued by the first responder district that the first responder district will retain and any of those assets that will be transferred to the withdrawing municipalityentity;(l)the number and classification of first responder district employees who will no longer be required to serve the remaining portions of the first responder district after the withdrawing municipalityentity withdraws from the first responder district, including the dollar amount of the wages, salaries, and benefits attributable to the employees and the estimated cost associated with termination of the employees if the withdrawing municipalityentity does not employ the employees;(m)maintaining as a base, for a period of three years after withdrawal, the existing schedule of pay and benefits for first responder district employees who are transferred to the employment of the withdrawing municipalityentity; and(n)any other factor that the feasibility consultant considers relevant to the question of the withdrawing municipality'sentity's withdrawal from the first responder district.(6)(a)For purposes of Subsections (5)(d) and (e):(i)the feasibility consultant shall assume a level and quality of service to be provided in the future to the withdrawing municipalityentity that fairly and reasonably approximates the level and quality of service that the first responder district provides to the withdrawing municipalityentity at the time of the feasibility study;(ii)in determining the present value cost of a service that the first responder district provides, the feasibility consultant shall consider:(A)the cost to the withdrawing municipalityentity of providing the service for the first five years after the withdrawal; and(B)the first responder district's present and five-year projected cost of providing the same service within the withdrawing municipalityentity; and(iii)the feasibility consultant shall consider inflation and anticipated growth in calculating the cost of providing service.(b)The feasibility consultant may not consider an allocation of first responder district assets or a transfer of first responder district employees to the extent that the allocation or transfer would impair the first responder district's ability to continue to provide the current level of service to the remainder of the first responder district without the withdrawing municipalityentity, unless the first responder district consents to the allocation or transfer.(7)A feasibility consultant may retain an architect, engineer, or other professional, as the feasibility consultant considers prudent and as provided in the agreement with the withdrawing municipalityentity and first responder district, to assist the feasibility consultant to conduct a feasibility study.(8)The withdrawing municipalityentity and first responder district shall require the feasibility consultant to:(a)complete the feasibility study within a time established by the withdrawing municipalityentity and first responder district;(b)prepare and submit a written report communicating the results of the feasibility study, including a one-page summary of the results; and(c)attend all public hearings relating to the feasibility study under Subsection (14).(9)A written report of the results of a feasibility study under this section shall:(a)contain a recommendation concerning whether a withdrawing municipality'sentity's withdrawal from a first responder district is functionally and financially feasible for both the first responder district and the withdrawing municipalityentity; and(b)include any conditions the feasibility consultant determines need to be satisfied in order to make the withdrawal functionally and financially feasible, including:(i)first responder district assets and liabilities to be allocated to the withdrawing municipalityentity; and(ii)(A)first responder district employees to become employees of the withdrawing municipalityentity; and(B)sick leave, vacation, and other accrued benefits and obligations relating to the first responder district employees that the withdrawing municipalityentity needs to assume.(10)The withdrawing municipalityentity and first responder district shall equally share the feasibility consultant's fees and costs, as specified in the agreement between the withdrawing municipalityentity and first responder district and the feasibility consultant.(11)(a)Upon completion of the feasibility study and preparation of a written report, the feasibility consultant shall deliver a copy of the report to the withdrawing municipalityentity and first responder district.(b)(i)A withdrawing municipalityentity or first responder district that disagrees with any aspect of a feasibility study report may, within 20 business days after receiving a copy of the report under Subsection (11)(a), submit to the feasibility consultant a written objection detailing the disagreement.(ii)(A)A withdrawing municipalityentity that submits a written objection under Subsection (11)(b)(i) shall simultaneously deliver a copy of the objection to the first responder district.(B)A first responder district that submits a written objection under Subsection (11)(b)(i) shall simultaneously deliver a copy of the objection to the withdrawing municipalityentity.(iii)A withdrawing municipalityentity or first responder district may, within 10 business days after receiving an objection under Subsection (11)(b)(ii), submit to the feasibility consultant a written response to the objection.(iv)(A)A withdrawing municipalityentity that submits a response under Subsection (11)(b)(iii) shall simultaneously deliver a copy of the response to the first responder district.(B)A first responder district that submits a response under Subsection (11)(b)(iii) shall simultaneously deliver a copy of the response to the withdrawing municipalityentity.(v)If an objection is filed under Subsection (11)(b)(i), the feasibility consultant shall, within 20 business days after the expiration of the deadline under Subsection (11)(b)(iii) for submitting a response to an objection:(A)modify the feasibility study report or explain in writing why the feasibility consultant is not modifying the feasibility study report; and(B)deliver the modified feasibility study report or written explanation to the withdrawing municipalityentity and first responder special district.(12)Within seven days after the expiration of the deadline under Subsection (11)(b)(i) for submitting an objection or, if an objection is submitted, within seven days after receiving a modified feasibility study report or written explanation under Subsection (11)(b)(v), but at least 30 days before a public hearing under Subsection (14), the withdrawing municipalityentity shall:(a)make a copy of the report available to the public at the primary office of the withdrawing municipalityentity; and(b)if the withdrawing municipalityentity has a website, post a copy of the report on the municipality's entity's website.(13)A feasibility study report or, if a feasibility study report is modified under Subsection (11), a modified feasibility study report may not be challenged unless the basis of the challenge is that the report results from collusion or fraud.(14)(a)Following the expiration of the deadline under Subsection (11)(b)(i) for submitting an objection, or, if an objection is submitted under Subsection (11)(b)(i), following the withdrawing municipality'sentity's receipt of the modified feasibility study report or written explanation under Subsection (11)(b)(v), the legislative body of the withdrawing municipalityentity shall, at the legislative body's next regular meeting, schedule at least one public hearing to be held:(i)within the following 60 days; and(ii)for the purpose of allowing:(A)the feasibility consultant to present the results of the feasibility study; and(B)the public to become informed about the feasibility study results, to ask the feasibility consultant questions about the feasibility study, and to express the public's views about the proposed withdrawal.(b)At a public hearing under Subsection (14)(a), the legislative body of the withdrawing municipalityentity shall:(i)provide a copy of the feasibility study for public review; and(ii)allow the public to:(A)ask the feasibility consultant questions about the feasibility study; and(B)express the public's views about the withdrawing municipality'sentity's proposed withdrawal from the first responder district.(15)(a)The clerk or recorder of the withdrawing municipalityentity shall publish notice of a hearing under Subsection (14) for the withdrawing municipalityentity, as a class A notice under Section 63G-30-102, for three consecutive weeks immediately before the public hearing.(b)A notice under Subsection (15)(a) shall state:(i)the date, time, and location of the public hearing; and(ii)that a copy of the feasibility study report may be obtained, free of charge, at the office of the withdrawing municipalityentity or on the withdrawing municipality'sentity's website.(16)Unless the withdrawing municipalityentity and first responder district agree otherwise, conditions that a feasibility study report indicates are necessary to be met for a withdrawal to be functionally and financially feasible for the withdrawing municipalityentity and first responder district are binding on the withdrawing municipalityentity and first responder district if the withdrawal occurs.

Section 5. Section 17B-1-512 is amended to read:17B-1-512. Filing of notice and plat -- Recording requirements -- Contest period -- Judicial review.(1)(a)Within the time specified in Subsection (1)(b), the board of trustees shall file with the lieutenant governor:(i)a copy of a notice of an impending boundary action, as defined in Section 67-1a-6.5, that meets the requirements of Subsection 67-1a-6.5(3); and(ii)a copy of an approved final local entity plat, as defined in Section 67-1a-6.5.(b)The board of trustees shall file the documents listed in Subsection (1)(a):(i)within 10 days after adopting a resolution approving a withdrawal under Section 17B-1-510;(ii)on or before January 31 of the year following: (A)the board of trustees' receipt of a notice or copy described in Subsection (1)(c)(1)(c)(i), if the board of trustees receives the notice or copy between July 1 and December 31on or after July 1 and before January 1; or(B)the board of trustees entering into an agreement described in Subsection (1)(c)(ii), if the agreement is executed by both parties on or after July 1 and before January 1; and(iii)on or before the July 31 following: (A)the board of trustees' receipt of a notice or copy described in Subsection (1)(c)(1)(c)(i), if the board of trustees receives the notice or copy between January 1 and June 30on or after January 1 and before June 30; or(B)the board of trustees entering into an agreement described in Subsection (1)(c)(ii), if the agreement is executed by both parties on or after January 1 and before June 30.(c)The board of trustees shall comply with the requirements described in Subsection (1)(b)(ii) or (iii) after:(i)receiving:(A)a notice under Subsection 10-2-813(2) of an automatic withdrawal under Subsection 17B-1-502(2);(B)a copy of the municipal legislative body's resolution approving an automatic withdrawal under Subsection 17B-1-502(3)(a); or(C)a notice of a withdrawal of a municipality from a special district under Section 17B-1-502; or(D)a notice of a withdrawal of an eligible area under Subsection 17B-1-505(8); or(ii)entering into an agreement with a municipality or county under Subsection 17B-1-505(5)(a)(ii)(A) or (5)(b).(d)Upon the lieutenant governor's issuance of a certificate of withdrawal under Section 67-1a-6.5, the board shall:(i)if the withdrawn area is located within the boundary of a single county, submit to the recorder of that county:(A)the original:(I)notice of an impending boundary action;(II)certificate of withdrawal; and(III)approved final local entity plat; and(B)if applicable, a certified copy of the resolution or notice referred to in Subsection (1)(b); or(ii)if the withdrawn area is located within the boundaries of more than a single county, submit:(A)the original of the documents listed in Subsections (1)(d)(i)(A)(I), (II), and (III) and, if applicable, a certified copy of the resolution or notice referred to in Subsection (1)(b) to one of those counties; and(B)a certified copy of the documents listed in Subsections (1)(d)(i)(A)(I), (II), and (III) and a certified copy of the resolution or notice referred to in Subsection (1)(b) to each other county.(2)(a)Upon the lieutenant governor's issuance of the certificate of withdrawal under Section 67-1a-6.5 for a withdrawal under Section 17B-1-510, for an automatic withdrawal under Subsection 17B-1-502(3), or for the withdrawal of a municipalityan eligible area from a special district under Section 17B-1-505, the withdrawal shall be effective, subject to the conditions of the withdrawal resolution, if applicable.(b)An automatic withdrawal under Subsection 17B-1-502(3) shall be effective upon the lieutenant governor's issuance of a certificate of withdrawal under Section 67-1a-6.5.(3)(a)The special district may provide for the publication of any resolution approving or denying the withdrawal of an area:(i)in a newspaper of general circulation in the area proposed for withdrawal; and(ii)as required in Section 45-1-101.(b)In lieu of publishing the entire resolution, the special district may publish a notice of withdrawal or denial of withdrawal, containing:(i)the name of the special district;(ii)a description of the area proposed for withdrawal;(iii)a brief explanation of the grounds on which the board of trustees determined to approve or deny the withdrawal; and(iv)the times and place where a copy of the resolution may be examined, which shall be at the place of business of the special district, identified in the notice, during regular business hours of the special district as described in the notice and for a period of at least 30 days after the publication of the notice.(4)Any sponsor of the petition or receiving entity may contest the board's decision to deny a withdrawal of an area from the special district by submitting a request, within 60 days after the resolution is adopted under Section 17B-1-510, to the board of trustees, suggesting terms or conditions to mitigate or eliminate the conditions upon which the board of trustees based its decision to deny the withdrawal.(5)Within 60 days after the request under Subsection (4) is submitted to the board of trustees, the board may consider the suggestions for mitigation and adopt a resolution approving or denying the request in the same manner as provided in Section 17B-1-510 with respect to the original resolution denying the withdrawal and file a notice of the action as provided in Subsection (1).(6)(a)Any person in interest may seek judicial review of:(i)the board of trustees' decision to withdraw an area from the special district;(ii)the terms and conditions of a withdrawal; or(iii)the board's decision to deny a withdrawal.(b)Judicial review under this Subsection (6) shall be initiated by filing an action in the district court in the county in which a majority of the area proposed to be withdrawn is located:(i)if the resolution approving or denying the withdrawal is published under Subsection (3), within 60 days after the publication or after the board of trustees' denial of the request under Subsection (5);(ii)if the resolution is not published pursuant to Subsection (3), within 60 days after the resolution approving or denying the withdrawal is adopted; or(iii)if a request is submitted to the board of trustees of a special district under Subsection (4), and the board adopts a resolution under Subsection (5), within 60 days after the board adopts a resolution under Subsection (5) unless the resolution is published under Subsection (3), in which event the action shall be filed within 60 days after the publication.(c)A court in which an action is filed under this Subsection (6) may not overturn, in whole or in part, the board of trustees' decision to approve or reject the withdrawal unless:(i)the court finds the board of trustees' decision to be arbitrary or capricious; or(ii)the court finds that the board materially failed to follow the procedures set forth in this part.(d)A court may award costs and expenses of an action under this section, including reasonable attorney fees, to the prevailing party.(7)After the applicable contest period under Subsection (4) or (6), no person may contest the board of trustees' approval or denial of withdrawal for any cause.

Section 6. Effective Date.This bill takes effect on May 6, 2026.