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H.B. 208 Enrolled

    

AMENDMENTS TO SPECIAL DISTRICTS

    
1997 GENERAL SESSION

    
STATE OF UTAH

    
Sponsor: Brian R. Allen

    AN ACT RELATING TO SPECIAL DISTRICTS; MODIFYING THE PROVISION RELATING
    TO THE APPROVAL REQUIRED FOR THE ISSUANCE OF CHECKS; MODIFYING
    THE GOVERNING BODY'S OBLIGATION TO REVIEW EXPENDITURES
    AUTHORIZED BY THE FINANCIAL OFFICER; LIMITING THOSE TO WHOM THE
    BOARD MUST SEND A COPY OF BUDGET AND AUDIT REPORTS; AND MAKING
    TECHNICAL CORRECTIONS.
    This act affects sections of Utah Code Annotated 1953 as follows:
    AMENDS:
         17A-1-412, as renumbered and amended by Chapter 186, Laws of Utah 1990
         17A-1-439, as last amended by Chapter 200, Laws of Utah 1995
         17A-1-447, as renumbered and amended by Chapter 186, Laws of Utah 1990
         17A-1-502, as enacted by Chapter 131, Laws of Utah 1991
         17A-1-503, as enacted by Chapter 131, Laws of Utah 1991
    Be it enacted by the Legislature of the state of Utah:
        Section 1. Section 17A-1-412 is amended to read:
         17A-1-412. Hearing to consider adoption.
        (1) At the meeting at which the tentative budget is adopted, the governing body shall
    establish the time and place of a public hearing to consider its adoption and shall order that notice
    of the hearing be published at least seven days prior to the hearing in at least one issue of a
    newspaper of general circulation published in the county or counties in which the district is
    located. If no newspaper is published, the notice [requirement] required by this section may be
    posted in three public places within the district.
        (2) If the budget hearing is held in conjunction with a tax increase hearing, the notice shall
    be published in accordance with Sections 59-2-918 and 59-2-919.
        Section 2. Section 17A-1-439 is amended to read:


         17A-1-439. Duties with respect to issuance of checks.
        (1) The district clerk or other designated person not performing treasurer duties shall prepare
    the necessary checks after having determined that:
        (a) the claim was authorized by:
        (i) the governing body; or
        (ii) the special district financial officer, if the financial officer is not the clerk, in accordance
    with Section 17A-1-447;
        (b) the claim does not overexpend the appropriate departmental budget established by the
    governing body; and
        (c) the [purchase order] expenditure was approved in advance by the governing body or its
    designee [if the district has an expenditure budget of $50,000 or more per year].
        (2) (a) (i) The treasurer or any other person appointed by the governing body shall sign all
    checks.
        (ii) The person maintaining the financial records may not sign any single signature check.
        (b) In special districts with an expenditure budget of less than $50,000 per year, a member
    of the governing body shall also sign all checks.
        (c) Before affixing a signature, the treasurer or other designated person shall determine that
    a sufficient amount is on deposit in the appropriate bank account of the district to honor the check.
        Section 3. Section 17A-1-447 is amended to read:
         17A-1-447. Approval of district expenditures.
        (1) The district governing board shall approve all expenditures of the district except as
    otherwise provided in this section.
        (2) The governing body may authorize the district [director] manager or other official
    approved by the governing body to act as the financial officer for the purpose of approving:
        (a) payroll checks, if the checks are prepared in accordance with a schedule approved by the
    governing body; and
        (b) routine expenditures, such as utility bills, payroll-related expenses, supplies, and
    materials.

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        [(2)] (3) Notwithstanding [the authorization] Subsection (2), the governing body shall, at
    least quarterly, review all [the] expenditures authorized by the financial officer [at the next meeting
    of the governing board, but not less than quarterly].
        [(3)] (4) The governing body shall set a maximum sum over which all purchases may not
    be made without the approval of the governing body.
        Section 4. Section 17A-1-502 is amended to read:
         17A-1-502. Special districts to submit budgets.
        (1) (a) Within 30 days after it is approved by the board, and at least 30 days before the board
    adopts a final budget, the board of each independent special district with an annual budget of
    $50,000 or more shall send a copy of its tentative budget and notice of the time and place for its
    budget hearing to:
        (i) each of its constituent entities that has in writing requested a copy; and
        (ii) to each of its customer agencies that has in writing requested a copy.
        (b) The special district shall include with the tentative budget a signature sheet that includes:
        (i) language that the constituent entity or customer agency received the tentative budget and
    has no objection to it; and
        (ii) a place for the chairperson or other designee of the constituent entity or customer agency
    to sign.
        (2) Each constituent entity and each customer agency [of each special district] that receives
    the tentative budget shall review the tentative budget submitted by the district and either:
        (a) sign the signature sheet and return it to the district; or
        (b) attend the budget hearing or other meeting scheduled by the district to discuss the
    objections to the proposed budget.
        (3) (a) If any constituent entity or customer agency that received the tentative budget has not
    returned the signature sheet to the special district within 15 calendar days after the tentative budget
    was mailed, the special district shall send a written notice of the budget hearing to each constituent
    entity or customer agency that did not return a signature sheet and invite them to attend that hearing.
        (b) If requested to do so by any constituent entity or customer agency, the special district

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    shall schedule a meeting to discuss the budget with the constituent entities and customer agencies.
        (c) At the budget hearing, the special district board shall:
        (i) explain its budget and answer any questions about it;
        (ii) specifically address any questions or objections raised by the constituent entity, customer
    agency, or those attending the meeting; and
        (iii) seek to resolve the objections.
        (4) Nothing in this part prevents any special district board from approving or implementing
    a budget over any or all constituent entity's or customer agency's protests, objections, or failure to
    respond.
        Section 5. Section 17A-1-503 is amended to read:
         17A-1-503. Special districts to submit audit reports.
        (1) Within 30 days after it is presented to the board, the board of each independent special
    district with an annual budget of $50,000 or more shall send a copy of any audit report to:
        (a) each of its constituent entities that has in writing requested a copy; and
        (b) each of its customer agencies that has in writing requested a copy.
        (2) Each constituent entity and each customer agency [of each special district] that received
    the audit report shall review the audit report submitted by the district and, if necessary, request a
    meeting with the independent special district board to discuss the audit report.
        (3) At the meeting, the special district board shall:
        [(i)] (a) answer any questions about the audit report; and
        [(ii)] (b) discuss their plans to implement suggestions made by the auditor.

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