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H.B. 390





Sponsor: Jack A. Seitz

10    This act affects sections of Utah Code Annotated 1953 as follows:
11    AMENDS:
12         17A-1-301, as last amended by Chapter 30, Laws of Utah 1992
13         17A-2-1409, as last amended by Chapter 227, Laws of Utah 1993
14    Be it enacted by the Legislature of the state of Utah:
15        Section 1. Section 17A-1-301 is amended to read:
16         17A-1-301. Exemptions.
17        This part does not apply to:
18        (1) public transit districts established under authority of Title 17A, Chapter 2, Part 10,
19    Utah Public Transit District Act;
20        [(2) water conservancy districts established under Title 17A, Chapter 2, Part 14, Water
21    Conservancy Districts;]
22        [(3)] (2) soil conservation districts created under the authority of Title 17A, Chapter 3, Part
23    8, Soil Conservation Districts;
24        [(4)] (3) neighborhood redevelopment agencies established under authority of Title 17A,
25    Chapter 2, Part 12, Utah Neighborhood Development Act;
26        [(5)] (4) metropolitan water districts established under authority of Title 17A, Chapter 2,
27    Part 8, Metropolitan Water District Act;

1        [(6)] (5) any dependent special district established under the authority of Title 17A,
2    Chapter 3, Dependent Special Districts; and
3        [(7)] (6) Hazardous Waste Facilities Management Authorities established under authority
4    of Title 17A, Chapter 2, Part 17, Hazardous Waste Facilities Management Act.
5        Section 2. Section 17A-2-1409 is amended to read:
6         17A-2-1409. Board of directors -- Number -- Qualifications -- Terms -- Election --
7     Surety bonds -- Meetings -- Reports.
8        [(1) Within 45 days after entry of the decree incorporating the district, the board of
9    directors shall be selected as follows:]
10        [(a) Districts which consist of a single county shall have directors appointed by the county
11    legislative body.]
12        [(b) Districts consisting of more than a single county shall have directors appointed by the
13    governor with the advice and consent of the Senate from nominees submitted as follows:]
14        [(i) In a division composed solely of incorporated cities, each city within the division shall
15    submit two nominees per director.]
16        [(ii) In all other divisions, the county legislative body of the county in which the division
17    is located shall submit three nominees per director.]
18        [(iii) If a director represents a division located in more than one county, the county
19    governing bodies of those counties shall collectively compile the list of three nominees.]
20        [(c) In districts where substantial water is allocated for irrigated agriculture, one director
21    appointed in that district must be a person who owns irrigation rights and uses those rights as part
22    of his livelihood.]
23        [(2) (a) The terms of office shall be fixed as follows:]
24        [(i) approximately one-fourth of the directors first appointed, after organization of the
25    district, shall serve for one year;]
26        [(ii) approximately one-fourth of the directors first appointed shall serve for two years;]
27        [(iii) approximately one-fourth of the directors first appointed shall serve for three years;]
28    and
29        [(iv) the remainder of the directors shall serve for four years. All succeeding terms of
30    office shall be four years.]
31        [(b) The court shall establish the number, representation, and votes of directors for each

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1    district in the decree creating the district. The board of directors of the district shall consist of not
2    more than 11 persons who are residents of the district. If the district consists of five or more
3    counties, the board of directors shall consist of not more than 21 persons who are residents of the
4    district.]
5        [(c) The secretary of the board shall give written notice of vacancies in any office of
6    director and of the expiration date of terms of office of directors to the county legislative body in
7    single county districts and to the nominating entities and the governor in all other districts at least
8    90 days before the expiration date, and such notice shall be published in a newspaper having
9    general circulation.]
10        [(d) Upon receipt of the notice of the expiration of a director's term or notice of a vacancy
11    in the office of director, the city or the county legislative body shall nominate candidates to fill the
12    unexpired term of office pursuant to Subsection (1). If the entity charged with nominating
13    candidates for appointment by the governor has not submitted the list of nominees within 90 days
14    after service of the notice, the governor shall make the appointment from qualified candidates
15    without consultation with the city or the county legislative body. If the governor fails to appoint,
16    the incumbent shall continue to serve until his successor is appointed and qualified. Appointment
17    by the governor vests in the appointee, upon qualification, the authority to discharge the duties of
18    director, subject only to the advise and consent of the Senate.]
19        [(e) Each director shall hold office during the term for which he is appointed and until his
20    successor is duly appointed and has qualified.]
21        (1) (a) In the decree establishing a district under this part, the court shall, subject to
22    Subsections (1)(b) and (c), establish the number and initial terms of directors for the district.
23        (b) Each board of directors shall consist of:
24        (i) except as provided in Subsection (1)(b)(ii), not more than 11 members; or
25        (ii) in a district consisting of five or more counties, not more than 21 members.
26        (c) (i) Members of a board of directors shall serve staggered terms of four years.
27        (ii) The term of approximately half the members of the initial board of directors shall
28    expire on January 1 of the next even-numbered year more than one year after their election.
29        (iii) The remainder of the members of the initial board of directors shall serve terms that
30    expire two years after the expiration of the term of members under Subsection (1)(c)(ii).
31        (d) (i) Within 60 days of the court decree establishing a district under this part, an election

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1    shall be held for directors of the district by:
2        (A) in a district located within a single county, the clerk of that county; or
3        (B) in a district located within multiple counties, the clerks of those counties.
4        (ii) Each director elected under this Subsection (1)(d) shall be sworn in as soon as
5    practicable after the canvass of the election.
6        (e) Each member of a board of directors shall be a resident within the district.
7        (f) If substantial water is allocated for irrigated agriculture in the district, a qualification
8    of one director position, in addition to other director qualifications under this part or under Chapter
9    1, Part 3, is that the person shall own irrigation rights and use those rights as part of the person's
10    livelihood.
11        (g) Except as otherwise provided in this section, the election of each member of the board
12    of directors is governed by Section 17A-1-305.
13        (h) Until the initial board of directors is elected and sworn in, the clerk of each county in
14    which the district is located shall be the election officer for an election of board of director
15    members of the district.
16        (2) (a) Each appointed member serving on the board of directors of a district on May 5,
17    1997, shall continue to serve until the normal expiration of that member's term.
18        (b) (i) At the expiration of the term of an appointed member under Subsection (2)(a), the
19    person replacing that member shall be elected as provided in Section 17A-1-305.
20        (ii) The term of a person elected under Subsection (2)(b)(i) shall be adjusted, if necessary,
21    so that it is consistent with Subsections 17A-1-305(9) and (10).
22        (3) Each director shall furnish a corporate surety bond at the expense of the district, in
23    amount and form fixed and approved by the court, conditioned for the faithful performance of his
24    duties as a director.
25        (4) (a) An annual meeting of the board of directors shall be held on a date to be fixed by
26    the court in the order incorporating the district. The board shall also hold special meetings at least
27    quarterly.
28        (b) A report of the business transacted during the preceding year by the district, including
29    a financial report prepared by certified public accountants, shall be filed with:
30        (i) the clerk of the district court;
31        (ii) the governing bodies of counties with lands within the district; and

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1        (iii) cities [charged with nominating directors] with lands within the district.
2        (c) No more than 14 days and no less than five days prior to the annual meeting, the
3    district shall have published at least once in a newspaper having general circulation within the
4    district:
5        (i) a notice of the annual meeting; and
6        (ii) the names of the directors.
7        (d) The district shall have published a summary of its financial report in a newspaper
8    having general circulation within the district. The summary shall be published no later than 30
9    days after the date the audit report required under Title 51, Chapter 2, Audits of Political
10    Subdivisions, Interlocal Organizations and Other Local Entities, is required to be filed with the
11    state auditor.
12        (e) Subsections (4)(c) and (d) do not apply to districts with annual revenues of less than
13    $1,000,000.

Legislative Review Note
    as of 2-10-97 4:18 PM

A limited legal review of this bill raises no obvious constitutional or statutory concerns.

Office of Legislative Research and General Counsel

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