H.B. 408

1

NEW MUNICIPALITY FUNDING AMENDMENTS
2 1997 GENERAL SESSION
3 STATE OF UTAH
4 Sponsor: David L. Zolman
5 AN ACT RELATING TO CITIES AND TOWNS; AUTHORIZING OFFICERS-ELECT OF A
6 FUTURE MUNICIPALITY TO BORROW FUNDS AND ISSUE TAX ANTICIPATION
7 NOTES; AUTHORIZING COUNTIES TO GRANT OR LOAN FUNDS TO A FUTURE
8 MUNICIPALITY; AND MAKING TECHNICAL CORRECTIONS.
9 This act affects sections of Utah Code Annotated 1953 as follows:
10 AMENDS:
11 10-2-108.5, as last amended by Chapter 27, Laws of Utah 1983
12 10-2-114, as enacted by Chapter 13, Laws of Utah 1980
13 Be it enacted by the Legislature of the state of Utah:
14 Section 1. Section 10-2-108.5 is amended to read:
15 10-2-108.5. Alternative to filing articles -- Powers of officers-elect.
16 (1) In lieu of filing the articles of incorporation, the mayor-elect of the future municipality
17 may file a verified notice of intention to file the articles of incorporation. The notice shall set forth
18 the name of the future municipality, the geographical description, its class according to population,
19 and the proposed date for filing the articles of incorporation. On receipt of the notice, the lieutenant
20 governor shall certify the notice and return one copy to the county clerk or clerks of the county or
21 counties where the municipality will be located and retain one copy for his own records.
22 (2) Upon the [filing of such certified copies] lieutenant governor's certification of the
23 notice under Subsection (1) and until the municipality is legally incorporated, the persons elected
24 as officers of the future municipality [shall have the following powers until it becomes legally
25 incorporated] may:
26 (a) [to] prepare and adopt, pursuant to the Uniform Fiscal Procedures Act, a proposed
27 budget, and compilation of ordinances;

1 (b) [to] negotiate personnel contracts and hirings;
2 (c) [to] negotiate service contracts;
3 (d) [to] file the notification required by Section 11-12-3; [and]
4 (e) [to] negotiate contracts, to purchase equipment, materials, and supplies;
5 (f) borrow funds for startup expenses of the future municipality; and
6 (g) issue tax anticipation notes in the name of the future municipality.
7 (3) The municipality's legislative body shall review and ratify each action taken or contract
8 made by the officers-elect under Subsection (2) within 30 days of the effective date of
9 incorporation under Section 10-2-112.
10 Section 2. Section 10-2-114 is amended to read:
11 10-2-114. Revenues and services prior to incorporation.
12 During the period subsequent to the filing of the notice of election results and prior to the
13 date of incorporation, the county:
14 (1) shall continue to be entitled to tax and other revenues from or pertaining to the
15 proposed municipality and shall correspondingly continue to deliver services to the proposed
16 municipality; and
17 (2) may grant or loan funds to the officers-elect for startup expenses of the future
18 municipality.




Legislative Review Note
as of 2-12-97 11:25 AM

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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