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H.B. 166






Sponsor: Roger E. Barrus

             6      This act modifies the Utah Municipal Code by amending provisions relating to municipal
             7      appropriations. The act sets standards and requires studies and hearings for certain
             8      appropriations. The act makes technical changes.
             9      This act affects sections of Utah Code Annotated 1953 as follows:
             10      AMENDS:
             11          10-8-2, as last amended by Chapter 96, Laws of Utah 2001
             12      Be it enacted by the Legislature of the state of Utah:
             13          Section 1. Section 10-8-2 is amended to read:
             14           10-8-2. Appropriations -- Acquisition and disposal of property -- Corporate purpose.
             15          (1) A [city] municipal legislative body may:
             16          (a) appropriate money for corporate purposes only;
             17          (b) provide for payment of debts and expenses of the corporation;
             18          (c) purchase, receive, hold, sell, lease, convey, and dispose of real and personal property
             19      for the benefit of the [city] municipality, whether the property is within or without the [city's]
             20      municipality's corporate boundaries;
             21          (d) improve, protect, and do any other thing in relation to this property that an individual
             22      could do; and
             23          (e) subject to Subsection (2) and after first holding a public hearing, authorize [city]
             24      municipal services or other nonmonetary [property or] assistance to be [given] provided to or
             25      waive fees required to be paid by a nonprofit entity, whether or not the [city] municipality receives
             26      consideration in return.
             27          (2) Services or assistance provided pursuant to Subsection (1)(e) is not subject to the

             28      provisions of Subsection (3). The total amount of services or other nonmonetary assistance
             29      provided or fees waived under Subsection (1)(e) in any given fiscal year may not exceed 1% of the
             30      municipality's budget for that fiscal year.
             31          [(2)] (3) It is considered a corporate purpose to appropriate money for any purpose that,
             32      in the judgment of the [city] municipal legislative body, provides for the safety, health, prosperity,
             33      moral well-being, peace, order, comfort, or convenience of the inhabitants of the [city.]
             34      municipality subject to the following:
             35          (a) The net value received for any money appropriated shall be measured on a
             36      project-by-project basis over the life of the project.
             37          (b) The criteria for a determination under this Subsection (3) shall be established by the
             38      municipality's legislative body. A determination of value received, made by the municipality's
             39      legislative body, shall be presumed valid unless it can be shown that the determination was
             40      arbitrary, capricious, or illegal.
             41          (c) The municipality may consider intangible benefits received by the municipality in
             42      determining net value received.
             43          (d) Prior to the municipal legislative body making any decision to appropriate any funds
             44      for a corporate purpose under this section, a public hearing shall be held. Notice of the hearing
             45      shall be published in a newspaper of general circulation at least 14 days prior to the date of the
             46      hearing, or, if there is no newspaper of general circulation, by posting notice in at least three
             47      conspicuous places within the municipality for the same time period.
             48          (e) A study shall be performed before notice of the public hearing is given, and shall be
             49      made available at the municipality, for review by interested parties, at least 14 days immediately
             50      prior to the public hearing, setting forth, an analysis and demonstrating the purpose for the
             51      appropriation. In making the study, the following factors shall be considered:
             52          (i) what identified benefit the municipality will receive in return for any money or
             53      resources appropriated;
             54          (ii) the municipality's purpose for the appropriation, including an analysis of the way the
             55      appropriation will be used to enhance the safety, health, prosperity, moral well-being, peace, order,
             56      comfort, or convenience of the inhabitants of the municipality; and
             57          (iii) whether the appropriation is necessary and appropriate to accomplish the reasonable
             58      goals and objectives of the municipality in the area of economic development, job creation,

             59      affordable housing, blight elimination, job preservation, the preservation of historic structures and
             60      property, and any other public purpose.
             61          (f) An appeal may be taken from a final decision of the municipal legislative body, to make
             62      an appropriation. The appeal shall be filed within 30 days after the date of that decision, to the
             63      district court. Any appeal shall be based on the record of the proceedings before the legislative
             64      body. A decision of the municipal legislative body shall be presumed to be valid unless the
             65      appealing party shows that the decision was arbitrary, capricious, or illegal.
             66          (g) The provisions of this Subsection (3) apply only to those appropriations made after
             67      May 6, 2002.

Legislative Review Note
    as of 1-30-02 4:40 PM

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

Office of Legislative Research and General Counsel

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