Download Zipped Enrolled WP 9 SB0020.ZIP 29,904 Bytes
[Introduced][Amended][Status][Bill Documents][Fiscal Note][Bills Directory]
S.B. 20 Enrolled
This act modifies the Special Districts Code by amending provisions related to irrigation
districts. The act provides for definitions. The act repeals existing provisions relating to
bonding authority of irrigation districts and enacts new bonding provisions. The act repeals
outdated provisions relating to irrigation districts. The act provides for the assessment of
use charges in place of annual assessments or taxes. The act provides for the collection of
delinquent use charges. The act makes other changes to the irrigation district provisions.
This act affects sections of Utah Code Annotated 1953 as follows:
17A-2-711, as last amended by Chapter 254, Laws of Utah 2000
17A-2-712, as last amended by Chapter 9, Laws of Utah 2001
17A-2-718, as last amended by Chapter 254, Laws of Utah 2000
17A-2-721, as last amended by Chapter 254, Laws of Utah 2000
17A-2-722, as renumbered and amended by Chapter 186, Laws of Utah 1990
17A-2-723, as last amended by Chapters 86 and 254, Laws of Utah 2000
17A-2-724, as last amended by Chapter 254, Laws of Utah 2000
17A-2-726, as last amended by Chapter 254, Laws of Utah 2000
17A-2-754, as last amended by Chapter 90, Laws of Utah 2001
17A-2-755, as renumbered and amended by Chapter 186, Laws of Utah 1990
17A-2-756, as last amended by Chapter 254, Laws of Utah 2000
17A-2-761, as last amended by Chapter 254, Laws of Utah 2000
17A-2-701.1, Utah Code Annotated 1953
17A-2-701.2, Utah Code Annotated 1953
17A-2-701.5, Utah Code Annotated 1953
17A-2-717.5, Utah Code Annotated 1953
17A-2-719.5, Utah Code Annotated 1953
17A-2-701, as last amended by Chapter 368, Laws of Utah 1998
17A-2-714, as last amended by Chapter 90, Laws of Utah 2001
17A-2-715, as last amended by Chapter 90, Laws of Utah 2001
17A-2-716, as last amended by Chapter 254, Laws of Utah 2000
17A-2-717, as renumbered and amended by Chapter 186, Laws of Utah 1990
17A-2-719, as last amended by Chapter 254, Laws of Utah 2000
17A-2-720, as last amended by Chapter 254, Laws of Utah 2000
17A-2-725, as last amended by Chapter 227, Laws of Utah 1993
17A-2-727, as last amended by Chapter 254, Laws of Utah 2000
17A-2-768, as last amended by Chapter 254, Laws of Utah 2000
Be it enacted by the Legislature of the state of Utah:
Section 1. Section 17A-2-701.1 is enacted to read:
This part is known as the "Irrigation District Act."
Section 2. Section 17A-2-701.2 is enacted to read:
As used in this part:
(1) "Electric facilities" means facilities or interests in facilities for the generation of
hydroelectric power, including hydroelectric power plants, turbine generators, penstocks,
transformers, electrical equipment, lands, rights-of-way, and all other structures, works, property,
and property interests necessary or proper for the generation of electricity or to otherwise carry out
the purposes of the irrigation district, not including transmission facilities related to hydroelectric
(2) "Facilities" means water facilities and electric facilities.
(3) "Revenues" means moneys received for water, electricity, or other services furnished by
an irrigation district, including use charges and other fees, rates, charges, or assessments.
(4) "Use charges" means all charges relating to the use, provision, or availability of water,
electricity, or other irrigation district services, including, without limiting the generality of the
foregoing, all direct or indirect charges, tolls, assessments, impact fees, connection fees, and reserve
or availability charges.
(5) "Water facilities" means facilities or interests in facilities for irrigation purposes,
including reservoir sites, reservoirs, water, water filings, water rights, rights-of-way, water works,
sources of water supply, canals, ditches, wells, pipelines, lands, stock of irrigation, canal, or reservoir
companies, and all other related structures, works, property, and property interests.
Section 3. Section 17A-2-701.5 is enacted to read:
17A-2-701.5. Creation of irrigation districts.
(1) The requirements and procedures for creating an irrigation district are governed by the
provisions of Title 17B, Chapter 2, Part 2, Creation of Local Districts.
(2) Notwithstanding anything to the contrary in the provisions of Subsection (1):
(a) An owner of land located within a proposed district may, prior to the date on which the
legislative body adopts a resolution pursuant to Subsection (2)(b), request the county legislative body
to include the land in or exclude the land from the proposed irrigation district.
(b) Within 60 days after the last hearing required under Section 17B-2-210 , the legislative
body of each county in which lands of the proposed district are located shall adopt a resolution
listing, by acreage and ownership, the lands in that county to be included in the proposed district.
The lands need not be contiguous. The list of lands to be included will be based upon:
(i) the boundaries set forth in the map accompanying the petition or resolution to create the
local district filed pursuant to Section 17B-2-203 ;
(ii) requests for the exclusion of lands from the proposed district; and
(iii) requests for the inclusion of lands in the proposed district.
(c) In determining whether to deny requests for inclusion or exclusion, and in listing the
lands to be included in the proposed district, the county legislative body may not alter the included
lands, shown by the map accompanying the petition or resolution filed pursuant to Section
17B-2-210 , in a manner which changes the objects of the petition or exempts from the operation of
this part any lands, requiring water, shown on the map included with the petition, and susceptible
of irrigation by the same system of waterworks applicable to other lands in the proposed district.
Nor may any land which will not, in the judgment of the county legislative body, be benefitted by
the proposed system be included in the district.
(d) At the time of creation of the district, the lands included in the district will consist of the
lands listed in the resolution adopted pursuant to Subsection (2)(b).
Section 4. Section 17A-2-711 is amended to read:
17A-2-711. Board of trustees -- Organization -- Powers and duties -- Other provisions
(1) The board shall establish boundaries of election precincts and may change them, but no
change may be made less than 30 days prior to an election. Upon the completion of the organization
of the district [
survey and allotment which shall be paid for by the district. Thereupon it will be the duty of the state
engineer to cause to be made a water survey of all lands within the district for the purpose of
determining and allotting the maximum amounts of water which could be beneficially used on such
land; each 40-acre tract or smaller tracts in separate ownership within each such legal subdivision
shall be separately surveyed and the allotment made therefor. On completion of said survey and
allotment, the state engineer shall file with the county legislative body with which the petition for
the creation of the district was filed, his return of survey and report of allotment. Before any bond
issue or contract is voted on, any assessment levied, or toll or use charge imposed, the board of
trustees, having first determined the amount of water available for the use of the district, shall upon
notice and a hearing and under rules determined by the board, make a final revision and allotment
of the available water to each 40-acre tract or smaller tract in separate ownership within each legal
subdivision; but no allotment may be increased above the amount originally allotted by the state
engineer without the consent of the state engineer and the final allotment may not be decreased as
long as there may be any outstanding indebtedness in excess of .4% of the fair market value of the
lands within the district. The allotment may, however, be increased to an amount not exceeding the
amount allotted by the state engineer if the additional amount of water becomes available for the use
of the district. The final allotment in acre-feet may be the basis of the vote at all elections
subsequent to the creation of the district. The final allotment in acre-feet, or other units of
measurement, the service, turnout, construction, distribution charges, or other charges, if any, [
making the allotment or any increase provided, certified to by the secretary of the district, shall be
immediately filed for record in the office of the county clerk of the county in which the office of the
district is located and a certified copy filed with the county recorder of each county in which any
lands of the district are situated. Nothing in this part may prohibit the state engineer, upon petition
by the board of trustees after the organization of the district has been perfected, from increasing the
maximum allotment of water for any tract or tracts of land embraced within the district when in the
opinion of the state engineer the tract or tracts of land cannot be beneficially irrigated with the
amount of water allotted. The board of trustees may construct facilities or may acquire facilities by
contract, purchase, or condemnation[
District lands may be leased when leasing will not interfere with their use for irrigation purposes[
and reservoir companies. The board may exchange bonds of the district for any such property upon
terms and conditions the board considers best, subject to the approval of the State Board of
Certification. The board, its agents, and employees may enter upon any land in the district to make
surveys and to locate and construct any canal or canals, and the necessary laterals. The board may,
by condemnation, acquire rights of way for the enlargement of any ditches, canals, or reservoirs, but
the board may not occupy the premises proposed to be condemned pending the determination of a
suit, except upon filing the bond required by law in the case of suits by other corporations and
individuals. The right-of-way is given, dedicated, and set apart, to locate, construct, and maintain the
works, or reservoirs, over, through, or upon any of the lands which are now, or may be the property
of the state. The board may make these investigations and based on them, make representations and
assurances to the Secretary of the Interior, as may be requisite under the act of Congress, approved
August 11, 1916, or other applicable law, and may enter into any obligation or contract with the
United States for the construction or operation and maintenance of the necessary works for the
delivery and distribution of water or for the assumption, as principal or guarantor of indebtedness
to the United States on account of district lands, or for the temporary rental of water under the
provisions of the Federal Reclamation Act, and all acts amendatory of that act, or supplementary to
it, or any other Acts of Congress now enacted or which may be enacted, and the rules and regulations
established under them; or the board may contract with the United States for a water supply under
any act of Congress providing for or permitting the contract, and may convey to the United States
as partial or full consideration water rights or other property of the district, and in case the contract
has been or may be made with the United States as provided in this section, [
board of trustees shall include as part of any [
law, an amount sufficient to meet each year all payments accruing under the terms of the contract
and the board may accept on behalf of the district, appointment of the district as fiscal agent of the
United States, or authorization of the district by the United States, or authorization of the district by
the United States to make collections of moneys for or on behalf of the United States in connection
with any federal reclamation project, at which time the district shall be authorized so as to act and
to assume the duties and liabilities incident to that action, and the board may do any and all things
required by the federal statutes enacted in connection with it, and all things required by the rules and
regulations established by any department of the federal government. Districts cooperating with the
United States may rent or lease water to private lands, entrymen, or municipalities in the
neighborhood of the district, in pursuance of a contract with the United States. [
for the distribution and use of water among the owners of lands included in this district, and may
provide that no water may be delivered to lands which are delinquent or in default in the payment
of any [
adopted, be printed in convenient form for distribution in the district; but water, the right to the use
of which is acquired by the district under any contract with the United States, shall be distributed and
apportioned by the district in accordance with the Acts of Congress, the rules and regulations, and
the provisions of the contract.
(2) The board of trustees may annually instruct the county assessor of the county in which
the lands to be affected are located to remove from the [
dedicated to streets, highways, and roads, and also other land the use of which has so permanently
changed as to prevent the beneficial use of water, and the assessor shall do so. The instructions to
the assessor shall be accompanied by a written consent to the removal from the [
assessor's roll signed by all owners of private land affected by it.
(3) When any tract of land in the district which has no water allotment becomes susceptible
to irrigation and use of water, or when any tract has an insufficient water allotment, the board of
trustees, upon written application of the owner of the land, may temporarily permit water to be
applied on the land, and in that case the board may [
in this section may affect the permanent water allotments in the district.
(4) The board of trustees may lease or rent the use of water not needed by the landowners
of the district and in addition may contract to supply and deliver the water to municipalities,
corporations, associations, or individuals, within or without the district for irrigation or any other
beneficial use, at prices and terms the board considers best. No lease or rental agreement running
for a period of more than five years may be made, and no vested or prescriptive right to the use of
the water may attach to the land by virtue of the lease or rental; and any landowner in the district
may, where practicable, with the consent of the board of trustees, assign the right to the whole or any
portion of the water apportioned to the landowner's land for any one year to any other bona fide
landowner, for use in the district for the year; if the landowners have paid all [
and submit to a public meeting of the landowners within the district, called for that purpose, a report
covering all transactions and operations of the district during the year.
(5) (a) The provisions of Title 17B, Chapter 2, Part 4, Board of Trustees, apply to each
irrigation district to the same extent as if the irrigation district were a local district under Title 17B,
Chapter 2, Local Districts.
necessary to comply with the requirements of Subsection 17B-2-403 (1), the term of each board
member whose term expires on a day other than the first Monday in January shall be extended to the
first Monday in January after the normal expiration date next following the special district election
date under Section 17A-1-305 .
(ii) If a change in the length of the term of a board of trustees member is necessary to comply
with the requirements of Subsection 17B-2-403 (2), the change may not take effect until the
expiration of the term of the member whose term length is to be changed.
Section 5. Section 17A-2-712 is amended to read:
17A-2-712. Additional powers of board.
facilities, electric facilities, or any combination thereof.
electric power generated at a hydroelectric power plant, whether or not the electric power to be sold
is surplus to the needs of the district, and may enter into contracts for the sale of water, for the
periods of time and under the terms and conditions the board [
to accomplish the purposes of the district. Any sale of [
period and upon the terms and conditions as may be provided in contracts authorized by the board
and entered into by the district and any purchaser of the electric power [
water having a system for distributing the electric power or water. Any revenues received by the
district pursuant to power or water sale contracts may be used and pledged for the payment of the
principal of and interest and any premium on bonds or notes of the district issued to pay all or part
of the cost of acquiring, constructing, improving, or enlarging [
(3) The boards of trustees of any two or more irrigation districts may, by appropriate
resolutions, enter into agreements with one another, pursuant to Title 11, Chapter 13, Interlocal
Cooperation Act, by which the districts may jointly or cooperatively exercise any of the powers
conferred by this [
(a) to pay for all or part of the costs of the acquisition, construction, improvement, or
enlargement of any facilities [
to pay expenses preliminary and incidental thereto;
(b) to pay interest on the bonds during acquisition, construction, improvement, or
enlargement of any facilities; and
(c) to provide for necessary reserves and to pay costs of issuance and sale of the bonds,
including, without limitation, printing, registration, and transfer costs, legal, financial advisor's, and
rating agency fees, insurance premiums, and underwriter's discount.
shall be payable solely out of a special fund into which the district issuing the [
be obligated to deposit, as from time to time received, all or a designated portion of the [
creates a lien which:
(a) is perfected and enforceable upon the effective date of the security agreement pursuant
to which the bonds are issued;
(b) has priority as against all parties having claims of any kind in tort, contract, or otherwise
against the district; and
(c) has priority based on the time of the creation of the pledge unless otherwise provided in
the security agreement.
(6) Bonds of the district may be issued and sold in compliance with Title 11, Chapter 14,
Utah Municipal Bond Act, and Title 11, Chapter 27, Utah Refunding Bond Act, as applicable, and
may be in the form and denominations and have the provisions and details as are permitted [
interests in the bonds may be issued, executed, authenticated, registered, transferred, exchanged, and
otherwise made to comply with Title 15, Chapter 7, Registered Public Obligations Act, or any other
statute relating to the registration of bonds enacted to meet the requirements of Section 149(a) of the
Internal Revenue Code of 1986, or any similar or successor federal law, and applicable regulations.
Bonds may be issued under the authority of this section at one time or from time to time. If more
than one issue or series of bonds is delivered under the authority of this section, the bonds of the
respective issue or series shall have the priorities of payment as provided in the proceedings
authorizing the bonds.
bonds may contain covenants with the future holders of the bonds as to:
(a) the management and operation of the facilities of the irrigation district, including the
facilities acquired, constructed, improved, enlarged, or operated pursuant to this section;
(b) the imposition and collection of [
(c) the disposition of the revenues;
(d) the issuance of future bonds and the creation of future liens and encumbrances against
these facilities and the revenues thereof;
(e) the carrying of insurance on these facilities and the disposition of the proceeds of
(f) the sale, disposal, or alienation of these facilities; and
(g) other pertinent matters deemed necessary or proper by the board to assure the
merchantability of the bonds. These covenants and agreements may not be inconsistent with this
(8) The district may undertake in the resolution, indenture, agreement, or other document
authorizing bonds to make the revenues of the facilities sufficient to pay the expense of their
operation and maintenance, and may undertake to make the revenues or net revenues of the facilities
sufficient to produce in each year an amount in excess of actual requirements for principal of and
interest on the bonds in that year as the board may consider necessary to assure the highest
marketability of the bonds.
(9) Any resolution, indenture, agreement, or other document authorizing bonds may provide
that the bonds will recite that they are issued under authority of this part. The recital will
conclusively import full compliance with all of the provisions of this part, and all bonds issued
containing the recital will be incontestable for any cause whatsoever after their delivery for value.
(10) When a district has issued bonds and pledged for the payment thereof any revenues of
use charges in that amount and at those rates which will be fully sufficient at all times to pay the
expenses of operating and maintaining these facilities, to provide a special fund sufficient to assure
the prompt payment of principal of and interest on the bonds as principal and interest fall due, and
to provide funds for reserves and contingencies and for a depreciation fund for repairs, extensions,
and improvements to these facilities as considered necessary to assure adequate and efficient service,
all as may be required by the bond resolution. No board or commission other than the board of
trustees of the district has authority over or is required to approve the making or fixing of [
(11) (a) If an irrigation district board determines that the interests of the district require the
issuance of bonds or the making of a contract with the United States, the board will, except as
provided in Subsection (13), adopt a resolution directing that an election be held to determine
whether bonds may be issued or a contract with the United States may be entered into for the
purposes specified in the resolution.
(b) The following are subject to the conditions provided in Title 11, Chapter 14, Utah
Municipal Bond Act:
(i) adoption of the resolution calling the election;
(ii) giving notice of the election;
(iii) conduct of the election;
(iv) determination of voters' qualifications; and
(v) canvassing of election results.
(12) In designating the voting places for purposes of the election, the board may treat the
entire district as a single precinct or divide the district into precincts.
(13) No election is required under this section prior to the issuance of bonds or the making
of a contract with the United States except as otherwise required by the constitution or Subsection
(14) Notwithstanding anything to the contrary in this section or Title 11, Chapter 14, Utah
Municipal Bond Act, no irrigation district may issue bonds, other than bonds issued to refund
outstanding bonds, or enter into a contract with the United States unless:
(a) the issuance of the bonds or the making of the contract has been approved at an election
called and held as provided in this section; or
(b) the board of trustees:
(i) provides notice of a public hearing on whether to issue the bonds or enter into the contract
(A) publishing notice in a newspaper published in or of general circulation in the district at
least seven days prior to the public hearing which sets forth:
(I) the maximum principal amount and the purpose of the proposed bond issue or contract;
(II) the date, time, and place of the public hearing;
(III) when and where written comments regarding the bonds or the contract may be filed; and
(IV) whether the district reasonably expects that paying amounts due on the bonds or under
the contract will result in a substantial increase in use charges; and
(B) if the district reasonably expects that paying amounts due on the bonds or under the
contract will increase use charges by more than $15 per connection per year, mailing notice to every
household containing a qualified voter who is eligible to vote on the bonds or the contract, at least
seven days but not more than 30 days before the public hearing, on a minimum three-inch by
five-inch postcard or a voter information pamphlet prepared by the governing body that includes the
information required by Subsection (14)(b)(i)(A);
(ii) holds a public hearing on the date and at the time and place specified in the notice of
public hearing, provided that the hearing may be adjourned from time to time to a fixed future time
(iii) considers at the public hearing all comments that have been filed or stated at the hearing
relating to the bonds or the contract;
(iv) after considering all comments received, adopts a resolution during or after the meeting
at which the public hearing is held, declaring the intention of the board of trustees to issue bonds or
enter into the contract; and
(v) directs that notice of the district's intention to issue bonds or enter into the contract be
published once in a newspaper of general circulation in the district stating:
(A) the maximum principal amount and purpose of the proposed bond issue or contract;
(B) when and where petitions may be filed requesting the calling of an election to determine
whether the bonds or the contract should be authorized; and
(C) when and where a form of petition requesting the calling of an election may be obtained
from the district.
(15) If, within 30 days after publication of the notice of intention, a petition is filed with the
secretary, signed by not less than 5% of the qualified electors of the district, requesting that an
election be called to authorize the contract or the bonds, then the board shall call and hold an election
as provided in this section before the bonds are issued or the contract is entered into.
(16) If no petition is filed, or if the number of signatures filed within the 30-day period is
less than the required number, the board of trustees may proceed to issue the bonds or enter into the
Section 6. Section 17A-2-717.5 is enacted to read:
17A-2-717.5. Validation of previous bond issues.
All bonds issued in accordance with the provisions of this part as they existed prior to May
6, 2002, are valid and shall be governed by the provisions of this part as they existed at the time of
the issuance of the bonds.
Section 7. Section 17A-2-718 is amended to read:
17A-2-718. Trustees to determine amounts required for current years -- Establishment
of sinking funds and reserve funds -- Certification of amounts.
The board of trustees shall, on or before July 1st of each year, determine the amount of
money required for the current year[
of any bonds, and warrants, and all payments due or to become due to the United States under any
contract between the district and the United States accompanying which bonds of the district have
not been deposited with the United States as in Section 17A-2-711 , and all operation and
maintenance or rental payments to be made by the district to the United States under the provisions
of any such contract between the United States and the district, and all water payments and all
operation and maintenance or rental payments to be made by the district to other entities under the
provisions of any contract between the district and other entities, and meet the cost of any
construction or reconstruction proposed to be covered by [
maintenance, operating and current expenses, including the payment of assessments upon stock of
irrigation, canal, or reservoir companies owned by the district, and the amount necessary to meet the
obligations of local improvement districts, and establish, keep, and maintain sinking funds sufficient
to assure the prompt payment of principal of and interest on the bonds as principal and interest fall
due, and reserve funds at the level required by any contract between the district and the United
States, and other entities; and establish, keep and maintain adequate reserve funds for depreciation,
repairs, extensions and improvements to the works necessary to assure adequate and efficient service,
as determined by the board, and certify to the county legislative body of the county in which the
office of the district is located, those amounts together with such additional amount as may be
necessary to meet any deficiencies theretofore incurred, and if so provided in case of contract with
the United States a further amount to cover any deficit in payments due the United States thereunder
which may have resulted from delinquent [
Section 8. Section 17A-2-719.5 is enacted to read:
17A-2-719.5. Use charges -- Duty of county assessors.
(1) The board of trustees of the district may impose use charges upon the customers or lands
served by the district. The use charges may be based upon the amount of water or electricity
received from the district, the area of the land served, or any other reasonable basis determined by
the board of trustees. In determining the use charges to be imposed, the board of trustees may
consider the cost of maintaining and operating the district, the cost of acquiring, purchasing,
constructing, improving, or enlarging district facilities, the cost of issuing and paying debt service
on bonds of the district, and the cost of providing for necessary reserves.
(2) If the district imposes use charges based upon the size of the land served, the district shall
notify the county assessor of the charge to be imposed per unit of land or portion thereof served by
the district. The county assessor of each county embracing the whole or a part of any irrigation
district shall, after determining the size of each parcel of property served by the district, calculate the
(3) The board of trustees of the district may divide the district into units and apply different
use charges to the various units.
(4) The use charges imposed under this section may not be calculated on the basis of the
value of property and do not constitute ad valorem property taxes or other taxes.
Section 9. Section 17A-2-721 is amended to read:
17A-2-721. Duties of county treasurer -- Liability -- Accounts to be kept and methods
of payments -- Deposit of funds.
(1) The county treasurer of each county in which any irrigation district is located shall be
liable upon the treasurer's official bond and to indictment and criminal prosecution for malfeasance,
or failure to perform any duty as county treasurer as provided by law in other cases as county
(2) If the district imposes use charges based upon the size of land served pursuant to
Subsection 17A-2-719.5 (1), the treasurer shall collect, receive, and receipt for all moneys belonging
to the district arising through [
(3) The county treasurer of each county in which any irrigation district is located shall, in
whole or in part, furnish each landowner under the district within the county with the valuation
notice for general taxes, and a separate notice of [
and of the day fixed by the board of equalization for hearing complaints, and collect and receipt for
receipted for separately from taxes upon real estate for county purposes. [
(4) The county treasurer of each county comprising a portion of the irrigation district shall,
on the first Monday of each month, remit to the district all [
monies previously collected or received on account of the district. The funds so remitted shall be
deposited to the credit of the district by the [
Section 10. Section 17A-2-722 is amended to read:
17A-2-722. Lien for unpaid use charges -- Sale of land for delinquent use charges --
Any unpaid and delinquent use charges will be certified by the secretary of the district to the
treasurer or assessor of the county in which the delinquent premises are located. The amount of the
delinquent use charges, together with interest and penalties, will immediately upon the certification
become a lien on the delinquent premises on a parity with and collectible at the same time and in the
same manner as general county taxes are a lien on the premises and are collectible. All methods of
enforcement available for the collection of general county taxes, including sale of the delinquent
premises, are available and may be used in the collection of the delinquent use charges. At any time
after the sale of property resulting from delinquent use charges has closed and before the time for
redemption has expired, the county treasurer is authorized and required to sell and assign the interest
of the county in any of the real estate sold to the county for delinquency of district [
charges to the district itself, or to any person or corporation holding a recorded mortgage or other
lien against such real estate, or to any holder of bonds issued by such district, or to any person who
will pay the [
period of redemption from sale for [
In all respects, [
may retain costs and expenses provided by law for the advertisement, sale, and redemption of
Section 11. Section 17A-2-723 is amended to read:
17A-2-723. Construction -- Notice -- Awarding contracts -- Contractor's bonds.
(1) As used in this section, the word "sealed" does not preclude acceptance of electronically
sealed and submitted bids or proposals in addition to bids or proposals manually sealed and
(2) After adopting a plan for the construction of [
board of trustees shall give notice thereof by publication in the county in which the principal office
of the district is located at least once not less than ten days prior to the expiration of the period in
which bids shall be received, and the other notice as they consider advisable calling for bids for the
furnishing of material or construction of the work or any portion thereof.
(3) If less than the whole work is advertised, then the portion so advertised must be
particularly described in the notice; the notice shall set forth that plans and specifications, or
specifications alone where there are no plans, may be seen at the office of the board, and that the
board will receive sealed proposals therefor, and that the contract will be let to the lowest responsible
bidder, stating the time and the place for opening the proposal which at that time and place shall be
opened in public, and as soon as convenient thereafter the board shall let the work, either in portions
or as a whole, or award and order for materials, to the lowest responsible bidder, or it may reject any
or all bids, and thereupon readvertise for proposals, or proceed to construct the work under its own
(4) Contracts for the purchase of material shall be awarded to the lowest responsible bidder
unless all bids are rejected or the board determines to readvertise for bids.
(5) The person or persons to whom a contract may be awarded shall enter into a bond, with
good and sufficient sureties, to be approved by the board, payable to the district for not less than 25%
of the amount of the contract price and conditioned for the faithful performance of the contract, but
no such bond need be required by the board where materials are contracted for the bond requirement.
(6) The work shall be done under the direction and to the satisfaction of the engineer in
charge, and be approved by the board, and shall be paid for out of the general fund account;
provided, that the provisions of this section shall not apply in the case of any contract between the
district and the United States.
(7) Nothing herein contained shall be construed to prohibit the district from purchasing
material or doing any work required by it without advertising for bids and without the letting of a
contract where the estimated cost of the work or the material does not exceed $30,000 or in cases
of emergencies the board of trustees may let contracts for the work required in the emergency
without advertising for bids or may cause the work to be done by the district itself.
Section 12. Section 17A-2-724 is amended to read:
17A-2-724. Claims -- Manner of payment -- Registry of warrants -- Emergency loans.
No claims shall be paid by the district until the same shall have been allowed by the board,
and then only upon warrants signed by the chair, or other trustee authorized by the board, and
countersigned by the secretary, which warrants shall state the date authorized by the board and for
what purpose; and if the district has not sufficient money on hand to pay such warrant when it is
presented for payment, the secretary or treasurer of the district shall endorse thereon "Not paid for
want of funds; this warrant draws interest from date of presentation at 6% per annum," and endorse
thereon the date when so presented, over the secretary or treasurer's signature, and from the time of
such presentation until paid such warrant shall draw interest at the rate of 6% per annum; provided,
when there is more than the sum of $100 in the hands of the district it shall be applied upon the
warrant. All claims against the district shall be verified as required in the case of claims filed against
counties in this state, and the secretary of the district is hereby authorized and empowered to
administer oaths to the parties verifying the claims, as the county clerk or a notary public might do.
The district shall keep a register in which shall be entered each warrant, to whom payable, the date
of the presentation for payment, the date of payment, and the amount paid in redemption thereof, and
all warrants shall be paid in the order of their presentation for payment to the district. All warrants
shall be drawn payable to the claimant or bearer in the same manner as county warrants. The district
is also authorized to pay claims against the district by checks signed by the chair, or other trustee
authorized by the board, and countersigned by the [
in anticipation of the collection of [
by borrowing money or otherwise, not exceeding the [
evidence of such indebtedness may issue negotiable notes of the district, payable in not more than
one year from date thereof. In case of a break in the reservoir or canal or other disaster, the board
of trustees is authorized to borrow money and make the necessary repairs.
Section 13. Section 17A-2-726 is amended to read:
17A-2-726. Compensation of officials -- Prohibitions -- Penalties.
The salary of the secretary, manager, engineer, and other officers and employees shall be
fixed by the board of trustees. No director or any officer named in this part shall, in any manner be
interested, directly or indirectly, in any contract awarded or to be awarded by the board, or in the
profits to be derived therefrom; nor shall receive any bonds, gratuity, or bribe, and for any violation
of this provision, such officer shall be considered guilty of a felony, and upon conviction therefor
he shall forfeit office, and be punished by a fine not exceeding $5,000, or by imprisonment in the
penitentiary for a term of not less than one or more than five years. The violation of this provision
will not cause any bonds held by third persons or contracts with third persons related to bonds to be
invalid or unenforceable.
Section 14. Section 17A-2-754 is amended to read:
17A-2-754. Transfer of water rights -- Notice to landowners.
The board of trustees of any irrigation district[
the district to any irrigation company; provided, however, that no such sale, transfer, or conveyance
shall be made in violation of any agreement with the bondholders or other creditors and until notice
of the intention of the board to make the same [
17A-2-751 (2), and mailed to each landowner in the district at his last known address at least 30 days
prior to the expiration of the time fixed for protest, and provided further that no such sale, transfer,
or conveyance shall be made if within 30 days from the last publication of such notice the owners
of 1/3 of the acre-feet of water allotted in the district file with the board their written protest against
such sale, transfer, or conveyance.
Section 15. Section 17A-2-755 is amended to read:
17A-2-755. Districts declared bodies corporate -- Tax exemption of bonds and
securities except corporate franchise tax.
(1) Irrigation districts organized under this part and all irrigation districts heretofore
organized under the laws of this state are hereby declared to be bodies corporate and politic, and the
bonds and other securities of such corporations are exempt from taxation within this state, except
for the corporate franchise tax.
(2) No district created under this part is a municipal corporation within the meaning of
Article XIV, Section 4, Utah Constitution, or a political subdivision of any county or municipality.
Section 16. Section 17A-2-756 is amended to read:
17A-2-756. Inclusion of state lands.
(1) Lands belonging to the state not under contract of sale may be included in any irrigation
district upon petition by the state entity responsible for the administration of the affected lands for
the inclusion of those lands.
(2) No such state lands included within any legally organized irrigation district [
ever be assessed, nor [
collection of assessments [
(3) The entity responsible for the administration of the affected lands and the state engineer
shall make a thorough examination as to the benefits to accrue to these lands by reason of the
inclusion of the lands in the irrigation district, and by reason of the acquiring of water rights for the
(4) (a) The entity responsible for the administration of the affected lands may enter into
contract with the board of trustees of the irrigation district, specifying by legal subdivisions the land
benefitted and the amount of benefit to accrue to each tract of land.
(b) The contract shall provide that annual payments shall be made to the district, to be
applied on the cost of constructing the irrigation works for the district, until the full amount of the
benefit is paid.
(c) The entity responsible for the administration of the affected lands has the option to pay
the full amount of the contract at any time, upon any or all of the legal subdivisions.
Section 17. Section 17A-2-761 is amended to read:
17A-2-761. Validation of the creation and organization of irrigation districts and of
All proceedings that have been adopted and actions taken before [
1, 2002, under authority of this part, purporting to create any irrigation district or purporting to
provide for the inclusion of any additional area in any irrigation district, including all petitions filed
and all notices given, published, and mailed in connection with any such creation and any inclusion,
are validated, ratified, and confirmed, notwithstanding any failure to comply with any one or more
pertinent statutory provisions, and each irrigation district so created or enlarged is declared to be a
validly created and existing district. All proceedings and actions taken with respect to the
appointment, election, and organization of a board of trustees and officers for each irrigation district
are validated, ratified, and confirmed and each board of trustees is declared to be the de facto and
de jure governing body of its respective irrigation district.
Section 18. Repealer.
This act repeals:
Section 17A-2-701, Certain exemptions -- Entrymen.
Section 17A-2-714, Judicial notice -- Presumptions as to organization.
Section 17A-2-715, Issuance of bonds -- Special election -- Contract with the United
States -- Additional bonding -- Validation of previous issues.
Section 17A-2-716, Sale of bonds -- Use of funds.
Section 17A-2-717, Assessments upon real property -- Payment of bonds.
Section 17A-2-719, Duty of county assessors -- Basis of valuation -- Uniformity --
Returns -- Apportionment in case of contracts with United States.
Section 17A-2-720, Fixing tax levy -- Covering delinquencies -- All taxes special.
Section 17A-2-725, Tolls, charges, assessments.
Section 17A-2-727, Debt limit -- Interest on warrants.
Section 17A-2-768, Effect of repeals construed -- Procedure against defaulting members.
[Bill Documents][Bills Directory]