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S.B. 18

             1     

UNIFORM WITHDRAWAL PROCEDURES FOR

             2     
SPECIAL DISTRICTS

             3     
2002 GENERAL SESSION

             4     
STATE OF UTAH

             5     
Sponsor: David L. Gladwell

             6      This act modifies the Local Districts and Special Districts Codes by repealing existing
             7      procedures for withdrawals from special or local districts and creating a uniform procedure
             8      for withdrawal. The act provides for definitions. The act establishes the requirements for
             9      petitions for withdrawal from a local district. The act creates a streamlined process for
             10      unopposed withdrawals. The act provides a process for the certification of petitions and for
             11      notice and public hearings. The act provides a process for a local district and a municipality
             12      to jointly adjust the boundaries of a local district. The act sets out the criteria for a local
             13      district board to approve or reject a proposed withdrawal and outlines the procedures for
             14      allocating assets and liabilities upon withdrawal. The act provides for the continuation of
             15      tax levies in withdrawn areas and other protections for local district bonds. The act allows
             16      for judicial review of the decision of the local district board. The act makes other technical
             17      changes.
             18      This act affects sections of Utah Code Annotated 1953 as follows:
             19      AMENDS:
             20          17A-2-101.3, as enacted by Chapter 90, Laws of Utah 2001
             21          17A-2-301, as last amended by Chapter 90, Laws of Utah 2001
             22          17A-2-405, as last amended by Chapter 90, Laws of Utah 2001
             23          17A-2-418, as last amended by Chapter 63, Laws of Utah 2000
             24      ENACTS:
             25          17B-2-601, Utah Code Annotated 1953
             26          17B-2-602, Utah Code Annotated 1953
             27          17B-2-603, Utah Code Annotated 1953


             28          17B-2-604, Utah Code Annotated 1953
             29          17B-2-605, Utah Code Annotated 1953
             30          17B-2-606, Utah Code Annotated 1953
             31          17B-2-607, Utah Code Annotated 1953
             32          17B-2-608, Utah Code Annotated 1953
             33          17B-2-609, Utah Code Annotated 1953
             34          17B-2-610, Utah Code Annotated 1953
             35          17B-2-611, Utah Code Annotated 1953
             36      REPEALS:
             37          17A-2-334, as last amended by Chapter 361, Laws of Utah 1998
             38          17A-2-335, as renumbered and amended by Chapter 186, Laws of Utah 1990
             39          17A-2-336, as renumbered and amended by Chapter 186, Laws of Utah 1990
             40          17A-2-337, as last amended by Chapter 227, Laws of Utah 1993
             41          17A-2-338, as renumbered and amended by Chapter 186, Laws of Utah 1990
             42          17A-2-340, as enacted by Chapter 361, Laws of Utah 1998
             43          17A-2-740, as last amended by Chapter 254, Laws of Utah 2000
             44          17A-2-741, as last amended by Chapter 90, Laws of Utah 2001
             45          17A-2-742, as last amended by Chapter 254, Laws of Utah 2000
             46          17A-2-743, as last amended by Chapter 254, Laws of Utah 2000
             47          17A-2-744, as last amended by Chapter 254, Laws of Utah 2000
             48          17A-2-842, as last amended by Chapter 90, Laws of Utah 2001
             49          17A-2-1049, as last amended by Chapter 90, Laws of Utah 2001
             50          17A-2-1438, as repealed and reenacted by Chapter 67 and renumbered and amended by
             51      Chapter 186, Laws of Utah 1990
             52          17A-2-1450, as enacted by Chapter 67, Laws of Utah 1990
             53          17A-2-1451, as enacted by Chapter 67, Laws of Utah 1990
             54          17A-2-1452, as enacted by Chapter 67, Laws of Utah 1990
             55          17A-2-1453, as enacted by Chapter 67, Laws of Utah 1990
             56          17A-2-1454, as last amended by Chapter 254, Laws of Utah 2000
             57          17A-2-1809, as enacted by Chapter 216, Laws of Utah 1995
             58          17A-2-1810, as enacted by Chapter 216, Laws of Utah 1995


             59          17A-2-1811, as enacted by Chapter 216, Laws of Utah 1995
             60          17A-2-1812, as enacted by Chapter 216, Laws of Utah 1995
             61          17A-2-1813, as enacted by Chapter 216, Laws of Utah 1995
             62          17A-2-1814, as enacted by Chapter 216, Laws of Utah 1995
             63      Be it enacted by the Legislature of the state of Utah:
             64          Section 1. Section 17A-2-101.3 is amended to read:
             65           17A-2-101.3. Annexation, dissolution, and withdrawal provisions for certain
             66      independent special districts.
             67          (1) Except as provided in Subsection (2), for each type of independent special district
             68      listed in Subsection 17A-2-101 (1) and for a drainage district under Part 5, Drainage Districts, a fire
             69      protection district under Part 6, Fire Protection Districts, and a regional service area under Part 18,
             70      Regional Service Area Act[, on or after June 1, 2001]:
             71          (a) on or after June 1, 2001:
             72          [(a)] (i) annexation of additional territory to the district or adjustment of boundaries shared
             73      by two or more of those types of independent special districts shall be governed by Title 17B,
             74      Chapter 2, Part 5, Annexation, to the same extent as if the independent special district were a local
             75      district under Title 17B, Chapter 2, Local Districts; and
             76          [(b)] (ii) dissolution of a district shall be governed by Title 17B, Chapter 2, Part 7,
             77      Dissolution, to the same extent as if the independent special district were a local district under Title
             78      17B, Chapter 2, Local Districts[.]; and
             79          (b) on or after June 1, 2002, withdrawal from a district shall be governed by Title 17B,
             80      Chapter 2, Part 6, Withdrawal, to the same extent as if the independent special district were a local
             81      district under Title 17B, Chapter 2, Local Districts.
             82          (2) (a) An annexation, boundary adjustment, or dissolution proceeding begun before and
             83      still pending on June 1, 2001 for a type of independent special district referred to in Subsection (1)
             84      is not subject to Subsection (1)(a) [or (b)] but continues after that date to be governed by the
             85      statutory provisions in effect immediately before that date.
             86          (b) A withdrawal proceeding begun before and still pending on June 1, 2002 for a type of
             87      independent special district referred to in Subsection (1) is not subject to Subsection (1)(b) but
             88      continues after that date to be governed by the statutory provisions in effect immediately before
             89      that date.


             90          Section 2. Section 17A-2-301 is amended to read:
             91           17A-2-301. Improvement district authority -- Area of a district -- County legislative
             92      body may act as board of certain districts.
             93          (1) (a) An improvement district may acquire through construction, purchase, gift, or
             94      condemnation, or any combination of these methods, and may operate all or any part of:
             95          (i) a system for the supply, treatment, and distribution of water;
             96          (ii) a system for the collection, treatment, and disposition of sewage;
             97          (iii) a system for the collection, retention, and disposition of storm and flood waters;
             98          (iv) a system for the generation, distribution, and sale of electricity; and
             99          (v) a system for the transmission of natural or manufactured gas if the system is:
             100          (A) connected to a gas plant, as defined in Section 54-2-1 , of a gas corporation, as defined
             101      in Section 54-2-1 , regulated under Section 54-4-1 ; and
             102          (B) to be used to facilitate gas utility service within the district if the gas utility service is
             103      not available within the district prior to the acquisition or construction of the system.
             104          (b) The new gas utility service under Subsection (1)(a)(v)(B) shall be provided by a gas
             105      corporation regulated under Section 54-4-1 and not by the district.
             106          (2) (a) (i) Subject to Subsection (2)(a)(ii), the area of a district under this part may include
             107      all or part of any county or counties, including all or any part of any incorporated municipalities,
             108      other incorporated areas, and unincorporated areas, as the needs of the inhabitants of the proposed
             109      districts may appear.
             110          (ii) Notwithstanding Subsection (2)(a)(i), the addition of any territory to a district under
             111      this part shall, on and after June 1, 2001 and as provided in Subsection 17A-2-101.3 (1)(a)(i), be
             112      governed by Title 17B, Chapter 2, Part 5, Annexation.
             113          (b) The boundaries of a district authorized under this part do not need to be contiguous.
             114          (3) If an improvement district authorized under this part was created solely for the purpose
             115      of acquiring a system for the collection, retention, or disposition of storm and flood waters, the
             116      county legislative body that created the district may, in its discretion and despite anything to the
             117      contrary in Section 17A-2-305 , act as the board of trustees of the district for so long as it considers
             118      desirable.
             119          Section 3. Section 17A-2-405 is amended to read:
             120           17A-2-405. Area in county service area -- Overlapping of areas.


             121          (1) (a) The boundaries of a county service area may include:
             122          (i) all or part of any unincorporated area of one county; and
             123          (ii) territory located within a municipality.
             124          (b) Notwithstanding Subsection (1)(a)(i), the addition of any territory to a county service
             125      area under this part shall, on and after June 1, 2001 and as provided in Subsection
             126      17A-2-101.3 (1)(a), be governed by Title 17B, Chapter 2, Part 5, Annexation.
             127          (2) County service areas may overlap if the service area which overlaps is entirely within
             128      the boundaries of the service area which it overlaps.
             129          (3) (a) Except as provided in Subsection (3)(b), not more than two service areas may
             130      occupy the same area in the county.
             131          (b) Notwithstanding Subsection (3)(a), three service areas may occupy the same area in
             132      the county if one of the overlapping service areas is countywide.
             133          (4) No overlapping service areas may perform the same services.
             134          (5) All parts of a county service area need not be contiguous.
             135          Section 4. Section 17A-2-418 is amended to read:
             136           17A-2-418. Annexation or incorporation of all or part of county service area into city
             137      or town.
             138          [(1) (a)] If all or any portion of a county service area is annexed into an incorporated city
             139      or town[, the annexed] or included within a newly incorporated city or town, that territory may not
             140      be excluded from the county service area unless[:] the requirements of Title 17B, Chapter 2, Part
             141      6, Withdrawal, have been met.
             142          [(i) a petition is filed under Subsection (1)(b) with the governing body of the city or town
             143      requesting that the territory described in the petition be excluded from the service area; or]
             144          [(ii) for a county service area that is not located within a county of the first class, the
             145      county service area board of trustees adopts a resolution excluding the annexed territory from the
             146      county service area.]
             147          [(b) (i) Each petition under Subsection (1)(a)(i) shall be signed by:]
             148          [(A) property owners owning taxable property in the territory to be excluded from the
             149      service area that has a taxable value in excess of 40% of the taxable value of all taxable property
             150      within the area to be excluded, according to the last assessment roll for county taxes completed
             151      prior to the date of filing of the petition; or]


             152          [(B) 25% of the registered voters residing within the territory to be excluded.]
             153          [(ii) Upon receipt and verification of the validity of a petition under Subsection (1)(a)(i),
             154      the governing body of the city or town shall, at the next general election, place the following
             155      proposition before the qualified voters residing within that portion of the city or town lying within
             156      the boundaries of the county service area as described in the petition: "Shall the territory lying
             157      within (name of city or town) which is also within the boundaries of (name of county service area)
             158      be excluded from (name of county service area)?"]
             159          [(iii) If a majority of the qualified voters cast their ballots in favor of excluding the
             160      territory from the county service area, the territory within the county service area that is included
             161      within the city or town is excluded from the county service area, effective as of the date of
             162      election.]
             163          [(iv) If a majority of the qualified voters cast their ballots against excluding the territory
             164      lying within the city or town from the county service area, the territory shall remain within the
             165      service area.]
             166          [(c) (i) The board of trustees of a county service area that is not located in a county of the
             167      first class shall provide advance notice of the board's intent to adopt an exclusion resolution under
             168      Subsection (1)(a)(ii) by:]
             169          [(A) at least 45 days before adopting a resolution, giving written notice to the legislative
             170      body of the municipality that annexed the county service area territory proposed to be excluded;
             171      and]
             172          [(B) publishing a notice in a newspaper of general circulation within the county service
             173      area at least once a week for two consecutive weeks, the last publication being no more than ten
             174      days before adopting a resolution.]
             175          [(ii) Upon adoption of a resolution under Subsection (1)(a)(ii) excluding annexed territory
             176      from the county service area, the territory within the county service area included within the
             177      annexing municipality is excluded from the county service area.]
             178          [(2) (a) If all or any portion of a county service area is included within a newly
             179      incorporated city or town, that territory may not be excluded from the county service area unless:]
             180          [(i) a petition is filed under Subsection (2)(b) with the governing body of the city or town,
             181      requesting that the territory be excluded from the county service area; or]
             182          [(ii) for a county service area that is not located within a county of the first class, the


             183      county service area board of trustees adopts a resolution excluding the territory from the county
             184      service area.]
             185          [(b) (i) Each petition under Subsection (2)(a)(i) shall be signed by:]
             186          [(A) owners of taxable property in the territory to be excluded from the service area that
             187      has a taxable value in excess of 40% of the taxable value of all taxable property within the area to
             188      be excluded, according to the last assessment roll for county taxes completed prior to the date of
             189      filing of the petition; or]
             190          [(B) by 25% of the registered voters residing within the territory to be excluded.]
             191          [(ii) Upon receipt and verification of the validity of the petition, the governing body of the
             192      city or town shall, at the next general election, place the following proposition before the qualified
             193      voters residing within that portion of the city or town lying within the boundaries of the county
             194      service area: "Shall all territory lying within (name of city or town) which is also within the
             195      boundaries of (name of county service area) be excluded from (name of county service area)?"]
             196          [(iii) If a majority of the qualified voters cast their ballots in favor of excluding the
             197      territory from the county service area, the territory within the county service area that is included
             198      within the city or town shall be excluded from the county service area, effective as of the date of
             199      the election.]
             200          [(iv) If a majority of the qualified voters cast their ballots against excluding the territory
             201      lying within the city or town from the county service area, the territory shall remain within the
             202      county service area.]
             203          [(c) (i) The board of trustees of a county service area that is not located in a county of the
             204      first class shall provide advance notice of the board's intent to adopt an exclusion resolution under
             205      Subsection (2)(a)(ii) by:]
             206          [(A) at least 45 days before adopting a resolution, giving written notice to the legislative
             207      body of the municipality whose incorporation included the county service area territory proposed
             208      to be excluded; and]
             209          [(B) publishing a notice in a newspaper of general circulation within the county service
             210      area at least once a week for two consecutive weeks, the last publication being no more than ten
             211      days before adopting a resolution.]
             212          [(ii) Upon adoption of a resolution under Subsection (1)(a)(ii) excluding territory from the
             213      county service area, the territory within the county service area included within the municipality


             214      is excluded from the county service area.]
             215          [(3) (a) For purposes of this section, "unencumbered funds" means the sums of money,
             216      uncollected taxes, and other uncollected accounts due a county service area, in excess of an amount
             217      sufficient to pay all claims.]
             218          [(b) When territory is excluded from a county service area, all unencumbered funds
             219      standing to the credit of the county service area upon the date of the exclusion shall be divided
             220      between the incorporated area and the county service area in proportion to the taxable value of the
             221      taxable property of the territory excluded and the portion remaining within the county service area
             222      if the incorporated area within which the excluded area is located:]
             223          [(i) undertakes to provide the services previously provided by the service area; and]
             224          [(ii) assumes a proportionate share of the debt, both bonded and otherwise, of the service
             225      area.]
             226          [(c) The outstanding debts of the service area shall be divided between the incorporated
             227      area and the service area based upon the same formula and same proportion specified in Subsection
             228      (3)(b).]
             229          [(d) (i) If, at the time of the exclusion of any territory from a county service area, the
             230      county service area has outstanding indebtedness payable from taxes, the exclusion shall relieve
             231      the excluded territory from liability for the payment of taxes for any indebtedness except as
             232      specified in this Subsection (3)(d).]
             233          [(ii) The excluded area may be taxed to pay voted indebtedness existing at the time of
             234      exclusion, but only to the extent, and only in the years where, it is necessary to levy that tax in the
             235      excluded area in order to forestall or prevent a default in the payment of principal and interest on
             236      that indebtedness.]
             237          [(iii) If the county legislative body levies those taxes, the county treasurer shall collect
             238      them as other county taxes are collected.]
             239          [(4) If the area annexed into an incorporated area and excluded from the service area
             240      encompasses service area facilities, the county service area shall continue to own and operate those
             241      facilities so that the service area's ability to provide services and facilities to the residents and
             242      occupants of the service area is unabated and undiminished.]
             243          Section 5. Section 17B-2-601 is enacted to read:
             244     
Part 6. Withdrawal


             245          17B-2-601. Withdrawal of area from local district -- Definitions.
             246          (1) An area within the boundaries of a local district may be withdrawn from the local
             247      district as provided in this part.
             248          (2) In addition to those definitions in Section 17B-2-101 , as used in this part, "receiving
             249      entity" means an entity that will, following a withdrawal, provide to the withdrawn area the service
             250      previously provided by the local district.
             251          Section 6. Section 17B-2-602 is enacted to read:
             252          17B-2-602. Withdrawal or boundary adjustment with municipal approval.
             253          (1) A municipality and a local district whose boundaries adjoin or overlap may adjust the
             254      boundary of the local district to include more or less of the municipality in the local district by
             255      following the same procedural requirements as set forth in Section 17B-2-516 for boundary
             256      adjustments between adjoining local districts.
             257          (2) After a boundary adjustment under Subsection (1) is complete, the local district shall
             258      provide the same service to any area added to the local district as provided to other areas within
             259      the local district and the municipality shall provide the same service that the local district
             260      previously provided to any area withdrawn from the local district.
             261          (3) No area within a municipality may be added to the area of a local district under this
             262      section if the area is part of a local district that provides the same wholesale or retail service as the
             263      first local district.
             264          Section 7. Section 17B-2-603 is enacted to read:
             265          17B-2-603. Initiation of withdrawal process -- Notice of petition.
             266          (1) The process to withdraw an area from a local district may be initiated:
             267          (a) for a local district funded predominantly by revenues from property taxes or service
             268      charges other than those based upon acre-feet of water:
             269          (i) by a petition signed by the owners of private real property that:
             270          (A) is located within the area proposed to be withdrawn;
             271          (B) covers at least 51% of the total private land within the area proposed to be withdrawn;
             272      and
             273          (C) is equal in taxable value to at least 51% of the taxable value of all private real property
             274      within the area proposed to be withdrawn;
             275          (ii) by a petition signed by registered voters residing within the area proposed to be


             276      withdrawn equal in number to at least 67% of the number of votes cast in the same area for the
             277      office of governor at the last regular general election before the filing of the petition;
             278          (iii) by a resolution adopted by the board of trustees of the local district in which the area
             279      proposed to be withdrawn is located, which:
             280          (A) states the reasons for withdrawal; and
             281          (B) is accompanied by a general description of the area proposed to be withdrawn; or
             282          (iv) by a resolution to file a petition with the local district to withdraw from the local
             283      district all or a specified portion of the area within a municipality or county, adopted by the
             284      governing body of a municipality that has within its boundaries an area located within the
             285      boundaries of a local district, or by the governing body of a county that has within its boundaries
             286      an area located within the boundaries of a local district that is located in more than one county,
             287      which petition of the governing body shall be filed with the board of trustees only if a written
             288      request to petition the board of trustees to withdraw an area from the local district has been filed
             289      with the governing body of the municipality, or county, and the request has been signed by
             290      registered voters residing within the boundaries of the area proposed for withdrawal equal in
             291      number to at least 51% of the number of votes cast in the same area for the office of governor at
             292      the last regular general election before the filing of the petition;
             293          (b) for a local district whose board of trustees is elected by electors based on the acre-feet
             294      of water allotted to the land owned by the elector:
             295          (i) in the same manner as provided in Subsection (1)(a)(iii) or Subsection (1)(a)(iv); or
             296          (ii) by a petition signed by the owners of at least 67% of the acre-feet of water allotted to
             297      the land proposed to be withdrawn; or
             298          (c) for a local district funded predominantly by revenues other than property taxes, service
             299      charges, or assessments based upon an allotment of acre-feet of water:
             300          (i) in the same manner as provided in Subsection (1)(a)(iii) or Subsection (1)(a)(iv); or
             301          (ii) by a petition signed by the registered voters residing within the entire area proposed
             302      to be withdrawn, which area shall be comprised of an entire unincorporated area within the local
             303      district or an entire municipality within a local district, or a combination thereof, equal in number
             304      to at least 67% of the number of votes cast within the entire area proposed to be withdrawn for the
             305      office of governor at the last regular general election before the filing of the petition.
             306          (2) Prior to soliciting any signatures on a petition under Subsection (1), the sponsors of


             307      the petition shall:
             308          (a) notify the local district board with which the petition is intended to be filed that the
             309      sponsors will be soliciting signatures for a petition; and
             310          (b) mail a copy of the petition to the local district board.
             311          Section 8. Section 17B-2-604 is enacted to read:
             312          17B-2-604. Withdrawal petition requirements.
             313          (1) Each petition under Section 17B-2-603 shall:
             314          (a) indicate the typed or printed name and current address of each owner of acre-feet of
             315      water, property owner, registered voter, or authorized representative of the governing body signing
             316      the petition;
             317          (b) separately group signatures by municipality and, in the case of unincorporated areas,
             318      by county;
             319          (c) if it is a petition signed by the owners of land, the assessment of which is based on
             320      acre-feet of water, indicate the address of the property and the property tax identification parcel
             321      number of the property as to which the owner is signing the request;
             322          (d) designate up to three signers of the petition as sponsors, or in the case of a petition filed
             323      under Subsection 17B-2-603 (1)(a)(iv), designate a governmental representative as a sponsor, and
             324      in each case, designate one sponsor as the contact sponsor with the mailing address and telephone
             325      number of each;
             326          (e) state the reasons for withdrawal; and
             327          (f) when the petition is filed with the local district board of trustees, be accompanied by
             328      a map generally depicting the boundaries of the area proposed to be withdrawn and a legal
             329      description of the area proposed to be withdrawn.
             330          (2) (a) The local district may prepare an itemized list of expenses, other than attorney
             331      expenses, that will necessarily be incurred by the local district in the withdrawal proceeding. The
             332      itemized list of expenses may be submitted to the contact sponsor. If the list of expenses is
             333      submitted to the contact sponsor within 21 days after receipt of the petition, the contact sponsor
             334      on behalf of the petitioners shall be required to pay the expenses to the local district within 90 days
             335      of receipt. Until funds to cover the expenses are delivered to the local district, the district will
             336      have no obligation to proceed with the withdrawal and the time limits on the district stated in this
             337      part will be tolled. If the expenses are not paid within the 90 days, or within 90 days from the


             338      conclusion of any arbitration under Subsection (2)(b), the petition requesting the withdrawal shall
             339      be considered to have been withdrawn.
             340          (b) If there is no agreement between the board of trustees of the local district and the
             341      contact sponsor on the amount of expenses that will necessarily be incurred by the local district
             342      in the withdrawal proceeding, either the board of trustees or the contact sponsor may submit the
             343      matter to binding arbitration in accordance with Title 78, Chapter 31b, Alternative Dispute
             344      Resolution Act; provided that, if the parties cannot agree upon an arbitrator and the rules and
             345      procedures that will control the arbitration, either party may pursue arbitration under Title 78,
             346      Chapter 31a, Utah Arbitration Act.
             347          (3) A signer of a petition may withdraw or, once withdrawn, reinstate the signer's signature
             348      at any time before the public hearing under Section 17B-2-606 by submitting a written withdrawal
             349      or reinstatement with the board of trustees of the local district in which the area proposed to be
             350      withdrawn is located.
             351          (4) If it reasonably appears that, if the withdrawal which is the subject of a petition filed
             352      under Subsection 17B-2-603 (1)(a)(i) or (ii) is granted, it will be necessary for a municipality to
             353      provide to the withdrawn area the service previously supplied by the local district, the board of
             354      trustees of the local district may, within 21 days after receiving the petition, notify the contact
             355      sponsor in writing that, before it will be considered by the board of trustees, the petition must be
             356      presented to and approved by the governing body of the municipality as provided in Subsection
             357      17B-2-603 (1)(a)(iv) before it will be considered by the local district board of trustees. If the notice
             358      is timely given to the contact sponsor, the petition shall be considered to have been withdrawn
             359      until the municipality files a petition with the local district under Subsection 17B-2-603 (1)(a)(iv).
             360          (5) (a) After receiving the notice required by Subsection 17B-2-603 (2), unless specifically
             361      allowed by law, a public entity may not make expenditures from public funds to support or oppose
             362      the gathering of signatures on a petition for withdrawal.
             363          (b) Nothing in this section prohibits a public entity from providing factual information and
             364      analysis regarding a withdrawal petition to the public, so long as the information grants equal
             365      access to both the opponents and proponents of the petition for withdrawal.
             366          (c) Nothing in this section prohibits a public official from speaking, campaigning,
             367      contributing personal monies, or otherwise exercising the public official's constitutional rights.
             368          Section 9. Section 17B-2-605 is enacted to read:


             369          17B-2-605. Withdrawal petition certification -- Amended petition.
             370          (1) Within 30 days after the filing of a petition under Sections 17B-2-603 and 17B-2-604 ,
             371      the board of trustees of the local district in which the area proposed to be withdrawn is located
             372      shall:
             373          (a) with the assistance of officers of the county in which the area proposed to be withdrawn
             374      is located, determine whether the petition meets the requirements of Sections 17B-2-603 and
             375      17B-2-604 ; and
             376          (b) (i) if the petition complies with the requirements set forth in Sections 17B-2-603 and
             377      17B-2-604 , certify the petition and mail or deliver written notification of the certification to the
             378      contact sponsor; or
             379          (ii) if the petition fails to comply with any of the requirements set forth in Sections
             380      17B-2-603 and 17B-2-604 , reject the petition as insufficient and mail or deliver written notification
             381      of the rejection and the reasons for the rejection to the contact sponsor.
             382          (2) (a) If the board rejects the petition under Subsection (1)(b)(ii), the petition may be
             383      amended to correct the deficiencies for which it was rejected and then refiled within 60 days after
             384      notice of the rejection.
             385          (b) A valid signature on a petition that was rejected under Subsection (1)(b)(ii) may be
             386      used toward fulfilling the applicable signature requirement for an amended petition refiled under
             387      Subsection (2)(a).
             388          (3) The board of trustees shall process an amended petition refiled under Subsection (2)(a)
             389      in the same manner as an original petition under Subsection (1). If an amended petition is rejected
             390      for failure to comply with the requirements of Sections 17B-2-603 and 17B-2-604 , the board of
             391      trustees shall issue a final rejection of the petition for insufficiency and mail or deliver written
             392      notice of the final rejection to the contact sponsor.
             393          (4) (a) A signer of a petition for which there has been a final rejection under Subsection
             394      (3) for insufficiency may seek judicial review of the board of trustees' final decision to reject the
             395      petition as insufficient.
             396          (b) Judicial review under Subsection (4)(a) shall be initiated by filing an action in state
             397      district court in the county in which a majority of the area proposed to be withdrawn is located.
             398          (c) The court in which an action is filed under this Subsection (4) may not overturn the
             399      board of trustees' decision to reject the petition unless the court finds that:


             400          (i) the board of trustees' decision was arbitrary or capricious; or
             401          (ii) the petition materially complies with the requirements set forth in Sections 17B-2-603
             402      and 17B-2-604 .
             403          (d) The court may award costs and expenses of an action under this section, including
             404      reasonable attorney's fees, to the prevailing party.
             405          Section 10. Section 17B-2-606 is enacted to read:
             406          17B-2-606. Public hearing -- Quorum of board required to be present.
             407          (1) A public hearing on the proposed withdrawal shall be held by the board of trustees of
             408      a local district that:
             409          (a) certifies a petition under Subsection 17B-2-605 (1)(b)(i) unless the petition was signed
             410      by all of the owners of private land within the area proposed to be withdrawn or all of the
             411      registered voters residing within the area proposed to be withdrawn; or
             412          (b) adopts a resolution under Subsection 17B-2-603 (1)(a)(iii).
             413          (2) The public hearing required by Subsection (1) for a petition certified by the board of
             414      trustees of a local district under Subsection 17B-2-605 (1)(b)(i), other than a petition filed in
             415      accordance with Subsection 17B-2-603 (1)(a)(iv), may be held as an agenda item of a meeting of
             416      the board of trustees of the local district without complying with the requirements of Subsection
             417      (3)(b), (3)(c), or Section 17B-2-607 .
             418          (3) Except as provided in Subsection (2), the public hearing required by Subsection (1)
             419      shall be held:
             420          (a) no later than 90 days after:
             421          (i) certification of the petition under Subsection 17B-2-605 (1)(b)(i); or
             422          (ii) adoption of a resolution under Subsection 17B-2-603 (1)(a)(iii);
             423          (b) (i) for a local district located entirely within a single county:
             424          (A) within or as close as practicable to the area proposed to be withdrawn; or
             425          (B) at the local district office; or
             426          (ii) for a local district located in more than one county:
             427          (A) (I) within the county in which the area proposed to be withdrawn is located; and
             428          (II) within or as close as practicable to the area proposed to be withdrawn; or
             429          (B) if the local district office is reasonably accessible to all residents within the area
             430      proposed to be annexed, at the local district office;


             431          (c) on a weekday evening other than a holiday beginning no earlier than 6:00 p.m.; and
             432          (d) for the purpose of allowing:
             433          (i) the public to ask questions and obtain further information about the proposed
             434      withdrawal and issues raised by it; and
             435          (ii) any interested person to address the board of trustees concerning the proposed
             436      withdrawal.
             437          (4) A quorum of the board of trustees of the local district shall be present throughout the
             438      public hearing provided for under this section.
             439          (5) A public hearing under this section may be postponed or continued to a new time, date,
             440      and place without further notice by a resolution of the board of trustees adopted at the public
             441      hearing held at the time, date, and place specified in the published notice; provided, however, that
             442      the public hearing may not be postponed or continued to a date later than 15 days after the 90-day
             443      period under Subsection (3).
             444          Section 11. Section 17B-2-607 is enacted to read:
             445          17B-2-607. Notice of hearing and withdrawal.
             446          (1) Unless it is held as an agenda item of a meeting of the board of trustees of a local
             447      district as allowed by Subsection 17B-2-606 (2), before holding a public hearing under Section
             448      17B-2-606 , the board of trustees of the local district shall:
             449          (a) mail notice of the public hearing and of the proposed withdrawal to:
             450          (i) if the local district is funded predominantly by revenues from a property tax, each
             451      owner of private real property located within the area proposed to be withdrawn, as shown upon
             452      the county assessment roll last equalized as of the previous December 31;
             453          (ii) if the local district is funded by fees based upon an allotment of acre-feet of water, each
             454      owner of private real property with an allotment of water located within the area proposed to be
             455      withdrawn, as shown upon the district's records; or
             456          (iii) if the local district is not funded predominantly by revenues from a property tax or
             457      fees based upon an allotment of acre-feet of water, each registered voter residing within the area
             458      proposed to be withdrawn, as determined by the voter registration list maintained by the county
             459      clerk as of a date selected by the board of trustees that is at least 20 but not more than 60 days
             460      before the public hearing; and
             461          (b) post notice of the public hearing and of the proposed withdrawal in at least four


             462      conspicuous places within the area proposed to be withdrawn, no less than five nor more than 30
             463      days before the public hearing.
             464          (2) Each notice required under Subsection (1) shall:
             465          (a) describe the area proposed to be withdrawn;
             466          (b) identify the local district in which the area proposed to be withdrawn is located;
             467          (c) state the date, time, and location of the public hearing;
             468          (d) state that the petition or resolution may be examined during specified times and at a
             469      specified place in the local district; and
             470          (e) state that any person interested in presenting comments or other information for or
             471      against the petition or resolution may:
             472          (i) prior to the hearing, submit relevant comments and other information in writing to the
             473      board of trustees at a specified address in the local district; or
             474          (ii) at the hearing, present relevant comments and other information in writing and may
             475      also present comments and information orally.
             476          Section 12. Section 17B-2-608 is enacted to read:
             477          17B-2-608. Resolution approving or rejecting withdrawal -- Criteria for approval or
             478      rejection -- Terms and conditions.
             479          (1) (a) On or before the date of the board meeting next following the public hearing under
             480      Section 17B-2-606 , but in no case later than 90 days after the public hearing or, if no hearing is
             481      held, within 90 days after the filing of a petition under Section 17B-2-603 , the board of trustees
             482      of the local district in which the area proposed to be withdrawn is located shall adopt a resolution:
             483          (i) approving the withdrawal of some or all of the area from the local district; or
             484          (ii) rejecting the withdrawal.
             485          (b) Each resolution approving a withdrawal shall:
             486          (i) include a legal description of the area proposed to be withdrawn;
             487          (ii) state the effective date of the withdrawal; and
             488          (iii) set forth the terms and conditions under Subsection (5), if any, of the withdrawal.
             489          (c) Each resolution rejecting a withdrawal shall include a detailed explanation of the board
             490      of trustees' reasons for the rejection.
             491          (2) Unless denial of the petition is required under Subsection (3), the board of trustees
             492      shall adopt a resolution approving the withdrawal of some or all of the area from the local district


             493      if the board of trustees determines that:
             494          (a) the area to be withdrawn does not and will not require the service that the local district
             495      provides;
             496          (b) the local district will not be able to provide service to the area to be withdrawn for the
             497      reasonably foreseeable future; or
             498          (c) the area to be withdrawn has obtained the same service that is provided by the local
             499      district or a commitment to provide the same service that is provided by the local district from
             500      another source.
             501          (3) The board of trustees shall adopt a resolution denying the withdrawal if it determines
             502      that the proposed withdrawal would:
             503          (a) result in a breach or default by the local district under:
             504          (i) any of its notes, bonds, or other debt or revenue obligations;
             505          (ii) any of its agreements with entities which have insured, guaranteed, or otherwise
             506      credit-enhanced any debt or revenue obligations of the local district; or
             507          (iii) any of its agreements with the United States or any agency of the United States;
             508      provided, however, that, if the local district has entered into an agreement with the United States
             509      that requires the consent of the United States for a withdrawal of territory from the district, a
             510      withdrawal under this part may occur if the written consent of the United States is obtained and
             511      filed with the board of trustees;
             512          (b) adversely affect the ability of the local district to make any payments or perform any
             513      other material obligations under:
             514          (i) any of its agreements with the United States or any agency of the United States;
             515          (ii) any of its notes, bonds, or other debt or revenue obligations; or
             516          (iii) any of its agreements with entities which have insured, guaranteed, or otherwise
             517      credit-enhanced any debt or revenue obligations of the local district;
             518          (c) result in the reduction or withdrawal of any rating on an outstanding note, bond, or
             519      other debt or revenue obligation of the local district;
             520          (d) create an island or peninsula of nondistrict territory within the local district or of
             521      district territory within nondistrict territory that has a material adverse affect on the local district's
             522      ability to provide service or materially increases the cost of providing service to the remainder of
             523      the local district;


             524          (e) materially impair the operations of the remaining local district; or
             525          (f) require the local district to materially increase the fees it charges or property taxes or
             526      other taxes it levies in order to provide to the remainder of the district the same level and quality
             527      of service that was provided before the withdrawal.
             528          (4) In determining whether the withdrawal would have any of the results described in
             529      Subsection (3), the board of trustees may consider the cumulative impact that multiple withdrawals
             530      over a specified period of time would have on the local district.
             531          (5) (a) Despite the presence of one or more of the conditions listed in Subsection (3), the
             532      board of trustees may approve a resolution withdrawing an area from the local district imposing
             533      terms or conditions that mitigate or eliminate the conditions listed in Subsection (3), including:
             534          (i) a requirement that the owners of property located within the area proposed to be
             535      withdrawn or residents within that area pay their proportionate share of any outstanding district
             536      bond or other obligation as determined pursuant to Subsection (5)(b);
             537          (ii) a requirement that the owners of property located within the area proposed to be
             538      withdrawn or residents within that area make one or more payments in lieu of taxes, fees, or
             539      assessments;
             540          (iii) a requirement that the board of trustees and the receiving entity agree to reasonable
             541      payment and other terms in accordance with Subsections (5)(f) through (g) regarding the transfer
             542      to the receiving entity of district assets that the district used before withdrawal to provide service
             543      to the withdrawn area but no longer needs because of the withdrawal; provided that, if those
             544      district assets are allocated in accordance with Subsections (5)(f) through (g), the district shall
             545      immediately transfer to the receiving entity on the effective date of the withdrawal, all title to and
             546      possession of district assets allocated to the receiving entity; or
             547          (iv) any other reasonable requirement considered to be necessary by the board of trustees.
             548          (b) Other than as provided for in Subsection 17B-2-609 (2), and except as provided in
             549      Subsection (5)(e), in determining the proportionate share of outstanding bonded indebtedness or
             550      other obligations under Subsection (5)(a)(i) and for purposes of determining the allocation and
             551      transfer of district assets under Subsection (5)(a)(iii), the board of trustees and the receiving entity,
             552      or in cases where there is no receiving entity, the board and the sponsors of the petition shall:
             553          (i) engage engineering and accounting consultants chosen by the procedure provided in
             554      Subsection (5)(d); provided however, that if the withdrawn area is not receiving service, an


             555      engineering consultant need not be engaged; and
             556          (ii) require the engineering and accounting consultants engaged under Subsection (5)(b)(i)
             557      to communicate in writing to the board of trustees and the receiving entity, or in cases where there
             558      is no receiving entity, the board and the sponsors of the petition the information required by
             559      Subsections (5)(f) through (h).
             560          (c) For purposes of this Subsection (5):
             561          (i) "accounting consultant" means a certified public accountant or a firm of certified public
             562      accountants with the expertise necessary to make the determinations required under Subsection
             563      (5)(h); and
             564          (ii) "engineering consultant" means a person or firm that has the expertise in the
             565      engineering aspects of the type of system by which the withdrawn area is receiving service that is
             566      necessary to make the determination required under Subsections (5)(f) and (g).
             567          (d) (i) Unless the board of trustees and the receiving entity, or in cases where there is no
             568      receiving entity, the board and the sponsors of the petition agree on an engineering consultant and
             569      an accounting consultant, each consultant shall be chosen from a list of consultants provided by
             570      the Consulting Engineers Council of Utah and the Utah Association of Certified Public
             571      Accountants, respectively, as provided in this Subsection (5)(d).
             572          (ii) A list under Subsection (5)(d)(i) may not include a consultant who has had a contract
             573      for services with the district or the receiving entity during the two-year period immediately before
             574      the list is provided to the local district.
             575          (iii) Within 20 days of receiving the lists described in Subsection (5)(d)(i), the board of
             576      trustees shall eliminate the name of one engineering consultant from the list of engineering
             577      consultants and the name of one accounting consultant from the list of accounting consultants and
             578      shall notify the receiving entity, or in cases where there is no receiving entity, the sponsors of the
             579      petition in writing of the eliminations.
             580          (iv) Within three days of receiving notification under Subsection (5)(d), the receiving
             581      entity, or in cases where there is no receiving entity, the sponsors of the petition shall eliminate
             582      another name of an engineering consultant from the list of engineering consultants and another
             583      name of an accounting consultant from the list of accounting consultants and shall notify the board
             584      of trustees in writing of the eliminations.
             585          (v) The board of trustees and the receiving entity, or in cases where there is no receiving


             586      entity, the board and the sponsors of the petition shall continue to alternate between them, each
             587      eliminating the name of one engineering consultant from the list of engineering consultants and
             588      the name of one accounting consultant from the list of accounting consultants and providing
             589      written notification of the eliminations within three days of receiving notification of the previous
             590      notification, until the name of only one engineering consultant remains on the list of engineering
             591      consultants and the name of only one accounting consultant remains on the list of accounting
             592      consultants.
             593          (e) The requirement under Subsection (5)(b) to engage engineering and accounting
             594      consultants does not apply if the board of trustees and the receiving entity, or in cases where there
             595      is no receiving entity, the board and the sponsors of the petition agree on the allocations that are
             596      the engineering consultant's responsibility under Subsection (5)(f) or the determinations that are
             597      the accountant consultant's responsibility under Subsection (5)(h); provided however, that if
             598      engineering and accounting consultants are engaged, the district and the receiving entity, or in
             599      cases where there is no receiving entity, the district and the sponsors of the petition shall equally
             600      share the cost of the engineering and accounting consultants.
             601          (f) (i) The engineering consultant shall allocate the district assets between the district and
             602      the receiving entity as provided in this Subsection (5)(f).
             603          (ii) The engineering consultant shall allocate:
             604          (A) to the district those assets reasonably needed by the district to provide to the area of
             605      the district remaining after withdrawal the kind, level, and quality of service that was provided
             606      before withdrawal; and
             607          (B) to the receiving entity those assets reasonably needed by the receiving entity to provide
             608      to the withdrawn area the kind and quality of service that was provided before withdrawal.
             609          (iii) If the engineering consultant determines that both the local district and the receiving
             610      entity reasonably need a district asset to provide to their respective areas the kind and quality of
             611      service provided before withdrawal, the engineering consultant shall:
             612          (A) allocate the asset between the local district and the receiving entity according to their
             613      relative needs, if the asset is reasonably susceptible of division; or
             614          (B) allocate the asset to the local district, if the asset is not reasonably susceptible of
             615      division.
             616          (g) All district assets remaining after application of Subsection (5)(f) shall be allocated to


             617      the local district.
             618          (h) (i) The accounting consultant shall determine the withdrawn area's proportionate share
             619      of any redemption premium and the principal of and interest on:
             620          (A) the local district's revenue bonds that were outstanding at the time the petition was
             621      filed;
             622          (B) the local district's general obligation bonds that were outstanding at the time the
             623      petition was filed; and
             624          (C) the local district's general obligation bonds that:
             625          (I) were outstanding at the time the petition was filed; and
             626          (II) are treated as revenue bonds under Subsection (5)(i); and
             627          (D) the district's bonds that were issued prior to the date the petition was filed to refund
             628      the district's revenue bonds, general obligation bonds, or general obligation bonds treated as
             629      revenue bonds.
             630          (ii) For purposes of Subsection (5)(h)(i), the withdrawn area's proportionate share of
             631      redemption premium, principal, and interest shall be the amount that bears the same relationship
             632      to the total redemption premium, principal, and interest for the entire district that the average
             633      annual gross revenues from the withdrawn area during the three most recent complete fiscal years
             634      before the filing of the petition bears to the average annual gross revenues from the entire district
             635      for the same period.
             636          (i) For purposes of Subsection (5)(h)(i), a district general obligation bond shall be treated
             637      as a revenue bond if:
             638          (i) the bond is outstanding on the date the petition was filed; and
             639          (ii) the principal of and interest on the bond, as of the date the petition was filed, had been
             640      paid entirely from local district revenues and not from a levy of ad valorem tax.
             641          (j) (i) Before the board of trustees of the local district files a resolution approving a
             642      withdrawal, the receiving entity, or in cases where there is no receiving entity, the sponsors of the
             643      petition shall irrevocably deposit government obligations, as defined in Subsection 11-27-2 (6), into
             644      an escrow trust fund the principal of and interest on which are sufficient to provide for the timely
             645      payment of the amount determined by the accounting consultant under Subsection (5)(h) or in an
             646      amount mutually agreeable to the board of trustees of the local district and the receiving entity, or
             647      in cases where there is no receiving entity, the board and the sponsors of the petition.


             648      Notwithstanding Subsection 17B-2-610 (1), the board of trustees shall not be required to file a
             649      resolution approving a withdrawal until the requirements for establishing and funding an escrow
             650      trust fund in this Subsection (5)(j)(i) have been met; provided that, if the escrow trust fund has not
             651      been established and funded within 180 days after the board of trustees passes a resolution
             652      approving a withdrawal, the resolution approving the withdrawal shall be void.
             653          (ii) Concurrently with the creation of the escrow, the receiving entity, or in cases where
             654      there is no receiving entity, the sponsors of the petition shall provide to the board of trustees of the
             655      local district:
             656          (A) a written opinion of an attorney experienced in the tax-exempt status of municipal
             657      bonds stating that the establishment and use of the escrow to pay the proportionate share of the
             658      district's outstanding revenue bonds and general obligation bonds that are treated as revenue bonds
             659      will not adversely affect the tax-exempt status of the bonds; and
             660          (B) a written opinion of an independent certified public accountant verifying that the
             661      principal of and interest on the deposited government obligations are sufficient to provide for the
             662      payment of the withdrawn area's proportionate share of the bonds as provided in Subsection (5)(h).
             663          (iii) The receiving entity, or in cases where there is no receiving entity, the sponsors of the
             664      petition shall bear all expenses of the escrow and the redemption of the bonds.
             665          (iv) The receiving entity may issue bonds under Title 11, Chapter 14, Utah Municipal
             666      Bond Act, and Title 11 Chapter 27, Refunding Bond Act, to fund the escrow.
             667          (6) A requirement imposed by the board of trustees as a condition to withdrawal under
             668      Subsection (5) shall, in addition to being expressed in the resolution, be reduced to a duly
             669      authorized and executed written agreement between the parties to the withdrawal.
             670          (7) An area that is the subject of a withdrawal petition under Section 17B-2-603 that
             671      results in a board of trustees resolution denying the proposed withdrawal may not be the subject
             672      of another withdrawal petition under Section 17B-2-603 for two years after the date of the board
             673      of trustees resolution denying the withdrawal.
             674          Section 13. Section 17B-2-609 is enacted to read:
             675          17B-2-609. Continuation of tax levy after withdrawal to pay for proportionate share
             676      of district bonds.
             677          (1) Other than as provided in Subsection (2), and unless an escrow trust fund is established
             678      and funded pursuant to Subsection 17B-2-608 (5)(j), property within the withdrawn area shall


             679      continue after withdrawal to be subject to a tax by the local district:
             680          (a) for the purpose of paying the withdrawn area's just proportion of the local district's
             681      general obligation bonds, other than those bonds treated as revenue bonds under Subsection
             682      17B-2-608 (5)(i), until the bonded indebtedness has been satisfied; and
             683          (b) to the extent and for the years necessary to generate sufficient revenue that, when
             684      combined with the revenues from the district remaining after withdrawal, is sufficient to provide
             685      for the payment of principal and interest on the district's general obligation bonds that are treated
             686      as revenue bonds under Subsection 17B-2-608 (5)(i).
             687          (2) For a local district funded predominately by revenues other than property taxes, service
             688      charges, or assessments based upon an allotment of acre-feet of water, taxes within the withdrawn
             689      area shall continue to be collected for purposes of paying the withdrawn area's proportionate share
             690      of bonded indebtedness or judgments against the local district incurred prior to the date the petition
             691      was filed.
             692          (3) Except as provided in Subsections (1) and (2), upon withdrawal, the withdrawing area
             693      is relieved of all other taxes, assessments, and charges levied by the district, including taxes and
             694      charges for the payment of revenue bonds and maintenance and operation cost of the local district.
             695          Section 14. Section 17B-2-610 is enacted to read:
             696          17B-2-610. Notice of withdrawal -- Contest period -- Judicial review.
             697          (1) (a) Within ten days after adopting a resolution approving a withdrawal, the board of
             698      trustees shall file a written notice of the withdrawal with the State Tax Commission and the
             699      assessor and recorder of each county in which any part of the withdrawn area is located,
             700      accompanied by a copy of the resolution approving the withdrawal, an accurate map depicting the
             701      boundaries of the withdrawn area or a legal description of the withdrawn area, adequate for
             702      purposes of the county assessor and recorder.
             703          (b) Upon the filing of the notices required by Subsection (1)(a), the withdrawal shall be
             704      effective, subject to the conditions of the withdrawal resolution.
             705          (2) The local district may provide for the publication of any resolution approving or
             706      denying the withdrawal of an area in a newspaper of general circulation in the area proposed for
             707      withdrawal. In lieu of publishing the entire resolution, the local district may publish a notice of
             708      withdrawal or denial of withdrawal, containing:
             709          (a) the name of the local district;


             710          (b) a description of the area proposed for withdrawal;
             711          (c) a brief explanation of the grounds on which the board of trustees determined to approve
             712      or deny the withdrawal; and
             713          (d) the times and place where a copy of the resolution may be examined, which shall be
             714      at the place of business of the local district, identified in the notice, during regular business hours
             715      of the local district as described in the notice and for a period of at least 30 days after the
             716      publication of the notice.
             717          (3) Any sponsor of the petition or receiving entity may contest the board's decision to deny
             718      a withdrawal of an area from the local district by submitting a request, within 60 days after the
             719      resolution is adopted under Section 17B-2-608 , to the board of trustees, suggesting terms or
             720      conditions to mitigate or eliminate the conditions upon which the board of trustees based its
             721      decision to deny the withdrawal.
             722          (4) Within 60 days after the request under Subsection (3) is submitted to the board of
             723      trustees, the board may consider the suggestions for mitigation and adopt a resolution approving
             724      or denying the request in the same manner as provided in Section 17B-2-608 with respect to the
             725      original resolution denying the withdrawal and file a notice of the action as provided in Subsection
             726      (1).
             727          (5) (a) Any person in interest may seek judicial review of:
             728          (i) the board of trustees' decision to withdraw an area from the local district;
             729          (ii) the terms and conditions of a withdrawal; or
             730          (iii) the board's decision to deny a withdrawal.
             731          (b) Judicial review under this Subsection (5) shall be initiated by filing an action in the
             732      district court in the county in which a majority of the area proposed to be withdrawn is located:
             733          (i) if the resolution approving or denying the withdrawal is published under Subsection
             734      (2), within 60 days after the publication or after the board of trustees' denial of the request under
             735      Subsection (4);
             736          (ii) if the resolution is not published pursuant to Subsection (2), within 60 days after the
             737      resolution approving or denying the withdrawal is adopted; or
             738          (iii) if a request is submitted to the board of trustees of a local district under Subsection
             739      (3), and the board adopts a resolution under Subsection (4), within 60 days after the board adopts
             740      a resolution under Subsection (4) unless the resolution is published under Subsection (2), in which


             741      event the action must be filed within 60 days after the publication.
             742          (c) A court in which an action is filed under this Subsection (5) may not overturn, in whole
             743      or in part, the board of trustees' decision to approve or reject the withdrawal unless:
             744          (i) the court finds the board of trustees' decision to be arbitrary or capricious; or
             745          (ii) the court finds that the board materially failed to follow the procedures set forth in this
             746      part.
             747          (d) A court may award costs and expenses of an action under this section, including
             748      reasonable attorney's fees, to the prevailing party.
             749          (6) After the applicable contest period under Subsection (3) or (5), no person may contest
             750      the board of trustees' approval or denial of withdrawal for any cause.
             751          Section 15. Section 17B-2-611 is enacted to read:
             752          17B-2-611. Termination of terms of trustees representing withdrawn areas.
             753          (1) On the effective date of withdrawal of an area from a local district, any trustee residing
             754      in the withdrawn area shall cease to be a member of the board of trustees of the local district.
             755          (2) If the local district has been divided into divisions for the purpose of electing or
             756      appointing trustees and the area withdrawn from a district constitutes all or substantially all of the
             757      area in a division of the local district that is represented by a member of the board of trustees, on
             758      the effective date of the withdrawal, the trustee representing the division shall cease to be a
             759      member of the board of trustees of the local district.
             760          (3) In the event of a vacancy on the board of trustees as a result of an area being withdrawn
             761      from the local district:
             762          (a) the board of trustees shall reduce the number of trustees of the local district as provided
             763      by law; or
             764          (b) the trustee vacancy shall be filled as provided by law.
             765          Section 16. Repealer.
             766          This act repeals:
             767          Section 17A-2-334, Withdrawal from improvement district -- Petition by majority of
             768      property owners -- Procedure.
             769          Section 17A-2-335, Withdrawal from improvement district -- Appointment of
             770      commissioners to determine rights and liabilities.
             771          Section 17A-2-336, Hearing for withdrawal -- Commissioners' report -- Action by


             772      court -- Taxes and charges on property.
             773          Section 17A-2-337, Payment of indebtedness after withdrawal from district.
             774          Section 17A-2-338, Recording decree after withdrawal from district -- Payment of
             775      costs.
             776          Section 17A-2-340, Withdrawal of territory in a municipality from improvement
             777      districts for the supply, treatment, or distribution of water.
             778          Section 17A-2-740, Petition for exclusion.
             779          Section 17A-2-741, Notice of petition -- Objections.
             780          Section 17A-2-742, Hearings by board -- Assent by petitioners.
             781          Section 17A-2-743, Exclusion of lands, when -- Contracts with the United States.
             782          Section 17A-2-744, Filings with county clerk and recorder.
             783          Section 17A-2-842, Withdrawal from metropolitan water district.
             784          Section 17A-2-1049, Withdrawal from public transit district.
             785          Section 17A-2-1438, Procedures to petition a board to exclude land from a district.
             786          Section 17A-2-1450, Content of petition for exclusion -- Deposit of money for cost of
             787      proceedings.
             788          Section 17A-2-1451, Notice of hearing.
             789          Section 17A-2-1452, Criteria for approving or denying a petition.
             790          Section 17A-2-1453, Order filed with district court clerk -- Criteria for affirmation
             791      of order by the court.
             792          Section 17A-2-1454, Terms of trustees representing excluded lands cease.
             793          Section 17A-2-1809, Excluding land -- Procedures.
             794          Section 17A-2-1810, Petition for exclusion.
             795          Section 17A-2-1811, Notice of hearing.
             796          Section 17A-2-1812, Approving or denying a petition.
             797          Section 17A-2-1813, Orders excluding land -- Filing -- Contents -- Judicial review.
             798          Section 17A-2-1814, Trustees residing in excluded lands -- Redistricting -- No
             799      impairment.





Legislative Review Note
    as of 11-14-01 4:29 PM


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

Office of Legislative Research and General Counsel


Committee Note

The Political Subdivisions Interim Committee recommended this bill.


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