S.B. 72 Enrolled

AMENDMENTS TO SPECIAL DISTRICTS AND
LOCAL DISTRICTS FOR EXPANDED FIRE
PROTECTION SERVICES
2003 GENERAL SESSION
STATE OF UTAH
Sponsor: David L. Thomas
This act modifies provisions related to Special Districts and to Limited Purpose Local
Government Entities. The act authorizes the creation of a county service area and a local
district for fire protection, paramedic, and emergency services by resolution of the
legislative bodies of participating counties and municipalities without the necessity of
voter approval under certain circumstances. The act modifies board of trustees
provisions for a district created to provide fire protection, paramedic, and emergency
services. The act requires counties and municipalities included within a certain type of
district for fire protection, paramedic, and emergency services to reduce their certified
tax rate to offset taxes imposed by the district for those services. The act imputes a tax
imposed by a fire district to the county or municipality included within the district for
purposes of the county or municipality's tax limit. The act provides for automatic
annexation to certain districts providing fire protection, paramedic, and emergency
services when an area is annexed to a municipality within the district and for automatic
withdrawal from those districts when an area within the district is annexed to a
municipality that is not within the district. The act provides an alternate method of
withdrawing an area within a municipality from certain districts providing fire
protection, paramedic, and emergency services upon resolution of the municipal
legislative body and a vote of the municipality. The act also makes technical changes.
The act provides a coordination clause.
This act affects sections of Utah Code Annotated 1953 as follows:
AMENDS:
10-1-117, as enacted by Chapter 318, Laws of Utah 2000
10-2-406, as last amended by Chapter 206, Laws of Utah 2001

10-2-419, as last amended by Chapter 337, Laws of Utah 1998
10-2-425, as last amended by Chapter 318, Laws of Utah 2000
17A-2-403, as last amended by Chapter 90, Laws of Utah 2001
17A-2-411, as last amended by Chapter 90, Laws of Utah 2001
17B-2-202, as enacted by Chapter 368, Laws of Utah 1998
17B-2-213, as enacted by Chapter 368, Laws of Utah 1998
17B-2-214, as enacted by Chapter 368, Laws of Utah 1998
17B-2-215, as enacted by Chapter 368, Laws of Utah 1998
17B-2-216, as enacted by Chapter 368, Laws of Utah 1998
17B-2-502, as enacted by Chapter 90, Laws of Utah 2001
17B-2-503, as enacted by Chapter 90, Laws of Utah 2001
17B-2-514, as enacted by Chapter 90, Laws of Utah 2001
17B-2-601, as enacted by Chapter 284, Laws of Utah 2002
17B-2-603, as enacted by Chapter 284, Laws of Utah 2002
17B-2-610, as enacted by Chapter 284, Laws of Utah 2002
59-2-924, as last amended by Chapters 133, 195 and 258, Laws of Utah 2001
ENACTS:
17B-2-515.5, Utah Code Annotated 1953
17B-2-603.5, Utah Code Annotated 1953
Be it enacted by the Legislature of the state of Utah:
Section 1. Section 10-1-117 is amended to read:
10-1-117. Amending articles of incorporation -- Lieutenant governor certification.
(1) A municipality may amend its articles of incorporation by filing amended articles
with the lieutenant governor.
(2) The lieutenant governor may not certify amended articles of incorporation unless they
have been:
(a) approved by the municipal legislative body; and
(b) signed and verified by the mayor of the municipality.

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(3) (a) Within ten days after receiving amended articles of incorporation that comply
with Subsection (2), the lieutenant governor shall:
[(a)] (i) certify the amended articles; and
[(b)] (ii) deliver a copy of the certified articles to:
[(i)] (A) the legislative body of the municipality; and
[(ii)] (B) the clerk of the county in which the municipality is located.
(b) If the lieutenant governor receives amended articles of incorporation reflecting a
municipal annexation or boundary adjustment under Chapter 2, Part 4, Annexation, that also
causes an automatic annexation to a local district under Section 17B-2-515.5 or an automatic
withdrawal from a local district under Subsection 17B-2-601 (2):
(i) the lieutenant governor may not certify the municipality's amended articles or issue to
the local district a certificate of annexation or withdrawal relating to the automatic annexation or
withdrawal until the lieutenant governor receives both the municipality's amended articles of
incorporation under Subsection 10-2-425 (1)(b) and the local district's notice of annexation under
Subsection 17B-2-514 (2)(b) or notice of withdrawal under Subsection 17B-2-610 (1)(b);
(ii) within ten days after receiving both the municipality's amended articles of
incorporation and the local district's notice of annexation or withdrawal, the lieutenant governor
shall:
(A) simultaneously:
(I) certify the amended articles; and
(II) issue a certificate of annexation or withdrawal, as the case may be;
(B) send a copy of the certified amended articles to the legislative body of the
municipality;
(C) send a certificate of annexation or withdrawal to the local district; and
(D) send a copy of the certified amended articles and certificate of annexation or
withdrawal to the State Tax Commission, the state auditor, and the assessor and recorder of each
county in which any part of the area included in the municipal annexation is located.
(4) Upon certification by the lieutenant governor, the amended articles shall take effect.

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(5) The lieutenant governor:
(a) shall furnish a certified copy of the amended articles of incorporation to any person
who requests a certified copy; and
(b) may charge a reasonable fee for the certified copy.
Section 2. Section 10-2-406 is amended to read:
10-2-406. Notice of certification -- Publishing and providing notice of petition.
(1) After receipt of the notice of certification from the city recorder or town clerk under
Subsection 10-2-405 (2)(b)(i), the municipal legislative body shall:
(a) (i) publish a notice at least once a week for three successive weeks, beginning no later
than ten days after receipt of the notice of certification, in a newspaper of general circulation
within:
(A) the area proposed for annexation; and
(B) the unincorporated area within 1/2 mile of the area proposed for annexation; or
(ii) if there is no newspaper of general circulation within those areas, post written notices
in conspicuous places within those areas that are most likely to give notice to residents within
those areas; and
(b) within 20 days of receipt of the notice of certification under Subsection
10-2-405 (2)(b)(i), mail written notice to each affected entity.
(2) (a) The notice under Subsections (1)(a) and (b) shall:
(i) state that a petition has been filed with the municipality proposing the annexation of
an area to the municipality;
(ii) state the date of the municipal legislative body's receipt of the notice of certification
under Subsection 10-2-405 (2)(b)(i);
(iii) describe the area proposed for annexation in the annexation petition;
(iv) state that the complete annexation petition is available for inspection and copying at
the office of the city recorder or town clerk;
(v) state in conspicuous and plain terms that the municipality may grant the petition and
annex the area described in the petition unless, within the time required under Subsection

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10-2-407 (2)(a)(i)(A), a written protest to the annexation petition is filed with the commission and
a copy of the protest delivered to the city recorder or town clerk of the proposed annexing
municipality; [and]
(vi) state the address of the commission or, if a commission has not yet been created in
the county, the county clerk, where a protest to the annexation petition may be filed[.];
(vii) state that the area proposed for annexation to the municipality will also
automatically be annexed to a local district providing fire protection, paramedic, and emergency
services, as provided in Section 17B-2-515.5 , if:
(A) the proposed annexing municipality is entirely within the boundaries of a local
district:
(I) that provides fire protection, paramedic, and emergency services; and
(II) in the creation of which an election was not required because of Subsection
17B-2-214 (3)(c); and
(B) the area proposed to be annexed to the municipality is not already within the
boundaries of the local district; and
(viii) state that the area proposed for annexation to the municipality will be automatically
withdrawn from a local district providing fire protection, paramedic, and emergency services, as
provided in Subsection 17B-2-601 (2), if:
(A) the petition proposes the annexation of an area that is within the boundaries of a
local district:
(I) that provides fire protection, paramedic, and emergency services; and
(II) in the creation of which an election was not required because of Subsection
17B-2-214 (3)(c); and
(B) the proposed annexing municipality is not within the boundaries of the local district.
(b) The statement required by Subsection (2)(a)(v) shall state the deadline for filing a
written protest in terms of the actual date rather than by reference to the statutory citation.
(c) In addition to the requirements under Subsection (2)(a), a notice under Subsection
(1)(a) for a proposed annexation of an area within a county of the first class shall include a

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statement that a protest to the annexation petition may be filed with the commission by property
owners if it contains the signatures of the owners of private real property that:
(i) is located in the unincorporated area within 1/2 mile of the area proposed for
annexation;
(ii) covers at least 25% of the private land area located in the unincorporated area within
1/2 mile of the area proposed for annexation; and
(iii) is equal in value to at least 15% of all real property located in the unincorporated
area within 1/2 mile of the area proposed for annexation.
Section 3. Section 10-2-419 is amended to read:
10-2-419. Boundary adjustment -- Notice and hearing -- Protest.
(1) The legislative bodies of two or more municipalities having common boundaries may
adjust their common boundaries as provided in this section.
(2) (a) The legislative body of each municipality intending to adjust a boundary that is
common with another municipality shall:
(i) adopt a resolution indicating the intent of the municipal legislative body to adjust a
common boundary;
(ii) hold a public hearing on the proposed adjustment no less than 60 days after the
adoption of the resolution under Subsection (2)(a)(i); and
(iii) (A) publish notice at least once a week for three successive weeks in a newspaper of
general circulation within the municipality; or
(B) if there is no newspaper of general circulation within the municipality, post at least
one notice per 1,000 population in places within the municipality that are most likely to give
notice to residents of the municipality.
(b) The notice required under Subsection (2)(a)(iii) shall:
(i) state that the municipal legislative body has adopted a resolution indicating the
municipal legislative body's intent to adjust a boundary that the municipality has in common with
another municipality;
(ii) describe the area proposed to be adjusted;

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(iii) state the date, time, and place of the public hearing required under Subsection
(2)(a)(ii); [and]
(iv) state in conspicuous and plain terms that the municipal legislative body will adjust
the boundaries unless, at or before the public hearing under Subsection (2)(a)(ii), written protests
to the adjustment are filed by the owners of private real property that:
(A) is located within the area proposed for adjustment;
(B) covers at least 25% of the total private land area within the area proposed for
adjustment; and
(C) is equal in value to at least 15% of the value of all private real property within the
area proposed for adjustment[.]; and
(v) state that the area that is the subject of the boundary adjustment will, because of the
boundary adjustment, be automatically annexed to a local district providing fire protection,
paramedic, and emergency services, as provided in Section 17B-2-515.5 , if:
(A) the municipality to which the area is being added because of the boundary
adjustment is entirely within the boundaries of a local district:
(I) that provides fire protection, paramedic, and emergency services; and
(II) in the creation of which an election was not required because of Subsection
17B-2-214 (3)(c); and
(B) the municipality from which the area is being taken because of the boundary
adjustment is not within the boundaries of the local district; and
(vi) state that the area proposed for annexation to the municipality will be automatically
withdrawn from a local district providing fire protection, paramedic, and emergency services, as
provided in Subsection 17B-2-601 (2), if:
(A) the municipality to which the area is being added because of the boundary
adjustment is not within the boundaries of a local district:
(I) that provides fire protection, paramedic, and emergency services; and
(II) in the creation of which an election was not required because of Subsection
17B-2-214 (3)(c); and

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(B) the municipality from which the area is being taken because of the boundary
adjustment is entirely within the boundaries of the local district.
(c) The first publication of the notice required under Subsection (2)(a)(iii)(A) shall be
within 14 days of the municipal legislative body's adoption of a resolution under Subsection
(2)(a)(i).
(3) Upon conclusion of the public hearing under Subsection (2)(a)(ii), the municipal
legislative body may adopt an ordinance adjusting the common boundary unless, at or before the
hearing under Subsection (2)(a)(ii), written protests to the adjustment have been filed with the
city recorder or town clerk, as the case may be, by the owners of private real property that:
(a) is located within the area proposed for adjustment;
(b) covers at least 25% of the total private land area within the area proposed for
adjustment; and
(c) is equal in value to at least 15% of the value of all private real property within the
area proposed for adjustment.
(4) An ordinance adopted under Subsection (3) becomes effective when each
municipality involved in the boundary adjustment has adopted an ordinance under Subsection
(3).
Section 4. Section 10-2-425 is amended to read:
10-2-425. Filing of plat or map and amended articles -- Notice requirements.
(1) Within 30 days after enacting an ordinance annexing an unincorporated area or
adjusting a boundary under this part, the municipal legislative body shall:
(a) record with the county recorder a certified copy of the ordinance approving the
annexation or boundary adjustment, together with a plat or map prepared by a licensed surveyor
and approved by the municipal legislative body, showing the new boundaries of the affected area;
and
(b) file with the lieutenant governor amended articles of incorporation reflecting the
annexation or boundary adjustment, as provided in Section 10-1-117 .
(2) If an annexation or boundary adjustment under this part also causes an automatic

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annexation to a local district under Section 17B-2-515.5 or an automatic withdrawal from a local
district under Subsection 17B-2-601 (2), the municipal legislative body shall, as soon as
practicable after enacting an ordinance annexing an unincorporated area or adjusting a boundary,
send notice of the annexation or boundary adjustment to the local district to which the annexed
area is automatically annexed or from which the annexed area is automatically withdrawn.
[(2)] (3) The municipal legislative body shall comply with the notice requirements of
Section 10-1-116 .
Section 5. Section 17A-2-403 is amended to read:
17A-2-403. Authorized services -- Notice to and coordination with utility.
(1) (a) A county service area may provide: extended police protection; fire protection,
paramedic, and emergency services; culinary or irrigation water retail service; water
conservation; local park, recreation or parkway facilities and services; cemeteries; public
libraries; sewers, sewage and storm water treatment and disposal; flood control; garbage and
refuse collection; street lighting; airports; planning and zoning; local streets and roads; curb,
gutter, and sidewalk construction and maintenance; mosquito abatement; health department
services; hospital service; or the underground installation of an electric utility line or the
conversion to underground of an existing electric utility line.
(b) If providing service requires the issuance of bonds or the creation of long-term
obligations, the service may be supplied by means available as provided in this part.
(2) Each county service area that supplies the service of the underground installation of
an electric utility line or the conversion to underground of an existing electric utility line shall, in
installing or converting the line, provide advance notice to and coordinate with the utility that
owns the line.
Section 6. Section 17A-2-411 is amended to read:
17A-2-411. Board of trustees -- Selection procedures -- Surety bonds -- Other
provisions applicable -- Board membership for certain service areas providing fire
protection, paramedic, and emergency services.
(1) Each service area authorized under this part shall be governed by a board of trustees.

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(2) (a) [Upon] Except as provided in Subsection (11), upon the creation of a county
service area, the county legislative body may adopt an ordinance declaring that the county
legislative body of the county shall act as the trustees of the service area.
(b) Upon passage of the ordinance, the county legislative body of the county shall act as
trustees of the service area with all the powers, authority, and responsibility vested in the trustees
under this part.
(c) (i) The county legislative body, when acting as trustees, may use any existing county
offices, officers, or employees for the purposes of the service area.
(ii) The county legislative body shall charge costs of those services to the service area
and require them to be paid to the county treasurer for the general fund of the county.
(3) [At] Except as provided in Subsection (11), at any time after the creation of a board
of trustees as provided in Subsection (1), if no elected board has been established as provided in
this section, the county legislative body of the county in which the service area is located may:
(a) by ordinance, delegate its powers to an appointed or elected board of trustees as
provided in Chapter 1, Part 3, Special District Board Selection Procedures; and
(b) provide for the appointment or election of the board by following the procedures and
requirements of Chapter 1, Part 3, Special District Board Selection Procedures.
(4) [At] Except as provided in Subsection (11), at any time after the creation of a board
of trustees as provided in Subsections (2) and (3), the county legislative body shall hold an
election for trustees by following the procedures and requirements of Chapter 1, Part 3, Special
District Board Selection Procedures, if:
(a) the county legislative body receives a petition requesting that an election for trustees
be held that is:
(i) signed by at least 10% of persons eligible to vote in an election in a service area
authorized under this part; and
(ii) filed with the county legislative body at least 30 days before the date set for a bond
election or 90 days before the date set for any municipal election; or
(b) territory located within a municipality is annexed into the county service area under

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Title 17B, Chapter 2, Part 5, Annexation.
(5) (a) If there is no elected board of trustees at the time of the first bond election,
trustees shall be elected in conjunction with that bond election, except as provided in Subsection
(11).
(b) Candidates for election to the board of trustees shall be taxpayers and qualified voters
in the service area.
(c) At any time within 30 days after the county legislative body has called a bond
election, but not less than 15 days before the day of election, any person who is qualified to vote
in the service area may file a signed statement with the county clerk announcing the person's
candidacy to be one of the first elected trustees of the service area.
(d) The board of trustees shall provide a ballot separate from the bond ballot that
contains the names of the candidates and blanks in which the voters may write in additional
names.
(e) A voter at the election may vote for the number of trustee positions to be filled.
(f) The persons receiving the highest number of votes at the election are members of the
board of trustees.
(6) (a) Each member of the board of trustees may vote on all questions, orders,
resolutions, and ordinances coming before the board.
(b) Notwithstanding Section 17B-2-404 , if the county legislative body acts as the board of
trustees, no compensation may be paid to them as trustees.
(c) Each trustee who is also a member of the county legislative body shall take the oath
of office and shall give the bond that is required by law for members of the county legislative
body.
(7) All qualified voters in the service area may vote in elections to select trustees and in
elections to approve the issuance of bonds.
(8) Following the election or appointment of the first trustees, each elected trustee shall
be elected according to the procedures and requirements of Chapter 1, Part 3, Special District
Board Selection Procedures.

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(9) Each vacancy of an elected trustee in office shall be filled according to the procedures
and requirements of Chapter 1, Part 3, Special District Board Selection Procedures.
(10) (a) [The] Except as provided in Subsection (11), the provisions of Title 17B,
Chapter 2, Part 4, Board of Trustees, apply to each county service area to the same extent as if
the county service area were a local district under Title 17B, Chapter 2, Local Districts.
(b) (i) If a change in the number of board of trustees members is necessary to comply
with the requirements of Subsection 17B-2-402 (1), the board of trustees may by majority vote,
notwithstanding Subsection 17B-2-402 (3), change the number of board members to the next odd
number higher or lower than the number of current board members.
(ii) If a change under Subsection (10)(b)(i) decreases the number of board members, the
change may not take effect until the expiration of the term of the member whose term next
expires.
(iii) If a change in the number of board members necessitated by Subsection
17B-2-402 (1) would cause the district to violate a provision of bonds issued by the district, the
number of board members may be modified to the extent necessary to avoid a violation.
(c) (i) If a change in the expiration date of the term of a board of trustees member is
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.
(11) (a) This Subsection (11) applies to a county service area created on or after May 5,
2003 if:
(i) the county service area was created to provide fire protection, paramedic, and
emergency services; and
(ii) in the creation of the county service area, an election was not required under

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Subsection 17B-2-214 (3)(c).
(b) (i) Each county whose unincorporated area is included within the county service area,
whether in conjunction with the creation of the county service area or by later annexation, shall
appoint three members to the board of trustees.
(ii) Each municipality whose area is included within the county service area, whether in
conjunction with the creation of the county service area or by later annexation, shall appoint one
member to the board of trustees.
(iii) Each member appointed by a county under Subsection (11)(b)(i) shall be an elected
official of the appointing county, and each member appointed by a municipality under Subsection
(11)(b)(ii) shall be an elected official of the appointing municipality.
(c) The number of members of a board of trustees of a county service area to which this
Subsection (11) applies shall be the number resulting from application of Subsection (11)(b).
(d) An employee of the county service area may not serve as a member of the board of
trustees.
Section 7. Section 17B-2-202 is amended to read:
17B-2-202. Local district may be created -- Services that may be provided --
Limitations -- Name.
(1) A local district may be created as provided in this part to provide within its
boundaries service consisting of:
(a) the operation of an airport;
(b) the operation of a cemetery;
(c) the operation of a system for the generation or distribution of electricity;
(d) the operation of a system for the transmission of natural or manufactured gas that is:
(i) connected to a gas plant, as defined in Section 54-2-1 , of a gas corporation, as defined
in Section 54-2-1 , that is regulated under Section 54-4-1 ; and
(ii) to be used to facilitate gas utility service within the district if such gas utility service
is not available within the district prior to the acquisition or construction of such a system;
(e) fire protection, paramedic, and emergency services;

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(f) garbage collection and disposal;
(g) health care;
(h) the operation of a library;
(i) abatement or control of mosquitos and other insects;
(j) the operation of parks or recreation facilities;
(k) the operation of a sewage system;
(l) street lighting;
(m) the construction and maintenance of curb, gutter, and sidewalk;
(n) transportation;
(o) the operation of a system for the control of storm or flood waters;
(p) the operation of an irrigation water system;
(q) the operation of a culinary water system; or
(r) the underground installation of an electric utility line or the conversion to
underground of an existing electric utility line.
(2) For purposes of this section:
(a) "Operation" means all activities involved in providing the indicated service including
acquisition and ownership of property reasonably necessary to provide the indicated service and
acquisition, construction, and maintenance of facilities and equipment reasonably necessary to
provide the indicated service.
(b) "System" means the aggregate of interrelated components that combine together to
provide the indicated service including:
(i) for a sewage system, collection and treatment; and
(ii) for an irrigation or culinary water system, collection, retention, treatment, and
distribution to either the end user or another that in turn distributes to the end user.
(3) (a) Except as provided in Subsection (3)(b), a local district may be created to provide
and may after its creation provide no more than two of the services listed in Subsection (1).
(b) Notwithstanding Subsection (3)(a), a local district may be created to provide and may
after its creation provide services consisting of:

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(i) the operation of some or all of the components of a sewage system;
(ii) the operation of some or all of the components of an irrigation water system; and
(iii) the operation of some or all of the components of a culinary water system.
(4) (a) Except as provided in Subsection (4)(b), a local district may not be created to
provide and may not after its creation provide to an area the same service already being provided
to that area by another political subdivision.
(b) For purposes of Subsection (4)(a), a local district does not provide the same service
as another political subdivision if it operates a component of a system that is different from a
component operated by another political subdivision but within the same:
(i) sewage system;
(ii) irrigation water system; or
(iii) culinary water system.
(5) [The] Except for a local district in the creation of which an election is not required
under Subsection 17B-2-214 (3)(c), the area of a local district may include all or part of the
unincorporated area of one or more counties and all or part of one or more municipalities.
(6) The name of a local district:
(a) may include words descriptive of the type of service provided by the local district;
and
(b) may not include the name of a county or municipality.
Section 8. Section 17B-2-213 is amended to read:
17B-2-213. Protest after adoption of resolution -- Adoption of resolution approving
creation for certain districts.
(1) For purposes of this section, "adequate protests" means protests that are:
(a) filed with the county clerk or municipal clerk or recorder, as the case may be, within
60 days after the last public hearing required under Section 17B-2-210 ; and
(b) signed by:
(i) the owners of private real property that:
(A) is located within the proposed local district;

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(B) covers at least 25% of the total private land area within the applicable area; and
(C) is equal in value to at least 15% of the value of all private real property within the
applicable area; or
(ii) registered voters residing within the applicable area equal in number to at least 25%
of the number of votes cast in the applicable area for the office of governor at the last general
election prior to the adoption of the resolution.
(2) If adequate protests are filed, the county or municipal legislative body that adopted a
resolution under Subsection 17B-2-203 (1)(c):
(a) may not:
(i) hold or participate in an election under Subsection 17B-2-214 (1) with respect to the
applicable area;
(ii) take any further action under the protested resolution to create a local district or
include the applicable area in a local district; or
(iii) for a period of two years, adopt a resolution under Subsection 17B-2-203 (1)(c)
proposing the creation of a local district including substantially the same area as the applicable
area and providing the same service as the proposed local district in the protested resolution; and
(b) shall, within five days of receiving adequate protests, mail or deliver written
notification of the adequate protests to the responsible body.
(3) Subsection (2)(a) may not be construed to prevent an election from being held for a
proposed local district whose boundaries do not include an applicable area that is the subject of
adequate protests.
(4) (a) If adequate protests are not filed with respect to a resolution proposing the
creation of a local district for which an election is not required under Subsection
17B-2-214 (3)(c), a resolution approving the creation of the local district may be adopted by:
(i) the legislative body of a county whose unincorporated area is included within the
proposed local district; and
(ii) the legislative body of a municipality whose area is included within the proposed
local district.

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(b) Each resolution adopted under Subsection (4)(a) shall:
(i) describe the area included in the local district;
(ii) be accompanied by a map that shows the boundaries of the local district;
(iii) describe the service to be provided by the local district;
(iv) state the name of the local district; and
(v) provide a process for the appointment of the members of the initial board of trustees.
Section 9. Section 17B-2-214 is amended to read:
17B-2-214. Election -- Exceptions.
(1) (a) Except as provided [under] in Subsection (3) and in Subsection 17B-2-213 (2)(a),
an election on the question of whether the local district should be created shall be held by:
(i) if the proposed local district is located entirely within a single county, the responsible
clerk; or
(ii) except as provided under Subsection (1)(b), if the proposed local district is located
within more than one county, the clerk of each county in which part of the proposed local district
is located, in cooperation with the responsible clerk.
(b) Notwithstanding Subsection (1)(a)(ii), if the proposed local district is located within
more than one county and the only area of a county that is included within the proposed local
district is located within a single municipality, the election for that area shall be held by the
municipal clerk or recorder, in cooperation with the responsible clerk.
(2) Each election under Subsection (1) shall be held at the next special or regular general
election date that is:
(a) for an election pursuant to a property owner or registered voter petition, more than 45
days after certification of the petition under Subsection 17B-2-209 (3)(b)(i); or
(b) for an election pursuant to a resolution, more than 60 days after the latest hearing
required under Section 17B-2-210 .
(3) The election requirement of Subsection (1) does not apply:
(a) to a petition filed under Subsection 17B-2-203 (1)(a) if it contains the signatures of
the owners of private real property that:

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(i) is located within the proposed local district;
(ii) covers at least 67% of the total private land area within the proposed local district as
a whole and within each applicable area; and
(iii) is equal in value to at least 50% of the value of all private real property within the
proposed local district as a whole and within each applicable area; [or]
(b) to a petition filed under Subsection 17B-2-203 (1)(b) if it contains the signatures of
registered voters residing within the proposed local district as a whole and within each applicable
area, equal in number to at least 67% of the number of votes cast in the proposed local district as
a whole and in each applicable area, respectively, for the office of governor at the last general
election prior to the filing of the petition[.]; or
(c) to a resolution adopted under Subsection 17B-2-203 (1)(c) on or after May 5, 2003
that proposes the creation of a local district to provide fire protection, paramedic, and emergency
services, if the proposed local district includes a majority of the unincorporated area of one or
more counties and all of the area within one or more municipalities.
(4) (a) If the proposed local district is located in more than one county, the responsible
clerk shall coordinate with the clerk of each other county and the clerk or recorder of each
municipality involved in an election under Subsection (1) so that the election is held on the same
date and in a consistent manner in each jurisdiction.
(b) The clerk of each county and the clerk or recorder of each municipality involved in an
election under Subsection (1) shall cooperate with the responsible clerk in holding the election.
(c) Except as otherwise provided in this part, each election under Subsection (1) shall be
governed by Title 20A, [Elections] Election Code.
Section 10. Section 17B-2-215 is amended to read:
17B-2-215. Certification to lieutenant governor -- Certificate of incorporation --
Notice to State Tax Commission and state auditor -- Local district incorporated --
Incorporation presumed conclusive.
(1) The responsible body shall file a notice with the lieutenant governor within ten days
after:

- 18 -

(a) the canvass of an election under Section 17B-2-214 , if a majority of those voting at
the election within the proposed local district as a whole vote in favor of the creation of a local
district; [or]
(b) certification of a petition as to which the election requirement of Subsection
17B-2-214 (1) does not apply because of Subsection 17B-2-214 (3)[.](a) or (b); or
(c) adoption of a resolution under Subsection 17B-2-213 (4) approving the creation of a
local district for which an election was not required under Subsection 17B-2-214 (3)(c), by the
legislative body of each county whose unincorporated area is included within and the legislative
body of each municipality whose area is included within the proposed local district.
(2) In each notice under Subsection (1) the responsible body shall:
(a) if the notice follows an election under Section 17B-2-214 :
(i) certify the results of the election; and
(ii) describe the boundaries of the new local district; and
(b) certify that all requirements for the creation of a local district have been complied
with.
(3) (a) Within ten days after receiving the notice under Subsection (1), the lieutenant
governor shall issue a certificate of incorporation for the new local district and send a copy of the
certificate to the responsible body.
(b) The area of each local district declared to be incorporated by a certificate of
incorporation issued under this section shall consist of:
(i) if an election was held under Section 17B-2-214 , the area of the new local district as
approved at the election; [or]
(ii) if an election was not required because of Subsection 17B-2-214 (3)(a) or (b), the area
of the proposed local district as described in the petition[.]; or
(iii) if an election was not required because of Subsection 17B-2-214 (3)(c), the area of
the new local district as described in the resolution adopted under Subsection 17B-2-213 (4).
(4) (a) Within 30 days after receiving a certificate of incorporation under Subsection (3),
the responsible body shall file a written notice of the creation of the local district with the State

- 19 -

Tax Commission and the state auditor.
(b) Each notice to the State Tax Commission under Subsection (4)(a) shall be
accompanied by:
(i) a copy of the lieutenant governor's certificate of incorporation; and
(ii) a map showing the boundaries of the local district, prepared and certified by a
licensed surveyor.
(5) Upon the lieutenant governor's issuance of the certificate of incorporation, the local
district is created and incorporated.
(6) A local district shall be conclusively presumed to be lawfully incorporated if no
challenge to the existence or incorporation of the local district is filed in district court within 90
days after the lieutenant governor issues a certificate of incorporation.
Section 11. Section 17B-2-216 is amended to read:
17B-2-216. Costs and expenses of creating local district.
(1) Except as provided in Subsection (2), each county whose unincorporated area
includes and each municipality whose boundaries include some or all of the proposed local
district shall bear their respective costs and expenses associated with the procedure under this
part for creating a local district.
(2) Within a year after its creation, each local district shall reimburse the costs and
expenses associated with the preparation and certification of the map of the local district under
Subsection 17B-2-215 [(3)](4)(b)(ii).
Section 12. Section 17B-2-502 is amended to read:
17B-2-502. Annexation of area outside local district.
(1) An area outside the boundaries of a local district may be annexed to the local district,
as provided in this part, in order to provide to the area a service that the local district provides.
(2) The area proposed to be annexed:
(a) may consist of one or more noncontiguous areas; and
(b) need not be adjacent to the boundaries of the proposed annexing local district.
(3) With respect to a local district in the creation of which an election was not required

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under Subsection 17B-2-214 (3)(c):
(a) an unincorporated area of a county may not be annexed to the local district unless,
after annexation, at least a majority of the unincorporated area of the county will be included in
the local district; and
(b) the annexation of any part of an area within a municipality shall include all of the
area within the municipality.
Section 13. Section 17B-2-503 is amended to read:
17B-2-503. Initiation of annexation process -- Petition and resolution.
(1) Except as provided in Sections 17B-2-515 [and], 17B-2-515.5 , and 17B-2-516 , the
process to annex an area to a local district may be initiated by:
(a) (i) for a district whose board of trustees is elected by electors based on the acre-feet of
water allotted to the land owned by the elector and subject to Subsection (2), a petition signed by
the owners of all of the acre-feet of water allotted to the land proposed for annexation; or
(ii) for all other districts:
(A) a petition signed by the owners of private real property that:
(I) is located within the area proposed to be annexed;
(II) covers at least 10% of the total private land area within the entire area proposed to be
annexed and within each applicable area; and
(III) is equal in assessed value to at least 10% of the assessed value of all private real
property within the entire area proposed to be annexed and within each applicable area; or
(B) a petition signed by registered voters residing within the entire area proposed to be
annexed and within each applicable area equal in number to at least 10% of the number of votes
cast within the entire area proposed to be annexed and within each applicable area, respectively,
for the office of governor at the last regular general election before the filing of the petition;
(b) a resolution adopted by the legislative body of each county whose unincorporated
area includes and each municipality whose boundaries include any of the area proposed to be
annexed; or
(c) a resolution adopted by the board of trustees of the proposed annexing local district if,

- 21 -

for at least 12 consecutive months immediately preceding adoption of the resolution, the local
district has provided:
(i) retail service to the area; or
(ii) a wholesale service to a provider of the same service that has provided that service on
a retail basis to the area.
(2) If an association representing all acre-feet of water allotted to the land that is
proposed to be annexed to a local district signs a petition under Subsection (1)(a)(i), pursuant to a
proper exercise of authority as provided in the bylaws or other rules governing the association,
the petition shall be considered to have been signed by the owners of all of the acre-feet of water
allotted to the land proposed for annexation, even though less than all of the owners within the
association consented to the association signing the petition.
(3) Each petition and resolution under Subsection (1) shall:
(a) describe the area proposed to be annexed; and
(b) be accompanied by a map of the boundaries of the area proposed to be annexed.
(4) The legislative body of each county and municipality that adopts a resolution under
Subsection (1)(b) shall, within five days after adopting the resolution, mail or deliver a copy of
the resolution to the board of trustees of the proposed annexing local district.
Section 14. Section 17B-2-514 is amended to read:
17B-2-514. Resolution approving an annexation -- Notice of annexation -- When
annexation complete.
(1) (a) Subject to Subsection (1)(b), the local district board shall adopt a resolution
annexing the area proposed to be annexed or rejecting the proposed annexation within 30 days
after:
(i) expiration of the protest period under Subsection 17B-2-512 (2), if sufficient protests
to require an election are not filed;
(ii) for a petition that meets the requirements of Subsection 17B-2-513 (1):
(A) a public hearing under Section 17B-2-509 is held, if the board chooses or is required
to hold a public hearing under Subsection 17B-2-513 (2)(a)(ii); or

- 22 -

(B) expiration of the time for submitting a request for public hearing under Subsection
17B-2-513 (2)(a)(ii)(B), if no request is submitted and the board chooses not to hold a public
hearing.
(b) If the local district has entered into an agreement with the United States that requires
the consent of the United States for an annexation of territory to the district, an annexation under
this part may not occur until the written consent of the United States is obtained and filed with
the board of trustees.
(2) (a) Within ten days after adoption of an annexation resolution under Subsection (1),
Subsection 17B-2-512 (3)(c)(i), or Section 17B-2-515 , or a boundary adjustment resolution under
Subsection 17B-2-516 (4), the board shall:
[(a)] (i) file a written notice of annexation with the State Tax Commission, the lieutenant
governor, and the assessor and recorder of the county in which the annexed area is located,
accompanied by an accurate map or legal description of the boundaries of the area being
annexed, adequate for purposes of the county assessor and recorder; and
[(b)] (ii) prepare and execute a certificate acknowledging that the notices required under
Subsection (2)(a) have been filed, and maintain the certificate with the district records.
(b) (i) As soon as practicable after receiving the notice under Subsection 10-2-425 (2) of a
municipal annexation that causes an automatic annexation to a local district under Section
17B-2-515.5 , the board shall file a notice with the lieutenant governor.
(ii) The notice required under Subsection (2)(b)(i) shall:
(A) state that an area outside the boundaries of the local district is being automatically
annexed to the local district under Section 17B-2-515.5 because of a municipal annexation under
Title 10, Chapter 2, Part 4, Annexation; and
(B) be accompanied by an accurate map depicting the boundaries of the area to be
annexed or a legal description of the area to be annexed, adequate for purposes of the county
assessor and recorder.
(iii) The lieutenant governor shall issue a certificate of annexation as provided in
Subsection 10-1-117 (3)(b).

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(iv) The annexation shall be complete upon the lieutenant governor's issuance of the
certificate of annexation under Subsection 10-1-117 (3)(b).
(3) The annexation shall be complete on the date indicated in the certificate required
under Subsection (2)(b) as the date on which the board filed the notices required under
Subsection (2)(a).
Section 15. Section 17B-2-515.5 is enacted to read:
17B-2-515.5. Automatic annexation to a district providing fire protection,
paramedic, and emergency services.
(1) An area outside the boundaries of a local district that is annexed to a municipality or
added to a municipality by a boundary adjustment under Title 10, Chapter 2, Part 4, Annexation,
is automatically annexed to the local district if:
(a) the local district provides fire protection, paramedic, and emergency services;
(b) an election for the creation of the local district was not required because of
Subsection 17B-2-214 (3)(c); and
(c) before the municipal annexation or boundary adjustment, the entire municipality that
is annexing the area or adding the area by boundary adjustment was included within the local
district.
(2) The effective date of an annexation under this section is governed by Subsection
17B-2-514 (2)(b)(iv).
Section 16. Section 17B-2-601 is amended to read:
17B-2-601. Withdrawal of area from local district -- Automatic withdrawal in
certain circumstances -- Definitions.
(1) An area within the boundaries of a local district may be withdrawn from the local
district as provided in this part.
(2) (a) An area within the boundaries of a local district is automatically withdrawn from
the local district by the annexation of the area to a municipality or the adding of the area to a
municipality by boundary adjustment under Title 10, Chapter 2, Part 4, Annexation, if:
(i) the local district provides fire protection, paramedic, and emergency services;

- 24 -

(ii) an election for the creation of the local district was not required because of
Subsection 17B-2-214 (3)(c); and
(iii) before annexation or boundary adjustment, the boundaries of the local district do not
include any of the annexing municipality.
(b) The effective date of a withdrawal under this Subsection (2) is governed by
Subsection 17B-2-610 (1)(b).
[(2)] (3) In addition to those definitions in Section 17B-2-101 , as used in this part,
"receiving entity" means an entity that will, following a withdrawal, provide to the withdrawn
area the service previously provided by the local district.
Section 17. Section 17B-2-603 is amended to read:
17B-2-603. Initiation of withdrawal process -- Notice of petition.
(1) [The] Except as provided in Section 17B-2-603.5 , the process to withdraw an area
from a local district may be initiated:
(a) for a local district funded predominantly by revenues from property taxes or service
charges other than those based upon acre-feet of water:
(i) by a petition signed by the owners of private real property that:
(A) is located within the area proposed to be withdrawn;
(B) covers at least 51% of the total private land within the area proposed to be
withdrawn; and
(C) is equal in taxable value to at least 51% of the taxable value of all private real
property within the area proposed to be withdrawn;
(ii) by a petition signed by registered voters residing within the area proposed to be
withdrawn equal in number to at least 67% of the number of votes cast in the same area for the
office of governor at the last regular general election before the filing of the petition;
(iii) by a resolution adopted by the board of trustees of the local district in which the area
proposed to be withdrawn is located, which:
(A) states the reasons for withdrawal; and
(B) is accompanied by a general description of the area proposed to be withdrawn; or

- 25 -

(iv) by a resolution to file a petition with the local district to withdraw from the local
district all or a specified portion of the area within a municipality or county, adopted by the
governing body of a municipality that has within its boundaries an area located within the
boundaries of a local district, or by the governing body of a county that has within its boundaries
an area located within the boundaries of a local district that is located in more than one county,
which petition of the governing body shall be filed with the board of trustees only if a written
request to petition the board of trustees to withdraw an area from the local district has been filed
with the governing body of the municipality, or county, and the request has been signed by
registered voters residing within the boundaries of the area proposed for withdrawal equal in
number to at least 51% of the number of votes cast in the same area for the office of governor at
the last regular general election before the filing of the petition;
(b) for a local district whose board of trustees is elected by electors based on the acre-feet
of water allotted to the land owned by the elector:
(i) in the same manner as provided in Subsection (1)(a)(iii) or Subsection (1)(a)(iv); or
(ii) by a petition signed by the owners of at least 67% of the acre-feet of water allotted to
the land proposed to be withdrawn; or
(c) for a local district funded predominantly by revenues other than property taxes,
service charges, or assessments based upon an allotment of acre-feet of water:
(i) in the same manner as provided in Subsection (1)(a)(iii) or Subsection (1)(a)(iv); or
(ii) by a petition signed by the registered voters residing within the entire area proposed
to be withdrawn, which area shall be comprised of an entire unincorporated area within the local
district or an entire municipality within a local district, or a combination thereof, equal in number
to at least 67% of the number of votes cast within the entire area proposed to be withdrawn for
the office of governor at the last regular general election before the filing of the petition.
(2) Prior to soliciting any signatures on a petition under Subsection (1), the sponsors of
the petition shall:
(a) notify the local district board with which the petition is intended to be filed that the
sponsors will be soliciting signatures for a petition; and

- 26 -

(b) mail a copy of the petition to the local district board.
Section 18. Section 17B-2-603.5 is enacted to read:
17B-2-603.5. Withdrawal of municipality in certain districts providing fire
protection, paramedic, and emergency services.
(1) (a) The process to withdraw an area from a local district may be initiated by a
resolution adopted by the legislative body of a municipality that is entirely within the boundaries
of a local district:
(i) that provides fire protection, paramedic, and emergency services; and
(ii) in the creation of which an election was not required because of Subsection
17B-2-214 (3)(c).
(b) Within ten days after adopting a resolution under Subsection (1)(a), the municipal
legislative body shall submit to the board of trustees of the local district written notice of the
adoption of the resolution, accompanied by a copy of the resolution.
(2) If a resolution is adopted under Subsection (1)(a), the municipal legislative body shall
hold an election at the next municipal general election that is more than 60 days after adoption of
the resolution on the question of whether the municipality should withdraw from the local
district.
(3) If a majority of those voting on the question of withdrawal at an election held under
Subsection (2) vote in favor of withdrawal, the municipality shall be withdrawn from the local
district.
(4) (a) Within ten days after the canvass of an election at which a withdrawal under this
section is submitted to voters, the municipal legislative body shall send written notice to the
board of the local district from which the municipality is proposed to withdraw.
(b) Each notice under Subsection (4)(a) shall:
(i) state the results of the withdrawal election; and
(ii) if the withdrawal was approved by voters, be accompanied by a map or legal
description of the area to be withdrawn, adequate for purposes of the county assessor and
recorder.

- 27 -

(5) The effective date of a withdrawal under this section is governed by Subsection
17B-2-610 (1)(b).
Section 19. Section 17B-2-610 is amended to read:
17B-2-610. Notice of withdrawal -- Contest period -- Judicial review.
(1) (a) (i) Within ten days after adopting a resolution approving a withdrawal under
Section 17B-2-608 , the board of trustees shall file a written notice of the withdrawal with the
State Tax Commission and the assessor and recorder of each county in which any part of the
withdrawn area is located, accompanied by a copy of the resolution approving the withdrawal, an
accurate map depicting the boundaries of the withdrawn area or a legal description of the
withdrawn area, adequate for purposes of the county assessor and recorder.
[(b)] (ii) Upon the filing of the notices required by Subsection (1)(a), the withdrawal
shall be effective, subject to the conditions of the withdrawal resolution.
(b) (i) As soon as practicable after receiving a notice under Subsection 10-2-425 (2) of an
automatic withdrawal under Subsection 17B-2-601 (2) or after receiving notice of a withdrawal of
a municipality from a local district under Section 17B-2-603.5 , the board of trustees shall file a
written notice of the withdrawal with the lieutenant governor.
(ii) The notice required under Subsection (1)(b)(i) shall be accompanied by an accurate
map depicting the boundaries of the withdrawn area or a legal description of the withdrawn area,
adequate for purposes of the county assessor and recorder.
(iii) Within ten days after receiving the notice of a withdrawal of a municipality from a
local district under Section 17B-2-603.5 , the lieutenant governor shall:
(A) issue a certificate of withdrawal and send a copy of the certificate to the local district
board, the State Tax Commission, the state auditor, and the assessor and recorder of each county
in which any part of the withdrawn area is located; and
(B) send a copy of the notice of withdrawal, including the accompanying map or legal
description, to the State Tax Commission and the assessor and recorder of each county in which
any part of the withdrawn area is located.
(iv) (A) An automatic withdrawal under Subsection 17B-2-601 (2) shall be effective upon

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the lieutenant governor's issuance of a certificate of withdrawal under Subsection 10-1-117 (3)(b).
(B) A withdrawal of a municipality from a local district under Section 17B-2-603.5 shall
be effective upon the lieutenant governor's issuance of a certificate of withdrawal under
Subsection (1)(b)(iii).
(2) The local district may provide for the publication of any resolution approving or
denying the withdrawal of an area in a newspaper of general circulation in the area proposed for
withdrawal. In lieu of publishing the entire resolution, the local district may publish a notice of
withdrawal or denial of withdrawal, containing:
(a) the name of the local district;
(b) a description of the area proposed for withdrawal;
(c) a brief explanation of the grounds on which the board of trustees determined to
approve or deny the withdrawal; and
(d) the times and place where a copy of the resolution may be examined, which shall be
at the place of business of the local district, identified in the notice, during regular business hours
of the local district as described in the notice and for a period of at least 30 days after the
publication of the notice.
(3) Any sponsor of the petition or receiving entity may contest the board's decision to
deny a withdrawal of an area from the local district by submitting a request, within 60 days after
the resolution is adopted under Section 17B-2-608 , to the board of trustees, suggesting terms or
conditions to mitigate or eliminate the conditions upon which the board of trustees based its
decision to deny the withdrawal.
(4) Within 60 days after the request under Subsection (3) is submitted to the board of
trustees, the board may consider the suggestions for mitigation and adopt a resolution approving
or denying the request in the same manner as provided in Section 17B-2-608 with respect to the
original resolution denying the withdrawal and file a notice of the action as provided in
Subsection (1).
(5) (a) Any person in interest may seek judicial review of:
(i) the board of trustees' decision to withdraw an area from the local district;

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(ii) the terms and conditions of a withdrawal; or
(iii) the board's decision to deny a withdrawal.
(b) Judicial review under this Subsection (5) shall be initiated by filing an action in the
district court in the county in which a majority of the area proposed to be withdrawn is located:
(i) if the resolution approving or denying the withdrawal is published under Subsection
(2), within 60 days after the publication or after the board of trustees' denial of the request under
Subsection (4);
(ii) if the resolution is not published pursuant to Subsection (2), within 60 days after the
resolution approving or denying the withdrawal is adopted; or
(iii) if a request is submitted to the board of trustees of a local district under Subsection
(3), and the board adopts a resolution under Subsection (4), within 60 days after the board adopts
a resolution under Subsection (4) unless the resolution is published under Subsection (2), in
which event the action must be filed within 60 days after the publication.
(c) A court in which an action is filed under this Subsection (5) may not overturn, in
whole or in part, the board of trustees' decision to approve or reject the withdrawal unless:
(i) the court finds the board of trustees' decision to be arbitrary or capricious; or
(ii) the court finds that the board materially failed to follow the procedures set forth in
this part.
(d) A court may award costs and expenses of an action under this section, including
reasonable attorney's fees, to the prevailing party.
(6) After the applicable contest period under Subsection (3) or (5), no person may contest
the board of trustees' approval or denial of withdrawal for any cause.
Section 20. Section 59-2-924 is amended to read:
59-2-924. Report of valuation of property to county auditor and commission --
Transmittal by auditor to governing bodies -- Certified tax rate -- Adoption of tentative
budget.
(1) (a) Before June 1 of each year, the county assessor of each county shall deliver to the
county auditor and the commission the following statements:

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(i) a statement containing the aggregate valuation of all taxable property in each taxing
entity; and
(ii) a statement containing the taxable value of any additional personal property
estimated by the county assessor to be subject to taxation in the current year.
(b) The county auditor shall, on or before June 8, transmit to the governing body of each
taxing entity:
(i) the statements described in Subsections (1)(a)(i) and (ii);
(ii) an estimate of the revenue from personal property;
(iii) the certified tax rate; and
(iv) all forms necessary to submit a tax levy request.
(2) (a) (i) The "certified tax rate" means a tax rate that will provide the same ad valorem
property tax revenues for a taxing entity as were collected by that taxing entity for the prior year.
(ii) For purposes of this Subsection (2), "ad valorem property tax revenues" do not
include:
(A) collections from redemptions;
(B) interest; and
(C) penalties.
(iii) Except as provided in Subsection (2)(a)(iv), the certified tax rate shall be calculated
by dividing the ad valorem property tax revenues collected for the prior year by the taxing entity
by the taxable value established in accordance with Section 59-2-913 .
(iv) The certified tax rates for the taxing entities described in this Subsection (2)(a)(iv)
shall be calculated as follows:
(A) except as provided in Subsection (2)(a)(iv)(B), for new taxing entities the certified
tax rate is zero;
(B) for each municipality incorporated on or after July 1, 1996, the certified tax rate is:
(I) in a county of the first, second, or third class, the levy imposed for municipal-type
services under Sections 17-34-1 and 17-36-9 ; and
(II) in a county of the fourth, fifth, or sixth class, the levy imposed for general county

- 31 -

purposes and such other levies imposed solely for the municipal-type services identified in
Section 17-34-1 and Subsection 17-36-3 (22);
(C) for debt service voted on by the public, the certified tax rate shall be the actual levy
imposed by that section, except that the certified tax rates for the following levies shall be
calculated in accordance with Section 59-2-913 and this section:
(I) school leeways provided for under Sections 11-2-7 , 53A-16-110 , 53A-17a-125 ,
53A-17a-127 , 53A-17a-134 , 53A-17a-143 , 53A-17a-145 , and 53A-21-103 ; and
(II) levies to pay for the costs of state legislative mandates or judicial or administrative
orders under Section 59-2-906.3 .
(v) (A) A judgment levy imposed under Section 59-2-1328 or Section 59-2-1330 shall be
established at that rate which is sufficient to generate only the revenue required to satisfy one or
more eligible judgments, as defined in Section 59-2-102 .
(B) The ad valorem property tax revenue generated by the judgment levy shall not be
considered in establishing the taxing entity's aggregate certified tax rate.
(b) (i) For the purpose of calculating the certified tax rate, the county auditor shall use the
taxable value of property on the assessment roll.
(ii) For purposes of Subsection (2)(b)(i), the taxable value of property on the assessment
roll does not include new growth as defined in Subsection (2)(b)(iii).
(iii) "New growth" means:
(A) the difference between the increase in taxable value of the taxing entity from the
previous calendar year to the current year; minus
(B) the amount of an increase in taxable value described in Subsection (2)(b)(iv).
(iv) Subsection (2)(b)(iii)(B) applies to the following increases in taxable value:
(A) the amount of increase to locally assessed real property taxable values resulting from
factoring, reappraisal, or any other adjustments; or
(B) the amount of an increase in the taxable value of property assessed by the
commission under Section 59-2-201 resulting from a change in the method of apportioning the
taxable value prescribed by:

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(I) the Legislature;
(II) a court;
(III) the commission in an administrative rule; or
(IV) the commission in an administrative order.
(c) Beginning January 1, 1997, if a taxing entity receives increased revenues from
uniform fees on tangible personal property under Section 59-2-404 , 59-2-405 , or 59-2-405.1 as a
result of any county imposing a sales and use tax under Chapter 12, Part 11, County Option Sales
and Use Tax, the taxing entity shall decrease its certified tax rate to offset the increased revenues.
(d) (i) Beginning July 1, 1997, if a county has imposed a sales and use tax under Chapter
12, Part 11, County Option Sales and Use Tax, the county's certified tax rate shall be:
(A) decreased on a one-time basis by the amount of the estimated sales tax revenue to be
distributed to the county under Subsection 59-12-1102 (3); and
(B) increased by the amount necessary to offset the county's reduction in revenue from
uniform fees on tangible personal property under Section 59-2-404 , 59-2-405 , or 59-2-405.1 as a
result of the decrease in the certified tax rate under Subsection (2)(d)(i)(A).
(ii) The commission shall determine estimates of sales tax distributions for purposes of
Subsection (2)(d)(i).
(e) Beginning January 1, 1998, if a municipality has imposed an additional resort
communities sales tax under Section 59-12-402 , the municipality's certified tax rate shall be
decreased on a one-time basis by the amount necessary to offset the first 12 months of estimated
revenue from the additional resort communities sales tax imposed under Section 59-12-402 .
(f) For the calendar year beginning on January 1, 1999, and ending on December 31,
1999, a taxing entity's certified tax rate shall be adjusted by the amount necessary to offset the
adjustment in revenues from uniform fees on tangible personal property under Section
59-2-405.1 as a result of the adjustment in uniform fees on tangible personal property under
Section 59-2-405.1 enacted by the Legislature during the 1998 Annual General Session.
(g) For purposes of Subsections (2)(h) through (j):
(i) "1998 actual collections" means the amount of revenues a taxing entity actually

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collected for the calendar year beginning on January 1, 1998, under Section 59-2-405 for:
(A) motor vehicles required to be registered with the state that weigh 12,000 pounds or
less; and
(B) state-assessed commercial vehicles required to be registered with the state that weigh
12,000 pounds or less.
(ii) "1999 actual collections" means the amount of revenues a taxing entity actually
collected for the calendar year beginning on January 1, 1999, under Section 59-2-405.1 .
(h) For the calendar year beginning on January 1, 2000, the commission shall make the
following adjustments:
(i) the commission shall make the adjustment described in Subsection (2)(i)(i) if, for the
calendar year beginning on January 1, 1999, a taxing entity's 1998 actual collections were greater
than the sum of:
(A) the taxing entity's 1999 actual collections; and
(B) any adjustments the commission made under Subsection (2)(f);
(ii) the commission shall make the adjustment described in Subsection (2)(i)(ii) if, for the
calendar year beginning on January 1, 1999, a taxing entity's 1998 actual collections were greater
than the taxing entity's 1999 actual collections, but the taxing entity's 1998 actual collections
were less than the sum of:
(A) the taxing entity's 1999 actual collections; and
(B) any adjustments the commission made under Subsection (2)(f); and
(iii) the commission shall make the adjustment described in Subsection (2)(i)(iii) if, for
the calendar year beginning on January 1, 1999, a taxing entity's 1998 actual collections were less
than the taxing entity's 1999 actual collections.
(i) (i) For purposes of Subsection (2)(h)(i), the commission shall increase a taxing entity's
certified tax rate under this section and a taxing entity's certified revenue levy under Section
59-2-906.1 by the amount necessary to offset the difference between:
(A) the taxing entity's 1998 actual collections; and
(B) the sum of:

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(I) the taxing entity's 1999 actual collections; and
(II) any adjustments the commission made under Subsection (2)(f).
(ii) For purposes of Subsection (2)(h)(ii), the commission shall decrease a taxing entity's
certified tax rate under this section and a taxing entity's certified revenue levy under Section
59-2-906.1 by the amount necessary to offset the difference between:
(A) the sum of:
(I) the taxing entity's 1999 actual collections; and
(II) any adjustments the commission made under Subsection (2)(f); and
(B) the taxing entity's 1998 actual collections.
(iii) For purposes of Subsection (2)(h)(iii), the commission shall decrease a taxing
entity's certified tax rate under this section and a taxing entity's certified revenue levy under
Section 59-2-906.1 by the amount of any adjustments the commission made under Subsection
(2)(f).
(j) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, for
purposes of Subsections (2)(f) through (i), the commission may make rules establishing the
method for determining a taxing entity's 1998 actual collections and 1999 actual collections.
(k) (i) (A) For fiscal year 2000, the certified tax rate of each county required under
Subsection 17-34-1 (4)(a) to provide advanced life support and paramedic services to the
unincorporated area of the county shall be decreased by the amount necessary to reduce revenues
in that fiscal year by an amount equal to the difference between the amount the county budgeted
in its 2000 fiscal year budget for advanced life support and paramedic services countywide and
the amount the county spent during fiscal year 2000 for those services, excluding amounts spent
from a municipal services fund for those services.
(B) For fiscal year 2001, the certified tax rate of each county to which Subsection
(2)(k)(i)(A) applies shall be decreased by the amount necessary to reduce revenues in that fiscal
year by the amount that the county spent during fiscal year 2000 for advanced life support and
paramedic services countywide, excluding amounts spent from a municipal services fund for
those services.

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(ii) (A) A city or town located within a county of the first class to which Subsection
(2)(k)(i) applies may increase its certified tax rate by the amount necessary to generate within the
city or town the same amount of revenues as the county would collect from that city or town if
the decrease under Subsection (2)(k)(i) did not occur.
(B) An increase under Subsection (2)(k)(ii)(A), whether occurring in a single fiscal year
or spread over multiple fiscal years, is not subject to the notice and hearing requirements of
Sections 59-2-918 and 59-2-919 .
(l) (i) The certified tax rate of each county required under Subsection 17-34-1 (4)(b) to
provide detective investigative services to the unincorporated area of the county shall be
decreased:
(A) in fiscal year 2001 by the amount necessary to reduce revenues in that fiscal year by
at least $4,400,000; and
(B) in fiscal year 2002 by the amount necessary to reduce revenues in that fiscal year by
an amount equal to the difference between $9,258,412 and the amount of the reduction in
revenues under Subsection (2)(l)(i)(A).
(ii) (A) (I) Beginning with municipal fiscal year 2002, a city or town located within a
county to which Subsection (2)(l)(i) applies may increase its certified tax rate to generate within
the city or town the same amount of revenue as the county would have collected during county
fiscal year 2001 from within the city or town except for Subsection (2)(l)(i)(A).
(II) Beginning with municipal fiscal year 2003, a city or town located within a county to
which Subsection (2)(l)(i) applies may increase its certified tax rate to generate within the city or
town the same amount of revenue as the county would have collected during county fiscal year
2002 from within the city or town except for Subsection (2)(l)(i)(B).
(B) (I) Except as provided in Subsection (2)(l)(ii)(B)(II), an increase in the city or town's
certified tax rate under Subsection (2)(l)(ii)(A), whether occurring in a single fiscal year or
spread over multiple fiscal years, is subject to the notice and hearing requirements of Sections
59-2-918 and 59-2-919 .
(II) For an increase under this Subsection (2)(l)(ii) that generates revenue that does not

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exceed the same amount of revenue as the county would have collected except for Subsection
(2)(l)(i), the requirements of Sections 59-2-918 and 59-2-919 do not apply if the city or town:
(aa) publishes a notice that meets the size, type, placement, and frequency requirements
of Section 59-2-919 , reflects that the increase is a shift of a tax from one imposed by the county
to one imposed by the city or town, and explains how the revenues from the tax increase will be
used; and
(bb) holds a public hearing on the tax shift that may be held in conjunction with the city
or town's regular budget hearing.
(m) (i) This Subsection (2)(m) applies to each county that:
(A) establishes a countywide special service district under Title 17A, Chapter 2, Part 13,
Utah Special Service District Act, to provide jail service, as provided in Subsection
17A-2-1304 (1)(a)(x); and
(B) levies a property tax on behalf of the special service district under Section
17A-2-1322 .
(ii) (A) The certified tax rate of each county to which this Subsection (2)(m) applies shall
be decreased by the amount necessary to reduce county revenues by the same amount of revenues
that will be generated by the property tax imposed on behalf of the special service district.
(B) Each decrease under Subsection (2)(m)(ii)(A) shall occur contemporaneously with
the levy on behalf of the special service district under Section 17A-2-1322 .
(n) (i) As used in this Subsection (2)(n):
(A) "Annexing county" means a county whose unincorporated area is included within a
fire district by annexation.
(B) "Annexing municipality" means a municipality whose area is included within a fire
district by annexation.
(C) "Equalized fire protection tax rate" means the tax rate that results from:
(I) calculating, for each participating county and each participating municipality, the
property tax revenue necessary to cover all of the costs associated with providing fire protection,
paramedic, and emergency services:

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(aa) for a participating county, in the unincorporated area of the county; and
(bb) for a participating municipality, in the municipality; and
(II) adding all the amounts calculated under Subsection (2)(n)(i)(C)(I) for all
participating counties and all participating municipalities and then dividing that sum by the
aggregate taxable value of the property, as adjusted in accordance with Section 59-2-913 :
(aa) for participating counties, in the unincorporated area of all participating counties;
and
(bb) for participating municipalities, in all the participating municipalities.
(D) "Fire district" means a county service area under Title 17A, Chapter 2, Part 4,
County Service Area Act, in the creation of which an election was not required under Subsection
17B-2-214 (3)(c).
(E) "Fire protection tax rate" means:
(I) for an annexing county, the property tax rate that, when applied to taxable property in
the unincorporated area of the county, generates enough property tax revenue to cover all the
costs associated with providing fire protection, paramedic, and emergency services in the
unincorporated area of the county; and
(II) for an annexing municipality, the property tax rate that generates enough property tax
revenue in the municipality to cover all the costs associated with providing fire protection,
paramedic, and emergency services in the municipality.
(F) "Participating county" means a county whose unincorporated area is included within
a fire district at the time of the creation of the fire district.
(G) "Participating municipality" means a municipality whose area is included within a
fire district at the time of the creation of the fire district.
(ii) In the first year following creation of a fire district, the certified tax rate of each
participating county and each participating municipality shall be decreased by the amount of the
equalized fire protection tax rate.
(iii) In the first year following annexation to a fire district, the certified tax rate of each
annexing county and each annexing municipality shall be decreased by the fire protection tax

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rate.
(iv) Each tax levied under this section by a fire district shall be considered to be levied
by:
(A) each participating county and each annexing county for purposes of the county's tax
limitation under Section 59-2-908 ; and
(B) each participating municipality and each annexing municipality for purposes of the
municipality's tax limitation under Section 10-5-112 , for a town, or Section 10-6-133 , for a city.
(3) (a) On or before June 22, each taxing entity shall annually adopt a tentative budget.
(b) If the taxing entity intends to exceed the certified tax rate, it shall notify the county
auditor of:
(i) its intent to exceed the certified tax rate; and
(ii) the amount by which it proposes to exceed the certified tax rate.
(c) The county auditor shall notify all property owners of any intent to exceed the
certified tax rate in accordance with Subsection 59-2-919 (2).
(4) (a) The taxable value for the base year under Subsection 17B-4-102 (4) shall be
reduced for any year to the extent necessary to provide a redevelopment agency established under
Title 17B, Chapter 4, Redevelopment Agencies Act, with approximately the same amount of
money the agency would have received without a reduction in the county's certified tax rate if:
(i) in that year there is a decrease in the certified tax rate under Subsection (2)(c) or
(2)(d)(i);
(ii) the amount of the decrease is more than 20% of the county's certified tax rate of the
previous year; and
(iii) the decrease results in a reduction of the amount to be paid to the agency under
Section 17B-4-1003 or 17B-4-1004 .
(b) The taxable value of the base year under Subsection [ 17B-4-101 ] 17B-4-102 (4) shall
be increased in any year to the extent necessary to provide a redevelopment agency with
approximately the same amount of money as the agency would have received without an increase
in the certified tax rate that year if:

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(i) in that year the taxable value for the base year under Subsection [ 17B-4-101 ]
17B-4-102 (4) is reduced due to a decrease in the certified tax rate under Subsection (2)(c) or
(2)(d)(i); and
(ii) The certified tax rate of a city, school district, or special district increases
independent of the adjustment to the taxable value of the base year.
(c) Notwithstanding a decrease in the certified tax rate under Subsection (2)(c) or
(2)(d)(i), the amount of money allocated and, when collected, paid each year to a redevelopment
agency established under Title 17B, Chapter 4, Redevelopment Agencies Act, for the payment of
bonds or other contract indebtedness, but not for administrative costs, may not be less than that
amount would have been without a decrease in the certified tax rate under Subsection (2)(c) or
(2)(d)(i).
Section 21. Coordination clause.
(1) If this bill and H.B. 95, Annexation of Unincorporated County Islands Into Cities,
both pass, it is the intent of the Legislature that, in preparing the Utah Code database for
publication, the Office of Legislative Research and General Counsel change Section 10-2-428, as
enacted in H.B. 95, to read:
' 10-2-428. Neither annexation nor boundary adjustment has an effect on the
boundaries of most independent special districts and local districts.
Except as provided in Section 17B-2-515.5 and Subsection 17B-2-601(2), the annexation
of an unincorporated area by a municipality or the adjustment of a boundary shared by
municipalities does not affect the boundaries of an independent special district under Title 17A,
Chapter 2, Independent Special Districts, or a local district under Title 17B, Chapter 2, Local
Districts.'
(2) If this bill and S.B. 18, Lieutenant Governor Certification of Special District and
Local District Annexations, Withdrawals, and Dissolutions, both pass, it is the intent of the
Legislature that, in preparing the Utah Code database for publication, the Office of Legislative
Research and General Counsel:
(a) combine the amendments made by this bill and S.B. 18 to Section 17B-2-514 so that

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Section 17B-2-514 shall read:
' 17B-2-514. Resolution approving an annexation -- Notice of annexation -- When
annexation complete.
(1) (a) Subject to Subsection (1)(b), the local district board shall adopt a resolution
[annexing] approving the annexation of the area proposed to be annexed or rejecting the
proposed annexation within 30 days after:
(i) expiration of the protest period under Subsection 17B-2-512 (2), if sufficient protests
to require an election are not filed;
(ii) for a petition that meets the requirements of Subsection 17B-2-513 (1):
(A) a public hearing under Section 17B-2-509 is held, if the board chooses or is required
to hold a public hearing under Subsection 17B-2-513 (2)(a)(ii); or
(B) expiration of the time for submitting a request for public hearing under Subsection
17B-2-513 (2)(a)(ii)(B), if no request is submitted and the board chooses not to hold a public
hearing.
(b) If the local district has entered into an agreement with the United States that requires
the consent of the United States for an annexation of territory to the district, [an] a resolution
approving annexation under this part may not [occur] be adopted until the written consent of the
United States is obtained and filed with the board of trustees.
(2) (a) [Within ten] The board shall file a notice with the lieutenant governor:
(i) within 90 days after adoption of [an annexation] a resolution under Subsection (1),
Subsection 17B-2-512 (3)(c)(i), or Section 17B-2-515 [, or a boundary adjustment resolution
under Subsection 17B-2-516 (4), the board shall: (a) file]; and
(ii) as soon as practicable after receiving the notice under Subsection 10-2-425 (2) of a
municipal annexation that causes an automatic annexation to a local district under Section
17B-2-515.5 .
(b) The notice required under Subsection (2)(a) shall:
(i) be accompanied by:
(A) if applicable, a copy of the board resolution approving the annexation; and

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(B) an accurate map depicting the boundaries of the area to be annexed or a legal
description of the area to be annexed, adequate for purposes of the county assessor and recorder;
(ii) for an annexation pursuant to a resolution described in Subsection (2)(a)(i), include a
certification by the local district board that all requirements for the annexation have been
complied with; and
(iii) for an automatic annexation to a local district under Section 17B-2-515.5 , state that
an area outside the boundaries of the local district is being automatically annexed to the local
district under Section 17B-2-515.5 because of a municipal annexation under Title 10, Chapter 2,
Part 4, Annexation.
(c) (i) Within ten days after receiving the notice under Subsection (2)(a)(i), the lieutenant
governor shall:
(A) issue a certificate of annexation and send a copy of the certificate to the local district
board, the State Tax Commission, the state auditor, and the assessor and recorder of each county
in which any part of the annexed area is located; and
(B) send a [written] copy of the notice [of annexation with] under Subsection (2)(a)(i),
including the accompanying map or legal description, to the State Tax Commission[, the
lieutenant governor,] and the assessor and recorder of [the] each county in which any part of the
annexed area is located[, accompanied by an accurate map or legal description of the boundaries
of the area being annexed, adequate for purposes of the county assessor and recorder; and].
[(b) prepare and execute a certificate acknowledging that the notices required under
Subsection (2)(a) have been filed, and maintain the certificate with the district records.]
(ii) The lieutenant governor shall issue a certificate of annexation for an automatic
annexation that is the subject of a notice under Subsection (2)(a)(ii) as provided in Subsection
10-2-117 (3)(b).
(3) The annexation shall be complete [on the date indicated in the certificate required
under Subsection (2)(b) as the date on which the board filed the notices required under
Subsection (2)(a).]:
(a) for an annexation pursuant to a resolution described in Subsection (2)(a)(i), upon the

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lieutenant governor's issuance of the certificate of annexation under Subsection (2)(c)(i); and
(b) for an automatic annexation that is the subject of a notice under Subsection (2)(a)(ii),
upon the lieutenant governor's issuance of the certificate of annexation under Subsection
10-1-117 (3)(b).'; and
(b) combine the amendments made by this bill and S.B. 18 to Section 17B-2-610 so that
Section 17B-2-610 shall read:
' 17B-2-610. Notice of withdrawal -- Contest period -- Judicial review.
(1) (a) [Within ten days after adopting a resolution approving a withdrawal, the] The
board of trustees shall file a written notice of withdrawal with the lieutenant governor:
(i) within ten days after adopting a resolution approving a withdrawal under Section
17B-2-608 ; and
(ii) as soon as practicable after receiving a notice under Subsection 10-2-425 (2) of an
automatic withdrawal under Subsection 17B-2-601 (2) or after receiving notice of a withdrawal of
a municipality from a local district under Section 17B-2-603.5 .
(b) The notice required under Subsection (1)(a) shall:
(i) be accompanied by:
(A) for a withdrawal pursuant to a resolution adopted under Section 17B-2-608 , a copy
of the board resolution approving the withdrawal; and
(B) an accurate map depicting the boundaries of the withdrawn area or a legal description
of the withdrawn area, adequate for purposes of the county assessor and recorder; and
(ii) for a withdrawal pursuant to a resolution adopted under Section 17B-2-608 , include a
certification by the local district board that all requirements for the withdrawal have been
complied with.
(c) Within ten days after receiving the notice of withdrawal under Subsection (1)(a) for a
withdrawal under Section 17B-2-608 or for the withdrawal of a municipality from a local district
under Section 17B-2-603.5 , the lieutenant governor shall:
(i) issue a certificate of withdrawal and send a copy of the certificate to the local district
board, the State Tax Commission, the state auditor, and the assessor and recorder of each county

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in which any part of the withdrawn area is located; and
(ii) send a copy of the notice [of the withdrawal with] under Subsection (1)(a), including
the accompanying map or legal description, to the State Tax Commission and the assessor and
recorder of each county in which any part of the withdrawn area is located[, accompanied by a
copy of the resolution approving the withdrawal, an accurate map depicting the boundaries of the
withdrawn area or a legal description of the withdrawn area, adequate for purposes of the county
assessor and recorder].
[(b)] (2) (a) Upon the [filing of the notices required by Subsection (1)(a)] lieutenant
governor's issuance of the certificate of withdrawal under Subsection (1)(c)(i) for a withdrawal
under Section 17B-2-608 or for the withdrawal of a municipality from a local district under
Section 17B-2-603.5 , the withdrawal shall be effective, subject to the conditions of the
withdrawal resolution, if applicable.
(b) An automatic withdrawal under Subsection 17B-2-601 (2) shall be effective upon the
lieutenant governor's issuance of a certificate of withdrawal under Subsection 10-1-117 (3)(b).
[(2)] (3) The local district may provide for the publication of any resolution approving or
denying the withdrawal of an area in a newspaper of general circulation in the area proposed for
withdrawal. In lieu of publishing the entire resolution, the local district may publish a notice of
withdrawal or denial of withdrawal, containing:
(a) the name of the local district;
(b) a description of the area proposed for withdrawal;
(c) a brief explanation of the grounds on which the board of trustees determined to
approve or deny the withdrawal; and
(d) the times and place where a copy of the resolution may be examined, which shall be
at the place of business of the local district, identified in the notice, during regular business hours
of the local district as described in the notice and for a period of at least 30 days after the
publication of the notice.
[(3)] (4) Any sponsor of the petition or receiving entity may contest the board's decision
to deny a withdrawal of an area from the local district by submitting a request, within 60 days

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after the resolution is adopted under Section 17B-2-608 , to the board of trustees, suggesting
terms or conditions to mitigate or eliminate the conditions upon which the board of trustees
based its decision to deny the withdrawal.
[(4)] (5) Within 60 days after the request under Subsection [(3)] (4) is submitted to the
board of trustees, the board may consider the suggestions for mitigation and adopt a resolution
approving or denying the request in the same manner as provided in Section 17B-2-608 with
respect to the original resolution denying the withdrawal and file a notice of the action as
provided in Subsection (1).
[(5)] (6) (a) Any person in interest may seek judicial review of:
(i) the board of trustees' decision to withdraw an area from the local district;
(ii) the terms and conditions of a withdrawal; or
(iii) the board's decision to deny a withdrawal.
(b) Judicial review under this Subsection [(5)] (6) shall be initiated by filing an action in
the district court in the county in which a majority of the area proposed to be withdrawn is
located:
(i) if the resolution approving or denying the withdrawal is published under Subsection
[(2)] (3), within 60 days after the publication or after the board of trustees' denial of the request
under Subsection [(4)] (5);
(ii) if the resolution is not published pursuant to Subsection [(2)] (3), within 60 days after
the resolution approving or denying the withdrawal is adopted; or
(iii) if a request is submitted to the board of trustees of a local district under Subsection
[(3)] (4), and the board adopts a resolution under Subsection [(4)] (5), within 60 days after the
board adopts a resolution under Subsection [(4)] (5) unless the resolution is published under
Subsection [(2)] (3), in which event the action must be filed within 60 days after the publication.
(c) A court in which an action is filed under this Subsection [(5)] (6) may not overturn, in
whole or in part, the board of trustees' decision to approve or reject the withdrawal unless:
(i) the court finds the board of trustees' decision to be arbitrary or capricious; or
(ii) the court finds that the board materially failed to follow the procedures set forth in

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this part.
(d) A court may award costs and expenses of an action under this section, including
reasonable attorney's fees, to the prevailing party.
[(6)] (7) After the applicable contest period under Subsection [(3) or (5)] (4) or (6), no
person may contest the board of trustees' approval or denial of withdrawal for any cause.'"

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