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Second Substitute S.B. 222

Senator Scott K. Jenkins proposes the following substitute bill:


             1     
LOCAL GOVERNMENT FEASIBILITY AND

             2     
ECONOMIC IMPACT STUDIES

             3     
2004 GENERAL SESSION

             4     
STATE OF UTAH

             5     
Sponsor: Scott K. Jenkins

             6     
             7      LONG TITLE
             8      General Description:
             9          This bill modifies the provisions related to municipalities, counties, and special districts
             10      to require a study before the municipality, county, or special district may expend
             11      monies on facilities or services.
             12      Highlighted Provisions:
             13          This bill:
             14          .    defines terms;
             15          .    requires a study before the approval of the expenditure of monies for facilities or
             16      services;
             17          .    requires the hiring of a feasibility consultant to conduct the study;
             18          .    establishes what is to be included in a study; and
             19          .    provides for a hearing on a study.
             20      Monies Appropriated in this Bill:
             21          None
             22      Other Special Clauses:
             23          None
             24      Utah Code Sections Affected:
             25      ENACTS:



             26          10-1-119, Utah Code Annotated 1953
             27          17-15-28, Utah Code Annotated 1953
             28          17A-1-104, Utah Code Annotated 1953
             29     
             30      Be it enacted by the Legislature of the state of Utah:
             31          Section 1. Section 10-1-119 is enacted to read:
             32          10-1-119. Feasibility and economic impact study.
             33          (1) As used in this section:
             34          (a) "Facility" means any building, structure, or other improvement on real property.
             35          (b) "Feasibility consultant" means a person with expertise in the processes and
             36      economics of local government.
             37          (2) The legislative body of a municipality shall obtain a feasibility and economic
             38      impact study meeting the requirements of Subsection (3) before the legislative body of a
             39      municipality may approve the expenditure of monies for:
             40          (a) the construction, acquisition, lease, or operation of a facility:
             41          (i) (A) that the municipality has not constructed, acquired, leased, or operated before
             42      May 3, 2004; or
             43          (B) for which the municipality has not expended monies before May 3, 2004, including
             44      monies for the planning of the facility; and
             45          (ii) that is not directly related to a facility:
             46          (A) that the municipality constructed, acquired, leased, or operated before May 3,
             47      2004; or
             48          (B) for which the municipality has expended monies before May 3, 2004; or
             49          (b) the provision of a service:
             50          (i) (A) that the municipality has not provided before May 3, 2004; or
             51          (B) for which the municipality has not expended monies before May 3, 2004, including
             52      monies for the planning of the service; and
             53          (ii) that is not directly related to a service:
             54          (A) that the municipality provided before May 3, 2004; or
             55          (B) for which the municipality has expended monies before May 3, 2004.
             56          (3) (a) A municipality shall hire a feasibility consultant to conduct a feasibility and


             57      economic impact study required by Subsection (2) and require the feasibility consultant to:
             58          (i) complete the feasibility study in accordance with this section;
             59          (ii) submit to the municipality's legislative body by no later than 180 days from the date
             60      the feasibility consultant is hired to conduct the feasibility study:
             61          (A) the full written results of the feasibility study; and
             62          (B) a summary of the results that is no longer than one page in length; and
             63          (iii) attend a public hearing described in Subsection (4) to:
             64          (A) present the feasibility study results; and
             65          (B) respond to questions from the public.
             66          (b) (i) A feasibility and economic impact study required by Subsection (2) for a facility
             67      shall include:
             68          (A) for the first five years that the municipality will operate a facility described in
             69      Subsection (2) a projection of:
             70          (I) revenue; and
             71          (II) expenses;
             72          (B) whether the facility described in Subsection (2) meets a need that cannot be met by
             73      facilities operated by private persons;
             74          (C) whether one or more facilities similar to the facility described in Subsection (2) are
             75      operated by private persons within 15 miles of the facility described in Subsection (2); and
             76          (D) if the facility is operated by the municipality, what economic impacts will be
             77      experienced by:
             78          (I) the facilities operated by private persons described in Subsection (3)(b)(i)(C); and
             79          (II) the general market in which the facility described in Subsection (2) will operate.
             80          (ii) A feasibility and economic impact study required under Subsection (2) for the
             81      provision of services shall include:
             82          (A) for the first five years that the municipality will provide the services described in
             83      Subsection (2) projections of:
             84          (I) revenue; and
             85          (II) expenses;
             86          (B) whether provision of the services described in Subsection (2) meets a need that
             87      cannot be met by services provided by private persons;


             88          (C) whether one or more private persons provide services similar to the services
             89      described in Subsection (2) within 15 miles of where the municipality would provide the
             90      services described in Subsection (2); and
             91          (D) if the municipality provides the services described in Subsection (2), what
             92      economic impacts will be experienced by:
             93          (I) the private persons providing services described in Subsection (3)(b)(ii)(C); and
             94          (II) the general market in which the services described in Subsection (2) will be
             95      provided by the municipality.
             96          (4) (a) Upon completion of a feasibility and economic impact study meeting the
             97      requirements of Subsection (3), the municipal legislative body shall at its next regular meeting
             98      schedule at least one public hearing to be held:
             99          (i) (A) not less than 20 days from the day on which the meeting at which the public
             100      hearing is scheduled is held; and
             101          (B) not more than 60 days from the day on which the meeting at which the public
             102      hearing is scheduled is held; and
             103          (ii) for the purpose of allowing the public to:
             104          (A) become informed about the feasibility and economic impact study results;
             105          (B) ask questions of the municipal legislative body about the results of the feasibility
             106      and economic impact study; and
             107          (C) ask questions of the feasibility consultant.
             108          (b) (i) Except as provided in Subsection (4)(b)(ii), the municipality shall publish notice
             109      of the public hearings required under this section at least once a week for three consecutive
             110      weeks in a newspaper of general circulation in the municipality.
             111          (ii) The last publication of notice required under Subsection (4)(b)(i) shall be at least
             112      three days before the first public hearing required under Subsection (4)(a).
             113          (iii) (A) If there is no newspaper of general circulation in the municipality, for each
             114      1,000 residents, the municipality shall post at least one notice of the hearings in a conspicuous
             115      place within the municipality that is likely to give notice of the hearings to the greatest number
             116      of residents of the municipality.
             117          (B) The municipality shall post the notices at least seven days before the public hearing
             118      required under Subsection (4)(a) is held.


             119          Section 2. Section 17-15-28 is enacted to read:
             120          17-15-28. Feasibility and economic impact study.
             121          (1) As used in this section:
             122          (a) "Facility" means any building, structure, or other improvement on real property.
             123          (b) "Feasibility consultant" means a person with expertise in the processes and
             124      economics of local government.
             125          (2) The legislative body of a county shall obtain a feasibility and economic impact
             126      study meeting the requirements of Subsection (3) before the legislative body of a county may
             127      approve the expenditure of monies for:
             128          (a) the construction, acquisition, lease, or operation of a facility:
             129          (i) (A) that the county has not constructed, acquired, leased, or operated before May 3,
             130      2004; or
             131          (B) for which the county has not expended monies before May 3, 2004, including
             132      monies for the planning of the facility; and
             133          (ii) that is not directly related to a facility:
             134          (A) that the county constructed, acquired, leased, or operated before May 3, 2004; or
             135          (B) for which the county has expended monies before May 3, 2004;
             136          (b) the provision of a service:
             137          (i) (A) that the county has not provided before May 3, 2004; or
             138          (B) for which the county has not expended monies before May 3, 2004, including
             139      monies for the planning of the service; and
             140          (ii) that is not directly related to a service:
             141          (A) that the county provided before May 3, 2004; or
             142          (B) for which the county has expended monies before May 3, 2004.
             143          (3) (a) A county shall hire a feasibility consultant to conduct a feasibility and economic
             144      impact study required by Subsection (2) and require the feasibility consultant to:
             145          (i) complete the feasibility study in accordance with this section;
             146          (ii) submit to the county's legislative body by no later than 180 days from the date the
             147      feasibility consultant is hired to conduct the feasibility study:
             148          (A) the full written results of the feasibility study; and
             149          (B) a summary of the results that is no longer than one page in length; and


             150          (iii) attend a public hearing described in Subsection (4) to:
             151          (A) present the feasibility study results; and
             152          (B) respond to questions from the public.
             153          (b) (i) A feasibility and economic impact study required by Subsection (2) for a facility
             154      shall include:
             155          (A) for the first five years that the county will operate a facility described in Subsection
             156      (2) a projection of:
             157          (I) revenue; and
             158          (II) expenses;
             159          (B) whether the facility described in Subsection (2) meets a need that cannot be met by
             160      facilities operated by private persons;
             161          (C) whether one or more facilities similar to the facility described in Subsection (2) are
             162      operated by private persons within 15 miles of the facility described in Subsection (2); and
             163          (D) if the facility is operated by the county, what economic impacts will be
             164      experienced by:
             165          (I) the facilities operated by private persons described in Subsection (3)(b)(i)(C); and
             166          (II) the general market in which the facility described in Subsection (2) will operate.
             167          (ii) A feasibility and economic impact study required under Subsection (2) for the
             168      provision of services shall include:
             169          (A) for the first five years that the county will provide the services described in
             170      Subsection (2) projections of:
             171          (I) revenue; and
             172          (II) expenses;
             173          (B) whether provision of the services described in Subsection (2) meets a need that
             174      cannot be met by services provided by private persons;
             175          (C) whether one or more private persons provide services similar to the services
             176      described in Subsection (2) within 15 miles of where the county would provide the services
             177      described in Subsection (2); and
             178          (D) if the county provides the services described in Subsection (2), what economic
             179      impacts will be experienced by:
             180          (I) the private persons providing services described in Subsection (3)(b)(ii)(C); and


             181          (II) the general market in which the services described in Subsection (2) will be
             182      provided by the county.
             183          (4) (a) Upon completion of a feasibility and economic impact study meeting the
             184      requirements of Subsection (3), the county legislative body shall at its next regular meeting
             185      schedule at least one public hearing to be held:
             186          (i) (A) not less than 20 days from the day on which the meeting at which the public
             187      hearing is scheduled is held; and
             188          (B) not more than 60 days from the day on which the meeting at which the public
             189      hearing is scheduled is held; and
             190          (ii) for the purpose of allowing the public to:
             191          (A) become informed about the feasibility and economic impact study results;
             192          (B) ask questions of the county legislative body about the results of the feasibility and
             193      economic impact study; and
             194          (C) ask questions of the feasibility consultant.
             195          (b) (i) Except as provided in Subsection (4)(b)(ii), the county shall publish notice of the
             196      public hearings required under this section at least once a week for three consecutive weeks in
             197      a newspaper of general circulation in the county.
             198          (ii) The last publication of notice required under Subsection (4)(b)(i) shall be at least
             199      three days before the first public hearing required under Subsection (4)(a).
             200          (iii) (A) If there is no newspaper of general circulation in the county, for each 1,000
             201      residents, the county shall post at least one notice of the hearings in a conspicuous place within
             202      the county that is likely to give notice of the hearings to the greatest number of residents of the
             203      county.
             204          (B) The county shall post the notices at least seven days before the public hearing
             205      required under Subsection (4)(a) is held.
             206          Section 3. Section 17A-1-104 is enacted to read:
             207          17A-1-104. Feasibility and economic impact study.
             208          (1) As used in this section:
             209          (a) "Facility" means any building, structure, or other improvement on real property.
             210          (b) "Feasibility consultant" means a person with expertise in the processes and
             211      economics of local government.


             212          (2) The board of trustees or governing body of a special district shall obtain a
             213      feasibility and economic impact study meeting the requirements of Subsection (3) before the
             214      board of trustees or governing body of the special district may approve the expenditure of
             215      monies for:
             216          (a) the construction, acquisition, lease, or operation of a facility:
             217          (i) (A) that the special district has not constructed, acquired, leased, or operated before
             218      May 3, 2004; or
             219          (B) for which the special district has not expended monies before May 3, 2004,
             220      including monies for the planning of the facility; and
             221          (ii) that is not directly related to a facility:
             222          (A) that the special district constructed, acquired, leased, or operated before May 3,
             223      2004; or
             224          (B) for which the special district has expended monies before May 3, 2004; or
             225          (b) the provision of a service:
             226          (i) (A) that the special district has not provided before May 3, 2004; or
             227          (B) for which the special district has not expended monies before May 3, 2004,
             228      including monies for the planning of the service; and
             229          (ii) that is not directly related to a service:
             230          (A) that the special district provided before May 3, 2004; or
             231          (B) for which the special district has expended monies before May 3, 2004.
             232          (3) (a) A special district shall hire a feasibility consultant to conduct a feasibility and
             233      economic impact study required by Subsection (2) and require the feasibility consultant to:
             234          (i) complete the feasibility study in accordance with this section;
             235          (ii) submit to the special district's board of trustees or governing body by no later than
             236      180 days from the date the feasibility consultant is hired to conduct the feasibility study:
             237          (A) the full written results of the feasibility study; and
             238          (B) a summary of the results that is no longer than one page in length; and
             239          (iii) attend a public hearing described in Subsection (4) to:
             240          (A) present the feasibility study results; and
             241          (B) respond to questions from the public.
             242          (b) (i) A feasibility and economic impact study required by Subsection (2) for a facility


             243      shall include:
             244          (A) for the first five years that the special district will operate a facility described in
             245      Subsection (2) a projection of:
             246          (I) revenue; and
             247          (II) expenses;
             248          (B) whether the facility described in Subsection (2) meets a need that cannot be met by
             249      facilities operated by private persons;
             250          (C) whether one or more facilities similar to the facility described in Subsection (2) are
             251      operated by private persons within 15 miles of the facility described in Subsection (2); and
             252          (D) if the facility is operated by the special district, what economic impacts will be
             253      experienced by:
             254          (I) the facilities operated by private persons described in Subsection (3)(b)(i)(C); and
             255          (II) the general market in which the facility described in Subsection (2) will operate.
             256          (ii) A feasibility and economic impact study required under Subsection (2) for the
             257      provision of services shall include:
             258          (A) for the first five years that the special district will provide the services described in
             259      Subsection (2) projections of:
             260          (I) revenue; and
             261          (II) expenses;
             262          (B) whether provision of the services described in Subsection (2) meets a need that
             263      cannot be met by services provided by private persons;
             264          (C) whether one or more private persons provide services similar to the services
             265      described in Subsection (2) within 15 miles of where the special district would provide the
             266      services described in Subsection (2); and
             267          (D) if the special district provides the services described in Subsection (2), what
             268      economic impacts will be experienced by:
             269          (I) the private persons providing services described in Subsection (3)(b)(ii)(C); and
             270          (II) the general market in which the services described in Subsection (2) will be
             271      provided by the special district.
             272          (4) (a) Upon completion of a feasibility and economic impact study meeting the
             273      requirements of Subsection (3), the special district board of trustees or governing body shall at


             274      its next regular meeting schedule at least one public hearing to be held:
             275          (i) (A) not less than 20 days from the day on which the meeting at which the public
             276      hearing is scheduled is held; and
             277          (B) not more than 60 days from the day on which the meeting at which the public
             278      hearing is scheduled is held; and
             279          (ii) for the purpose of allowing the public to:
             280          (A) become informed about the feasibility and economic impact study results;
             281          (B) ask questions of the special district's board of trustees or governing body about the
             282      results of the feasibility and economic impact study; and
             283          (C) ask questions of the feasibility consultant.
             284          (b) (i) Except as provided in Subsection (4)(b)(ii), the special district shall publish
             285      notice of the public hearings required under this section at least once a week for three
             286      consecutive weeks in a newspaper of general circulation in the special district.
             287          (ii) The last publication of notice required under Subsection (4)(b)(i) shall be at least
             288      three days before the first public hearing required under Subsection (4)(a).
             289          (iii) (A) If there is no newspaper of general circulation in the special district, for each
             290      1,000 residents, the special district shall post at least one notice of the hearings in a
             291      conspicuous place within the special district that is likely to give notice of the hearings to the
             292      greatest number of residents of the special district.
             293          (B) The special district shall post the notices at least seven days before the public
             294      hearing required under Subsection (4)(a) is held.


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