Download Zipped Enrolled WordPerfect HB0014.ZIP
[Introduced][Amended][Status][Bill Documents][Fiscal Note][Bills Directory]
H.B. 14 Enrolled
LONG TITLE
General Description:
This bill modifies provisions related to bond elections.
Highlighted Provisions:
This bill:
. changes the dates by which a legislative body must approve bond election
resolutions and bond proposition language to be used at the election in order to meet
ballot preparation and mailing requirements;
. implements provisional ballot procedures for challenged ballots in bond elections;
. provides that bond elections comply with the general voter registration and voting
procedures contained in the Election Code;
. modifies election administration and canvassing procedures for bond elections to
provide consistency with general election procedures;
. provides that county clerks, municipal clerks, clerks or chief executive officers of
special districts, and business administrators or superintendents of school districts
may act as election officers to conduct and administer bond elections, and to
supervise and administer certain bond and voted leeway elections;
. permits an election officer to appoint or employ agents to assist with conducting and
administering bond elections;
. provides that election officers in bond elections shall conduct their procedures at the
direction of the municipality calling the election;
. clarifies procedures for challenging bond elections and for publishing requirements
for notice of bond elections by newspaper;
. removes procedures for mailing of notice of bond elections by postcard;
. modifies the Election Code to provide consistent procedures for recounts of bond
election results and challenges to bond elections; and
. changes the name of the "Utah Municipal Bond Act" to "Local Government Bonding
Act" to provide consistency in the definition of words commonly used in the Utah
Code;
. renumbers Title 14, Chapter 11, "Local Government Bonding Act"; and
. makes technical changes.
Monies Appropriated in this Bill:
None
Other Special Clauses:
None
Utah Code Sections Affected:
AMENDS:
9-3-409, as enacted by Chapter 309, Laws of Utah 1993
10-7-8, as last amended by Chapter 9, Laws of Utah 2001
10-7-15, as last amended by Chapter 90, Laws of Utah 2002
10-18-302, as last amended by Chapter 270, Laws of Utah 2004
11-8-2, as last amended by Chapter 112, Laws of Utah 1991
11-13-205, as renumbered and amended by Chapter 286, Laws of Utah 2002
11-13-219, as renumbered and amended by Chapter 286, Laws of Utah 2002
11-17-3, as last amended by Chapter 131, Laws of Utah 2003
11-25-5, as last amended by Chapter 133, Laws of Utah 2001
11-27-3, as last amended by Chapters 142 and 198, Laws of Utah 1987
15-7-12, as last amended by Chapter 9, Laws of Utah 2001
17-12-1, as last amended by Chapter 133, Laws of Utah 2000
17-24-1, as last amended by Chapter 241, Laws of Utah 2001
17-36-54, as renumbered and amended by Chapter 133, Laws of Utah 2000
17-50-303, as last amended by Chapter 96, Laws of Utah 2001
17A-2-306, as last amended by Chapter 9, Laws of Utah 2001
17A-2-307, as last amended by Chapter 9, Laws of Utah 2001
17A-2-309, as last amended by Chapter 9, Laws of Utah 2001
17A-2-423, as last amended by Chapter 9, Laws of Utah 2001
17A-2-428, as renumbered and amended by Chapter 186, Laws of Utah 1990
17A-2-543, as last amended by Chapter 9, Laws of Utah 2001
17A-2-622, as last amended by Chapter 90, Laws of Utah 2001
17A-2-712, as last amended by Chapter 285, Laws of Utah 2002
17A-2-821, as last amended by Chapter 254, Laws of Utah 2000
17A-2-824, as last amended by Chapters 1 and 254, Laws of Utah 2000
17A-2-826, as last amended by Chapter 9, Laws of Utah 2001
17A-2-1037, as last amended by Chapter 9, Laws of Utah 2001
17A-2-1058, as last amended by Chapter 9, Laws of Utah 2001
17A-2-1312, as last amended by Chapter 9, Laws of Utah 2001
17A-2-1315, as last amended by Chapter 5, Laws of Utah 1991
17A-2-1316, as last amended by Chapter 9, Laws of Utah 2001
17A-2-1322, as last amended by Chapters 9 and 195, Laws of Utah 2001
17A-2-1414, as last amended by Chapter 9, Laws of Utah 2001
17A-2-1439, as last amended by Chapter 9, Laws of Utah 2001
17A-2-1440, as last amended by Chapter 254, Laws of Utah 2000
17A-2-1823, as enacted by Chapter 216, Laws of Utah 1995
17A-2-1825, as enacted by Chapter 216, Laws of Utah 1995
17B-2-608, as enacted by Chapter 284, Laws of Utah 2002
17B-4-1204, as enacted by Chapter 133, Laws of Utah 2001
19-6-503, as renumbered and amended by Chapter 112, Laws of Utah 1991
19-6-505, as last amended by Chapter 9, Laws of Utah 2001
20A-1-102, as last amended by Chapters 117 and 127, Laws of Utah 2003
20A-3-202, as last amended by Chapter 328, Laws of Utah 2000
20A-3-304.1, as enacted by Chapter 195, Laws of Utah 2004
20A-4-202, as last amended by Chapter 228, Laws of Utah 1993
20A-4-301, as last amended by Chapter 11, Laws of Utah 2002, Fifth Special Session
20A-4-401, as last amended by Chapter 133, Laws of Utah 2002
20A-4-402, as enacted by Chapter 1, Laws of Utah 1993
20A-4-403, as enacted by Chapter 1, Laws of Utah 1993
20A-5-400.5, as enacted by Chapter 344, Laws of Utah 1998
20A-5-401, as last amended by Chapter 116, Laws of Utah 2003
20A-6-301, as last amended by Chapter 57, Laws of Utah 2001
20A-6-303, as last amended by Chapter 57, Laws of Utah 2001
20A-6-402, as last amended by Chapter 57, Laws of Utah 2001
31A-22-502, as last amended by Chapter 71, Laws of Utah 2002
53A-2-105, as last amended by Chapter 294, Laws of Utah 1998
53A-18-101, as last amended by Chapter 9, Laws of Utah 2001
53A-18-102, as last amended by Chapter 9, Laws of Utah 2001
53A-21-104, as last amended by Chapter 199, Laws of Utah 2003
53A-28-302, as last amended by Chapter 9, Laws of Utah 2001
54-9-103, as renumbered and amended by Chapter 286, Laws of Utah 2002
54-9-106, as renumbered and amended by Chapter 286, Laws of Utah 2002
59-7-601, as enacted by Chapter 169, Laws of Utah 1993
59-12-603, as last amended by Chapters 156 and 255, Laws of Utah 2004
59-12-703, as last amended by Chapters 255 and 317, Laws of Utah 2004
59-12-802, as last amended by Chapter 255, Laws of Utah 2004
59-12-804, as last amended by Chapter 255, Laws of Utah 2004
59-12-1402, as last amended by Chapters 255 and 317, Laws of Utah 2004
59-12-1503, as last amended by Chapters 90 and 255, Laws of Utah 2004
63B-2-116, as enacted by Chapter 304, Laws of Utah 1993
63B-2-216, as enacted by Chapter 304, Laws of Utah 1993
63B-3-116, as enacted by Chapter 300, Laws of Utah 1994
63B-3-216, as enacted by Chapter 300, Laws of Utah 1994
63B-4-116, as enacted by Chapter 329, Laws of Utah 1995
63B-5-116, as enacted by Chapter 335, Laws of Utah 1996
63B-6-116, as enacted by Chapter 391, Laws of Utah 1997
63B-6-216, as enacted by Chapter 270, Laws of Utah 1997
63B-6-416, as enacted by Chapter 391, Laws of Utah 1997
63B-7-116, as enacted by Chapter 67, Laws of Utah 1998
63B-7-216, as enacted by Chapter 316, Laws of Utah 1998
63B-7-416, as enacted by Chapter 67, Laws of Utah 1998
63B-8-116, as enacted by Chapter 309, Laws of Utah 1999
63B-8-216, as enacted by Chapter 331, Laws of Utah 1999
63B-8-416, as enacted by Chapter 309, Laws of Utah 1999
63B-9-216, as enacted by Chapter 354, Laws of Utah 2000
63B-10-116, as enacted by Chapter 321, Laws of Utah 2001
63B-11-116, as enacted by Chapter 199, Laws of Utah 2002
63B-11-216, as enacted by Chapter 252, Laws of Utah 2002
63B-11-316, as enacted by Chapter 278, Laws of Utah 2002
63B-11-516, as enacted by Chapter 266, Laws of Utah 2002
72-2-204, as renumbered and amended by Chapter 270, Laws of Utah 1998
72-2-108, as last amended by Chapter 318, Laws of Utah 2000
73-10d-4, as last amended by Chapter 9, Laws of Utah 2001
73-10d-7, as last amended by Chapter 9, Laws of Utah 2001
ENACTS:
11-14-101, Utah Code Annotated 1953
11-14-102, Utah Code Annotated 1953
11-14-103, Utah Code Annotated 1953
11-14-208, Utah Code Annotated 1953
RENUMBERS AND AMENDS:
11-14-201, (Renumbered from 11-14-2, as last amended by Chapter 252, Laws of Utah
1999)
11-14-202, (Renumbered from 11-14-3, as last amended by Chapter 292, Laws of Utah
2003)
11-14-203, (Renumbered from 11-14-4, as last amended by Chapter 371, Laws of Utah
2004)
11-14-204, (Renumbered from 11-14-6, as last amended by Chapter 75, Laws of Utah
2000)
11-14-205, (Renumbered from 11-14-7, as last amended by Chapter 3, Laws of Utah
1996, Second Special Session)
11-14-206, (Renumbered from 11-14-10, as last amended by Chapter 281, Laws of Utah
1981)
11-14-207, (Renumbered from 11-14-11, as last amended by Chapter 115, Laws of Utah
1975)
11-14-301, (Renumbered from 11-14-13, as last amended by Chapter 3, Laws of Utah
1988)
11-14-302, (Renumbered from 11-14-14, as last amended by Chapter 346, Laws of Utah
1983)
11-14-303, (Renumbered from 11-14-14.5, as last amended by Chapter 191, Laws of
Utah 1987)
11-14-304, (Renumbered from 11-14-15, as last amended by Chapter 280, Laws of Utah
1981)
11-14-305, (Renumbered from 11-14-16, as last amended by Chapter 62, Laws of Utah
1983)
11-14-306, (Renumbered from 11-14-17, as last amended by Chapter 72, Laws of Utah
2000)
11-14-307, (Renumbered from 11-14-17.5, as last amended by Chapter 193, Laws of
Utah 2001)
11-14-308, (Renumbered from 11-14-17.6, as last amended by Chapter 205, Laws of
Utah 2001)
11-14-309, (Renumbered from 11-14-18, as last amended by Chapter 346, Laws of Utah
1983)
11-14-310, (Renumbered from 11-14-19, as enacted by Chapter 41, Laws of Utah 1965)
11-14-311, (Renumbered from 11-14-19.5, as last amended by Chapter 79, Laws of Utah
1985)
11-14-312, (Renumbered from 11-14-19.6, as enacted by Chapter 115, Laws of Utah
1975)
11-14-313, (Renumbered from 11-14-19.7, as last amended by Chapter 345, Laws of
Utah 1983)
11-14-314, (Renumbered from 11-14-19.8, as enacted by Chapter 280, Laws of Utah
1981)
11-14-315, (Renumbered from 11-14-20, as enacted by Chapter 41, Laws of Utah 1965)
11-14-316, (Renumbered from 11-14-21, as last amended by Chapter 201, Laws of Utah
1987)
11-14-401, (Renumbered from 11-14-22, as enacted by Chapter 41, Laws of Utah 1965)
11-14-402, (Renumbered from 11-14-23, as last amended by Chapter 69, Laws of Utah
2001)
11-14-403, (Renumbered from 11-14-24, as enacted by Chapter 41, Laws of Utah 1965)
11-14-404, (Renumbered from 11-14-25, as enacted by Chapter 41, Laws of Utah 1965)
11-14-405, (Renumbered from 11-14-26, as enacted by Chapter 41, Laws of Utah 1965)
11-14-406, (Renumbered from 11-14-27, as last amended by Chapter 10, Laws of Utah
1997)
11-14-501, (Renumbered from 11-14-28, as enacted by Chapter 69, Laws of Utah 2001)
REPEALS:
11-14-1, as last amended by Chapter 216, Laws of Utah 1995
11-14-8, as enacted by Chapter 41, Laws of Utah 1965
11-14-9, as enacted by Chapter 41, Laws of Utah 1965
11-14-12, as enacted by Chapter 41, Laws of Utah 1965
Be it enacted by the Legislature of the state of Utah:
Section 1. Section 9-3-409 is amended to read:
9-3-409. Actions on validity or enforceability of bonds -- Time for bringing action.
(1) In any suit, action, or proceeding involving the validity or enforceability of any bond
issued under this chapter or the security for them, any such bond reciting in substance that it has
been issued by the authority in connection with the Utah Science Center shall be conclusively
deemed to have been issued for that purpose.
(2) For a period of 30 days after the publication of the resolution authorizing the bonds,
or a notice of bonds to be issued by the authority containing those items described in Section
[
person may contest the legality of the resolution authorizing any bonds, notice of bonds to be
issued, or any provisions made for the security and payment of the bonds. After the 30-day period
no one has any cause of action to contest the regularity, formality, or legality of the notice of
bonds to be issued or the bonds for any cause whatsoever.
Section 2. Section 10-7-8 is amended to read:
10-7-8. Resolution on bond issue -- Election as provided by Local Government
Bonding Act.
When the board of commissioners, city council or the town board of trustees of any city
or town shall have decided that incurring such bonded indebtedness is advisable, it shall by
resolution specify the purpose for which the indebtedness is to be created and the amount of
bonds which it is proposed to issue, and shall provide for submitting the question of the issue of
such bonds to the qualified electors of the city or town at the next general election, or at a special
election to be called for that purpose by the board of commissioners, city council or board of
trustees in such manner and subject to such conditions as is provided in Title 11, Chapter 14,
[
election for the issuance of refunding bonds or other bonds not required by the Constitution to be
voted at an election.
Section 3. Section 10-7-15 is amended to read:
10-7-15. Sale or lease of electrical generation and distribution system -- Appraisal
and vote required -- Manner of conducting the election.
(1) (a) Before selling or leasing in their entirety the works and plant constructed,
purchased, or used by the municipality for the purpose of generating or distributing electrical
energy for light, heat, or power purposes, the municipal legislative body shall:
(i) cause an appraisal of the property proposed to be sold or leased to be made under the
supervision of three resident taxpayers of the municipality, to be appointed by the municipal
legislative body; and
(ii) provide for submitting to the registered voters of the municipality the question of the
sale or lease of the property, at the next general election or at a special election called for that
purpose.
(b) The value of the property determined in an appraisal under Subsection (1)(a)(i) shall
include all items that the municipal legislative body determines to add value to or subtract value
from the property.
(2) (a) Subject to Subsection (2)(b), each election under Subsection (1)(a)(ii) shall be
called and conducted in the same manner as provided by statute for the issue of bonds in Section
10-7-8 , the necessary changes in the form of the ballot being made.
(b) Each notice of election required under Section [
held under Subsection (1)(a)(ii) shall include:
(i) a summary of the appraisal made under Subsection (1)(a)(i), including the amount of
the appraisal; and
(ii) the name of each bidder who submitted a bid that was opened and considered under
Section 10-7-17 and the amount of each bid.
(3) In the process of selling or leasing in their entirety the municipality's electrical works
and plant, a municipal legislative body may take whatever action it considers appropriate and in
the sequence it considers appropriate, subject to the requirements of this section and Sections
10-7-16 and 10-7-17 .
Section 4. Section 10-18-302 is amended to read:
10-18-302. Bonding authority.
(1) In accordance with Title 11, Chapter 14, [
Bonding Act, the legislative body of a municipality may by resolution determine to issue one or
more revenue bonds or general obligation bonds to finance the capital costs for facilities
necessary to provide to subscribers:
(a) a cable television service; or
(b) a public telecommunications service.
(2) The resolution described in Subsection (1) shall:
(a) describe the purpose for which the indebtedness is to be created; and
(b) specify the dollar amount of the one or more bonds proposed to be issued.
(3) (a) A revenue bond issued under this section shall be secured and paid for:
(i) from the revenues generated by the municipality from providing:
(A) cable television services with respect to revenue bonds issued to finance facilities for
the municipality's cable television services; and
(B) public telecommunications services with respect to revenue bonds issued to finance
facilities for the municipality's public telecommunications services; and
(ii) notwithstanding Subsection (3)(b) and Subsection 10-18-303 (3)(a), from revenues
generated under Title 59, Chapter 12, Sales and Use Tax Act, if:
(A) notwithstanding Subsection [
Subsections (4) and (5), the revenue bond is approved by the registered voters in an election held:
(I) except as provided in Subsection (3)(a)(ii)(A)(II), pursuant to the provisions of Title
11, Chapter 14, [
elections; and
(II) notwithstanding Subsection [
(B) the revenues described in this Subsection (3)(a)(ii) are pledged as security for the
revenue bond; and
(C) the municipality or municipalities annually appropriate the revenues described in this
Subsection (3)(a)(ii) to secure and pay the revenue bond issued under this section.
(b) Except as provided in Subsection (3)(a)(ii), a municipality may not pay the
origination, financing, or other carrying costs associated with the one or more revenue bonds
issued under this section from the general funds or other enterprise funds of the municipality.
(4) (a) As used in this Subsection (4), "municipal entity" means an entity created
pursuant to an agreement:
(i) under Title 11, Chapter 13, Interlocal Cooperation Act; and
(ii) to which a municipality is a party.
(b) The requirements of Subsection (3)(a)(ii)(A) do not apply to a municipality or
municipal entity that issues revenue bonds, or to a municipality that is a member of a municipal
entity that issues revenue bonds, if:
(i) on or before March 2, 2004, the municipality that is issuing revenue bonds or that is a
member of a municipal entity that is issuing revenue bonds has published the first notice
described in Subsection (4)(b)(iii);
(ii) on or before April 15, 2004, the municipality that is issuing revenue bonds or that is a
member of a municipal entity that is issuing revenue bonds makes the decision to pledge the
revenues described in Subsection (3)(a)(ii) as security for the revenue bonds described in this
Subsection (4)(b)(ii);
(iii) the municipality that is issuing the revenue bonds or the municipality that is a
member of the municipal entity that is issuing the revenue bonds has:
(A) held a public hearing for which public notice was given by publication of the notice
in a newspaper published in the municipality or in a newspaper of general circulation within the
municipality for two consecutive weeks, with the first publication being not less than 14 days
before the public hearing; and
(B) the notice identifies:
(I) that the notice is given pursuant to Title 11, Chapter 14, [
Government Bonding Act;
(II) the purpose for the bonds to be issued;
(III) the maximum amount of the revenues described in Subsection (3)(a)(ii) that will be
pledged in any fiscal year;
(IV) the maximum number of years that the pledge will be in effect; and
(V) the time, place, and location for the public hearing;
(iv) the municipal entity that issues revenue bonds:
(A) adopts a final financing plan; and
(B) in accordance with Title 63, Chapter 2, Government Records Access and
Management Act, makes available to the public at the time the municipal entity adopts the final
financing plan:
(I) the final financing plan; and
(II) all contracts entered into by the municipal entity, except as protected by Title 63,
Chapter 2, Government Records Access and Management Act;
(v) any municipality that is a member of a municipal entity described in Subsection
(4)(b)(iv):
(A) not less than 30 calendar days after the municipal entity complies with Subsection
(4)(b)(iv)(B), holds a final public hearing;
(B) provides notice, at the time the municipality schedules the final public hearing, to
any person who has provided to the municipality a written request for notice; and
(C) makes all reasonable efforts to provide fair opportunity for oral testimony by all
interested parties; and
(vi) except with respect to a municipality that issued bonds prior to March 1, 2004, not
more than 50% of the average annual debt service of all revenue bonds described in this section
to provide service throughout the municipality or municipal entity may be paid from the revenues
described in Subsection (3)(a)(ii).
(5) On or after July 1, 2007, the requirements of Subsection (3)(a)(ii)(A) do not apply to
a municipality that issues revenue bonds if:
(a) the municipality that is issuing the revenue bonds has:
(i) held a public hearing for which public notice was given by publication of the notice in
a newspaper published in the municipality or in a newspaper of general circulation within the
municipality for two consecutive weeks, with the first publication being not less than 14 days
before the public hearing; and
(ii) the notice identifies:
(A) that the notice is given pursuant to Title 11, Chapter 14, [
Local Government Bonding Act;
(B) the purpose for the bonds to be issued;
(C) the maximum amount of the revenues described in Subsection (3)(a)(ii) that will be
pledged in any fiscal year;
(D) the maximum number of years that the pledge will be in effect; and
(E) the time, place, and location for the public hearing; and
(b) except with respect to a municipality that issued bonds prior to March 1, 2004, not
more than 50% of the average annual debt service of all revenue bonds described in this section
to provide service throughout the municipality or municipal entity may be paid from the revenues
described in Subsection (3)(a)(ii).
(6) A municipality that issues bonds pursuant to this section may not make or grant any
undue or unreasonable preference or advantage to itself or to any private provider of:
(a) cable television services; or
(b) public telecommunications services.
Section 5. Section 11-8-2 is amended to read:
11-8-2. State loans for sewage treatment facilities -- Rules of Water Quality Board.
The Department of Environmental Quality is authorized to negotiate loans to political
subdivisions and municipal authorities for the construction, reconstruction, and improvement of
municipal sewage treatment facilities. All loans shall be made pursuant to rules made by the
Water Quality Board and not exceed 25% of the total cost of the facility. The loans shall be
authorized by the political subdivision involved pursuant to Title 11, Chapter 14, [
to indebtedness of political subdivisions.
Section 6. Section 11-13-205 is amended to read:
11-13-205. Agreement by public agencies to create a new entity to own sewage and
wastewater facilities -- Powers and duties of new entities -- Validation of previously created
entities.
(1) It is declared that the policy of the state is to assure the health, safety, and welfare of
its citizens, that adequate sewage and wastewater treatment plants and facilities are essential to
the well-being of the citizens of the state and that the acquisition of adequate sewage and
wastewater treatment plants and facilities on a regional basis in accordance with federal law and
state and federal water quality standards and effluent standards in order to provide services to
public agencies is a matter of statewide concern and is in the public interest. It is found and
declared that there is a statewide need to provide for regional sewage and wastewater treatment
plants and facilities, and as a matter of express legislative determination it is declared that the
compelling need of the state for construction of regional sewage and wastewater treatment plants
and facilities requires the creation of entities under the Interlocal Cooperation Act to own,
construct, operate, and finance sewage and wastewater treatment plants and facilities; and it is
the purpose of this law to provide for the accomplishment thereof in the manner provided in this
section.
(2) Any two or more public agencies of the state may also agree to create a separate legal
or administrative entity to accomplish and undertake the purpose of owning, acquiring,
constructing, financing, operating, maintaining, and repairing regional sewage and wastewater
treatment plants and facilities.
(3) A separate legal or administrative entity created in the manner provided herein is
considered to be a political subdivision and body politic and corporate of the state with power to
carry out and effectuate its corporate powers, including, but not limited to, the power:
(a) to adopt, amend, and repeal rules, bylaws, and regulations, policies, and procedures
for the regulation of its affairs and the conduct of its business, to sue and be sued in its own
name, to have an official seal and power to alter that seal at will, and to make and execute
contracts and all other instruments necessary or convenient for the performance of its duties and
the exercise of its powers and functions under the Interlocal Cooperation Act;
(b) to own, acquire, construct, operate, maintain, repair, or cause to be constructed,
operated, maintained, and repaired one or more regional sewage and wastewater treatment plants
and facilities, all as shall be set forth in the agreement providing for its creation;
(c) to borrow money, incur indebtedness and issue revenue bonds, notes or other
obligations payable solely from the revenues and receipts derived from all or a portion of the
regional sewage and wastewater treatment plants and facilities which it owns, operates, and
maintains, such bonds, notes, or other obligations to be issued and sold in compliance with the
provisions of Title 11, Chapter 14, [
(d) to enter into agreements with public agencies and other parties and entities to provide
sewage and wastewater treatment services on such terms and conditions as it considers to be in
the best interests of its participants; and
(e) to acquire by purchase or by exercise of the power of eminent domain, any real or
personal property in connection with the acquisition and construction of any sewage and
wastewater treatment plant and all related facilities and rights-of-way which it owns, operates,
and maintains.
(4) The provisions of Part 3, Project Entity Provisions, do not apply to a legal or
administrative entity created for regional sewage and wastewater treatment purposes under this
section.
(5) All proceedings previously had in connection with the creation of any legal or
administrative entity pursuant to this chapter, and all proceedings previously had by any such
entity for the authorization and issuance of bonds of the entity are validated, ratified, and
confirmed; and these entities are declared to be validly created interlocal cooperation entities
under this chapter. These bonds, whether previously or subsequently issued pursuant to these
proceedings, are validated, ratified, and confirmed and declared to constitute, if previously
issued, or when issued, the valid and legally binding obligations of the entity in accordance with
their terms. Nothing in this section shall be construed to affect or validate any bonds, or the
organization of any entity, the legality of which is being contested at the time this act takes effect.
(6) (a) The governing body of each entity created under this section on or after May 4,
1998, shall, within 30 days of the creation, file a written notice of the creation with the State Tax
Commission.
(b) Each written notice required under Subsection (6)(a) shall:
(i) be accompanied by:
(A) a copy of the agreement creating the entity; and
(B) a map or plat that delineates a metes and bounds description of the area affected and
evidence that the information has been recorded by the county recorder; and
(ii) contain a certification by the governing body that all necessary legal requirements
relating to the creation have been completed.
Section 7. Section 11-13-219 is amended to read:
11-13-219. Publication of resolutions or agreements -- Contesting legality of
resolution or agreement.
(1) As used in this section:
(a) "Enactment" means:
(i) a resolution adopted or proceedings taken by a governing body under the authority of
this chapter, and includes a resolution, indenture, or other instrument providing for the issuance
of bonds; and
(ii) an agreement or other instrument that is authorized, executed, or approved by a
governing body under the authority of this chapter.
(b) "Governing body" means:
(i) the legislative body of a public agency; and
(ii) the governing body of an interlocal entity created under this chapter.
(c) "Notice of bonds" means the notice authorized by Subsection (3)(d).
(d) "Notice of agreement" means the notice authorized by Subsection (3)(c).
(e) "Official newspaper" means the newspaper selected by a governing body under
Subsection (4)(b) to publish its enactments.
(2) Any enactment taken or made under the authority of this chapter is not subject to
referendum.
(3) (a) A governing body need not publish any enactment taken or made under the
authority of this chapter.
(b) A governing body may provide for the publication of any enactment taken or made by
it under the authority of this chapter according to the publication requirements established by this
section.
(c) (i) If the enactment is an agreement, document, or other instrument, or a resolution or
other proceeding authorizing or approving an agreement, document, or other instrument, the
governing body may, instead of publishing the full text of the agreement, resolution, or other
proceeding, publish a notice of agreement containing:
(A) the names of the parties to the agreement;
(B) the general subject matter of the agreement;
(C) the term of the agreement;
(D) a description of the payment obligations, if any, of the parties to the agreement; and
(E) a statement that the resolution and agreement will be available for review at the
governing body's principal place of business during regular business hours for 30 days after the
publication of the notice of agreement.
(ii) The governing body shall make a copy of the resolution or other proceeding and a
copy of the contract available at its principal place of business during regular business hours for
30 days after the publication of the notice of agreement.
(d) If the enactment is a resolution or other proceeding authorizing the issuance of bonds,
the governing body may, instead of publishing the full text of the resolution or other proceeding
and the documents pertaining to the issuance of bonds, publish a notice of bonds that contains the
information described in Subsection [
(4) (a) If the governing body chooses to publish an enactment, notice of bonds, or notice
of agreement, the governing body shall comply with the requirements of this Subsection (4).
(b) If there is more than one newspaper of general circulation, or more than one
newspaper, published within the boundaries of the governing body, the governing body may
designate one of those newspapers as the official newspaper for all publications made under this
section.
(c) (i) The governing body shall publish the enactment, notice of bonds, or notice of
agreement in:
(A) the official newspaper;
(B) the newspaper published in the municipality in which the principal office of the
governmental entity is located; or
(C) if no newspaper is published in that municipality, in a newspaper having general
circulation in the municipality.
(ii) The governing body may publish the enactment, notice of bonds, or notice of
agreement in a newspaper of general circulation or in a newspaper that is published within the
boundaries of any public agency that is a party to the enactment or agreement.
(5) (a) Any person in interest may contest the legality of an enactment or any action
performed or instrument issued under the authority of the enactment for 30 days after the
publication of the enactment, notice of bonds, or notice of agreement.
(b) After the 30 days have passed, no one may contest the regularity, formality, or
legality of the enactment or any action performed or instrument issued under the authority of the
enactment for any cause whatsoever.
Section 8. Section 11-14-101 is enacted to read:
11-14-101. Title.
This chapter is known as the "Local Government Bonding Act."
Section 9. Section 11-14-102 is enacted to read:
11-14-102. Definitions.
For the purpose of this chapter:
(1) "Bond" means any bond authorized to be issued under this chapter, including
municipal bonds.
(2) "Election results" means the same as "election results" as defined in Section
20A-1-102 .
(3) (a) "Local political subdivision" includes:
(i) cities;
(ii) towns;
(iii) counties;
(iv) school districts;
(v) public transit districts;
(vi) improvement districts operating under the authority of Title 17A, Chapter 2, Part 3,
County Improvement Districts for Water, Sewage, Flood Control, Electric and Gas;
(vii) special service districts operating under the authority of Title 17A, Chapter 2, Part
13, Utah Special Service District Act;
(viii) metropolitan water districts operating under the authority of Title 17A, Chapter 2,
Part 8, Metropolitan Water District Act;
(ix) irrigation districts operating under the authority of Title 17A, Chapter 2, Part 7,
Irrigation District Act;
(x) water conservancy districts operating under the authority of Title 17A, Chapter 2,
Part 14, Water Conservancy Districts; and
(xi) regional service areas operating under the authority of Title 17A, Chapter 2, Part 18,
Regional Service Area Act.
(b) "Local political subdivision" does not include the state and its institutions.
Section 10. Section 11-14-103 is enacted to read:
11-14-103. Bond issues authorized -- Purposes -- Use of bond proceeds.
(1) Any local political subdivision may, in the manner and subject to the limitations and
restrictions contained in this chapter, issue its negotiable bonds for the purpose of paying all or
part of the cost of acquiring, improving, or extending any one or more improvements, facilities,
or property that the local political subdivision is authorized by law to acquire.
(2) Any local political subdivision may also issue such bonds for the acquisition of or the
acquisition of an interest in any one or more or combination of the following types of
improvements, facilities, or property to be owned by the local political subdivision or to be
owned jointly by two or more local political subdivisions, or for the improvement or extension of
any such wholly or jointly owned facility or property:
(a) public buildings of every nature, including without limitation, offices, courthouses,
jails, fire, police and sheriff's stations, detention homes, and any other buildings to accommodate
or house lawful activities of a local political subdivision;
(b) waterworks, irrigation systems, water systems, dams, reservoirs, water treatment
plants, and any other improvements, facilities, or property used in connection with the
acquisition, storage, transportation, and supplying of water for domestic, industrial, irrigation,
recreational, and other purposes and preventing pollution of water;
(c) sewer systems, sewage treatment plants, incinerators, and other improvements,
facilities, or property used in connection with the collection, treatment, and disposal of sewage,
garbage, or other refuse;
(d) drainage and flood control systems, storm sewers, and any other improvements,
facilities, or property used in connection with the collection, transportation, or disposal of water;
(e) recreational facilities of every kind, including without limitation, athletic and play
facilities, playgrounds, athletic fields, gymnasiums, public baths, swimming pools, camps, parks,
picnic grounds, fairgrounds, golf courses, zoos, boating facilities, tennis courts, auditoriums,
stadiums, arenas, and theaters;
(f) convention centers, sports arenas, auditoriums, theaters, and other facilities for the
holding of public assemblies, conventions, and other meetings;
(g) roads, bridges, viaducts, tunnels, sidewalks, curbs, gutters, and parking buildings,
lots, and facilities;
(h) airports, landing fields, landing strips, and air navigation facilities;
(i) educational facilities, including without limitation, schools, gymnasiums,
auditoriums, theaters, museums, art galleries, libraries, stadiums, arenas, and fairgrounds;
(j) hospitals, convalescent homes, and homes for the aged or indigent; and
(k) electric light works, electric generating systems, and any other improvements,
facilities, or property used in connection with the generation and acquisition of electricity for
these local political subdivisions and transmission facilities and substations if they do not
duplicate transmission facilities and substations of other entities operating in the state prepared to
provide the proposed service unless these transmission facilities and substations proposed to be
constructed will be more economical to these local political subdivisions.
(3) Any such improvement, facility, or property need not lie within the limits of the local
political subdivision.
(4) A cost under Subsection (1) may include:
(a) the cost of equipment and furnishings for such improvements, facilities, or property;
(b) all costs incident to the authorization and issuance of bonds, including engineering,
legal, and fiscal advisers' fees;
(c) costs incident to the issuance of bond anticipation notes, including interest to accrue
on bond anticipation notes;
(d) interest estimated to accrue on the bonds during the period to be covered by the
construction of the improvement, facility, or property and for 12 months after that period; and
(e) other amounts which the legislative body finds necessary to establish bond reserve
funds and to provide working capital related to the improvement, facility, or property.
Section 11. Section 11-14-201 , which is renumbered from Section 11-14-2 is
renumbered and amended to read:
[
and notice.
(1) [
subdivision that wishes to issue bonds under the authority granted in Section [
11-14-103 shall [
least 75 days before the date of election:
(a) approve a resolution submitting the question of the issuance of the bonds to the voters
of the local political subdivision; and
(b) provide a copy of the resolution to:
(i) the lieutenant governor; and
(ii) the election officer, as defined in Section 20A-1-102 , charged with conducting the
election.
[
[
[
[
[
(2) The local political subdivision may not issue the bonds unless the majority of the
qualified voters of the local political subdivision who vote on the bond proposition approve the
issuance of the bonds.
(3) Nothing in this section requires an election for the issuance of:
(a) refunding bonds; or
(b) other bonds not required by law to be voted on at an election.
[
a ballot proposition, in substantially final form, that complies with the requirements of
Subsection 11-14-206 (2).
[
[
[
[
[
Section 12. Section 11-14-202 , which is renumbered from Section 11-14-3 is
renumbered and amended to read:
[
(1) (a) [
(i) notice of the election [
consecutive weeks in a newspaper designated in accordance with Section [
and
(ii) the first publication [
election.
[
(b) Notice shall be published in a newspaper [
general circulation in the [
(2) When the debt service on the bonds to be issued will increase the property tax
imposed upon the average value of a residence by an amount that is greater than or equal to $15
per year, the governing body shall, at least seven days but not more than 30 days before the bond
election, if the bond election is not held on the date of a regular primary election, a municipal
primary election, a regular general election, or a municipal general election, either mail:
(a) written notice of the bond election on a minimum three inch by five inch postcard to
every household containing a registered voter who is eligible to vote on the bonds; or
(b) a voter information pamphlet prepared by the governing body, if one is prepared, that
includes the information required by Subsection (4).
(3) (a) Except as provided in Subsection (3)(b), [
(b) (i) In a [
where there is no newspaper [
body may require that notice of a bond election be given by posting in lieu of the publication
requirements of Subsection (1).
(ii) When the [
ensure that notice of the bond election is posted in at least five public places in the [
local political subdivision at least 21 days before the election.
(4) [
include:
(a) the date and place of the election;
(b) the hours during which the polls will be open; and
[
(c) the title and text of the ballot proposition.
(5) The [
Section 13. Section 11-14-203 , which is renumbered from Section 11-14-4 is
renumbered and amended to read:
[
Combining precincts.
[
[
[
[
[
[
(1) (a) The local political subdivision shall ensure that bond elections are conducted and
administered according to the procedures set forth in this chapter and the sections of the Election
Code specifically referenced by this chapter.
(b) When a local political subdivision complies with those procedures, there is a
presumption that the bond election was properly administered.
(2) (a) [
may be submitted [
[
election called for the purpose on a date authorized by Section 20A-1-204 .
[
submitted, at the Western States Presidential Primary election established in Title 20A, Chapter
9, Part 8, Western States Presidential Primary.
[
[
(3) (a) The bond election shall be conducted and administered by the election officer
designated in Sections 20A-1-102 and 20A-5-400.5 .
(b) (i) The duties of the election officer shall be governed by Title 20A, Chapter 5, Part
4, Election Officer's Duties.
(ii) The publishing requirement under Subsection 20A-5-405 (1)(j)(iii) does not apply
when notice of a bond election has been provided according to the requirements of Section
11-14-202 .
(c) The hours during which the polls are to be open shall be consistent with Section
20A-1-302 .
(d) The appointment and duties of election judges shall be governed by Title 20A,
Chapter 5, Part 6, Election Judges.
(e) General voting procedures shall be conducted according to the requirements of Title
20A, Chapter 3, Voting.
(f) The designation of election crimes and offenses, and the requirements for the
prosecution and adjudication of those crimes and offenses are set forth in Title 20A, Election
Code.
[
is being held in the local political subdivision calling the bond election, voting precincts may be
combined for purposes of bond elections[
county in which [
(5) When a bond election is being held on the same day as any other election held in a
local political subdivision calling the bond election, or in some part of that local political
subdivision, the polling places and election officials serving for the other election may also serve
as the polling places and election officials for the bond election, so long as no voter is required to
vote outside the county in which the voter resides.
Section 14. Section 11-14-204 , which is renumbered from Section 11-14-6 is
renumbered and amended to read:
[
[
[
[
[
[
[
[
[
[____________________________________________________________]
[
[____________________________________________________________]
[
[
[____________________________________________________________]
[
[
[
(1) Any person's qualifications to vote at a bond election may be challenged according to
the procedures and requirements of Sections 20A-3-105.5 and 20A-3-202 .
[
that [
(a) it [
voters voted in sufficient numbers to change the result [
(b) the complaint is filed before the expiration of the time period permitted for contests
in Subsection 20A-4-403 (3).
(3) The votes cast by the voters shall be accepted as having been legally cast for purposes
of determining the outcome of the election, unless the court in a bond election contest [
finds otherwise.
Section 15. Section 11-14-205 , which is renumbered from Section 11-14-7 is
renumbered and amended to read:
[
supplied by clerk.
(1) (a) Voter registration shall be administered according to the requirements of Title
20A, Chapter 2, Voter Registration.
[
registration of voters for a bond election [
[
[
(2) The county clerk of each county in which a [
subdivision holding the bond election is located shall [
20A-5-401 .
[
(3) The official register's failure to identify those voters not residing in the local political
subdivision holding the bond election, or any inaccuracy in [
election.
Section 16. Section 11-14-206 , which is renumbered from Section 11-14-10 is
renumbered and amended to read:
[
contents.
[
(1) At least 75 days before the election, the legislative body shall prepare and submit to
the election officer:
(a) a ballot title for the bond proposition that includes the name of the local political
subdivision issuing the bonds and the word "bond" or an identification of the type of bonds; and
(b) a ballot proposition that meets the requirements of Subsection (2).
(2) (a) The ballot proposition shall include:
(i) the maximum principal amount of the bonds[
(ii) the maximum number of years [
(iii) the general purpose for which [
(b) The purpose of the bonds may be stated in general terms and need not specify the
particular projects for which the bonds are to be issued or the specific amount of bond proceeds
to be expended for each project.
(c) If the bonds are to be payable in part from tax proceeds and in part from the operating
revenues of the [
of tax proceeds and operating revenues, the bond proposition shall [
payment sources, but need not specify how the bonds are to be divided between those sources of
payment.
(d) (i) The bond proposition shall be followed by the words, "For the issuance of bonds"
and "Against the issuance of bonds," with appropriate boxes in which the voter may indicate his
choice.
(ii) Nothing in Subsection (2)(d)(i) prohibits the addition of descriptive information
about the bonds.
(3) If a bond [
political subdivision calling the bond election, the bond [
be combined with the candidate ballot in a manner consistent with Section 20A-6-301 ,
20A-6-303 , or 20A-6-402 .
[
(4) The ballot form shall comply with the requirements of Title 20A, Chapter 6, Ballot
Form.
Section 17. Section 11-14-207 , which is renumbered from Section 11-14-11 is
renumbered and amended to read:
[
[
(1) (a) Following the election officer's inspection and count of the ballots in accordance
with the procedures of Title 20A, Chapter 4, Part 1, Counting Ballots and Tabulating Results,
and Part 2, Transmittal and Disposition of Ballots and Election Returns, the legislative body shall
meet and canvass the election results.
(b) (i) The legislative body of the local political subdivision is the board of canvassers
for the bond proposition.
(ii) The board of canvassers shall always consist of a quorum of the legislative body.
(c) The canvass of the election [
after the election.
(d) The canvass of election results shall be conducted according to the procedures and
requirements of Subsection 20A-4-301 (3) and Sections 20A-4-302 and 20A-4-303 .
(e) If a bond proposition is submitted to a vote on the same day as any other election held
in the local political subdivision calling the bond election, the legislative body shall coordinate
the date of its canvass with any other board of canvassers appointed under Section 20A-4-301 .
(2) (a) After the canvass of election returns, the legislative body shall [
minutes:
(i) an official finding as to the total number of votes cast, the number of affirmative
votes, the number of negative votes, [
challenged voters [
provisional ballot, and the number of provisional ballots that were counted; and [
(ii) an official finding that the bond proposition [
(b) The legislative body need not file with the county clerk or with any other official:
(i) any statement or certificate of [
(ii) any affidavit with respect to the facts pertaining to the election [
(iii) any affidavit pertaining to the indebtedness and valuation of the municipality [
(3) The [
qualified [
proposition[
action or proceeding involving the validity of the election or involving the determination or
declaration of the result [
expiration of the period provided in [
Subsection 20A-4-403 (3).
Section 18. Section 11-14-208 is enacted to read:
11-14-208. Contest of election results -- Procedure.
(1) (a) Any person wishing to contest the results of a bond election shall comply with the
procedures and requirements of Title 20A, Chapter 4, Part 4, Recounts and Election Contests.
(b) The local political subdivision calling the election shall be regarded as the defendant.
(2) Unless the complaint is filed within the period prescribed in Subsection
20A-4-403 (3), a court may not:
(a) allow an action contesting the bond election to be maintained; or
(b) set aside or hold the bond election invalid.
Section 19. Section 11-14-301 , which is renumbered from Section 11-14-13 is
renumbered and amended to read:
[
indebtedness under constitutional and statutory limitations.
(1) If the [
and no contest has been filed, or if [
favorably terminated, the [
the election.
(2) It is not necessary that all of the bonds be issued at one time, but [
election. [
(3) (a) Bonds approved by the voters may not be issued to an amount which will cause
the indebtedness of the [
Utah Constitution or statutes.
(b) In computing the amount of indebtedness [
constitutional limitations, the constitutionally permitted percentage shall be applied to the fair
market value, as defined under Section 59-2-102 , of the taxable property in the [
local political subdivision as computed from the last equalized assessment rolls for state and
county purposes prior to the incurring of the additional indebtedness, except that in the case of
cities the last equalized assessment rolls for city purposes shall be controlling.
(c) In determining the fair market value of the taxable property in the [
political subdivision as provided in this section, the value of all tax equivalent property, as
defined in Section 59-3-102 , shall be included as a part of the total fair market value of taxable
property in the [
Tax Equivalent Property Act.
(4) Bonds of improvement districts issued in a manner that they are payable solely from
the revenues to be derived from the operation of the facilities of the district may not be included
as bonded indebtedness for the purposes of the computation.
(5) Where bonds are issued by a city, town, or county payable solely from revenues
derived from the operation of revenue-producing facilities of the city, town, or county, or payable
solely from a special fund into which are deposited excise taxes levied and collected by the city,
town, or county, or excise taxes levied by the state and rebated pursuant to law to the city, town,
or county, or any combination of those excise taxes, the bonds shall be included as bonded
indebtedness of the city, town, or county only to the extent required by the Utah Constitution, and
any bonds not so required to be included as bonded indebtedness of the city, town, or county
need not be authorized at an election, except as otherwise provided by the Utah Constitution, the
bonds being hereby expressly excluded from the election requirement of Section [
11-14-201 .
(6) A bond election is not void [
election exceeded the limitation applicable to the [
time of holding the election, but the bonds may be issued from time to time in an amount within
the applicable limitation at the time the bonds are issued.
Section 20. Section 11-14-302 , which is renumbered from Section 11-14-14 is
renumbered and amended to read:
[
Interest -- Payment -- Redemption -- Combining issues -- Sale -- Financing plan.
(1) Bonds issued under this chapter shall be authorized by resolution of the [
legislative body, shall be fully negotiable for all purposes, may be made registrable as to
principal alone or as to principal and interest, shall mature at such time or times not more than 40
years from their date, shall bear interest at such rate or rates, if any, shall be payable at such place
or places, shall be in such form, shall be executed in such manner, may be made redeemable prior
to maturity at such times and on such terms, shall be sold in such manner and at such prices,
either at, in excess of, or below face value, and generally shall be issued in such manner and with
such details as may be provided by resolution; it being the express intention of the legislature that
interest rate limitations elsewhere appearing in the laws of Utah shall not apply to nor limit the
rate of interest on bonds issued under this chapter. The resolution shall specify either the rate or
rates of interest, if any, on the bonds or specify the method by which the interest rate or rates on
the bonds may be determined while the bonds are outstanding. If the resolution specifies a
method by which interest on the bonds may be determined, the resolution shall also specify the
maximum rate of interest the bonds may bear. Bonds voted for different purposes by separate
propositions at the same or different bond elections may in the discretion of the [
legislative body be combined and offered for sale as one issue of bonds. The resolution
providing for this combination and the printed bonds for the combined issue shall separately set
forth the amount being issued for each of the purposes provided for in each proposition
submitted to the electors. If the [
agent to assist and advise it with respect to the bonds and the fiscal agent has received or is to
receive a fee for such services, the bonds may be sold to the fiscal agent but only if the sale is
made pursuant to a sealed bid submitted by the fiscal agent at an advertised public sale.
(2) (a) All bonds shall be paid by the treasurer of the [
subdivision or the treasurer's duly authorized agent on their respective maturity dates or on the
dates fixed for the bonds redemption. All bond coupons, other than coupons cancelled because
of the redemption of the bonds to which they apply, shall similarly be paid on their respective
dates or as soon thereafter as the bonds or coupons are surrendered.
(b) Upon payment of a bond or coupon, the treasurer of the [
subdivision or the treasurer's duly authorized agent, shall perforate the bond or coupon with a
device suitable to indicate payment.
(c) Any bonds or coupons which have been paid or cancelled may be destroyed by the
treasurer of the [
agent.
(3) Bonds, bond anticipation notes, or tax anticipation notes with maturity dates of one
year or less may be authorized by a [
pursuant to a plan of financing adopted by the [
financing shall specify the terms and conditions under which the bonds or notes may be issued,
sold, and delivered, the officers of the [
issue the bonds or notes, the maximum amount of bonds or notes which may be outstanding at
any one time, the source or sources of payment of the bonds or notes, and all other details
necessary for issuance of the bonds or notes. Subject to the Constitution, the [
legislative body of the [
financing the terms and conditions of agreements which may be entered into by the
[
standby letters of credit to secure the bonds or notes, including payment from any legally
available source of fees, charges, or other amounts coming due under the agreements entered into
by the [
Section 21. Section 11-14-303 , which is renumbered from Section 11-14-14.5 is
renumbered and amended to read:
[
political subdivisions exempt from taxation except corporate franchise tax.
All bonds, notes, or other evidences of indebtedness issued under this chapter or under
any other law authorizing the issuance of bonds, notes, or indebtedness by any county, city, town,
school district, public transit district, improvement district, special service district, metropolitan
water district, water conservancy district, irrigation district, or any other political subdivision
now existing or subsequently created under the laws of Utah (including, but not limited to, bonds
payable solely from special assessments and tax anticipation indebtedness) and the interest on
them shall be exempt from all taxation in this state, except for the corporate franchise tax.
Section 22. Section 11-14-304 , which is renumbered from Section 11-14-15 is
renumbered and amended to read:
[
Validity of signed bonds.
(1) If the use of a facsimile signature is authorized by the body empowered by law to
authorize the issuance of the bonds or other obligations of any agency, instrumentality, or
institution of this state or of any municipal corporation, political subdivision, improvement
district, taxing district, or other governmental entity within the state, whether or not issued under
this chapter, any officer so authorized may execute, authenticate, certify, or endorse, or cause to
be executed, authenticated, certified, or endorsed the bond or other obligation, or any certificate
required to be executed on the back thereof, with a facsimile signature in lieu of his manual
signature if at least one signature required or permitted to be placed on the face thereof shall be
manually subscribed. Upon compliance with this chapter by the authorized officer, his facsimile
signature has the same legal effect as his manual signature. When any seal is required in the
execution, authentication, certification, or endorsement of the bond or other obligation, or any
certificate required to be executed on the back thereof, the authorized officer may cause the seal
to be printed, engraved, lithographed, stamped, or otherwise placed in facsimile thereon. The
facsimile seal has the same legal effect as the impression of the seal.
(2) Bonds or other obligations bearing the signatures (manual or facsimile) of officers in
office on the date of the execution thereof shall be valid and binding obligations notwithstanding
that before the delivery thereof any or all of the persons whose signatures appear thereon shall
have ceased to be officers of the [
Section 23. Section 11-14-305 , which is renumbered from Section 11-14-16 is
renumbered and amended to read:
[
(1) Unless otherwise provided by the [
Registered Public Obligations Act governs and applies to all bonds, bond anticipation notes, and
tax anticipation notes (bonds, bond anticipation notes and tax anticipation notes being referred to
in this section as "obligations") issued in registered form. If the Registered Public Obligations
Act is inapplicable to an issue of obligations, Subsection [
respect to such issue.
(2) Any obligations issued under this chapter may be issued in denominations of $100 or
any multiple of $100. The [
these obligations after issuance for obligations of larger or smaller denominations in such manner
as may be provided in the authorizing resolution, provided the obligations in changed
denominations shall be exchanged for the original obligations in like aggregate principal amounts
and in such manner that no overlapping interest is paid; and such obligations in changed
denominations shall bear interest at the same rate or rates, if any, shall mature on the same date
or dates, shall be as nearly as practicable in the same form except for an appropriate recital as to
the exchange, and shall in all other respects, except as to denominations and numbers, be
identical with the original obligations surrendered for exchange. Where any exchange is made
under this section, the obligations surrendered by the holders at the time of exchange shall be
cancelled; any such exchange shall be made only at the request of the holders of the obligations
to be surrendered; and the [
connection with such exchange, including the authorization and issuance of the new obligations,
to be paid by such holders.
Section 24. Section 11-14-306 , which is renumbered from Section 11-14-17 is
renumbered and amended to read:
[
bonds -- Resolution.
(1) To the extent constitutionally permissible, [
subdivisions may pledge as an additional source of payment for their general obligation bonds all
or any part of revenues, fees, and charges attributable to the operation or availability of facilities
or may issue bonds payable solely from such revenues, fees, or charges.
(2) (a) The legislative body may issue bonds payable solely from revenues, fees, or
charges attributable to extensions and improvements to revenue-producing facilities.
(b) If the legislative body issues bonds under Subsection (2)(a), the resolution
authorizing these bonds shall set forth as a finding of the legislative body:
(i) the value of the then existing facility and the value of this facility after completion of
the extensions or improvements proposed to be constructed; and
(ii) that portion of the revenues, fees, or charges derived from the entire facility when the
contemplated extensions and improvements are completed which the value of the existing facility
bears to the value of the facility after completion shall be considered to be revenue derived from
the existing facility and the remainder may be set aside and pledged to the payment of the
principal of and interest on the bonds and for the establishment of appropriate reserve fund or
funds, and such portion shall be considered to be revenue derived exclusively from the
extensions and improvements.
(3) (a) Any resolution or trust indenture authorizing bonds to which such revenues, fees,
or charges are pledged may contain such covenants with the future holder or holders of the bonds
as to the management and operation of the affected facilities, the imposition, collection, and
disposition of rates, fees, and charges for commodities and services furnished thereby, the
issuance of future bonds, the creation of future liens and encumbrances against the facilities, the
carrying of insurance, the keeping of books and records, the deposit and paying out of revenues,
fees, or charges and bond proceeds, the appointment and duties of a trustee, and other pertinent
matters as may be considered proper by the [
(b) If the revenue, fee, or charge so pledged involves either sewer or water revenues,
fees, or charges or both sewer and water revenues, fees, or charges, provision may be made for
charges for sewer services and water services to be billed in a single bill and for the suspension
of water or sewer services, or both, to any customer who shall become delinquent in the payment
due for either.
(c) Provision may be made for the securing of such bonds by a trust indenture, but no
such indenture shall convey, mortgage, or create any lien upon property of the [
local political subdivision.
(d) Either the bond resolution or such trust indenture may impose in the holders of the
bonds full rights to enforce the provisions thereof, and may include terms and conditions upon
which the holders of the bonds or any proportion of them, or a trustee therefor, shall be entitled
to the appointment of a receiver who may enter and take possession of the facility or facilities,
the revenues, fees, or charges of which are so pledged, and may operate and maintain them,
prescribe charges and collect, receive, and apply all revenues, fees, or charges therefrom arising
in the same manner as the [
Section 25. Section 11-14-307 , which is renumbered from Section 11-14-17.5 is
renumbered and amended to read:
[
(1) To the extent constitutionally permissible, cities, towns, or counties may issue bonds
payable solely from a special fund into which are to be deposited excise taxes levied and
collected by the city, town, or county, or excise taxes levied by the state and rebated pursuant to
law to the city, town, or county, or any combination of those excise taxes, or may pledge all or
any part thereof as an additional source of payment for their general obligation bonds.
(2) (a) Any resolution authorizing the issuance of bonds payable in whole or in part from
the proceeds of excise tax revenues may contain covenants with the holder or holders of the
bonds as to the excise tax revenues, the disposition of the excise tax revenues, the issuance of
future bonds, and other pertinent matters that are considered necessary by the [
legislative body to assure the marketability of those bonds, provided the covenants are not
inconsistent with the provisions of this chapter.
(b) The resolution may also include provisions to insure the enforcement, collection, and
proper application of excise tax revenues as the [
(c) The proceeds of bonds payable in whole or in part from pledged class B or C road
funds shall be used to construct, repair, and maintain streets and roads in accordance with
Sections 72-6-108 and 72-6-110 and to fund any reserves and costs incidental to the issuance of
the bonds.
(d) When any bonds payable from excise tax revenues have been issued, the resolution or
other enactment of the [
which the tax is being collected, the obligation of the [
levy, collect, and allocate the excise tax, and to apply the revenues derived therefrom in
accordance with the provisions of the authorizing resolution or other enactment, shall be
irrevocable until the bonds have been paid in full as to both principal and interest, and is not
subject to amendment in any manner which would impair the rights of the holders of those bonds
or which would in any way jeopardize the timely payment of principal or interest when due.
(3) (a) The state pledges to and agrees with the holders of any bonds issued by a city,
town, or county to which the proceeds of excise taxes collected by the state and rebated to the
city, town, or county are devoted or pledged as authorized in this section, that the state will not
alter, impair, or limit the excise taxes in a manner that reduces the amounts to be rebated to the
city, town, or county which are devoted or pledged as authorized in this section until the bonds or
other securities, together with applicable interest, are fully met and discharged.
(b) Nothing in this Subsection (3) precludes alteration, impairment, or limitation of
excise taxes if adequate provision is made by law for the protection of the holders of the bonds.
(c) Each city, town, or county may include this pledge and undertaking for the state in
those bonds.
(4) The outstanding bonds to which excise tax revenues have been pledged as the sole
source of payment may not at any one time exceed an amount for which the average annual
installments of principal and interest will exceed 80% of the total excise tax revenues received
by the issuing entity from the collection or rebate of the excise tax revenues during the fiscal year
of the issuing entity immediately preceding the fiscal year in which the resolution authorizing the
issuance of bonds is adopted.
(5) Bonds issued solely from a special fund into which are to be deposited excise tax
revenues constitutes a borrowing solely upon the credit of the excise tax revenues received or to
be received by the city, town, or county and does not constitute an indebtedness or pledge of the
general credit of the city, town, or county.
(6) (a) Before issuing any bonds under this section, a city, town, or county shall:
(i) give public notice of its intent to issue the bonds; and
(ii) hold a public hearing to receive input from the public with respect to the issuance of
the bonds.
(b) The city, county, or town shall:
(i) publish the notice once each week for two consecutive weeks in the official
newspaper as designated under Section [
less than 14 days before the public hearing; and
(ii) ensure that the notice identifies:
(A) the purpose for the issuance of the bonds;
(B) the maximum principal amount of the bonds to be issued;
(C) the excise taxes proposed to be pledged for repayment of the bonds; and
(D) the time, place, and location of the public hearing.
(7) A city, town, or county shall submit the question of whether or not to issue any bonds
under this section to voters for their approval or rejection if, within 30 calendar days after the
notice required by Subsection (6), a written petition requesting an election and signed by at least
20% of the registered voters in the city, town, or county is filed with the city, town, or county.
Section 26. Section 11-14-308 , which is renumbered from Section 11-14-17.6 is
renumbered and amended to read:
[
mineral lease payments -- Use of bond proceeds -- Bond resolution -- Nonimpairment of
appropriation formula -- Issuance of bonds.
(1) Special service districts may:
(a) issue bonds payable, in whole or in part, from federal mineral lease payments which
are to be deposited into the Mineral Lease Account under Section 59-21-1 and distributed to
special service districts under Subsection 59-21-2 (3)(h); or
(b) pledge all or any part of the mineral lease payments referred to in Subsection (1)(a) as
an additional source of payment for their general obligation bonds.
(2) The proceeds of these bonds may be used:
(a) to construct, repair, and maintain streets and roads;
(b) to fund any reserves and costs incidental to the issuance of the bonds and pay any
associated administrative costs; and
(c) for capital projects of the special service district.
(3) (a) The special service district board shall enact a resolution authorizing the issuance
of bonds which, until the bonds have been paid in full:
(i) shall be irrevocable; and
(ii) may not be amended in any manner that would:
(A) impair the rights of the bond holders; or
(B) jeopardize the timely payment of principal or interest when due.
(b) Notwithstanding any other provision of this chapter, the resolution may contain
covenants with the bond holder regarding:
(i) mineral lease payments, or their disposition;
(ii) the issuance of future bonds; or
(iii) other pertinent matters considered necessary by the [
(A) assure the marketability of the bonds; or
(B) insure the enforcement, collection, and proper application of mineral lease payments.
(4) (a) Except as provided in Subsection (4)(b), the state may not alter, impair, or limit
the statutory appropriation formula provided in Subsection 59-21-2 (3)(h), in a manner that
reduces the amounts to be distributed to the special service district until the bonds and the
interest on the bonds are fully met and discharged. Each special service district may include this
pledge and undertaking of the state in these bonds.
(b) Nothing in this section:
(i) may preclude the alteration, impairment, or limitation of these bonds if adequate
provision is made by law for the protection of the bond holders; or
(ii) shall be construed:
(A) as a pledge guaranteeing the actual dollar amount ultimately received by individual
special service districts;
(B) to require the Department of Transportation to allocate the mineral lease payments in
a manner contrary to the general allocation method described in Subsection 59-21-2 (3)(h); or
(C) to limit the Department of Transportation in making rules or procedures allocating
mineral lease payments pursuant to Subsection 59-21-2 (3)(h).
(5) (a) The average annual installments of principal and interest on bonds to which
mineral lease payments have been pledged as the sole source of payment may not at any one time
exceed:
(i) 80% of the total mineral lease payments received by the issuing entity during the
fiscal year of the issuing entity immediately preceding the fiscal year in which the resolution
authorizing the issuance of bonds is adopted; or
(ii) if the bonds are issued during the first fiscal year the issuing entity is eligible to
receive funds, 60% of the amount estimated by the Department of Transportation to be
appropriated to the issuing entity in that fiscal year.
(b) The Department of Transportation shall not be liable for any loss or damage resulting
from reliance on the estimates.
(6) The final maturity date of the bonds may not exceed 15 years from the date of their
issuance.
(7) Bonds may not be issued under this section after December 31, 2010.
(8) Bonds which are payable solely from a special fund into which mineral lease
payments are deposited constitute a borrowing based solely upon the credit of the mineral lease
payments received or to be received by the special service district and do not constitute an
indebtedness or pledge of the general credit of the special service district or the state.
Section 27. Section 11-14-309 , which is renumbered from Section 11-14-18 is
renumbered and amended to read:
[
(1) Any bond issued under this chapter may be refunded as provided in the Utah
Refunding Bond Act.
(2) Nothing contained in this [
be construed to permit any [
[
pay them prior to their stated maturities, unless:
(a) the right to call [
in [
(b) all conditions with respect to the manner, price, and time applicable to [
redemption as set forth in the proceedings authorizing the outstanding bonds are strictly
observed[
(3) A holder of an outstanding bond may not be compelled to surrender [
for refunding [
reserved [
to the [
Section 28. Section 11-14-310 , which is renumbered from Section 11-14-19 is
renumbered and amended to read:
[
(1) Any bonds issued [
payable solely from revenues other than those derived from ad valorem taxes [
are full general obligations of the [
punctual payment of principal of and interest on which the full faith and credit of the
[
subdivision is hereby expressly required, regardless of any limitations which may otherwise exist
on the amount of taxes which the [
for the levy and collection annually of ad valorem taxes without limitation as to rate or amount
on all taxable property in the [
purpose. If by law ad valorem taxes for the [
by a board other than its [
made shall be levied by such other board and the [
be under the duty in due season in each year to provide such other board with all information
necessary to the levy of taxes in the required amount. Such taxes shall be levied and collected by
the same officers, at the same time and in the same manner as are other taxes levied for the
[
(2) If any [
levy or collect or cause to be levied or collected sufficient taxes for the prompt and punctual
payment of such principal and interest, any person in interest may enforce levy and collection
thereof in any court having jurisdiction of the subject matter, and any suit, action or proceeding
brought by such person in interest shall be a preferred cause and shall be heard and disposed of
without delay. All provisions of the constitution and laws relating to the collection of county and
municipal taxes and tax sales shall also apply to and regulate the collection of the taxes levied
pursuant to this section, through the officer whose duty it is to collect the taxes and money due
the [
Section 29. Section 11-14-311 , which is renumbered from Section 11-14-19.5 is
renumbered and amended to read:
[
(1) Whenever the [
of the [
under this chapter, the [
bond anticipation notes. Each resolution authorizing the issuance of bond anticipation notes
shall:
(a) describe the bonds in anticipation of which the notes are to be issued; and
(b) specify the principal amount of the notes and the maturity dates of the notes. The
resolution shall specify either the rates of interest, if any, on the notes or specify the method by
which interest on the notes may be determined while the notes are outstanding. If the resolution
specifies a method by which the interest rates on the notes may be determined, the resolution may
specify the maximum rate of interest which the notes may bear.
(2) Bond anticipation notes shall be issued and sold in a manner and at a price, either at,
below, or above face value, as the [
on bond anticipation notes may be made payable semiannually, annually, or at maturity. Bond
anticipation notes may be made redeemable prior to maturity at the option of the [
legislative body in the manner and upon the terms fixed by the resolution authorizing their
issuance. Bond anticipation notes shall be executed and shall be in a form and have details and
terms as provided in the authorizing resolution.
(3) Contemporaneously with the issuance of the bonds in anticipation of which bond
anticipation notes are issued, provision shall be made for the retirement of any outstanding bond
anticipation notes.
(4) Whenever the bonds in anticipation of which notes are issued are to be payable from
ad valorem taxes and constitute full general obligations of the [
subdivision, the bond anticipation notes and the interest on them shall be secured by a pledge of
the full faith and credit of the [
Section [
of the bonds in anticipation of which the notes are issued. Whenever the bonds in anticipation of
which the notes are to be issued are to be payable solely from revenues derived from the
operation of revenue-producing facilities, these bond anticipation notes and the interest on them
shall be secured by a pledge of the income and revenues derived by the [
political subdivision from the revenue-producing facilities and shall also be made payable from
funds derived from the sale of the bonds in anticipation of which the notes are issued.
(5) Bond anticipation notes issued under this section may be refunded by the issuance of
other bond anticipation notes issued under this section.
(6) Sections [
11-14-305 , 11-14-315 , 11-14-316 , and 11-14-401 apply to all bond anticipation notes issued
under this section.
(7) Bonds are not considered to have been issued more than ten years after the date of the
election authorizing the issuance of them, under Section [
these bonds has been anticipated under this section by bond anticipation notes issued prior to the
expiration of this ten-year period.
Section 30. Section 11-14-312 , which is renumbered from Section 11-14-19.6 is
renumbered and amended to read:
[
All bonds issued by any [
date of this [
hereby validated, ratified, and confirmed; and all such bonds are declared to constitute legally
binding obligations in accordance with their terms. Nothing in this section shall be construed to
affect or validate any bonds, the legality of which is being contested at the time this [
takes effect.
Section 31. Section 11-14-313 , which is renumbered from Section 11-14-19.7 is
renumbered and amended to read:
[
Limitation on amount of tax anticipation notes or bonds -- Procedure.
(1) For the purpose of meeting the current expenses of the [
subdivision and for any other purpose for which funds of the [
subdivision may be expended, the [
of 90% of the taxes and other revenues of the [
current year, issuing therefor negotiable notes or bonds of the [
subdivision. In the event that such notes or bonds are issued prior to the annual tax levy for the
year in which such indebtedness is contracted, the amount so issued shall not exceed 75% of the
tax revenues and other revenues of the preceding year, and the proceeds shall be applied only in
payment of current and necessary expenses and other purposes for which funds of the
[
annual levy a tax and there shall be provision made for the imposition and collection of sufficient
revenues other than taxes sufficient to pay the same at maturity. In the event that the taxes and
other revenues in any one year are insufficient through delinquency or uncollectibility of taxes or
other cause to pay when due all the lawful debts of the [
which have been or may hereafter be contracted, the [
[
succeeding year a sufficient tax and to provide for the imposition and collection of sufficient
revenues other than taxes to pay all of such lawfully contracted indebtedness, and may borrow as
provided in this section in anticipation of such tax and other revenues to pay any such lawfully
contracted indebtedness. Each resolution authorizing the issuance of tax anticipation notes shall:
(a) describe the taxes or revenues in anticipation of which the notes are to be issued; and
(b) specify the principal amount of the notes, the interest rates, if any, (including a
variable interest rate), the notes shall bear, and the maturity dates of the notes, which dates shall
not extend beyond the last day of the issuing [
year.
(2) Tax anticipation notes shall be issued and sold in such manner and at such prices
(whether at, below, or above face value) as the [
determine. Tax anticipation notes shall be in bearer form, except that the [
body may provide for the registration of the notes in the name of the owner, either as to principal
alone, or as to principal and interest. Tax anticipation notes may be made redeemable prior to
maturity at the option of the [
by the resolution authorizing their issuance. Tax anticipation notes shall be executed and shall be
in such form and have such details and terms as shall be provided in the authorizing resolution.
(3) The provisions of Sections [
11-14-315 , 11-14-316 , 11-14-401 , 11-14-403 , and 11-14-404 shall apply to all tax anticipation
notes issued under this section. In applying these sections to tax anticipation notes, "bond" or
"bonds" as used in these sections shall be deemed to include tax anticipation notes.
[
Section 32. Section 11-14-314 , which is renumbered from Section 11-14-19.8 is
renumbered and amended to read:
[
All obligations issued in anticipation of the collection of taxes and other revenues by any
[
proceedings had in the authorization and issuance of them are validated, ratified, and confirmed;
and all these obligations are declared to constitute legally binding obligations in accordance with
their terms. Nothing in this section shall be construed to affect or validate any of these
obligations, the legality of which is being contested at the time this [
Section 33. Section 11-14-315 , which is renumbered from Section 11-14-20 is
renumbered and amended to read:
[
other statutory provisions -- Budget provision required -- Applicable procedures for
issuance.
Bonds issued under this [
be incontestable in the hands of bona fide purchasers or holders for value and shall not be invalid
for any irregularity or defect in the proceedings for their issuance and sale. This [
intended to afford an alternative method for the issuance of bonds by [
political subdivisions and shall not be so construed as to deprive any [
political subdivision of the right to issue its bonds under authority of any other statute, but
nevertheless this [
[
Annotated 1953, shall not be applicable to bonds issued under this [
[
annual budget make proper provision for the payment of principal and interest currently falling
due on bonds issued hereunder, but no provision need be made in any such budget prior to the
issuance of the bonds for the issuance thereof or for the expenditure of the proceeds thereof. No
ordinance, resolution or proceeding in respect to the issuance of bonds hereunder shall be
necessary except as herein specifically required, nor shall the publication of any resolution,
proceeding or notice relating to the issuance of the bonds be necessary except as herein required.
Any publication made hereunder may be made in any newspaper conforming to the terms hereof
in which legal notices may be published under the laws of Utah, without regard to the
designation thereof as the official journal or newspaper of the [
subdivision. No resolution adopted or proceeding taken hereunder shall be subject to referendum
petition or to an election other than as herein required. All proceedings adopted hereunder may
be adopted on a single reading at any legally convened meeting of the [
body.
Section 34. Section 11-14-316 , which is renumbered from Section 11-14-21 is
renumbered and amended to read:
[
Contest.
[
(1) The legislative body of any [
the publication of any resolution or other proceeding adopted [
the local political subdivision.
[
for the issuance of bonds, the [
resolution or other proceeding, publish a notice of bonds to be issued, titled as such, containing:
(a) the name of the issuer;
(b) the purpose of the issue;
(c) the type of bonds and the maximum principal amount which may be issued;
(d) the maximum number of years over which the bonds may mature;
(e) the maximum interest rate which the bonds may bear, if any;
(f) the maximum discount from par, expressed as a percentage of principal amount, at
which the bonds may be sold; and
(g) the times and place where a copy of the resolution or other proceeding may be
examined, which shall be:
(i) at an office of the issuer[
(ii) identified in the notice[
(iii) during regular business hours of the issuer as described in the notice; and
(iv) for a period of at least 30 days after the publication of the notice.
[
(a) the legality of such resolution or proceeding[
(b) any bonds which may be authorized by such resolution or proceeding[
(c) any provisions made for the security and payment of the bonds.
(4) A person shall contest the matters set forth in Subsection (3) by filing a verified
written complaint in the district court of the county in which he resides within the 30-day period.
(5) After the 30-day period, no person may contest the regularity, formality, or legality of
[
Section 35. Section 11-14-401 , which is renumbered from Section 11-14-22 is
renumbered and amended to read:
[
future statutes dealing with municipal bond issues.
(1) This [
"Local Government Bonding Act."
(2) All bonds issued pursuant to authority contained in this [
their face a recital to that effect, and no [
amending other [
might be issued or dealing with bond issues of [
be construed to affect the authority to proceed under this [
provided unless such future statute amends this [
be applicable to bonds issued under this [
(3) All bonds referencing the prior title of this chapter, "Utah Municipal Bond Act," that
were issued prior to May 2, 2005 pursuant to the authority contained in this chapter shall be
considered to reference this chapter and shall be construed according to the terms of Subsection
(1) as if they refer to the current title of this chapter.
Section 36. Section 11-14-402 , which is renumbered from Section 11-14-23 is
renumbered and amended to read:
[
(1) Except as provided in Subsection (2), this chapter does not apply to bonds issued by
the state of Utah nor to bonds or obligations payable solely from special assessments levied on
benefited property.
(2) Sections [
in accordance with their terms.
Section 37. Section 11-14-403 , which is renumbered from Section 11-14-24 is
renumbered and amended to read:
[
To the extent that any one or more provisions of this [
any other law or laws, the provisions of this [
Section 38. Section 11-14-404 , which is renumbered from Section 11-14-25 is
renumbered and amended to read:
[
If any one or more sentences, clauses, phrases, provisions or sections of this [
or the application thereof to any set of circumstances shall be held by final judgment of any court
of competent jurisdiction to be invalid, the remaining sentences, clauses, phrases, provisions and
sections hereof and the application of this [
nevertheless continue to be valid and effective, the legislature hereby declaring that all provisions
of this [
Section 39. Section 11-14-405 , which is renumbered from Section 11-14-26 is
renumbered and amended to read:
[
All bonds issued by any [
date of this [
hereby validated, ratified and confirmed and all such bonds are declared to constitute legally
binding obligations in accordance with their terms. Nothing in this section shall be construed to
affect or validate any bonds, the legality of which is being contested at the time this [
takes effect.
Section 40. Section 11-14-406 , which is renumbered from Section 11-14-27 is
renumbered and amended to read:
[
Sections [
to all bond elections [
public transit district, improvement district under Title 17A, Chapter 2, Part 3, special service
district operating under authority of the Utah Special Service District Act, water conservancy
district, metropolitan water district and, except as otherwise provided in Section [
11-14-402 , by any other taxing district or governmental entity whether or not the bonds are
issued [
Section 41. Section 11-14-501 , which is renumbered from Section 11-14-28 is
renumbered and amended to read:
[
(1) As used in this section:
(a) "Bonds" means any bond, note, lease, or other obligation of a governmental unit.
(b) "Governmental unit" has the meaning assigned in Subsection 70A-9a-102 (45).
(c) "Pledge" means the creation of a security interest of any kind.
(d) "Property" means any property or interests in property, other than real property.
(e) "Security agreement" means any resolution, ordinance, indenture, document, or other
agreement or instrument under which the revenues, fees, rents, charges, taxes, or other property
are pledged to secure the bonds.
(2) This section expressly governs the creation, perfection, priority, and enforcement of a
security interest created by the state or a governmental unit of the state, notwithstanding anything
in Title 70A, Chapter 9a, Uniform Commercial Code - Secured Transactions, to the contrary.
(3) (a) The revenues, fees, rents, charges, taxes, or other property pledged by a
governmental unit for the purpose of securing its bonds are immediately subject to the lien of the
pledge.
(b) (i) The lien is a perfected lien upon the effective date of the security agreement.
(ii) The physical delivery, filing, or recording of a security agreement or financing
statement under the Uniform Commercial Code or otherwise, or any other similar act, is not
necessary to perfect the lien.
(c) The lien of any pledge is valid, binding, perfected, and enforceable from the time the
pledge is made.
(d) The lien of the pledge has priority:
(i) based on the time of the creation of the pledge unless otherwise provided in the
security agreement; and
(ii) as against all parties having claims of any kind in tort, contract, or otherwise against
the governmental unit, regardless of whether or not the parties have notice of the lien.
(e) Each pledge and security agreement made for the benefit or security of any of the
bonds shall continue to be effective until:
(i) the principal, interest, and premium, if any, on the bonds have been fully paid;
(ii) provision for payment has been made; or
(iii) the lien created by the security agreement has been released by agreement of the
parties in interest or as provided by the security agreement that created the lien.
Section 42. Section 11-17-3 is amended to read:
11-17-3. Powers of municipalities, counties, and state universities.
(1) Each municipality, county, and state university may:
(a) finance or acquire, whether by construction, purchase, devise, gift, exchange, or lease,
or any one or more of those methods, and construct, reconstruct, improve, maintain, equip, and
furnish or fund one or more projects, which shall be located within this state, and which shall be
located within, or partially within, the municipality or county or within the county within which a
state university is located, unless an agreement under the Interlocal Cooperation Act has been
entered into as authorized by Subsection (5), except that if a governing body finds, by resolution,
that the effects of international trade practices have been or will be adverse to Utah
manufacturers of industrial products and, therefore, it is desirable to finance a project in order to
maintain or enlarge domestic or foreign markets for Utah industrial products, a project may
consist of the financing on behalf of a user of the costs of acquiring industrial products
manufactured in, and which are to be exported from, the state [
(b) finance for, sell, lease, contract the management of, or otherwise dispose of to, any
person, firm, partnership, or corporation, either public or private, including without limitation
any person, firm, partnership, or corporation engaged in business for a profit, any or all of its
projects upon the terms and conditions as the governing body [
which do not conflict with this chapter;
(c) issue revenue bonds for the purpose of defraying the cost of financing, acquiring,
constructing, reconstructing, improving, maintaining, equipping, furnishing, or funding any
project and secure the payment of the bonds as provided in this chapter, which revenue bonds
may be issued in one or more series or issues where [
series or issue may contain different maturity dates, interest rates, priorities on securities
available for guaranteeing payment of them, and other differing terms and conditions [
considered necessary and not in conflict with this chapter;
(d) (i) grant options to renew any lease with respect to any project and to buy any project
at a price the governing body [
(ii) sell and convey any real or personal property acquired under Subsection (1)(a) at
public or private sale, and make an order respecting the sale [
the best interests of the municipality, county, or state university, the sale or conveyance to be
subject to the terms of any lease but to be free and clear of any other encumbrance;
(e) establish, acquire, develop, maintain, and operate industrial parks; and
(f) offer to the holders of its bonds issued pursuant to this chapter the right, where its
governing body [
bond obligation into an equity position in some or all of the assets developed with the proceeds
of the bond offering.
(2) An economic development or new venture investment fund shall be considered to be
located in the municipality or county where its headquarters is located or where any office of it is
located, as long as it is headquartered within the state. It need not make all of its investments
within the state of Utah or such county or municipality, so long as it locates within the state of
Utah or such county or municipality its headquarters where its actual investment decisions and
management functions occur and agrees to, and does, limit the aggregate amount of its
investments in companies located outside the state of Utah to an amount which in the aggregate
does not exceed the aggregate amount of investments made by institutions and funds located
outside the state of Utah in companies headquartered in Utah which the locally managed fund has
sponsored or in which it has invested and which it has brought to the attention of investors
outside the state of Utah. For purposes of enabling an offering of bonds to fund such a fund, a
certification of an executive managerial officer of the manager of said fund of the intention to
comply with this provision may be relied upon. Each fund shall at least annually certify to the
governmental offeror of such bonds its compliance with this provision.
(3) Before any municipality, county, or state university issues revenue bonds under this
chapter for the purpose of defraying the cost of acquiring, constructing, reconstructing,
improving, maintaining, equipping, or furnishing any industrial park project, the governing body
of the state university, county, or municipality shall adopt and establish a plan of development
for the tracts of land to constitute the industrial park and shall, by resolution, find that the project
for the establishment of the industrial park is well conceived and has a reasonable prospect of
success, that the project will tend to provide proper economic development of the municipality or
county and will encourage industry to locate within or near the municipality or county or, in the
case of state universities, will further, through industrial research and development, the
instructional progress of the state university. There may be included as a part of any plan of
development for any industrial park zoning regulations, restrictions on usage of sites within the
boundaries of the industrial park, minimum size of sites, parking and loading regulations, and
methods for the providing and furnishing of police and fire protection and for the furnishing of
other municipal or county services which are [
for the maintenance of the public health and safety. If any water or sewerage facilities are to be
acquired as part of the development of the land for an industrial park under this chapter, water
and sewerage facilities may be acquired as part of the issue of bonds issued under this chapter,
through the issuance of bonds payable from water and sewer charges in the manner as is now or
as may hereafter be provided by law, in combination with an issue of refunding bonds, in
combination with an issue of bonds upon the consent of the holders of outstanding bonds issued
for the same purpose, in combination with bonds issued for the purposes of financing water and
sewer facilities which will not be a part of an industrial park, or in any combination of the
foregoing. Any municipality, county, or state university establishing an industrial park may lease
any land acquired and developed as part of an industrial park to one or more lessees. The lessee
may sublease all or a portion of the land so leased from the municipality or county.
Municipalities, counties, and state universities may sell or lease land in connection with the
establishment, acquisition, development, maintenance, and operation of an industrial park
project. Any such lease or sale of land shall be undertaken only after the adoption by the
governing body of a resolution authorizing the lease or sale of the land for industrial park
purposes.
(4) (a) No municipality, county, or state university may operate any project referred to in
this section, as a business or in any other manner except as the lessor or administrator of it, nor
may it acquire any such project, or any part of it, by condemnation. This prohibition does not
apply to projects involving research conducted, administered, or managed by a state university.
(b) No municipality, county, or state university may, under this chapter, acquire or lease
projects, or issue revenue bonds for the purpose of defraying the cost of any project or part of it,
used for the generation, transmission, or distribution of electric energy beyond the project site, or
the production, transmission, or distribution of natural gas, except for any project defined in
Subsection 11-17-2 (8)(b) or (d).
(5) Each municipality, county, and state university may enter, either before or after the
bonds have been issued, into interlocal agreements under Title 11, Chapter 13, Interlocal
Cooperation Act, with one or more municipalities, counties, state universities, or special service
districts created pursuant to Title 17A, Chapter 2, Part 13, Utah Special Service District Act, in
order to accomplish economies of scale or other cost savings and any other additional purposes to
be specified in the interlocal agreement, for the issuance of bonds under this chapter on behalf of
all of the signatories to the interlocal agreement by one of the municipalities, counties, or state
universities which is a signatory to the interlocal agreement for the financing or acquisition of
projects qualifying as a project under Subsection 11-17-2 (8). For all purposes of Section
11-13-207 the signatory to the interlocal agreement designated as the issuer of the bonds
constitutes the administrator of the interlocal agreement.
(6) Subsection (4) to the contrary notwithstanding, the governing body of any state
university owning or desiring to own facilities or administer projects described in Subsection
11-17-2 (8) may:
(a) become a signatory to the interlocal agreement provided for in Subsection (5);
(b) enter into a separate security agreement with the issuer of the bonds, as provided in
Section 11-17-5 for the financing or acquisition of a project under Subsection 11-17-2 (8) to be
owned by the state university;
(c) enter into agreements to secure the obligations of the state university under a security
agreement entered into under Subsection (6)(b), or to provide liquidity for such obligations
including, without limitation, letter of credit agreements with banking institutions for letters of
credit or for standby letters of credit, reimbursement agreements with financial institutions, line
of credit agreements, standby bond purchase agreements, and to provide for payment of fees,
charges, and other amounts coming due under the agreements entered into under the authority
contained in this Subsection (6)(c);
(d) provide in security agreements entered into under Subsection (6)(b) and in
agreements entered into under Subsection (6)(c) that the obligations of the state university under
an agreement shall be special obligations payable solely from the revenues derived from the
operation or management of the project, owned by the state university and from net profits from
proprietary activities and any other revenues pledged other than appropriations by the Utah
Legislature, and the governing body of the state university shall pledge all or any part of such
revenues to the payment of its obligations under an agreement; and
(e) in order to secure the prompt payment of the obligations of the state university under
a security agreement entered into under Subsection (6)(b) or an agreement entered into under
Subsection (6)(c) and the proper application of the revenues pledged to them, covenant and
provide appropriate provisions in an agreement to the extent permitted and provided for under
Section 53B-21-102 .
(7) Subsection (4) to the contrary notwithstanding, the governing body of any
municipality, county, or special service district owning, desiring to own, or administering
projects or facilities described in Subsection 11-17-2 (8) may:
(a) become a signatory to the interlocal agreement provided for in Subsection (5);
(b) enter into a separate security agreement with the issuer of the bonds, as provided in
Section 11-17-5 , for the financing or acquisition of a project under Subsection 11-17-2 (8) to be
owned by the municipality, county, or special service district, as the case may be, except that no
municipality, county, or special service district may mortgage the facilities so financed or
acquired;
(c) enter into agreements to secure the obligations of the municipality, county, or special
service district, as the case may be, under a security agreement entered into under Subsection
(7)(b), or to provide liquidity for such obligations including, without limitation, letter of credit
agreements with banking institutions for letters of credit or for standby letters of credit,
reimbursement agreements with financial institutions, line of credit agreements, standby bond
purchase agreements, and to provide for payment of fees, charges, and other amounts coming due
under the agreements entered into under the authority contained in this Subsection (7)(c);
(d) provide in security agreements entered into under Subsection (7)(b) and in
agreements entered into under Subsection (7)(c) that the obligations of the municipality, county,
or special service district, as the case may be, under an agreement shall be special obligations
payable solely from the revenues derived from the operation or management of the project,
owned by the municipality, county, or special service district, as the case may be, and the
governing body of the municipality, county, or special service district, as the case may be, shall
pledge all or any part of such revenues to the payment of its obligations under an agreement; and
(e) in order to secure the prompt payment of obligations under a security agreement
entered into under Subsection (7)(b) or an agreement entered into under Subsection (7)(c) and the
proper application of the revenues pledged to them, covenant and provide appropriate provisions
in an agreement to the extent permitted and provided for with respect to revenue obligations
under Section [
(8) In connection with the issuance of bonds under this chapter, a municipality, county,
or state university:
(a) may provide for the repurchase of bonds tendered by their owners and may enter into
an agreement to provide liquidity for such repurchases, including a letter of credit agreement, line
of credit agreement, standby bond purchase agreement, or other type of liquidity agreement;
(b) may enter into remarketing, indexing, tender agent, or other agreements incident to
the financing of the project or the performance of the issuer's obligations relative to the bonds;
and
(c) may provide for payment of fees, charges, and other amounts coming due under the
agreements entered into pursuant to authority contained in Subsection (6).
Section 43. Section 11-25-5 is amended to read:
11-25-5. Bonds or notes -- Issuance -- Purposes -- Payment -- Maturity of bond
anticipation notes.
An agency may, from time to time, issue its negotiable bonds or notes for the purpose of
financing residential rehabilitation as authorized by this act and for the purpose of funding or
refunding these bonds or notes in the same manner as it may issue other bonds or notes as
provided in Title 17B, Chapter 4, Part 12, Bonds. Every issue of its bonds shall be a special
obligation of the agency payable from all or any part of the revenues specified in the act or funds
legally received by the agency. In anticipation of the sale of the bonds, the agency may issue
negotiable bond anticipation notes in accordance with Section [
renew such notes from time to time. Bond anticipation notes may be paid from the proceeds of
sale of the bonds of the agency in anticipation of which they were issued. Bond anticipation
notes and agreements relating thereto and the resolution or resolutions authorizing the notes and
agreements may obtain any provisions, conditions, or limitations which a bond, agreement
relating thereto, or bond resolution of the agency may contain except that any note or renewal
thereof shall mature at a time not later than five years from the date of the issuance of the original
note.
Section 44. Section 11-27-3 is amended to read:
11-27-3. Action by resolution of governing body -- Purposes for bond issue --
Exchange or sale -- Interest rate limitations inapplicable -- Principal amount -- Investment
of proceeds -- Safekeeping and application of proceeds -- Computing indebtedness --
Payment of bonds -- Combination issues -- Laws applicable to issuance -- Payment from
taxes or pledged revenues.
(1) Any formal action taken by the governing body of a public body under the authority
of this chapter may be taken by resolution of that governing body.
(2) (a) The governing body of any public body may by resolution provide for the issuance
of refunding bonds to refund outstanding bonds issued by the public body or its predecessor,
either prior to or after the effective date of this chapter, only:
(i) to pay or discharge all or any part of any outstanding series or issue of bonds,
including applicable interest, in arrears or about to become due and for which sufficient funds are
not available;
(ii) to achieve a savings; or
(iii) to achieve another objective that the governing body finds to be beneficial to the
public body.
(b) Any refunding bonds may be delivered in exchange for the outstanding bonds being
refunded or may be sold in a manner, at terms, with details, and at a price above, at, or below par
as the governing body determines advisable. The refunding bonds may be issued without an
election, unless an election is required by the Utah Constitution.
(c) It is the express intention of the Legislature that interest rate limitations elsewhere
appearing in the laws of the state not apply to nor limit the rates of interest borne by refunding
bonds.
(3) Advance refunding bonds may be issued in a principal amount in excess of the
principal amount of the bonds to be refunded as determined by the governing body. This amount
may be equal to the full amount required to pay the principal of, interest on, and redemption
premiums, if any, due in connection with the bonds to be refunded to and including their dates of
maturity or redemption in accordance with the advance refunding plan adopted by the governing
body, together with all costs incurred in accomplishing this refunding. The principal amount of
refunding bonds may be less than or the same as the principal amount of the bonds being
refunded so long as provision is duly and sufficiently made for the retirement or redemption of
the bonds to be refunded. Any reserves held or taxes levied or collected to secure the bonds to be
refunded may be applied to the redemption or retirement of the bonds, or otherwise, as the
governing body may determine.
(4) Prior to the application of the proceeds derived from the sale of advance refunding
bonds to the purposes for which the bonds have been issued, these proceeds, together with any
other legally available funds, including reserve funds, may be invested and reinvested only in
government obligations maturing at such times as may be required to provide funds sufficient to
pay principal of, interest on, and redemption premiums, if any, due in connection with the bonds
to be refunded or the advance refunding bonds, or both, in accordance with the advance
refunding plan. To the extent incidental expenses have been capitalized, these bond proceeds
may be used to defray these expenses.
(5) The governing body may contract regarding the safekeeping and application of the
proceeds of sale of advance refunding bonds and other funds included with them and the income
from them, including the right to appoint a trustee, which may be any trust company or state or
national bank having powers of a trust company inside or outside the state. The governing body
may provide in the advance refunding plan that until such monies are required to redeem or retire
the bonds to be refunded, the advance refunding bond proceeds and other funds, and the income
from them, shall be used to pay and secure payment of principal of, interest on, and redemption
premiums, if any, due in connection with all or a portion of the advance refunding bonds or the
bonds being refunded, or both.
(6) In computing indebtedness for the purpose of any applicable constitutional or
statutory debt limitation, there shall be deducted from the amount of outstanding indebtedness
the principal amount of outstanding general obligation bonds for the payment of which there has
been dedicated and deposited in escrow government obligations, the principal of or interest on
which, or both, will be sufficient to provide for the payment of these general obligation bonds as
to principal, interest, and redemption premiums, if any, when due at maturity or upon some
earlier date upon which the bonds have been called for redemption in accordance with their
terms.
(7) When a public body has irrevocably set aside for and pledged to the payment of
bonds to be refunded proceeds of advance refunding bonds and other monies in amounts which,
together with known earned income from their investment, will be sufficient in amount to pay the
principal of, interest on, and any redemption premiums due on the bonds to be refunded as the
same become due and to accomplish the refunding as scheduled, the refunded bonds shall be
[
statutory debt limitation.
(8) Refunding bonds and bonds issued for any other purpose may be issued separately or
issued in combination in one or more series or issues by the same issuer.
(9) Except as specifically provided in this section, refunding bonds issued under this
chapter shall be issued in accordance with the provisions of law applicable to the type of bonds
of the issuer being refunded in effect either at the time of the issuance of the refunding bonds or
at the time of issuance of the bonds to be refunded. Refunding bonds and coupons, if any,
pertaining to them may bear facsimile signatures as provided in Section [
(10) Refunding bonds may be made payable from any taxes or pledged revenues, or both,
or any assessments, special improvement guaranty funds, or other funds which might be legally
pledged for the payment of the bonds to be refunded at the time of the issuance of the refunding
bonds or at the time of the issuance of the bonds to be refunded, as the governing body may
determine.
Section 45. Section 15-7-12 is amended to read:
15-7-12. Obligations subject to chapter.
(1) Unless the official or official body of the issuer determines otherwise before or at the
time of the original issuance of a registered public obligation, this act is applicable to such
registered public obligation. When this act is applicable, the provisions of this act prevail over
any inconsistent provision under any other law. Pursuant to Section [
act is specifically made applicable to registered public obligations issued under Title 11, Chapter
14, [
[
(2) Nothing in this act limits or prevents the issuance of obligations in any other form or
manner authorized by law.
(3) Unless determined otherwise pursuant to Subsection (1), this act is applicable with
respect to obligations which have been approved before enactment of this act by vote,
referendum, or hearing, which authorized or permitted the authorization of obligations in bearer
and registered form, or in bearer form only, and such obligations need not be resubmitted for a
further vote, referendum or hearing, for the purpose of authorizing or permitting the authorization
of registered public obligations under this act.
Section 46. Section 17-12-1 is amended to read:
17-12-1. Authority and applicable procedure for issuance of bonds -- Application
of proceeds -- Debt limit.
Except as otherwise provided under Section 17-50-303 , the county legislative body may
contract a bonded indebtedness in the manner and subject to the conditions provided under Title
11, Chapter 14, [
from the sale of bonds shall be applied only to the purpose or purposes specified in the order of
the county legislative body. If there is any surplus, it shall be applied to the payment of the
bonds. In no event may any county become so indebted to an amount, including existing
indebtedness, exceeding 2% of the fair market value, as defined under Section 59-2-102 , of the
taxable property in the county as computed from the last equalized assessment roll for county
purposes prior to the incurring of the indebtedness.
Section 47. Section 17-24-1 is amended to read:
17-24-1. General duties of treasurer.
The county treasurer shall:
(1) receive all money belonging to the county and all other money by law directed to be
paid to the treasurer, including proceeds of bonds, notes, or other evidences of indebtedness
issued under Title 11, Chapter 14, [
(2) deposit and invest all money received under Title 51, Chapter 7, State Money
Management Act;
(3) keep a record of the receipts and expenditures of all such money;
(4) disburse county money:
(a) on a county warrant issued by the county auditor; or
(b) subject to Sections 17-19-1 , 17-19-3 , and 17-19-5 , by a county check or such other
payment mechanism as may be adopted pursuant to Chapter 36, Uniform Fiscal Procedures Act
for Counties;
(5) perform the duties assigned to the treasurer under Title 59, Chapter 2, Part 13,
Collection of Taxes;
(6) perform the duties under Title 59, Chapter 2, Part 13, Collection of Taxes, that have
been reassigned to the treasurer in an ordinance adopted under Section 17-16-5.5 ; and
(7) perform other duties that are required by law or ordinance.
Section 48. Section 17-36-54 is amended to read:
17-36-54. Tax stability and trust fund -- Use of principal -- Determination of
necessity -- Election.
If the legislative body of a county that has established a tax stability and trust fund under
Section 17-36-51 determines that it is necessary for purposes of that county to use any portion of
the principal of the fund, the county legislative body shall submit this proposition to the
electorate of that county in a special election called and held in the manner provided for in Title
11, Chapter 14, [
elections. If the proposition is approved at this special election by a majority of the qualified
electors of the county voting at the election, then that portion of the principal of the fund covered
by the proposition may be transferred to the county's general fund for use for purposes of that
county.
Section 49. Section 17-50-303 is amended to read:
17-50-303. County may not give or lend credit -- County may borrow in
anticipation of revenues -- Assistance to nonprofit entities.
(1) A county may not give or lend its credit to or in aid of any person or corporation, or,
except as provided in Subsection (3), appropriate money in aid of any private enterprise.
(2) (a) A county may borrow money in anticipation of the collection of taxes and other
county revenues in the manner and subject to the conditions of Title 11, Chapter 14, [
(b) A county may incur indebtedness under Subsection (2)(a) for any purpose for which
funds of the county may be expended.
(3) After first holding a public hearing, a county may provide services or give other
nonmonetary property or assistance to or waive fees required to be paid by a nonprofit entity,
whether or not the county receives consideration in return.
Section 50. Section 17A-2-306 is amended to read:
17A-2-306. Bonds.
(1) The board of trustees may, at any time after its organization, adopt a resolution
determining it desirable to issue the bonds of the district for purposes and in amounts stated in
the resolution. The resolution shall specify whether the bonds are payable from taxes or from the
operating revenues of the district, or both. Where the bonds are payable from taxes, in whole or
in part, the board of trustees shall call a bond election. If at the election, the proposition to issue
the bonds is approved, the board of trustees shall issue the bonds in the manner provided in Title
11, Chapter 14, [
payable solely from the operating revenues of the district, no election is required to approve their
issuance, and such bonds shall be issued pursuant to the resolution and in the manner provided in
Title 11, Chapter 14, [
reduce the amount of bonds.
(2) Any bonds authorized prior to April 28, 1986, by an electric service district created
pursuant to Chapter 2, Part 3, County Improvement Districts for Water, Sewerage, Flood
Control, Electric and Gas, are considered valid and binding if all of the following conditions
have been met:
(a) a resolution has been adopted by the board of trustees of the electric service district,
prior to April 28, 1986, for the purpose of authorizing the bonds, whether or not these bonds have
been issued;
(b) the bonds are delivered and paid for;
(c) the electric service district which authorized the bonds complied with all of the
requirements for electric service districts set forth in Section 17A-2-305 ; and
(d) the requirements of Subsection (1) are met.
(3) If any bonds have been authorized under the conditions described in Subsection (2),
prior to April 28, 1986, the board of trustees of the electric service district may make any
necessary changes in the specifications of the bonds or the proceedings authorizing the bonds.
Section 51. Section 17A-2-307 is amended to read:
17A-2-307. Resolution calling bond election -- Precincts and polling places.
If, under the provisions of Section 17A-2-306 , the board shall determine to call an
election on the issuance of the bonds, the board shall adopt a resolution directing that an election
be held in the district for the purpose of determining whether bonds in the amount, for the
purpose, and with the maximum maturity specified in the resolution, shall be issued. The
resolution calling the election shall be adopted, notice of the election shall be given, the election
shall be held, voters' qualifications shall be determined, and the results thereof canvassed in the
manner and subject to the conditions provided for in Title 11, Chapter 14, [
entire district as a single precinct or may divide the district into such precincts and fix such
polling places as it may see fit.
Section 52. Section 17A-2-309 is amended to read:
17A-2-309. Results of bond election -- Resolution -- Issuance of bonds -- Maximum
bonded indebtedness.
(1) The results of the bond election shall be canvassed by the board of trustees and a
resolution adopted by the board declaring the results, and a certified copy of the resolution filed
in the records of the district. The results of all subsequent elections shall be similarly canvassed
by the board of trustees and resolutions declaring the results of the elections adopted and filed.
(2) If, at the bond election, a majority of the qualified voters voting on any bond
proposition vote in favor of the issuance of the bonds, the board of trustees shall proceed to issue
the bonds. Bonds may be issued for the purpose of constructing or acquiring any improvement
provided in Section 17A-2-301 , or any part or combination of them, or for improving and
extending the improvement or combination of improvements, and may include the payment of all
legal, engineering, and fiscal agent expenses reasonably incurred in connection with the
construction, acquisition, improving, and extending of these improvements and with the
authorization and issuance of the bonds. The bonds shall be fully negotiable for all purposes and
may not be issued in an amount which, together with all other existing indebtedness of the
district then outstanding, will exceed in total principal amount 2.4% of the taxable value of
taxable property in the district as computed from the last equalized assessment roll for county
purposes made and completed prior to the issuance of the bonds. The taxable value of all tax
equivalent property, as defined in Subsection 59-3-102 (2), shall be included as a part of the total
taxable value of taxable property in the district for purposes of the limitations. Bonds issued in
the manner that they are payable solely from revenues to be derived from the operation of all or
part of the facilities of the district may not be included as bonded indebtedness of the district for
the purpose of this computation. All bonds not payable solely from revenues shall be the general
obligations of the district, and the full faith, credit, and resources of the district shall be pledged
for their payment; and regardless of any limitations contained elsewhere in the laws of Utah and
this part, including Section 17A-2-312 , the board of trustees shall cause to be levied annually on
all taxable property in the district taxes sufficient to pay principal and interest on general
obligation bonds as principal and interest fall due, or if the bonds are payable primarily from
revenues, then anticipate and make up any amounts which may be necessary to pay the principal
and interest by reason of deficiencies in revenues. The bonds shall be issued and sold in
compliance with Title 11, Chapter 14, [
Section 53. Section 17A-2-423 is amended to read:
17A-2-423. Resolution calling election for issuing general obligation and revenue
bonds.
(1) If under the foregoing provisions the board is authorized to call an election on the
issuance of the bonds, the board shall adopt a resolution directing that an election be held in the
county or service area, as the case may be, for the purpose of determining whether bonds in the
amount, for the purpose, and with the maximum maturity specified in the resolution, shall be
issued. A proposition for issuing general obligation bonds and a proposition for issuing revenue
bonds, or any combination thereof, may be submitted at the same election.
(2) Adoption of the resolution calling the election, determination of voters'
qualifications, notice and conduct of the election, and the canvass of election results shall be
accomplished in the manner prescribed in Title 11, Chapter 14, [
Government Bonding Act. The board, for purposes of the election, may treat the entire district as
a single precinct or divide the district into several precincts and it may fix such polling places as
it considers appropriate.
Section 54. Section 17A-2-428 is amended to read:
17A-2-428. Tax anticipation notes.
(1) The board of trustees of a service area may issue notes in anticipation of the receipt of
taxes levied under this part. The amount of notes so issued shall not exceed 75% of the tax
revenues and other revenues of the preceding year, and the proceeds shall be applied only to pay
current and necessary expenses and for other purposes for which funds for the service area may
be expended, and there shall be included in the annual levy a tax in connection with which
provision is made for the imposition and collection of sufficient revenues.
(2) Each resolution authorizing the issuance of tax anticipation notes shall:
(a) describe the taxes or revenues in anticipation of which the notes are to be issued; and
(b) specify the principal amount of the notes, their rate of interest, which may be
variable, and their maturity date, which shall not extend beyond the last day of the fiscal year of
the issuing service area.
(3) Tax anticipation notes shall be issued and sold in such manner and at such price
(whether at, below, or above face value), as the board of trustees shall by resolution determine.
Tax anticipation notes shall be in bearer form, except that the board of trustees may provide for
the registration of the notes in the name of the owner, either as to principal alone, or as to
principal and interest. Tax anticipation notes may be made redeemable prior to maturity at the
option of the board of trustees in the manner and upon the terms fixed by the resolution
authorizing their issuance. Tax anticipation notes shall be executed and shall be in such form
and have such details and terms as shall be provided for in the authorizing resolution.
(4) The provisions of Sections [
11-14-315 , 11-14-316 , 11-14-401 , 11-14-403 , and 11-14-404 shall apply to all tax anticipation
notes issued under this section. In applying these sections to tax anticipation notes, "bond" or
"bonds" as used in these sections shall be deemed to include tax anticipation notes.
Section 55. Section 17A-2-543 is amended to read:
17A-2-543. Contractual powers -- Bond issues -- Elections -- Limitations -- Uses.
Whenever the board of trustees considers it expedient it shall have power, for the purpose
of constructing drains, drainage canals and other required improvements necessary to drain lands
in the district or conserve the public health or welfare, to make a contract or contracts with the
United States providing for the repayment of the principal and such other sums due thereunder at
such times as may be agreed upon, or to issue bonds of the district to run not less than five years
nor more than 40 years, and to bear interest, payable semiannually, at a rate not exceeding 8% per
annum to be called "drainage district bonds," which bonds shall not be sold for less than 90% of
their par value, and the proceeds of which shall be used for no other purpose than paying the cost
of constructing such drains, drainage canals, or other like work considered necessary to drain
lands within the district, or conserve the public health or welfare. Before such contract or
contracts shall be made or bonds shall be issued, the board of trustees shall request the county
legislative body to order, and the county legislative body shall at once order a special election on
the question of the issuance of bonds. The persons authorized to vote in, the giving of notice, the
forms of ballots, and the manner of holding the election, and canvassing the results of the
election, shall be as provided in Title 11, Chapter 14, [
Bonding Act. The expenses of such election shall be paid out of the funds belonging to the
drainage district. The terms and times of payment of the bonds so issued shall be fixed by the
board of trustees. The bonds shall be issued for the benefit of the district authorizing the issue
and shall bear the name and number of the district. The board of trustees shall keep a record of
the bonds issued and sold or otherwise disposed of, and such record will also show the lands
embraced in the district. In no case shall the amount of bonds exceed the benefits assessed.
Each bond issued shall show expressly upon its face that it is to be paid by a tax assessed, levied,
and collected on the lands within the drainage district. The board of trustees shall, by resolution,
provide for the issuance and disposal of such bonds and for the payment of the interest thereon,
the creation of a sinking fund for the ultimate redemption thereof, and for the date and manner of
the redemption of the bonds. The board of trustees may sell or dispose of the bonds either at
public or private sale. Before making any such sale, either private or public, the board of trustees
shall give due notice of their intention to sell or dispose of the bonds, by publishing notice of sale
at least once a week for four consecutive weeks in some newspaper having general circulation in
the state and in the county where the district is situated, and by publishing in any other
publication they consider advisable. The notice shall state that sealed proposals will be received
by the board of trustees at their office, for the purchase of the bonds, until the day and hour fixed
by the board of trustees. At the time appointed the board of trustees shall open the proposals, and
award the purchase of the bonds to the highest responsible bidder, or may reject all bids. In case
no bid is made and accepted as above provided, the board of trustees is hereby authorized to use
the bonds for the construction of any ditches, drain or drains, drainage canal or drainage canals,
or any other required improvement considered necessary to drain lands or for the public health or
welfare.
Section 56. Section 17A-2-622 is amended to read:
17A-2-622. Petition for bond election -- Petition requirements -- Notice and hearing
-- Election regarding issuance of bonds.
(1) After a fire protection district has been created, a petition may be presented to the fire
protection district board of trustees requesting the board to order an election to determine
whether the bonds of the district shall be issued to the amount and for the purpose or purposes
stated in the petition.
(2) (a) Each petition under Subsection (1) shall be signed by 25% or more of the holders
of title of real property, or documentary evidence of title, within the boundaries of the district
whose names appear as such upon the last county assessment roll.
(b) If the petition is signed by all of the holders of title or documentary evidence of title
within the boundaries of the district, a hearing on the petition and election shall be dispensed
with.
(3) (a) The board of trustees shall set a time and place for hearing upon the petition,
which shall be not less than four nor more than six weeks from the date of the filing.
(b) The board of trustees shall publish a notice of the time of the hearing once each week
for three successive weeks, previous to the time of the hearing, in a newspaper published within
the county, or if there is no newspaper so published, then by posting the notice in at least three
public places in the district for a period of 15 days.
(c) Each notice under Subsection (3)(b) shall state that any taxpayer within the district
may appear on the date fixed for the hearing and offer objection to the issuance of bonds of such
district.
(4) (a) At the time and place fixed for the hearing on the petition or at any adjournment
or adjournments of the hearing, which shall not extend the time for determining the petition for
more than 30 days in all from the original date of hearing, the board of trustees shall hear the
petition and all competent and relevant evidence, oral or written, in support of or in objection to
the petition.
(b) The board of trustees shall, after a full hearing, determine whether an election should
be held on the question of issuing the bonds.
(5) Adoption of a resolution calling the election, determination of voters' qualifications,
notice and conduct of the election, and the canvass of election results shall be accomplished in
the manner prescribed in Title 11, Chapter 14, [
Bonding Act. The fire protection district board of trustees, for purposes of the election, may treat
the entire district as a single precinct or divide the district into several precincts and it may fix
such polling places as they consider appropriate.
Section 57. Section 17A-2-712 is amended to read:
17A-2-712. Additional powers of board.
(1) Irrigation districts may acquire, purchase, construct, improve, enlarge, and operate
water facilities, electric facilities, or any combination thereof.
(2) Irrigation districts may enter into contracts for the sale of all or a portion of the
electric power generated at a hydroelectric power plant, whether or not the electric power to be
sold is surplus to the needs of the district, and may enter into contracts for the sale of water, for
the periods of time and under the terms and conditions the board considers necessary in order to
accomplish the purposes of the district. Any sale of electric power or water may be for the period
and upon the terms and conditions as may be provided in contracts authorized by the board and
entered into by the district and any purchaser of the electric power or water having a system for
distributing the electric power or water. Any revenues received by the district pursuant to power
or water sale contracts may be used and pledged for the payment of the principal of and interest
and any premium on bonds or notes of the district issued to pay all or part of the cost of
acquiring, constructing, improving, or enlarging facilities, or for any other lawful purpose of the
district.
(3) The boards of trustees of any two or more irrigation districts may, by appropriate
resolutions, enter into agreements with one another, pursuant to Title 11, Chapter 13, Interlocal
Cooperation Act, by which the districts may jointly or cooperatively exercise any of the powers
conferred by this part.
(4) The board may issue bonds of the district, in the manner provided in this section:
(a) to pay for all or part of the costs of the acquisition, construction, improvement, or
enlargement of any facilities and to pay expenses preliminary and incidental thereto;
(b) to pay interest on the bonds during acquisition, construction, improvement, or
enlargement of any facilities; and
(c) to provide for necessary reserves and to pay costs of issuance and sale of the bonds,
including, without limitation, printing, registration, and transfer costs, legal, financial advisor's,
and rating agency fees, insurance premiums, and underwriter's discount.
(5) The board may provide that any bonds issued and sold under this section shall be
payable solely out of a special fund into which the district issuing the bonds shall be obligated to
deposit, as from time to time received, all or a designated portion of the revenues or other income
of the district. Any pledge of revenues creates a lien which:
(a) is perfected and enforceable upon the effective date of the security agreement
pursuant to which the bonds are issued;
(b) has priority as against all parties having claims of any kind in tort, contract, or
otherwise against the district; and
(c) has priority based on the time of the creation of the pledge unless otherwise provided
in the security agreement.
(6) Bonds of the district may be issued and sold in compliance with Title 11, Chapter 14,
[
Refunding Bond Act, as applicable, and may be in the form and denominations and have the
provisions and details as are permitted thereby. The bonds and any evidences of participation
interests in the bonds may be issued, executed, authenticated, registered, transferred, exchanged,
and otherwise made to comply with Title 15, Chapter 7, Registered Public Obligations Act, or
any other statute relating to the registration of bonds enacted to meet the requirements of Section
149(a) of the Internal Revenue Code of 1986, or any similar or successor federal law, and
applicable regulations. Bonds may be issued under the authority of this section at one time or
from time to time. If more than one issue or series of bonds is delivered under the authority of
this section, the bonds of the respective issue or series shall have the priorities of payment as
provided in the proceedings authorizing the bonds.
(7) Any resolution, indenture, agreement, or other document authorizing bonds may
contain covenants with the future holders of the bonds as to:
(a) the management and operation of the facilities of the irrigation district, including the
facilities acquired, constructed, improved, enlarged, or operated pursuant to this section;
(b) the imposition and collection of use charges;
(c) the disposition of the revenues;
(d) the issuance of future bonds and the creation of future liens and encumbrances
against these facilities and the revenues thereof;
(e) the carrying of insurance on these facilities and the disposition of the proceeds of
insurance;
(f) the sale, disposal, or alienation of these facilities; and
(g) other pertinent matters deemed necessary or proper by the board to assure the
merchantability of the bonds. These covenants and agreements may not be inconsistent with this
section.
(8) The district may undertake in the resolution, indenture, agreement, or other document
authorizing bonds to make the revenues of the facilities sufficient to pay the expense of their
operation and maintenance, and may undertake to make the revenues or net revenues of the
facilities sufficient to produce in each year an amount in excess of actual requirements for
principal of and interest on the bonds in that year as the board may consider necessary to assure
the highest marketability of the bonds.
(9) Any resolution, indenture, agreement, or other document authorizing bonds may
provide that the bonds will recite that they are issued under authority of this part. The recital will
conclusively import full compliance with all of the provisions of this part, and all bonds issued
containing the recital will be incontestable for any cause whatsoever after their delivery for value.
(10) When a district has issued bonds and pledged for the payment thereof any revenues
of the district, the district shall establish and collect use charges in that amount and at those rates
which will be fully sufficient at all times to pay the expenses of operating and maintaining these
facilities, to provide a special fund sufficient to assure the prompt payment of principal of and
interest on the bonds as principal and interest fall due, and to provide funds for reserves and
contingencies and for a depreciation fund for repairs, extensions, and improvements to these
facilities as considered necessary to assure adequate and efficient service, all as may be required
by the bond resolution. No board or commission other than the board of trustees of the district
has authority over or is required to approve the making or fixing of use charges or the acquisition
of property by the district or the issuance of its bonds.
(11) (a) If an irrigation district board determines that the interests of the district require
the issuance of bonds or the making of a contract with the United States, the board will, except as
provided in Subsection (13), adopt a resolution directing that an election be held to determine
whether bonds may be issued or a contract with the United States may be entered into for the
purposes specified in the resolution.
(b) The following are subject to the conditions provided in Title 11, Chapter 14, [
(i) adoption of the resolution calling the election;
(ii) giving notice of the election;
(iii) conduct of the election;
(iv) determination of voters' qualifications; and
(v) canvassing of election results.
(12) In designating the voting places for purposes of the election, the board may treat the
entire district as a single precinct or divide the district into precincts.
(13) No election is required under this section prior to the issuance of bonds or the
making of a contract with the United States except as otherwise required by the constitution or
Subsection (14).
(14) Notwithstanding anything to the contrary in this section or Title 11, Chapter 14,
[
other than bonds issued to refund outstanding bonds, or enter into a contract with the United
States unless:
(a) the issuance of the bonds or the making of the contract has been approved at an
election called and held as provided in this section; or
(b) the board of trustees:
(i) provides notice of a public hearing on whether to issue the bonds or enter into the
contract by:
(A) publishing notice in a newspaper published in or of general circulation in the district
at least seven days prior to the public hearing which sets forth:
(I) the maximum principal amount and the purpose of the proposed bond issue or
contract;
(II) the date, time, and place of the public hearing;
(III) when and where written comments regarding the bonds or the contract may be filed;
and
(IV) whether the district reasonably expects that paying amounts due on the bonds or
under the contract will result in a substantial increase in use charges; and
(B) if the district reasonably expects that paying amounts due on the bonds or under the
contract will increase use charges by more than $15 per connection per year, mailing notice to
every household containing a qualified voter who is eligible to vote on the bonds or the contract,
at least seven days but not more than 30 days before the public hearing, on a minimum three-inch
by five-inch postcard or a voter information pamphlet prepared by the governing body that
includes the information required by Subsection (14)(b)(i)(A);
(ii) holds a public hearing on the date and at the time and place specified in the notice of
public hearing, provided that the hearing may be adjourned from time to time to a fixed future
time and place;
(iii) considers at the public hearing all comments that have been filed or stated at the
hearing relating to the bonds or the contract;
(iv) after considering all comments received, adopts a resolution during or after the
meeting at which the public hearing is held, declaring the intention of the board of trustees to
issue bonds or enter into the contract; and
(v) directs that notice of the district's intention to issue bonds or enter into the contract be
published once in a newspaper of general circulation in the district stating:
(A) the maximum principal amount and purpose of the proposed bond issue or contract;
(B) when and where petitions may be filed requesting the calling of an election to
determine whether the bonds or the contract should be authorized; and
(C) when and where a form of petition requesting the calling of an election may be
obtained from the district.
(15) If, within 30 days after publication of the notice of intention, a petition is filed with
the secretary, signed by not less than 5% of the qualified electors of the district, requesting that
an election be called to authorize the contract or the bonds, then the board shall call and hold an
election as provided in this section before the bonds are issued or the contract is entered into.
(16) If no petition is filed, or if the number of signatures filed within the 30-day period is
less than the required number, the board of trustees may proceed to issue the bonds or enter into
the contract.
Section 58. Section 17A-2-821 is amended to read:
17A-2-821. Resolution or ordinance proposing obligations or indebtedness --
Election.
If the board of trustees of any metropolitan water district incorporated under this part
determines, by resolution or ordinance adopted by a vote of a majority of the aggregate number
of votes of all the members of the board of trustees, that the interests of the district and the public
interest or necessity demand the acquisition, construction, or completion of any source of water
supply, water, waterworks or other improvement, works or facility, or the making of any contract
with the United States or other persons or corporations, or the incurring of any preliminary
expense, necessary or convenient to carry out the objects or purposes of the district wherein an
indebtedness or obligation shall be created to satisfy which shall require a greater expenditure
than the ordinary annual income and revenue of the district shall permit, the board of trustees
may order the submission of the proposition of incurring the obligation or bonded or other
indebtedness, for the purposes set forth in the resolution or ordinance, to the qualified electors of
the district at an election held for that purpose. The resolution or ordinance calling the election
shall be adopted, the notice of the election shall be given, the election shall be held, the voters'
qualifications shall be determined, and the results of the elections canvassed in the manner and
subject to such conditions as are provided in Title 11, Chapter 14, [
Government Bonding Act. The declaration of public interest or necessity so required and the
provision for the holding of the election may be included within the same resolution or
ordinance, which resolution or ordinance, in addition to the declaration of public interest or
necessity, shall recite the objects and purposes for which the indebtedness is proposed to be
incurred, the estimated cost of the public works or improvements, or the estimated amount of
preliminary expenses, as the case may be, and the maximum amount of the principal of the
indebtedness to be incurred.
Section 59. Section 17A-2-824 is amended to read:
17A-2-824. Revenue indebtedness or general obligation indebtedness -- Procedure
for incurring -- Terms.
(1) (a) Any district which has determined to issue bonds shall issue its bonds under Title
11, Chapter 14, [
through construction, purchase, or otherwise and for the improvement or extension of any
properties necessary or desirable in the obtaining, treatment, and distribution of water and any
other properties which the district is authorized to own under this part. Bonds may be issued or
a contract indebtedness or obligation may be created:
(i) payable solely from the revenues of the district other than the proceeds of taxes, in
which case they shall be known for purposes of this section as "revenue indebtedness";
(ii) payable solely from the proceeds of taxes, in which case they shall be known for
purposes of this section as "general obligation indebtedness"; or
(iii) payable from both operating revenues and the proceeds of taxes, in which case they
shall be known for purposes of this section as "general obligation revenue indebtedness."
(b) The full faith and credit of the district shall be pledged to the payment of its general
obligation and general obligation revenue indebtedness, and taxes shall be levied fully sufficient
to pay that part of the principal of and interest on general obligation revenue indebtedness as the
revenues of the district pledged for this purpose may not be sufficient to meet.
(c) General obligation indebtedness and general obligation revenue indebtedness may be
issued only after approval at an election as provided in Section 17A-2-821 .
(d) Revenue indebtedness may be similarly submitted at an election as provided in
Section 17A-2-821 if considered desirable by the board of trustees, but nothing in this part shall
be construed to require such submission.
(e) Refunding bonds may be issued without approval at an election.
(2) Revenue indebtedness and general obligation revenue indebtedness may be payable
from and secured by the pledge of all or any specified part of the revenues to be derived by the
district from its water supply and the operation of its water facilities and other properties. It is
the duty of the board of trustees to impose for water and water services rendered thereby, rates
fully sufficient to carry out all undertakings contained in the resolution authorizing the bonds or
the contract. The board of trustees may in the resolution agree to pay the expenses of
maintaining and operating the properties of the district from the proceeds of the ad valorem taxes
authorized in Subsection 17A-2-818 (6) and may enter into those covenants with the future
holders of the bonds or the other contracting party as to the management and operation of the
properties, the imposition and collection of fees and charges for water and services furnished
thereby, the disposition of the fees and revenues, the issuance of future bonds or the creation of
future contract indebtedness or obligations and the creation of future liens and encumbrances
against the properties and the revenues from them, the carrying of insurance on the properties, the
keeping of books and records, the deposit, securing, and paying out of the proceeds of the bonds,
and other pertinent matters, as considered proper by the board of trustees to assure the
marketability of the bonds or the making of the contract. The board of trustees may undertake in
the resolution to make the revenues of the properties sufficient to pay all or any specified part of
the expense of the operation and maintenance of them. Covenants may be contained in the
resolution with respect to the manner of the imposition and collection of water charges, and
provision also may be made in it for the appointment of a receiver for the properties of the
district in the event of a default by the district in carrying out the covenants and agreements
contained in the resolution. Provision may also be made in the resolution for a receiver to
perform those services with respect to the holding and paying out of the revenues of the district
and the proceeds of the bonds, and otherwise, as may be considered advisable. Maintenance and
operation costs and expenses as referred to in this section shall be construed to include any
payments made by the district to the United States of America, to any water users' association, or
to any other public or private entity for the cost of operating facilities used in providing water for
the district.
Section 60. Section 17A-2-826 is amended to read:
17A-2-826. Sale of bonds.
Bonds issued under this part shall be sold in compliance with the provisions of Title 11,
Chapter 14, [
Section 61. Section 17A-2-1037 is amended to read:
17A-2-1037. Elections.
All district elections shall be held in accordance with the provisions of the elections code
of the state [
law cities in so far as the same are not in conflict with this part; provided all elections upon the
issuance of bonds of a district shall be called, held, and conducted pursuant to the provisions of
Title 11, Chapter 14, [
of the election code shall not be applicable to any such bond election.
Section 62. Section 17A-2-1058 is amended to read:
17A-2-1058. District may issue bonds.
Any district organized under this part may, in the manner and subject to the limitations
and restrictions contained in Title 11, Chapter 14, [
Bonding Act, authorize, issue and dispose of its negotiable bonds for purposes of paying all or
part of the cost of acquiring, improving, or extending any one or more improvements, facilities,
or property authorized to be acquired under this part.
Section 63. Section 17A-2-1312 is amended to read:
17A-2-1312. General obligation bonds authorized by petition of property owners --
Contest.
(1) With respect to any service district established under this part, if there is no
individual residing in the service district, such that compliance with the election requirements of
[
impossible, then, 75% of the owners of real property located in the district, as shown on the most
recent assessment roll of the county or municipality, as the case may be, may by written petition
require the governing body of the county or municipality which established the service district to
issue general obligation bonds pledging the full faith and credit of the district in an amount which
may lawfully be issued by the district but not to exceed the amount set forth in the petition.
Except for the election provisions of Title 11, Chapter 14, [
Government Bonding Act, the bonds required to be issued shall be issued in accordance with
Title 11, Chapter 14, [
to require issuance of bonds shall be equivalent to and have the same force and effect as an
election approving the issuance of the bonds by a majority of the qualified electors of the district.
(2) Upon receiving the petition described in Subsection (1), the governing body of the
county or municipality which established the district shall proceed to issue the bonds in
accordance with Title 11, Chapter 14, [
(3) The determination by the governing body that 75% of the owners of real property
located in the district have duly filed a written petition requiring the issuance of bonds as
provided in Subsection (1), shall be conclusive in any action or proceeding involving the validity
of the petition or the district's authority to issue the bonds instituted after the expiration of the
period provided in Subsection (4), for the filing of actions contesting the validity of the bonds
and after the date of delivery of and payment for any part of the bonds.
(4) When the validity of any bond issue under this section is contested, the plaintiff or
plaintiffs shall, within 40 days after the validity of the petition has been declared by the
governing body, file with the clerk of the district court of the county in which the district is
located, a verified written complaint setting forth specifically:
(a) the name of the party contesting the issuance of the bonds, and that he is an owner of
property within the district; and
(b) the grounds of such contest. No such contest may be maintained and the issuance of
the bonds may not be set aside or held invalid unless such a complaint is filed within the period
prescribed in this section.
Section 64. Section 17A-2-1315 is amended to read:
17A-2-1315. Powers of improvement districts within special districts.
(1) In addition to all other rights, powers, and authority granted by law or by other
provisions of this part, a service district established by a county under this part may organize an
improvement district under Chapter 3, Part 2. This improvement district has all the rights,
powers, and authority of an improvement district otherwise organized under Chapter 3, Part 3,
except:
(a) notwithstanding Subsection 17A-3-228 (4), any bonds issued under Chapter 3, Part 2,
need comply only with the requirements of Section [
of manual and facsimile signatures;
(b) the governing authority of the service district may act in the same capacity as the
governing body of a county with respect to all actions required to be taken in the creation or
administration of an improvement district under Chapter 3, Part 2; and
(c) notwithstanding Subsection 17A-3-204 (1), an improvement district created by a
service district may be organized to include any incorporated or unincorporated area of the
county and may cause improvements to be made within any incorporated or unincorporated area
of the county, and the consent of the governing body of the municipality in which an
incorporated area lies is not required prior to the establishment of an improvement district that
includes all or part of that incorporated area.
(2) In addition to all other rights, powers, and authority granted by law or by other
provisions of this part, a service district established by a municipality under this part may
organize an improvement district under Chapter 3, Part 3. This improvement district has all the
rights, powers, and authority of an improvement district otherwise organized under Chapter 3,
Part 3, except that:
(a) notwithstanding Section 17A-3-328 , any bonds issued under Chapter 3, Part 3, need
comply only with the requirements of Section [
manual and facsimile signatures;
(b) the governing authority of the service district may act in the same capacity as the
governing body of a municipality with respect to all actions required to be taken in the creation or
administration of an improvement district under Chapter 3, Part 3; and
(c) notwithstanding Subsection 17A-3-313 (1), assessments for improvements in an
improvement district organized under Chapter 3, Part 3, may include assessments for all interest
on any bonds issued.
Section 65. Section 17A-2-1316 is amended to read:
17A-2-1316. Borrowing power -- Issuance of bonds and notes -- Use of proceeds.
(1) A service district may borrow money and incur indebtedness, issuing its bonds or
notes therefor, including, without limitation:
(a) bonds payable in whole or in part from taxes levied on the taxable property in the
service district;
(b) bonds payable from revenues derived from the operation of revenue-producing
facilities of the service district;
(c) bonds payable from both such revenues and taxes;
(d) guaranteed bonds, payable in whole or in part from taxes levied on the taxable
property in the service district;
(e) tax anticipation notes;
(f) bond anticipation notes;
(g) refunding bonds; and
(h) bonds payable in whole or in part from mineral lease payments as provided in Section
[
(2) Tax anticipation notes are notes issued in anticipation of the collection of taxes and
other revenues of a service district which are due and payable in not more than one year from
their date of issue and, together with all other such notes then outstanding, do not exceed the
estimated amount of taxes and other revenues to be collected from the date of issue until
maturity.
(3) Bond anticipation notes are notes issued in anticipation of the receipt of the proceeds
of bonds of the service district.
(4) All these bonds and notes shall be issued and sold in the manner, at either public or
private sale, shall be in the form, and signed by the person or persons, who may, but need not, be
officers of the county or municipality which established the service district and generally shall be
issued in the manner and with the details as is provided for in proceedings of the governing
authority of the service district authorizing the issuance of the bonds or notes; but all these bonds
and notes and the interest on them shall be exempt from all taxation in this state, except for the
corporate franchise tax, and all these bonds and notes may contain those terms and provisions as
are permitted by and shall be issued in compliance with Title 11, Chapter 14, [
(5) The proceeds of bonds or notes issued under the authority of this part shall be used to
pay the costs of acquisition or construction of service district facilities or the providing of
services including, without limitation:
(a) all costs of planning, designing, acquiring, and constructing a facility, including
architectural, planning, engineering, legal, and fiscal advisor's costs;
(b) all costs incident to the authorization and issuance of the bonds or notes, including
accountants' fees, attorneys' fees, financial advisors' fees, underwriting fees, including
underwriting fees or bond discount, and other professional services and printing costs;
(c) interest estimated to accrue on bonds or notes for a reasonable time before, during,
and for a reasonable time after the completion of the acquisition or construction of the facilities
or services; and
(d) all amounts deemed necessary to establish one or more bond reserves and
maintenance, repair, replacement, contingency funds and accounts, and all amounts necessary to
provide working capital for the facility.
Section 66. Section 17A-2-1322 is amended to read:
17A-2-1322. Tax levy and bonds -- Approval by majority of electors voting in
election -- Procedure for election.
(1) The governing authority of a county or municipality which has established a service
district may levy a tax on all taxable property within the service district in addition to all other
taxes on such property levied or imposed by the county or municipality or by any other public
corporation, district, or political subdivision in which the service district is located, and may also
issue bonds payable in whole or in part from these taxes. No tax may be levied and no bonds or
guaranteed bonds shall be issued, however, unless authorized, except as otherwise provided in
Section 17A-2-1325 , by a majority of the qualified electors of the service district voting at an
election for that purpose held as provided in this section.
(2) The proposition to levy the tax or to issue the bonds shall be submitted to the
qualified electors of the service district at an election called and held and for which notice is
given in the same manner as is provided in Title 11, Chapter 14, [
Government Bonding Act, for the holding of bond elections. The proposition shall state the
purpose or purposes for which the taxes are to be levied or the bonds are to be issued. In
addition, a proposition for the issuance of bonds shall state the maximum amount of bonds to be
issued, the maximum number of years from their respective dates for which the bonds may run,
and, if the bonds are to be payable in whole or in part from taxes, that fact and that taxes may be
levied on all taxable property in the service district to pay the principal of and interest on the
bonds. The purpose or purposes may be stated in general terms and need not specify the
particular projects or services for which the taxes are to be levied or the bonds are to be issued
nor the specific amount of the proceeds of the taxes or of the bonds to be expended for each
project or service. If bonds are to be payable in part from tax proceeds and in part from the
operating revenues of the service district or from any combination of them, the proposition shall
so indicate but need not specify how the bonds are to be divided as to source of payment. If the
bonds are to be issued as guaranteed bonds, the proposition shall also clearly state that fact
together with the name or names of the guarantors. A proposition for the levy of taxes and for
the issuance of bonds may be combined as a single proposition.
(3) (a) A tax levied under this section shall be the sole source of funding for a special
service district that provides jail service as provided in Subsection 17A-2-1304 (1)(a)(x).
(b) Each tax levied under this section for a special service district that provides jail
service as provided in Subsection 17A-2-1304 (1)(a)(x) shall be considered to be levied by the
county for purposes of the county's tax limitation under Section 59-2-908 .
Section 67. Section 17A-2-1414 is amended to read:
17A-2-1414. Who may enter into contracts -- Permissible purposes of contracts --
Agreements and leases -- Elections for water purchase contracts.
(1) Any water conservancy district and any incorporated municipality located within or
without the boundaries of the district or other district created under any law of this state are
expressly authorized and empowered to enter into contracts with each other and with any other
person or corporation, public or private, for any of the following purposes:
(a) the joint operation of water facilities owned by any district or municipality;
(b) the exchange of water, water rights, or facilities;
(c) the leasing of water or water facilities; or
(d) the sale of water.
(2) (a) Any agreement about the operation or use of water facilities owned by a
municipality or district by another municipality or district, the joint operation of facilities, or the
lease of water or water facilities, may provide for the joint use of water facilities owned by one of
the contracting parties under appropriate arrangements for reasonable compensation.
(b) Any agreement may provide for the renting or loan of water by one contracting party
to the other or for the sale of water by one party and its purchase by another. No limitation
contained in any existing law requiring the water of any district to be supplied to its own
residents on a priority basis shall be applicable to any contract made under this section.
(c) Any contract for the sale of water may run for a term of years as may be specified.
The contract may require the purchasing party to pay for a minimum amount of water annually,
provided the water is available, without regard to actual taking or use. The contract may provide
for the payment for water sold or contracted to be sold from any of the following sources of
revenue:
(i) the general funds or other funds of the purchasing municipality or district;
(ii) the proceeds of class B assessments imposed under the Water Conservancy Act;
(iii) the proceeds of water distributed and sold through the distribution system of the
purchasing district or municipality; or
(iv) any combination of these sources of payment.
(d) The governing body of any municipality agreeing to purchase water under a contract,
for the purpose of complying with any pertinent constitutional requirement or for any other
reason, may call an election for that purpose. The election shall be conducted in the manner
provided in Title 11, Chapter 14, [
Section 68. Section 17A-2-1439 is amended to read:
17A-2-1439. Contracts providing for payment in installments -- Issuance and sale
of bonds -- Sinking fund -- Covenants -- Default -- Revenue obligations -- Refunding bonds.
(1) (a) (i) To pay for construction, operation, and maintenance of works, and expenses
preliminary and incidental to them, the board may enter into contracts with the United States of
America or its agencies, providing for payment in installments.
(ii) To pay for all or part of the cost of the construction or acquisition of any works, to
pay for the improvement and extension of them, to pay expenses preliminary and incidental to
them, to pay interest on the bonds during acquisition and construction, to provide for necessary
reserves, and to pay costs of issuance and sale of the bonds (including, without limitation,
printing, registration and transfer costs, legal fees, financial advisor's fees, and underwriter's
discount), the board may issue the bonds of the district as provided in this section.
(b) The indebtedness or obligation represented by any bonds issued by or any contract
entered into by the board may be payable in whole or in part from all or part of the revenues
derived by the district from the operation of all or any designated portion of its works, from the
proceeds of assessments and taxes levied under this part, or from any combination of those
revenues, assessments, and taxes.
(c) The indebtedness or obligation represented by any bonds issued by or any contract
entered into by the board may be incurred for the acquisition, construction, or both, of all or part
of any works, for the improvement or extension of any works, or for a system of works for the
distribution of water or for the treatment of water or both, whether or not the works of the district
so acquired, constructed, improved, or extended include a source of water supply.
(d) (i) These bonds shall be issued and sold in compliance with Title 11, Chapter 14,
[
denominations and have provisions and details permitted by Title 11, Chapter 14, [
otherwise and contract payment installments shall fall due at any time or times not later than 50
years from their date.
(ii) The bonds and any evidences of participation interests in the bonds may be issued,
executed, authenticated, registered, transferred, exchanged, and otherwise made to comply with
Title 15, Chapter 7, Registered Public Obligations Act, or any other statute relating to the
registration of bonds enacted to meet the requirements of Section 103 of the Internal Revenue
Code of 1954, as amended, or any similar or successor federal law, and applicable regulations.
(2) (a) Bonds may be issued hereunder at one time or from time to time.
(b) If more than one issue or series of bonds is delivered hereunder, the bonds of the
respective issues or series shall have priorities of payment as provided in the proceedings
authorizing the bonds.
(3) (a) Any resolution authorizing the issuance of bonds or the entering into of a contract
indebtedness or obligation payable in installments hereunder shall provide for the creation of a
sinking fund into which shall be paid from the revenues, assessments, and taxes, any or all,
pledged to the payment in the authorizing resolution sums fully sufficient to pay the principal of
and interest on the bonds or on the contract indebtedness or obligation and to create a reserve for
contingencies as required by the resolution.
(b) Any resolution so authorizing bonds or the entering into of a contract indebtedness or
obligation may contain those covenants with the future holders of the bonds or the other
contracting party as to the management and operation of the properties and works of the district,
the imposition and collection of fees and charges, including taxes and assessments, for the water
and services furnished thereby, the disposition of the fees and revenues, the issuance of future
bonds and the incurring of future contract indebtedness or obligations and the creation of future
liens and encumbrances against the works and the revenues thereof, the carrying of insurance on
the works and the disposition of the proceeds of insurance, the sale, disposal, or alienation of the
works, and other pertinent matters considered necessary or proper by the board to assure the
merchantability of the bonds or the execution of the contract.
(c) These covenants and agreements may not be inconsistent with this section.
(4) (a) It may be provided in the resolution that any holder of the bonds or any
contracting party may by appropriate legal action compel performance of all duties required of
the board and the officials of the district by this part and the resolution authorizing the bonds or
contract.
(b) If any bond issued or any contract entered into hereunder is permitted to go into
default as to any installment of principal or interest, any court of competent jurisdiction may,
pursuant to the application of the holder of any bond or of the other contracting party, appoint a
receiver to operate the works of the district and to collect and distribute the revenues thereof
under the resolution, this part, and as the court may direct.
(5) (a) When the district has issued bonds or entered into a contract and pledged any
revenues of the works for the payment of them as provided in this part, the district shall impose
and collect fees and charges for water and services furnished by the works in that amount and at
those rates fully sufficient at all times (in conjunction with the proceeds of available taxes and
assessments if the bonds or contract indebtedness or obligation are also payable in part from the
proceeds of assessments and taxes levied under this part) to pay the expenses of operating and
maintaining the works, to provide a sinking fund sufficient to assure the prompt payment of
principal of and interest on the bonds or contract indebtedness or obligation as principal and
interest fall due, and to provide those funds for reserves and contingencies and for a depreciation
fund for repairs, extensions, and improvements to the works as considered necessary to assure
adequate and efficient service, all as may be required by the resolution.
(b) No board or commission other than the board of trustees of the district has authority
over or is required to approve the making or fixing of fees and charges, the acquisition of
property by the district, the issuance of its bonds, or the entering into of a contract.
(6) (a) The board of any district that issues or has issued any bonds under this part, or
that enters or has entered into any contracts under this part, may issue bonds hereunder for the
purpose of refunding all or any part of the outstanding bonds, or the outstanding indebtedness or
obligation represented by the contracts, or in part for the purpose of the refunding and in part for
the purpose of acquiring, constructing, improving, or extending works for the district.
(b) If bonds are issued solely for refunding purposes, the election required by Section
17A-2-1440 is not a condition precedent to the issuance of the bonds.
(c) Refunding bonds so authorized:
(i) may be sold and the proceeds thereof applied to or deposited in an escrow and
invested pending the retirement of the outstanding bonds; or
(ii) may be delivered in exchange for the outstanding bonds.
(d) The refunding bonds shall be authorized and secured in the manner herein provided
for the issuance and securing of other bonds and may, but are not required to, have the same
source of security and payment as the bonds refunded.
(7) (a) If bonds have been issued or a contract indebtedness or obligation has been
incurred hereunder payable in whole or in part from revenues to be derived from supplying water
to the inhabitants of territory which was not at the time of the issuance of the bonds or the
entering into of the contract contained within the corporate limits of any municipality or any
other district created for the purpose of supplying water to the territory, the district shall
thereafter be the sole public corporation or political subdivision authorized to supply water to this
area.
(b) No municipal corporation or other district into which any part of the territory is
incorporated or included has authority either to supply water to the inhabitants of the corporation
or district or to grant a franchise for the supplying of the water.
(c) Nothing contained in this Subsection (7) prevents the modification of this restriction
contained by the district if modification does not in any way jeopardize the prompt payment of
principal of and interest on the bonds of the district then outstanding or of the payment of
installments of indebtedness or obligation under a contract.
Section 69. Section 17A-2-1440 is amended to read:
17A-2-1440. Election for issuance of bonds or incurring contract indebtedness or
obligation -- When an election is not required.
(1) If the majority of a water conservancy district board approves a resolution
determining that the interests of the district and the public interest or necessity demand the
acquisition, construction, or completion of any water supply, waterworks, improvements, or
facilities, or the making of any contract with the United States or other persons or corporations,
public or private, to carry out the purposes of the district, wherein an indebtedness or obligation
is created, to satisfy which requires an expenditure greater than the ordinary annual income and
revenue of the district, the board shall adopt a resolution directing that an election be held to
determine whether bonds shall be issued, or an indebtedness or obligation under a contract shall
be incurred in the amount and for the purposes specified in the resolution.
(2) The following shall be subject to the conditions provided in Title 11, Chapter 14,
[
(a) adoption of the resolution calling the election;
(b) giving notice of the election;
(c) conduct of the election;
(d) determination of voters' qualifications; and
(e) canvassing of election results.
(3) The board may, for purposes of the election:
(a) treat the entire district as a single precinct or divide the district into precincts; and
(b) fix polling places.
(4) If bonds or the indebtedness or obligations under a contract are payable solely from
revenues derived from the operation of all or any part of the district's works, no election is
required under this section prior to issuance of the bonds or the entering into of the contract,
except as provided in Subsection (5).
(5) No district may issue bonds or incur an indebtedness or obligation under a contract
payable solely from revenues unless:
(a) the issuance of the bonds or the incurring of the contract indebtedness or obligation
has been approved at an election called and held as provided in this section; or
(b) the board of trustees adopts a resolution declaring the intention of the district to issue
bonds or incur a contract indebtedness or liability payable solely from revenues in the amount
and for the purpose provided in the resolution and directs that notice of this intention be
published once in a newspaper of general circulation in the district.
(i) The notice of intention shall set forth:
(A) the amount and purpose of the proposed bond issue or contract; and
(B) when and where petitions may be filed requesting the calling of an election to
determine whether the bonds may be issued or the contract indebtedness or obligation may be
incurred.
(ii) The resolution of the board shall specify the form of the petitions.
(iii) If, within 30 days after the publication of the notice of intention, a petition is filed
with the secretary of the board, signed by not less than 5% of the qualified electors of the district,
requesting that an election be called to authorize the issuance of the bonds or the incurring of the
contract indebtedness or liability payable solely from revenues, then the board shall proceed to
call and hold an election as provided in this section. The qualified electors of the district shall be
certified to the board, prior to the adoption of the resolution, by the clerks of the counties in
which portions of the district are located.
(iv) If no petition is filed, or if the number of signatures filed within the 30-day period is
less than the required number, the board of trustees may adopt the resolution and proceed to issue
the bonds or enter into the contract.
Section 70. Section 17A-2-1823 is amended to read:
17A-2-1823. Bond issuance.
(1) Any regional service area may:
(a) in accordance with Title 11, Chapter 14, [
Bonding Act, authorize, issue, and dispose of its negotiable bonds for the purpose of paying all or
part of the cost of acquiring, improving, or extending any improvement, facility, or property
authorized to be acquired under this part;
(b) in accordance with Title 11, Chapter 27, Utah Refunding Bond Act, authorize, issue,
and dispose of its bonds; and
(c) enjoy the benefits of Title 11, Chapter 30, Utah Bond Validation Act.
(2) A regional service area may issue bonds and anticipated notes based upon revenue
from property taxes, user charges, and other revenues and federal, state or local grants, borrow
money, and incur debts as authorized by law or this part. A regional service area may satisfy any
indebtedness as provided in this part or in any other applicable law and may, for purposes of
satisfaction of this indebtedness, incur new obligations of the type satisfied.
(3) All elections for the issuance of bonds of a regional service area shall be called, held,
and conducted under the provisions of Title 11, Chapter 14, [
Government Bonding Act. The provisions of the election code shall not be applicable to the
bond election.
(4) If the board of trustees provides in any resolution authorizing revenue bonds for the
creation of a reserve fund to assure the prompt payment of principal and interest, the board may
provide for the accumulation of this fund not only from the revenues of the facilities, but also
from a part of the bond proceeds it may consider advisable.
Section 71. Section 17A-2-1825 is amended to read:
17A-2-1825. Recital in bonds -- Effect.
The resolution authorizing the issuance of any bonds of a regional service area may
provide that the bonds recite that they are issued under the authority of this part. Any bonds
issued containing this recital shall be incontestable for any cause whatsoever after their delivery
for value and the recital shall conclusively establish full compliance with all of the provisions of
this part and Title 11, Chapter 14, [
Section 72. Section 17B-2-608 is amended to read:
17B-2-608. Resolution approving or rejecting withdrawal -- Criteria for approval
or rejection -- Terms and conditions.
(1) (a) On or before the date of the board meeting next following the public hearing
under Section 17B-2-606 , but in no case later than 90 days after the public hearing or, if no
hearing is held, within 90 days after the filing of a petition under Section 17B-2-603 , the board of
trustees of the local district in which the area proposed to be withdrawn is located shall adopt a
resolution:
(i) approving the withdrawal of some or all of the area from the local district; or
(ii) rejecting the withdrawal.
(b) Each resolution approving a withdrawal shall:
(i) include a legal description of the area proposed to be withdrawn;
(ii) state the effective date of the withdrawal; and
(iii) set forth the terms and conditions under Subsection (5), if any, of the withdrawal.
(c) Each resolution rejecting a withdrawal shall include a detailed explanation of the
board of trustees' reasons for the rejection.
(2) Unless denial of the petition is required under Subsection (3), the board of trustees
shall adopt a resolution approving the withdrawal of some or all of the area from the local district
if the board of trustees determines that:
(a) the area to be withdrawn does not and will not require the service that the local
district provides;
(b) the local district will not be able to provide service to the area to be withdrawn for the
reasonably foreseeable future; or
(c) the area to be withdrawn has obtained the same service that is provided by the local
district or a commitment to provide the same service that is provided by the local district from
another source.
(3) The board of trustees shall adopt a resolution denying the withdrawal if it determines
that the proposed withdrawal would:
(a) result in a breach or default by the local district under:
(i) any of its notes, bonds, or other debt or revenue obligations;
(ii) any of its agreements with entities which have insured, guaranteed, or otherwise
credit-enhanced any debt or revenue obligations of the local district; or
(iii) any of its agreements with the United States or any agency of the United States;
provided, however, that, if the local district has entered into an agreement with the United States
that requires the consent of the United States for a withdrawal of territory from the district, a
withdrawal under this part may occur if the written consent of the United States is obtained and
filed with the board of trustees;
(b) adversely affect the ability of the local district to make any payments or perform any
other material obligations under:
(i) any of its agreements with the United States or any agency of the United States;
(ii) any of its notes, bonds, or other debt or revenue obligations; or
(iii) any of its agreements with entities which have insured, guaranteed, or otherwise
credit-enhanced any debt or revenue obligations of the local district;
(c) result in the reduction or withdrawal of any rating on an outstanding note, bond, or
other debt or revenue obligation of the local district;
(d) create an island or peninsula of nondistrict territory within the local district or of
district territory within nondistrict territory that has a material adverse affect on the local district's
ability to provide service or materially increases the cost of providing service to the remainder of
the local district;
(e) materially impair the operations of the remaining local district; or
(f) require the local district to materially increase the fees it charges or property taxes or
other taxes it levies in order to provide to the remainder of the district the same level and quality
of service that was provided before the withdrawal.
(4) In determining whether the withdrawal would have any of the results described in
Subsection (3), the board of trustees may consider the cumulative impact that multiple
withdrawals over a specified period of time would have on the local district.
(5) (a) Despite the presence of one or more of the conditions listed in Subsection (3), the
board of trustees may approve a resolution withdrawing an area from the local district imposing
terms or conditions that mitigate or eliminate the conditions listed in Subsection (3), including:
(i) a requirement that the owners of property located within the area proposed to be
withdrawn or residents within that area pay their proportionate share of any outstanding district
bond or other obligation as determined pursuant to Subsection (5)(b);
(ii) a requirement that the owners of property located within the area proposed to be
withdrawn or residents within that area make one or more payments in lieu of taxes, fees, or
assessments;
(iii) a requirement that the board of trustees and the receiving entity agree to reasonable
payment and other terms in accordance with Subsections (5)(f) through (g) regarding the transfer
to the receiving entity of district assets that the district used before withdrawal to provide service
to the withdrawn area but no longer needs because of the withdrawal; provided that, if those
district assets are allocated in accordance with Subsections (5)(f) through (g), the district shall
immediately transfer to the receiving entity on the effective date of the withdrawal, all title to and
possession of district assets allocated to the receiving entity; or
(iv) any other reasonable requirement considered to be necessary by the board of trustees.
(b) Other than as provided for in Subsection 17B-2-609 (2), and except as provided in
Subsection (5)(e), in determining the proportionate share of outstanding bonded indebtedness or
other obligations under Subsection (5)(a)(i) and for purposes of determining the allocation and
transfer of district assets under Subsection (5)(a)(iii), the board of trustees and the receiving
entity, or in cases where there is no receiving entity, the board and the sponsors of the petition
shall:
(i) engage engineering and accounting consultants chosen by the procedure provided in
Subsection (5)(d); provided however, that if the withdrawn area is not receiving service, an
engineering consultant need not be engaged; and
(ii) require the engineering and accounting consultants engaged under Subsection
(5)(b)(i) to communicate in writing to the board of trustees and the receiving entity, or in cases
where there is no receiving entity, the board and the sponsors of the petition the information
required by Subsections (5)(f) through (h).
(c) For purposes of this Subsection (5):
(i) "accounting consultant" means a certified public accountant or a firm of certified
public accountants with the expertise necessary to make the determinations required under
Subsection (5)(h); and
(ii) "engineering consultant" means a person or firm that has the expertise in the
engineering aspects of the type of system by which the withdrawn area is receiving service that is
necessary to make the determination required under Subsections (5)(f) and (g).
(d) (i) Unless the board of trustees and the receiving entity, or in cases where there is no
receiving entity, the board and the sponsors of the petition agree on an engineering consultant
and an accounting consultant, each consultant shall be chosen from a list of consultants provided
by the Consulting Engineers Council of Utah and the Utah Association of Certified Public
Accountants, respectively, as provided in this Subsection (5)(d).
(ii) A list under Subsection (5)(d)(i) may not include a consultant who has had a contract
for services with the district or the receiving entity during the two-year period immediately
before the list is provided to the local district.
(iii) Within 20 days of receiving the lists described in Subsection (5)(d)(i), the board of
trustees shall eliminate the name of one engineering consultant from the list of engineering
consultants and the name of one accounting consultant from the list of accounting consultants
and shall notify the receiving entity, or in cases where there is no receiving entity, the sponsors of
the petition in writing of the eliminations.
(iv) Within three days of receiving notification under Subsection (5)(d), the receiving
entity, or in cases where there is no receiving entity, the sponsors of the petition shall eliminate
another name of an engineering consultant from the list of engineering consultants and another
name of an accounting consultant from the list of accounting consultants and shall notify the
board of trustees in writing of the eliminations.
(v) The board of trustees and the receiving entity, or in cases where there is no receiving
entity, the board and the sponsors of the petition shall continue to alternate between them, each
eliminating the name of one engineering consultant from the list of engineering consultants and
the name of one accounting consultant from the list of accounting consultants and providing
written notification of the eliminations within three days of receiving notification of the previous
notification, until the name of only one engineering consultant remains on the list of engineering
consultants and the name of only one accounting consultant remains on the list of accounting
consultants.
(e) The requirement under Subsection (5)(b) to engage engineering and accounting
consultants does not apply if the board of trustees and the receiving entity, or in cases where
there is no receiving entity, the board and the sponsors of the petition agree on the allocations
that are the engineering consultant's responsibility under Subsection (5)(f) or the determinations
that are the accounting consultant's responsibility under Subsection (5)(h); provided however,
that if engineering and accounting consultants are engaged, the district and the receiving entity,
or in cases where there is no receiving entity, the district and the sponsors of the petition shall
equally share the cost of the engineering and accounting consultants.
(f) (i) The engineering consultant shall allocate the district assets between the district and
the receiving entity as provided in this Subsection (5)(f).
(ii) The engineering consultant shall allocate:
(A) to the district those assets reasonably needed by the district to provide to the area of
the district remaining after withdrawal the kind, level, and quality of service that was provided
before withdrawal; and
(B) to the receiving entity those assets reasonably needed by the receiving entity to
provide to the withdrawn area the kind and quality of service that was provided before
withdrawal.
(iii) If the engineering consultant determines that both the local district and the receiving
entity reasonably need a district asset to provide to their respective areas the kind and quality of
service provided before withdrawal, the engineering consultant shall:
(A) allocate the asset between the local district and the receiving entity according to their
relative needs, if the asset is reasonably susceptible of division; or
(B) allocate the asset to the local district, if the asset is not reasonably susceptible of
division.
(g) All district assets remaining after application of Subsection (5)(f) shall be allocated to
the local district.
(h) (i) The accounting consultant shall determine the withdrawn area's proportionate
share of any redemption premium and the principal of and interest on:
(A) the local district's revenue bonds that were outstanding at the time the petition was
filed;
(B) the local district's general obligation bonds that were outstanding at the time the
petition was filed; and
(C) the local district's general obligation bonds that:
(I) were outstanding at the time the petition was filed; and
(II) are treated as revenue bonds under Subsection (5)(i); and
(D) the district's bonds that were issued prior to the date the petition was filed to refund
the district's revenue bonds, general obligation bonds, or general obligation bonds treated as
revenue bonds.
(ii) For purposes of Subsection (5)(h)(i), the withdrawn area's proportionate share of
redemption premium, principal, and interest shall be the amount that bears the same relationship
to the total redemption premium, principal, and interest for the entire district that the average
annual gross revenues from the withdrawn area during the three most recent complete fiscal years
before the filing of the petition bears to the average annual gross revenues from the entire district
for the same period.
(i) For purposes of Subsection (5)(h)(i), a district general obligation bond shall be treated
as a revenue bond if:
(i) the bond is outstanding on the date the petition was filed; and
(ii) the principal of and interest on the bond, as of the date the petition was filed, had
been paid entirely from local district revenues and not from a levy of ad valorem tax.
(j) (i) Before the board of trustees of the local district files a resolution approving a
withdrawal, the receiving entity, or in cases where there is no receiving entity, the sponsors of the
petition shall irrevocably deposit government obligations, as defined in Subsection 11-27-2 (6),
into an escrow trust fund the principal of and interest on which are sufficient to provide for the
timely payment of the amount determined by the accounting consultant under Subsection (5)(h)
or in an amount mutually agreeable to the board of trustees of the local district and the receiving
entity, or in cases where there is no receiving entity, the board and the sponsors of the petition.
Notwithstanding Subsection 17B-2-610 (1), the board of trustees shall not be required to file a
resolution approving a withdrawal until the requirements for establishing and funding an escrow
trust fund in this Subsection (5)(j)(i) have been met; provided that, if the escrow trust fund has
not been established and funded within 180 days after the board of trustees passes a resolution
approving a withdrawal, the resolution approving the withdrawal shall be void.
(ii) Concurrently with the creation of the escrow, the receiving entity, or in cases where
there is no receiving entity, the sponsors of the petition shall provide to the board of trustees of
the local district:
(A) a written opinion of an attorney experienced in the tax-exempt status of municipal
bonds stating that the establishment and use of the escrow to pay the proportionate share of the
district's outstanding revenue bonds and general obligation bonds that are treated as revenue
bonds will not adversely affect the tax-exempt status of the bonds; and
(B) a written opinion of an independent certified public accountant verifying that the
principal of and interest on the deposited government obligations are sufficient to provide for the
payment of the withdrawn area's proportionate share of the bonds as provided in Subsection
(5)(h).
(iii) The receiving entity, or in cases where there is no receiving entity, the sponsors of
the petition shall bear all expenses of the escrow and the redemption of the bonds.
(iv) The receiving entity may issue bonds under Title 11, Chapter 14, [
fund the escrow.
(6) A requirement imposed by the board of trustees as a condition to withdrawal under
Subsection (5) shall, in addition to being expressed in the resolution, be reduced to a duly
authorized and executed written agreement between the parties to the withdrawal.
(7) An area that is the subject of a withdrawal petition under Section 17B-2-603 that
results in a board of trustees resolution denying the proposed withdrawal may not be the subject
of another withdrawal petition under Section 17B-2-603 for two years after the date of the board
of trustees resolution denying the withdrawal.
Section 73. Section 17B-4-1204 is amended to read:
17B-4-1204. Contesting the legality of resolution authorizing bonds -- Time limit --
Presumption.
(1) Any person may contest the legality of the resolution authorizing issuance of the
bonds or any provisions for the security and payment of the bonds for a period of 30 days after:
(a) publication of the resolution authorizing the bonds; or
(b) publication of a notice of bonds containing substantially the items required under
Subsection [
(2) After the 30-day period under Subsection (1), no lawsuit or other proceeding may be
brought contesting the regularity, formality, or legality of the bonds for any reason.
(3) In a lawsuit or other proceeding involving the question of whether a bond issued
under this part is valid or enforceable or involving the security for a bond, if a bond recites that
the agency issued the bond in connection with a redevelopment, economic development, or
education housing development:
(a) the bond shall be conclusively presumed to have been issued for that purpose; and
(b) the project area plan and project area shall be conclusively presumed to have been
properly formed, adopted, planned, located, and carried out in accordance with this chapter.
Section 74. Section 19-6-503 is amended to read:
19-6-503. Powers and duties of public entities.
Subject to the powers and rules of the department, the governing body of each public
entity may:
(1) supervise and regulate the collection, transportation, and disposition of all solid waste
generated within its jurisdiction;
(2) provide solid waste management facilities to handle adequately solid waste generated
or existing within or without its jurisdiction;
(3) assume, by agreement, responsibility for the collection and disposition of solid waste
whether generated within or without its jurisdictional boundaries;
(4) enter into short or long-term interlocal agreements with other public entities, with
public agencies as defined in Title 11, Chapter 13, Interlocal Cooperation Act, with private
persons or entities, or any combination of them, to provide for or operate solid waste
management facilities;
(5) levy and collect taxes, fees, and charges and require licenses as may be appropriate to
discharge its responsibility for the acquisition, construction, operation, maintenance, and
improvement of solid waste management facilities or any portion of them, including licensing
private collectors operating within its jurisdiction;
(6) require that all solid waste generated within its jurisdiction be delivered to a solid
waste management facility;
(7) control the right to collect, transport, and dispose of all solid waste generated within
its jurisdiction;
(8) agree that the sole and exclusive right to collect, transport, and dispose of solid waste
within its jurisdiction shall be assumed by any other public entity or entities, any private persons
or entities, or any combination of them, pursuant to Section 19-6-505 ;
(9) accept and disburse funds derived from federal or state grants or from private sources
or from moneys that may be appropriated by the Legislature for the acquisition, construction,
ownership, operation, maintenance, and improvement of solid waste management facilities;
(10) contract for the lease or purchase of land, facilities, and vehicles for the operation of
solid waste management facilities;
(11) establish policies for the operation of solid waste management facilities, including
hours of operation, character, and kind of wastes accepted at disposal sites, and other rules
necessary for the safety of the operating personnel;
(12) sell or contract for the sale, pursuant to short or long-term agreements, of any usable
materials, energy, fuel, or heat separated, extracted, recycled, or recovered from solid waste in a
solid waste management facility, on terms in its best interests, and to pledge, assign, or otherwise
convey as security for the payment of its bonds any revenues and receipts derived from the sale
or contract or from the operation and ownership of a solid waste management facility or an
interest in it;
(13) issue bonds pursuant to Title 11, Chapter 14, [
Government Bonding Act; and
(14) issue industrial development revenue bonds pursuant to Title 11, Chapter 17, Utah
Industrial Facilities and Development Act, to pay the costs of financing projects consisting of
solid waste management facilities, as defined in Section 19-6-502 , on behalf of entities that
constitute the users of a solid waste management facility project within the meaning of Section
11-17-2 , and agree to construct and operate or to provide for the construction and operation of a
solid waste management facility project, which project shall manage the solid waste of one or
more public or private entities, all pursuant to contracts and other arrangements provided for in
the proceedings pursuant to which the bonds are issued. In addition to the authority to issue
bonds contained in Title 11, Chapter 17, Utah Industrial Facilities and Development Act, bonds
may be issued pursuant to the authority contained in this subsection to pay the cost of
establishing reserves to pay principal and interest on the bonds as provided for in the proceedings
pursuant to which the bonds are issued.
Section 75. Section 19-6-505 is amended to read:
19-6-505. Long-term agreements for joint action -- Construction, acquisition, or
sale of interest in management facilities -- Issuance of bonds.
(1) (a) Two or more public entities, which for the purposes of this section shall only
include any political subdivision of the state, the state and its agencies, and the United States and
its agencies, may enter into long-term agreements with one another pursuant to Title 11, Chapter
13, Interlocal Cooperation Act, and any one or more public entities may enter into long-term
agreements with any private entity or entities for joint or cooperative action related to the
acquisition, construction, ownership, operation, maintenance, and improvement of solid waste
management facilities, regardless of whether the facilities are owned or leased by a public entity
or entities, private entity or entities, or combination of them and pursuant to which solid waste of
one or more public entities, any private entity or entities, or combination of them, are made
available for solid waste management pursuant to the terms, conditions, and consideration
provided in the agreement.
(b) Any payments made by a public entity for services received under the agreement are
not an indebtedness of the public entity within the meaning of any constitutional or statutory
restriction, and no election is necessary for the authorization of the agreement.