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H.B. 14 Enrolled

                 

BOND ELECTION PROCESS AMENDMENTS

                 
2005 GENERAL SESSION

                 
STATE OF UTAH

                 
Sponsor: Fred R. Hunsaker

                 
                  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
                  [ 11-14-21 ] 11-14-316 in a newspaper having general circulation in the area of operation, any
                  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,


                  [Utah Municipal Bond] Local Government Bonding Act. This section does not require an
                  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 [ 11-14-3 ] 11-14-202 for an election
                  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, [Utah Municipal Bond] Local Government
                  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 [ 11-14-2 (2)] 11-14-201 (3) and except as provided in
                  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, [Utah Municipal Bond] Local Government Bonding Act, that govern bond
                  elections; and
                      (II) notwithstanding Subsection [ 11-14-4 ] 11-14-203 (2), at a regular general election;


                      (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, [Utah Municipal Bond] Local
                  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, [Utah Municipal Bond]
                  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, [Utah
                  Municipal Bond] Local Government Bonding Act, or other applicable law of this state pertaining
                  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, [Utah Municipal Bond] Local Government Bonding Act;
                      (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 [ 11-14-21 (3)] 11-14-316 (2).
                      (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:
                 
CHAPTER 14. LOCAL GOVERNMENT BONDING ACT

                 
Part 1. General Provisions

                      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:
                 
Part 2. Bond Elections

                       [11-14-2].     11-14-201. Election on bond issues -- Qualified electors -- Resolution
                  and notice.
                      (1) [(a)] The [governing] legislative body of any [municipality desiring] local political
                  subdivision that wishes to issue bonds under the authority granted in Section [ 11-14-1 ]


                  11-14-103 shall [by resolution provide for the holding of an election in the municipality on], at
                  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.
                      [(b) The bonds may be issued only if at the election the issuance of the bonds is approved
                  by a majority of the qualified electors of the municipality who vote on the proposition.]
                      [(2) This section does not require an election for the issuance of refunding bonds or other
                  bonds not required by the constitution to be voted at an election.]
                      [(3) (a) At least 30 days before the election, the governing body shall:]
                      [(i) approve the resolution; and]
                      [(ii) provide a copy of the resolution to the county clerk.]
                      (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.
                      [(b)] (4) The resolution calling the election [and the election notice] shall [state:] include
                  a ballot proposition, in substantially final form, that complies with the requirements of
                  Subsection 11-14-206 (2).
                      [(i) the purpose for which the bonds are to be issued;]
                      [(ii) the maximum amount of bonds to be issued; and]
                      [(iii) the maximum number of years from the issue date of the bonds to maturity.]
                      [(c) The purpose 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.]
                      [(4) If the municipality is an improvement district and if the bonds are to be payable in
                  part from tax proceeds and in part from the operating revenues of the district or from any
                  combination of tax proceeds and operating revenues, the resolution and notice shall indicate
                  those payment sources, but need not specify how the bonds are to be divided between those
                  sources of payment.]
                      Section 12. Section 11-14-202 , which is renumbered from Section 11-14-3 is
                  renumbered and amended to read:
                       [11-14-3].     11-14-202. Notice of election -- Contents -- Publication -- Mailing.
                      (1) (a) [Notice] The legislative body shall ensure that:
                      (i) notice of the election [shall be] is published once [a] per week during three
                  consecutive weeks in a newspaper designated in accordance with Section [ 11-14-21 ,] 11-14-316 ;
                  and
                      (ii) the first publication [to be] occurs not less than 21 nor more than 35 days before the
                  election.
                      [(b) If no official newspaper is designated, the notices]
                      (b) Notice shall be published in a newspaper [published in the municipality, or, if no
                  newspaper is published in the municipality, the notices shall be published in a newspaper] having
                  general circulation in the [municipality] local political subdivision.
                      (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), [election] notice [given for any bond
                  election held in this state] of the bond election need not be posted [by any persons].
                      (b) (i) In a [city of the third, fourth, or fifth class or a town] local political subdivision
                  where there is no newspaper [is published, the governing] of general circulation, the legislative
                  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 [governing] legislative body imposes a posting requirement, the [city
                  recorder, town clerk, or other officer designated by the governing] legislative body shall [post]
                  ensure that notice of the bond election is posted in at least five public places in the [city or town]
                  local political subdivision at least 21 days before the election.
                      (4) [The printed, posted, and mailed] Any notice required by this section shall [identify]
                  include:
                      (a) the date and place of the election;
                      (b) the hours during which the polls will be open; and
                      [(c) the purpose for which the bonds are to be issued, the maximum amount of bonds to
                  be issued, and the maximum number of years to maturity of the bonds.]
                      (c) the title and text of the ballot proposition.
                      (5) The [governing] legislative body shall pay the costs associated with the [printed,
                  posted, and mailed] notice required by this section.
                      Section 13. Section 11-14-203 , which is renumbered from Section 11-14-4 is
                  renumbered and amended to read:
                       [11-14-4].     11-14-203. Time for election -- Equipment -- Election officials --
                  Combining precincts.
                      [(1) (a) The governing body shall:]
                      [(i) designate the voting places to be used;]
                      [(ii) fix the hours during which the polls are to be open, which, if the election is a special
                  election, shall be those provided by law for the conduct of regular general elections;]


                      [(iii) cause to be provided the necessary ballot boxes, ballots, paraphernalia, equipment,
                  and supplies needed for the election as determined by the governing body; and]
                      [(iv) unless the election officials to serve at each voting place are otherwise appointed
                  under the provisions of general law, appoint three election officials, who shall be qualified
                  electors of the municipality or other entity calling the election, to serve at each voting place.]
                      [(b) The governing body may appoint one or more alternate election officials to so serve
                  in case of the absence for any cause of the designated election officials.]
                      (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) [(i)] A bond election may be held, and the proposition for the issuance of bonds
                  may be submitted [at], on the same date as any general or municipal election held in the
                  [municipality or other entity] local political subdivision calling the bond election, or at a special
                  election called for the purpose on a date authorized by Section 20A-1-204 .
                      [(ii)] (b) A bond election may not be held, nor a proposition for issuance of bonds be
                  submitted, at the Western States Presidential Primary election established in Title 20A, Chapter
                  9, Part 8, Western States Presidential Primary.
                      [(b) The process for calling, the approved purpose, and the date of a special election shall
                  be governed by Sections 20A-1-203 and 20A-1-204 .]
                      [(c) Where a bond election is being held on the same day as any other election held in the
                  municipality or entity calling the bond election or in some part of that municipality or entity, the
                  election officials serving for the other election may also serve as election officials for the bond
                  election.]
                      (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.
                      [(3) (a) Voting] (4) When a bond election is being held on a day when no other election
                  is being held in the local political subdivision calling the bond election, voting precincts may be
                  combined for purposes of bond elections[. (b) The governing body may designate whatever
                  voting places that it considers best suited,] so long as no voter is required to vote outside the
                  county in which [he] the voter resides.
                      (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:
                       [11-14-6].     11-14-204. Challenges to voter qualifications.
                      [(1) The qualifications as an elector of any person applying for a ballot at a bond election
                  may be challenged for cause by any one or more of the election officials or by any other person at


                  the time the ballot is applied for, but notwithstanding any challenge hereunder, any such person
                  shall receive a ballot and be permitted to vote if:]
                      [(a) the person is shown on the registration lists as a registered voter in the municipality
                  or other entity calling the bond election; and]
                      [(b) the person takes an oath sworn to before one of the election officials that he is a
                  qualified elector of such municipality or entity.]
                      [(2) The oath referred to in Subsection (1) may, but need not, be in substantially the
                  following form:]
                 
[ELECTOR'S OATH]

                      [STATE OF UTAH )]
                  [COUNTY OF ____________)]
                      [The undersigned, having been first duly sworn upon oath, deposes and says under the
                  pains and penalties of perjury, as follows:]
                      [That I am a citizen of the United States; that I am 18 years of age or older; that I am now
                  and have been a resident of the state of Utah for not less than 30 days; that I am a resident of
                  ____ County and of the voting district or precinct of the (municipality or other entity calling the
                  bond election) in which I am offering to vote; that I am a duly registered voter of ____ County
                  and I am a qualified voter of and reside within the confines of (municipality or other entity
                  calling the bond election); and that I have not previously voted at the bond election being held on
                  this __________(month\day\year) in (municipality or other entity calling the bond election).]
                 
[____________________________________________________________]

                                              [Signature of Elector]
                 
[____________________________________________________________]

                                              [Address of Elector]
                      [I, the undersigned, Judge of election, hereby certify that the person whose signature
                  appears above, signed the foregoing statement on this __________(month\day\year), immediately
                  after I administered to him an oath in the following words: You do solemnly swear (or affirm)
                  that you have read the oath to which you are about to subscribe your signature and that the facts


                  recited therein are true and correct, so help you God (or under the pains and penalties of
                  perjury).]
                 
[____________________________________________________________]

                                              [Judge of Election]
                  [Each election official is expressly authorized to administer the oath.]
                      [(3) In the case of challenges made pursuant to Subsection (1), the election officials shall
                  keep a list of the names of each person challenged, the grounds for the challenge, and whether
                  such person was permitted to vote. The list shall be made in duplicate and the duplicate list shall
                  be made available to the governing body when it canvasses the election results.]
                      (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 .
                      [(4) No] (2) A bond election [shall] may not be [held invalid] invalidated on the grounds
                  that [unqualified] ineligible voters voted unless:
                      (a) it [shall be] is shown by clear and convincing evidence [in a contest filed prior to the
                  expiration of the period in which bond election contest may be filed] that [unqualified] ineligible
                  voters voted in sufficient numbers to change the result [voted at] of the bond election[. When the
                  election results are canvassed, the canvass shall show separately the number of votes which were
                  challenged and the number of challenged voters who were permitted to vote, but the]; and
                      (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 [shall find]
                  finds otherwise.
                      Section 15. Section 11-14-205 , which is renumbered from Section 11-14-7 is
                  renumbered and amended to read:
                       [11-14-7].     11-14-205. Special registration not required -- Official register
                  supplied by clerk.
                      (1) (a) Voter registration shall be administered according to the requirements of Title


                  20A, Chapter 2, Voter Registration.
                      [(1)] (b) [There shall be no] The legislative body may not require or mandate any special
                  registration of voters for a bond election [and the official register last made or revised shall
                  constitute the register for such bond election except that:].
                      [(a) if the bond election is held on the same day as a general, special, primary, or other
                  election held in the municipality or other bond-issuing entity or in part of the municipality or
                  entity, all persons registered to vote in such other election shall be considered registered to vote
                  in the bond election; and]
                      [(b) if the bond election is not to be held on the same day as any other election, the
                  county clerk of each county in which the municipality or entity is wholly or partly located shall
                  register at his office during regular office hours except Saturdays, Sundays, and holidays, and
                  except during the 20-day period immediately preceding the bond election, any person who on the
                  day of the bond election will be a qualified elector, such person to be registered in the same
                  manner as provided by law for registration by satellite registrars.]
                      (2) The county clerk of each county in which a [municipality or entity] local political
                  subdivision holding the bond election is located shall [make registration lists or copies of such
                  lists available at each polling place for use by registered electors entitled to use such voting
                  place] prepare the official register for the bond election according to the requirements of Section
                  20A-5-401 .
                      [(3) If the registration lists furnished include electors who do not reside within the
                  municipality or entity whose bonds are being voted upon, the county clerk or the municipality or
                  other entity shall cause to be indicated on the registration lists the names of the registered electors
                  who do not reside in such municipality or entity, but the failure to so indicate or]
                      (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 [such indication shall not be
                  considered an irregularity or] that identification, is not a ground for invalidating the bond
                  election.
                      Section 16. Section 11-14-206 , which is renumbered from Section 11-14-10 is


                  renumbered and amended to read:
                       [11-14-10].     11-14-206. Ballots -- Submission of ballot language -- Form and
                  contents.
                      [(1) The governing body shall prescribe the form of ballot to be used at the election, but
                  the proposition appearing thereon shall include a statement of]
                      (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 [they are to run from their respective dates, and in
                  general terms,] from the issuance of the bonds to final maturity; and
                      (iii) the general purpose for which [they] the bonds are to be issued. [In addition, if]
                      (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 [municipality] local political subdivision, or from any combination [thereof, the]
                  of tax proceeds and operating revenues, the bond proposition shall [so indicate, but need not
                  specify how the bonds are to be divided as to source of payment. The proposition] indicate those
                  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 [question or questions are] proposition is submitted [at an election not
                  specially held for that purpose] to a vote on the same day as any other election held in the local
                  political subdivision calling the bond election, the bond [question or questions] proposition may
                  be combined with the candidate ballot in a manner consistent with Section 20A-6-301 ,
                  20A-6-303 , or 20A-6-402 .
                      [(2) Where voting machines are used, the ballot shall be in such form as is appropriate
                  for such use, and absentee ballots shall be in the form prescribed by law for such ballots.]
                      (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:
                       [11-14-11].     11-14-207. Counting and canvassing -- Official finding.
                      [Immediately after the closing of the polls the judges of the election shall proceed to
                  count and canvass the ballots cast and make returns thereof to the governing body. The governing
                  body shall not later than ten days after the election meet and canvass the returns. The oaths taken
                  pursuant to Subsection (1) of Section 11-14-6 and the ballots and ballot boxes shall be held in
                  safekeeping in the manner and for the period provided by law with respect to ballots for other
                  elections.]
                      (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 [returns] results shall be made in public [and at its
                  conclusion the governing] no sooner than seven days after the election and no later than 14 days


                  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 [make] record in its
                  minutes:
                      (i) an official finding as to the total number of votes cast, the number of affirmative
                  votes, the number of negative votes, [the number of mutilated ballots and] the number of
                  challenged voters [as above required], the number of challenged voters that were issued a
                  provisional ballot, and the number of provisional ballots that were counted; and [shall declare]
                      (ii) an official finding that the bond proposition [to have carried or lost. Such findings
                  shall be incorporated in the official minutes of the governing body, and it shall not be necessary
                  to file any] was approved or rejected.
                      (b) The legislative body need not file with the county clerk or with any other official:
                      (i) any statement or certificate of [such] the election results [or];
                      (ii) any affidavit with respect to the facts pertaining to the election [nor]; or
                      (iii) any affidavit pertaining to the indebtedness and valuation of the municipality [with
                  the county clerk or with any other official].
                      (3) The [determination of the governing body] official finding that [a] the majority of the
                  qualified [electors] voters of the [municipality] local political subdivision voting on the bond
                  proposition[, have assented to] approved the issuance of the bonds[, shall be] is conclusive in any
                  action or proceeding involving the validity of the election or involving the determination or
                  declaration of the result [thereof instituted] of the election if the action is filed after the
                  expiration of the period provided in [Section 11-14-12 for the filing of actions contesting the
                  validity of bond elections and after the date of delivery of and payment for any part of the bonds]
                  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:
                 
Part 3. Issuance of Bonds

                       [11-14-13].     11-14-301. Issuance of bonds by legislative body -- Computation of
                  indebtedness under constitutional and statutory limitations.
                      (1) If the [governing] legislative body has declared the bond proposition to have carried
                  and no contest has been filed, or if [the] a contest [is] has been filed [after it has been] and
                  favorably terminated, the [governing] legislative body may proceed to issue the bonds voted at
                  the election.
                      (2) It is not necessary that all of the bonds be issued at one time, but [no] bonds [so
                  voted] approved by the voters may not be issued more than ten years after the date of the
                  election. [No bonds so voted]
                      (3) (a) Bonds approved by the voters may not be issued to an amount which will cause
                  the indebtedness of the [municipality] local political subdivision to exceed that permitted by the
                  Utah Constitution or statutes.
                      (b) In computing the amount of indebtedness [which] that may be incurred pursuant to
                  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 [municipality]
                  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 [municipality] local
                  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 [municipality] local political subdivision, as provided in Title 59, Chapter 3, 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 [ 11-14-2 . No]
                  11-14-201 .
                      (6) A bond election is not void [because] when the amount of bonds authorized at the
                  election exceeded the limitation applicable to the [municipality] local political subdivision at 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:
                       [11-14-14].     11-14-302. Resolution -- Negotiability -- Registration -- Maturity --
                  Interest -- Payment -- Redemption -- Combining issues -- Sale -- Financing plan.


                      (1) Bonds issued under this chapter shall be authorized by resolution of the [governing]
                  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 [governing]
                  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 [municipality] local political subdivision has retained a fiscal
                  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 [municipality] local political
                  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 [municipality] local political


                  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 [municipality] local political subdivision or by the treasurer's duly authorized
                  agent.
                      (3) Bonds, bond anticipation notes, or tax anticipation notes with maturity dates of one
                  year or less may be authorized by a [municipality] local political subdivision from time to time
                  pursuant to a plan of financing adopted by the [governing] legislative body. The plan of
                  financing shall specify the terms and conditions under which the bonds or notes may be issued,
                  sold, and delivered, the officers of the [municipality] local political subdivision authorized to
                  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 [governing]
                  legislative body of the [municipality] local political subdivision may include in the plan of
                  financing the terms and conditions of agreements which may be entered into by the
                  [municipality] local political subdivision with banking institutions for letters of credit or for
                  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 [municipality] local political subdivision.
                      Section 21. Section 11-14-303 , which is renumbered from Section 11-14-14.5 is
                  renumbered and amended to read:
                       [11-14-14.5].     11-14-303. Bonds, notes, or other evidences of indebtedness of
                  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:
                       [11-14-15].     11-14-304. Facsimile signatures and facsimile seal, use permitted --
                  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 [municipality] local political subdivision.
                      Section 23. Section 11-14-305 , which is renumbered from Section 11-14-16 is
                  renumbered and amended to read:
                       [11-14-16].     11-14-305. Registration, denominations and exchange of obligations.
                      (1) Unless otherwise provided by the [municipality] local political subdivision, 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 [ 11-14-16 ] (2) governs and applies with
                  respect to such issue.
                      (2) Any obligations issued under this chapter may be issued in denominations of $100 or
                  any multiple of $100. The [governing] legislative body may provide for the exchange of any of
                  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 [governing] legislative body may require all expenses incurred in
                  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:
                       [11-14-17].     11-14-306. Additional pledge for general obligation bonds -- Revenue
                  bonds -- Resolution.
                      (1) To the extent constitutionally permissible, [municipalities] local political
                  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 [governing] legislative body.
                      (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 [municipality]


                  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 [municipality] local political subdivision itself might do.
                      Section 25. Section 11-14-307 , which is renumbered from Section 11-14-17.5 is
                  renumbered and amended to read:
                       [11-14-17.5].     11-14-307. Revenue bonds payable out of excise tax revenues.
                      (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 [governing]
                  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 [governing] legislative body may think proper.
                      (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 [governing] legislative body imposing the excise tax and pursuant to
                  which the tax is being collected, the obligation of the [governing] legislative body to continue to
                  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 [ 11-14-21 ] 11-14-316 , with the first publication being not
                  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:
                       [11-14-17.6].     11-14-308. Special service district bonds secured by federal
                  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 [governing] legislative body to:
                      (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:
                       [11-14-18].     11-14-309. Refunding bonds -- Limitation on redemption of bonds.
                      (1) Any bond issued under this chapter may be refunded as provided in the Utah
                  Refunding Bond Act.


                      (2) Nothing contained in this [act] chapter nor in any other law of this state [shall] may
                  be construed to permit any [municipality] local political subdivision to call outstanding bonds
                  [now or hereafter outstanding] for redemption in order to refund [such] those bonds or in order to
                  pay them prior to their stated maturities, unless:
                      (a) the right to call [such] the bonds for redemption was specifically reserved and stated
                  in [such] the bonds at the time of their issuance[,]; and
                      (b) all conditions with respect to the manner, price, and time applicable to [such] the
                  redemption as set forth in the proceedings authorizing the outstanding bonds are strictly
                  observed[, the intention of this paragraph being to make it certain that the holder of no].
                      (3) A holder of an outstanding bond may not be compelled to surrender [such] the bond
                  for refunding [prior to] before its stated maturity or optional date of redemption expressly
                  reserved [therein] in the bond, even though [such] the refunding might result in financial benefit
                  to the [issuing municipality] local political subdivision issuing the bond.
                      Section 28. Section 11-14-310 , which is renumbered from Section 11-14-19 is
                  renumbered and amended to read:
                       [11-14-19].     11-14-310. General obligation bonds -- Levy and collection of taxes.
                      (1) Any bonds issued [hereunder] under this chapter in such manner that they are not
                  payable solely from revenues other than those derived from ad valorem taxes [shall constitute]
                  are full general obligations of the [municipality] local political subdivision, for the prompt and
                  punctual payment of principal of and interest on which the full faith and credit of the
                  [municipality] local political subdivision are pledged, and the [municipality] local political
                  subdivision is hereby expressly required, regardless of any limitations which may otherwise exist
                  on the amount of taxes which the [municipality] local political subdivision may levy, to provide
                  for the levy and collection annually of ad valorem taxes without limitation as to rate or amount
                  on all taxable property in the [municipality] local political subdivision fully sufficient for such
                  purpose. If by law ad valorem taxes for the [municipality] local political subdivision are levied
                  by a board other than its [governing] legislative body, the taxes for which provision is herein
                  made shall be levied by such other board and the [municipality] local political subdivision shall


                  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
                  [municipality] local political subdivision.
                      (2) If any [municipality] local political subdivision shall neglect or fail for any reason to
                  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 [municipality] local political subdivision.
                      Section 29. Section 11-14-311 , which is renumbered from Section 11-14-19.5 is
                  renumbered and amended to read:
                       [11-14-19.5].     11-14-311. Bond anticipation notes.
                      (1) Whenever the [governing] legislative body considers it advisable and in the interests
                  of the [municipality] local political subdivision to anticipate the issuance of bonds to be issued
                  under this chapter, the [governing] legislative body may, pursuant to appropriate resolution, issue
                  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 [governing] legislative body determines by resolution. Interest
                  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 [governing]
                  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 [municipality] local political
                  subdivision, the bond anticipation notes and the interest on them shall be secured by a pledge of
                  the full faith and credit of the [municipality] local political subdivision in the manner provided in
                  Section [ 11-14-19 ] 11-14-310 and shall also be made payable from funds derived from the sale
                  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 [municipality] local
                  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 [11-14-15 , 11-14-16 , 11-14-20 , 11-14-21 , and 11-14-22 ] 11-14-304 ,
                  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 [ 11-14-13 ] 11-14-301 , if the issuance of
                  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:
                       [11-14-19.6].     11-14-312. Prior bonds validated -- Exceptions.
                      All bonds issued by any [municipality] local political subdivision prior to the effective
                  date of this [act] chapter and all proceedings had in the authorization and issuance of them are
                  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 [act] chapter
                  takes effect.
                      Section 31. Section 11-14-313 , which is renumbered from Section 11-14-19.7 is
                  renumbered and amended to read:
                       [11-14-19.7].     11-14-313. Issuance of negotiable notes or bonds authorized --
                  Limitation on amount of tax anticipation notes or bonds -- Procedure.
                      (1) For the purpose of meeting the current expenses of the [municipality] local political
                  subdivision and for any other purpose for which funds of the [municipality] local political
                  subdivision may be expended, the [governing] legislative body may borrow money not in excess
                  of 90% of the taxes and other revenues of the [municipality] local political subdivision for the
                  current year, issuing therefor negotiable notes or bonds of the [municipality] local political
                  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
                  [municipality] local political subdivision may be expended, and there shall be included in 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 [municipality] local political subdivision


                  which have been or may hereafter be contracted, the [governing] legislative body of the
                  [municipality] local political subdivision is authorized and directed to levy and collect in the next
                  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 [municipality's] local political subdivision's fiscal
                  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 [governing] legislative body shall by resolution
                  determine. Tax anticipation notes shall be in bearer form, except that the [governing] legislative
                  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 [governing] legislative body 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 in the authorizing resolution.
                      (3) The provisions of Sections [ 11-14-14.5 , 11-14-15 , 11-14-16 , 11-14-19.7 , 11-14-20 ,
                  11-14-21 , 11-14-22 , 11-14-24 , and 11-14-25 ] 11-14-303 , 11-14-304 , 11-14-305 , 11-14-313 ,
                  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.
                      [(4) "Municipality" as used in this section shall have the meaning set forth in Section
                  11-14-1 .]
                      Section 32. Section 11-14-314 , which is renumbered from Section 11-14-19.8 is
                  renumbered and amended to read:


                       [11-14-19.8].     11-14-314. Tax anticipation obligations validated.
                      All obligations issued in anticipation of the collection of taxes and other revenues by any
                  [municipality] local political subdivision prior to the effective date of this [act] chapter and all
                  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 [act] chapter takes effect.
                      Section 33. Section 11-14-315 , which is renumbered from Section 11-14-20 is
                  renumbered and amended to read:
                       [11-14-20].     11-14-315. Nature and validity of bonds issued -- Applicability of
                  other statutory provisions -- Budget provision required -- Applicable procedures for
                  issuance.
                      Bonds issued under this [act] chapter shall have all the qualities of negotiable paper, shall
                  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 [act] chapter is
                  intended to afford an alternative method for the issuance of bonds by [municipalities] local
                  political subdivisions and shall not be so construed as to deprive any [municipality] local
                  political subdivision of the right to issue its bonds under authority of any other statute, but
                  nevertheless this [act] chapter shall constitute full authority for the issue and sale of bonds by
                  [municipalities] local political subdivisions. The provisions of Section 11-1-1 , Utah Code
                  Annotated 1953, shall not be applicable to bonds issued under this [act] chapter. Any
                  [municipality] local political subdivision subject to the provisions of any budget law shall in its
                  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 [municipality] local political
                  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 [governing] legislative
                  body.
                      Section 34. Section 11-14-316 , which is renumbered from Section 11-14-21 is
                  renumbered and amended to read:
                       [11-14-21].     11-14-316. Publication of notice, resolution, or other proceeding --
                  Contest.
                      [(1) If a municipality has one or more newspapers published within its boundaries, the
                  governing body of the municipality shall, from time to time, designate one of the newspapers as
                  the "official newspaper" for the publication of all notices required under this chapter. Otherwise,
                  the governing body, from time to time, shall designate a newspaper with general circulation in
                  the municipality as the "official newspaper" for the publication of such notices. (2) The
                  governing]
                      (1) The legislative body of any [public body] local political subdivision may provide for
                  the publication of any resolution or other proceeding adopted [by it] under this chapter in [the
                  "official newspaper" designated under Subsection (1)] a newspaper having general circulation in
                  the local political subdivision.
                      [(3) In case of] (2) When publication involves a resolution or other proceeding providing
                  for the issuance of bonds, the [governing] legislative body may, in lieu of publishing the entire
                  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.
                      [(4)] (3) For a period of 30 days after the publication, any person in interest may contest:
                      (a) the legality of such resolution or proceeding[,];
                      (b) any bonds which may be authorized by such resolution or proceeding[,]; or
                      (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
                  [such] the resolution or proceeding for any [cause] reason.
                      Section 35. Section 11-14-401 , which is renumbered from Section 11-14-22 is
                  renumbered and amended to read:
                 
Part 4. Miscellaneous Provisions

                       [11-14-22].     11-14-401. Short title -- Title to appear on face of bonds -- Effect of
                  future statutes dealing with municipal bond issues.
                      (1) This [act may be cited] chapter is known as the ["Utah Municipal Bond Act," all]
                  "Local Government Bonding Act."
                      (2) All bonds issued pursuant to authority contained in this [act] chapter shall contain on
                  their face a recital to that effect, and no [act] chapter hereafter passed by the Legislature
                  amending other [acts] chapters under which bonds authorized to be issued by this [act] chapter
                  might be issued or dealing with bond issues of [municipalities] local political subdivisions shall


                  be construed to affect the authority to proceed under this [act] chapter in the manner herein
                  provided unless such future statute amends this [act] chapter and specifically provides that it is to
                  be applicable to bonds issued under this [act] chapter.
                      (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:
                       [11-14-23].     11-14-402. Exemptions from application of chapter -- Exception.
                      (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 [ 11-14-14.5 ] 11-14-303 and [ 11-14-28 ] 11-14-501 have general application
                  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:
                       [11-14-24].     11-14-403. Conflict of laws.
                      To the extent that any one or more provisions of this [act] chapter shall be in conflict with
                  any other law or laws, the provisions of this [act] chapter shall be controlling.
                      Section 38. Section 11-14-404 , which is renumbered from Section 11-14-25 is
                  renumbered and amended to read:
                       [11-14-25].     11-14-404. Severability clause.
                      If any one or more sentences, clauses, phrases, provisions or sections of this [act] chapter
                  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 [act] chapter to other sets of circumstances shall
                  nevertheless continue to be valid and effective, the legislature hereby declaring that all provisions


                  of this [act] chapter are severable.
                      Section 39. Section 11-14-405 , which is renumbered from Section 11-14-26 is
                  renumbered and amended to read:
                       [11-14-26].     11-14-405. Validity of prior bond issues.
                      All bonds issued by any [municipality] local political subdivision prior to the effective
                  date of this [act] chapter and all proceedings had in the authorization and issuance thereof are
                  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 [act] chapter
                  takes effect.
                      Section 40. Section 11-14-406 , which is renumbered from Section 11-14-27 is
                  renumbered and amended to read:
                       [11-14-27].     11-14-406. Application of act.
                      Sections [ 11-14-2 , 11-14-4 , 11-14-6 , 11-14-7 , 11-14-8 , 11-14-9 , 11-14-12 , 11-14-15 , and
                  11-14-18 ] 11-14-201 , 11-14-202 , 11-14-203 , 11-14-204 , 11-14-205 , and 11-14-207 shall apply
                  to all bond elections [and to all bonds issued] held by any city, town, county, school district,
                  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 [ 11-14-23 ]
                  11-14-402 , by any other taxing district or governmental entity whether or not the bonds are
                  issued [pursuant to] under authority granted by this [act and, as to matters provided in Section
                  11-14-18 , this act shall apply to all bonds issued and outstanding as of May 11, 1965, as well as
                  to bonds issued after that date] chapter.
                      Section 41. Section 11-14-501 , which is renumbered from Section 11-14-28 is
                  renumbered and amended to read:
                 
Part 5. Government Security Interests

                       [11-14-28].     11-14-501. Creation and perfection of government security interests.
                      (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 [of Utah];
                      (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 [deems] considers advisable and
                  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 [deemed] considered advisable, and each
                  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 [deemed]
                  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 [deems] considers desirable; and
                      (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 [deemed] considered conducive to
                  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 [deems] considers it appropriate, to convert the bonds or some portion of the
                  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 [deemed] considered necessary in order to provide
                  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 [ 11-14-17 ] 11-14-306 .
                      (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 [ 11-14-19.5 ] 11-14-311 , and may
                  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
                  [deemed] considered duly paid and discharged for the purpose of any applicable constitutional or
                  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 [ 11-14-15 ] 11-14-304 .
                      (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 [ 11-14-22 ] 11-14-401 , this
                  act is specifically made applicable to registered public obligations issued under Title 11, Chapter
                  14, [Utah Municipal Bond] Local Government Bonding Act, in accordance with Section
                  [ 11-14-16 ] 11-14-305 .
                      (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, [Utah Municipal Bond] Local Government Bonding Act. The revenue derived
                  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, [Utah Municipal Bond] Local Government Bonding Act;
                      (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, [Utah Municipal Bond] Local Government Bonding Act, for the holding of bond
                  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, [Utah
                  Municipal Bond] Local Government Bonding Act.
                      (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, [Utah Municipal Bond] Local Government Bonding Act. If the bonds are
                  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, [Utah Municipal Bond] Local Government Bonding Act. The board may
                  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, [Utah Municipal
                  Bond] Local Government Bonding Act. The board may for purposes of the election treat the
                  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, [Utah Municipal Bond] Local Government Bonding Act.
                      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, [Utah Municipal Bond] Local
                  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 [ 11-14-14.5 , 11-14-15 , 11-14-16 , 11-14-19.7 , 11-14-20 ,
                  11-14-21 , 11-14-22 , 11-14-24 , and 11-14-25 ] 11-14-303 , 11-14-304 , 11-14-305 , 11-14-313 ,
                  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, [Utah Municipal Bond] Local Government
                  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, [Utah Municipal Bond] Local Government
                  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,
                  [Utah Municipal Bond] Local Government Bonding Act, and Title 11, Chapter 27, Utah
                  Refunding Bond Act, as applicable, and may be in the form and denominations and have the
                  provisions and details as are permitted 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, [Utah
                  Municipal Bond] Local Government Bonding Act:
                      (i) adoption of the resolution calling the election;
                      (ii) giving notice of the election;


                      (iii) conduct of the election;
                      (iv) determination of voters' qualifications; and
                      (v) canvassing of election results.
                      (12) In designating the voting places for purposes of the election, the board may treat the
                  entire district as a single precinct or divide the district into precincts.
                      (13) No election is required under this section prior to the issuance of bonds or the
                  making of a contract with the United States except as otherwise required by the constitution or
                  Subsection (14).
                      (14) Notwithstanding anything to the contrary in this section or Title 11, Chapter 14,
                  [Utah Municipal Bond] Local Government Bonding Act, no irrigation district may issue bonds,
                  other than bonds issued to refund outstanding bonds, or enter into a contract with the United
                  States unless:
                      (a) the issuance of the bonds or the making of the contract has been approved at an
                  election called and held as provided in this section; or
                      (b) the board of trustees:
                      (i) provides notice of a public hearing on whether to issue the bonds or enter into the
                  contract 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, [Utah Municipal Bond] Local
                  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, [Utah Municipal Bond] Local Government Bonding Act, for the acquisition


                  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, [Utah Municipal Bond] Local Government Bonding Act.
                      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 [of Utah] as they now exist or may be amended for the holding of elections in general


                  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, [Utah Municipal Bond] Local Government Bonding Act, and the provisions
                  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, [Utah Municipal Bond] Local Government
                  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
                  [Article XIV, Section 8,] the Utah Constitution[,] and Section [ 11-14-2 ] 11-14-201 is otherwise
                  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, [Utah Municipal Bond] Local
                  Government Bonding Act, the bonds required to be issued shall be issued in accordance with
                  Title 11, Chapter 14, [Utah Municipal Bond] Local Government Bonding Act. Any such petition
                  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, [Utah Municipal Bond] Local Government Bonding Act.
                      (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 [ 11-14-15 ] 11-14-304 with regard to the use
                  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 [ 11-14-15 ] 11-14-304 , with regard to the use 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 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
                  [ 11-14-17.6 ] 11-14-308 .
                      (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, [Utah Municipal
                  Bond] Local Government Bonding Act.
                      (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, [Utah Municipal Bond] Local
                  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, [Utah Municipal Bond] Local Government Bonding Act.
                      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,
                  [Utah Municipal Bond] Local Government Bonding Act, and may be in the form and
                  denominations and have provisions and details permitted by Title 11, Chapter 14, [Utah
                  Municipal Bond] Local Government Bonding Act, except that the bonds shall mature serially or
                  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,
                  [Utah Municipal Bond] Local Government Bonding Act:
                      (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, [Utah Municipal Bond] Local Government
                  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, [Utah Municipal Bond] Local
                  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, [Utah Municipal Bond] Local Government Bonding Act.
                      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, [Utah Municipal
                  Bond] Local Government Bonding Act, and Title 11, Chapter 27, Utah Refunding Bond Act, to
                  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 [ 11-14-21 (3)] 11-14-316 (2).
                      (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, [Utah Municipal Bond] Local
                  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.