Download Zipped Introduced WordPerfect HB0014.ZIP
[Status][Bill Documents][Fiscal Note][Bills Directory]
H.B. 14
1
2
3
4
5
6 LONG TITLE
7 General Description:
8 This bill modifies provisions related to bond elections.
9 Highlighted Provisions:
10 This bill:
11 . changes the dates by which a legislative body must approve bond election
12 resolutions and bond proposition language to be used at the election in order to meet
13 ballot preparation and mailing requirements;
14 . implements provisional ballot procedures for challenged ballots in bond elections;
15 . provides that bond elections comply with the general voter registration and voting
16 procedures contained in the Election Code;
17 . modifies election administration and canvassing procedures for bond elections to
18 provide consistency with general election procedures;
19 . provides that county clerks, municipal clerks, clerks or chief executive officers of
20 special districts, and business administrators or superintendents of school districts
21 may act as election officers to conduct and administer bond elections, and to
22 supervise and administer certain bond and voted leeway elections;
23 . permits an election officer to appoint or employ agents to assist with the conducting
24 and administration of bond elections;
25 . provides that election officers in bond elections shall conduct their procedures at the
26 direction of the municipality calling the election;
27 . clarifies procedures for challenging bond elections and for publishing requirements
28 for notice of bond elections by newspaper;
29 . removes procedures for mailing of notice of bond elections by postcard;
30 . modifies the Election Code to provide consistent procedures for recounts of bond
31 election results and challenges to bond elections; and
32 . changes the name of the "Utah Municipal Bond Act" to "Local Government
33 Bonding Act" to provide consistency in the definition of words commonly used in
34 the Utah code;
35 . renumbers Title 14, Chapter 11, "Local Government Bonding Act"; and
36 . makes technical changes.
37 Monies Appropriated in this Bill:
38 None
39 Other Special Clauses:
40 None
41 Utah Code Sections Affected:
42 AMENDS:
43 9-3-409, as enacted by Chapter 309, Laws of Utah 1993
44 10-7-8, as last amended by Chapter 9, Laws of Utah 2001
45 10-7-15, as last amended by Chapter 90, Laws of Utah 2002
46 10-18-302, as last amended by Chapter 270, Laws of Utah 2004
47 11-8-2, as last amended by Chapter 112, Laws of Utah 1991
48 11-13-205, as renumbered and amended by Chapter 286, Laws of Utah 2002
49 11-13-219, as renumbered and amended by Chapter 286, Laws of Utah 2002
50 11-17-3, as last amended by Chapter 131, Laws of Utah 2003
51 11-25-5, as last amended by Chapter 133, Laws of Utah 2001
52 11-27-3, as last amended by Chapters 142 and 198, Laws of Utah 1987
53 15-7-12, as last amended by Chapter 9, Laws of Utah 2001
54 17-12-1, as last amended by Chapter 133, Laws of Utah 2000
55 17-24-1, as last amended by Chapter 241, Laws of Utah 2001
56 17-36-54, as renumbered and amended by Chapter 133, Laws of Utah 2000
57 17-50-303, as last amended by Chapter 96, Laws of Utah 2001
58 17A-2-306, as last amended by Chapter 9, Laws of Utah 2001
59 17A-2-307, as last amended by Chapter 9, Laws of Utah 2001
60 17A-2-309, as last amended by Chapter 9, Laws of Utah 2001
61 17A-2-423, as last amended by Chapter 9, Laws of Utah 2001
62 17A-2-428, as renumbered and amended by Chapter 186, Laws of Utah 1990
63 17A-2-543, as last amended by Chapter 9, Laws of Utah 2001
64 17A-2-622, as last amended by Chapter 90, Laws of Utah 2001
65 17A-2-712, as last amended by Chapter 285, Laws of Utah 2002
66 17A-2-821, as last amended by Chapter 254, Laws of Utah 2000
67 17A-2-824, as last amended by Chapters 1 and 254, Laws of Utah 2000
68 17A-2-826, as last amended by Chapter 9, Laws of Utah 2001
69 17A-2-1037, as last amended by Chapter 9, Laws of Utah 2001
70 17A-2-1058, as last amended by Chapter 9, Laws of Utah 2001
71 17A-2-1312, as last amended by Chapter 9, Laws of Utah 2001
72 17A-2-1315, as last amended by Chapter 5, Laws of Utah 1991
73 17A-2-1316, as last amended by Chapter 9, Laws of Utah 2001
74 17A-2-1322, as last amended by Chapters 9 and 195, Laws of Utah 2001
75 17A-2-1414, as last amended by Chapter 9, Laws of Utah 2001
76 17A-2-1439, as last amended by Chapter 9, Laws of Utah 2001
77 17A-2-1440, as last amended by Chapter 254, Laws of Utah 2000
78 17A-2-1823, as enacted by Chapter 216, Laws of Utah 1995
79 17A-2-1825, as enacted by Chapter 216, Laws of Utah 1995
80 17B-2-608, as enacted by Chapter 284, Laws of Utah 2002
81 17B-4-1204, as enacted by Chapter 133, Laws of Utah 2001
82 19-6-503, as renumbered and amended by Chapter 112, Laws of Utah 1991
83 19-6-505, as last amended by Chapter 9, Laws of Utah 2001
84 20A-1-102, as last amended by Chapters 117 and 127, Laws of Utah 2003
85 20A-3-202, as last amended by Chapter 328, Laws of Utah 2000
86 20A-3-304.1, as enacted by Chapter 195, Laws of Utah 2004
87 20A-4-202, as last amended by Chapter 228, Laws of Utah 1993
88 20A-4-301, as last amended by Chapter 11, Laws of Utah 2002, Fifth Special Session
89 20A-4-401, as last amended by Chapter 133, Laws of Utah 2002
90 20A-4-402, as enacted by Chapter 1, Laws of Utah 1993
91 20A-4-403, as enacted by Chapter 1, Laws of Utah 1993
92 20A-5-400.5, as enacted by Chapter 344, Laws of Utah 1998
93 20A-5-401, as last amended by Chapter 116, Laws of Utah 2003
94 20A-6-301, as last amended by Chapter 57, Laws of Utah 2001
95 20A-6-303, as last amended by Chapter 57, Laws of Utah 2001
96 20A-6-402, as last amended by Chapter 57, Laws of Utah 2001
97 31A-22-502, as last amended by Chapter 71, Laws of Utah 2002
98 53A-2-105, as last amended by Chapter 294, Laws of Utah 1998
99 53A-18-101, as last amended by Chapter 9, Laws of Utah 2001
100 53A-18-102, as last amended by Chapter 9, Laws of Utah 2001
101 53A-21-104, as last amended by Chapter 199, Laws of Utah 2003
102 53A-28-302, as last amended by Chapter 9, Laws of Utah 2001
103 54-9-103, as renumbered and amended by Chapter 286, Laws of Utah 2002
104 54-9-106, as renumbered and amended by Chapter 286, Laws of Utah 2002
105 59-7-601, as enacted by Chapter 169, Laws of Utah 1993
106 59-12-603, as last amended by Chapters 156 and 255, Laws of Utah 2004
107 59-12-703, as last amended by Chapters 255 and 317, Laws of Utah 2004
108 59-12-802, as last amended by Chapter 255, Laws of Utah 2004
109 59-12-804, as last amended by Chapter 255, Laws of Utah 2004
110 59-12-1402, as last amended by Chapters 255 and 317, Laws of Utah 2004
111 59-12-1503, as last amended by Chapters 90 and 255, Laws of Utah 2004
112 63B-2-116, as enacted by Chapter 304, Laws of Utah 1993
113 63B-2-216, as enacted by Chapter 304, Laws of Utah 1993
114 63B-3-116, as enacted by Chapter 300, Laws of Utah 1994
115 63B-3-216, as enacted by Chapter 300, Laws of Utah 1994
116 63B-4-116, as enacted by Chapter 329, Laws of Utah 1995
117 63B-5-116, as enacted by Chapter 335, Laws of Utah 1996
118 63B-6-116, as enacted by Chapter 391, Laws of Utah 1997
119 63B-6-216, as enacted by Chapter 270, Laws of Utah 1997
120 63B-6-416, as enacted by Chapter 391, Laws of Utah 1997
121 63B-7-116, as enacted by Chapter 67, Laws of Utah 1998
122 63B-7-216, as enacted by Chapter 316, Laws of Utah 1998
123 63B-7-416, as enacted by Chapter 67, Laws of Utah 1998
124 63B-8-116, as enacted by Chapter 309, Laws of Utah 1999
125 63B-8-216, as enacted by Chapter 331, Laws of Utah 1999
126 63B-8-416, as enacted by Chapter 309, Laws of Utah 1999
127 63B-9-216, as enacted by Chapter 354, Laws of Utah 2000
128 63B-10-116, as enacted by Chapter 321, Laws of Utah 2001
129 63B-11-116, as enacted by Chapter 199, Laws of Utah 2002
130 63B-11-216, as enacted by Chapter 252, Laws of Utah 2002
131 63B-11-316, as enacted by Chapter 278, Laws of Utah 2002
132 63B-11-516, as enacted by Chapter 266, Laws of Utah 2002
133 72-2-204, as renumbered and amended by Chapter 270, Laws of Utah 1998
134 72-2-108, as last amended by Chapter 318, Laws of Utah 2000
135 73-10d-4, as last amended by Chapter 9, Laws of Utah 2001
136 73-10d-7, as last amended by Chapter 9, Laws of Utah 2001
137 ENACTS:
138 11-14-101, Utah Code Annotated 1953
139 11-14-102, Utah Code Annotated 1953
140 11-14-103, Utah Code Annotated 1953
141 11-14-208, Utah Code Annotated 1953
142 RENUMBERS AND AMENDS:
143 11-14-201, (Renumbered from 11-14-2, as last amended by Chapter 252, Laws of Utah
144 1999)
145 11-14-202, (Renumbered from 11-14-3, as last amended by Chapter 292, Laws of Utah
146 2003)
147 11-14-203, (Renumbered from 11-14-4, as last amended by Chapter 371, Laws of Utah
148 2004)
149 11-14-204, (Renumbered from 11-14-6, as last amended by Chapter 75, Laws of Utah
150 2000)
151 11-14-205, (Renumbered from 11-14-7, as last amended by Chapter 3, Laws of Utah
152 1996, Second Special Session)
153 11-14-206, (Renumbered from 11-14-10, as last amended by Chapter 281, Laws of
154 Utah 1981)
155 11-14-207, (Renumbered from 11-14-11, as last amended by Chapter 115, Laws of
156 Utah 1975)
157 11-14-301, (Renumbered from 11-14-13, as last amended by Chapter 3, Laws of Utah
158 1988)
159 11-14-302, (Renumbered from 11-14-14, as last amended by Chapter 346, Laws of
160 Utah 1983)
161 11-14-303, (Renumbered from 11-14-14.5, as last amended by Chapter 191, Laws of
162 Utah 1987)
163 11-14-304, (Renumbered from 11-14-15, as last amended by Chapter 280, Laws of
164 Utah 1981)
165 11-14-305, (Renumbered from 11-14-16, as last amended by Chapter 62, Laws of Utah
166 1983)
167 11-14-306, (Renumbered from 11-14-17, as last amended by Chapter 72, Laws of Utah
168 2000)
169 11-14-307, (Renumbered from 11-14-17.5, as last amended by Chapter 193, Laws of
170 Utah 2001)
171 11-14-308, (Renumbered from 11-14-17.6, as last amended by Chapter 205, Laws of
172 Utah 2001)
173 11-14-309, (Renumbered from 11-14-18, as last amended by Chapter 346, Laws of
174 Utah 1983)
175 11-14-310, (Renumbered from 11-14-19, as enacted by Chapter 41, Laws of Utah 1965)
176 11-14-311, (Renumbered from 11-14-19.5, as last amended by Chapter 79, Laws of
177 Utah 1985)
178 11-14-312, (Renumbered from 11-14-19.6, as enacted by Chapter 115, Laws of Utah
179 1975)
180 11-14-313, (Renumbered from 11-14-19.7, as last amended by Chapter 345, Laws of
181 Utah 1983)
182 11-14-314, (Renumbered from 11-14-19.8, as enacted by Chapter 280, Laws of Utah
183 1981)
184 11-14-315, (Renumbered from 11-14-20, as enacted by Chapter 41, Laws of Utah 1965)
185 11-14-316, (Renumbered from 11-14-21, as last amended by Chapter 201, Laws of
186 Utah 1987)
187 11-14-401, (Renumbered from 11-14-22, as enacted by Chapter 41, Laws of Utah 1965)
188 11-14-402, (Renumbered from 11-14-23, as last amended by Chapter 69, Laws of Utah
189 2001)
190 11-14-403, (Renumbered from 11-14-24, as enacted by Chapter 41, Laws of Utah 1965)
191 11-14-404, (Renumbered from 11-14-25, as enacted by Chapter 41, Laws of Utah 1965)
192 11-14-405, (Renumbered from 11-14-26, as enacted by Chapter 41, Laws of Utah 1965)
193 11-14-406, (Renumbered from 11-14-27, as last amended by Chapter 10, Laws of Utah
194 1997)
195 11-14-501, (Renumbered from 11-14-28, as enacted by Chapter 69, Laws of Utah 2001)
196 REPEALS:
197 11-14-1, as last amended by Chapter 216, Laws of Utah 1995
198 11-14-8, as enacted by Chapter 41, Laws of Utah 1965
199 11-14-9, as enacted by Chapter 41, Laws of Utah 1965
200 11-14-12, as enacted by Chapter 41, Laws of Utah 1965
201
202 Be it enacted by the Legislature of the state of Utah:
203 Section 1. Section 9-3-409 is amended to read:
204 9-3-409. Actions on validity or enforceability of bonds -- Time for bringing
205 action.
206 (1) In any suit, action, or proceeding involving the validity or enforceability of any
207 bond issued under this chapter or the security for them, any such bond reciting in substance that
208 it has been issued by the authority in connection with the Utah Science Center shall be
209 conclusively deemed to have been issued for that purpose.
210 (2) For a period of 30 days after the publication of the resolution authorizing the bonds,
211 or a notice of bonds to be issued by the authority containing those items described in Section
212 [
213 person may contest the legality of the resolution authorizing any bonds, notice of bonds to be
214 issued, or any provisions made for the security and payment of the bonds. After the 30-day
215 period no one has any cause of action to contest the regularity, formality, or legality of the
216 notice of bonds to be issued or the bonds for any cause whatsoever.
217 Section 2. Section 10-7-8 is amended to read:
218 10-7-8. Resolution on bond issue -- Election as provided by Local Government
219 Bonding Act.
220 When the board of commissioners, city council or the town board of trustees of any city
221 or town shall have decided that incurring such bonded indebtedness is advisable, it shall by
222 resolution specify the purpose for which the indebtedness is to be created and the amount of
223 bonds which it is proposed to issue, and shall provide for submitting the question of the issue
224 of such bonds to the qualified electors of the city or town at the next general election, or at a
225 special election to be called for that purpose by the board of commissioners, city council or
226 board of trustees in such manner and subject to such conditions as is provided in Title 11,
227 Chapter 14, [
228 require an election for the issuance of refunding bonds or other bonds not required by the
229 Constitution to be voted at an election.
230 Section 3. Section 10-7-15 is amended to read:
231 10-7-15. Sale or lease of electrical generation and distribution system -- Appraisal
232 and vote required -- Manner of conducting the election.
233 (1) (a) Before selling or leasing in their entirety the works and plant constructed,
234 purchased, or used by the municipality for the purpose of generating or distributing electrical
235 energy for light, heat, or power purposes, the municipal legislative body shall:
236 (i) cause an appraisal of the property proposed to be sold or leased to be made under
237 the supervision of three resident taxpayers of the municipality, to be appointed by the
238 municipal legislative body; and
239 (ii) provide for submitting to the registered voters of the municipality the question of
240 the sale or lease of the property, at the next general election or at a special election called for
241 that purpose.
242 (b) The value of the property determined in an appraisal under Subsection (1)(a)(i)
243 shall include all items that the municipal legislative body determines to add value to or subtract
244 value from the property.
245 (2) (a) Subject to Subsection (2)(b), each election under Subsection (1)(a)(ii) shall be
246 called and conducted in the same manner as provided by statute for the issue of bonds in
247 Section 10-7-8 , the necessary changes in the form of the ballot being made.
248 (b) Each notice of election required under Section [
249 held under Subsection (1)(a)(ii) shall include:
250 (i) a summary of the appraisal made under Subsection (1)(a)(i), including the amount
251 of the appraisal; and
252 (ii) the name of each bidder who submitted a bid that was opened and considered under
253 Section 10-7-17 and the amount of each bid.
254 (3) In the process of selling or leasing in their entirety the municipality's electrical
255 works and plant, a municipal legislative body may take whatever action it considers appropriate
256 and in the sequence it considers appropriate, subject to the requirements of this section and
257 Sections 10-7-16 and 10-7-17 .
258 Section 4. Section 10-18-302 is amended to read:
259 10-18-302. Bonding authority.
260 (1) In accordance with Title 11, Chapter 14, [
261 Bonding Act, the legislative body of a municipality may by resolution determine to issue one or
262 more revenue bonds or general obligation bonds to finance the capital costs for facilities
263 necessary to provide to subscribers:
264 (a) a cable television service; or
265 (b) a public telecommunications service.
266 (2) The resolution described in Subsection (1) shall:
267 (a) describe the purpose for which the indebtedness is to be created; and
268 (b) specify the dollar amount of the one or more bonds proposed to be issued.
269 (3) (a) A revenue bond issued under this section shall be secured and paid for:
270 (i) from the revenues generated by the municipality from providing:
271 (A) cable television services with respect to revenue bonds issued to finance facilities
272 for the municipality's cable television services; and
273 (B) public telecommunications services with respect to revenue bonds issued to finance
274 facilities for the municipality's public telecommunications services; and
275 (ii) notwithstanding Subsection (3)(b) and Subsection 10-18-303 (3)(a), from revenues
276 generated under Title 59, Chapter 12, Sales and Use Tax Act, if:
277 (A) notwithstanding Subsection [
278 Subsections (4) and (5), the revenue bond is approved by the registered voters in an election
279 held:
280 (I) except as provided in Subsection (3)(a)(ii)(A)(II), pursuant to the provisions of Title
281 11, Chapter 14, [
282 elections; and
283 (II) notwithstanding Subsection [
284 (B) the revenues described in this Subsection (3)(a)(ii) are pledged as security for the
285 revenue bond; and
286 (C) the municipality or municipalities annually appropriate the revenues described in
287 this Subsection (3)(a)(ii) to secure and pay the revenue bond issued under this section.
288 (b) Except as provided in Subsection (3)(a)(ii), a municipality may not pay the
289 origination, financing, or other carrying costs associated with the one or more revenue bonds
290 issued under this section from the general funds or other enterprise funds of the municipality.
291 (4) (a) As used in this Subsection (4), "municipal entity" means an entity created
292 pursuant to an agreement:
293 (i) under Title 11, Chapter 13, Interlocal Cooperation Act; and
294 (ii) to which a municipality is a party.
295 (b) The requirements of Subsection (3)(a)(ii)(A) do not apply to a municipality or
296 municipal entity that issues revenue bonds, or to a municipality that is a member of a municipal
297 entity that issues revenue bonds, if:
298 (i) on or before March 2, 2004, the municipality that is issuing revenue bonds or that is
299 a member of a municipal entity that is issuing revenue bonds has published the first notice
300 described in Subsection (4)(b)(iii);
301 (ii) on or before April 15, 2004, the municipality that is issuing revenue bonds or that
302 is a member of a municipal entity that is issuing revenue bonds makes the decision to pledge
303 the revenues described in Subsection (3)(a)(ii) as security for the revenue bonds described in
304 this Subsection (4)(b)(ii);
305 (iii) the municipality that is issuing the revenue bonds or the municipality that is a
306 member of the municipal entity that is issuing the revenue bonds has:
307 (A) held a public hearing for which public notice was given by publication of the
308 notice in a newspaper published in the municipality or in a newspaper of general circulation
309 within the municipality for two consecutive weeks, with the first publication being not less
310 than 14 days before the public hearing; and
311 (B) the notice identifies:
312 (I) that the notice is given pursuant to Title 11, Chapter 14, [
313 Local Government Bonding Act;
314 (II) the purpose for the bonds to be issued;
315 (III) the maximum amount of the revenues described in Subsection (3)(a)(ii) that will
316 be pledged in any fiscal year;
317 (IV) the maximum number of years that the pledge will be in effect; and
318 (V) the time, place, and location for the public hearing;
319 (iv) the municipal entity that issues revenue bonds:
320 (A) adopts a final financing plan; and
321 (B) in accordance with Title 63, Chapter 2, Government Records Access and
322 Management Act, makes available to the public at the time the municipal entity adopts the final
323 financing plan:
324 (I) the final financing plan; and
325 (II) all contracts entered into by the municipal entity, except as protected by Title 63,
326 Chapter 2, Government Records Access and Management Act;
327 (v) any municipality that is a member of a municipal entity described in Subsection
328 (4)(b)(iv):
329 (A) not less than 30 calendar days after the municipal entity complies with Subsection
330 (4)(b)(iv)(B), holds a final public hearing;
331 (B) provides notice, at the time the municipality schedules the final public hearing, to
332 any person who has provided to the municipality a written request for notice; and
333 (C) makes all reasonable efforts to provide fair opportunity for oral testimony by all
334 interested parties; and
335 (vi) except with respect to a municipality that issued bonds prior to March 1, 2004, not
336 more than 50% of the average annual debt service of all revenue bonds described in this section
337 to provide service throughout the municipality or municipal entity may be paid from the
338 revenues described in Subsection (3)(a)(ii).
339 (5) On or after July 1, 2007, the requirements of Subsection (3)(a)(ii)(A) do not apply
340 to a municipality that issues revenue bonds if:
341 (a) the municipality that is issuing the revenue bonds has:
342 (i) held a public hearing for which public notice was given by publication of the notice
343 in a newspaper published in the municipality or in a newspaper of general circulation within
344 the municipality for two consecutive weeks, with the first publication being not less than 14
345 days before the public hearing; and
346 (ii) the notice identifies:
347 (A) that the notice is given pursuant to Title 11, Chapter 14, [
348 Local Government Bonding Act;
349 (B) the purpose for the bonds to be issued;
350 (C) the maximum amount of the revenues described in Subsection (3)(a)(ii) that will be
351 pledged in any fiscal year;
352 (D) the maximum number of years that the pledge will be in effect; and
353 (E) the time, place, and location for the public hearing; and
354 (b) except with respect to a municipality that issued bonds prior to March 1, 2004, not
355 more than 50% of the average annual debt service of all revenue bonds described in this section
356 to provide service throughout the municipality or municipal entity may be paid from the
357 revenues described in Subsection (3)(a)(ii).
358 (6) A municipality that issues bonds pursuant to this section may not make or grant any
359 undue or unreasonable preference or advantage to itself or to any private provider of:
360 (a) cable television services; or
361 (b) public telecommunications services.
362 Section 5. Section 11-8-2 is amended to read:
363 11-8-2. State loans for sewage treatment facilities -- Rules of Water Quality
364 Board.
365 The Department of Environmental Quality is authorized to negotiate loans to political
366 subdivisions and municipal authorities for the construction, reconstruction, and improvement
367 of municipal sewage treatment facilities. All loans shall be made pursuant to rules made by the
368 Water Quality Board and not exceed 25% of the total cost of the facility. The loans shall be
369 authorized by the political subdivision involved pursuant to Title 11, Chapter 14, [
370
371 pertaining to indebtedness of political subdivisions.
372 Section 6. Section 11-13-205 is amended to read:
373 11-13-205. Agreement by public agencies to create a new entity to own sewage
374 and wastewater facilities -- Powers and duties of new entities -- Validation of previously
375 created entities.
376 (1) It is declared that the policy of the state is to assure the health, safety, and welfare
377 of its citizens, that adequate sewage and wastewater treatment plants and facilities are essential
378 to the well-being of the citizens of the state and that the acquisition of adequate sewage and
379 wastewater treatment plants and facilities on a regional basis in accordance with federal law
380 and state and federal water quality standards and effluent standards in order to provide services
381 to public agencies is a matter of statewide concern and is in the public interest. It is found and
382 declared that there is a statewide need to provide for regional sewage and wastewater treatment
383 plants and facilities, and as a matter of express legislative determination it is declared that the
384 compelling need of the state for construction of regional sewage and wastewater treatment
385 plants and facilities requires the creation of entities under the Interlocal Cooperation Act to
386 own, construct, operate, and finance sewage and wastewater treatment plants and facilities; and
387 it is the purpose of this law to provide for the accomplishment thereof in the manner provided
388 in this section.
389 (2) Any two or more public agencies of the state may also agree to create a separate
390 legal or administrative entity to accomplish and undertake the purpose of owning, acquiring,
391 constructing, financing, operating, maintaining, and repairing regional sewage and wastewater
392 treatment plants and facilities.
393 (3) A separate legal or administrative entity created in the manner provided herein is
394 considered to be a political subdivision and body politic and corporate of the state with power
395 to carry out and effectuate its corporate powers, including, but not limited to, the power:
396 (a) to adopt, amend, and repeal rules, bylaws, and regulations, policies, and procedures
397 for the regulation of its affairs and the conduct of its business, to sue and be sued in its own
398 name, to have an official seal and power to alter that seal at will, and to make and execute
399 contracts and all other instruments necessary or convenient for the performance of its duties
400 and the exercise of its powers and functions under the Interlocal Cooperation Act;
401 (b) to own, acquire, construct, operate, maintain, repair, or cause to be constructed,
402 operated, maintained, and repaired one or more regional sewage and wastewater treatment
403 plants and facilities, all as shall be set forth in the agreement providing for its creation;
404 (c) to borrow money, incur indebtedness and issue revenue bonds, notes or other
405 obligations payable solely from the revenues and receipts derived from all or a portion of the
406 regional sewage and wastewater treatment plants and facilities which it owns, operates, and
407 maintains, such bonds, notes, or other obligations to be issued and sold in compliance with the
408 provisions of Title 11, Chapter 14, [
409 (d) to enter into agreements with public agencies and other parties and entities to
410 provide sewage and wastewater treatment services on such terms and conditions as it considers
411 to be in the best interests of its participants; and
412 (e) to acquire by purchase or by exercise of the power of eminent domain, any real or
413 personal property in connection with the acquisition and construction of any sewage and
414 wastewater treatment plant and all related facilities and rights-of-way which it owns, operates,
415 and maintains.
416 (4) The provisions of Part 3, Project Entity Provisions, do not apply to a legal or
417 administrative entity created for regional sewage and wastewater treatment purposes under this
418 section.
419 (5) All proceedings previously had in connection with the creation of any legal or
420 administrative entity pursuant to this chapter, and all proceedings previously had by any such
421 entity for the authorization and issuance of bonds of the entity are validated, ratified, and
422 confirmed; and these entities are declared to be validly created interlocal cooperation entities
423 under this chapter. These bonds, whether previously or subsequently issued pursuant to these
424 proceedings, are validated, ratified, and confirmed and declared to constitute, if previously
425 issued, or when issued, the valid and legally binding obligations of the entity in accordance
426 with their terms. Nothing in this section shall be construed to affect or validate any bonds, or
427 the organization of any entity, the legality of which is being contested at the time this act takes
428 effect.
429 (6) (a) The governing body of each entity created under this section on or after May 4,
430 1998, shall, within 30 days of the creation, file a written notice of the creation with the State
431 Tax Commission.
432 (b) Each written notice required under Subsection (6)(a) shall:
433 (i) be accompanied by:
434 (A) a copy of the agreement creating the entity; and
435 (B) a map or plat that delineates a metes and bounds description of the area affected
436 and evidence that the information has been recorded by the county recorder; and
437 (ii) contain a certification by the governing body that all necessary legal requirements
438 relating to the creation have been completed.
439 Section 7. Section 11-13-219 is amended to read:
440 11-13-219. Publication of resolutions or agreements -- Contesting legality of
441 resolution or agreement.
442 (1) As used in this section:
443 (a) "Enactment" means:
444 (i) a resolution adopted or proceedings taken by a governing body under the authority
445 of this chapter, and includes a resolution, indenture, or other instrument providing for the
446 issuance of bonds; and
447 (ii) an agreement or other instrument that is authorized, executed, or approved by a
448 governing body under the authority of this chapter.
449 (b) "Governing body" means:
450 (i) the legislative body of a public agency; and
451 (ii) the governing body of an interlocal entity created under this chapter.
452 (c) "Notice of bonds" means the notice authorized by Subsection (3)(d).
453 (d) "Notice of agreement" means the notice authorized by Subsection (3)(c).
454 (e) "Official newspaper" means the newspaper selected by a governing body under
455 Subsection (4)(b) to publish its enactments.
456 (2) Any enactment taken or made under the authority of this chapter is not subject to
457 referendum.
458 (3) (a) A governing body need not publish any enactment taken or made under the
459 authority of this chapter.
460 (b) A governing body may provide for the publication of any enactment taken or made
461 by it under the authority of this chapter according to the publication requirements established
462 by this section.
463 (c) (i) If the enactment is an agreement, document, or other instrument, or a resolution
464 or other proceeding authorizing or approving an agreement, document, or other instrument, the
465 governing body may, instead of publishing the full text of the agreement, resolution, or other
466 proceeding, publish a notice of agreement containing:
467 (A) the names of the parties to the agreement;
468 (B) the general subject matter of the agreement;
469 (C) the term of the agreement;
470 (D) a description of the payment obligations, if any, of the parties to the agreement;
471 and
472 (E) a statement that the resolution and agreement will be available for review at the
473 governing body's principal place of business during regular business hours for 30 days after the
474 publication of the notice of agreement.
475 (ii) The governing body shall make a copy of the resolution or other proceeding and a
476 copy of the contract available at its principal place of business during regular business hours
477 for 30 days after the publication of the notice of agreement.
478 (d) If the enactment is a resolution or other proceeding authorizing the issuance of
479 bonds, the governing body may, instead of publishing the full text of the resolution or other
480 proceeding and the documents pertaining to the issuance of bonds, publish a notice of bonds
481 that contains the information described in Subsection [
482 (4) (a) If the governing body chooses to publish an enactment, notice of bonds, or
483 notice of agreement, the governing body shall comply with the requirements of this Subsection
484 (4).
485 (b) If there is more than one newspaper of general circulation, or more than one
486 newspaper, published within the boundaries of the governing body, the governing body may
487 designate one of those newspapers as the official newspaper for all publications made under
488 this section.
489 (c) (i) The governing body shall publish the enactment, notice of bonds, or notice of
490 agreement in:
491 (A) the official newspaper;
492 (B) the newspaper published in the municipality in which the principal office of the
493 governmental entity is located; or
494 (C) if no newspaper is published in that municipality, in a newspaper having general
495 circulation in the municipality.
496 (ii) The governing body may publish the enactment, notice of bonds, or notice of
497 agreement in a newspaper of general circulation or in a newspaper that is published within the
498 boundaries of any public agency that is a party to the enactment or agreement.
499 (5) (a) Any person in interest may contest the legality of an enactment or any action
500 performed or instrument issued under the authority of the enactment for 30 days after the
501 publication of the enactment, notice of bonds, or notice of agreement.
502 (b) After the 30 days have passed, no one may contest the regularity, formality, or
503 legality of the enactment or any action performed or instrument issued under the authority of
504 the enactment for any cause whatsoever.
505 Section 8. Section 11-14-101 is enacted to read:
506
507
508 11-14-101. Title.
509 This chapter is known as the "Local Government Bonding Act."
510 Section 9. Section 11-14-102 is enacted to read:
511 11-14-102. Definitions.
512 For the purpose of this chapter:
513 (1) "Bond" means any bond authorized to be issued under this chapter, including
514 municipal bonds.
515 (2) "Election results" means the same as "election results" as defined in Section
516 20A-1-102 .
517 (3) (a) "Local political subdivision" includes:
518 (i) cities;
519 (ii) towns;
520 (iii) counties;
521 (iv) school districts;
522 (v) public transit districts;
523 (vi) improvement districts operating under the authority of Title 17A, Chapter 2, Part
524 3, County Improvement Districts for Water, Sewage, Flood Control, Electric and Gas;
525 (vii) special service districts operating under the authority of Title 17A, Chapter 2, Part
526 13, Utah Special Service District Act;
527 (viii) metropolitan water districts operating under the authority of Title 17A, Chapter 2,
528 Part 8, Metropolitan Water District Act;
529 (ix) irrigation districts operating under the authority of Title 17A, Chapter 2, Part 7,
530 Irrigation District Act;
531 (x) water conservancy districts operating under the authority of Title 17A, Chapter 2,
532 Part 14, Water Conservancy Districts; and
533 (xi) regional service areas operating under the authority of Title 17A, Chapter 2, Part
534 18, Regional Service Area Act.
535 (b) "Local political subdivision" does not include the state and its institutions.
536 Section 10. Section 11-14-103 is enacted to read:
537 11-14-103. Bond issues authorized -- Purposes -- Use of bond proceeds.
538 (1) Any local political subdivision may, in the manner and subject to the limitations
539 and restrictions contained in this chapter, issue its negotiable bonds for the purpose of paying
540 all or part of the cost of acquiring, improving, or extending any one or more improvements,
541 facilities, or property that the local political subdivision is authorized by law to acquire.
542 (2) Any local political subdivision may also issue such bonds for the acquisition of or
543 the acquisition of an interest in any one or more or combination of the following types of
544 improvements, facilities, or property to be owned by the local political subdivision or to be
545 owned jointly by two or more local political subdivisions, or for the improvement or extension
546 of any such wholly or jointly owned facility or property:
547 (a) public buildings of every nature, including without limitation, offices, courthouses,
548 jails, fire, police and sheriff's stations, detention homes, and any other buildings to
549 accommodate or house lawful activities of a local political subdivision;
550 (b) waterworks, irrigation systems, water systems, dams, reservoirs, water treatment
551 plants, and any other improvements, facilities, or property used in connection with the
552 acquisition, storage, transportation, and supplying of water for domestic, industrial, irrigation,
553 recreational, and other purposes and preventing pollution of water;
554 (c) sewer systems, sewage treatment plants, incinerators, and other improvements,
555 facilities, or property used in connection with the collection, treatment, and disposal of sewage,
556 garbage, or other refuse;
557 (d) drainage and flood control systems, storm sewers, and any other improvements,
558 facilities, or property used in connection with the collection, transportation, or disposal of
559 water;
560 (e) recreational facilities of every kind, including without limitation, athletic and play
561 facilities, playgrounds, athletic fields, gymnasiums, public baths, swimming pools, camps,
562 parks, picnic grounds, fairgrounds, golf courses, zoos, boating facilities, tennis courts,
563 auditoriums, stadiums, arenas, and theaters;
564 (f) convention centers, sports arenas, auditoriums, theaters, and other facilities for the
565 holding of public assemblies, conventions, and other meetings;
566 (g) roads, bridges, viaducts, tunnels, sidewalks, curbs, gutters, and parking buildings,
567 lots, and facilities;
568 (h) airports, landing fields, landing strips, and air navigation facilities;
569 (i) educational facilities, including without limitation, schools, gymnasiums,
570 auditoriums, theaters, museums, art galleries, libraries, stadiums, arenas, and fairgrounds;
571 (j) hospitals, convalescent homes, and homes for the aged or indigent; and
572 (k) electric light works, electric generating systems, and any other improvements,
573 facilities, or property used in connection with the generation and acquisition of electricity for
574 these local political subdivisions and transmission facilities and substations if they do not
575 duplicate transmission facilities and substations of other entities operating in the state prepared
576 to provide the proposed service unless these transmission facilities and substations proposed to
577 be constructed will be more economical to these local political subdivisions.
578 (3) Any such improvement, facility, or property need not lie within the limits of the
579 local political subdivision.
580 (4) A cost under Subsection (1) may include:
581 (a) the cost of equipment and furnishings for such improvements, facilities, or
582 property;
583 (b) all costs incident to the authorization and issuance of bonds, including engineering,
584 legal, and fiscal advisers' fees;
585 (c) costs incident to the issuance of bond anticipation notes, including interest to accrue
586 on bond anticipation notes;
587 (d) interest estimated to accrue on the bonds during the period to be covered by the
588 construction of the improvement, facility, or property and for 12 months after that period; and
589 (e) other amounts which the legislative body finds necessary to establish bond reserve
590 funds and to provide working capital related to the improvement, facility, or property.
591 Section 11. Section 11-14-201 , which is renumbered from Section 11-14-2 is
592 renumbered and amended to read:
593
594 [
595 Resolution and notice.
596 (1) [
597 subdivision who wishes to issue bonds under the authority granted in Section [
598 11-14-103 shall [
599 least 75 days before the date of election:
600 (a) approve a resolution submitting the question of the issuance of the bonds to the
601 voters of the local political subdivision; and
602 (b) provide a copy of the resolution to:
603 (i) the lieutenant governor; and
604 (ii) the election officer, as defined in Section 20A-1-102 , charged with conducting the
605 election.
606 [
607
608
609 [
610
611 [
612 [
613 [
614 (2) The local political subdivision may not issue the bonds unless the majority of the
615 qualified voters of the local political subdivision who vote on the bond proposition approve the
616 issuance of the bonds.
617 (3) Nothing in this section requires an election for the issuance of:
618 (a) refunding bonds; or
619 (b) other bonds not required by law to be voted on at an election.
620 [
621 include a ballot proposition, in substantially final form, that complies with the requirements of
622 Subsection 11-14-206 (2).
623 [
624 [
625 [
626 [
627
628
629 [
630
631
632
633
634 Section 12. Section 11-14-202 , which is renumbered from Section 11-14-3 is
635 renumbered and amended to read:
636 [
637 (1) (a) [
638 (i) notice of the election [
639 consecutive weeks in a newspaper designated in accordance with Section [
640 11-14-316 ; and
641 (ii) the first publication [
642 the election.
643 [
644 (b) Notice shall be published in a newspaper [
645
646 having general circulation in the [
647 [
648
649
650
651
652
653 [
654
655 [
656
657 [
658
659 (b) (i) In a [
660 where there is no newspaper [
661 body may require that notice of a bond election be given by posting in lieu of the publication
662 requirements of Subsection (1).
663 (ii) When the [
664
665 ensure that notice of the bond election is posted in at least five public places in the [
666
667 [
668 [
669 (a) the date and place of the election;
670 (b) the hours during which the polls will be open; and
671 [
672
673 (c) the title and text of the ballot proposition.
674 [
675 [
676 Section 13. Section 11-14-203 , which is renumbered from Section 11-14-4 is
677 renumbered and amended to read:
678 [
679 Combining precincts.
680 [
681 [
682 [
683
684 [
685
686 [
687
688
689 [
690
691 (1) (a) The local political subdivision shall ensure that bond elections are conducted
692 and administered according to the procedures set forth in this chapter and the sections of the
693 Election Code specifically referenced by this chapter.
694 (b) When a local political subdivision complies with those procedures, there is a
695 presumption that the bond election was properly administered.
696 (2) (a) [
697 may be submitted [
698 [
699 special election called for the purpose on a date authorized by Section 20A-1-204 .
700 [
701 submitted, at the Western States Presidential Primary election established in Title 20A, Chapter
702 9, Part 8, Western States Presidential Primary.
703 [
704
705 [
706
707
708
709 (3) (a) The bond election shall be conducted and administered by the election officer
710 designated in Sections 20A-1-102 and 20A-5-400.5 .
711 (b) (i) The duties of the election officer shall be governed by Title 20A, Chapter 5, Part
712 4, Election Officer's Duties.
713 (ii) The publishing requirement under Subsection 20A-5-405 (1)(j)(iii) does not apply
714 when notice of a bond election has been provided according to the requirements of Section
715 11-14-202 .
716 (c) The hours during which the polls are to be open shall be consistent with Section
717 20A-1-302 .
718 (d) The appointment and duties of election judges shall be governed by Title 20A,
719 Chapter 5, Part 6, Election Judges.
720 (e) General voting procedures shall be conducted according to the requirements of Title
721 20A, Chapter 3, Voting.
722 (f) The designation of election crimes and offenses, and the requirements for the
723 prosecution and adjudication of those crimes and offenses are set forth in Title 20A, Election
724 Code.
725 [
726 election is being held in the local political subdivision calling the bond election, voting
727 precincts may be combined for purposes of bond elections[
728
729 vote outside the county in which [
730 (5) When a bond election is being held on the same day as any other election held in a
731 local political subdivision calling the bond election, or in some part of that local political
732 subdivision, the polling places and election officials serving for the other election may also
733 serve as the polling places and election officials for the bond election, so long as no voter is
734 required to vote outside the county in which the voter resides.
735 Section 14. Section 11-14-204 , which is renumbered from Section 11-14-6 is
736 renumbered and amended to read:
737 [
738 [
739
740
741
742 [
743
744 [
745
746 [
747
748
749 [
750 [
751 [
752
753 [
754
755
756
757
758
759
760
761
[____________________________________________________________]
762 [
763
[____________________________________________________________]
764 [
765 [
766
767
768
769
770
771
[____________________________________________________________]
772 [
773 [
774 [
775
776
777
778
779 (1) Any person's qualifications to vote at a bond election may be challenged according
780 to the procedures and requirements of Sections 20A-3-105.5 and 20A-3-202 .
781 [
782 grounds that [
783 (a) it [
784
785 ineligible voters voted in sufficient numbers to change the result [
786 election[
787
788
789 (b) the complaint is filed before the expiration of the time period permitted for contests
790 in Subsection 20A-4-403 (3).
791 (3) The votes cast by the voters shall be accepted as having been legally cast for
792 purposes of determining the outcome of the election, unless the court in a bond election contest
793 [
794 Section 15. Section 11-14-205 , which is renumbered from Section 11-14-7 is
795 renumbered and amended to read:
796 [
797 supplied by clerk.
798 (1) (a) Voter registration shall be administered according to the requirements of Title
799 20A, Chapter 2, Voter Registration.
800 [
801 special registration of voters for a bond election [
802
803 [
804
805
806
807 [
808
809
810
811
812
813 (2) The county clerk of each county in which a [
814 subdivision holding the bond election is located shall [
815
816
817 Section 20A-5-401 .
818 [
819
820
821
822 (3) The official register's failure to identify those voters not residing in the local
823 political subdivision holding the bond election, or any inaccuracy in [
824
825 election.
826 Section 16. Section 11-14-206 , which is renumbered from Section 11-14-10 is
827 renumbered and amended to read:
828 [
829 contents.
830 [
831
832 (1) At least 75 days before the election, the legislative body shall prepare and submit to
833 the election officer:
834 (a) a ballot title for the bond proposition that includes the name of the local political
835 subdivision issuing the bonds and the word "bond" or an identification of the type of bonds;
836 and
837 (b) a ballot proposition that meets the requirements of Subsection (2).
838 (2) (a) The ballot proposition shall include:
839 (i) the maximum principal amount of the bonds[
840 (ii) the maximum number of years [
841
842 (iii) the general purpose for which [
843 (b) The purpose of the bonds may be stated in general terms and need not specify the
844 particular projects for which the bonds are to be issued or the specific amount of bond proceeds
845 to be expended for each project.
846 (c) If the bonds are to be payable in part from tax proceeds and in part from the
847 operating revenues of the [
848 [
849
850 indicate those payment sources, but need not specify how the bonds are to be divided between
851 those sources of payment.
852 (d) (i) The bond proposition shall be followed by the words, "For the issuance of
853 bonds" and "Against the issuance of bonds," with appropriate boxes in which the voter may
854 indicate his choice.
855 (ii) Nothing in Subsection (2)(d)(i) prohibits the addition of descriptive information
856 about the bonds.
857 (3) If a bond [
858
859 political subdivision calling the bond election, the bond [
860 may be combined with the candidate ballot in a manner consistent with Section 20A-6-301 ,
861 20A-6-303 , or 20A-6-402 .
862 [
863
864 (4) The ballot form shall comply with the requirements of Title 20A, Chapter 6, Ballot
865 Form.
866 Section 17. Section 11-14-207 , which is renumbered from Section 11-14-11 is
867 renumbered and amended to read:
868 [
869 [
870
871
872
873
874
875 (1) (a) Following the election officer's inspection and count of the ballots in accordance
876 with the procedures of Title 20A, Chapter 4, Part 1, Counting Ballots and Tabulating Results,
877 and Part 2, Transmittal and Disposition of Ballots and Election Returns, the legislative body
878 shall meet and canvass the election results.
879 (b) (i) The legislative body of the local political subdivision is the board of canvassers
880 for the bond proposition.
881 (ii) The board of canvassers shall always consist of a quorum of the legislative body.
882 (c) The canvass of the election [
883
884 days after the election.
885 (d) The canvass of election results shall be conducted according to the procedures and
886 requirements of Subsection 20A-4-301 (3) and Sections 20A-4-302 and 20A-4-303 .
887 (e) If a bond proposition is submitted to a vote on the same day as any other election
888 held in the local political subdivision calling the bond election, the legislative body shall
889 coordinate the date of its canvass with any other board of canvassers appointed under Section
890 20A-4-301 .
891 (2) (a) After the canvass of election returns, the legislative body shall [
892 its minutes:
893 (i) an official finding as to the total number of votes cast, the number of affirmative
894 votes, the number of negative votes, [
895 challenged voters [
896 provisional ballot, and the number of provisional ballots that were counted; and [
897 (ii) an official finding that the bond proposition [
898
899
900 (b) The legislative body need not file with the county clerk or with any other official:
901 (i) any statement or certificate of [
902 (ii) any affidavit with respect to the facts pertaining to the election [
903 (iii) any affidavit pertaining to the indebtedness and valuation of the municipality [
904
905 (3) The [
906 the qualified [
907 bond proposition[
908 conclusive in any action or proceeding involving the validity of the election or involving the
909 determination or declaration of the result [
910 after the expiration of the period provided in [
911
912
913 Section 18. Section 11-14-208 is enacted to read:
914 11-14-208. Contest of election results -- Procedure.
915 (1) (a) Any person wishing to contest the results of a bond election shall comply with
916 the procedures and requirements of Title 20A, Chapter 4, Part 4, Recounts and Election
917 Contests.
918 (b) The local political subdivision calling the election shall be regarded as the
919 defendant.
920 (2) Unless the complaint is filed within the period prescribed in Subsection
921 20A-4-403 (3), a court may not:
922 (a) allow an action contesting the bond election to be maintained; or
923 (b) set aside or hold the bond election invalid.
924 Section 19. Section 11-14-301 , which is renumbered from Section 11-14-13 is
925 renumbered and amended to read:
926
927 [
928 indebtedness under constitutional and statutory limitations.
929 (1) If the [
930 and no contest has been filed, or if [
931 favorably terminated, the [
932 the election.
933 (2) It is not necessary that all of the bonds be issued at one time, but [
934
935 election. [
936 (3) (a) Bonds approved by the voters may not be issued to an amount which will cause
937 the indebtedness of the [
938 the Utah Constitution or statutes.
939 (b) In computing the amount of indebtedness [
940 constitutional limitations, the constitutionally permitted percentage shall be applied to the fair
941 market value, as defined under Section 59-2-102 , of the taxable property in the [
942 local political subdivision as computed from the last equalized assessment rolls for state and
943 county purposes prior to the incurring of the additional indebtedness, except that in the case of
944 cities the last equalized assessment rolls for city purposes shall be controlling.
945 (c) In determining the fair market value of the taxable property in the [
946 local political subdivision as provided in this section, the value of all tax equivalent property,
947 as defined in Section 59-3-102 , shall be included as a part of the total fair market value of
948 taxable property in the [
949 Chapter 3, the Tax Equivalent Property Act.
950 (4) Bonds of improvement districts issued in a manner that they are payable solely
951 from the revenues to be derived from the operation of the facilities of the district may not be
952 included as bonded indebtedness for the purposes of the computation.
953 (5) Where bonds are issued by a city, town, or county payable solely from revenues
954 derived from the operation of revenue-producing facilities of the city, town, or county, or
955 payable solely from a special fund into which are deposited excise taxes levied and collected by
956 the city, town, or county, or excise taxes levied by the state and rebated pursuant to law to the
957 city, town, or county, or any combination of those excise taxes, the bonds shall be included as
958 bonded indebtedness of the city, town, or county only to the extent required by the Utah
959 Constitution, and any bonds not so required to be included as bonded indebtedness of the city,
960 town, or county need not be authorized at an election, except as otherwise provided by the Utah
961 Constitution, the bonds being hereby expressly excluded from the election requirement of
962 Section [
963 (6) A bond election is not void [
964 election exceeded the limitation applicable to the [
965 the time of holding the election, but the bonds may be issued from time to time in an amount
966 within the applicable limitation at the time the bonds are issued.
967 Section 20. Section 11-14-302 , which is renumbered from Section 11-14-14 is
968 renumbered and amended to read:
969 [
970 Interest -- Payment -- Redemption -- Combining issues -- Sale -- Financing plan.
971 (1) Bonds issued under this chapter shall be authorized by resolution of the [
972 legislative body, shall be fully negotiable for all purposes, may be made registrable as to
973 principal alone or as to principal and interest, shall mature at such time or times not more than
974 40 years from their date, shall bear interest at such rate or rates, if any, shall be payable at such
975 place or places, shall be in such form, shall be executed in such manner, may be made
976 redeemable prior to maturity at such times and on such terms, shall be sold in such manner and
977 at such prices, either at, in excess of, or below face value, and generally shall be issued in such
978 manner and with such details as may be provided by resolution; it being the express intention
979 of the legislature that interest rate limitations elsewhere appearing in the laws of Utah shall not
980 apply to nor limit the rate of interest on bonds issued under this chapter. The resolution shall
981 specify either the rate or rates of interest, if any, on the bonds or specify the method by which
982 the interest rate or rates on the bonds may be determined while the bonds are outstanding. If
983 the resolution specifies a method by which interest on the bonds may be determined, the
984 resolution shall also specify the maximum rate of interest the bonds may bear. Bonds voted for
985 different purposes by separate propositions at the same or different bond elections may in the
986 discretion of the [
987 bonds. The resolution providing for this combination and the printed bonds for the combined
988 issue shall separately set forth the amount being issued for each of the purposes provided for in
989 each proposition submitted to the electors. If the [
990 retained a fiscal agent to assist and advise it with respect to the bonds and the fiscal agent has
991 received or is to receive a fee for such services, the bonds may be sold to the fiscal agent but
992 only if the sale is made pursuant to a sealed bid submitted by the fiscal agent at an advertised
993 public sale.
994 (2) (a) All bonds shall be paid by the treasurer of the [
995 subdivision or the treasurer's duly authorized agent on their respective maturity dates or on the
996 dates fixed for the bonds redemption. All bond coupons, other than coupons cancelled because
997 of the redemption of the bonds to which they apply, shall similarly be paid on their respective
998 dates or as soon thereafter as the bonds or coupons are surrendered.
999 (b) Upon payment of a bond or coupon, the treasurer of the [
1000 political subdivision or the treasurer's duly authorized agent, shall perforate the bond or coupon
1001 with a device suitable to indicate payment.
1002 (c) Any bonds or coupons which have been paid or cancelled may be destroyed by the
1003 treasurer of the [
1004 agent.
1005 (3) Bonds, bond anticipation notes, or tax anticipation notes with maturity dates of one
1006 year or less may be authorized by a [
1007 pursuant to a plan of financing adopted by the [
1008 financing shall specify the terms and conditions under which the bonds or notes may be issued,
1009 sold, and delivered, the officers of the [
1010 issue the bonds or notes, the maximum amount of bonds or notes which may be outstanding at
1011 any one time, the source or sources of payment of the bonds or notes, and all other details
1012 necessary for issuance of the bonds or notes. Subject to the Constitution, the [
1013 legislative body of the [
1014 financing the terms and conditions of agreements which may be entered into by the
1015 [
1016 standby letters of credit to secure the bonds or notes, including payment from any legally
1017 available source of fees, charges, or other amounts coming due under the agreements entered
1018 into by the [
1019 Section 21. Section 11-14-303 , which is renumbered from Section 11-14-14.5 is
1020 renumbered and amended to read:
1021 [
1022 of political subdivisions exempt from taxation except corporate franchise tax.
1023 All bonds, notes, or other evidences of indebtedness issued under this chapter or under
1024 any other law authorizing the issuance of bonds, notes, or indebtedness by any county, city,
1025 town, school district, public transit district, improvement district, special service district,
1026 metropolitan water district, water conservancy district, irrigation district, or any other political
1027 subdivision now existing or subsequently created under the laws of Utah (including, but not
1028 limited to, bonds payable solely from special assessments and tax anticipation indebtedness)
1029 and the interest on them shall be exempt from all taxation in this state, except for the corporate
1030 franchise tax.
1031 Section 22. Section 11-14-304 , which is renumbered from Section 11-14-15 is
1032 renumbered and amended to read:
1033 [
1034 Validity of signed bonds.
1035 (1) If the use of a facsimile signature is authorized by the body empowered by law to
1036 authorize the issuance of the bonds or other obligations of any agency, instrumentality, or
1037 institution of this state or of any municipal corporation, political subdivision, improvement
1038 district, taxing district, or other governmental entity within the state, whether or not issued
1039 under this chapter, any officer so authorized may execute, authenticate, certify, or endorse, or
1040 cause to be executed, authenticated, certified, or endorsed the bond or other obligation, or any
1041 certificate required to be executed on the back thereof, with a facsimile signature in lieu of his
1042 manual signature if at least one signature required or permitted to be placed on the face thereof
1043 shall be manually subscribed. Upon compliance with this chapter by the authorized officer, his
1044 facsimile signature has the same legal effect as his manual signature. When any seal is
1045 required in the execution, authentication, certification, or endorsement of the bond or other
1046 obligation, or any certificate required to be executed on the back thereof, the authorized officer
1047 may cause the seal to be printed, engraved, lithographed, stamped, or otherwise placed in
1048 facsimile thereon. The facsimile seal has the same legal effect as the impression of the seal.
1049 (2) Bonds or other obligations bearing the signatures (manual or facsimile) of officers
1050 in office on the date of the execution thereof shall be valid and binding obligations
1051 notwithstanding that before the delivery thereof any or all of the persons whose signatures
1052 appear thereon shall have ceased to be officers of the [
1053 Section 23. Section 11-14-305 , which is renumbered from Section 11-14-16 is
1054 renumbered and amended to read:
1055 [
1056 obligations.
1057 (1) Unless otherwise provided by the [
1058 Registered Public Obligations Act governs and applies to all bonds, bond anticipation notes,
1059 and tax anticipation notes (bonds, bond anticipation notes and tax anticipation notes being
1060 referred to in this section as "obligations") issued in registered form. If the Registered Public
1061 Obligations Act is inapplicable to an issue of obligations, Subsection [
1062 and applies with respect to such issue.
1063 (2) Any obligations issued under this chapter may be issued in denominations of $100
1064 or any multiple of $100. The [
1065 of these obligations after issuance for obligations of larger or smaller denominations in such
1066 manner as may be provided in the authorizing resolution, provided the obligations in changed
1067 denominations shall be exchanged for the original obligations in like aggregate principal
1068 amounts and in such manner that no overlapping interest is paid; and such obligations in
1069 changed denominations shall bear interest at the same rate or rates, if any, shall mature on the
1070 same date or dates, shall be as nearly as practicable in the same form except for an appropriate
1071 recital as to the exchange, and shall in all other respects, except as to denominations and
1072 numbers, be identical with the original obligations surrendered for exchange. Where any
1073 exchange is made under this section, the obligations surrendered by the holders at the time of
1074 exchange shall be cancelled; any such exchange shall be made only at the request of the holders
1075 of the obligations to be surrendered; and the [
1076 expenses incurred in connection with such exchange, including the authorization and issuance
1077 of the new obligations, to be paid by such holders.
1078 Section 24. Section 11-14-306 , which is renumbered from Section 11-14-17 is
1079 renumbered and amended to read:
1080 [
1081 Revenue bonds -- Resolution.
1082 (1) To the extent constitutionally permissible, [
1083 subdivisions may pledge as an additional source of payment for their general obligation bonds
1084 all or any part of revenues, fees, and charges attributable to the operation or availability of
1085 facilities or may issue bonds payable solely from such revenues, fees, or charges.
1086 (2) (a) The legislative body may issue bonds payable solely from revenues, fees, or
1087 charges attributable to extensions and improvements to revenue-producing facilities.
1088 (b) If the legislative body issues bonds under Subsection (2)(a), the resolution
1089 authorizing these bonds shall set forth as a finding of the legislative body:
1090 (i) the value of the then existing facility and the value of this facility after completion
1091 of the extensions or improvements proposed to be constructed; and
1092 (ii) that portion of the revenues, fees, or charges derived from the entire facility when
1093 the contemplated extensions and improvements are completed which the value of the existing
1094 facility bears to the value of the facility after completion shall be considered to be revenue
1095 derived from the existing facility and the remainder may be set aside and pledged to the
1096 payment of the principal of and interest on the bonds and for the establishment of appropriate
1097 reserve fund or funds, and such portion shall be considered to be revenue derived exclusively
1098 from the extensions and improvements.
1099 (3) (a) Any resolution or trust indenture authorizing bonds to which such revenues,
1100 fees, or charges are pledged may contain such covenants with the future holder or holders of
1101 the bonds as to the management and operation of the affected facilities, the imposition,
1102 collection, and disposition of rates, fees, and charges for commodities and services furnished
1103 thereby, the issuance of future bonds, the creation of future liens and encumbrances against the
1104 facilities, the carrying of insurance, the keeping of books and records, the deposit and paying
1105 out of revenues, fees, or charges and bond proceeds, the appointment and duties of a trustee,
1106 and other pertinent matters as may be considered proper by the [
1107 (b) If the revenue, fee, or charge so pledged involves either sewer or water revenues,
1108 fees, or charges or both sewer and water revenues, fees, or charges, provision may be made for
1109 charges for sewer services and water services to be billed in a single bill and for the suspension
1110 of water or sewer services, or both, to any customer who shall become delinquent in the
1111 payment due for either.
1112 (c) Provision may be made for the securing of such bonds by a trust indenture, but no
1113 such indenture shall convey, mortgage, or create any lien upon property of the [
1114 local political subdivision.
1115 (d) Either the bond resolution or such trust indenture may impose in the holders of the
1116 bonds full rights to enforce the provisions thereof, and may include terms and conditions upon
1117 which the holders of the bonds or any proportion of them, or a trustee therefor, shall be entitled
1118 to the appointment of a receiver who may enter and take possession of the facility or facilities,
1119 the revenues, fees, or charges of which are so pledged, and may operate and maintain them,
1120 prescribe charges and collect, receive, and apply all revenues, fees, or charges therefrom arising
1121 in the same manner as the [
1122 Section 25. Section 11-14-307 , which is renumbered from Section 11-14-17.5 is
1123 renumbered and amended to read:
1124 [
1125 revenues.
1126 (1) To the extent constitutionally permissible, cities, towns, or counties may issue
1127 bonds payable solely from a special fund into which are to be deposited excise taxes levied and
1128 collected by the city, town, or county, or excise taxes levied by the state and rebated pursuant to
1129 law to the city, town, or county, or any combination of those excise taxes, or may pledge all or
1130 any part thereof as an additional source of payment for their general obligation bonds.
1131 (2) (a) Any resolution authorizing the issuance of bonds payable in whole or in part
1132 from the proceeds of excise tax revenues may contain covenants with the holder or holders of
1133 the bonds as to the excise tax revenues, the disposition of the excise tax revenues, the issuance
1134 of future bonds, and other pertinent matters that are considered necessary by the [
1135 legislative body to assure the marketability of those bonds, provided the covenants are not
1136 inconsistent with the provisions of this chapter.
1137 (b) The resolution may also include provisions to insure the enforcement, collection,
1138 and proper application of excise tax revenues as the [
1139 proper.
1140 (c) The proceeds of bonds payable in whole or in part from pledged class B or C road
1141 funds shall be used to construct, repair, and maintain streets and roads in accordance with
1142 Sections 72-6-108 and 72-6-110 and to fund any reserves and costs incidental to the issuance of
1143 the bonds.
1144 (d) When any bonds payable from excise tax revenues have been issued, the resolution
1145 or other enactment of the [
1146 which the tax is being collected, the obligation of the [
1147 to levy, collect, and allocate the excise tax, and to apply the revenues derived therefrom in
1148 accordance with the provisions of the authorizing resolution or other enactment, shall be
1149 irrevocable until the bonds have been paid in full as to both principal and interest, and is not
1150 subject to amendment in any manner which would impair the rights of the holders of those
1151 bonds or which would in any way jeopardize the timely payment of principal or interest when
1152 due.
1153 (3) (a) The state pledges to and agrees with the holders of any bonds issued by a city,
1154 town, or county to which the proceeds of excise taxes collected by the state and rebated to the
1155 city, town, or county are devoted or pledged as authorized in this section, that the state will not
1156 alter, impair, or limit the excise taxes in a manner that reduces the amounts to be rebated to the
1157 city, town, or county which are devoted or pledged as authorized in this section until the bonds
1158 or other securities, together with applicable interest, are fully met and discharged.
1159 (b) Nothing in this Subsection (3) precludes alteration, impairment, or limitation of
1160 excise taxes if adequate provision is made by law for the protection of the holders of the bonds.
1161 (c) Each city, town, or county may include this pledge and undertaking for the state in
1162 those bonds.
1163 (4) The outstanding bonds to which excise tax revenues have been pledged as the sole
1164 source of payment may not at any one time exceed an amount for which the average annual
1165 installments of principal and interest will exceed 80% of the total excise tax revenues received
1166 by the issuing entity from the collection or rebate of the excise tax revenues during the fiscal
1167 year of the issuing entity immediately preceding the fiscal year in which the resolution
1168 authorizing the issuance of bonds is adopted.
1169 (5) Bonds issued solely from a special fund into which are to be deposited excise tax
1170 revenues constitutes a borrowing solely upon the credit of the excise tax revenues received or
1171 to be received by the city, town, or county and does not constitute an indebtedness or pledge of
1172 the general credit of the city, town, or county.
1173 (6) (a) Before issuing any bonds under this section, a city, town, or county shall:
1174 (i) give public notice of its intent to issue the bonds; and
1175 (ii) hold a public hearing to receive input from the public with respect to the issuance
1176 of the bonds.
1177 (b) The city, county, or town shall:
1178 (i) publish the notice once each week for two consecutive weeks in the official
1179 newspaper as designated under Section [
1180 not less than 14 days before the public hearing; and
1181 (ii) ensure that the notice identifies:
1182 (A) the purpose for the issuance of the bonds;
1183 (B) the maximum principal amount of the bonds to be issued;
1184 (C) the excise taxes proposed to be pledged for repayment of the bonds; and
1185 (D) the time, place, and location of the public hearing.
1186 (7) A city, town, or county shall submit the question of whether or not to issue any
1187 bonds under this section to voters for their approval or rejection if, within 30 calendar days
1188 after the notice required by Subsection (6), a written petition requesting an election and signed
1189 by at least 20% of the registered voters in the city, town, or county is filed with the city, town,
1190 or county.
1191 Section 26. Section 11-14-308 , which is renumbered from Section 11-14-17.6 is
1192 renumbered and amended to read:
1193 [
1194 mineral lease payments -- Use of bond proceeds -- Bond resolution -- Nonimpairment of
1195 appropriation formula -- Issuance of bonds.
1196 (1) Special service districts may:
1197 (a) issue bonds payable, in whole or in part, from federal mineral lease payments which
1198 are to be deposited into the Mineral Lease Account under Section 59-21-1 and distributed to
1199 special service districts under Subsection 59-21-2 (3)(h); or
1200 (b) pledge all or any part of the mineral lease payments referred to in Subsection (1)(a)
1201 as an additional source of payment for their general obligation bonds.
1202 (2) The proceeds of these bonds may be used:
1203 (a) to construct, repair, and maintain streets and roads;
1204 (b) to fund any reserves and costs incidental to the issuance of the bonds and pay any
1205 associated administrative costs; and
1206 (c) for capital projects of the special service district.
1207 (3) (a) The special service district board shall enact a resolution authorizing the
1208 issuance of bonds which, until the bonds have been paid in full:
1209 (i) shall be irrevocable; and
1210 (ii) may not be amended in any manner that would:
1211 (A) impair the rights of the bond holders; or
1212 (B) jeopardize the timely payment of principal or interest when due.
1213 (b) Notwithstanding any other provision of this chapter, the resolution may contain
1214 covenants with the bond holder regarding:
1215 (i) mineral lease payments, or their disposition;
1216 (ii) the issuance of future bonds; or
1217 (iii) other pertinent matters considered necessary by the [
1218 to:
1219 (A) assure the marketability of the bonds; or
1220 (B) insure the enforcement, collection, and proper application of mineral lease
1221 payments.
1222 (4) (a) Except as provided in Subsection (4)(b), the state may not alter, impair, or limit
1223 the statutory appropriation formula provided in Subsection 59-21-2 (3)(h), in a manner that
1224 reduces the amounts to be distributed to the special service district until the bonds and the
1225 interest on the bonds are fully met and discharged. Each special service district may include
1226 this pledge and undertaking of the state in these bonds.
1227 (b) Nothing in this section:
1228 (i) may preclude the alteration, impairment, or limitation of these bonds if adequate
1229 provision is made by law for the protection of the bond holders; or
1230 (ii) shall be construed:
1231 (A) as a pledge guaranteeing the actual dollar amount ultimately received by individual
1232 special service districts;
1233 (B) to require the Department of Transportation to allocate the mineral lease payments
1234 in a manner contrary to the general allocation method described in Subsection 59-21-2 (3)(h); or
1235 (C) to limit the Department of Transportation in making rules or procedures allocating
1236 mineral lease payments pursuant to Subsection 59-21-2 (3)(h).
1237 (5) (a) The average annual installments of principal and interest on bonds to which
1238 mineral lease payments have been pledged as the sole source of payment may not at any one
1239 time exceed:
1240 (i) 80% of the total mineral lease payments received by the issuing entity during the
1241 fiscal year of the issuing entity immediately preceding the fiscal year in which the resolution
1242 authorizing the issuance of bonds is adopted; or
1243 (ii) if the bonds are issued during the first fiscal year the issuing entity is eligible to
1244 receive funds, 60% of the amount estimated by the Department of Transportation to be
1245 appropriated to the issuing entity in that fiscal year.
1246 (b) The Department of Transportation shall not be liable for any loss or damage
1247 resulting from reliance on the estimates.
1248 (6) The final maturity date of the bonds may not exceed 15 years from the date of their
1249 issuance.
1250 (7) Bonds may not be issued under this section after December 31, 2010.
1251 (8) Bonds which are payable solely from a special fund into which mineral lease
1252 payments are deposited constitute a borrowing based solely upon the credit of the mineral lease
1253 payments received or to be received by the special service district and do not constitute an
1254 indebtedness or pledge of the general credit of the special service district or the state.
1255 Section 27. Section 11-14-309 , which is renumbered from Section 11-14-18 is
1256 renumbered and amended to read:
1257 [
1258 (1) Any bond issued under this chapter may be refunded as provided in the Utah
1259 Refunding Bond Act.
1260 (2) Nothing contained in this [
1261 be construed to permit any [
1262 [
1263 to pay them prior to their stated maturities, unless:
1264 (a) the right to call [
1265 stated in [
1266 (b) all conditions with respect to the manner, price, and time applicable to [
1267 redemption as set forth in the proceedings authorizing the outstanding bonds are strictly
1268 observed[
1269 (3) A holder of an outstanding bond may not be compelled to surrender [
1270 for refunding [
1271 reserved [
1272 benefit to the [
1273 Section 28. Section 11-14-310 , which is renumbered from Section 11-14-19 is
1274 renumbered and amended to read:
1275 [
1276 (1) Any bonds issued [
1277 payable solely from revenues other than those derived from ad valorem taxes [
1278 are full general obligations of the [
1279 punctual payment of principal of and interest on which the full faith and credit of the
1280 [
1281 subdivision is hereby expressly required, regardless of any limitations which may otherwise
1282 exist on the amount of taxes which the [
1283 provide for the levy and collection annually of ad valorem taxes without limitation as to rate or
1284 amount on all taxable property in the [
1285 for such purpose. If by law ad valorem taxes for the [
1286 are levied by a board other than its [
1287 is herein made shall be levied by such other board and the [
1288 subdivision shall be under the duty in due season in each year to provide such other board with
1289 all information necessary to the levy of taxes in the required amount. Such taxes shall be
1290 levied and collected by the same officers, at the same time and in the same manner as are other
1291 taxes levied for the [
1292 (2) If any [
1293 to levy or collect or cause to be levied or collected sufficient taxes for the prompt and punctual
1294 payment of such principal and interest, any person in interest may enforce levy and collection
1295 thereof in any court having jurisdiction of the subject matter, and any suit, action or proceeding
1296 brought by such person in interest shall be a preferred cause and shall be heard and disposed of
1297 without delay. All provisions of the constitution and laws relating to the collection of county
1298 and municipal taxes and tax sales shall also apply to and regulate the collection of the taxes
1299 levied pursuant to this section, through the officer whose duty it is to collect the taxes and
1300 money due the [
1301 Section 29. Section 11-14-311 , which is renumbered from Section 11-14-19.5 is
1302 renumbered and amended to read:
1303 [
1304 (1) Whenever the [
1305 interests of the [
1306 be issued under this chapter, the [
1307 resolution, issue bond anticipation notes. Each resolution authorizing the issuance of bond
1308 anticipation notes shall:
1309 (a) describe the bonds in anticipation of which the notes are to be issued; and
1310 (b) specify the principal amount of the notes and the maturity dates of the notes. The
1311 resolution shall specify either the rates of interest, if any, on the notes or specify the method by
1312 which interest on the notes may be determined while the notes are outstanding. If the
1313 resolution specifies a method by which the interest rates on the notes may be determined, the
1314 resolution may specify the maximum rate of interest which the notes may bear.
1315 (2) Bond anticipation notes shall be issued and sold in a manner and at a price, either
1316 at, below, or above face value, as the [
1317 Interest on bond anticipation notes may be made payable semiannually, annually, or at
1318 maturity. Bond anticipation notes may be made redeemable prior to maturity at the option of
1319 the [
1320 authorizing their issuance. Bond anticipation notes shall be executed and shall be in a form
1321 and have details and terms as provided in the authorizing resolution.
1322 (3) Contemporaneously with the issuance of the bonds in anticipation of which bond
1323 anticipation notes are issued, provision shall be made for the retirement of any outstanding
1324 bond anticipation notes.
1325 (4) Whenever the bonds in anticipation of which notes are issued are to be payable
1326 from ad valorem taxes and constitute full general obligations of the [
1327 political subdivision, the bond anticipation notes and the interest on them shall be secured by a
1328 pledge of the full faith and credit of the [
1329 provided in Section [
1330 from the sale of the bonds in anticipation of which the notes are issued. Whenever the bonds in
1331 anticipation of which the notes are to be issued are to be payable solely from revenues derived
1332 from the operation of revenue-producing facilities, these bond anticipation notes and the
1333 interest on them shall be secured by a pledge of the income and revenues derived by the
1334 [
1335 be made payable from funds derived from the sale of the bonds in anticipation of which the
1336 notes are issued.
1337 (5) Bond anticipation notes issued under this section may be refunded by the issuance
1338 of other bond anticipation notes issued under this section.
1339 (6) Sections [
1340 11-14-305 , 11-14-315 , 11-14-316 , and 11-14-401 apply to all bond anticipation notes issued
1341 under this section.
1342 (7) Bonds are not considered to have been issued more than ten years after the date of
1343 the election authorizing the issuance of them, under Section [
1344 issuance of these bonds has been anticipated under this section by bond anticipation notes
1345 issued prior to the expiration of this ten-year period.
1346 Section 30. Section 11-14-312 , which is renumbered from Section 11-14-19.6 is
1347 renumbered and amended to read:
1348 [
1349 All bonds issued by any [
1350 date of this [
1351 hereby validated, ratified, and confirmed; and all such bonds are declared to constitute legally
1352 binding obligations in accordance with their terms. Nothing in this section shall be construed
1353 to affect or validate any bonds, the legality of which is being contested at the time this [
1354 chapter takes effect.
1355 Section 31. Section 11-14-313 , which is renumbered from Section 11-14-19.7 is
1356 renumbered and amended to read:
1357 [
1358 -- Limitation on amount of tax anticipation notes or bonds -- Procedure.
1359 (1) For the purpose of meeting the current expenses of the [
1360 subdivision and for any other purpose for which funds of the [
1361 subdivision may be expended, the [
1362 excess of 90% of the taxes and other revenues of the [
1363 for the current year, issuing therefor negotiable notes or bonds of the [
1364 political subdivision. In the event that such notes or bonds are issued prior to the annual tax
1365 levy for the year in which such indebtedness is contracted, the amount so issued shall not
1366 exceed 75% of the tax revenues and other revenues of the preceding year, and the proceeds
1367 shall be applied only in payment of current and necessary expenses and other purposes for
1368 which funds of the [
1369 be included in the annual levy a tax and there shall be provision made for the imposition and
1370 collection of sufficient revenues other than taxes sufficient to pay the same at maturity. In the
1371 event that the taxes and other revenues in any one year are insufficient through delinquency or
1372 uncollectibility of taxes or other cause to pay when due all the lawful debts of the
1373 [
1374 [
1375 directed to levy and collect in the next succeeding year a sufficient tax and to provide for the
1376 imposition and collection of sufficient revenues other than taxes to pay all of such lawfully
1377 contracted indebtedness, and may borrow as provided in this section in anticipation of such tax
1378 and other revenues to pay any such lawfully contracted indebtedness. Each resolution
1379 authorizing the issuance of tax anticipation notes shall:
1380 (a) describe the taxes or revenues in anticipation of which the notes are to be issued;
1381 and
1382 (b) specify the principal amount of the notes, the interest rates, if any, (including a
1383 variable interest rate), the notes shall bear, and the maturity dates of the notes, which dates
1384 shall not extend beyond the last day of the issuing [
1385 fiscal year.
1386 (2) Tax anticipation notes shall be issued and sold in such manner and at such prices
1387 (whether at, below, or above face value) as the [
1388 determine. Tax anticipation notes shall be in bearer form, except that the [
1389 legislative body may provide for the registration of the notes in the name of the owner, either as
1390 to principal alone, or as to principal and interest. Tax anticipation notes may be made
1391 redeemable prior to maturity at the option of the [
1392 upon the terms fixed by the resolution authorizing their issuance. Tax anticipation notes shall
1393 be executed and shall be in such form and have such details and terms as shall be provided in
1394 the authorizing resolution.
1395 (3) The provisions of Sections [
1396
1397 11-14-315 , 11-14-316 , 11-14-401 , 11-14-403 , and 11-14-404 shall apply to all tax anticipation
1398 notes issued under this section. In applying these sections to tax anticipation notes, "bond" or
1399 "bonds" as used in these sections shall be deemed to include tax anticipation notes.
1400 [
1401
1402 Section 32. Section 11-14-314 , which is renumbered from Section 11-14-19.8 is
1403 renumbered and amended to read:
1404 [
1405 All obligations issued in anticipation of the collection of taxes and other revenues by
1406 any [
1407 all proceedings had in the authorization and issuance of them are validated, ratified, and
1408 confirmed; and all these obligations are declared to constitute legally binding obligations in
1409 accordance with their terms. Nothing in this section shall be construed to affect or validate any
1410 of these obligations, the legality of which is being contested at the time this [
1411 effect.
1412 Section 33. Section 11-14-315 , which is renumbered from Section 11-14-20 is
1413 renumbered and amended to read:
1414 [
1415 other statutory provisions -- Budget provision required -- Applicable procedures for
1416 issuance.
1417 Bonds issued under this [
1418 shall be incontestable in the hands of bona fide purchasers or holders for value and shall not be
1419 invalid for any irregularity or defect in the proceedings for their issuance and sale. This [
1420 chapter is intended to afford an alternative method for the issuance of bonds by [
1421 local political subdivisions and shall not be so construed as to deprive any [
1422 political subdivision of the right to issue its bonds under authority of any other statute, but
1423 nevertheless this [
1424 [
1425 Annotated 1953, shall not be applicable to bonds issued under this [
1426 [
1427 annual budget make proper provision for the payment of principal and interest currently falling
1428 due on bonds issued hereunder, but no provision need be made in any such budget prior to the
1429 issuance of the bonds for the issuance thereof or for the expenditure of the proceeds thereof.
1430 No ordinance, resolution or proceeding in respect to the issuance of bonds hereunder shall be
1431 necessary except as herein specifically required, nor shall the publication of any resolution,
1432 proceeding or notice relating to the issuance of the bonds be necessary except as herein
1433 required. Any publication made hereunder may be made in any newspaper conforming to the
1434 terms hereof in which legal notices may be published under the laws of Utah, without regard to
1435 the designation thereof as the official journal or newspaper of the [
1436 subdivision. No resolution adopted or proceeding taken hereunder shall be subject to
1437 referendum petition or to an election other than as herein required. All proceedings adopted
1438 hereunder may be adopted on a single reading at any legally convened meeting of the
1439 [
1440 Section 34. Section 11-14-316 , which is renumbered from Section 11-14-21 is
1441 renumbered and amended to read:
1442 [
1443 Contest.
1444 [
1445
1446
1447
1448
1449
1450 (1) The legislative body of any [
1451 for the publication of any resolution or other proceeding adopted [
1452 [
1453 circulation in the local political subdivision.
1454 [
1455 providing for the issuance of bonds, the [
1456 the entire resolution or other proceeding, publish a notice of bonds to be issued, titled as such,
1457 containing:
1458 (a) the name of the issuer;
1459 (b) the purpose of the issue;
1460 (c) the type of bonds and the maximum principal amount which may be issued;
1461 (d) the maximum number of years over which the bonds may mature;
1462 (e) the maximum interest rate which the bonds may bear, if any;
1463 (f) the maximum discount from par, expressed as a percentage of principal amount, at
1464 which the bonds may be sold; and
1465 (g) the times and place where a copy of the resolution or other proceeding may be
1466 examined, which shall be:
1467 (i) at an office of the issuer[
1468 (ii) identified in the notice[
1469 (iii) during regular business hours of the issuer as described in the notice; and
1470 (iv) for a period of at least 30 days after the publication of the notice.
1471 [
1472 contest:
1473 (a) the legality of such resolution or proceeding[
1474 (b) any bonds which may be authorized by such resolution or proceeding[
1475 (c) any provisions made for the security and payment of the bonds.
1476 (4) A person shall contest the matters set forth in Subsection (3) by filing a verified
1477 written complaint in the district court of the county in which he resides within the 30-day
1478 period.
1479 (5) After the 30-day period, no person may contest the regularity, formality, or legality
1480 of [
1481 Section 35. Section 11-14-401 , which is renumbered from Section 11-14-22 is
1482 renumbered and amended to read:
1483
1484 [
1485 future statutes dealing with municipal bond issues.
1486 (1) This [
1487 "Local Government Bonding Act."
1488 (2) All bonds issued pursuant to authority contained in this [
1489 on their face a recital to that effect, and no [
1490 amending other [
1491 might be issued or dealing with bond issues of [
1492 shall be construed to affect the authority to proceed under this [
1493 herein provided unless such future statute amends this [
1494 that it is to be applicable to bonds issued under this [
1495 (3) All bonds referencing the prior title of this chapter, "Utah Municipal Bond Act,"
1496 that were issued prior to May 2, 2005 pursuant to the authority contained in this chapter shall
1497 be considered to reference this chapter and shall be construed according to the terms of
1498 Subsection (1) as if they refer to the current title of this chapter.
1499 Section 36. Section 11-14-402 , which is renumbered from Section 11-14-23 is
1500 renumbered and amended to read:
1501 [
1502 (1) Except as provided in Subsection (2), this chapter does not apply to bonds issued by
1503 the state of Utah nor to bonds or obligations payable solely from special assessments levied on
1504 benefited property.
1505 (2) Sections [
1506 application in accordance with their terms.
1507 Section 37. Section 11-14-403 , which is renumbered from Section 11-14-24 is
1508 renumbered and amended to read:
1509 [
1510 To the extent that any one or more provisions of this [
1511 with any other law or laws, the provisions of this [
1512 Section 38. Section 11-14-404 , which is renumbered from Section 11-14-25 is
1513 renumbered and amended to read:
1514 [
1515 If any one or more sentences, clauses, phrases, provisions or sections of this [
1516 chapter or the application thereof to any set of circumstances shall be held by final judgment of
1517 any court of competent jurisdiction to be invalid, the remaining sentences, clauses, phrases,
1518 provisions and sections hereof and the application of this [
1519 circumstances shall nevertheless continue to be valid and effective, the legislature hereby
1520 declaring that all provisions of this [
1521 Section 39. Section 11-14-405 , which is renumbered from Section 11-14-26 is
1522 renumbered and amended to read:
1523 [
1524 All bonds issued by any [
1525 date of this [
1526 hereby validated, ratified and confirmed and all such bonds are declared to constitute legally
1527 binding obligations in accordance with their terms. Nothing in this section shall be construed
1528 to affect or validate any bonds, the legality of which is being contested at the time this [
1529 chapter takes effect.
1530 Section 40. Section 11-14-406 , which is renumbered from Section 11-14-27 is
1531 renumbered and amended to read:
1532 [
1533 Sections [
1534
1535 apply to all bond elections [
1536 district, public transit district, improvement district under Title 17A, Chapter 2, Part 3, special
1537 service district operating under authority of the Utah Special Service District Act, water
1538 conservancy district, metropolitan water district and, except as otherwise provided in Section
1539 [
1540 bonds are issued [
1541
1542
1543 Section 41. Section 11-14-501 , which is renumbered from Section 11-14-28 is
1544 renumbered and amended to read:
1545
1546 [
1547 interests.
1548 (1) As used in this section:
1549 (a) "Bonds" means any bond, note, lease, or other obligation of a governmental unit.
1550 (b) "Governmental unit" has the meaning assigned in Subsection 70A-9a-102 (45).
1551 (c) "Pledge" means the creation of a security interest of any kind.
1552 (d) "Property" means any property or interests in property, other than real property.
1553 (e) "Security agreement" means any resolution, ordinance, indenture, document, or
1554 other agreement or instrument under which the revenues, fees, rents, charges, taxes, or other
1555 property are pledged to secure the bonds.
1556 (2) This section expressly governs the creation, perfection, priority, and enforcement of
1557 a security interest created by the state or a governmental unit of the state, notwithstanding
1558 anything in Title 70A, Chapter 9a, Uniform Commercial Code - Secured Transactions, to the
1559 contrary.
1560 (3) (a) The revenues, fees, rents, charges, taxes, or other property pledged by a
1561 governmental unit for the purpose of securing its bonds are immediately subject to the lien of
1562 the pledge.
1563 (b) (i) The lien is a perfected lien upon the effective date of the security agreement.
1564 (ii) The physical delivery, filing, or recording of a security agreement or financing
1565 statement under the Uniform Commercial Code or otherwise, or any other similar act, is not
1566 necessary to perfect the lien.
1567 (c) The lien of any pledge is valid, binding, perfected, and enforceable from the time
1568 the pledge is made.
1569 (d) The lien of the pledge has priority:
1570 (i) based on the time of the creation of the pledge unless otherwise provided in the
1571 security agreement; and
1572 (ii) as against all parties having claims of any kind in tort, contract, or otherwise
1573 against the governmental unit, regardless of whether or not the parties have notice of the lien.
1574 (e) Each pledge and security agreement made for the benefit or security of any of the
1575 bonds shall continue to be effective until:
1576 (i) the principal, interest, and premium, if any, on the bonds have been fully paid;
1577 (ii) provision for payment has been made; or
1578 (iii) the lien created by the security agreement has been released by agreement of the
1579 parties in interest or as provided by the security agreement that created the lien.
1580 Section 42. Section 11-17-3 is amended to read:
1581 11-17-3. Powers of municipalities, counties, and state universities.
1582 (1) Each municipality, county, and state university may:
1583 (a) finance or acquire, whether by construction, purchase, devise, gift, exchange, or
1584 lease, or any one or more of those methods, and construct, reconstruct, improve, maintain,
1585 equip, and furnish or fund one or more projects, which shall be located within this state, and
1586 which shall be located within, or partially within, the municipality or county or within the
1587 county within which a state university is located, unless an agreement under the Interlocal
1588 Cooperation Act has been entered into as authorized by Subsection (5), except that if a
1589 governing body finds, by resolution, that the effects of international trade practices have been
1590 or will be adverse to Utah manufacturers of industrial products and, therefore, it is desirable to
1591 finance a project in order to maintain or enlarge domestic or foreign markets for Utah industrial
1592 products, a project may consist of the financing on behalf of a user of the costs of acquiring
1593 industrial products manufactured in, and which are to be exported from, the state [
1594 (b) finance for, sell, lease, contract the management of, or otherwise dispose of to, any
1595 person, firm, partnership, or corporation, either public or private, including without limitation
1596 any person, firm, partnership, or corporation engaged in business for a profit, any or all of its
1597 projects upon the terms and conditions as the governing body [
1598 which do not conflict with this chapter;
1599 (c) issue revenue bonds for the purpose of defraying the cost of financing, acquiring,
1600 constructing, reconstructing, improving, maintaining, equipping, furnishing, or funding any
1601 project and secure the payment of the bonds as provided in this chapter, which revenue bonds
1602 may be issued in one or more series or issues where [
1603 series or issue may contain different maturity dates, interest rates, priorities on securities
1604 available for guaranteeing payment of them, and other differing terms and conditions [
1605 considered necessary and not in conflict with this chapter;
1606 (d) (i) grant options to renew any lease with respect to any project and to buy any
1607 project at a price the governing body [
1608 (ii) sell and convey any real or personal property acquired under Subsection (1)(a) at
1609 public or private sale, and make an order respecting the sale [
1610 the best interests of the municipality, county, or state university, the sale or conveyance to be
1611 subject to the terms of any lease but to be free and clear of any other encumbrance;
1612 (e) establish, acquire, develop, maintain, and operate industrial parks; and
1613 (f) offer to the holders of its bonds issued pursuant to this chapter the right, where its
1614 governing body [
1615 bond obligation into an equity position in some or all of the assets developed with the proceeds
1616 of the bond offering.
1617 (2) An economic development or new venture investment fund shall be considered to
1618 be located in the municipality or county where its headquarters is located or where any office of
1619 it is located, as long as it is headquartered within the state. It need not make all of its
1620 investments within the state of Utah or such county or municipality, so long as it locates within
1621 the state of Utah or such county or municipality its headquarters where its actual investment
1622 decisions and management functions occur and agrees to, and does, limit the aggregate amount
1623 of its investments in companies located outside the state of Utah to an amount which in the
1624 aggregate does not exceed the aggregate amount of investments made by institutions and funds
1625 located outside the state of Utah in companies headquartered in Utah which the locally
1626 managed fund has sponsored or in which it has invested and which it has brought to the
1627 attention of investors outside the state of Utah. For purposes of enabling an offering of bonds
1628 to fund such a fund, a certification of an executive managerial officer of the manager of said
1629 fund of the intention to comply with this provision may be relied upon. Each fund shall at least
1630 annually certify to the governmental offeror of such bonds its compliance with this provision.
1631 (3) Before any municipality, county, or state university issues revenue bonds under this
1632 chapter for the purpose of defraying the cost of acquiring, constructing, reconstructing,
1633 improving, maintaining, equipping, or furnishing any industrial park project, the governing
1634 body of the state university, county, or municipality shall adopt and establish a plan of
1635 development for the tracts of land to constitute the industrial park and shall, by resolution, find
1636 that the project for the establishment of the industrial park is well conceived and has a
1637 reasonable prospect of success, that the project will tend to provide proper economic
1638 development of the municipality or county and will encourage industry to locate within or near
1639 the municipality or county or, in the case of state universities, will further, through industrial
1640 research and development, the instructional progress of the state university. There may be
1641 included as a part of any plan of development for any industrial park zoning regulations,
1642 restrictions on usage of sites within the boundaries of the industrial park, minimum size of
1643 sites, parking and loading regulations, and methods for the providing and furnishing of police
1644 and fire protection and for the furnishing of other municipal or county services which are
1645 [
1646 safety. If any water or sewerage facilities are to be acquired as part of the development of the
1647 land for an industrial park under this chapter, water and sewerage facilities may be acquired as
1648 part of the issue of bonds issued under this chapter, through the issuance of bonds payable from
1649 water and sewer charges in the manner as is now or as may hereafter be provided by law, in
1650 combination with an issue of refunding bonds, in combination with an issue of bonds upon the
1651 consent of the holders of outstanding bonds issued for the same purpose, in combination with
1652 bonds issued for the purposes of financing water and sewer facilities which will not be a part of
1653 an industrial park, or in any combination of the foregoing. Any municipality, county, or state
1654 university establishing an industrial park may lease any land acquired and developed as part of
1655 an industrial park to one or more lessees. The lessee may sublease all or a portion of the land
1656 so leased from the municipality or county. Municipalities, counties, and state universities may
1657 sell or lease land in connection with the establishment, acquisition, development, maintenance,
1658 and operation of an industrial park project. Any such lease or sale of land shall be undertaken
1659 only after the adoption by the governing body of a resolution authorizing the lease or sale of the
1660 land for industrial park purposes.
1661 (4) (a) No municipality, county, or state university may operate any project referred to
1662 in this section, as a business or in any other manner except as the lessor or administrator of it,
1663 nor may it acquire any such project, or any part of it, by condemnation. This prohibition does
1664 not apply to projects involving research conducted, administered, or managed by a state
1665 university.
1666 (b) No municipality, county, or state university may, under this chapter, acquire or
1667 lease projects, or issue revenue bonds for the purpose of defraying the cost of any project or
1668 part of it, used for the generation, transmission, or distribution of electric energy beyond the
1669 project site, or the production, transmission, or distribution of natural gas, except for any
1670 project defined in Subsection 11-17-2 (8)(b) or (d).
1671 (5) Each municipality, county, and state university may enter, either before or after the
1672 bonds have been issued, into interlocal agreements under Title 11, Chapter 13, Interlocal
1673 Cooperation Act, with one or more municipalities, counties, state universities, or special
1674 service districts created pursuant to Title 17A, Chapter 2, Part 13, Utah Special Service District
1675 Act, in order to accomplish economies of scale or other cost savings and any other additional
1676 purposes to be specified in the interlocal agreement, for the issuance of bonds under this
1677 chapter on behalf of all of the signatories to the interlocal agreement by one of the
1678 municipalities, counties, or state universities which is a signatory to the interlocal agreement
1679 for the financing or acquisition of projects qualifying as a project under Subsection 11-17-2 (8).
1680 For all purposes of Section 11-13-207 the signatory to the interlocal agreement designated as
1681 the issuer of the bonds constitutes the administrator of the interlocal agreement.
1682 (6) Subsection (4) to the contrary notwithstanding, the governing body of any state
1683 university owning or desiring to own facilities or administer projects described in Subsection
1684 11-17-2 (8) may:
1685 (a) become a signatory to the interlocal agreement provided for in Subsection (5);
1686 (b) enter into a separate security agreement with the issuer of the bonds, as provided in
1687 Section 11-17-5 for the financing or acquisition of a project under Subsection 11-17-2 (8) to be
1688 owned by the state university;
1689 (c) enter into agreements to secure the obligations of the state university under a
1690 security agreement entered into under Subsection (6)(b), or to provide liquidity for such
1691 obligations including, without limitation, letter of credit agreements with banking institutions
1692 for letters of credit or for standby letters of credit, reimbursement agreements with financial
1693 institutions, line of credit agreements, standby bond purchase agreements, and to provide for
1694 payment of fees, charges, and other amounts coming due under the agreements entered into
1695 under the authority contained in this Subsection (6)(c);
1696 (d) provide in security agreements entered into under Subsection (6)(b) and in
1697 agreements entered into under Subsection (6)(c) that the obligations of the state university
1698 under an agreement shall be special obligations payable solely from the revenues derived from
1699 the operation or management of the project, owned by the state university and from net profits
1700 from proprietary activities and any other revenues pledged other than appropriations by the
1701 Utah Legislature, and the governing body of the state university shall pledge all or any part of
1702 such revenues to the payment of its obligations under an agreement; and
1703 (e) in order to secure the prompt payment of the obligations of the state university
1704 under a security agreement entered into under Subsection (6)(b) or an agreement entered into
1705 under Subsection (6)(c) and the proper application of the revenues pledged to them, covenant
1706 and provide appropriate provisions in an agreement to the extent permitted and provided for
1707 under Section 53B-21-102 .
1708 (7) Subsection (4) to the contrary notwithstanding, the governing body of any
1709 municipality, county, or special service district owning, desiring to own, or administering
1710 projects or facilities described in Subsection 11-17-2 (8) may:
1711 (a) become a signatory to the interlocal agreement provided for in Subsection (5);
1712 (b) enter into a separate security agreement with the issuer of the bonds, as provided in
1713 Section 11-17-5 , for the financing or acquisition of a project under Subsection 11-17-2 (8) to be
1714 owned by the municipality, county, or special service district, as the case may be, except that
1715 no municipality, county, or special service district may mortgage the facilities so financed or
1716 acquired;
1717 (c) enter into agreements to secure the obligations of the municipality, county, or
1718 special service district, as the case may be, under a security agreement entered into under
1719 Subsection (7)(b), or to provide liquidity for such obligations including, without limitation,
1720 letter of credit agreements with banking institutions for letters of credit or for standby letters of
1721 credit, reimbursement agreements with financial institutions, line of credit agreements, standby
1722 bond purchase agreements, and to provide for payment of fees, charges, and other amounts
1723 coming due under the agreements entered into under the authority contained in this Subsection
1724 (7)(c);
1725 (d) provide in security agreements entered into under Subsection (7)(b) and in
1726 agreements entered into under Subsection (7)(c) that the obligations of the municipality,
1727 county, or special service district, as the case may be, under an agreement shall be special
1728 obligations payable solely from the revenues derived from the operation or management of the
1729 project, owned by the municipality, county, or special service district, as the case may be, and
1730 the governing body of the municipality, county, or special service district, as the case may be,
1731 shall pledge all or any part of such revenues to the payment of its obligations under an
1732 agreement; and
1733 (e) in order to secure the prompt payment of obligations under a security agreement
1734 entered into under Subsection (7)(b) or an agreement entered into under Subsection (7)(c) and
1735 the proper application of the revenues pledged to them, covenant and provide appropriate
1736 provisions in an agreement to the extent permitted and provided for with respect to revenue
1737 obligations under Section [
1738 (8) In connection with the issuance of bonds under this chapter, a municipality, county,
1739 or state university:
1740 (a) may provide for the repurchase of bonds tendered by their owners and may enter
1741 into an agreement to provide liquidity for such repurchases, including a letter of credit
1742 agreement, line of credit agreement, standby bond purchase agreement, or other type of
1743 liquidity agreement;
1744 (b) may enter into remarketing, indexing, tender agent, or other agreements incident to
1745 the financing of the project or the performance of the issuer's obligations relative to the bonds;
1746 and
1747 (c) may provide for payment of fees, charges, and other amounts coming due under the
1748 agreements entered into pursuant to authority contained in Subsection (6).
1749 Section 43. Section 11-25-5 is amended to read:
1750 11-25-5. Bonds or notes -- Issuance -- Purposes -- Payment -- Maturity of bond
1751 anticipation notes.
1752 An agency may, from time to time, issue its negotiable bonds or notes for the purpose
1753 of financing residential rehabilitation as authorized by this act and for the purpose of funding or
1754 refunding these bonds or notes in the same manner as it may issue other bonds or notes as
1755 provided in Title 17B, Chapter 4, Part 12, Bonds. Every issue of its bonds shall be a special
1756 obligation of the agency payable from all or any part of the revenues specified in the act or
1757 funds legally received by the agency. In anticipation of the sale of the bonds, the agency may
1758 issue negotiable bond anticipation notes in accordance with Section [
1759 and may renew such notes from time to time. Bond anticipation notes may be paid from the
1760 proceeds of sale of the bonds of the agency in anticipation of which they were issued. Bond
1761 anticipation notes and agreements relating thereto and the resolution or resolutions authorizing
1762 the notes and agreements may obtain any provisions, conditions, or limitations which a bond,
1763 agreement relating thereto, or bond resolution of the agency may contain except that any note
1764 or renewal thereof shall mature at a time not later than five years from the date of the issuance
1765 of the original note.
1766 Section 44. Section 11-27-3 is amended to read:
1767 11-27-3. Action by resolution of governing body -- Purposes for bond issue --
1768 Exchange or sale -- Interest rate limitations inapplicable -- Principal amount --
1769 Investment of proceeds -- Safekeeping and application of proceeds -- Computing
1770 indebtedness -- Payment of bonds -- Combination issues -- Laws applicable to issuance --
1771 Payment from taxes or pledged revenues.
1772 (1) Any formal action taken by the governing body of a public body under the authority
1773 of this chapter may be taken by resolution of that governing body.
1774 (2) (a) The governing body of any public body may by resolution provide for the
1775 issuance of refunding bonds to refund outstanding bonds issued by the public body or its
1776 predecessor, either prior to or after the effective date of this chapter, only:
1777 (i) to pay or discharge all or any part of any outstanding series or issue of bonds,
1778 including applicable interest, in arrears or about to become due and for which sufficient funds
1779 are not available;
1780 (ii) to achieve a savings; or
1781 (iii) to achieve another objective that the governing body finds to be beneficial to the
1782 public body.
1783 (b) Any refunding bonds may be delivered in exchange for the outstanding bonds being
1784 refunded or may be sold in a manner, at terms, with details, and at a price above, at, or below
1785 par as the governing body determines advisable. The refunding bonds may be issued without
1786 an election, unless an election is required by the Utah Constitution.
1787 (c) It is the express intention of the Legislature that interest rate limitations elsewhere
1788 appearing in the laws of the state not apply to nor limit the rates of interest borne by refunding
1789 bonds.
1790 (3) Advance refunding bonds may be issued in a principal amount in excess of the
1791 principal amount of the bonds to be refunded as determined by the governing body. This
1792 amount may be equal to the full amount required to pay the principal of, interest on, and
1793 redemption premiums, if any, due in connection with the bonds to be refunded to and including
1794 their dates of maturity or redemption in accordance with the advance refunding plan adopted by
1795 the governing body, together with all costs incurred in accomplishing this refunding. The
1796 principal amount of refunding bonds may be less than or the same as the principal amount of
1797 the bonds being refunded so long as provision is duly and sufficiently made for the retirement
1798 or redemption of the bonds to be refunded. Any reserves held or taxes levied or collected to
1799 secure the bonds to be refunded may be applied to the redemption or retirement of the bonds,
1800 or otherwise, as the governing body may determine.
1801 (4) Prior to the application of the proceeds derived from the sale of advance refunding
1802 bonds to the purposes for which the bonds have been issued, these proceeds, together with any
1803 other legally available funds, including reserve funds, may be invested and reinvested only in
1804 government obligations maturing at such times as may be required to provide funds sufficient
1805 to pay principal of, interest on, and redemption premiums, if any, due in connection with the
1806 bonds to be refunded or the advance refunding bonds, or both, in accordance with the advance
1807 refunding plan. To the extent incidental expenses have been capitalized, these bond proceeds
1808 may be used to defray these expenses.
1809 (5) The governing body may contract regarding the safekeeping and application of the
1810 proceeds of sale of advance refunding bonds and other funds included with them and the
1811 income from them, including the right to appoint a trustee, which may be any trust company or
1812 state or national bank having powers of a trust company inside or outside the state. The
1813 governing body may provide in the advance refunding plan that until such monies are required
1814 to redeem or retire the bonds to be refunded, the advance refunding bond proceeds and other
1815 funds, and the income from them, shall be used to pay and secure payment of principal of,
1816 interest on, and redemption premiums, if any, due in connection with all or a portion of the
1817 advance refunding bonds or the bonds being refunded, or both.
1818 (6) In computing indebtedness for the purpose of any applicable constitutional or
1819 statutory debt limitation, there shall be deducted from the amount of outstanding indebtedness
1820 the principal amount of outstanding general obligation bonds for the payment of which there
1821 has been dedicated and deposited in escrow government obligations, the principal of or interest
1822 on which, or both, will be sufficient to provide for the payment of these general obligation
1823 bonds as to principal, interest, and redemption premiums, if any, when due at maturity or upon
1824 some earlier date upon which the bonds have been called for redemption in accordance with
1825 their terms.
1826 (7) When a public body has irrevocably set aside for and pledged to the payment of
1827 bonds to be refunded proceeds of advance refunding bonds and other monies in amounts
1828 which, together with known earned income from their investment, will be sufficient in amount
1829 to pay the principal of, interest on, and any redemption premiums due on the bonds to be
1830 refunded as the same become due and to accomplish the refunding as scheduled, the refunded
1831 bonds shall be [
1832 constitutional or statutory debt limitation.
1833 (8) Refunding bonds and bonds issued for any other purpose may be issued separately
1834 or issued in combination in one or more series or issues by the same issuer.
1835 (9) Except as specifically provided in this section, refunding bonds issued under this
1836 chapter shall be issued in accordance with the provisions of law applicable to the type of bonds
1837 of the issuer being refunded in effect either at the time of the issuance of the refunding bonds
1838 or at the time of issuance of the bonds to be refunded. Refunding bonds and coupons, if any,
1839 pertaining to them may bear facsimile signatures as provided in Section [
1840 (10) Refunding bonds may be made payable from any taxes or pledged revenues, or
1841 both, or any assessments, special improvement guaranty funds, or other funds which might be
1842 legally pledged for the payment of the bonds to be refunded at the time of the issuance of the
1843 refunding bonds or at the time of the issuance of the bonds to be refunded, as the governing
1844 body may determine.
1845 Section 45. Section 15-7-12 is amended to read:
1846 15-7-12. Obligations subject to chapter.
1847 (1) Unless the official or official body of the issuer determines otherwise before or at
1848 the time of the original issuance of a registered public obligation, this act is applicable to such
1849 registered public obligation. When this act is applicable, the provisions of this act prevail over
1850 any inconsistent provision under any other law. Pursuant to Section [
1851 act is specifically made applicable to registered public obligations issued under Title 11,
1852 Chapter 14, [
1853 Section [
1854 (2) Nothing in this act limits or prevents the issuance of obligations in any other form
1855 or manner authorized by law.
1856 (3) Unless determined otherwise pursuant to Subsection (1), this act is applicable with
1857 respect to obligations which have been approved before enactment of this act by vote,
1858 referendum, or hearing, which authorized or permitted the authorization of obligations in
1859 bearer and registered form, or in bearer form only, and such obligations need not be
1860 resubmitted for a further vote, referendum or hearing, for the purpose of authorizing or
1861 permitting the authorization of registered public obligations under this act.
1862 Section 46. Section 17-12-1 is amended to read:
1863 17-12-1. Authority and applicable procedure for issuance of bonds -- Application
1864 of proceeds -- Debt limit.
1865 Except as otherwise provided under Section 17-50-303 , the county legislative body may
1866 contract a bonded indebtedness in the manner and subject to the conditions provided under
1867 Title 11, Chapter 14, [
1868 derived from the sale of bonds shall be applied only to the purpose or purposes specified in the
1869 order of the county legislative body. If there is any surplus, it shall be applied to the payment
1870 of the bonds. In no event may any county become so indebted to an amount, including existing
1871 indebtedness, exceeding 2% of the fair market value, as defined under Section 59-2-102 , of the
1872 taxable property in the county as computed from the last equalized assessment roll for county
1873 purposes prior to the incurring of the indebtedness.
1874 Section 47. Section 17-24-1 is amended to read:
1875 17-24-1. General duties of treasurer.
1876 The county treasurer shall:
1877 (1) receive all money belonging to the county and all other money by law directed to be
1878 paid to the treasurer, including proceeds of bonds, notes, or other evidences of indebtedness
1879 issued under Title 11, Chapter 14, [
1880 (2) deposit and invest all money received under Title 51, Chapter 7, State Money
1881 Management Act;
1882 (3) keep a record of the receipts and expenditures of all such money;
1883 (4) disburse county money:
1884 (a) on a county warrant issued by the county auditor; or
1885 (b) subject to Sections 17-19-1 , 17-19-3 , and 17-19-5 , by a county check or such other
1886 payment mechanism as may be adopted pursuant to Chapter 36, Uniform Fiscal Procedures Act
1887 for Counties;
1888 (5) perform the duties assigned to the treasurer under Title 59, Chapter 2, Part 13,
1889 Collection of Taxes;
1890 (6) perform the duties under Title 59, Chapter 2, Part 13, Collection of Taxes, that have
1891 been reassigned to the treasurer in an ordinance adopted under Section 17-16-5.5 ; and
1892 (7) perform other duties that are required by law or ordinance.
1893 Section 48. Section 17-36-54 is amended to read:
1894 17-36-54. Tax stability and trust fund -- Use of principal -- Determination of
1895 necessity -- Election.
1896 If the legislative body of a county that has established a tax stability and trust fund
1897 under Section 17-36-51 determines that it is necessary for purposes of that county to use any
1898 portion of the principal of the fund, the county legislative body shall submit this proposition to
1899 the electorate of that county in a special election called and held in the manner provided for in
1900 Title 11, Chapter 14, [
1901 of bond elections. If the proposition is approved at this special election by a majority of the
1902 qualified electors of the county voting at the election, then that portion of the principal of the
1903 fund covered by the proposition may be transferred to the county's general fund for use for
1904 purposes of that county.
1905 Section 49. Section 17-50-303 is amended to read:
1906 17-50-303. County may not give or lend credit -- County may borrow in
1907 anticipation of revenues -- Assistance to nonprofit entities.
1908 (1) A county may not give or lend its credit to or in aid of any person or corporation,
1909 or, except as provided in Subsection (3), appropriate money in aid of any private enterprise.
1910 (2) (a) A county may borrow money in anticipation of the collection of taxes and other
1911 county revenues in the manner and subject to the conditions of Title 11, Chapter 14, [
1912
1913 (b) A county may incur indebtedness under Subsection (2)(a) for any purpose for which
1914 funds of the county may be expended.
1915 (3) After first holding a public hearing, a county may provide services or give other
1916 nonmonetary property or assistance to or waive fees required to be paid by a nonprofit entity,
1917 whether or not the county receives consideration in return.
1918 Section 50. Section 17A-2-306 is amended to read:
1919 17A-2-306. Bonds.
1920 (1) The board of trustees may, at any time after its organization, adopt a resolution
1921 determining it desirable to issue the bonds of the district for purposes and in amounts stated in
1922 the resolution. The resolution shall specify whether the bonds are payable from taxes or from
1923 the operating revenues of the district, or both. Where the bonds are payable from taxes, in
1924 whole or in part, the board of trustees shall call a bond election. If at the election, the
1925 proposition to issue the bonds is approved, the board of trustees shall issue the bonds in the
1926 manner provided in Title 11, Chapter 14, [
1927 Act. If the bonds are payable solely from the operating revenues of the district, no election is
1928 required to approve their issuance, and such bonds shall be issued pursuant to the resolution
1929 and in the manner provided in Title 11, Chapter 14, [
1930 Bonding Act. The board may reduce the amount of bonds.
1931 (2) Any bonds authorized prior to April 28, 1986, by an electric service district created
1932 pursuant to Chapter 2, Part 3, County Improvement Districts for Water, Sewerage, Flood
1933 Control, Electric and Gas, are considered valid and binding if all of the following conditions
1934 have been met:
1935 (a) a resolution has been adopted by the board of trustees of the electric service district,
1936 prior to April 28, 1986, for the purpose of authorizing the bonds, whether or not these bonds
1937 have been issued;
1938 (b) the bonds are delivered and paid for;
1939 (c) the electric service district which authorized the bonds complied with all of the
1940 requirements for electric service districts set forth in Section 17A-2-305 ; and
1941 (d) the requirements of Subsection (1) are met.
1942 (3) If any bonds have been authorized under the conditions described in Subsection (2),
1943 prior to April 28, 1986, the board of trustees of the electric service district may make any
1944 necessary changes in the specifications of the bonds or the proceedings authorizing the bonds.
1945 Section 51. Section 17A-2-307 is amended to read:
1946 17A-2-307. Resolution calling bond election -- Precincts and polling places.
1947 If, under the provisions of Section 17A-2-306 , the board shall determine to call an
1948 election on the issuance of the bonds, the board shall adopt a resolution directing that an
1949 election be held in the district for the purpose of determining whether bonds in the amount, for
1950 the purpose, and with the maximum maturity specified in the resolution, shall be issued. The
1951 resolution calling the election shall be adopted, notice of the election shall be given, the
1952 election shall be held, voters' qualifications shall be determined, and the results thereof
1953 canvassed in the manner and subject to the conditions provided for in Title 11, Chapter 14,
1954 [
1955 election treat the entire district as a single precinct or may divide the district into such precincts
1956 and fix such polling places as it may see fit.
1957 Section 52. Section 17A-2-309 is amended to read:
1958 17A-2-309. Results of bond election -- Resolution -- Issuance of bonds --
1959 Maximum bonded indebtedness.
1960 (1) The results of the bond election shall be canvassed by the board of trustees and a
1961 resolution adopted by the board declaring the results, and a certified copy of the resolution filed
1962 in the records of the district. The results of all subsequent elections shall be similarly
1963 canvassed by the board of trustees and resolutions declaring the results of the elections adopted
1964 and filed.
1965 (2) If, at the bond election, a majority of the qualified voters voting on any bond
1966 proposition vote in favor of the issuance of the bonds, the board of trustees shall proceed to
1967 issue the bonds. Bonds may be issued for the purpose of constructing or acquiring any
1968 improvement provided in Section 17A-2-301 , or any part or combination of them, or for
1969 improving and extending the improvement or combination of improvements, and may include
1970 the payment of all legal, engineering, and fiscal agent expenses reasonably incurred in
1971 connection with the construction, acquisition, improving, and extending of these improvements
1972 and with the authorization and issuance of the bonds. The bonds shall be fully negotiable for
1973 all purposes and may not be issued in an amount which, together with all other existing
1974 indebtedness of the district then outstanding, will exceed in total principal amount 2.4% of the
1975 taxable value of taxable property in the district as computed from the last equalized assessment
1976 roll for county purposes made and completed prior to the issuance of the bonds. The taxable
1977 value of all tax equivalent property, as defined in Subsection 59-3-102 (2), shall be included as
1978 a part of the total taxable value of taxable property in the district for purposes of the
1979 limitations. Bonds issued in the manner that they are payable solely from revenues to be
1980 derived from the operation of all or part of the facilities of the district may not be included as
1981 bonded indebtedness of the district for the purpose of this computation. All bonds not payable
1982 solely from revenues shall be the general obligations of the district, and the full faith, credit,
1983 and resources of the district shall be pledged for their payment; and regardless of any
1984 limitations contained elsewhere in the laws of Utah and this part, including Section 17A-2-312 ,
1985 the board of trustees shall cause to be levied annually on all taxable property in the district
1986 taxes sufficient to pay principal and interest on general obligation bonds as principal and
1987 interest fall due, or if the bonds are payable primarily from revenues, then anticipate and make
1988 up any amounts which may be necessary to pay the principal and interest by reason of
1989 deficiencies in revenues. The bonds shall be issued and sold in compliance with Title 11,
1990 Chapter 14, [
1991 Section 53. Section 17A-2-423 is amended to read:
1992 17A-2-423. Resolution calling election for issuing general obligation and revenue
1993 bonds.
1994 (1) If under the foregoing provisions the board is authorized to call an election on the
1995 issuance of the bonds, the board shall adopt a resolution directing that an election be held in the
1996 county or service area, as the case may be, for the purpose of determining whether bonds in the
1997 amount, for the purpose, and with the maximum maturity specified in the resolution, shall be
1998 issued. A proposition for issuing general obligation bonds and a proposition for issuing
1999 revenue bonds, or any combination thereof, may be submitted at the same election.
2000 (2) Adoption of the resolution calling the election, determination of voters'
2001 qualifications, notice and conduct of the election, and the canvass of election results shall be
2002 accomplished in the manner prescribed in Title 11, Chapter 14, [
2003 Government Bonding Act. The board, for purposes of the election, may treat the entire district
2004 as a single precinct or divide the district into several precincts and it may fix such polling
2005 places as it considers appropriate.
2006 Section 54. Section 17A-2-428 is amended to read:
2007 17A-2-428. Tax anticipation notes.
2008 (1) The board of trustees of a service area may issue notes in anticipation of the receipt
2009 of taxes levied under this part. The amount of notes so issued shall not exceed 75% of the tax
2010 revenues and other revenues of the preceding year, and the proceeds shall be applied only to
2011 pay current and necessary expenses and for other purposes for which funds for the service area
2012 may be expended, and there shall be included in the annual levy a tax in connection with which
2013 provision is made for the imposition and collection of sufficient revenues.
2014 (2) Each resolution authorizing the issuance of tax anticipation notes shall:
2015 (a) describe the taxes or revenues in anticipation of which the notes are to be issued;
2016 and
2017 (b) specify the principal amount of the notes, their rate of interest, which may be
2018 variable, and their maturity date, which shall not extend beyond the last day of the fiscal year of
2019 the issuing service area.
2020 (3) Tax anticipation notes shall be issued and sold in such manner and at such price
2021 (whether at, below, or above face value), as the board of trustees shall by resolution determine.
2022 Tax anticipation notes shall be in bearer form, except that the board of trustees may provide for
2023 the registration of the notes in the name of the owner, either as to principal alone, or as to
2024 principal and interest. Tax anticipation notes may be made redeemable prior to maturity at the
2025 option of the board of trustees in the manner and upon the terms fixed by the resolution
2026 authorizing their issuance. Tax anticipation notes shall be executed and shall be in such form
2027 and have such details and terms as shall be provided for in the authorizing resolution.
2028 (4) The provisions of Sections [
2029
2030 11-14-315 , 11-14-316 , 11-14-401 , 11-14-403 , and 11-14-404 shall apply to all tax anticipation
2031 notes issued under this section. In applying these sections to tax anticipation notes, "bond" or
2032 "bonds" as used in these sections shall be deemed to include tax anticipation notes.
2033 Section 55. Section 17A-2-543 is amended to read:
2034 17A-2-543. Contractual powers -- Bond issues -- Elections -- Limitations -- Uses.
2035 Whenever the board of trustees considers it expedient it shall have power, for the
2036 purpose of constructing drains, drainage canals and other required improvements necessary to
2037 drain lands in the district or conserve the public health or welfare, to make a contract or
2038 contracts with the United States providing for the repayment of the principal and such other
2039 sums due thereunder at such times as may be agreed upon, or to issue bonds of the district to
2040 run not less than five years nor more than 40 years, and to bear interest, payable semiannually,
2041 at a rate not exceeding 8% per annum to be called "drainage district bonds," which bonds shall
2042 not be sold for less than 90% of their par value, and the proceeds of which shall be used for no
2043 other purpose than paying the cost of constructing such drains, drainage canals, or other like
2044 work considered necessary to drain lands within the district, or conserve the public health or
2045 welfare. Before such contract or contracts shall be made or bonds shall be issued, the board of
2046 trustees shall request the county legislative body to order, and the county legislative body shall
2047 at once order a special election on the question of the issuance of bonds. The persons
2048 authorized to vote in, the giving of notice, the forms of ballots, and the manner of holding the
2049 election, and canvassing the results of the election, shall be as provided in Title 11, Chapter 14,
2050 [
2051 be paid out of the funds belonging to the drainage district. The terms and times of payment of
2052 the bonds so issued shall be fixed by the board of trustees. The bonds shall be issued for the
2053 benefit of the district authorizing the issue and shall bear the name and number of the district.
2054 The board of trustees shall keep a record of the bonds issued and sold or otherwise disposed of,
2055 and such record will also show the lands embraced in the district. In no case shall the amount
2056 of bonds exceed the benefits assessed. Each bond issued shall show expressly upon its face
2057 that it is to be paid by a tax assessed, levied, and collected on the lands within the drainage
2058 district. The board of trustees shall, by resolution, provide for the issuance and disposal of
2059 such bonds and for the payment of the interest thereon, the creation of a sinking fund for the
2060 ultimate redemption thereof, and for the date and manner of the redemption of the bonds. The
2061 board of trustees may sell or dispose of the bonds either at public or private sale. Before
2062 making any such sale, either private or public, the board of trustees shall give due notice of
2063 their intention to sell or dispose of the bonds, by publishing notice of sale at least once a week
2064 for four consecutive weeks in some newspaper having general circulation in the state and in the
2065 county where the district is situated, and by publishing in any other publication they consider
2066 advisable. The notice shall state that sealed proposals will be received by the board of trustees
2067 at their office, for the purchase of the bonds, until the day and hour fixed by the board of
2068 trustees. At the time appointed the board of trustees shall open the proposals, and award the
2069 purchase of the bonds to the highest responsible bidder, or may reject all bids. In case no bid is
2070 made and accepted as above provided, the board of trustees is hereby authorized to use the
2071 bonds for the construction of any ditches, drain or drains, drainage canal or drainage canals, or
2072 any other required improvement considered necessary to drain lands or for the public health or
2073 welfare.
2074 Section 56. Section 17A-2-622 is amended to read:
2075 17A-2-622. Petition for bond election -- Petition requirements -- Notice and
2076 hearing -- Election regarding issuance of bonds.
2077 (1) After a fire protection district has been created, a petition may be presented to the
2078 fire protection district board of trustees requesting the board to order an election to determine
2079 whether the bonds of the district shall be issued to the amount and for the purpose or purposes
2080 stated in the petition.
2081 (2) (a) Each petition under Subsection (1) shall be signed by 25% or more of the
2082 holders of title of real property, or documentary evidence of title, within the boundaries of the
2083 district whose names appear as such upon the last county assessment roll.
2084 (b) If the petition is signed by all of the holders of title or documentary evidence of title
2085 within the boundaries of the district, a hearing on the petition and election shall be dispensed
2086 with.
2087 (3) (a) The board of trustees shall set a time and place for hearing upon the petition,
2088 which shall be not less than four nor more than six weeks from the date of the filing.
2089 (b) The board of trustees shall publish a notice of the time of the hearing once each
2090 week for three successive weeks, previous to the time of the hearing, in a newspaper published
2091 within the county, or if there is no newspaper so published, then by posting the notice in at
2092 least three public places in the district for a period of 15 days.
2093 (c) Each notice under Subsection (3)(b) shall state that any taxpayer within the district
2094 may appear on the date fixed for the hearing and offer objection to the issuance of bonds of
2095 such district.
2096 (4) (a) At the time and place fixed for the hearing on the petition or at any adjournment
2097 or adjournments of the hearing, which shall not extend the time for determining the petition for
2098 more than 30 days in all from the original date of hearing, the board of trustees shall hear the
2099 petition and all competent and relevant evidence, oral or written, in support of or in objection
2100 to the petition.
2101 (b) The board of trustees shall, after a full hearing, determine whether an election
2102 should be held on the question of issuing the bonds.
2103 (5) Adoption of a resolution calling the election, determination of voters'
2104 qualifications, notice and conduct of the election, and the canvass of election results shall be
2105 accomplished in the manner prescribed in Title 11, Chapter 14, [
2106 Government Bonding Act. The fire protection district board of trustees, for purposes of the
2107 election, may treat the entire district as a single precinct or divide the district into several
2108 precincts and it may fix such polling places as they consider appropriate.
2109 Section 57. Section 17A-2-712 is amended to read:
2110 17A-2-712. Additional powers of board.
2111 (1) Irrigation districts may acquire, purchase, construct, improve, enlarge, and operate
2112 water facilities, electric facilities, or any combination thereof.
2113 (2) Irrigation districts may enter into contracts for the sale of all or a portion of the
2114 electric power generated at a hydroelectric power plant, whether or not the electric power to be
2115 sold is surplus to the needs of the district, and may enter into contracts for the sale of water, for
2116 the periods of time and under the terms and conditions the board considers necessary in order
2117 to accomplish the purposes of the district. Any sale of electric power or water may be for the
2118 period and upon the terms and conditions as may be provided in contracts authorized by the
2119 board and entered into by the district and any purchaser of the electric power or water having a
2120 system for distributing the electric power or water. Any revenues received by the district
2121 pursuant to power or water sale contracts may be used and pledged for the payment of the
2122 principal of and interest and any premium on bonds or notes of the district issued to pay all or
2123 part of the cost of acquiring, constructing, improving, or enlarging facilities, or for any other
2124 lawful purpose of the district.
2125 (3) The boards of trustees of any two or more irrigation districts may, by appropriate
2126 resolutions, enter into agreements with one another, pursuant to Title 11, Chapter 13, Interlocal
2127 Cooperation Act, by which the districts may jointly or cooperatively exercise any of the powers
2128 conferred by this part.
2129 (4) The board may issue bonds of the district, in the manner provided in this section:
2130 (a) to pay for all or part of the costs of the acquisition, construction, improvement, or
2131 enlargement of any facilities and to pay expenses preliminary and incidental thereto;
2132 (b) to pay interest on the bonds during acquisition, construction, improvement, or
2133 enlargement of any facilities; and
2134 (c) to provide for necessary reserves and to pay costs of issuance and sale of the bonds,
2135 including, without limitation, printing, registration, and transfer costs, legal, financial advisor's,
2136 and rating agency fees, insurance premiums, and underwriter's discount.
2137 (5) The board may provide that any bonds issued and sold under this section shall be
2138 payable solely out of a special fund into which the district issuing the bonds shall be obligated
2139 to deposit, as from time to time received, all or a designated portion of the revenues or other
2140 income of the district. Any pledge of revenues creates a lien which:
2141 (a) is perfected and enforceable upon the effective date of the security agreement
2142 pursuant to which the bonds are issued;
2143 (b) has priority as against all parties having claims of any kind in tort, contract, or
2144 otherwise against the district; and
2145 (c) has priority based on the time of the creation of the pledge unless otherwise
2146 provided in the security agreement.
2147 (6) Bonds of the district may be issued and sold in compliance with Title 11, Chapter
2148 14, [
2149 Refunding Bond Act, as applicable, and may be in the form and denominations and have the
2150 provisions and details as are permitted thereby. The bonds and any evidences of participation
2151 interests in the bonds may be issued, executed, authenticated, registered, transferred,
2152 exchanged, and otherwise made to comply with Title 15, Chapter 7, Registered Public
2153 Obligations Act, or any other statute relating to the registration of bonds enacted to meet the
2154 requirements of Section 149(a) of the Internal Revenue Code of 1986, or any similar or
2155 successor federal law, and applicable regulations. Bonds may be issued under the authority of
2156 this section at one time or from time to time. If more than one issue or series of bonds is
2157 delivered under the authority of this section, the bonds of the respective issue or series shall
2158 have the priorities of payment as provided in the proceedings authorizing the bonds.
2159 (7) Any resolution, indenture, agreement, or other document authorizing bonds may
2160 contain covenants with the future holders of the bonds as to:
2161 (a) the management and operation of the facilities of the irrigation district, including
2162 the facilities acquired, constructed, improved, enlarged, or operated pursuant to this section;
2163 (b) the imposition and collection of use charges;
2164 (c) the disposition of the revenues;
2165 (d) the issuance of future bonds and the creation of future liens and encumbrances
2166 against these facilities and the revenues thereof;
2167 (e) the carrying of insurance on these facilities and the disposition of the proceeds of
2168 insurance;
2169 (f) the sale, disposal, or alienation of these facilities; and
2170 (g) other pertinent matters deemed necessary or proper by the board to assure the
2171 merchantability of the bonds. These covenants and agreements may not be inconsistent with
2172 this section.
2173 (8) The district may undertake in the resolution, indenture, agreement, or other
2174 document authorizing bonds to make the revenues of the facilities sufficient to pay the expense
2175 of their operation and maintenance, and may undertake to make the revenues or net revenues of
2176 the facilities sufficient to produce in each year an amount in excess of actual requirements for
2177 principal of and interest on the bonds in that year as the board may consider necessary to assure
2178 the highest marketability of the bonds.
2179 (9) Any resolution, indenture, agreement, or other document authorizing bonds may
2180 provide that the bonds will recite that they are issued under authority of this part. The recital
2181 will conclusively import full compliance with all of the provisions of this part, and all bonds
2182 issued containing the recital will be incontestable for any cause whatsoever after their delivery
2183 for value.
2184 (10) When a district has issued bonds and pledged for the payment thereof any
2185 revenues of the district, the district shall establish and collect use charges in that amount and at
2186 those rates which will be fully sufficient at all times to pay the expenses of operating and
2187 maintaining these facilities, to provide a special fund sufficient to assure the prompt payment
2188 of principal of and interest on the bonds as principal and interest fall due, and to provide funds
2189 for reserves and contingencies and for a depreciation fund for repairs, extensions, and
2190 improvements to these facilities as considered necessary to assure adequate and efficient
2191 service, all as may be required by the bond resolution. No board or commission other than the
2192 board of trustees of the district has authority over or is required to approve the making or fixing
2193 of use charges or the acquisition of property by the district or the issuance of its bonds.
2194 (11) (a) If an irrigation district board determines that the interests of the district require
2195 the issuance of bonds or the making of a contract with the United States, the board will, except
2196 as provided in Subsection (13), adopt a resolution directing that an election be held to
2197 determine whether bonds may be issued or a contract with the United States may be entered
2198 into for the purposes specified in the resolution.
2199 (b) The following are subject to the conditions provided in Title 11, Chapter 14, [
2200
2201 (i) adoption of the resolution calling the election;
2202 (ii) giving notice of the election;
2203 (iii) conduct of the election;
2204 (iv) determination of voters' qualifications; and
2205 (v) canvassing of election results.
2206 (12) In designating the voting places for purposes of the election, the board may treat
2207 the entire district as a single precinct or divide the district into precincts.
2208 (13) No election is required under this section prior to the issuance of bonds or the
2209 making of a contract with the United States except as otherwise required by the constitution or
2210 Subsection (14).
2211 (14) Notwithstanding anything to the contrary in this section or Title 11, Chapter 14,
2212 [
2213 other than bonds issued to refund outstanding bonds, or enter into a contract with the United
2214 States unless:
2215 (a) the issuance of the bonds or the making of the contract has been approved at an
2216 election called and held as provided in this section; or
2217 (b) the board of trustees:
2218 (i) provides notice of a public hearing on whether to issue the bonds or enter into the
2219 contract by:
2220 (A) publishing notice in a newspaper published in or of general circulation in the
2221 district at least seven days prior to the public hearing which sets forth:
2222 (I) the maximum principal amount and the purpose of the proposed bond issue or
2223 contract;
2224 (II) the date, time, and place of the public hearing;
2225 (III) when and where written comments regarding the bonds or the contract may be
2226 filed; and
2227 (IV) whether the district reasonably expects that paying amounts due on the bonds or
2228 under the contract will result in a substantial increase in use charges; and
2229 (B) if the district reasonably expects that paying amounts due on the bonds or under the
2230 contract will increase use charges by more than $15 per connection per year, mailing notice to
2231 every household containing a qualified voter who is eligible to vote on the bonds or the
2232 contract, at least seven days but not more than 30 days before the public hearing, on a
2233 minimum three-inch by five-inch postcard or a voter information pamphlet prepared by the
2234 governing body that includes the information required by Subsection (14)(b)(i)(A);
2235 (ii) holds a public hearing on the date and at the time and place specified in the notice
2236 of public hearing, provided that the hearing may be adjourned from time to time to a fixed
2237 future time and place;
2238 (iii) considers at the public hearing all comments that have been filed or stated at the
2239 hearing relating to the bonds or the contract;
2240 (iv) after considering all comments received, adopts a resolution during or after the
2241 meeting at which the public hearing is held, declaring the intention of the board of trustees to
2242 issue bonds or enter into the contract; and
2243 (v) directs that notice of the district's intention to issue bonds or enter into the contract
2244 be published once in a newspaper of general circulation in the district stating:
2245 (A) the maximum principal amount and purpose of the proposed bond issue or
2246 contract;
2247 (B) when and where petitions may be filed requesting the calling of an election to
2248 determine whether the bonds or the contract should be authorized; and
2249 (C) when and where a form of petition requesting the calling of an election may be
2250 obtained from the district.
2251 (15) If, within 30 days after publication of the notice of intention, a petition is filed
2252 with the secretary, signed by not less than 5% of the qualified electors of the district, requesting
2253 that an election be called to authorize the contract or the bonds, then the board shall call and
2254 hold an election as provided in this section before the bonds are issued or the contract is
2255 entered into.
2256 (16) If no petition is filed, or if the number of signatures filed within the 30-day period
2257 is less than the required number, the board of trustees may proceed to issue the bonds or enter
2258 into the contract.
2259 Section 58. Section 17A-2-821 is amended to read:
2260 17A-2-821. Resolution or ordinance proposing obligations or indebtedness --
2261 Election.
2262 If the board of trustees of any metropolitan water district incorporated under this part
2263 determines, by resolution or ordinance adopted by a vote of a majority of the aggregate number
2264 of votes of all the members of the board of trustees, that the interests of the district and the
2265 public interest or necessity demand the acquisition, construction, or completion of any source
2266 of water supply, water, waterworks or other improvement, works or facility, or the making of
2267 any contract with the United States or other persons or corporations, or the incurring of any
2268 preliminary expense, necessary or convenient to carry out the objects or purposes of the district
2269 wherein an indebtedness or obligation shall be created to satisfy which shall require a greater
2270 expenditure than the ordinary annual income and revenue of the district shall permit, the board
2271 of trustees may order the submission of the proposition of incurring the obligation or bonded or
2272 other indebtedness, for the purposes set forth in the resolution or ordinance, to the qualified
2273 electors of the district at an election held for that purpose. The resolution or ordinance calling
2274 the election shall be adopted, the notice of the election shall be given, the election shall be held,
2275 the voters' qualifications shall be determined, and the results of the elections canvassed in the
2276 manner and subject to such conditions as are provided in Title 11, Chapter 14, [
2277
2278 required and the provision for the holding of the election may be included within the same
2279 resolution or ordinance, which resolution or ordinance, in addition to the declaration of public
2280 interest or necessity, shall recite the objects and purposes for which the indebtedness is
2281 proposed to be incurred, the estimated cost of the public works or improvements, or the
2282 estimated amount of preliminary expenses, as the case may be, and the maximum amount of
2283 the principal of the indebtedness to be incurred.
2284 Section 59. Section 17A-2-824 is amended to read:
2285 17A-2-824. Revenue indebtedness or general obligation indebtedness --
2286 Procedure for incurring -- Terms.
2287 (1) (a) Any district which has determined to issue bonds shall issue its bonds under
2288 Title 11, Chapter 14, [
2289 acquisition through construction, purchase, or otherwise and for the improvement or extension
2290 of any properties necessary or desirable in the obtaining, treatment, and distribution of water
2291 and any other properties which the district is authorized to own under this part. Bonds may be
2292 issued or a contract indebtedness or obligation may be created:
2293 (i) payable solely from the revenues of the district other than the proceeds of taxes, in
2294 which case they shall be known for purposes of this section as "revenue indebtedness";
2295 (ii) payable solely from the proceeds of taxes, in which case they shall be known for
2296 purposes of this section as "general obligation indebtedness"; or
2297 (iii) payable from both operating revenues and the proceeds of taxes, in which case
2298 they shall be known for purposes of this section as "general obligation revenue indebtedness."
2299 (b) The full faith and credit of the district shall be pledged to the payment of its general
2300 obligation and general obligation revenue indebtedness, and taxes shall be levied fully
2301 sufficient to pay that part of the principal of and interest on general obligation revenue
2302 indebtedness as the revenues of the district pledged for this purpose may not be sufficient to
2303 meet.
2304 (c) General obligation indebtedness and general obligation revenue indebtedness may
2305 be issued only after approval at an election as provided in Section 17A-2-821 .
2306 (d) Revenue indebtedness may be similarly submitted at an election as provided in
2307 Section 17A-2-821 if considered desirable by the board of trustees, but nothing in this part
2308 shall be construed to require such submission.
2309 (e) Refunding bonds may be issued without approval at an election.
2310 (2) Revenue indebtedness and general obligation revenue indebtedness may be payable
2311 from and secured by the pledge of all or any specified part of the revenues to be derived by the
2312 district from its water supply and the operation of its water facilities and other properties. It is
2313 the duty of the board of trustees to impose for water and water services rendered thereby, rates
2314 fully sufficient to carry out all undertakings contained in the resolution authorizing the bonds or
2315 the contract. The board of trustees may in the resolution agree to pay the expenses of
2316 maintaining and operating the properties of the district from the proceeds of the ad valorem
2317 taxes authorized in Subsection 17A-2-818 (6) and may enter into those covenants with the
2318 future holders of the bonds or the other contracting party as to the management and operation
2319 of the properties, the imposition and collection of fees and charges for water and services
2320 furnished thereby, the disposition of the fees and revenues, the issuance of future bonds or the
2321 creation of future contract indebtedness or obligations and the creation of future liens and
2322 encumbrances against the properties and the revenues from them, the carrying of insurance on
2323 the properties, the keeping of books and records, the deposit, securing, and paying out of the
2324 proceeds of the bonds, and other pertinent matters, as considered proper by the board of
2325 trustees to assure the marketability of the bonds or the making of the contract. The board of
2326 trustees may undertake in the resolution to make the revenues of the properties sufficient to pay
2327 all or any specified part of the expense of the operation and maintenance of them. Covenants
2328 may be contained in the resolution with respect to the manner of the imposition and collection
2329 of water charges, and provision also may be made in it for the appointment of a receiver for the
2330 properties of the district in the event of a default by the district in carrying out the covenants
2331 and agreements contained in the resolution. Provision may also be made in the resolution for a
2332 receiver to perform those services with respect to the holding and paying out of the revenues of
2333 the district and the proceeds of the bonds, and otherwise, as may be considered advisable.
2334 Maintenance and operation costs and expenses as referred to in this section shall be construed
2335 to include any payments made by the district to the United States of America, to any water
2336 users' association, or to any other public or private entity for the cost of operating facilities used
2337 in providing water for the district.
2338 Section 60. Section 17A-2-826 is amended to read:
2339 17A-2-826. Sale of bonds.
2340 Bonds issued under this part shall be sold in compliance with the provisions of Title 11,
2341 Chapter 14, [
2342 Section 61. Section 17A-2-1037 is amended to read:
2343 17A-2-1037. Elections.
2344 All district elections shall be held in accordance with the provisions of the elections
2345 code of the state [
2346 general law cities in so far as the same are not in conflict with this part; provided all elections
2347 upon the issuance of bonds of a district shall be called, held, and conducted pursuant to the
2348 provisions of Title 11, Chapter 14, [
2349 and the provisions of the election code shall not be applicable to any such bond election.
2350 Section 62. Section 17A-2-1058 is amended to read:
2351 17A-2-1058. District may issue bonds.
2352 Any district organized under this part may, in the manner and subject to the limitations
2353 and restrictions contained in Title 11, Chapter 14, [
2354 Bonding Act, authorize, issue and dispose of its negotiable bonds for purposes of paying all or
2355 part of the cost of acquiring, improving, or extending any one or more improvements, facilities,
2356 or property authorized to be acquired under this part.
2357 Section 63. Section 17A-2-1312 is amended to read:
2358 17A-2-1312. General obligation bonds authorized by petition of property owners
2359 -- Contest.
2360 (1) With respect to any service district established under this part, if there is no
2361 individual residing in the service district, such that compliance with the election requirements
2362 of [
2363 otherwise impossible, then, 75% of the owners of real property located in the district, as shown
2364 on the most recent assessment roll of the county or municipality, as the case may be, may by
2365 written petition require the governing body of the county or municipality which established the
2366 service district to issue general obligation bonds pledging the full faith and credit of the district
2367 in an amount which may lawfully be issued by the district but not to exceed the amount set
2368 forth in the petition. Except for the election provisions of Title 11, Chapter 14, [
2369
2370 issued in accordance with Title 11, Chapter 14, [
2371 Bonding Act. Any such petition to require issuance of bonds shall be equivalent to and have
2372 the same force and effect as an election approving the issuance of the bonds by a majority of
2373 the qualified electors of the district.
2374 (2) Upon receiving the petition described in Subsection (1), the governing body of the
2375 county or municipality which established the district shall proceed to issue the bonds in
2376 accordance with Title 11, Chapter 14, [
2377 (3) The determination by the governing body that 75% of the owners of real property
2378 located in the district have duly filed a written petition requiring the issuance of bonds as
2379 provided in Subsection (1), shall be conclusive in any action or proceeding involving the
2380 validity of the petition or the district's authority to issue the bonds instituted after the expiration
2381 of the period provided in Subsection (4), for the filing of actions contesting the validity of the
2382 bonds and after the date of delivery of and payment for any part of the bonds.
2383 (4) When the validity of any bond issue under this section is contested, the plaintiff or
2384 plaintiffs shall, within 40 days after the validity of the petition has been declared by the
2385 governing body, file with the clerk of the district court of the county in which the district is
2386 located, a verified written complaint setting forth specifically:
2387 (a) the name of the party contesting the issuance of the bonds, and that he is an owner
2388 of property within the district; and
2389 (b) the grounds of such contest. No such contest may be maintained and the issuance
2390 of the bonds may not be set aside or held invalid unless such a complaint is filed within the
2391 period prescribed in this section.
2392 Section 64. Section 17A-2-1315 is amended to read:
2393 17A-2-1315. Powers of improvement districts within special districts.
2394 (1) In addition to all other rights, powers, and authority granted by law or by other
2395 provisions of this part, a service district established by a county under this part may organize an
2396 improvement district under Chapter 3, Part 2. This improvement district has all the rights,
2397 powers, and authority of an improvement district otherwise organized under Chapter 3, Part 3,
2398 except:
2399 (a) notwithstanding Subsection 17A-3-228 (4), any bonds issued under Chapter 3, Part
2400 2, need comply only with the requirements of Section [
2401 use of manual and facsimile signatures;
2402 (b) the governing authority of the service district may act in the same capacity as the
2403 governing body of a county with respect to all actions required to be taken in the creation or
2404 administration of an improvement district under Chapter 3, Part 2; and
2405 (c) notwithstanding Subsection 17A-3-204 (1), an improvement district created by a
2406 service district may be organized to include any incorporated or unincorporated area of the
2407 county and may cause improvements to be made within any incorporated or unincorporated
2408 area of the county, and the consent of the governing body of the municipality in which an
2409 incorporated area lies is not required prior to the establishment of an improvement district that
2410 includes all or part of that incorporated area.
2411 (2) In addition to all other rights, powers, and authority granted by law or by other
2412 provisions of this part, a service district established by a municipality under this part may
2413 organize an improvement district under Chapter 3, Part 3. This improvement district has all the
2414 rights, powers, and authority of an improvement district otherwise organized under Chapter 3,
2415 Part 3, except that:
2416 (a) notwithstanding Section 17A-3-328 , any bonds issued under Chapter 3, Part 3, need
2417 comply only with the requirements of Section [
2418 manual and facsimile signatures;
2419 (b) the governing authority of the service district may act in the same capacity as the
2420 governing body of a municipality with respect to all actions required to be taken in the creation
2421 or administration of an improvement district under Chapter 3, Part 3; and
2422 (c) notwithstanding Subsection 17A-3-313 (1), assessments for improvements in an
2423 improvement district organized under Chapter 3, Part 3, may include assessments for all
2424 interest on any bonds issued.
2425 Section 65. Section 17A-2-1316 is amended to read:
2426 17A-2-1316. Borrowing power -- Issuance of bonds and notes -- Use of proceeds.
2427 (1) A service district may borrow money and incur indebtedness, issuing its bonds or
2428 notes therefor, including, without limitation:
2429 (a) bonds payable in whole or in part from taxes levied on the taxable property in the
2430 service district;
2431 (b) bonds payable from revenues derived from the operation of revenue-producing
2432 facilities of the service district;
2433 (c) bonds payable from both such revenues and taxes;
2434 (d) guaranteed bonds, payable in whole or in part from taxes levied on the taxable
2435 property in the service district;
2436 (e) tax anticipation notes;
2437 (f) bond anticipation notes;
2438 (g) refunding bonds; and
2439 (h) bonds payable in whole or in part from mineral lease payments as provided in
2440 Section [
2441 (2) Tax anticipation notes are notes issued in anticipation of the collection of taxes and
2442 other revenues of a service district which are due and payable in not more than one year from
2443 their date of issue and, together with all other such notes then outstanding, do not exceed the
2444 estimated amount of taxes and other revenues to be collected from the date of issue until
2445 maturity.
2446 (3) Bond anticipation notes are notes issued in anticipation of the receipt of the
2447 proceeds of bonds of the service district.
2448 (4) All these bonds and notes shall be issued and sold in the manner, at either public or
2449 private sale, shall be in the form, and signed by the person or persons, who may, but need not,
2450 be officers of the county or municipality which established the service district and generally
2451 shall be issued in the manner and with the details as is provided for in proceedings of the
2452 governing authority of the service district authorizing the issuance of the bonds or notes; but all
2453 these bonds and notes and the interest on them shall be exempt from all taxation in this state,
2454 except for the corporate franchise tax, and all these bonds and notes may contain those terms
2455 and provisions as are permitted by and shall be issued in compliance with Title 11, Chapter 14,
2456 [
2457 (5) The proceeds of bonds or notes issued under the authority of this part shall be used
2458 to pay the costs of acquisition or construction of service district facilities or the providing of
2459 services including, without limitation:
2460 (a) all costs of planning, designing, acquiring, and constructing a facility, including
2461 architectural, planning, engineering, legal, and fiscal advisor's costs;
2462 (b) all costs incident to the authorization and issuance of the bonds or notes, including
2463 accountants' fees, attorneys' fees, financial advisors' fees, underwriting fees, including
2464 underwriting fees or bond discount, and other professional services and printing costs;
2465 (c) interest estimated to accrue on bonds or notes for a reasonable time before, during,
2466 and for a reasonable time after the completion of the acquisition or construction of the facilities
2467 or services; and
2468 (d) all amounts deemed necessary to establish one or more bond reserves and
2469 maintenance, repair, replacement, contingency funds and accounts, and all amounts necessary
2470 to provide working capital for the facility.
2471 Section 66. Section 17A-2-1322 is amended to read:
2472 17A-2-1322. Tax levy and bonds -- Approval by majority of electors voting in
2473 election -- Procedure for election.
2474 (1) The governing authority of a county or municipality which has established a service
2475 district may levy a tax on all taxable property within the service district in addition to all other
2476 taxes on such property levied or imposed by the county or municipality or by any other public
2477 corporation, district, or political subdivision in which the service district is located, and may
2478 also issue bonds payable in whole or in part from these taxes. No tax may be levied and no
2479 bonds or guaranteed bonds shall be issued, however, unless authorized, except as otherwise
2480 provided in Section 17A-2-1325 , by a majority of the qualified electors of the service district
2481 voting at an election for that purpose held as provided in this section.
2482 (2) The proposition to levy the tax or to issue the bonds shall be submitted to the
2483 qualified electors of the service district at an election called and held and for which notice is
2484 given in the same manner as is provided in Title 11, Chapter 14, [
2485 Government Bonding Act, for the holding of bond elections. The proposition shall state the
2486 purpose or purposes for which the taxes are to be levied or the bonds are to be issued. In
2487 addition, a proposition for the issuance of bonds shall state the maximum amount of bonds to
2488 be issued, the maximum number of years from their respective dates for which the bonds may
2489 run, and, if the bonds are to be payable in whole or in part from taxes, that fact and that taxes
2490 may be levied on all taxable property in the service district to pay the principal of and interest
2491 on the bonds. The purpose or purposes may be stated in general terms and need not specify the
2492 particular projects or services for which the taxes are to be levied or the bonds are to be issued
2493 nor the specific amount of the proceeds of the taxes or of the bonds to be expended for each
2494 project or service. If bonds are to be payable in part from tax proceeds and in part from the
2495 operating revenues of the service district or from any combination of them, the proposition
2496 shall so indicate but need not specify how the bonds are to be divided as to source of payment.
2497 If the bonds are to be issued as guaranteed bonds, the proposition shall also clearly state that
2498 fact together with the name or names of the guarantors. A proposition for the levy of taxes and
2499 for the issuance of bonds may be combined as a single proposition.
2500 (3) (a) A tax levied under this section shall be the sole source of funding for a special
2501 service district that provides jail service as provided in Subsection 17A-2-1304 (1)(a)(x).
2502 (b) Each tax levied under this section for a special service district that provides jail
2503 service as provided in Subsection 17A-2-1304 (1)(a)(x) shall be considered to be levied by the
2504 county for purposes of the county's tax limitation under Section 59-2-908 .
2505 Section 67. Section 17A-2-1414 is amended to read:
2506 17A-2-1414. Who may enter into contracts -- Permissible purposes of contracts --
2507 Agreements and leases -- Elections for water purchase contracts.
2508 (1) Any water conservancy district and any incorporated municipality located within or
2509 without the boundaries of the district or other district created under any law of this state are
2510 expressly authorized and empowered to enter into contracts with each other and with any other
2511 person or corporation, public or private, for any of the following purposes:
2512 (a) the joint operation of water facilities owned by any district or municipality;
2513 (b) the exchange of water, water rights, or facilities;
2514 (c) the leasing of water or water facilities; or
2515 (d) the sale of water.
2516 (2) (a) Any agreement about the operation or use of water facilities owned by a
2517 municipality or district by another municipality or district, the joint operation of facilities, or
2518 the lease of water or water facilities, may provide for the joint use of water facilities owned by
2519 one of the contracting parties under appropriate arrangements for reasonable compensation.
2520 (b) Any agreement may provide for the renting or loan of water by one contracting
2521 party to the other or for the sale of water by one party and its purchase by another. No
2522 limitation contained in any existing law requiring the water of any district to be supplied to its
2523 own residents on a priority basis shall be applicable to any contract made under this section.
2524 (c) Any contract for the sale of water may run for a term of years as may be specified.
2525 The contract may require the purchasing party to pay for a minimum amount of water annually,
2526 provided the water is available, without regard to actual taking or use. The contract may
2527 provide for the payment for water sold or contracted to be sold from any of the following
2528 sources of revenue:
2529 (i) the general funds or other funds of the purchasing municipality or district;
2530 (ii) the proceeds of class B assessments imposed under the Water Conservancy Act;
2531 (iii) the proceeds of water distributed and sold through the distribution system of the
2532 purchasing district or municipality; or
2533 (iv) any combination of these sources of payment.
2534 (d) The governing body of any municipality agreeing to purchase water under a
2535 contract, for the purpose of complying with any pertinent constitutional requirement or for any
2536 other reason, may call an election for that purpose. The election shall be conducted in the
2537 manner provided in Title 11, Chapter 14, [
2538 Act.
2539 Section 68. Section 17A-2-1439 is amended to read:
2540 17A-2-1439. Contracts providing for payment in installments -- Issuance and sale
2541 of bonds -- Sinking fund -- Covenants -- Default -- Revenue obligations -- Refunding
2542 bonds.
2543 (1) (a) (i) To pay for construction, operation, and maintenance of works, and expenses
2544 preliminary and incidental to them, the board may enter into contracts with the United States of
2545 America or its agencies, providing for payment in installments.
2546 (ii) To pay for all or part of the cost of the construction or acquisition of any works, to
2547 pay for the improvement and extension of them, to pay expenses preliminary and incidental to
2548 them, to pay interest on the bonds during acquisition and construction, to provide for necessary
2549 reserves, and to pay costs of issuance and sale of the bonds (including, without limitation,
2550 printing, registration and transfer costs, legal fees, financial advisor's fees, and underwriter's
2551 discount), the board may issue the bonds of the district as provided in this section.
2552 (b) The indebtedness or obligation represented by any bonds issued by or any contract
2553 entered into by the board may be payable in whole or in part from all or part of the revenues
2554 derived by the district from the operation of all or any designated portion of its works, from the
2555 proceeds of assessments and taxes levied under this part, or from any combination of those
2556 revenues, assessments, and taxes.
2557 (c) The indebtedness or obligation represented by any bonds issued by or any contract
2558 entered into by the board may be incurred for the acquisition, construction, or both, of all or
2559 part of any works, for the improvement or extension of any works, or for a system of works for
2560 the distribution of water or for the treatment of water or both, whether or not the works of the
2561 district so acquired, constructed, improved, or extended include a source of water supply.
2562 (d) (i) These bonds shall be issued and sold in compliance with Title 11, Chapter 14,
2563 [
2564 denominations and have provisions and details permitted by Title 11, Chapter 14, [
2565
2566 or otherwise and contract payment installments shall fall due at any time or times not later than
2567 50 years from their date.
2568 (ii) The bonds and any evidences of participation interests in the bonds may be issued,
2569 executed, authenticated, registered, transferred, exchanged, and otherwise made to comply with
2570 Title 15, Chapter 7, Registered Public Obligations Act, or any other statute relating to the
2571 registration of bonds enacted to meet the requirements of Section 103 of the Internal Revenue
2572 Code of 1954, as amended, or any similar or successor federal law, and applicable regulations.
2573 (2) (a) Bonds may be issued hereunder at one time or from time to time.
2574 (b) If more than one issue or series of bonds is delivered hereunder, the bonds of the
2575 respective issues or series shall have priorities of payment as provided in the proceedings
2576 authorizing the bonds.
2577 (3) (a) Any resolution authorizing the issuance of bonds or the entering into of a
2578 contract indebtedness or obligation payable in installments hereunder shall provide for the
2579 creation of a sinking fund into which shall be paid from the revenues, assessments, and taxes,
2580 any or all, pledged to the payment in the authorizing resolution sums fully sufficient to pay the
2581 principal of and interest on the bonds or on the contract indebtedness or obligation and to
2582 create a reserve for contingencies as required by the resolution.
2583 (b) Any resolution so authorizing bonds or the entering into of a contract indebtedness
2584 or obligation may contain those covenants with the future holders of the bonds or the other
2585 contracting party as to the management and operation of the properties and works of the
2586 district, the imposition and collection of fees and charges, including taxes and assessments, for
2587 the water and services furnished thereby, the disposition of the fees and revenues, the issuance
2588 of future bonds and the incurring of future contract indebtedness or obligations and the creation
2589 of future liens and encumbrances against the works and the revenues thereof, the carrying of
2590 insurance on the works and the disposition of the proceeds of insurance, the sale, disposal, or
2591 alienation of the works, and other pertinent matters considered necessary or proper by the board
2592 to assure the merchantability of the bonds or the execution of the contract.
2593 (c) These covenants and agreements may not be inconsistent with this section.
2594 (4) (a) It may be provided in the resolution that any holder of the bonds or any
2595 contracting party may by appropriate legal action compel performance of all duties required of
2596 the board and the officials of the district by this part and the resolution authorizing the bonds or
2597 contract.
2598 (b) If any bond issued or any contract entered into hereunder is permitted to go into
2599 default as to any installment of principal or interest, any court of competent jurisdiction may,
2600 pursuant to the application of the holder of any bond or of the other contracting party, appoint a
2601 receiver to operate the works of the district and to collect and distribute the revenues thereof
2602 under the resolution, this part, and as the court may direct.
2603 (5) (a) When the district has issued bonds or entered into a contract and pledged any
2604 revenues of the works for the payment of them as provided in this part, the district shall impose
2605 and collect fees and charges for water and services furnished by the works in that amount and
2606 at those rates fully sufficient at all times (in conjunction with the proceeds of available taxes
2607 and assessments if the bonds or contract indebtedness or obligation are also payable in part
2608 from the proceeds of assessments and taxes levied under this part) to pay the expenses of
2609 operating and maintaining the works, to provide a sinking fund sufficient to assure the prompt
2610 payment of principal of and interest on the bonds or contract indebtedness or obligation as
2611 principal and interest fall due, and to provide those funds for reserves and contingencies and
2612 for a depreciation fund for repairs, extensions, and improvements to the works as considered
2613 necessary to assure adequate and efficient service, all as may be required by the resolution.
2614 (b) No board or commission other than the board of trustees of the district has authority
2615 over or is required to approve the making or fixing of fees and charges, the acquisition of
2616 property by the district, the issuance of its bonds, or the entering into of a contract.
2617 (6) (a) The board of any district that issues or has issued any bonds under this part, or
2618 that enters or has entered into any contracts under this part, may issue bonds hereunder for the
2619 purpose of refunding all or any part of the outstanding bonds, or the outstanding indebtedness
2620 or obligation represented by the contracts, or in part for the purpose of the refunding and in part
2621 for the purpose of acquiring, constructing, improving, or extending works for the district.
2622 (b) If bonds are issued solely for refunding purposes, the election required by Section
2623 17A-2-1440 is not a condition precedent to the issuance of the bonds.
2624 (c) Refunding bonds so authorized:
2625 (i) may be sold and the proceeds thereof applied to or deposited in an escrow and
2626 invested pending the retirement of the outstanding bonds; or
2627 (ii) may be delivered in exchange for the outstanding bonds.
2628 (d) The refunding bonds shall be authorized and secured in the manner herein provided
2629 for the issuance and securing of other bonds and may, but are not required to, have the same
2630 source of security and payment as the bonds refunded.
2631 (7) (a) If bonds have been issued or a contract indebtedness or obligation has been
2632 incurred hereunder payable in whole or in part from revenues to be derived from supplying
2633 water to the inhabitants of territory which was not at the time of the issuance of the bonds or
2634 the entering into of the contract contained within the corporate limits of any municipality or
2635 any other district created for the purpose of supplying water to the territory, the district shall
2636 thereafter be the sole public corporation or political subdivision authorized to supply water to
2637 this area.
2638 (b) No municipal corporation or other district into which any part of the territory is
2639 incorporated or included has authority either to supply water to the inhabitants of the
2640 corporation or district or to grant a franchise for the supplying of the water.
2641 (c) Nothing contained in this Subsection (7) prevents the modification of this
2642 restriction contained by the district if modification does not in any way jeopardize the prompt
2643 payment of principal of and interest on the bonds of the district then outstanding or of the
2644 payment of installments of indebtedness or obligation under a contract.
2645 Section 69. Section 17A-2-1440 is amended to read:
2646 17A-2-1440. Election for issuance of bonds or incurring contract indebtedness or
2647 obligation -- When an election is not required.
2648 (1) If the majority of a water conservancy district board approves a resolution
2649 determining that the interests of the district and the public interest or necessity demand the
2650 acquisition, construction, or completion of any water supply, waterworks, improvements, or
2651 facilities, or the making of any contract with the United States or other persons or corporations,
2652 public or private, to carry out the purposes of the district, wherein an indebtedness or obligation
2653 is created, to satisfy which requires an expenditure greater than the ordinary annual income and
2654 revenue of the district, the board shall adopt a resolution directing that an election be held to
2655 determine whether bonds shall be issued, or an indebtedness or obligation under a contract
2656 shall be incurred in the amount and for the purposes specified in the resolution.
2657 (2) The following shall be subject to the conditions provided in Title 11, Chapter 14,
2658 [
2659 (a) adoption of the resolution calling the election;
2660 (b) giving notice of the election;
2661 (c) conduct of the election;
2662 (d) determination of voters' qualifications; and
2663 (e) canvassing of election results.
2664 (3) The board may, for purposes of the election:
2665 (a) treat the entire district as a single precinct or divide the district into precincts; and
2666 (b) fix polling places.
2667 (4) If bonds or the indebtedness or obligations under a contract are payable solely from
2668 revenues derived from the operation of all or any part of the district's works, no election is
2669 required under this section prior to issuance of the bonds or the entering into of the contract,
2670 except as provided in Subsection (5).
2671 (5) No district may issue bonds or incur an indebtedness or obligation under a contract
2672 payable solely from revenues unless:
2673 (a) the issuance of the bonds or the incurring of the contract indebtedness or obligation
2674 has been approved at an election called and held as provided in this section; or
2675 (b) the board of trustees adopts a resolution declaring the intention of the district to
2676 issue bonds or incur a contract indebtedness or liability payable solely from revenues in the
2677 amount and for the purpose provided in the resolution and directs that notice of this intention
2678 be published once in a newspaper of general circulation in the district.
2679 (i) The notice of intention shall set forth:
2680 (A) the amount and purpose of the proposed bond issue or contract; and
2681 (B) when and where petitions may be filed requesting the calling of an election to
2682 determine whether the bonds may be issued or the contract indebtedness or obligation may be
2683 incurred.
2684 (ii) The resolution of the board shall specify the form of the petitions.
2685 (iii) If, within 30 days after the publication of the notice of intention, a petition is filed
2686 with the secretary of the board, signed by not less than 5% of the qualified electors of the
2687 district, requesting that an election be called to authorize the issuance of the bonds or the
2688 incurring of the contract indebtedness or liability payable solely from revenues, then the board
2689 shall proceed to call and hold an election as provided in this section. The qualified electors of
2690 the district shall be certified to the board, prior to the adoption of the resolution, by the clerks
2691 of the counties in which portions of the district are located.
2692 (iv) If no petition is filed, or if the number of signatures filed within the 30-day period
2693 is less than the required number, the board of trustees may adopt the resolution and proceed to
2694 issue the bonds or enter into the contract.
2695 Section 70. Section 17A-2-1823 is amended to read:
2696 17A-2-1823. Bond issuance.
2697 (1) Any regional service area may:
2698 (a) in accordance with Title 11, Chapter 14, [
2699 Bonding Act, authorize, issue, and dispose of its negotiable bonds for the purpose of paying all
2700 or part of the cost of acquiring, improving, or extending any improvement, facility, or property
2701 authorized to be acquired under this part;
2702 (b) in accordance with Title 11, Chapter 27, Utah Refunding Bond Act, authorize,
2703 issue, and dispose of its bonds; and
2704 (c) enjoy the benefits of Title 11, Chapter 30, Utah Bond Validation Act.
2705 (2) A regional service area may issue bonds and anticipated notes based upon revenue
2706 from property taxes, user charges, and other revenues and federal, state or local grants, borrow
2707 money, and incur debts as authorized by law or this part. A regional service area may satisfy
2708 any indebtedness as provided in this part or in any other applicable law and may, for purposes
2709 of satisfaction of this indebtedness, incur new obligations of the type satisfied.
2710 (3) All elections for the issuance of bonds of a regional service area shall be called,
2711 held, and conducted under the provisions of Title 11, Chapter 14, [
2712 Government Bonding Act. The provisions of the election code shall not be applicable to the
2713 bond election.
2714 (4) If the board of trustees provides in any resolution authorizing revenue bonds for the
2715 creation of a reserve fund to assure the prompt payment of principal and interest, the board may
2716 provide for the accumulation of this fund not only from the revenues of the facilities, but also
2717 from a part of the bond proceeds it may consider advisable.
2718 Section 71. Section 17A-2-1825 is amended to read:
2719 17A-2-1825. Recital in bonds -- Effect.
2720 The resolution authorizing the issuance of any bonds of a regional service area may
2721 provide that the bonds recite that they are issued under the authority of this part. Any bonds
2722 issued containing this recital shall be incontestable for any cause whatsoever after their delivery
2723 for value and the recital shall conclusively establish full compliance with all of the provisions
2724 of this part and Title 11, Chapter 14, [
2725 Section 72. Section 17B-2-608 is amended to read:
2726 17B-2-608. Resolution approving or rejecting withdrawal -- Criteria for approval
2727 or rejection -- Terms and conditions.
2728 (1) (a) On or before the date of the board meeting next following the public hearing
2729 under Section 17B-2-606 , but in no case later than 90 days after the public hearing or, if no
2730 hearing is held, within 90 days after the filing of a petition under Section 17B-2-603 , the board
2731 of trustees of the local district in which the area proposed to be withdrawn is located shall
2732 adopt a resolution:
2733 (i) approving the withdrawal of some or all of the area from the local district; or
2734 (ii) rejecting the withdrawal.
2735 (b) Each resolution approving a withdrawal shall:
2736 (i) include a legal description of the area proposed to be withdrawn;
2737 (ii) state the effective date of the withdrawal; and
2738 (iii) set forth the terms and conditions under Subsection (5), if any, of the withdrawal.
2739 (c) Each resolution rejecting a withdrawal shall include a detailed explanation of the
2740 board of trustees' reasons for the rejection.
2741 (2) Unless denial of the petition is required under Subsection (3), the board of trustees
2742 shall adopt a resolution approving the withdrawal of some or all of the area from the local
2743 district if the board of trustees determines that:
2744 (a) the area to be withdrawn does not and will not require the service that the local
2745 district provides;
2746 (b) the local district will not be able to provide service to the area to be withdrawn for
2747 the reasonably foreseeable future; or
2748 (c) the area to be withdrawn has obtained the same service that is provided by the local
2749 district or a commitment to provide the same service that is provided by the local district from
2750 another source.
2751 (3) The board of trustees shall adopt a resolution denying the withdrawal if it
2752 determines that the proposed withdrawal would:
2753 (a) result in a breach or default by the local district under:
2754 (i) any of its notes, bonds, or other debt or revenue obligations;
2755 (ii) any of its agreements with entities which have insured, guaranteed, or otherwise
2756 credit-enhanced any debt or revenue obligations of the local district; or
2757 (iii) any of its agreements with the United States or any agency of the United States;
2758 provided, however, that, if the local district has entered into an agreement with the United
2759 States that requires the consent of the United States for a withdrawal of territory from the
2760 district, a withdrawal under this part may occur if the written consent of the United States is
2761 obtained and filed with the board of trustees;
2762 (b) adversely affect the ability of the local district to make any payments or perform
2763 any other material obligations under:
2764 (i) any of its agreements with the United States or any agency of the United States;
2765 (ii) any of its notes, bonds, or other debt or revenue obligations; or
2766 (iii) any of its agreements with entities which have insured, guaranteed, or otherwise
2767 credit-enhanced any debt or revenue obligations of the local district;
2768 (c) result in the reduction or withdrawal of any rating on an outstanding note, bond, or
2769 other debt or revenue obligation of the local district;
2770 (d) create an island or peninsula of nondistrict territory within the local district or of
2771 district territory within nondistrict territory that has a material adverse affect on the local
2772 district's ability to provide service or materially increases the cost of providing service to the
2773 remainder of the local district;
2774 (e) materially impair the operations of the remaining local district; or
2775 (f) require the local district to materially increase the fees it charges or property taxes
2776 or other taxes it levies in order to provide to the remainder of the district the same level and
2777 quality of service that was provided before the withdrawal.
2778 (4) In determining whether the withdrawal would have any of the results described in
2779 Subsection (3), the board of trustees may consider the cumulative impact that multiple
2780 withdrawals over a specified period of time would have on the local district.
2781 (5) (a) Despite the presence of one or more of the conditions listed in Subsection (3),
2782 the board of trustees may approve a resolution withdrawing an area from the local district
2783 imposing terms or conditions that mitigate or eliminate the conditions listed in Subsection (3),
2784 including:
2785 (i) a requirement that the owners of property located within the area proposed to be
2786 withdrawn or residents within that area pay their proportionate share of any outstanding district
2787 bond or other obligation as determined pursuant to Subsection (5)(b);
2788 (ii) a requirement that the owners of property located within the area proposed to be
2789 withdrawn or residents within that area make one or more payments in lieu of taxes, fees, or
2790 assessments;
2791 (iii) a requirement that the board of trustees and the receiving entity agree to reasonable
2792 payment and other terms in accordance with Subsections (5)(f) through (g) regarding the
2793 transfer to the receiving entity of district assets that the district used before withdrawal to
2794 provide service to the withdrawn area but no longer needs because of the withdrawal; provided
2795 that, if those district assets are allocated in accordance with Subsections (5)(f) through (g), the
2796 district shall immediately transfer to the receiving entity on the effective date of the
2797 withdrawal, all title to and possession of district assets allocated to the receiving entity; or
2798 (iv) any other reasonable requirement considered to be necessary by the board of
2799 trustees.
2800 (b) Other than as provided for in Subsection 17B-2-609 (2), and except as provided in
2801 Subsection (5)(e), in determining the proportionate share of outstanding bonded indebtedness
2802 or other obligations under Subsection (5)(a)(i) and for purposes of determining the allocation
2803 and transfer of district assets under Subsection (5)(a)(iii), the board of trustees and the
2804 receiving entity, or in cases where there is no receiving entity, the board and the sponsors of the
2805 petition shall:
2806 (i) engage engineering and accounting consultants chosen by the procedure provided in
2807 Subsection (5)(d); provided however, that if the withdrawn area is not receiving service, an
2808 engineering consultant need not be engaged; and
2809 (ii) require the engineering and accounting consultants engaged under Subsection
2810 (5)(b)(i) to communicate in writing to the board of trustees and the receiving entity, or in cases
2811 where there is no receiving entity, the board and the sponsors of the petition the information
2812 required by Subsections (5)(f) through (h).
2813 (c) For purposes of this Subsection (5):
2814 (i) "accounting consultant" means a certified public accountant or a firm of certified
2815 public accountants with the expertise necessary to make the determinations required under
2816 Subsection (5)(h); and
2817 (ii) "engineering consultant" means a person or firm that has the expertise in the
2818 engineering aspects of the type of system by which the withdrawn area is receiving service that
2819 is necessary to make the determination required under Subsections (5)(f) and (g).
2820 (d) (i) Unless the board of trustees and the receiving entity, or in cases where there is
2821 no receiving entity, the board and the sponsors of the petition agree on an engineering
2822 consultant and an accounting consultant, each consultant shall be chosen from a list of
2823 consultants provided by the Consulting Engineers Council of Utah and the Utah Association of
2824 Certified Public Accountants, respectively, as provided in this Subsection (5)(d).
2825 (ii) A list under Subsection (5)(d)(i) may not include a consultant who has had a
2826 contract for services with the district or the receiving entity during the two-year period
2827 immediately before the list is provided to the local district.
2828 (iii) Within 20 days of receiving the lists described in Subsection (5)(d)(i), the board of
2829 trustees shall eliminate the name of one engineering consultant from the list of engineering
2830 consultants and the name of one accounting consultant from the list of accounting consultants
2831 and shall notify the receiving entity, or in cases where there is no receiving entity, the sponsors
2832 of the petition in writing of the eliminations.
2833 (iv) Within three days of receiving notification under Subsection (5)(d), the receiving
2834 entity, or in cases where there is no receiving entity, the sponsors of the petition shall eliminate
2835 another name of an engineering consultant from the list of engineering consultants and another
2836 name of an accounting consultant from the list of accounting consultants and shall notify the
2837 board of trustees in writing of the eliminations.
2838 (v) The board of trustees and the receiving entity, or in cases where there is no
2839 receiving entity, the board and the sponsors of the petition shall continue to alternate between
2840 them, each eliminating the name of one engineering consultant from the list of engineering
2841 consultants and the name of one accounting consultant from the list of accounting consultants
2842 and providing written notification of the eliminations within three days of receiving
2843 notification of the previous notification, until the name of only one engineering consultant
2844 remains on the list of engineering consultants and the name of only one accounting consultant
2845 remains on the list of accounting consultants.
2846 (e) The requirement under Subsection (5)(b) to engage engineering and accounting
2847 consultants does not apply if the board of trustees and the receiving entity, or in cases where
2848 there is no receiving entity, the board and the sponsors of the petition agree on the allocations
2849 that are the engineering consultant's responsibility under Subsection (5)(f) or the
2850 determinations that are the accounting consultant's responsibility under Subsection (5)(h);
2851 provided however, that if engineering and accounting consultants are engaged, the district and
2852 the receiving entity, or in cases where there is no receiving entity, the district and the sponsors
2853 of the petition shall equally share the cost of the engineering and accounting consultants.
2854 (f) (i) The engineering consultant shall allocate the district assets between the district
2855 and the receiving entity as provided in this Subsection (5)(f).
2856 (ii) The engineering consultant shall allocate:
2857 (A) to the district those assets reasonably needed by the district to provide to the area
2858 of the district remaining after withdrawal the kind, level, and quality of service that was
2859 provided before withdrawal; and
2860 (B) to the receiving entity those assets reasonably needed by the receiving entity to
2861 provide to the withdrawn area the kind and quality of service that was provided before
2862 withdrawal.
2863 (iii) If the engineering consultant determines that both the local district and the
2864 receiving entity reasonably need a district asset to provide to their respective areas the kind and
2865 quality of service provided before withdrawal, the engineering consultant shall:
2866 (A) allocate the asset between the local district and the receiving entity according to
2867 their relative needs, if the asset is reasonably susceptible of division; or
2868 (B) allocate the asset to the local district, if the asset is not reasonably susceptible of
2869 division.
2870 (g) All district assets remaining after application of Subsection (5)(f) shall be allocated
2871 to the local district.
2872 (h) (i) The accounting consultant shall determine the withdrawn area's proportionate
2873 share of any redemption premium and the principal of and interest on:
2874 (A) the local district's revenue bonds that were outstanding at the time the petition was
2875 filed;
2876 (B) the local district's general obligation bonds that were outstanding at the time the
2877 petition was filed; and
2878 (C) the local district's general obligation bonds that:
2879 (I) were outstanding at the time the petition was filed; and
2880 (II) are treated as revenue bonds under Subsection (5)(i); and
2881 (D) the district's bonds that were issued prior to the date the petition was filed to refund
2882 the district's revenue bonds, general obligation bonds, or general obligation bonds treated as
2883 revenue bonds.
2884 (ii) For purposes of Subsection (5)(h)(i), the withdrawn area's proportionate share of
2885 redemption premium, principal, and interest shall be the amount that bears the same
2886 relationship to the total redemption premium, principal, and interest for the entire district that
2887 the average annual gross revenues from the withdrawn area during the three most recent
2888 complete fiscal years before the filing of the petition bears to the average annual gross revenues
2889 from the entire district for the same period.
2890 (i) For purposes of Subsection (5)(h)(i), a district general obligation bond shall be
2891 treated as a revenue bond if:
2892 (i) the bond is outstanding on the date the petition was filed; and
2893 (ii) the principal of and interest on the bond, as of the date the petition was filed, had
2894 been paid entirely from local district revenues and not from a levy of ad valorem tax.
2895 (j) (i) Before the board of trustees of the local district files a resolution approving a
2896 withdrawal, the receiving entity, or in cases where there is no receiving entity, the sponsors of
2897 the petition shall irrevocably deposit government obligations, as defined in Subsection
2898 11-27-2 (6), into an escrow trust fund the principal of and interest on which are sufficient to
2899 provide for the timely payment of the amount determined by the accounting consultant under
2900 Subsection (5)(h) or in an amount mutually agreeable to the board of trustees of the local
2901 district and the receiving entity, or in cases where there is no receiving entity, the board and the
2902 sponsors of the petition. Notwithstanding Subsection 17B-2-610 (1), the board of trustees shall
2903 not be required to file a resolution approving a withdrawal until the requirements for
2904 establishing and funding an escrow trust fund in this Subsection (5)(j)(i) have been met;
2905 provided that, if the escrow trust fund has not been established and funded within 180 days
2906 after the board of trustees passes a resolution approving a withdrawal, the resolution approving
2907 the withdrawal shall be void.
2908 (ii) Concurrently with the creation of the escrow, the receiving entity, or in cases where
2909 there is no receiving entity, the sponsors of the petition shall provide to the board of trustees of
2910 the local district:
2911 (A) a written opinion of an attorney experienced in the tax-exempt status of municipal
2912 bonds stating that the establishment and use of the escrow to pay the proportionate share of the
2913 district's outstanding revenue bonds and general obligation bonds that are treated as revenue
2914 bonds will not adversely affect the tax-exempt status of the bonds; and
2915 (B) a written opinion of an independent certified public accountant verifying that the
2916 principal of and interest on the deposited government obligations are sufficient to provide for
2917 the payment of the withdrawn area's proportionate share of the bonds as provided in Subsection
2918 (5)(h).
2919 (iii) The receiving entity, or in cases where there is no receiving entity, the sponsors of
2920 the petition shall bear all expenses of the escrow and the redemption of the bonds.
2921 (iv) The receiving entity may issue bonds under Title 11, Chapter 14, [
2922
2923 fund the escrow.
2924 (6) A requirement imposed by the board of trustees as a condition to withdrawal under
2925 Subsection (5) shall, in addition to being expressed in the resolution, be reduced to a duly
2926 authorized and executed written agreement between the parties to the withdrawal.
2927 (7) An area that is the subject of a withdrawal petition under Section 17B-2-603 that
2928 results in a board of trustees resolution denying the proposed withdrawal may not be the
2929 subject of another withdrawal petition under Section 17B-2-603 for two years after the date of
2930 the board of trustees resolution denying the withdrawal.
2931 Section 73. Section 17B-4-1204 is amended to read:
2932 17B-4-1204. Contesting the legality of resolution authorizing bonds -- Time limit
2933 -- Presumption.
2934 (1) Any person may contest the legality of the resolution authorizing issuance of the
2935 bonds or any provisions for the security and payment of the bonds for a period of 30 days after:
2936 (a) publication of the resolution authorizing the bonds; or
2937 (b) publication of a notice of bonds containing substantially the items required under
2938 Subsection [
2939 (2) After the 30-day period under Subsection (1), no lawsuit or other proceeding may
2940 be brought contesting the regularity, formality, or legality of the bonds for any reason.
2941 (3) In a lawsuit or other proceeding involving the question of whether a bond issued
2942 under this part is valid or enforceable or involving the security for a bond, if a bond recites that
2943 the agency issued the bond in connection with a redevelopment, economic development, or
2944 education housing development:
2945 (a) the bond shall be conclusively presumed to have been issued for that purpose; and
2946 (b) the project area plan and project area shall be conclusively presumed to have been
2947 properly formed, adopted, planned, located, and carried out in accordance with this chapter.
2948 Section 74