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H.B. 14

             1     

BOND ELECTION PROCESS AMENDMENTS

             2     
2005 GENERAL SESSION

             3     
STATE OF UTAH

             4     
Sponsor: Fred R. Hunsaker

             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      [ 11-14-21 ] 11-14-316 in a newspaper having general circulation in the area of operation, any
             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, [Utah Municipal Bond] Local Government Bonding Act. This section does not
             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 [ 11-14-3 ] 11-14-202 for an election
             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, [Utah Municipal Bond] Local Government
             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 [ 11-14-2 (2)] 11-14-201 (3) and except as provided in
             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, [Utah Municipal Bond] Local Government Bonding Act, that govern bond
             282      elections; and
             283          (II) notwithstanding Subsection [ 11-14-4 ] 11-14-203 (2), at a regular general election;
             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, [Utah Municipal Bond]
             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, [Utah Municipal Bond]
             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, [Utah
             370      Municipal Bond] Local Government Bonding Act, or other applicable law of this state
             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, [Utah Municipal Bond] Local Government Bonding Act;
             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 [ 11-14-21 (3)] 11-14-316 (2).
             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     
CHAPTER 14. LOCAL GOVERNMENT BONDING ACT

             507     
Part 1. General Provisions

             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     
Part 2. Bond Elections

             594           [11-14-2].     11-14-201. Election on bond issues -- Qualified electors --
             595      Resolution and notice.
             596          (1) [(a)] The [governing] legislative body of any [municipality desiring] local political
             597      subdivision who wishes to issue bonds under the authority granted in Section [ 11-14-1 ]
             598      11-14-103 shall [by resolution provide for the holding of an election in the municipality on], at
             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          [(b) The bonds may be issued only if at the election the issuance of the bonds is
             607      approved by a majority of the qualified electors of the municipality who vote on the
             608      proposition.]
             609          [(2) This section does not require an election for the issuance of refunding bonds or
             610      other bonds not required by the constitution to be voted at an election.]
             611          [(3) (a) At least 30 days before the election, the governing body shall:]
             612          [(i) approve the resolution; and]
             613          [(ii) provide a copy of the resolution to the county clerk.]
             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          [(b)] (4) The resolution calling the election [and the election notice] shall [state:]
             621      include a ballot proposition, in substantially final form, that complies with the requirements of
             622      Subsection 11-14-206 (2).
             623          [(i) the purpose for which the bonds are to be issued;]
             624          [(ii) the maximum amount of bonds to be issued; and]
             625          [(iii) the maximum number of years from the issue date of the bonds to maturity.]
             626          [(c) The purpose may be stated in general terms and need not specify the particular
             627      projects for which the bonds are to be issued or the specific amount of bond proceeds to be
             628      expended for each project.]
             629          [(4) If the municipality is an improvement district and if the bonds are to be payable in
             630      part from tax proceeds and in part from the operating revenues of the district or from any
             631      combination of tax proceeds and operating revenues, the resolution and notice shall indicate
             632      those payment sources, but need not specify how the bonds are to be divided between those
             633      sources of payment.]
             634          Section 12. Section 11-14-202 , which is renumbered from Section 11-14-3 is
             635      renumbered and amended to read:
             636           [11-14-3].     11-14-202. Notice of election -- Contents -- Publication -- Mailing.
             637          (1) (a) [Notice] The legislative body shall ensure that:
             638          (i) notice of the election [shall be] is published once [a] per week during three
             639      consecutive weeks in a newspaper designated in accordance with Section [ 11-14-21 ,]
             640      11-14-316 ; and
             641          (ii) the first publication [to be] occurs not less than 21 nor more than 35 days before
             642      the election.
             643          [(b) If no official newspaper is designated, the notices]
             644          (b) Notice shall be published in a newspaper [published in the municipality, or, if no
             645      newspaper is published in the municipality, the notices shall be published in a newspaper]
             646      having general circulation in the [municipality] local political subdivision.
             647          [(2) When the debt service on the bonds to be issued will increase the property tax


             648      imposed upon the average value of a residence by an amount that is greater than or equal to $15
             649      per year, the governing body shall, at least seven days but not more than 30 days before the
             650      bond election, if the bond election is not held on the date of a regular primary election, a
             651      municipal primary election, a regular general election, or a municipal general election, either
             652      mail:]
             653          [(a) written notice of the bond election on a minimum three inch by five inch postcard
             654      to every household containing a registered voter who is eligible to vote on the bonds; or]
             655          [(b) a voter information pamphlet prepared by the governing body, if one is prepared,
             656      that includes the information required by Subsection (4).]
             657          [(3)] (2) (a) Except as provided in Subsection [(3)] (2)(b), [election] notice [given for
             658      any bond election held in this state] of the bond election need not be posted [by any persons].
             659          (b) (i) In a [city of the third, fourth, or fifth class or a town] local political subdivision
             660      where there is no newspaper [is published, the governing] of general circulation, the legislative
             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 [governing] legislative body imposes a posting requirement, the [city
             664      recorder, town clerk, or other officer designated by the governing] legislative body shall [post]
             665      ensure that notice of the bond election is posted in at least five public places in the [city or
             666      town] local political subdivision at least 21 days before the election.
             667          [(4)] (3) [The printed, posted, and mailed] Any notice required by this section shall
             668      [identify] include:
             669          (a) the date and place of the election;
             670          (b) the hours during which the polls will be open; and
             671          [(c) the purpose for which the bonds are to be issued, the maximum amount of bonds
             672      to be issued, and the maximum number of years to maturity of the bonds.]
             673          (c) the title and text of the ballot proposition.
             674          [(5)] (4) The [governing] legislative body shall pay the costs associated with the
             675      [printed, posted, and mailed] notice required by this section.
             676          Section 13. Section 11-14-203 , which is renumbered from Section 11-14-4 is
             677      renumbered and amended to read:
             678           [11-14-4].     11-14-203. Time for election -- Equipment -- Election officials --


             679      Combining precincts.
             680          [(1) (a) The governing body shall:]
             681          [(i) designate the voting places to be used;]
             682          [(ii) fix the hours during which the polls are to be open, which, if the election is a
             683      special election, shall be those provided by law for the conduct of regular general elections;]
             684          [(iii) cause to be provided the necessary ballot boxes, ballots, paraphernalia,
             685      equipment, and supplies needed for the election as determined by the governing body; and]
             686          [(iv) unless the election officials to serve at each voting place are otherwise appointed
             687      under the provisions of general law, appoint three election officials, who shall be qualified
             688      electors of the municipality or other entity calling the election, to serve at each voting place.]
             689          [(b) The governing body may appoint one or more alternate election officials to so
             690      serve in case of the absence for any cause of the designated election officials.]
             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) [(i)] A bond election may be held, and the proposition for the issuance of bonds
             697      may be submitted [at], on the same date as any general or municipal election held in the
             698      [municipality or other entity] local political subdivision calling the bond election, or at a
             699      special election called for the purpose on a date authorized by Section 20A-1-204 .
             700          [(ii)] (b) A bond election may not be held, nor a proposition for issuance of bonds be
             701      submitted, at the Western States Presidential Primary election established in Title 20A, Chapter
             702      9, Part 8, Western States Presidential Primary.
             703          [(b) The process for calling, the approved purpose, and the date of a special election
             704      shall be governed by Sections 20A-1-203 and 20A-1-204 .]
             705          [(c) Where a bond election is being held on the same day as any other election held in
             706      the municipality or entity calling the bond election or in some part of that municipality or
             707      entity, the election officials serving for the other election may also serve as election officials
             708      for the bond election.]
             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          [(3) (a) Voting] (4) When a bond election is being held on a day when no other
             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[. (b) The governing body may
             728      designate whatever voting places that it considers best suited,] so long as no voter is required to
             729      vote outside the county in which [he] the voter resides.
             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           [11-14-6].     11-14-204. Challenges to voter qualifications.
             738          [(1) The qualifications as an elector of any person applying for a ballot at a bond
             739      election may be challenged for cause by any one or more of the election officials or by any
             740      other person at the time the ballot is applied for, but notwithstanding any challenge hereunder,


             741      any such person shall receive a ballot and be permitted to vote if:]
             742          [(a) the person is shown on the registration lists as a registered voter in the municipality
             743      or other entity calling the bond election; and]
             744          [(b) the person takes an oath sworn to before one of the election officials that he is a
             745      qualified elector of such municipality or entity.]
             746          [(2) The oath referred to in Subsection (1) may, but need not, be in substantially the
             747      following form:]
             748     
[ELECTOR'S OATH]

             749          [STATE OF UTAH )]
             750      [COUNTY OF ____________)]
             751          [The undersigned, having been first duly sworn upon oath, deposes and says under the
             752      pains and penalties of perjury, as follows:]
             753          [That I am a citizen of the United States; that I am 18 years of age or older; that I am
             754      now and have been a resident of the state of Utah for not less than 30 days; that I am a resident
             755      of ____ County and of the voting district or precinct of the (municipality or other entity calling
             756      the bond election) in which I am offering to vote; that I am a duly registered voter of ____
             757      County and I am a qualified voter of and reside within the confines of (municipality or other
             758      entity calling the bond election); and that I have not previously voted at the bond election being
             759      held on this __________(month\day\year) in (municipality or other entity calling the bond
             760      election).]
             761     
[____________________________________________________________]

             762                                  [Signature of Elector]
             763     
[____________________________________________________________]

             764                                  [Address of Elector]
             765          [I, the undersigned, Judge of election, hereby certify that the person whose signature
             766      appears above, signed the foregoing statement on this __________(month\day\year),
             767      immediately after I administered to him an oath in the following words: You do solemnly
             768      swear (or affirm) that you have read the oath to which you are about to subscribe your signature
             769      and that the facts recited therein are true and correct, so help you God (or under the pains and
             770      penalties of perjury).]
             771     
[____________________________________________________________]


             772                                  [Judge of Election]
             773      [Each election official is expressly authorized to administer the oath.]
             774          [(3) In the case of challenges made pursuant to Subsection (1), the election officials
             775      shall keep a list of the names of each person challenged, the grounds for the challenge, and
             776      whether such person was permitted to vote. The list shall be made in duplicate and the
             777      duplicate list shall be made available to the governing body when it canvasses the election
             778      results.]
             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          [(4) No] (2) A bond election [shall] may not be [held invalid] invalidated on the
             782      grounds that [unqualified] ineligible voters voted unless:
             783          (a) it [shall be] is shown by clear and convincing evidence [in a contest filed prior to
             784      the expiration of the period in which bond election contest may be filed] that [unqualified]
             785      ineligible voters voted in sufficient numbers to change the result [voted at] of the bond
             786      election[. When the election results are canvassed, the canvass shall show separately the
             787      number of votes which were challenged and the number of challenged voters who were
             788      permitted to vote, but the]; and
             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      [shall find] finds otherwise.
             794          Section 15. Section 11-14-205 , which is renumbered from Section 11-14-7 is
             795      renumbered and amended to read:
             796           [11-14-7].     11-14-205. Special registration not required -- Official register
             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          [(1)] (b) [There shall be no] The legislative body may not require or mandate any
             801      special registration of voters for a bond election [and the official register last made or revised
             802      shall constitute the register for such bond election except that:].


             803          [(a) if the bond election is held on the same day as a general, special, primary, or other
             804      election held in the municipality or other bond-issuing entity or in part of the municipality or
             805      entity, all persons registered to vote in such other election shall be considered registered to vote
             806      in the bond election; and]
             807          [(b) if the bond election is not to be held on the same day as any other election, the
             808      county clerk of each county in which the municipality or entity is wholly or partly located shall
             809      register at his office during regular office hours except Saturdays, Sundays, and holidays, and
             810      except during the 20-day period immediately preceding the bond election, any person who on
             811      the day of the bond election will be a qualified elector, such person to be registered in the same
             812      manner as provided by law for registration by satellite registrars.]
             813          (2) The county clerk of each county in which a [municipality or entity] local political
             814      subdivision holding the bond election is located shall [make registration lists or copies of such
             815      lists available at each polling place for use by registered electors entitled to use such voting
             816      place] prepare the official register for the bond election according to the requirements of
             817      Section 20A-5-401 .
             818          [(3) If the registration lists furnished include electors who do not reside within the
             819      municipality or entity whose bonds are being voted upon, the county clerk or the municipality
             820      or other entity shall cause to be indicated on the registration lists the names of the registered
             821      electors who do not reside in such municipality or entity, but the failure to so indicate or]
             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 [such indication shall not
             824      be considered an irregularity or] that identification, is not a ground for invalidating the bond
             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           [11-14-10].     11-14-206. Ballots -- Submission of ballot language -- Form and
             829      contents.
             830          [(1) The governing body shall prescribe the form of ballot to be used at the election,
             831      but the proposition appearing thereon shall include a statement of]
             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 [they are to run from their respective dates, and in
             841      general terms,] from the issuance of the bonds to final maturity; and
             842          (iii) the general purpose for which [they] the bonds are to be issued. [In addition, if]
             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 [municipality] local political subdivision, or from any combination
             848      [thereof, the] of tax proceeds and operating revenues, the bond proposition shall [so indicate,
             849      but need not specify how the bonds are to be divided as to source of payment. The proposition]
             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 [question or questions are] proposition is submitted [at an election not
             858      specially held for that purpose] to a vote on the same day as any other election held in the local
             859      political subdivision calling the bond election, the bond [question or questions] proposition
             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          [(2) Where voting machines are used, the ballot shall be in such form as is appropriate
             863      for such use, and absentee ballots shall be in the form prescribed by law for such ballots.]
             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           [11-14-11].     11-14-207. Counting and canvassing -- Official finding.
             869          [Immediately after the closing of the polls the judges of the election shall proceed to
             870      count and canvass the ballots cast and make returns thereof to the governing body. The
             871      governing body shall not later than ten days after the election meet and canvass the returns.
             872      The oaths taken pursuant to Subsection (1) of Section 11-14-6 and the ballots and ballot boxes
             873      shall be held in safekeeping in the manner and for the period provided by law with respect to
             874      ballots for other elections.]
             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 [returns] results shall be made in public [and at its
             883      conclusion the governing] no sooner than seven days after the election and no later than 14
             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 [make] record in
             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, [the number of mutilated ballots and] the number of
             895      challenged voters [as above required], the number of challenged voters that were issued a


             896      provisional ballot, and the number of provisional ballots that were counted; and [shall declare]
             897          (ii) an official finding that the bond proposition [to have carried or lost. Such findings
             898      shall be incorporated in the official minutes of the governing body, and it shall not be necessary
             899      to file any] was approved or rejected.
             900          (b) The legislative body need not file with the county clerk or with any other official:
             901          (i) any statement or certificate of [such] the election results [or];
             902          (ii) any affidavit with respect to the facts pertaining to the election [nor]; or
             903          (iii) any affidavit pertaining to the indebtedness and valuation of the municipality [with
             904      the county clerk or with any other official].
             905          (3) The [determination of the governing body] official finding that [a] the majority of
             906      the qualified [electors] voters of the [municipality] local political subdivision voting on the
             907      bond proposition[, have assented to] approved the issuance of the bonds[, shall be] is
             908      conclusive in any action or proceeding involving the validity of the election or involving the
             909      determination or declaration of the result [thereof instituted] of the election if the action is filed
             910      after the expiration of the period provided in [Section 11-14-12 for the filing of actions
             911      contesting the validity of bond elections and after the date of delivery of and payment for any
             912      part of the bonds] Subsection 20A-4-403 (3).
             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     
Part 3. Issuance of Bonds


             927           [11-14-13].     11-14-301. Issuance of bonds by legislative body -- Computation of
             928      indebtedness under constitutional and statutory limitations.
             929          (1) If the [governing] legislative body has declared the bond proposition to have carried
             930      and no contest has been filed, or if [the] a contest [is] has been filed [after it has been] and
             931      favorably terminated, the [governing] legislative body may proceed to issue the bonds voted at
             932      the election.
             933          (2) It is not necessary that all of the bonds be issued at one time, but [no] bonds [so
             934      voted] approved by the voters may not be issued more than ten years after the date of the
             935      election. [No bonds so voted]
             936          (3) (a) Bonds approved by the voters may not be issued to an amount which will cause
             937      the indebtedness of the [municipality] local political subdivision to exceed that permitted by
             938      the Utah Constitution or statutes.
             939          (b) In computing the amount of indebtedness [which] that may be incurred pursuant to
             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 [municipality]
             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 [municipality]
             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 [municipality] local political subdivision, as provided in Title 59,
             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 [ 11-14-2 . No] 11-14-201 .
             963          (6) A bond election is not void [because] when the amount of bonds authorized at the
             964      election exceeded the limitation applicable to the [municipality] local political subdivision at
             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           [11-14-14].     11-14-302. Resolution -- Negotiability -- Registration -- Maturity --
             970      Interest -- Payment -- Redemption -- Combining issues -- Sale -- Financing plan.
             971          (1) Bonds issued under this chapter shall be authorized by resolution of the [governing]
             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 [governing] legislative body be combined and offered for sale as one issue of
             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 [municipality] local political subdivision has
             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 [municipality] local political
             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 [municipality] local
             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 [municipality] local political subdivision or by the treasurer's duly authorized
             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 [municipality] local political subdivision from time to time
             1007      pursuant to a plan of financing adopted by the [governing] legislative body. The plan of
             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 [municipality] local political subdivision authorized to
             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 [governing]
             1013      legislative body of the [municipality] local political subdivision may include in the plan of
             1014      financing the terms and conditions of agreements which may be entered into by the
             1015      [municipality] local political subdivision with banking institutions for letters of credit or for
             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 [municipality] local political subdivision.
             1019          Section 21. Section 11-14-303 , which is renumbered from Section 11-14-14.5 is


             1020      renumbered and amended to read:
             1021           [11-14-14.5].     11-14-303. Bonds, notes, or other evidences of indebtedness
             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           [11-14-15].     11-14-304. Facsimile signatures and facsimile seal, use permitted --
             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 [municipality] local political subdivision.
             1053          Section 23. Section 11-14-305 , which is renumbered from Section 11-14-16 is
             1054      renumbered and amended to read:
             1055           [11-14-16].     11-14-305. Registration, denominations and exchange of
             1056      obligations.
             1057          (1) Unless otherwise provided by the [municipality] local political subdivision, 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 [ 11-14-16 ] (2) governs
             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 [governing] legislative body may provide for the exchange of any
             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 [governing] legislative body may require all
             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           [11-14-17].     11-14-306. Additional pledge for general obligation bonds --
             1081      Revenue bonds -- Resolution.


             1082          (1) To the extent constitutionally permissible, [municipalities] local political
             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 [governing] legislative body.
             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 [municipality]
             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 [municipality] local political subdivision itself might do.
             1122          Section 25. Section 11-14-307 , which is renumbered from Section 11-14-17.5 is
             1123      renumbered and amended to read:
             1124           [11-14-17.5].     11-14-307. Revenue bonds payable out of excise tax
             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 [governing]
             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 [governing] legislative body may think
             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 [governing] legislative body imposing the excise tax and pursuant to
             1146      which the tax is being collected, the obligation of the [governing] legislative body to continue
             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 [ 11-14-21 ] 11-14-316 , with the first publication being
             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           [11-14-17.6].     11-14-308. Special service district bonds secured by federal
             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 [governing] legislative body
             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           [11-14-18].     11-14-309. Refunding bonds -- Limitation on redemption of bonds.
             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 [act] chapter nor in any other law of this state [shall] may
             1261      be construed to permit any [municipality] local political subdivision to call outstanding bonds
             1262      [now or hereafter outstanding] for redemption in order to refund [such] those bonds or in order
             1263      to pay them prior to their stated maturities, unless:
             1264          (a) the right to call [such] the bonds for redemption was specifically reserved and
             1265      stated in [such] the bonds at the time of their issuance[,]; and
             1266          (b) all conditions with respect to the manner, price, and time applicable to [such] the
             1267      redemption as set forth in the proceedings authorizing the outstanding bonds are strictly


             1268      observed[, the intention of this paragraph being to make it certain that the holder of no].
             1269          (3) A holder of an outstanding bond may not be compelled to surrender [such] the bond
             1270      for refunding [prior to] before its stated maturity or optional date of redemption expressly
             1271      reserved [therein] in the bond, even though [such] the refunding might result in financial
             1272      benefit to the [issuing municipality] local political subdivision issuing the bond.
             1273          Section 28. Section 11-14-310 , which is renumbered from Section 11-14-19 is
             1274      renumbered and amended to read:
             1275           [11-14-19].     11-14-310. General obligation bonds -- Levy and collection of taxes.
             1276          (1) Any bonds issued [hereunder] under this chapter in such manner that they are not
             1277      payable solely from revenues other than those derived from ad valorem taxes [shall constitute]
             1278      are full general obligations of the [municipality] local political subdivision, for the prompt and
             1279      punctual payment of principal of and interest on which the full faith and credit of the
             1280      [municipality] local political subdivision are pledged, and the [municipality] local political
             1281      subdivision is hereby expressly required, regardless of any limitations which may otherwise
             1282      exist on the amount of taxes which the [municipality] local political subdivision may levy, to
             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 [municipality] local political subdivision fully sufficient
             1285      for such purpose. If by law ad valorem taxes for the [municipality] local political subdivision
             1286      are levied by a board other than its [governing] legislative body, the taxes for which provision
             1287      is herein made shall be levied by such other board and the [municipality] local political
             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 [municipality] local political subdivision.
             1292          (2) If any [municipality] local political subdivision shall neglect or fail for any reason
             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 [municipality] local political subdivision.
             1301          Section 29. Section 11-14-311 , which is renumbered from Section 11-14-19.5 is
             1302      renumbered and amended to read:
             1303           [11-14-19.5].     11-14-311. Bond anticipation notes.
             1304          (1) Whenever the [governing] legislative body considers it advisable and in the
             1305      interests of the [municipality] local political subdivision to anticipate the issuance of bonds to
             1306      be issued under this chapter, the [governing] legislative body may, pursuant to appropriate
             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 [governing] legislative body determines by resolution.
             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 [governing] legislative body in the manner and upon the terms fixed by the resolution
             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 [municipality] local
             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 [municipality] local political subdivision in the manner
             1329      provided in Section [ 11-14-19 ] 11-14-310 and shall also be made payable from funds derived


             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      [municipality] local political subdivision from the revenue-producing facilities and shall also
             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 [11-14-15 , 11-14-16 , 11-14-20 , 11-14-21 , and 11-14-22 ] 11-14-304 ,
             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 [ 11-14-13 ] 11-14-301 , if the
             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           [11-14-19.6].     11-14-312. Prior bonds validated -- Exceptions.
             1349          All bonds issued by any [municipality] local political subdivision prior to the effective
             1350      date of this [act] chapter and all proceedings had in the authorization and issuance of them are
             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 [act]
             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           [11-14-19.7].     11-14-313. Issuance of negotiable notes or bonds authorized
             1358      -- Limitation on amount of tax anticipation notes or bonds -- Procedure.
             1359          (1) For the purpose of meeting the current expenses of the [municipality] local political
             1360      subdivision and for any other purpose for which funds of the [municipality] local political


             1361      subdivision may be expended, the [governing] legislative body may borrow money not in
             1362      excess of 90% of the taxes and other revenues of the [municipality] local political subdivision
             1363      for the current year, issuing therefor negotiable notes or bonds of the [municipality] local
             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 [municipality] local political subdivision may be expended, and there shall
             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      [municipality] local political subdivision which have been or may hereafter be contracted, the
             1374      [governing] legislative body of the [municipality] local political subdivision is authorized and
             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 [municipality's] local political subdivision's
             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 [governing] legislative body shall by resolution
             1388      determine. Tax anticipation notes shall be in bearer form, except that the [governing]
             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 [governing] legislative body in the manner and


             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 [ 11-14-14.5 , 11-14-15 , 11-14-16 , 11-14-19.7 , 11-14-20 ,
             1396      11-14-21 , 11-14-22 , 11-14-24 , and 11-14-25 ] 11-14-303 , 11-14-304 , 11-14-305 , 11-14-313 ,
             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          [(4) "Municipality" as used in this section shall have the meaning set forth in Section
             1401      11-14-1 .]
             1402          Section 32. Section 11-14-314 , which is renumbered from Section 11-14-19.8 is
             1403      renumbered and amended to read:
             1404           [11-14-19.8].     11-14-314. Tax anticipation obligations validated.
             1405          All obligations issued in anticipation of the collection of taxes and other revenues by
             1406      any [municipality] local political subdivision prior to the effective date of this [act] chapter and
             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 [act] chapter takes
             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           [11-14-20].     11-14-315. Nature and validity of bonds issued -- Applicability of
             1415      other statutory provisions -- Budget provision required -- Applicable procedures for
             1416      issuance.
             1417          Bonds issued under this [act] chapter shall have all the qualities of negotiable paper,
             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 [act]
             1420      chapter is intended to afford an alternative method for the issuance of bonds by [municipalities]
             1421      local political subdivisions and shall not be so construed as to deprive any [municipality] local
             1422      political subdivision of the right to issue its bonds under authority of any other statute, but


             1423      nevertheless this [act] chapter shall constitute full authority for the issue and sale of bonds by
             1424      [municipalities] local political subdivisions. The provisions of Section 11-1-1 , Utah Code
             1425      Annotated 1953, shall not be applicable to bonds issued under this [act] chapter. Any
             1426      [municipality] local political subdivision subject to the provisions of any budget law shall in its
             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 [municipality] local political
             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      [governing] legislative body.
             1440          Section 34. Section 11-14-316 , which is renumbered from Section 11-14-21 is
             1441      renumbered and amended to read:
             1442           [11-14-21].     11-14-316. Publication of notice, resolution, or other proceeding --
             1443      Contest.
             1444          [(1) If a municipality has one or more newspapers published within its boundaries, the
             1445      governing body of the municipality shall, from time to time, designate one of the newspapers
             1446      as the "official newspaper" for the publication of all notices required under this chapter.
             1447      Otherwise, the governing body, from time to time, shall designate a newspaper with general
             1448      circulation in the municipality as the "official newspaper" for the publication of such notices.
             1449      (2) The governing]
             1450          (1) The legislative body of any [public body] local political subdivision may provide
             1451      for the publication of any resolution or other proceeding adopted [by it] under this chapter in
             1452      [the "official newspaper" designated under Subsection (1)] a newspaper having general
             1453      circulation in the local political subdivision.


             1454          [(3) In case of] (2) When publication involves a resolution or other proceeding
             1455      providing for the issuance of bonds, the [governing] legislative body may, in lieu of publishing
             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          [(4)] (3) For a period of 30 days after the publication, any person in interest may
             1472      contest:
             1473          (a) the legality of such resolution or proceeding[,];
             1474          (b) any bonds which may be authorized by such resolution or proceeding[,]; or
             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 [such] the resolution or proceeding for any [cause] reason.
             1481          Section 35. Section 11-14-401 , which is renumbered from Section 11-14-22 is
             1482      renumbered and amended to read:
             1483     
Part 4. Miscellaneous Provisions

             1484           [11-14-22].     11-14-401. Short title -- Title to appear on face of bonds -- Effect of


             1485      future statutes dealing with municipal bond issues.
             1486          (1) This [act may be cited] chapter is known as the ["Utah Municipal Bond Act," all]
             1487      "Local Government Bonding Act."
             1488          (2) All bonds issued pursuant to authority contained in this [act] chapter shall contain
             1489      on their face a recital to that effect, and no [act] chapter hereafter passed by the Legislature
             1490      amending other [acts] chapters under which bonds authorized to be issued by this [act] chapter
             1491      might be issued or dealing with bond issues of [municipalities] local political subdivisions
             1492      shall be construed to affect the authority to proceed under this [act] chapter in the manner
             1493      herein provided unless such future statute amends this [act] chapter and specifically provides
             1494      that it is to be applicable to bonds issued under this [act] chapter.
             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           [11-14-23].     11-14-402. Exemptions from application of chapter -- Exception.
             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 [ 11-14-14.5 ] 11-14-303 and [ 11-14-28 ] 11-14-501 have general
             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           [11-14-24].     11-14-403. Conflict of laws.
             1510          To the extent that any one or more provisions of this [act] chapter shall be in conflict
             1511      with any other law or laws, the provisions of this [act] chapter shall be controlling.
             1512          Section 38. Section 11-14-404 , which is renumbered from Section 11-14-25 is
             1513      renumbered and amended to read:
             1514           [11-14-25].     11-14-404. Severability clause.
             1515          If any one or more sentences, clauses, phrases, provisions or sections of this [act]


             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 [act] chapter to other sets of
             1519      circumstances shall nevertheless continue to be valid and effective, the legislature hereby
             1520      declaring that all provisions of this [act] chapter are severable.
             1521          Section 39. Section 11-14-405 , which is renumbered from Section 11-14-26 is
             1522      renumbered and amended to read:
             1523           [11-14-26].     11-14-405. Validity of prior bond issues.
             1524          All bonds issued by any [municipality] local political subdivision prior to the effective
             1525      date of this [act] chapter and all proceedings had in the authorization and issuance thereof are
             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 [act]
             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           [11-14-27].     11-14-406. Application of act.
             1533          Sections [ 11-14-2 , 11-14-4 , 11-14-6 , 11-14-7 , 11-14-8 , 11-14-9 , 11-14-12 , 11-14-15 ,
             1534      and 11-14-18 ] 11-14-201 , 11-14-202 , 11-14-203 , 11-14-204 , 11-14-205 , and 11-14-208 shall
             1535      apply to all bond elections [and to all bonds issued] held by any city, town, county, school
             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      [ 11-14-23 ] 11-14-402 , by any other taxing district or governmental entity whether or not the
             1540      bonds are issued [pursuant to] under authority granted by this [act and, as to matters provided
             1541      in Section 11-14-18 , this act shall apply to all bonds issued and outstanding as of May 11,
             1542      1965, as well as to bonds issued after that date] chapter.
             1543          Section 41. Section 11-14-501 , which is renumbered from Section 11-14-28 is
             1544      renumbered and amended to read:
             1545     
Part 5. Government Security Interests

             1546           [11-14-28].     11-14-501. Creation and perfection of government security


             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 [of Utah];
             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 [deems] considers advisable and
             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 [deemed] considered advisable, and each
             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 [deemed]
             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 [deems] considers desirable; and
             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 [deemed] considered conducive to
             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 [deems] considers it appropriate, to convert the bonds or some portion of the
             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      [deemed] considered necessary in order to provide for the maintenance of the public health and
             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 [ 11-14-17 ] 11-14-306 .
             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 [ 11-14-19.5 ] 11-14-311 ,
             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 [deemed] considered duly paid and discharged for the purpose of any applicable
             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 [ 11-14-15 ] 11-14-304 .
             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 [ 11-14-22 ] 11-14-401 , this
             1851      act is specifically made applicable to registered public obligations issued under Title 11,
             1852      Chapter 14, [Utah Municipal Bond] Local Government Bonding Act, in accordance with
             1853      Section [ 11-14-16 ] 11-14-305 .
             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, [Utah Municipal Bond] Local Government Bonding Act. The revenue
             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, [Utah Municipal Bond] Local Government Bonding Act;
             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, [Utah Municipal Bond] Local Government Bonding Act, for the holding
             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, [Utah
             1912      Municipal Bond] Local Government Bonding Act.
             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, [Utah Municipal Bond] Local Government Bonding
             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, [Utah Municipal Bond] Local Government
             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      [Utah Municipal Bond] Local Government Bonding Act. The board may for purposes of the
             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, [Utah Municipal Bond] Local Government Bonding Act.
             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, [Utah Municipal Bond] Local
             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 [ 11-14-14.5 , 11-14-15 , 11-14-16 , 11-14-19.7 , 11-14-20 ,
             2029      11-14-21 , 11-14-22 , 11-14-24 , and 11-14-25 ] 11-14-303 , 11-14-304 , 11-13-305 , 11-14-313 ,
             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      [Utah Municipal Bond] Local Government Bonding Act. The expenses of such election shall
             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, [Utah Municipal Bond] Local
             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, [Utah Municipal Bond] Local Government Bonding Act, and Title 11, Chapter 27, Utah
             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, [Utah
             2200      Municipal Bond] Local Government Bonding Act:
             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      [Utah Municipal Bond] Local Government Bonding Act, no irrigation district may issue bonds,
             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, [Utah Municipal
             2277      Bond] Local Government Bonding Act. The declaration of public interest or necessity so
             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, [Utah Municipal Bond] Local Government Bonding Act, for the
             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, [Utah Municipal Bond] Local Government Bonding Act.
             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 [of Utah] as they now exist or may be amended for the holding of elections in
             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, [Utah Municipal Bond] Local Government Bonding Act,
             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, [Utah Municipal Bond] Local Government
             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 [Article XIV, Section 8,] the Utah Constitution[,] and Section [ 11-14-2 ] 11-14-201 is
             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, [Utah
             2369      Municipal Bond] Local Government Bonding Act, the bonds required to be issued shall be
             2370      issued in accordance with Title 11, Chapter 14, [Utah Municipal Bond] Local Government
             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, [Utah Municipal Bond] Local Government Bonding Act.
             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 [ 11-14-15 ] 11-14-304 with regard to the
             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 [ 11-14-15 ] 11-14-304 , with regard to the use of
             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 [ 11-14-17.6 ] 11-14-308 .
             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      [Utah Municipal Bond] Local Government Bonding Act.
             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, [Utah Municipal Bond] Local
             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, [Utah Municipal Bond] Local Government Bonding
             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      [Utah Municipal Bond] Local Government Bonding Act, and may be in the form and
             2564      denominations and have provisions and details permitted by Title 11, Chapter 14, [Utah
             2565      Municipal Bond] Local Government Bonding Act, except that the bonds shall mature serially
             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      [Utah Municipal Bond] Local Government Bonding Act:
             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, [Utah Municipal Bond] Local Government
             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, [Utah Municipal Bond] Local
             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, [Utah Municipal Bond] Local Government Bonding Act.


             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, [Utah Municipal
             2922      Bond] Local Government Bonding Act, and Title 11, Chapter 27, Utah Refunding Bond Act, to
             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 [ 11-14-21 (3)] 11-14-316 (2).
             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