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Second Substitute H.B. 256

Representative David Ure proposes the following substitute bill:




Sponsor: Ann W. Hardy

             6      LONG TITLE
             7      General Description:
             8          This bill modifies certain local government provisions related to local government
             9      authority.
             10      Highlighted Provisions:
             11          This bill:
             12          .    authorizes municipalities to:
             13              .    furnish necessary local public services;
             14              .    purchase, hire, construct, own, maintain, and operate, or lease, local public
             15      utilities; and
             16              .    acquire by eminent domain or other means property that is inside or outside the
             17      municipality and that is necessary for those purposes, subject to certain
             18      restrictions;
             19          .    authorizes certain project entities to acquire property by eminent domain;
             20          .    excludes water rights from the property that certain project entities may acquire by
             21      eminent domain;
             22          .    requires municipalities and project entities that acquire certain property by eminent
             23      domain to provide property rights ombudsman materials on eminent domain to the
             24      property owner;
             25          .    limits the exercise of eminent domain by the state, counties, and municipalities for

             26      public transit purposes to property within their boundaries; and
             27          .    enacts legislative intent language.
             28      Monies Appropriated in this Bill:
             29          None
             30      Other Special Clauses:
             31          None
             32      Utah Code Sections Affected:
             33      AMENDS:
             34          10-8-2, as last amended by Chapter 99, Laws of Utah 2004
             35          17A-2-1016, as last amended by Chapter 167, Laws of Utah 2004
             36      ENACTS:
             37          11-13-314, Utah Code Annotated 1953
             38      Uncodified Material Affected:
             41      Be it enacted by the Legislature of the state of Utah:
             42          Section 1. Section 10-8-2 is amended to read:
             43           10-8-2. Appropriations -- Acquisition and disposal of property -- Corporate
             44      purpose -- Procedure -- Notice of intent to acquire real property.
             45          (1) (a) A municipal legislative body may:
             46          [(a)] (i) appropriate money for corporate purposes only;
             47          [(b)] (ii) provide for payment of debts and expenses of the corporation;
             48          [(c)] (iii) subject to Subsections (4) and (5), purchase, receive, hold, sell, lease, convey,
             49      and dispose of real and personal property for the benefit of the municipality, whether the
             50      property is within or without the municipality's corporate boundaries;
             51          [(d)] (iv) improve, protect, and do any other thing in relation to this property that an
             52      individual could do; and
             53          [(e)] (v) subject to Subsection (2) and after first holding a public hearing, authorize
             54      municipal services or other nonmonetary assistance to be provided to or waive fees required to
             55      be paid by a nonprofit entity, whether or not the municipality receives consideration in return.
             56          (b) A municipality may:

             57          (i) furnish all necessary local public services within the municipality;
             58          (ii) purchase, hire, construct, own, maintain and operate, or lease public utilities
             59      located and operating within and operated by the municipality; and
             60          (iii) subject to Subsection (1)(c), acquire by eminent domain, or otherwise, property
             61      located inside or outside the corporate limits of the municipality and necessary for any of the
             62      purposes stated in Subsections (1)(b)(i) and (ii), subject to restrictions imposed by Title 78,
             63      Chapter 34, Eminent Domain, and general law for the protection of other communities.
             64          (c) Each municipality that intends to acquire property by eminent domain under
             65      Subsection (1)(b) shall, upon the first contact with the owner of the property sought to be
             66      acquired, deliver to the owner a copy of a booklet or other materials provided by the property
             67      rights ombudsman, created under Section 63-34-13 , dealing with the property owner's rights in
             68      an eminent domain proceeding.
             69          (d) Subsection (1)(b) may not be construed to diminish any other authority a
             70      municipality may claim to have under the law to acquire by eminent domain property located
             71      inside or outside the municipality.
             72          (2) Services or assistance provided pursuant to Subsection (1)(e) is not subject to the
             73      provisions of Subsection (3). The total amount of services or other nonmonetary assistance
             74      provided or fees waived under Subsection (1)(e) in any given fiscal year may not exceed 1% of
             75      the municipality's budget for that fiscal year.
             76          (3) It is considered a corporate purpose to appropriate money for any purpose that, in
             77      the judgment of the municipal legislative body, provides for the safety, health, prosperity,
             78      moral well-being, peace, order, comfort, or convenience of the inhabitants of the municipality
             79      subject to the following:
             80          (a) The net value received for any money appropriated shall be measured on a
             81      project-by-project basis over the life of the project.
             82          (b) The criteria for a determination under this Subsection (3) shall be established by the
             83      municipality's legislative body. A determination of value received, made by the municipality's
             84      legislative body, shall be presumed valid unless it can be shown that the determination was
             85      arbitrary, capricious, or illegal.
             86          (c) The municipality may consider intangible benefits received by the municipality in
             87      determining net value received.

             88          (d) Prior to the municipal legislative body making any decision to appropriate any
             89      funds for a corporate purpose under this section, a public hearing shall be held. Notice of the
             90      hearing shall be published in a newspaper of general circulation at least 14 days prior to the
             91      date of the hearing, or, if there is no newspaper of general circulation, by posting notice in at
             92      least three conspicuous places within the municipality for the same time period.
             93          (e) A study shall be performed before notice of the public hearing is given and shall be
             94      made available at the municipality for review by interested parties at least 14 days immediately
             95      prior to the public hearing, setting forth an analysis and demonstrating the purpose for the
             96      appropriation. In making the study, the following factors shall be considered:
             97          (i) what identified benefit the municipality will receive in return for any money or
             98      resources appropriated;
             99          (ii) the municipality's purpose for the appropriation, including an analysis of the way
             100      the appropriation will be used to enhance the safety, health, prosperity, moral well-being,
             101      peace, order, comfort, or convenience of the inhabitants of the municipality; and
             102          (iii) whether the appropriation is necessary and appropriate to accomplish the
             103      reasonable goals and objectives of the municipality in the area of economic development, job
             104      creation, affordable housing, blight elimination, job preservation, the preservation of historic
             105      structures and property, and any other public purpose.
             106          (f) An appeal may be taken from a final decision of the municipal legislative body, to
             107      make an appropriation. The appeal shall be filed within 30 days after the date of that decision,
             108      to the district court. Any appeal shall be based on the record of the proceedings before the
             109      legislative body. A decision of the municipal legislative body shall be presumed to be valid
             110      unless the appealing party shows that the decision was arbitrary, capricious, or illegal.
             111          (g) The provisions of this Subsection (3) apply only to those appropriations made after
             112      May 6, 2002.
             113          (h) This section shall only apply to appropriations not otherwise approved pursuant to
             114      Title 10, Chapter 5, Uniform Fiscal Procedures Act for Utah Towns, or Title 10, Chapter 6,
             115      Uniform Fiscal Procedures Act for Utah Cities.
             116          (4) (a) Before a municipality may dispose of a significant parcel of real property, the
             117      municipality shall:
             118          (i) provide reasonable notice of the proposed disposition at least 14 days before the

             119      opportunity for public comment under Subsection (4)(a)(ii); and
             120          (ii) allow an opportunity for public comment on the proposed disposition.
             121          (b) Each municipality shall, by ordinance, define what constitutes:
             122          (i) a significant parcel of real property for purposes of Subsection (4)(a); and
             123          (ii) reasonable notice for purposes of Subsection (4)(a)(i).
             124          (5) (a) Except as provided in Subsection (5)(d), each municipality intending to acquire
             125      real property for the purpose of expanding the municipality's infrastructure or other facilities
             126      used for providing services that the municipality offers or intends to offer shall provide written
             127      notice, as provided in this Subsection (5), of its intent to acquire the property if:
             128          (i) the property is located:
             129          (A) outside the boundaries of the municipality; and
             130          (B) in a county of the first or second class; and
             131          (ii) the intended use of the property is contrary to:
             132          (A) the anticipated use of the property under the general plan of the county in whose
             133      unincorporated area or the municipality in whose boundaries the property is located; or
             134          (B) the property's current zoning designation.
             135          (b) Each notice under Subsection (5)(a) shall:
             136          (i) indicate that the municipality intends to acquire real property;
             137          (ii) identify the real property; and
             138          (iii) be sent to:
             139          (A) each county in whose unincorporated area and each municipality in whose
             140      boundaries the property is located; and
             141          (B) each affected entity.
             142          (c) A notice under this Subsection (5) is a protected record as provided in Subsection
             143      63-2-304 (7).
             144          (d) (i) The notice requirement of Subsection (5)(a) does not apply if the municipality
             145      previously provided notice under Section 10-9-301.5 identifying the general location within the
             146      municipality or unincorporated part of the county where the property to be acquired is located.
             147          (ii) If a municipality is not required to comply with the notice requirement of
             148      Subsection (5)(a) because of application of Subsection (5)(d)(i), the municipality shall provide
             149      the notice specified in Subsection (5)(a) as soon as practicable after its acquisition of the real

             150      property.
             151          Section 2. Section 11-13-314 is enacted to read:
             152          11-13-314. Eminent domain authority of certain project entities.
             153          (1) (a) Subject to Subsection (2) a project entity created before January 1, 1980 that
             154      owns additional project capacity may acquire property within the state through eminent
             155      domain, subject to restrictions imposed by Title 78, Chapter 34, Eminent Domain, and general
             156      law for the protection of other communities.
             157          (b) Subsection (1)(a) may not be construed to:
             158          (i) give a project entity the authority to acquire water rights by eminent domain; or
             159          (ii) diminish any other authority a project entity may claim to have under the law to
             160      acquire property by eminent domain.
             161          (2) Each project entity that intends to acquire property by eminent domain under
             162      Subsection (1)(a) shall, upon the first contact with the owner of the property sought to be
             163      acquired, deliver to the owner a copy of a booklet or other materials provided by the property
             164      rights ombudsman, created under Section 63-34-13 , dealing with the property owner's rights in
             165      an eminent domain proceeding.
             166          Section 3. Section 17A-2-1016 is amended to read:
             167           17A-2-1016. Powers of incorporated district -- Bidding -- Eminent domain.
             168          (1) As used in this section, "operator" means any city, public agency, person, firm, or
             169      private corporation engaged in the transportation of passengers for hire.
             170          (2) Any district incorporated under this part may:
             171          (a) have perpetual succession;
             172          (b) sue and be sued in all actions and proceedings and in all courts and tribunals of
             173      competent jurisdiction;
             174          (c) adopt a corporate seal and alter it at pleasure;
             175          (d) levy and collect taxes only for paying:
             176          (i) the principal and interest of bonded indebtedness of the district; or
             177          (ii) any final judgment obtained against the district beyond the amount of any
             178      collectable insurance or indemnity policy if the district is required by final order of any court of
             179      competent jurisdiction to levy a tax to pay the judgment;
             180          (e) take by grant, purchase, bequest, devise, or lease, and to hold, enjoy, lease, sell,

             181      encumber, alien, or otherwise dispose of real or personal property of every kind within the
             182      district;
             183          (f) make contracts and enter into stipulations of any nature, including contracts and
             184      stipulations:
             185          (i) to indemnify and save harmless;
             186          (ii) to do all acts to exercise the powers granted in this part; and
             187          (iii) with any department or agency of the United States of America, of the state, or
             188      with any public agency or private person, firm, or corporation upon terms and conditions the
             189      board of trustees finds are in the best interests of the district;
             190          (g) (i) insure against:
             191          (A) loss of revenues from accident or destruction of the system or any part of the
             192      system, from any cause whatsoever; or
             193          (B) public liability or property damage, or against all other types of events, acts, or
             194      omissions; and
             195          (ii) provide in the proceedings authorizing the issuance of any bonds for the carrying of
             196      any other insurance, in an amount and of such character as may be specified, and for the
             197      payment of the premiums on the insurance;
             198          (h) provide a public transit system for the transportation of passengers and their
             199      incidental baggage;
             200          (i) purchase all supplies, equipment, and materials;
             201          (j) construct facilities and works, but when the expenditure required exceeds $25,000
             202      construction shall be let in accordance with Title 63, Chapter 56, Utah Procurement Code;
             203          (k) acquire, contract for, lease, construct, own, operate, control, or use rights-of-way,
             204      rail lines, monorails, bus lines, stations, platforms, switches, yards, terminals, parking lots, any
             205      facilities necessary or convenient for public transit service, and all structures necessary for
             206      access by persons and vehicles;
             207          (l) hire, lease, or contract for the supplying of, or management of, any facilities,
             208      operations, equipment, services, employees, or management staff of any operator and provide
             209      for subleases or subcontracts by the operator upon terms that are in the public interest; and
             210          (m) operate feeder bus lines and other feeder services as necessary.
             211          (3) (a) Bids or proposals shall be advertised through public notice as determined by the

             212      board.
             213          (b) The notice may include publication in a newspaper of general circulation in the
             214      district, trade journal, or other method determined by the board at least once and not less than
             215      ten days prior to the expiration of the period within which bids or proposals are received.
             216          (c) The board may reject any and all bids or proposals and readvertise or give renotice
             217      at its discretion.
             218          (d) If, after rejecting bids or proposals, the board determines and declares by vote of
             219      two-thirds of all its members present that in its opinion the supplies, equipment, and materials
             220      may be purchased at a lower price in the open market, the board may proceed to purchase the
             221      same in the open market without further observance of the provisions requiring contracts, bids
             222      or proposals, advertisement, or notice.
             223          (e) Contracts, in writing or otherwise, may be let without advertising for or inviting
             224      bids when any repairs, alterations, or other work or the purchase of materials, supplies,
             225      equipment, or other property is found by the board upon a two-thirds vote of its members
             226      present to be of urgent necessity, or where the general manager certifies by affidavit that there
             227      is only one source for the required supplies, equipment, and materials, or construction items.
             228          (f) If any payment on a contract with a private contractor to construct facilities under
             229      this section is retained or withheld, it shall be retained or withheld and released as provided in
             230      Section 13-8-5 .
             231          (4) (a) Installations in state highways or freeways are subject to the approval of the
             232      Department of Transportation.
             233          (b) It is presumed that the use of the streets, roads, highways, and other public places
             234      by the district for any of the purposes permitted in this section constitutes no greater burden on
             235      adjoining properties than the uses existing on July 9, 1969.
             236          (c) If facilities, other than state highways or freeways referred to in Subsection (2),
             237      including streets, roads, highways, pipelines, sewers, water mains, storm drains, poles, and
             238      communications wires of another public agency of the state, or of a private owner must be
             239      relocated, replaced, or altered in order for the district to construct or operate its system, or to
             240      preserve and maintain already constructed district facilities, the facilities shall be relocated,
             241      replaced, or altered with reasonable promptness by the respective public corporation, state, or
             242      private owner and the district shall by prior agreement reimburse the public corporation, state,

             243      or private owner for the reasonable cost incurred in relocation, replacement, or alteration.
             244          (d) The district may enter into an agreement with any city or county having jurisdiction
             245      over the street, road, or highway involved and, as may be provided by agreement, close any city
             246      street or county road at or near the point of its interception with any district facility or provide
             247      for carrying the city street or county road over or under or to a connection with the district
             248      facility and may do any and all work on the city street or county road as is necessary. A city
             249      street or county road may not be closed directly or indirectly by the construction of district
             250      facilities except:
             251          (i) pursuant to agreement; or
             252          (ii) while temporarily necessary during the construction of district facilities.
             253          (5) The state, a municipality, or a county may acquire private property interests within
             254      its respective boundaries by eminent domain pursuant to Title 78, Chapter 34, Eminent
             255      Domain, including fee simple, easements, air rights, rights-of-way, and other private property
             256      interests necessary to the establishment and operation of a public transit district.
             257          Section 4. Legislative intent.
             258          It is the intent of the Legislature that the Water Issues Task Force study the issue of a
             259      governmental entity's acquisition by eminent domain of water rights outside the entity's
             260      boundaries and provide a recommendation or make a report to the Natural Resources,
             261      Agriculture, and Environment Interim Committee and the Political Subdivisions Interim
             262      Committee.

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