H.B. 109

1

MUNICIPAL VOTING REQUIREMENT FOR
2 SALE OF PUBLIC LAND
3 2007 GENERAL SESSION
4 STATE OF UTAH
5 Chief Sponsor: Neil A. Hansen
6 Senate Sponsor: ____________
7
8 LONG TITLE
9 General Description:
10 This bill modifies the Utah Municipal Code relating to a municipality's disposal of land.
11 Highlighted Provisions:
12 This bill:
13 . requires voter approval of a municipality's intended disposal of a parcel of real
14 property with a value of $1,000,000 or more.
15 Monies Appropriated in this Bill:
16 None
17 Other Special Clauses:
18 None
19 Utah Code Sections Affected:
20 AMENDS:
21 10-8-2, as last amended by Chapters 136 and 254, Laws of Utah 2005
22
23 Be it enacted by the Legislature of the state of Utah:
24 Section 1. Section 10-8-2 is amended to read:
25 10-8-2. Appropriations -- Acquisition and disposal of property -- Municipal
26 authority -- Corporate purpose -- Procedure -- Notice of intent to acquire real property.
27 (1) (a) A municipal legislative body may:

28 (i) appropriate money for corporate purposes only;
29 (ii) provide for payment of debts and expenses of the corporation;
30 (iii) subject to Subsections (4) and (5), purchase, receive, hold, sell, lease, convey, and
31 dispose of real and personal property for the benefit of the municipality, whether the property is
32 within or without the municipality's corporate boundaries;
33 (iv) improve, protect, and do any other thing in relation to this property that an
34 individual could do; and
35 (v) subject to Subsection (2) and after first holding a public hearing, authorize
36 municipal services or other nonmonetary assistance to be provided to or waive fees required to
37 be paid by a nonprofit entity, whether or not the municipality receives consideration in return.
38 (b) A municipality may:
39 (i) furnish all necessary local public services within the municipality;
40 (ii) purchase, hire, construct, own, maintain and operate, or lease public utilities
41 located and operating within and operated by the municipality; and
42 (iii) subject to Subsection (1)(c), acquire by eminent domain, or otherwise, property
43 located inside or outside the corporate limits of the municipality and necessary for any of the
44 purposes stated in Subsections (1)(b)(i) and (ii), subject to restrictions imposed by Title 78,
45 Chapter 34, Eminent Domain, and general law for the protection of other communities.
46 (c) Each municipality that intends to acquire property by eminent domain under
47 Subsection (1)(b) shall, upon the first contact with the owner of the property sought to be
48 acquired, deliver to the owner a copy of a booklet or other materials provided by the [property
49 rights ombudsman] Office of the Property Rights Ombudsman, created under Section
50 [ 63-34-13 ] 13-43-201 , dealing with the property owner's rights in an eminent domain
51 proceeding.
52 (d) Subsection (1)(b) may not be construed to diminish any other authority a
53 municipality may claim to have under the law to acquire by eminent domain property located
54 inside or outside the municipality.
55 (2) Services or assistance provided pursuant to Subsection (1) (a)(v) is not subject to
56 the provisions of Subsection (3). The total amount of services or other nonmonetary assistance
57 provided or fees waived under Subsection (1) (a)(v) in any given fiscal year may not exceed
58 1% of the municipality's budget for that fiscal year.

59 (3) It is considered a corporate purpose to appropriate money for any purpose that, in
60 the judgment of the municipal legislative body, provides for the safety, health, prosperity,
61 moral well-being, peace, order, comfort, or convenience of the inhabitants of the municipality
62 subject to the following:
63 (a) The net value received for any money appropriated shall be measured on a
64 project-by-project basis over the life of the project.
65 (b) The criteria for a determination under this Subsection (3) shall be established by the
66 municipality's legislative body. A determination of value received, made by the municipality's
67 legislative body, shall be presumed valid unless it can be shown that the determination was
68 arbitrary, capricious, or illegal.
69 (c) The municipality may consider intangible benefits received by the municipality in
70 determining net value received.
71 (d) Prior to the municipal legislative body making any decision to appropriate any
72 funds for a corporate purpose under this section, a public hearing shall be held. Notice of the
73 hearing shall be published in a newspaper of general circulation at least 14 days prior to the
74 date of the hearing, or, if there is no newspaper of general circulation, by posting notice in at
75 least three conspicuous places within the municipality for the same time period.
76 (e) A study shall be performed before notice of the public hearing is given and shall be
77 made available at the municipality for review by interested parties at least 14 days immediately
78 prior to the public hearing, setting forth an analysis and demonstrating the purpose for the
79 appropriation. In making the study, the following factors shall be considered:
80 (i) what identified benefit the municipality will receive in return for any money or
81 resources appropriated;
82 (ii) the municipality's purpose for the appropriation, including an analysis of the way
83 the appropriation will be used to enhance the safety, health, prosperity, moral well-being,
84 peace, order, comfort, or convenience of the inhabitants of the municipality; and
85 (iii) whether the appropriation is necessary and appropriate to accomplish the
86 reasonable goals and objectives of the municipality in the area of economic development, job
87 creation, affordable housing, blight elimination, job preservation, the preservation of historic
88 structures and property, and any other public purpose.
89 (f) An appeal may be taken from a final decision of the municipal legislative body, to

90 make an appropriation. The appeal shall be filed within 30 days after the date of that decision,
91 to the district court. Any appeal shall be based on the record of the proceedings before the
92 legislative body. A decision of the municipal legislative body shall be presumed to be valid
93 unless the appealing party shows that the decision was arbitrary, capricious, or illegal.
94 (g) The provisions of this Subsection (3) apply only to those appropriations made after
95 May 6, 2002.
96 (h) This section shall only apply to appropriations not otherwise approved pursuant to
97 Title 10, Chapter 5, Uniform Fiscal Procedures Act for Utah Towns, or Title 10, Chapter 6,
98 Uniform Fiscal Procedures Act for Utah Cities.
99 (4) (a) (i) Before a municipality may dispose of a significant parcel of real property, the
100 municipality shall:
101 [(i)] (A) provide reasonable notice of the proposed disposition at least 14 days before
102 the opportunity for public comment under Subsection (4)(a)[(ii)] (i)(B); and
103 [(ii)] (B) allow an opportunity for public comment on the proposed disposition.
104 [(b)] (ii) Each municipality shall, by ordinance, define what constitutes:
105 [(i)] (A) a significant parcel of real property for purposes of this Subsection (4)(a); and
106 [(ii)] (B) reasonable notice for purposes of Subsection (4)(a)(i)(A).
107 (b) In addition to the requirements of Subsection (4)(a), before a municipality may
108 dispose of a parcel or set of contiguous parcels of real property with a market value of
109 $1,000,000 or more, the municipality shall obtain voter approval of the disposal at a municipal
110 general election or a regular general election.
111 (5) (a) Except as provided in Subsection (5)(d), each municipality intending to acquire
112 real property for the purpose of expanding the municipality's infrastructure or other facilities
113 used for providing services that the municipality offers or intends to offer shall provide written
114 notice, as provided in this Subsection (5), of its intent to acquire the property if:
115 (i) the property is located:
116 (A) outside the boundaries of the municipality; and
117 (B) in a county of the first or second class; and
118 (ii) the intended use of the property is contrary to:
119 (A) the anticipated use of the property under the general plan of the county in whose
120 unincorporated area or the municipality in whose boundaries the property is located; or

121 (B) the property's current zoning designation.
122 (b) Each notice under Subsection (5)(a) shall:
123 (i) indicate that the municipality intends to acquire real property;
124 (ii) identify the real property; and
125 (iii) be sent to:
126 (A) each county in whose unincorporated area and each municipality in whose
127 boundaries the property is located; and
128 (B) each affected entity.
129 (c) A notice under this Subsection (5) is a protected record as provided in Subsection
130 63-2-304 (7).
131 (d) (i) The notice requirement of Subsection (5)(a) does not apply if the municipality
132 previously provided notice under Section 10-9a-203 identifying the general location within the
133 municipality or unincorporated part of the county where the property to be acquired is located.
134 (ii) If a municipality is not required to comply with the notice requirement of
135 Subsection (5)(a) because of application of Subsection (5)(d)(i), the municipality shall provide
136 the notice specified in Subsection (5)(a) as soon as practicable after its acquisition of the real
137 property.




Legislative Review Note
as of 11-17-06 12:51 PM

Office of Legislative Research and General Counsel