H.B. 16 Enrolled

1

ASSESSMENT AREA AMENDMENTS
2 2009 GENERAL SESSION
3 STATE OF UTAH
4 Chief Sponsor: Fred R Hunsaker
5 Senate Sponsor: Dennis E. Stowell
6
7 LONG TITLE
8 General Description:
9 This bill modifies provisions relating to assessment areas.
10 Highlighted Provisions:
11 This bill:
12 . modifies definitions;
13 . authorizes other political subdivisions of the state, in addition to counties, cities,
14 towns, special service districts, and local districts, to designate an assessment area
15 and levy assessments;
16 . clarifies which improvements a notice of a proposed designation resolution or
17 ordinance may make provision for;
18 . modifies which owners of property may file a protest to a proposed assessment area
19 or assessment;
20 . modifies the conditions under which a local entity may designate an assessment
21 area;
22 . modifies the conditions under which a local entity may add to a designated
23 assessment area;
24 . modifies items that can be included in the levy of an assessment;
25 . modifies the possible makeup of a board of equalization for assessment purposes;
26 . specifies a time within which a board of equalization must mail a copy of the
27 board's final report;
28 . allows a local entity to publish a summary of an adopted assessment resolution or
29 ordinance rather than the resolution or ordinance itself;

30 . modifies a provision relating to an amendment of an assessment resolution or
31 ordinance that results in an increase of an assessment;
32 . includes capitalized interest in the items for which proceeds of bond anticipation
33 notes may be used;
34 . authorizes a local entity to include interest accruing on bond anticipation notes in
35 the cost of improvements;
36 . includes assessments in the list of items from which warrants or bond anticipation
37 notes are to be paid;
38 . modifies a provision relating to how assessment bonds are to be issued;
39 . includes interim warrants in a provision requiring the local entity to provide for the
40 retirement of the obligation; and
41 . makes technical changes.
42 Monies Appropriated in this Bill:
43 None
44 Other Special Clauses:
45 None
46 Utah Code Sections Affected:
47 AMENDS:
48 11-42-102, as last amended by Laws of Utah 2008, Chapter 360
49 11-42-202, as enacted by Laws of Utah 2007, Chapter 329
50 11-42-203, as enacted by Laws of Utah 2007, Chapter 329
51 11-42-205, as last amended by Laws of Utah 2008, Chapter 382
52 11-42-207, as enacted by Laws of Utah 2007, Chapter 329
53 11-42-301, as enacted by Laws of Utah 2007, Chapter 329
54 11-42-401, as enacted by Laws of Utah 2007, Chapter 329
55 11-42-403, as enacted by Laws of Utah 2007, Chapter 329
56 11-42-404, as enacted by Laws of Utah 2007, Chapter 329
57 11-42-410, as enacted by Laws of Utah 2007, Chapter 329

58 11-42-602, as enacted by Laws of Utah 2007, Chapter 329
59 11-42-603, as enacted by Laws of Utah 2007, Chapter 329
60 11-42-605, as last amended by Laws of Utah 2008, Chapter 250
61 11-42-702, as enacted by Laws of Utah 2007, Chapter 329
62 63G-2-103, as last amended by Laws of Utah 2008, Chapter 155 and renumbered and
63 amended by Laws of Utah 2008, Chapter 382
64
65 Be it enacted by the Legislature of the state of Utah:
66 Section 1. Section 11-42-102 is amended to read:
67 11-42-102. Definitions.
68 (1) "Adequate protests" means timely filed, written protests under Section 11-42-203
69 that represent at least 50% of the frontage, area, taxable value, fair market value, lots, number
70 of connections, or equivalent residential units of the property proposed to be assessed,
71 according to the same assessment method by which the assessment is proposed to be levied,
72 after eliminating:
73 (a) protests relating to:
74 (i) property that has been deleted from a proposed assessment area; or
75 (ii) an improvement that has been deleted from the proposed improvements to be
76 provided to property within the proposed assessment area; and
77 (b) protests that have been withdrawn under Subsection 11-42-203 (3).
78 (2) "Assessment area" means an area, or, if more than one area is designated, the
79 aggregate of all areas within a local entity's jurisdictional boundaries that is designated by a
80 local entity under Part 2, Designating an Assessment Area, for the purpose of financing the
81 costs of improvements, operation and maintenance, or economic promotion activities that
82 benefit property within the area.
83 (3) "Assessment bonds" means bonds that are:
84 (a) issued under Section 11-42-605 ; and
85 (b) payable in part or in whole from assessments levied in an assessment area,

86 improvement revenues, and a guaranty fund or reserve fund.
87 (4) "Assessment fund" means a special fund that a local entity establishes under
88 Section 11-42-412 .
89 (5) "Assessment lien" means a lien on property within an assessment area that arises
90 from the levy of an assessment, as provided in Section 11-42-501 .
91 (6) "Assessment method" means the method by which an assessment is levied against
92 property, whether by frontage, area, taxable value, fair market value, lot, number of
93 connections, equivalent residential unit, or any combination of these methods.
94 (7) "Assessment ordinance" means an ordinance adopted by a local entity under
95 Section 11-42-404 that levies an assessment on benefitted property within an assessment area.
96 (8) "Assessment resolution" means a resolution adopted by a local entity under Section
97 11-42-404 that levies an assessment on benefitted property within an assessment area.
98 (9) "Benefitted property" means property within an assessment area that directly or
99 indirectly benefits from improvements, operation and maintenance, or economic promotion
100 activities.
101 (10) "Bond anticipation notes" means notes issued under Section 11-42-602 in
102 anticipation of the issuance of assessment bonds.
103 (11) "Bonds" means assessment bonds and refunding assessment bonds.
104 (12) "Commercial area" means an area in which at least 75% of the property is
105 devoted to the interchange of goods or commodities.
106 (13) "Connection fee" means a fee charged by a local entity to pay for the costs of
107 connecting property to a publicly owned sewer, storm drainage, water, gas,
108 [telecommunications] communications, or electrical system, whether or not improvements are
109 installed on the property.
110 (14) "Contract price" means:
111 (a) the cost of acquiring an improvement, if the improvement is acquired; or
112 (b) the amount payable to one or more contractors for the design, engineering,
113 inspection, and construction of an improvement.

114 (15) "Designation ordinance" means an ordinance adopted by a local entity under
115 Section 11-42-206 designating an assessment area.
116 (16) "Designation resolution" means a resolution adopted by a local entity under
117 Section 11-42-206 designating an assessment area.
118 (17) "Economic promotion activities" means activities that promote economic growth
119 in a commercial area of a local entity, including:
120 (a) sponsoring festivals and markets;
121 (b) promoting business investment or activities;
122 (c) helping to coordinate public and private actions; and
123 (d) developing and issuing publications designed to improve the economic well-being
124 of the commercial area.
125 (18) "Equivalent residential unit" means a dwelling, unit, or development that is equal
126 to a single-family residence in terms of the nature of its use or impact on an improvement to
127 be provided in the assessment area.
128 (19) "Governing body" means:
129 (a) for a county, city, or town, the legislative body of the county, city, or town;
130 (b) for a local district, the board of trustees of the local district; and
131 (c) for a special service district:
132 (i) the legislative body of the county, city, or town that established the special service
133 district, if no administrative control board has been appointed under Section 17D-1-301 ; or
134 (ii) the administrative control board of the special service district, if an administrative
135 control board has been appointed under Section 17D-1-301 .
136 (20) "Guaranty fund" means the fund established by a local entity under Section
137 11-42-701 .
138 (21) "Improved property" means property proposed to be assessed within an
139 assessment area upon which a residential, commercial, or other building has been built.
140 (22) "Improvement":
141 (a) means any publicly owned infrastructure, system, or other facility that:

142 [(a)] (i) a local entity is authorized to provide; or
143 [(b)] (ii) the governing body of a local entity determines is necessary or convenient to
144 enable the local entity to provide a service that the local entity is authorized to provide[.]; and
145 (b) includes facilities in an assessment area, including a private driveway, an irrigation
146 ditch, and a water turnout, that:
147 (i) can be conveniently installed at the same time as an infrastructure, system, or other
148 facility described in Subsection (22)(a); and
149 (ii) are requested by a property owner on whose property or for whose benefit the
150 infrastructure, system, or other facility is being installed.
151 (23) "Improvement revenues":
152 (a) means charges, fees, impact fees, or other revenues that a local entity receives from
153 improvements; and
154 (b) does not include revenue from assessments.
155 (24) "Incidental refunding costs" means any costs of issuing refunding assessment
156 bonds and calling, retiring, or paying prior bonds, including:
157 (a) legal and accounting fees;
158 (b) charges of [fiscal agents] financial advisors, escrow agents, certified public
159 accountant verification entities, and trustees;
160 (c) underwriting discount costs, printing costs, the costs of giving notice;
161 (d) any premium necessary in the calling or retiring of prior bonds;
162 (e) fees to be paid to the local entity to issue the refunding assessment bonds and to
163 refund the outstanding prior bonds;
164 (f) any other costs that the governing body determines are necessary or desirable to
165 incur in connection with the issuance of refunding assessment bonds; and
166 (g) any interest on the prior bonds that is required to be paid in connection with the
167 issuance of the refunding assessment bonds.
168 (25) "Installment payment date" means the date on which an installment payment of
169 an assessment is payable.

170 (26) "Interim warrant" means a warrant issued by a local entity under Section
171 11-42-601 .
172 (27) "Jurisdictional boundaries" means:
173 (a) for a county, the boundaries of the unincorporated area of the county; and
174 (b) for each other local entity, the boundaries of the local entity.
175 (28) "Local district" means a local district under Title 17B, Limited Purpose Local
176 Government Entities - Local Districts.
177 (29) "Local entity" means a county, city, town, special service district, [or] local
178 district, or other political subdivision of the state.
179 (30) "Local entity obligations" means assessment bonds, refunding assessment bonds,
180 interim warrants, and bond anticipation notes issued by a local entity.
181 (31) "Mailing address" means:
182 (a) a property owner's last-known address using the name and address appearing on
183 the last completed real property assessment roll of the county in which the property is located;
184 and
185 (b) if the property is improved property:
186 (i) the property's street number; or
187 (ii) the post office box, rural route number, or other mailing address of the property, if
188 a street number has not been assigned.
189 (32) "Net improvement revenues" means all improvement revenues that a local entity
190 has received since the last installment payment date, less all amounts payable by the local
191 entity from those improvement revenues for operation and maintenance costs.
192 (33) "Operation and maintenance costs":
193 (a) means the costs that a local entity incurs in operating and maintaining
194 improvements in an assessment area, [including] whether or not those improvements have
195 been financed under this chapter; and
196 (b) includes service charges, administrative costs, ongoing maintenance charges, and
197 tariffs or other charges for electrical, water, gas, or other utility usage.

198 [(34) "Optional facilities":]
199 [(a) means facilities in an assessment area that:]
200 [(i) can be conveniently installed at the same time as improvements in the assessment
201 area; and]
202 [(ii) are requested by a property owner on whose property or for whose benefit the
203 improvements are being installed; and]
204 [(b) includes private driveways, irrigation ditches, and water turnouts.]
205 [(35)] (34) "Overhead costs" means the actual costs incurred or the estimated costs to
206 be incurred by a local entity in connection with an assessment area for appraisals, legal fees,
207 filing fees, financial advisory charges, underwriting fees, placement fees, escrow, trustee, and
208 paying agent fees, publishing and mailing costs, costs of levying an assessment, recording
209 costs, and all other incidental costs.
210 [(36)] (35) "Prior bonds" means the assessment bonds that are refunded in part or in
211 whole by refunding assessment bonds.
212 [(37)] (36) "Prior assessment ordinance" means the ordinance levying the assessments
213 from which the prior bonds are payable.
214 [(38)] (37) "Prior assessment resolution" means the resolution levying the assessments
215 from which the prior bonds are payable.
216 [(39)] (38) "Project engineer" means the surveyor or engineer employed by or private
217 consulting engineer engaged by a local entity to perform the necessary engineering services for
218 and to supervise the construction or installation of the improvements.
219 [(40)] (39) "Property" includes real property and any interest in real property,
220 including water rights[,] and leasehold rights[, and personal property related to the property].
221 [(41)] (40) "Property price" means the price at which a local entity purchases or
222 acquires by eminent domain property to make improvements in an assessment area.
223 [(42)] (41) "Provide" or "providing," with reference to an improvement, includes the
224 acquisition, construction, reconstruction, renovation, maintenance, repair, operation, and
225 expansion of an improvement.

226 [(43)] (42) "Public agency" means:
227 (a) the state or any agency, department, or division of the state; and
228 (b) a political subdivision of the state.
229 [(44)] (43) "Reduced payment obligation" means the full obligation of an owner of
230 property within an assessment area to pay an assessment levied on the property after the
231 assessment has been reduced because of the issuance of refunding assessment bonds, as
232 provided in Section 11-42-608 .
233 [(45)] (44) "Refunding assessment bonds" means assessment bonds that a local entity
234 issues under Section 11-42-607 to refund, in part or in whole, assessment bonds.
235 [(46)] (45) "Reserve fund" means a fund established by a local entity under Section
236 11-42-702 .
237 [(47)] (46) "Service" means:
238 (a) water, sewer, storm drainage, garbage collection, library, recreation,
239 communications, or electric service[,];
240 (b) economic promotion activities[,]; or
241 (c) any other service that a local entity is required or authorized to provide.
242 [(48)] (47) "Special service district" has the same meaning as defined in Section
243 17D-1-102 .
244 [(49)] (48) "Unimproved property" means property upon which no residential,
245 commercial, or other building has been built.
246 [(50)] (49) "Voluntary assessment area" means an assessment area that contains only
247 property whose owners have voluntarily consented to an assessment.
248 Section 2. Section 11-42-202 is amended to read:
249 11-42-202. Requirements applicable to a notice of a proposed assessment area
250 designation.
251 (1) Each notice required under Subsection 11-42-201 (2)(a) shall:
252 (a) state that the local entity proposes to:
253 (i) designate one or more areas within the local entity's jurisdictional boundaries as an

254 assessment area;
255 (ii) provide an improvement to property within the proposed assessment area; and
256 (iii) finance some or all of the cost of improvements by an assessment on benefitted
257 property within the assessment area;
258 (b) describe the proposed assessment area by any reasonable method that allows an
259 owner of property in the proposed assessment area to determine that the owner's property is
260 within the proposed assessment area;
261 (c) describe, in a general way, the improvements to be provided to the assessment
262 area, including:
263 (i) the general nature of the improvements; and
264 (ii) the general location of the improvements, by reference to streets or portions or
265 extensions of streets or by any other means that the governing body chooses that reasonably
266 describes the general location of the improvements;
267 (d) a statement of the estimated cost of the improvements as determined by a project
268 engineer;
269 (e) a statement that the local entity proposes to levy an assessment on benefitted
270 property within the assessment area to pay some or all of the cost of the improvements
271 according to the estimated direct and indirect benefits to the property from the improvements;
272 (f) a statement of the assessment method by which the assessment is proposed to be
273 levied;
274 (g) a statement of the time within which and the location at which protests against
275 designation of the proposed assessment area or of the proposed improvements are required to
276 be filed and the method by which the number of protests required to defeat the designation of
277 the proposed assessment area or acquisition or construction of the proposed improvements are
278 to be determined;
279 (h) state the date, time, and place of the public hearing under Section 11-42-204 ;
280 (i) if the governing body elects to create and fund a reserve fund under Section
281 11-42-702 , a description of how the reserve fund will be funded and replenished and how

282 remaining money in the reserve fund is to be disbursed upon full payment of the bonds;
283 (j) if the governing body intends to designate a voluntary assessment area, a property
284 owner consent form that:
285 (i) estimates the total assessment to be levied against the particular parcel of property;
286 (ii) describes any additional benefits that the governing body expects the assessed
287 property to receive from the improvements; and
288 (iii) designates the date and time by which the fully executed consent form is required
289 to be submitted to the governing body;
290 (k) if the local entity intends to levy an assessment to pay operation and maintenance
291 costs or for economic promotion activities:
292 (i) a description of the operation and maintenance costs or economic promotion
293 activities to be paid by assessments and the initial estimated annual assessment to be levied;
294 (ii) a description of how the estimated assessment will be determined;
295 (iii) a description of how and when the governing body will adjust the assessment to
296 reflect current operation and maintenance costs or the costs of current economic promotion
297 activities;
298 (iv) a description of the method of assessment if different from the method of
299 assessment to be used for financing any improvement; and
300 (v) a statement of the maximum number of years over which the assessment for
301 operation and maintenance or economic promotion activities will be levied; and
302 (l) if the governing body intends to divide the proposed assessment area into zones
303 under Subsection 11-42-201 (1)(b), a description of the proposed zones.
304 (2) A notice required under Subsection 11-42-201 (2)(a) may contain other information
305 that the governing body considers to be appropriate, including:
306 (a) the amount or proportion of the cost of the improvement to be paid by the local
307 entity or from sources other than an assessment;
308 (b) the estimated amount of each type of assessment for the various improvements to
309 be financed according to the method of assessment that the governing body chooses; and

310 (c) provisions for any [optional] improvements described in Subsection
311 11-42-102 (22)(b).
312 (3) Each notice required under Subsection 11-42-201 (2)(a) shall:
313 (a) (i) be published in a newspaper of general circulation within the local entity's
314 jurisdictional boundaries, once a week for four consecutive weeks, with the last publication at
315 least five but not more than 20 days before the deadline [under Section 11-42-203 ] for filing
316 protests specified in the notice under Subsection (1)(g); or
317 (ii) if there is no newspaper of general circulation within the local entity's
318 jurisdictional boundaries, be posted in at least three public places within the local entity's
319 jurisdictional boundaries at least 20 but not more than 35 days before the deadline under
320 Section 11-42-203 for filing protests; and
321 (b) be mailed, postage prepaid, within ten days after the first publication or posting of
322 the notice under Subsection (3)(a) to each owner of property to be assessed within the
323 proposed assessment area at the property owner's mailing address.
324 Section 3. Section 11-42-203 is amended to read:
325 11-42-203. Protests.
326 (1) An owner of property that is proposed to be [included] assessed within an
327 assessment area may, within the time specified in the notice under Section 11-42-202 , file a
328 written protest against:
329 (a) the designation of the assessment area;
330 (b) the inclusion of the owner's property in the proposed assessment area;
331 (c) the proposed improvements to be acquired or constructed; or
332 (d) any other aspect of the proposed designation of an assessment area.
333 (2) Each protest under Subsection (1)(a) shall describe or otherwise identify the
334 property owned by the person filing the protest.
335 (3) An owner may withdraw a protest at any time before the conclusion of the hearing
336 under Section 11-42-204 by filing a written withdrawal with the governing body.
337 (4) If the governing body intends to assess property within the proposed assessment

338 area by type of improvement or by zone, the governing body shall, in determining whether
339 adequate protests have been filed, aggregate the protests by the type of improvement or by
340 zone.
341 (5) The failure of an owner of property within the proposed assessment area to file a
342 timely written protest constitutes a waiver of any objection to:
343 (a) the designation of the assessment area;
344 (b) any improvement to be provided to property within the assessment area; and
345 (c) the inclusion of the owner's property within the assessment area.
346 Section 4. Section 11-42-205 is amended to read:
347 11-42-205. Unimproved property.
348 (1) [A] (a) Before a local entity may [not] designate an assessment area in which more
349 than 75% of the property proposed to be assessed consists of unimproved property [unless],
350 the local entity shall obtain:
351 [(a) has obtained] (i) an appraisal:
352 (A) of the unimproved property;
353 (B) from an appraiser who is a member of the Appraisal Institute[,];
354 (C) addressed to the local entity or a financial institution; and
355 (D) verifying that the market value of the property, after completion of the proposed
356 improvements, is at least three times the amount of the [assessment] assessments proposed to
357 be levied against the unimproved property; or
358 [(b) has obtained from each owner of unimproved property:]
359 (ii) the most recent taxable value of the unimproved property from the assessor of the
360 county in which the unimproved property is located, verifying that the taxable value of the
361 property, after completion of the proposed improvements, is at least three times the amount of
362 the assessments proposed to be levied against the unimproved property.
363 (b) If the owner of the unimproved property has entered into a construction loan
364 acceptable to the local entity to finance the facilities to be constructed or installed on the
365 unimproved property, the market value of the unimproved property, as determined under

366 Subsection (1)(a)(i), may include, at the local entity's option:
367 (i) the principal amount of the construction loan; or
368 (ii) the value of the unimproved property with the facilities to be financed by the
369 construction loan, as determined by an appraisal of:
370 (A) the unimproved property; and
371 (B) the facilities proposed to be constructed.
372 (2) With respect to the designation of an assessment area described in Subsection
373 (1)(a), the local entity may require:
374 [(i)] (a) financial information acceptable to the governing body [demonstrating] with
375 respect to the owner's ability to pay the proposed [assessment; or] assessments;
376 [(ii)] (b) a financial institution's commitment securing, to the governing body's
377 satisfaction, the [owner's] owners' obligation to pay the proposed [assessment; and]
378 assessments; or
379 (c) [has prepared] a development plan, approved by a qualified, independent third
380 party, describing the plan of development and the financial feasibility of the plan, taking into
381 account growth trends, absorption studies, and other demographic information applicable to
382 the unimproved property.
383 [(2)] (3) Information that an owner provides to a local entity under Subsection
384 [(1)(b)(i)] (2)(a) is not a record for purposes of Title 63G, Chapter 2, Government Records
385 Access and Management Act.
386 Section 5. Section 11-42-207 is amended to read:
387 11-42-207. Adding property to an assessment area.
388 (1) A local entity may add to a designated assessment area property to be benefitted
389 and assessed if[: (a) construction of the improvements in the assessment area has not been
390 completed; and (b)] the governing body:
391 [(i)] (a) finds that the inclusion of the property will not adversely affect the owners of
392 property already in the assessment area;
393 [(ii)] (b) obtains from each owner of property to be added and benefitted a written

394 consent that contains:
395 [(A)] (i) the owner's consent to:
396 [(I)] (A) the owner's property being added to the assessment area; and
397 [(II)] (B) the making of the proposed improvements with respect to the owner's
398 property;
399 [(B)] (ii) the legal description and tax identification number of the property to be
400 added; and
401 [(C)] (iii) the owner's waiver of any right to protest the creation of the assessment area;
402 [(iii)] (c) amends the designation resolution or ordinance to include the added
403 property; and
404 [(iv)] (d) within 15 days after amending the designation resolution or ordinance:
405 [(A)] (i) records in the office of the recorder of the county in which the added property
406 is located the original or certified copy of the amended designation resolution or ordinance
407 containing the legal description and tax identification number of each additional parcel of
408 property added to the assessment area and proposed to be assessed; and
409 [(B)] (ii) gives written notice to the property owner of the inclusion of the owner's
410 property in the assessment area.
411 (2) The failure of a local entity's governing body to comply with the requirement of
412 Subsection (1)[(b)(iv)](d) does not affect the validity of the amended designation resolution or
413 ordinance.
414 (3) Except as provided in this section, a local entity may not add to an assessment area
415 [land] property not included in a notice under Section 11-42-202 , or provide for making
416 improvements that are not stated in the notice, unless the local entity gives notice as provided
417 in Section 11-42-202 and holds a hearing as required under Section 11-42-204 as to the added
418 [land] property or additional improvements.
419 Section 6. Section 11-42-301 is amended to read:
420 11-42-301. Improvements made only under contract let to lowest responsive,
421 responsible bidder -- Publishing notice -- Sealed bids -- Procedure -- Exceptions to

422 contract requirement.
423 (1) Except as otherwise provided in this section, a local entity may make
424 improvements in an assessment area only under contract let to the lowest responsive,
425 responsible bidder for the kind of service, material, or form of construction that the local
426 entity's governing body determines in compliance with any applicable local entity ordinances.
427 (2) A local entity may:
428 (a) divide improvements into parts;
429 (b) (i) let separate contracts for each part; or
430 (ii) combine multiple parts into the same contract; and
431 (c) let a contract on a unit basis.
432 (3) (a) A local entity may not let a contract until after publishing notice as provided in
433 Subsection (3)(b) at least one time in a newspaper of general circulation within the boundaries
434 of the local entity at least 15 days before the date specified for receipt of bids.
435 (b) Each notice under Subsection (3)(a) shall notify contractors that the local entity
436 will receive sealed bids at a specified time and place for the construction of the improvements.
437 (c) Notwithstanding a local entity's failure, through inadvertence or oversight, to
438 publish the notice or to publish the notice within 15 days before the date specified for receipt
439 of bids, the governing body may proceed to let a contract for the improvements if the local
440 entity receives at least three sealed and bona fide bids from contractors by the time specified
441 for the receipt of bids.
442 (d) A local entity may publish a notice required under this Subsection (3) at the same
443 time as a notice under Section 11-42-202 .
444 (4) (a) A local entity may accept as a sealed bid a bid that is:
445 (i) manually sealed and submitted; or
446 (ii) electronically sealed and submitted.
447 (b) The governing body or project engineer shall, at the time specified in the notice
448 under Subsection (3), open and examine the bids.
449 (c) In open session, the governing body:

450 (i) shall declare the bids; and
451 (ii) may reject any or all bids if the governing body considers the rejection to be for
452 the public good.
453 (d) The local entity may award the contract to the lowest responsive, responsible
454 bidder even if the price bid by that bidder exceeds the estimated costs as determined by the
455 project engineer.
456 (e) A local entity may in any case:
457 (i) refuse to award a contract;
458 (ii) obtain new bids after giving a new notice under Subsection (3);
459 (iii) determine to abandon the assessment area; or
460 (iv) not make some of the improvements proposed to be made.
461 (5) A local entity is not required to let a contract as provided in this section for:
462 (a) an improvement or part of an improvement the cost of which or the making of
463 which is donated or contributed;
464 (b) an improvement that consists of furnishing utility service or maintaining
465 improvements;
466 (c) labor, materials, or equipment supplied by the local entity;
467 (d) the local entity's acquisition of completed or partially completed improvements in
468 an assessment area;
469 (e) design, engineering, and inspection costs incurred with respect to the construction
470 of improvements in an assessment area; or
471 (f) additional work performed in accordance with the terms of a contract duly let to the
472 lowest responsive, responsible bidder.
473 (6) A local entity may itself furnish utility service and maintain improvements within
474 an assessment area.
475 (7) (a) A local entity may acquire completed or partially completed improvements in
476 an assessment area, but may not pay an amount for those improvements that exceeds their fair
477 market value.

478 (b) Upon the local entity's payment for completed or partially completed
479 improvements, title to the improvements shall be conveyed to the local entity or another public
480 agency.
481 (8) The provisions of Title 11, Chapter 39, Building Improvements and Public Works
482 Projects, and Section 72-6-108 do not apply to improvements to be constructed in an
483 assessment area.
484 Section 7. Section 11-42-401 is amended to read:
485 11-42-401. Levying an assessment -- Prerequisites -- Assessment list.
486 (1) A local entity may levy an assessment against property within an assessment area
487 as provided in this part.
488 (2) Before a governing body may adopt a resolution or ordinance levying an
489 assessment against property within an assessment area:
490 (a) the governing body shall:
491 (i) subject to Subsection (3), prepare an assessment list designating:
492 (A) each parcel of property proposed to be assessed; and
493 (B) the amount of the assessment to be levied against the property;
494 (ii) appoint a board of equalization as provided in Section 11-42-403 ; and
495 (iii) give notice as provided in Section 11-42-402 ; and
496 (b) the board of equalization, appointed under Section 11-42-403 , shall hold hearings,
497 make any corrections to assessments it considers appropriate, and report its findings to the
498 governing body as provided in Section 11-42-403 .
499 (3) An assessment list under Subsection (2)(a)(i) may be prepared at any time after:
500 (a) the estimated or actual operation and maintenance costs have been determined, if
501 the assessment is to pay operation and maintenance costs;
502 (b) the light service has commenced, if the assessment is to pay for light service;
503 (c) the park maintenance has commenced, if the assessment is to pay for park
504 maintenance;
505 (d) adoption of a resolution or ordinance under Section 11-42-206 , if the assessment is

506 to pay for economic promotion activities; or
507 (e) for any other assessment, the governing body has determined:
508 (i) the estimated or actual acquisition and construction costs of all proposed
509 improvements within the assessment area, including overhead costs and authorized
510 contingencies;
511 (ii) the estimated or actual property price for all property to be acquired to provide the
512 proposed improvements; and
513 (iii) the reasonable cost of any work to be done by the local entity.
514 (4) A local entity may levy an assessment for some or all of the cost of improvements
515 within an assessment area, including payment of:
516 (a) operation and maintenance costs of improvements constructed within the
517 assessment area;
518 (b) the actual cost that the local entity pays for utility services furnished or for
519 maintenance of improvements provided by another or, if the local entity itself furnishes utility
520 service or maintains improvements, for the reasonable cost of supplying the service or
521 maintenance;
522 (c) the reasonable cost of supplying labor, materials, or equipment in connection with
523 improvements; and
524 (d) the reasonable cost of connection fees or the cost of any sewer, storm drainage,
525 water, gas, electric, or [telecommunications] communications connections if the local entity
526 owns or supplies these services, to the depth that the local entity's governing body considers
527 just and equitable.
528 (5) A local entity may not levy an assessment for an amount donated or contributed for
529 an improvement or part of an improvement.
530 (6) The validity of an otherwise valid assessment is not affected because the actual
531 cost of improvements exceeds the estimated cost.
532 (7) An assessment levied to pay for operation and maintenance costs may not be levied
533 over a period of time exceeding the reasonable useful life of the facilities to be maintained by

534 the levy.
535 Section 8. Section 11-42-403 is amended to read:
536 11-42-403. Board of equalization -- Hearings -- Corrections to proposed
537 assessment list -- Report to governing body -- Appeal -- Board findings final -- Waiver of
538 objections.
539 (1) After preparing an assessment list under Subsection 11-42-401 (2)(a)(i), the
540 governing body shall appoint a board of equalization.
541 (2) Each board of equalization under this section shall, at the option of the governing
542 body, consist of:
543 (a) three or more members of the governing body;
544 (b) (i) two members of the governing body; and
545 (ii) (A) a representative of the treasurer's office of the local entity; or
546 (B) a representative of the office of the local entity's engineer or the project engineer;
547 or
548 (c) (i) (A) one member of the governing body; or
549 (B) a representative of the governing body, whether or not a member of the governing
550 body, appointed by the governing body;
551 (ii) a representative of the treasurer's office of the local entity; and
552 (iii) a representative of the office of the local entity's engineer or the project engineer.
553 (3) (a) The board of equalization shall hold hearings on at least three consecutive days
554 for at least one hour per day between 9 a.m. and 9 p.m., as specified in the notice under
555 Section 11-42-402 .
556 (b) The board of equalization may continue a hearing from time to time to a specific
557 place and a specific hour and day until the board's work is completed.
558 (c) At each hearing, the board of equalization shall hear arguments from any person
559 who claims to be aggrieved, including arguments relating to:
560 (i) the direct or indirect benefits accruing to a tract, block, lot, or parcel of property in
561 the assessment area; or

562 (ii) the amount of the proposed assessment against the tract, block, lot, or parcel.
563 (4) (a) After the hearings under Subsection (3) are completed, the board of
564 equalization shall:
565 (i) consider all facts and arguments presented at the hearings; and
566 (ii) make any corrections to the proposed assessment list that the board considers just
567 and equitable.
568 (b) A correction under Subsection (4)(a)(ii) may:
569 (i) eliminate one or more pieces of property from the assessment list; or
570 (ii) increase or decrease the amount of the assessment proposed to be levied against a
571 parcel of property.
572 (c) (i) If the board of equalization makes a correction under Subsection (4)(a)(ii) that
573 results in an increase of a proposed assessment, the board shall, before approving a corrected
574 assessment list:
575 (A) give notice as provided in Subsection (4)(c)(ii);
576 (B) hold a hearing at which the owner whose assessment is proposed to be increased
577 may appear and object to the proposed increase; and
578 (C) after holding a hearing, make any further corrections that the board considers just
579 and equitable with respect to the proposed increased assessment.
580 (ii) Each notice required under Subsection (4)(c)(i)(A) shall:
581 (A) state:
582 (I) that the property owner's assessment is proposed to be increased;
583 (II) the amount of the proposed increased assessment;
584 (III) that a hearing will be held at which the owner may appear and object to the
585 increase; and
586 (IV) the date, time, and place of the hearing; and
587 (B) be mailed, at least 15 days before the date of the hearing, to each owner of
588 property as to which the assessment is proposed to be increased at the property owner's
589 mailing address.

590 (5) (a) After the board of equalization has held all hearings required by this section
591 and has made all corrections the board considers just and equitable, the board shall report to
592 the governing body its findings that:
593 (i) each parcel of property within the assessment area will be directly or indirectly
594 benefitted in an amount not less than the assessment to be levied against the property; and
595 (ii) except as provided in Subsection 11-42-409 (6), no parcel of property on the
596 assessment list will bear more than its proportionate share of the cost of the improvements
597 benefitting the property.
598 (b) The board of equalization shall, within ten days after submitting its report to the
599 governing body, mail a copy of the board's final report to each property owner who objected at
600 the board hearings to the assessment proposed to be levied against the property owner's
601 property at the property owner's mailing address.
602 (6) (a) If a board of equalization includes members other than the governing body of
603 the local entity, a property owner may appeal a decision of the board to the governing body by
604 filing with the governing body a written notice of appeal within 15 days after the board's final
605 report is mailed to property owners under Subsection (5)(b).
606 (b) Except as provided in Subsection (6)(a), no appeal may be taken from the findings
607 of a board of equalization.
608 (7) The findings of a board of equalization are final:
609 (a) when approved by the governing body, if no appeal is allowed under Subsection
610 (6); or
611 (b) after the time for appeal under Subsection (6) is passed, if an appeal is allowed
612 under that subsection.
613 (8) (a) If a governing body has levied an assessment to pay operation and maintenance
614 costs within an assessment area, the governing body may periodically appoint a new board of
615 equalization to review assessments for operation and maintenance costs.
616 (b) Each board of equalization appointed under Subsection (8)(a) shall comply with
617 the requirements of Subsections (3) through (6).

618 (9) The failure of an owner of property within the assessment area to appear before the
619 board of equalization to object to the levy of the assessment constitutes a waiver of all
620 objections to the levy, except an objection that the governing body failed to obtain jurisdiction
621 to order that the improvements which the assessment is intended to pay be provided to the
622 assessment area.
623 Section 9. Section 11-42-404 is amended to read:
624 11-42-404. Adoption of a resolution or ordinance levying an assessment -- Notice
625 of the adoption -- Effective date of resolution or ordinance -- Notice of assessment
626 interest.
627 (1) (a) After receiving a final report from a board of equalization under Subsection
628 11-42-403 (5) or, if applicable, after the time for filing an appeal under Subsection
629 11-42-403 (6) has passed, the governing body may adopt a resolution or ordinance levying an
630 assessment against benefitted property within the assessment area.
631 (b) Each local entity that levies an assessment under this chapter shall levy the
632 assessment at one time only, unless the assessment is to pay operation and maintenance costs
633 or the costs of economic promotion activities.
634 (c) An assessment resolution or ordinance adopted under Subsection (1)(a):
635 (i) need not describe each tract, block, lot, part of block or lot, or parcel of property to
636 be assessed;
637 (ii) need not include the legal description or tax identification number of the parcels of
638 property assessed in the assessment area; and
639 (iii) is adequate for purposes of identifying the property to be assessed within the
640 assessment area if the assessment resolution or ordinance incorporates by reference the
641 corrected assessment list that describes the property assessed by legal description and tax
642 identification number.
643 (2) (a) Each local entity that adopts an assessment resolution or ordinance shall give
644 notice of the adoption by:
645 (i) publishing a copy of the resolution or ordinance, or a summary of the resolution or

646 ordinance, once in a newspaper of general circulation within the local entity's jurisdictional
647 boundaries; or
648 (ii) if there is no newspaper of general circulation with the local entity's jurisdictional
649 boundaries, posting a copy of the resolution or ordinance in at least three public places within
650 the local entity's jurisdictional boundaries for at least 21 days.
651 (b) No other publication or posting of the resolution or ordinance is required.
652 (3) Notwithstanding any other statutory provision regarding the effective date of a
653 resolution or ordinance, each assessment resolution or ordinance takes effect:
654 (a) on the date of publication or posting of the notice under Subsection (2); or
655 (b) at a later date provided in the resolution or ordinance.
656 (4) (a) The governing body of each local entity that has adopted an assessment
657 resolution or ordinance under Subsection (1) shall, within five days after the 25-day
658 prepayment period under Subsection 11-42-411 (6) has passed, file a notice of assessment
659 interest with the recorder of the county in which the assessed property is located.
660 (b) Each notice of assessment interest under Subsection (4)(a) shall:
661 (i) state that the local entity has an assessment interest in the assessed property;
662 (ii) if the assessment is to pay operation and maintenance costs or for economic
663 promotion activities, state the maximum number of years over which an assessment will be
664 payable; and
665 (iii) describe the property assessed by legal description and tax identification number.
666 (c) A local entity's failure to file a notice of assessment interest under this Subsection
667 (4) has no affect on the validity of an assessment levied under an assessment resolution or
668 ordinance adopted under Subsection (1).
669 Section 10. Section 11-42-410 is amended to read:
670 11-42-410. Amending an assessment resolution or ordinance.
671 (1) A governing body may adopt a resolution or ordinance amending the original
672 assessment resolution or ordinance adopted under Section 11-42-404 to:
673 (a) correct a deficiency, omission, error, or mistake:

674 (i) with respect to:
675 (A) the total cost of an improvement;
676 (B) operation and maintenance costs; or
677 (C) the cost of economic promotion activities; or
678 (ii) that results in a tract, lot, block, or parcel not being fully assessed or assessed in an
679 incorrect amount;
680 (b) reallocate or adjust assessments under the original assessment resolution or
681 ordinance for operation and maintenance costs or the costs of economic promotion activities;
682 (c) reallocate or adjust assessments under the original assessment resolution or
683 ordinance; or
684 (d) reduce an assessment as a result of the issuance of refunding bonds.
685 (2) If an amendment under Subsection (1)(a) or (c) results in an increase in an
686 assessment for any property owner, the governing body shall comply with the notice
687 requirements of Section 11-42-402 , unless the owner waives notice as provided in Section
688 11-42-104 .
689 Section 11. Section 11-42-602 is amended to read:
690 11-42-602. Bond anticipation notes.
691 (1) A local entity may by resolution authorize the issuance of bond anticipation notes.
692 (2) A local entity may use the proceeds from the issuance of bond anticipation notes to
693 pay:
694 (a) the estimated acquisition and contract price;
695 (b) the property price; [and]
696 (c) capitalized interest; and
697 [(c)] (d) related costs, including overhead costs.
698 (3) Each resolution authorizing the issuance of bond anticipation notes shall:
699 (a) describe the bonds in anticipation of which the bond anticipation notes are to be
700 issued;
701 (b) specify the principal amount and maturity dates of the notes; and

702 (c) specify the interest rate applicable to the notes.
703 (4) (a) The interest rate on bond anticipation notes issued under this section may be
704 fixed, variable, or a combination of fixed and variable, as determined by the governing body.
705 (b) If bond anticipation notes carry a variable interest rate, the governing body shall
706 specify the basis upon which the rate is to be determined, the manner in which the rate is to be
707 adjusted, and a maximum interest rate.
708 (c) A local entity may provide for interest on bond anticipation notes to be paid
709 semiannually, annually, or at maturity.
710 (5) A local entity may:
711 (a) issue and sell bond anticipation notes in a manner and at a price, either at, below,
712 or above face value, as the governing body determines by resolution; and
713 (b) make bond anticipation notes redeemable prior to maturity, at the governing body's
714 option and in the manner and upon the terms fixed by the resolution authorizing their
715 issuance.
716 (6) Bond anticipation notes shall be executed, be in a form, and have details and terms
717 as provided in the resolution authorizing their issuance.
718 (7) A local entity may issue bond anticipation notes to refund bond anticipation notes
719 previously issued by the local entity.
720 (8) A local entity may include interest accruing on bond anticipation notes in the cost
721 of improvements in an assessment area.
722 Section 12. Section 11-42-603 is amended to read:
723 11-42-603. Sources of payment for interim warrants and bond anticipation
724 notes.
725 Each local entity that has issued interim warrants or bond anticipation notes shall pay
726 the warrants or notes from:
727 (1) proceeds from the sale of assessment bonds;
728 (2) cash the local entity receives from the payment for improvements;
729 (3) assessments;

730 [(3)] (4) improvement revenues that are not pledged to the payment of assessment
731 bonds;
732 [(4)] (5) proceeds from the sale of interim warrants or bond anticipation notes; or
733 [(5)] (6) the local entity's guaranty fund or, if applicable, the reserve fund.
734 Section 13. Section 11-42-605 is amended to read:
735 11-42-605. Local entity may authorize the issuance of assessment bonds -- Limit
736 on amount of bonds -- Features of assessment bonds.
737 (1) After the 25-day prepayment period under Subsection 11-42-411 (6) has passed or,
738 if the 25-day prepayment period is waived under Section 11-42-104 , after the assessment
739 resolution or ordinance takes effect, a local entity may authorize the issuance of bonds to pay
740 the costs of improvements in an assessment area, and other related costs, against the funds that
741 the local entity will receive because of an assessment in an assessment area.
742 (2) The aggregate principal amount of bonds authorized under Subsection (1) may not
743 exceed the unpaid balance of assessments at the end of the 25-day prepayment period under
744 Subsection 11-42-411 (6).
745 (3) Assessment bonds issued under this section:
746 (a) are fully negotiable for all purposes;
747 (b) shall mature at a time that does not exceed the period that installments of
748 assessments in the assessment area are due and payable, plus one year;
749 (c) shall bear interest at the lowest rate or rates reasonably obtainable;
750 (d) may not be dated earlier than the effective date of the assessment ordinance;
751 (e) shall be payable at the place, shall be in the form, and shall be sold in the manner
752 and with the details that are provided in the resolution authorizing the issuance of the bonds;
753 (f) shall be issued[, as the governing body determines: (i) in bearer form, with or
754 without interest coupons attached; or (ii)] in registered form as provided in Title 15, Chapter
755 7, Registered Public Obligations Act; and
756 (g) provide that interest be paid semiannually, annually, or at another interval as
757 specified by the governing body.

758 (4) (a) A local entity may:
759 (i) (A) provide that assessment bonds be callable for redemption before maturity; and
760 (B) fix the terms and conditions of redemption, including the notice to be given and
761 any premium to be paid;
762 (ii) subject to Subsection (4)(b), require assessment bonds to bear interest at a fixed or
763 variable rate, or a combination of fixed and variable rates;
764 (iii) specify terms and conditions under which:
765 (A) assessment bonds bearing interest at a variable interest rate may be converted to
766 bear interest at a fixed interest rate; and
767 (B) the local entity agrees to repurchase the bonds; [and]
768 (iv) engage a remarketing agent and indexing agent, subject to the terms and
769 conditions that the governing body agrees to; and
770 (v) include all costs associated with assessment bonds, including any costs resulting
771 from any of the actions the local entity is authorized to take under this section, in an
772 assessment levied under Section 11-42-401 .
773 (b) If assessment bonds carry a variable interest rate, the local entity shall specify:
774 (i) the basis upon which the variable rate is to be determined over the life of the bonds;
775 (ii) the manner in which and schedule upon which the rate is to be adjusted; and
776 (iii) a maximum rate that the bonds may carry.
777 (5) (a) Nothing in this part may be construed to authorize the issuance of assessment
778 bonds to pay for the cost of ordinary repairs to pavement, sewers, drains, curbing, gutters, or
779 sidewalks.
780 (b) Notwithstanding Subsection (5)(a), a local entity may issue assessment bonds to
781 pay for extraordinary repairs to pavement, sewers, drains, curbing, gutters, or sidewalk.
782 (c) A local entity's governing body may define by resolution or ordinance what
783 constitutes ordinary repairs and extraordinary repairs for purposes of this Subsection (5).
784 (d) Nothing in this Subsection (5) may be construed to limit a local entity from
785 levying an assessment within an assessment area to pay operation and maintenance costs as

786 described in a notice under Section 11-42-402 .
787 (6) If a local entity has issued interim warrants under Section 11-42-601 or bond
788 anticipation notes under Section 11-42-602 in anticipation of assessment bonds that the local
789 entity issues under this part, the local entity shall provide for the retirement of the interim
790 warrants or bond anticipation notes contemporaneously with the issuance of the assessment
791 bonds.
792 Section 14. Section 11-42-702 is amended to read:
793 11-42-702. Reserve fund.
794 (1) In lieu of creating and funding a guaranty fund under Section 11-42-701 for an
795 issue of assessment bonds or refunding assessment bonds, a local entity may establish a
796 reserve fund to secure the issue.
797 (2) If a local entity establishes a reserve fund under this section:
798 (a) the bonds secured by the reserve fund are not secured by a guaranty fund under
799 Section 11-42-701 ;
800 (b) the local entity is not required to fund a guaranty fund under Section 11-42-701 for
801 those bonds; and
802 (c) unless otherwise provided in this part or in the proceedings authorizing the
803 issuance of bonds, the provisions of this part regarding a guaranty fund have no application to
804 the bonds that are secured by the reserve fund.
805 (3) Each local entity that establishes a reserve fund shall:
806 (a) fund and replenish the reserve fund in the amounts and manner provided in the
807 proceedings authorizing the issuance of the bonds that are secured by the reserve fund; and
808 (b) invest the funds on deposit in the reserve fund as provided in Title 51, Chapter 7,
809 State Money Management Act.
810 (4) (a) Subject to Subsection (4)(b), a local entity may replenish a reserve fund under
811 this section by any of the methods described in Subsection 11-42-701 (1)(b).
812 (b) The proceedings authorizing the issuance of assessment bonds or refunding
813 assessment bonds shall provide that if a local entity uses any of the methods described in

814 Subsection 11-42-701 (1)(b) to replenish a reserve fund, the local entity shall be reimbursed,
815 with interest at a rate that the local entity determines, with money that the local entity receives
816 from foreclosing on delinquent property.
817 (5) Upon the retirement of bonds secured by a reserve fund, the local entity shall:
818 (a) terminate the reserve fund; and
819 (b) disburse all remaining money in the fund as provided in the proceedings
820 authorizing the issuance of the bonds.
821 Section 15. Section 63G-2-103 is amended to read:
822 63G-2-103. Definitions.
823 As used in this chapter:
824 (1) "Audit" means:
825 (a) a systematic examination of financial, management, program, and related records
826 for the purpose of determining the fair presentation of financial statements, adequacy of
827 internal controls, or compliance with laws and regulations; or
828 (b) a systematic examination of program procedures and operations for the purpose of
829 determining their effectiveness, economy, efficiency, and compliance with statutes and
830 regulations.
831 (2) "Chronological logs" mean the regular and customary summary records of law
832 enforcement agencies and other public safety agencies that show:
833 (a) the time and general nature of police, fire, and paramedic calls made to the agency;
834 and
835 (b) any arrests or jail bookings made by the agency.
836 (3) "Classification," "classify," and their derivative forms mean determining whether a
837 record series, record, or information within a record is public, private, controlled, protected, or
838 exempt from disclosure under Subsection 63G-2-201 (3)(b).
839 (4) (a) "Computer program" means:
840 (i) a series of instructions or statements that permit the functioning of a computer
841 system in a manner designed to provide storage, retrieval, and manipulation of data from the

842 computer system; and
843 (ii) any associated documentation and source material that explain how to operate the
844 computer program.
845 (b) "Computer program" does not mean:
846 (i) the original data, including numbers, text, voice, graphics, and images;
847 (ii) analysis, compilation, and other manipulated forms of the original data produced
848 by use of the program; or
849 (iii) the mathematical or statistical formulas, excluding the underlying mathematical
850 algorithms contained in the program, that would be used if the manipulated forms of the
851 original data were to be produced manually.
852 (5) (a) "Contractor" means:
853 (i) any person who contracts with a governmental entity to provide goods or services
854 directly to a governmental entity; or
855 (ii) any private, nonprofit organization that receives funds from a governmental entity.
856 (b) "Contractor" does not mean a private provider.
857 (6) "Controlled record" means a record containing data on individuals that is
858 controlled as provided by Section 63G-2-304 .
859 (7) "Designation," "designate," and their derivative forms mean indicating, based on a
860 governmental entity's familiarity with a record series or based on a governmental entity's
861 review of a reasonable sample of a record series, the primary classification that a majority of
862 records in a record series would be given if classified and the classification that other records
863 typically present in the record series would be given if classified.
864 (8) "Elected official" means each person elected to a state office, county office,
865 municipal office, school board or school district office, local district office, or special service
866 district office, but does not include judges.
867 (9) "Explosive" means a chemical compound, device, or mixture:
868 (a) commonly used or intended for the purpose of producing an explosion; and
869 (b) that contains oxidizing or combustive units or other ingredients in proportions,

870 quantities, or packing so that:
871 (i) an ignition by fire, friction, concussion, percussion, or detonator of any part of the
872 compound or mixture may cause a sudden generation of highly heated gases; and
873 (ii) the resultant gaseous pressures are capable of:
874 (A) producing destructive effects on contiguous objects; or
875 (B) causing death or serious bodily injury.
876 (10) "Government audit agency" means any governmental entity that conducts an
877 audit.
878 (11) (a) "Governmental entity" means:
879 (i) executive department agencies of the state, the offices of the governor, lieutenant
880 governor, state auditor, attorney general, and state treasurer, the Board of Pardons and Parole,
881 the Board of Examiners, the National Guard, the Career Service Review Board, the State
882 Board of Education, the State Board of Regents, and the State Archives;
883 (ii) the Office of the Legislative Auditor General, Office of the Legislative Fiscal
884 Analyst, Office of Legislative Research and General Counsel, the Legislature, and legislative
885 committees, except any political party, group, caucus, or rules or sifting committee of the
886 Legislature;
887 (iii) courts, the Judicial Council, the Office of the Court Administrator, and similar
888 administrative units in the judicial branch;
889 (iv) any state-funded institution of higher education or public education; or
890 (v) any political subdivision of the state, but, if a political subdivision has adopted an
891 ordinance or a policy relating to information practices pursuant to Section 63G-2-701 , this
892 chapter shall apply to the political subdivision to the extent specified in Section 63G-2-701 or
893 as specified in any other section of this chapter that specifically refers to political subdivisions.
894 (b) "Governmental entity" also means every office, agency, board, bureau, committee,
895 department, advisory board, or commission of an entity listed in Subsection (11)(a) that is
896 funded or established by the government to carry out the public's business.
897 (12) "Gross compensation" means every form of remuneration payable for a given

898 period to an individual for services provided including salaries, commissions, vacation pay,
899 severance pay, bonuses, and any board, rent, housing, lodging, payments in kind, and any
900 similar benefit received from the individual's employer.
901 (13) "Individual" means a human being.
902 (14) (a) "Initial contact report" means an initial written or recorded report, however
903 titled, prepared by peace officers engaged in public patrol or response duties describing
904 official actions initially taken in response to either a public complaint about or the discovery
905 of an apparent violation of law, which report may describe:
906 (i) the date, time, location, and nature of the complaint, the incident, or offense;
907 (ii) names of victims;
908 (iii) the nature or general scope of the agency's initial actions taken in response to the
909 incident;
910 (iv) the general nature of any injuries or estimate of damages sustained in the incident;
911 (v) the name, address, and other identifying information about any person arrested or
912 charged in connection with the incident; or
913 (vi) the identity of the public safety personnel, except undercover personnel, or
914 prosecuting attorney involved in responding to the initial incident.
915 (b) Initial contact reports do not include follow-up or investigative reports prepared
916 after the initial contact report. However, if the information specified in Subsection (14)(a)
917 appears in follow-up or investigative reports, it may only be treated confidentially if it is
918 private, controlled, protected, or exempt from disclosure under Subsection 63G-2-201 (3)(b).
919 (15) "Legislative body" means the Legislature.
920 (16) "Notice of compliance" means a statement confirming that a governmental entity
921 has complied with a records committee order.
922 (17) "Person" means:
923 (a) an individual;
924 (b) a nonprofit or profit corporation;
925 (c) a partnership;

926 (d) a sole proprietorship;
927 (e) other type of business organization; or
928 (f) any combination acting in concert with one another.
929 (18) "Private provider" means any person who contracts with a governmental entity to
930 provide services directly to the public.
931 (19) "Private record" means a record containing data on individuals that is private as
932 provided by Section 63G-2-302 .
933 (20) "Protected record" means a record that is classified protected as provided by
934 Section 63G-2-305 .
935 (21) "Public record" means a record that is not private, controlled, or protected and
936 that is not exempt from disclosure as provided in Subsection 63G-2-201 (3)(b).
937 (22) (a) "Record" means a book, letter, document, paper, map, plan, photograph, film,
938 card, tape, recording, electronic data, or other documentary material regardless of physical
939 form or characteristics:
940 (i) that is prepared, owned, received, or retained by a governmental entity or political
941 subdivision; and
942 (ii) where all of the information in the original is reproducible by photocopy or other
943 mechanical or electronic means.
944 (b) "Record" does not mean:
945 (i) a personal note or personal communication prepared or received by an employee or
946 officer of a governmental entity in the employee's or officer's private capacity;
947 (ii) a temporary draft or similar material prepared for the originator's personal use or
948 prepared by the originator for the personal use of an individual for whom the originator is
949 working;
950 (iii) material that is legally owned by an individual in the individual's private capacity;
951 (iv) material to which access is limited by the laws of copyright or patent unless the
952 copyright or patent is owned by a governmental entity or political subdivision;
953 (v) proprietary software;

954 (vi) junk mail or a commercial publication received by a governmental entity or an
955 official or employee of a governmental entity;
956 (vii) a book that is cataloged, indexed, or inventoried and contained in the collections
957 of a library open to the public;
958 (viii) material that is cataloged, indexed, or inventoried and contained in the
959 collections of a library open to the public, regardless of physical form or characteristics of the
960 material;
961 (ix) a daily calendar or other personal note prepared by the originator for the
962 originator's personal use or for the personal use of an individual for whom the originator is
963 working;
964 (x) a computer program that is developed or purchased by or for any governmental
965 entity for its own use;
966 (xi) a note or internal memorandum prepared as part of the deliberative process by:
967 (A) a member of the judiciary;
968 (B) an administrative law judge;
969 (C) a member of the Board of Pardons and Parole; or
970 (D) a member of any other body charged by law with performing a quasi-judicial
971 function;
972 (xii) a telephone number or similar code used to access a mobile communication
973 device that is used by an employee or officer of a governmental entity, provided that the
974 employee or officer of the governmental entity has designated at least one business telephone
975 number that is a public record as provided in Section 63G-2-301 ; [or]
976 (xiii) information provided by the Public Employees' Benefit and Insurance Program,
977 created in Section 49-20-103 , to a county to enable the county to calculate the amount to be
978 paid to a health care provider under Subsection 17-50-319 (2)(b)(ii)[.]; or
979 (xiv) information that an owner of unimproved property provides to a local entity as
980 provided in Section 11-42-205 .
981 (23) "Record series" means a group of records that may be treated as a unit for

982 purposes of designation, description, management, or disposition.
983 (24) "Records committee" means the State Records Committee created in Section
984 63G-2-501 .
985 (25) "Records officer" means the individual appointed by the chief administrative
986 officer of each governmental entity, or the political subdivision to work with state archives in
987 the care, maintenance, scheduling, designation, classification, disposal, and preservation of
988 records.
989 (26) "Schedule," "scheduling," and their derivative forms mean the process of
990 specifying the length of time each record series should be retained by a governmental entity
991 for administrative, legal, fiscal, or historical purposes and when each record series should be
992 transferred to the state archives or destroyed.
993 (27) "Sponsored research" means research, training, and other sponsored activities as
994 defined by the federal Executive Office of the President, Office of Management and Budget:
995 (a) conducted:
996 (i) by an institution within the state system of higher education defined in Section
997 53B-1-102 ; and
998 (ii) through an office responsible for sponsored projects or programs; and
999 (b) funded or otherwise supported by an external:
1000 (i) person that is not created or controlled by the institution within the state system of
1001 higher education; or
1002 (ii) federal, state, or local governmental entity.
1003 (28) "State archives" means the Division of Archives and Records Service created in
1004 Section 63A-12-101 .
1005 (29) "State archivist" means the director of the state archives.
1006 (30) "Summary data" means statistical records and compilations that contain data
1007 derived from private, controlled, or protected information but that do not disclose private,
1008 controlled, or protected information.