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S.B. 135 Enrolled

             1     

LOCAL DISTRICT TAXING AUTHORITY

             2     
2009 GENERAL SESSION

             3     
STATE OF UTAH

             4     
Chief Sponsor: Curtis S. Bramble

             5     
House Sponsor: John Dougall

             6     
             7      LONG TITLE
             8      General Description:
             9          This bill modifies provisions relating to the taxing authority of service areas.
             10      Highlighted Provisions:
             11          This bill:
             12          .    prohibits service areas that do not have elected boards, as defined, from levying and
             13      collecting a property tax, with certain exceptions; and
             14          .    provides a method for service areas to change the board of trustees so that all
             15      members are elected.
             16      Monies Appropriated in this Bill:
             17          None
             18      Other Special Clauses:
             19          None
             20      Utah Code Sections Affected:
             21      AMENDS:
             22          17B-2a-905, as enacted by Laws of Utah 2007, Chapter 329
             23      ENACTS:
             24          17B-2a-908, Utah Code Annotated 1953
             25     
             26      Be it enacted by the Legislature of the state of Utah:
             27          Section 1. Section 17B-2a-905 is amended to read:
             28           17B-2a-905. Service area board of trustees.
             29          (1) (a) Except as provided in Subsection (2):


             30          (i) the initial board of trustees of a service area located entirely within the
             31      unincorporated area of a single county may, as stated in the petition or resolution that initiated
             32      the process of creating the service area:
             33          (A) consist of the county legislative body;
             34          (B) be appointed, as provided in Section 17B-1-304 ; or
             35          (C) be elected, as provided in Section 17B-1-306 ;
             36          (ii) if the board of trustees of a service area consists of the county legislative body, the
             37      board may adopt a resolution providing for future board members to be appointed, as provided
             38      in Section 17B-1-304 , or elected, as provided in Section 17B-1-306 ; and
             39          (iii) members of the board of trustees of a service area shall be elected, as provided in
             40      Section 17B-1-306 , if:
             41          (A) the service area is not entirely within the unincorporated area of a single county;
             42          (B) a petition is filed with the board of trustees requesting that board members be
             43      elected, and the petition is signed by registered voters within the service area equal in number
             44      to at least 10% of the number of registered voters within the service area who voted at the last
             45      gubernatorial election; [or]
             46          (C) an election is held to authorize the service area's issuance of bonds[.]; or
             47          (D) (I) two-thirds of all members of the board of trustees of the service area vote in
             48      favor of changing to an elected board; and
             49          (II) the legislative body of each county and municipality that appoints a member to the
             50      board of trustees adopts a resolution approving the change to an elected board.
             51          (b) If members of the board of trustees of a service area are required to be elected
             52      under Subsection (1)(a)(iii)(C) because of a bond election:
             53          (i) board members shall be elected in conjunction with the bond election;
             54          (ii) the board of trustees shall:
             55          (A) establish a process to enable potential candidates to file a declaration of candidacy
             56      sufficiently in advance of the election; and
             57          (B) provide a ballot for the election of board members separate from the bond ballot;


             58      and
             59          (iii) except as provided in this Subsection (1)(b), the election shall be held as provided
             60      in Section 17B-1-306 .
             61          (c) A change to an elected board of trustees under Subsection (1)(a)(iii)(D) may not
             62      shorten the term of any member of the board of trustees serving at the time of the change.
             63          (2) (a) This Subsection (2) applies to a service area created on or after May 5, 2003 if:
             64          (i) the service area was created to provide fire protection, paramedic, and emergency
             65      services; and
             66          (ii) in the creation of the service area, an election was not required under Subsection
             67      17B-1-214 (3)(c).
             68          (b) (i) Each county whose unincorporated area is included within a service area
             69      described in Subsection (2)(a), whether in conjunction with the creation of the service area or
             70      by later annexation, shall appoint three members to the board of trustees.
             71          (ii) Each municipality whose area is included within a service area described in
             72      Subsection (2)(a), whether in conjunction with the creation of the service area or by later
             73      annexation, shall appoint one member to the board of trustees.
             74          (iii) Each member appointed by a county or municipality under Subsection (2)(b)(i) or
             75      (ii) shall be an elected official of the appointing county or municipality, respectively.
             76          (c) Notwithstanding Subsection 17B-1-302 (2), the number of members of a board of
             77      trustees of a service area described in Subsection (2)(a) shall be the number resulting from
             78      application of Subsection (2)(b).
             79          Section 2. Section 17B-2a-908 is enacted to read:
             80          17B-2a-908. Limit on property tax authority -- Exceptions.
             81          (1) As used in this section, "elected board" means a service area board of trustees,
             82      each of whose members:
             83          (a) is elected to the board of trustees by service area voters at an election held for that
             84      purpose; or
             85          (b) holds, at the time of appointment to the board of trustees, an elected position with:


             86          (i) a county, some or all of whose unincorporated area is included within the boundary
             87      of the service area; or
             88          (ii) a municipality that is partially or completely included within the boundary of the
             89      service area.
             90          (2) (a) Except as provided in Subsection (2)(b), a service area that does not have an
             91      elected board may not levy or collect a property tax during a tax year beginning on or after
             92      January 1, 2010.
             93          (b) A service area that does not have an elected board may levy and collect a property
             94      tax during a tax year beginning on or after January 1, 2010:
             95          (i) if and to the extent that revenue from the property tax was pledged before May 12,
             96      2009 to pay for bonds or other obligations of the service area; or
             97          (ii) if the property tax levy has previously been approved by:
             98          (A) service area voters at an election held for that purpose; or
             99          (B) the legislative body of:
             100          (I) each municipality that is partially or completely included within the boundary of
             101      the service area; and
             102          (II) the county in which the service area is located, if the county has some or all of its
             103      unincorporated area included within the boundary of the service area.


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