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S.B. 10 Enrolled

             1     

LOCAL DISTRICT AMENDMENTS

             2     
2011 GENERAL SESSION

             3     
STATE OF UTAH

             4     
Chief Sponsor: Dennis E. Stowell

             5     
House Sponsor: Don L. Ipson

             6     
             7      LONG TITLE
             8      General Description:
             9          This bill amends provisions relating to a local district created to acquire or assess
             10      groundwater rights.
             11      Highlighted Provisions:
             12          This bill:
             13          .    defines terms;
             14          .    amends a local district's power to assess a groundwater right;
             15          .    identifies a groundwater right owner for purposes of a local district created to
             16      acquire or assess a groundwater right;
             17          .    authorizes the owners of groundwater rights to petition for the creation of a local
             18      district to acquire or assess groundwater rights;
             19          .    requires that a groundwater right owner petition or request proposing to create a
             20      local district to acquire or assess groundwater rights address certain issues;
             21          .    exempts, in certain circumstances, the creation of a local district to acquire or assess
             22      groundwater rights from the election requirement;
             23          .    amends provisions governing the election or appointment of a board of trustees;
             24          .    in certain circumstances, requires that the state engineer send notice to a local
             25      district; and
             26          .    makes technical corrections.
             27      Money Appropriated in this Bill:
             28          None
             29      Other Special Clauses:


             30          None
             31      Utah Code Sections Affected:
             32      AMENDS:
             33          11-42-102, as last amended by Laws of Utah 2009, Chapters 92 and 246
             34          11-42-202, as last amended by Laws of Utah 2010, Chapter 238
             35          17B-1-103, as last amended by Laws of Utah 2010, Chapter 150
             36          17B-1-201, as renumbered and amended by Laws of Utah 2007, Chapter 329
             37          17B-1-202, as last amended by Laws of Utah 2010, Chapters 150 and 159
             38          17B-1-203, as last amended by Laws of Utah 2010, Chapter 150
             39          17B-1-204, as renumbered and amended by Laws of Utah 2007, Chapter 329
             40          17B-1-205, as last amended by Laws of Utah 2008, Chapter 360
             41          17B-1-209, as renumbered and amended by Laws of Utah 2007, Chapter 329
             42          17B-1-210, as renumbered and amended by Laws of Utah 2007, Chapter 329
             43          17B-1-211, as last amended by Laws of Utah 2010, Chapter 90
             44          17B-1-213, as last amended by Laws of Utah 2010, Chapter 150
             45          17B-1-214, as last amended by Laws of Utah 2010, Chapter 150
             46          17B-1-215, as last amended by Laws of Utah 2010, Chapter 150
             47          17B-1-302, as last amended by Laws of Utah 2008, Chapter 360
             48          17B-1-402, as last amended by Laws of Utah 2009, Chapter 92
             49          17B-1-414, as last amended by Laws of Utah 2009, Chapter 350
             50          17B-1-416, as last amended by Laws of Utah 2009, Chapters 218 and 350
             51          17B-1-502, as last amended by Laws of Utah 2009, Chapter 218
             52          17B-1-505, as last amended by Laws of Utah 2009, Chapter 218
             53          17B-1-1402, as enacted by Laws of Utah 2007, Chapter 329
             54          17B-2a-905, as last amended by Laws of Utah 2010, Chapter 159
             55          73-5-15, as last amended by Laws of Utah 2009, Chapter 388
             56      ENACTS:
             57          17B-1-104.5, Utah Code Annotated 1953


             58     
             59      Be it enacted by the Legislature of the state of Utah:
             60          Section 1. Section 11-42-102 is amended to read:
             61           11-42-102. Definitions.
             62          (1) "Adequate protests" means timely filed, written protests under Section 11-42-203
             63      that represent at least 50% of the frontage, area, taxable value, fair market value, lots, number
             64      of connections, or equivalent residential units of the property proposed to be assessed,
             65      according to the same assessment method by which the assessment is proposed to be levied,
             66      after eliminating:
             67          (a) protests relating to:
             68          (i) property that has been deleted from a proposed assessment area; or
             69          (ii) an improvement that has been deleted from the proposed improvements to be
             70      provided to property within the proposed assessment area; and
             71          (b) protests that have been withdrawn under Subsection 11-42-203 (3).
             72          (2) "Assessment area" means an area, or, if more than one area is designated, the
             73      aggregate of all areas within a local entity's jurisdictional boundaries that is designated by a
             74      local entity under Part 2, Designating an Assessment Area, for the purpose of financing the
             75      costs of improvements, operation and maintenance, or economic promotion activities that
             76      benefit property within the area.
             77          (3) "Assessment bonds" means bonds that are:
             78          (a) issued under Section 11-42-605 ; and
             79          (b) payable in part or in whole from assessments levied in an assessment area,
             80      improvement revenues, and a guaranty fund or reserve fund.
             81          (4) "Assessment fund" means a special fund that a local entity establishes under
             82      Section 11-42-412 .
             83          (5) "Assessment lien" means a lien on property within an assessment area that arises
             84      from the levy of an assessment, as provided in Section 11-42-501 .
             85          (6) "Assessment method" means the method by which an assessment is levied against


             86      property, whether by frontage, area, taxable value, fair market value, lot, number of
             87      connections, equivalent residential unit, or any combination of these methods.
             88          (7) "Assessment ordinance" means an ordinance adopted by a local entity under
             89      Section 11-42-404 that levies an assessment on benefitted property within an assessment area.
             90          (8) "Assessment resolution" means a resolution adopted by a local entity under Section
             91      11-42-404 that levies an assessment on benefitted property within an assessment area.
             92          (9) "Benefitted property" means property within an assessment area that directly or
             93      indirectly benefits from improvements, operation and maintenance, or economic promotion
             94      activities.
             95          (10) "Bond anticipation notes" means notes issued under Section 11-42-602 in
             96      anticipation of the issuance of assessment bonds.
             97          (11) "Bonds" means assessment bonds and refunding assessment bonds.
             98          (12) "Commercial area" means an area in which at least 75% of the property is devoted
             99      to the interchange of goods or commodities.
             100          (13) "Connection fee" means a fee charged by a local entity to pay for the costs of
             101      connecting property to a publicly owned sewer, storm drainage, water, gas, communications, or
             102      electrical system, whether or not improvements are installed on the property.
             103          (14) "Contract price" means:
             104          (a) the cost of acquiring an improvement, if the improvement is acquired; or
             105          (b) the amount payable to one or more contractors for the design, engineering,
             106      inspection, and construction of an improvement.
             107          (15) "Designation ordinance" means an ordinance adopted by a local entity under
             108      Section 11-42-206 designating an assessment area.
             109          (16) "Designation resolution" means a resolution adopted by a local entity under
             110      Section 11-42-206 designating an assessment area.
             111          (17) "Economic promotion activities" means activities that promote economic growth
             112      in a commercial area of a local entity, including:
             113          (a) sponsoring festivals and markets;


             114          (b) promoting business investment or activities;
             115          (c) helping to coordinate public and private actions; and
             116          (d) developing and issuing publications designed to improve the economic well-being
             117      of the commercial area.
             118          (18) "Equivalent residential unit" means a dwelling, unit, or development that is equal
             119      to a single-family residence in terms of the nature of its use or impact on an improvement to be
             120      provided in the assessment area.
             121          (19) "Governing body" means:
             122          (a) for a county, city, or town, the legislative body of the county, city, or town;
             123          (b) for a local district, the board of trustees of the local district;
             124          (c) for a special service district:
             125          (i) the legislative body of the county, city, or town that established the special service
             126      district, if no administrative control board has been appointed under Section 17D-1-301 ; or
             127          (ii) the administrative control board of the special service district, if an administrative
             128      control board has been appointed under Section 17D-1-301 ; and
             129          (d) for the military installation development authority created in Section 63H-1-201 ,
             130      the authority board, as defined in Section 63H-1-102 .
             131          (20) "Guaranty fund" means the fund established by a local entity under Section
             132      11-42-701 .
             133          (21) "Improved property" means property proposed to be assessed within an
             134      assessment area upon which a residential, commercial, or other building has been built.
             135          (22) "Improvement":
             136          (a) (i) means any publicly owned infrastructure, system, or other facility that:
             137          [(i)] (A) a local entity is authorized to provide; or
             138          [(ii)] (B) the governing body of a local entity determines is necessary or convenient to
             139      enable the local entity to provide a service that the local entity is authorized to provide; and
             140          [(b)] (ii) includes facilities in an assessment area, including a private driveway, an
             141      irrigation ditch, and a water turnout, that:


             142          [(i)] (A) can be conveniently installed at the same time as an infrastructure, system, or
             143      other facility described in Subsection (22)(a)(i); and
             144          [(ii)] (B) are requested by a property owner on whose property or for whose benefit the
             145      infrastructure, system, or other facility is being installed[.]; or
             146          (b) for a local district created to assess groundwater rights in accordance with Section
             147      17B-1-202 , means a system or plan to regulate groundwater withdrawals within a specific
             148      groundwater basin in accordance with Sections 17B-1-202 and 73-5-15 .
             149          (23) "Improvement revenues":
             150          (a) means charges, fees, impact fees, or other revenues that a local entity receives from
             151      improvements; and
             152          (b) does not include revenue from assessments.
             153          (24) "Incidental refunding costs" means any costs of issuing refunding assessment
             154      bonds and calling, retiring, or paying prior bonds, including:
             155          (a) legal and accounting fees;
             156          (b) charges of financial advisors, escrow agents, certified public accountant verification
             157      entities, and trustees;
             158          (c) underwriting discount costs, printing costs, the costs of giving notice;
             159          (d) any premium necessary in the calling or retiring of prior bonds;
             160          (e) fees to be paid to the local entity to issue the refunding assessment bonds and to
             161      refund the outstanding prior bonds;
             162          (f) any other costs that the governing body determines are necessary or desirable to
             163      incur in connection with the issuance of refunding assessment bonds; and
             164          (g) any interest on the prior bonds that is required to be paid in connection with the
             165      issuance of the refunding assessment bonds.
             166          (25) "Installment payment date" means the date on which an installment payment of an
             167      assessment is payable.
             168          (26) "Interim warrant" means a warrant issued by a local entity under Section
             169      11-42-601 .


             170          (27) "Jurisdictional boundaries" means:
             171          (a) for a county, the boundaries of the unincorporated area of the county; and
             172          (b) for each other local entity, the boundaries of the local entity.
             173          (28) "Local district" means a local district under Title 17B, Limited Purpose Local
             174      Government Entities - Local Districts.
             175          (29) "Local entity" means a county, city, town, special service district, local district,
             176      military installation development authority created in Section 63H-1-201 , or other political
             177      subdivision of the state.
             178          (30) "Local entity obligations" means assessment bonds, refunding assessment bonds,
             179      interim warrants, and bond anticipation notes issued by a local entity.
             180          (31) "Mailing address" means:
             181          (a) a property owner's last-known address using the name and address appearing on the
             182      last completed real property assessment roll of the county in which the property is located; and
             183          (b) if the property is improved property:
             184          (i) the property's street number; or
             185          (ii) the post office box, rural route number, or other mailing address of the property, if
             186      a street number has not been assigned.
             187          (32) "Net improvement revenues" means all improvement revenues that a local entity
             188      has received since the last installment payment date, less all amounts payable by the local entity
             189      from those improvement revenues for operation and maintenance costs.
             190          (33) "Operation and maintenance costs":
             191          (a) means the costs that a local entity incurs in operating and maintaining
             192      improvements in an assessment area, whether or not those improvements have been financed
             193      under this chapter; and
             194          (b) includes service charges, administrative costs, ongoing maintenance charges, and
             195      tariffs or other charges for electrical, water, gas, or other utility usage.
             196          (34) "Overhead costs" means the actual costs incurred or the estimated costs to be
             197      incurred by a local entity in connection with an assessment area for appraisals, legal fees, filing


             198      fees, financial advisory charges, underwriting fees, placement fees, escrow, trustee, and paying
             199      agent fees, publishing and mailing costs, costs of levying an assessment, recording costs, and
             200      all other incidental costs.
             201          (35) "Prior bonds" means the assessment bonds that are refunded in part or in whole by
             202      refunding assessment bonds.
             203          (36) "Prior assessment ordinance" means the ordinance levying the assessments from
             204      which the prior bonds are payable.
             205          (37) "Prior assessment resolution" means the resolution levying the assessments from
             206      which the prior bonds are payable.
             207          (38) "Project engineer" means the surveyor or engineer employed by or private
             208      consulting engineer engaged by a local entity to perform the necessary engineering services for
             209      and to supervise the construction or installation of the improvements.
             210          (39) "Property" includes real property and any interest in real property, including water
             211      rights and leasehold rights.
             212          (40) "Property price" means the price at which a local entity purchases or acquires by
             213      eminent domain property to make improvements in an assessment area.
             214          (41) "Provide" or "providing," with reference to an improvement, includes the
             215      acquisition, construction, reconstruction, renovation, maintenance, repair, operation, and
             216      expansion of an improvement.
             217          (42) "Public agency" means:
             218          (a) the state or any agency, department, or division of the state; and
             219          (b) a political subdivision of the state.
             220          (43) "Reduced payment obligation" means the full obligation of an owner of property
             221      within an assessment area to pay an assessment levied on the property after the assessment has
             222      been reduced because of the issuance of refunding assessment bonds, as provided in Section
             223      11-42-608 .
             224          (44) "Refunding assessment bonds" means assessment bonds that a local entity issues
             225      under Section 11-42-607 to refund, in part or in whole, assessment bonds.


             226          (45) "Reserve fund" means a fund established by a local entity under Section
             227      11-42-702 .
             228          (46) "Service" means:
             229          (a) water, sewer, storm drainage, garbage collection, library, recreation,
             230      communications, or electric service;
             231          (b) economic promotion activities; or
             232          (c) any other service that a local entity is required or authorized to provide.
             233          (47) "Special service district" has the same meaning as defined in Section 17D-1-102 .
             234          (48) "Unimproved property" means property upon which no residential, commercial, or
             235      other building has been built.
             236          (49) "Voluntary assessment area" means an assessment area that contains only property
             237      whose owners have voluntarily consented to an assessment.
             238          Section 2. Section 11-42-202 is amended to read:
             239           11-42-202. Requirements applicable to a notice of a proposed assessment area
             240      designation.
             241          (1) Each notice required under Subsection 11-42-201 (2)(a) shall:
             242          (a) state that the local entity proposes to:
             243          (i) designate one or more areas within the local entity's jurisdictional boundaries as an
             244      assessment area;
             245          (ii) provide an improvement to property within the proposed assessment area; and
             246          (iii) finance some or all of the cost of improvements by an assessment on benefitted
             247      property within the assessment area;
             248          (b) describe the proposed assessment area by any reasonable method that allows an
             249      owner of property in the proposed assessment area to determine that the owner's property is
             250      within the proposed assessment area;
             251          (c) describe, in a general way, the improvements to be provided to the assessment area,
             252      including:
             253          (i) the general nature of the improvements; and


             254          (ii) the general location of the improvements, by reference to streets or portions or
             255      extensions of streets or by any other means that the governing body chooses that reasonably
             256      describes the general location of the improvements;
             257          (d) state the estimated cost of the improvements as determined by a project engineer;
             258          (e) state that the local entity proposes to levy an assessment on benefitted property
             259      within the assessment area to pay some or all of the cost of the improvements according to the
             260      estimated direct and indirect benefits to the property from the improvements;
             261          (f) state the assessment method by which the governing body proposes to levy the
             262      assessment;
             263          (g) state:
             264          (i) the time within which and the location at which protests against designation of the
             265      proposed assessment area or of the proposed improvements are required to be filed; and
             266          (ii) the method by which the governing body will determine the number of protests
             267      required to defeat the designation of the proposed assessment area or acquisition or
             268      construction of the proposed improvements;
             269          (h) state the date, time, and place of the public hearing required in Section 11-42-204 ;
             270          (i) if the governing body elects to create and fund a reserve fund under Section
             271      11-42-702 , include a description of:
             272          (i) how the reserve fund will be funded and replenished; and
             273          (ii) how remaining money in the reserve fund is to be disbursed upon full payment of
             274      the bonds;
             275          (j) if the governing body intends to designate a voluntary assessment area, include a
             276      property owner consent form that:
             277          (i) estimates the total assessment to be levied against the particular parcel of property;
             278          (ii) describes any additional benefits that the governing body expects the assessed
             279      property to receive from the improvements; and
             280          (iii) designates the date and time by which the fully executed consent form is required
             281      to be submitted to the governing body;


             282          (k) if the local entity intends to levy an assessment to pay operation and maintenance
             283      costs or for economic promotion activities, include:
             284          (i) a description of the operation and maintenance costs or economic promotion
             285      activities to be paid by assessments and the initial estimated annual assessment to be levied;
             286          (ii) a description of how the estimated assessment will be determined;
             287          (iii) a description of how and when the governing body will adjust the assessment to
             288      reflect the costs of:
             289          (A) in accordance with Section 11-42-406 , current economic promotion activities; or
             290          (B) current operation and maintenance costs;
             291          (iv) a description of the method of assessment if different from the method of
             292      assessment to be used for financing any improvement; and
             293          (v) a statement of the maximum number of years over which the assessment will be
             294      levied for:
             295          (A) operation and maintenance costs; or
             296          (B) economic promotion activities; and
             297          (l) if the governing body intends to divide the proposed assessment area into zones
             298      under Subsection 11-42-201 (1)(b), include a description of the proposed zones.
             299          (2) A notice required under Subsection 11-42-201 (2)(a) may contain other information
             300      that the governing body considers to be appropriate, including:
             301          (a) the amount or proportion of the cost of the improvement to be paid by the local
             302      entity or from sources other than an assessment;
             303          (b) the estimated amount of each type of assessment for the various improvements to
             304      be financed according to the method of assessment that the governing body chooses; and
             305          (c) provisions for any improvements described in Subsection 11-42-102 (22)[(b)](a)(ii).
             306          (3) Each notice required under Subsection 11-42-201 (2)(a) shall:
             307          (a) (i) (A) be published in a newspaper of general circulation within the local entity's
             308      jurisdictional boundaries, once a week for four consecutive weeks, with the last publication at
             309      least five but not more than 20 days before the deadline for filing protests specified in the


             310      notice under Subsection (1)(g); or
             311          (B) if there is no newspaper of general circulation within the local entity's jurisdictional
             312      boundaries, be posted in at least three public places within the local entity's jurisdictional
             313      boundaries at least 20 but not more than 35 days before the deadline for filing protests
             314      specified in the notice under Subsection (1)(g); and
             315          (ii) be published on the Utah Public Notice Website described in Section 63F-1-701 for
             316      four weeks before the deadline for filing protests specified in the notice under Subsection
             317      (1)(g); and
             318          (b) be mailed, postage prepaid, within 10 days after the first publication or posting of
             319      the notice under Subsection (3)(a) to each owner of property to be assessed within the proposed
             320      assessment area at the property owner's mailing address.
             321          Section 3. Section 17B-1-103 is amended to read:
             322           17B-1-103. Local district status and powers.
             323          (1) A local district:
             324          (a) is:
             325          (i) a body corporate and politic with perpetual succession;
             326          (ii) a quasi-municipal corporation; and
             327          (iii) a political subdivision of the state; and
             328          (b) may sue and be sued.
             329          (2) A local district may:
             330          (a) acquire, by any lawful means, or lease any real property, personal property, or a
             331      groundwater right necessary or convenient to the full exercise of the district's powers;
             332          (b) acquire, by any lawful means, any interest in real property, personal property, or a
             333      groundwater right necessary or convenient to the full exercise of the district's powers;
             334          (c) transfer an interest in or dispose of any property or interest described in Subsections
             335      (2)(a) and (b);
             336          (d) acquire or construct works, facilities, and improvements necessary or convenient to
             337      the full exercise of the district's powers, and operate, control, maintain, and use those works,


             338      facilities, and improvements;
             339          (e) borrow money and incur indebtedness for any lawful district purpose;
             340          (f) issue bonds, including refunding bonds:
             341          (i) for any lawful district purpose; and
             342          (ii) as provided in and subject to Part 11, Local District Bonds;
             343          (g) levy and collect property taxes:
             344          (i) for any lawful district purpose or expenditure, including to cover a deficit resulting
             345      from tax delinquencies in a preceding year; and
             346          (ii) as provided in and subject to Part 10, Local District Property Tax Levy;
             347          (h) as provided in Title 78B, Chapter 6, Part 5, Eminent Domain, acquire by eminent
             348      domain property necessary to the exercise of the district's powers;
             349          (i) invest money as provided in Title 51, Chapter 7, State Money Management Act;
             350          (j) (i) impose fees or other charges for commodities, services, or facilities provided by
             351      the district, to pay some or all of the district's costs of providing the commodities, services, and
             352      facilities, including the costs of:
             353          (A) maintaining and operating the district;
             354          (B) acquiring, purchasing, constructing, improving, or enlarging district facilities;
             355          (C) issuing bonds and paying debt service on district bonds; and
             356          (D) providing a reserve established by the board of trustees; and
             357          (ii) take action the board of trustees considers appropriate and adopt regulations to
             358      assure the collection of all fees and charges that the district imposes;
             359          (k) if applicable, charge and collect a fee to pay for the cost of connecting a customer's
             360      property to district facilities in order for the district to provide service to the property;
             361          (l) enter into a contract that the local district board of trustees considers necessary,
             362      convenient, or desirable to carry out the district's purposes, including a contract:
             363          (i) with the United States or any department or agency of the United States;
             364          (ii) to indemnify and save harmless; or
             365          (iii) to do any act to exercise district powers;


             366          (m) purchase supplies, equipment, and materials;
             367          (n) encumber district property upon terms and conditions that the board of trustees
             368      considers appropriate;
             369          (o) exercise other powers and perform other functions that are provided by law;
             370          (p) construct and maintain works and establish and maintain facilities, including works
             371      or facilities:
             372          (i) across or along any public street or highway, subject to Subsection (3) and if the
             373      district:
             374          (A) promptly restores the street or highway, as much as practicable, to its former state
             375      of usefulness; and
             376          (B) does not use the street or highway in a manner that completely or unnecessarily
             377      impairs the usefulness of it;
             378          (ii) in, upon, or over any vacant public lands that are or become the property of the
             379      state, including school and institutional trust lands, as defined in Section 53C-1-103 , if the
             380      director of the School and Institutional Trust Lands Administration, acting under Sections
             381      53C-1-102 and 53C-1-303 , consents; or
             382          (iii) across any stream of water or watercourse, subject to Section 73-3-29 ;
             383          (q) perform any act or exercise any power reasonably necessary for the efficient
             384      operation of the local district in carrying out its purposes;
             385          (r) (i) except for a local district described in Subsection (2)(r)(ii), designate an
             386      assessment area and levy an assessment on land within the assessment area, as provided in
             387      Title 11, Chapter 42, Assessment Area Act; or
             388          (ii) for a local district created to assess a groundwater right in a critical management
             389      area described in Subsection 17B-1-202 (1)[(c)], designate an assessment area and levy an
             390      assessment, as provided in Title 11, Chapter 42, Assessment Area Act, on a groundwater right
             391      to facilitate a groundwater management plan;
             392          (s) contract with another political subdivision of the state to allow the other political
             393      subdivision to use the district's surplus water or capacity or have an ownership interest in the


             394      district's works or facilities, upon the terms and for the consideration, whether monetary or
             395      nonmonetary consideration or no consideration, that the district's board of trustees considers to
             396      be in the best interests of the district and the public; and
             397          (t) upon the terms and for the consideration, whether monetary or nonmonetary
             398      consideration or no consideration, that the district's board of trustees considers to be in the best
             399      interests of the district and the public, agree:
             400          (i) with:
             401          (A) another political subdivision of the state; or
             402          (B) a public or private owner of property:
             403          (I) on which the district has a right-of-way; or
             404          (II) adjacent to which the district owns fee title to property; and
             405          (ii) to allow the use of property:
             406          (A) owned by the district; or
             407          (B) on which the district has a right-of-way.
             408          (3) With respect to a local district's use of a street or highway, as provided in
             409      Subsection (2)(p)(i):
             410          (a) the district shall comply with the reasonable rules and regulations of the
             411      governmental entity, whether state, county, or municipal, with jurisdiction over the street or
             412      highway, concerning:
             413          (i) an excavation and the refilling of an excavation;
             414          (ii) the relaying of pavement; and
             415          (iii) the protection of the public during a construction period; and
             416          (b) the governmental entity, whether state, county, or municipal, with jurisdiction over
             417      the street or highway:
             418          (i) may not require the district to pay a license or permit fee or file a bond; and
             419          (ii) may require the district to pay a reasonable inspection fee.
             420          (4) (a) A local district may:
             421          (i) acquire, lease, or construct and operate electrical generation, transmission, and


             422      distribution facilities, if:
             423          (A) the purpose of the facilities is to harness energy that results inherently from the
             424      district's:
             425          (I) operation of a project or facilities that the district is authorized to operate; or
             426          (II) providing a service that the district is authorized to provide;
             427          (B) the generation of electricity from the facilities is incidental to the primary
             428      operations of the district; and
             429          (C) operation of the facilities will not hinder or interfere with the primary operations of
             430      the district;
             431          (ii) (A) use electricity generated by the facilities; or
             432          (B) subject to Subsection (4)(b), sell electricity generated by the facilities to an electric
             433      utility or municipality with an existing system for distributing electricity.
             434          (b) A district may not act as a retail distributor or seller of electricity.
             435          (c) Revenue that a district receives from the sale of electricity from electrical
             436      generation facilities it owns or operates under this section may be used for any lawful district
             437      purpose, including the payment of bonds issued to pay some or all of the cost of acquiring or
             438      constructing the facilities.
             439          (5) A local district may adopt and, after adoption, alter a corporate seal.
             440          Section 4. Section 17B-1-104.5 is enacted to read:
             441          17B-1-104.5. Groundwater right owner provisions -- Vote.
             442          (1) For purposes of this title, an owner of a groundwater right, is on the date of the
             443      filing of a groundwater right owner petition or groundwater right owner request, the owner
             444      according to:
             445          (a) a deed recorded with the county recorder in accordance with Section 73-1-10 ; or
             446          (b) a water right of record filed in the state engineer's office in accordance with Section
             447      73-1-10 .
             448          (2) For purposes of each provision of this title that requires the owners of groundwater
             449      rights covering a percentage of the total groundwater rights within the proposed local district to


             450      sign a request, petition, or protest:
             451          (a) a groundwater right may not be included in the calculation of the required
             452      percentage unless the request or petition is signed by:
             453          (i) except as provided in Subsection (2)(a)(ii), owners representing a majority
             454      ownership interest in that groundwater right; or
             455          (ii) if the groundwater right is owned by joint tenants or tenants by the entirety, 50% of
             456      the number of owners of that groundwater right;
             457          (b) the signature of a person signing a request or petition in a representative capacity on
             458      behalf of an owner is invalid unless:
             459          (i) the person's representative capacity and the name of the owner the person represents
             460      are indicated on the request or petition with the person's signature; and
             461          (ii) the person provides documentation accompanying the request or petition that
             462      reasonably substantiates the person's representative capacity; and
             463          (c) subject to Subsection (2)(b), a duly appointed personal representative may sign a
             464      request or petition on behalf of the estate of a deceased owner.
             465          (3) For an election by groundwater right owners described in this title, each owner of a
             466      groundwater right is entitled to cast one vote.
             467          Section 5. Section 17B-1-201 is amended to read:
             468           17B-1-201. Definitions.
             469          As used in this part:
             470          (1) "Applicable area" means:
             471          (a) for a county, the unincorporated area of the county that is included within the
             472      proposed local district; or
             473          (b) for a municipality, the area of the municipality that is included within the proposed
             474      local district.
             475          (2) "Governing body" means:
             476          (a) for a county or municipality, the legislative body of the county or municipality; and
             477          (b) for a local district, the board of trustees of the local district.


             478          (3) "Groundwater right owner petition" means a petition under Subsection
             479      17B-1-203 (1)(c).
             480          (4) "Groundwater right owner request" means a request under Section 17B-1-204 that
             481      is signed by owners of water rights as provided in Subsection 17B-1-204 (2)(b)(ii).
             482          [(3)] (5) "Initiating local district" means a local district that adopts a resolution
             483      proposing the creation of a local district under Subsection 17B-1-203 (1)[(d)](e).
             484          [(4)] (6) "Petition" means a petition under Subsection 17B-1-203 (1)(a) [or (b)], (b), or
             485      (c).
             486          [(5)] (7) "Property owner petition" means a petition under Subsection 17B-1-203 (1)(a).
             487          [(6)] (8) "Property owner request" means a request under Section 17B-1-204 that is
             488      signed by owners of real property as provided in Subsection 17B-1-204 (2)(b)(i).
             489          [(7)] (9) "Registered voter request" means a request under Section 17B-1-204 that is
             490      signed by registered voters as provided in Subsection 17B-1-204 (2)(b)[(ii)](iii).
             491          [(8)] (10) "Registered voter petition" means a petition under Subsection
             492      17B-1-203 (1)(b).
             493          [(9)] (11) "Request" means a request as described in Section 17B-1-204 .
             494          [(10)] (12) "Responsible body" means the governing body of:
             495          (a) the municipality in which the proposed local district is located, if the petition or
             496      resolution proposes the creation of a local district located entirely within a single municipality;
             497          (b) the county in which the proposed local district is located, if the petition or
             498      resolution proposes the creation of a local district located entirely within a single county and all
             499      or part of the proposed local district is located within:
             500          (i) the unincorporated part of the county; or
             501          (ii) more than one municipality within the county;
             502          (c) if the petition or resolution proposes the creation of a local district located within
             503      more than one county, the county whose boundaries include more of the area of the proposed
             504      local district than is included within the boundaries of any other county; or
             505          (d) the initiating local district, if a resolution proposing the creation of a local district is


             506      adopted under Subsection 17B-1-203 (1)[(d)](e).
             507          [(11)] (13) "Responsible clerk" means the clerk of the county or the clerk or recorder of
             508      the municipality whose legislative body is the responsible body.
             509          Section 6. Section 17B-1-202 is amended to read:
             510           17B-1-202. Local district may be created -- Services that may be provided --
             511      Limitations.
             512          (1) (a) A local district may be created as provided in this part to provide within its
             513      boundaries service consisting of:
             514          (i) the operation of an airport;
             515          (ii) the operation of a cemetery;
             516          (iii) fire protection, paramedic, and emergency services;
             517          (iv) garbage collection and disposal;
             518          (v) health care, including health department or hospital service;
             519          (vi) the operation of a library;
             520          (vii) abatement or control of mosquitos and other insects;
             521          (viii) the operation of parks or recreation facilities or services;
             522          (ix) the operation of a sewage system;
             523          (x) street lighting;
             524          (xi) the construction and maintenance of a right-of-way, including:
             525          (A) a curb;
             526          (B) a gutter;
             527          (C) a sidewalk;
             528          (D) a street;
             529          (E) a road;
             530          (F) a water line;
             531          (G) a sewage line;
             532          (H) a storm drain;
             533          (I) an electricity line;


             534          (J) a communications line; or
             535          (K) a natural gas line;
             536          (xii) transportation, including public transit and providing streets and roads;
             537          (xiii) the operation of a system, or one or more components of a system, for the
             538      collection, storage, retention, control, conservation, treatment, supplying, distribution, or
             539      reclamation of water, including storm, flood, sewage, irrigation, and culinary water, whether
             540      the system is operated on a wholesale or retail level or both;
             541          (xiv) in accordance with Subsection (1)(c), the acquisition or assessment of a
             542      groundwater right for the development and execution of a groundwater management plan in
             543      cooperation with and approved by the state engineer in accordance with Section 73-5-15 ;
             544          (xv) law enforcement service; or
             545          (xvi) subject to Subsection (1)(b), the underground installation of an electric utility line
             546      or the conversion to underground of an existing electric utility line.
             547          (b) Each local district that provides the service of the underground installation of an
             548      electric utility line or the conversion to underground of an existing electric utility line shall, in
             549      installing or converting the line, provide advance notice to and coordinate with the utility that
             550      owns the line.
             551          (c) A groundwater management plan described in Subsection (1)(a)(xiv) may include
             552      the banking of groundwater rights by a local district in a critical management area as defined in
             553      Section 73-5-15 following the adoption of a groundwater management plan by the state
             554      engineer under Section 73-5-15 .
             555          (i) A local district may manage the groundwater rights it acquires under Subsection
             556      17B-1-103 (2)(a) or (b) consistent with the provisions of a groundwater management plan
             557      described in Subsection (1)(c).
             558          (ii) A groundwater right held by a local district to satisfy the provisions of a
             559      groundwater management plan is not subject to the forfeiture provisions of Section 73-1-4 .
             560          (iii) (A) A local district may divest itself of a groundwater right subject to a
             561      determination that the groundwater right is not required to facilitate the groundwater


             562      management plan described in Subsection (1)(c).
             563          (B) The groundwater right described in Subsection (1)(c)(iii)(A) is subject to Section
             564      73-1-4 beginning on the date of divestiture.
             565          (iv) Upon a determination by the state engineer that an area is no longer a critical
             566      management area[, a water] as defined in Section 73-5-15 , a groundwater right held by the
             567      local district is subject to Section 73-1-4 .
             568          (2) For purposes of this section:
             569          (a) "Operation" means all activities involved in providing the indicated service
             570      including acquisition and ownership of property reasonably necessary to provide the indicated
             571      service and acquisition, construction, and maintenance of facilities and equipment reasonably
             572      necessary to provide the indicated service.
             573          (b) "System" means the aggregate of interrelated components that combine together to
             574      provide the indicated service including, for a sewage system, collection and treatment.
             575          (3) (a) A local district may not be created to provide and may not after its creation
             576      provide more than four of the services listed in Subsection (1).
             577          (b) Subsection (3)(a) may not be construed to prohibit a local district from providing
             578      more than four services if, before April 30, 2007, the local district was authorized to provide
             579      those services.
             580          (4) (a) Except as provided in Subsection (4)(b), a local district may not be created to
             581      provide and may not after its creation provide to an area the same service already being
             582      provided to that area by another political subdivision, unless the other political subdivision
             583      gives its written consent.
             584          (b) For purposes of Subsection (4)(a), a local district does not provide the same service
             585      as another political subdivision if it operates a component of a system that is different from a
             586      component operated by another political subdivision but within the same:
             587          (i) sewage system; or
             588          (ii) water system.
             589          (5) (a) Except for a local district in the creation of which an election is not required


             590      under Subsection 17B-1-214 (3)[(c)](d), the area of a local district may include all or part of the
             591      unincorporated area of one or more counties and all or part of one or more municipalities.
             592          (b) The area of a local district need not be contiguous.
             593          (6) For a local district created before May 5, 2008, the authority to provide fire
             594      protection service also includes the authority to provide:
             595          (a) paramedic service; and
             596          (b) emergency service, including hazardous materials response service.
             597          (7) A local district created before May 11, 2010, authorized to provide the construction
             598      and maintenance of curb, gutter, or sidewalk may provide a service described in Subsection
             599      (1)(a)(xi) on or after May 11, 2010.
             600          Section 7. Section 17B-1-203 is amended to read:
             601           17B-1-203. Process to initiate the creation of a local district -- Petition or
             602      resolution.
             603          (1) The process to create a local district may be initiated by:
             604          (a) unless the proposed local district is a local district to acquire or assess a
             605      groundwater right under Section 17B-1-202 , and subject to Section 17B-1-204 , a petition
             606      signed by the owners of private real property that:
             607          (i) is located within the proposed local district;
             608          (ii) covers at least 33% of the total private land area within the proposed local district
             609      as a whole and within each applicable area;
             610          (iii) is equal in value to at least 25% of the value of all private real property within the
             611      proposed local district as a whole and within each applicable area; and
             612          (iv) complies with the requirements of Subsection 17B-1-205 (1) and Section
             613      17B-1-208 ;
             614          (b) subject to Section 17B-1-204 , a petition that:
             615          (i) is signed by registered voters residing within the proposed local district as a whole
             616      and within each applicable area, equal in number to at least 33% of the number of votes cast in
             617      the proposed local district as a whole and in each applicable area, respectively, for the office of


             618      governor at the last regular general election prior to the filing of the petition; and
             619          (ii) complies with the requirements of Subsection 17B-1-205 (1) and Section
             620      17B-1-208 ;
             621          (c) if the proposed local district is a local district to acquire or assess a groundwater
             622      right under Section 17B-1-202 , and subject to Section 17B-1-204 , a petition signed by the
             623      owners of groundwater rights that:
             624          (i) are diverted within the proposed local district;
             625          (ii) cover at least 33% of the total amount of groundwater diverted in accordance with
             626      groundwater rights within the proposed local district as a whole and within each applicable
             627      area; and
             628          (iii) comply with the requirements of Subsection 17B-1-205 (1) and Section 17B-1-208 ;
             629          [(c)] (d) a resolution proposing the creation of a local district, adopted by the
             630      legislative body of each county whose unincorporated area includes and each municipality
             631      whose boundaries include any of the proposed local district; or
             632          [(d)] (e) a resolution proposing the creation of a local district, adopted by the board of
             633      trustees of an existing local district whose boundaries completely encompass the proposed
             634      local district, if:
             635          (i) the proposed local district is being created to provide one or more components of
             636      the same service that the initiating local district is authorized to provide; and
             637          (ii) the initiating local district is not providing to the area of the proposed local district
             638      any of the components that the proposed local district is being created to provide.
             639          (2) (a) Each resolution under Subsection (1)[(c) or] (d) or (e) shall:
             640          (i) describe the area proposed to be included in the proposed local district;
             641          (ii) be accompanied by a map that shows the boundaries of the proposed local district;
             642          (iii) describe the service proposed to be provided by the proposed local district;
             643          (iv) if the resolution proposes the creation of a specialized local district, specify the
             644      type of specialized local district proposed to be created;
             645          (v) explain the anticipated method of paying the costs of providing the proposed


             646      service;
             647          (vi) state the estimated average financial impact on a household within the proposed
             648      local district;
             649          (vii) state the number of members that the board of trustees of the proposed local
             650      district will have, consistent with the requirements of Subsection 17B-1-302 (2);
             651          (viii) for a proposed basic local district:
             652          (A) state whether the members of the board of trustees will be elected or appointed or
             653      whether some members will be elected and some appointed, as provided in Section
             654      17B-1-1402 ;
             655          (B) if one or more members will be elected, state the basis upon which each elected
             656      member will be elected; and
             657          (C) if applicable, explain how the election or appointment of board members will
             658      transition from one method to another based on stated milestones or events, as provided in
             659      Section 17B-1-1402 ;
             660          (ix) for a proposed improvement district whose remaining area members or county
             661      members, as those terms are defined in Section 17B-2a-404 , are to be elected, state that those
             662      members will be elected; and
             663          (x) for a proposed service area that is entirely within the unincorporated area of a single
             664      county, state whether the initial board of trustees will be:
             665          (A) the county legislative body;
             666          (B) appointed as provided in Section 17B-1-304 ; or
             667          (C) elected as provided in Section 17B-1-306 .
             668          (b) Each county or municipal legislative body adopting a resolution under Subsection
             669      (1)[(c)](d) shall, on or before the first public hearing under Section 17B-1-210 , mail or deliver
             670      a copy of the resolution to the responsible body if the county or municipal legislative body's
             671      resolution is one of multiple resolutions adopted by multiple county or municipal legislative
             672      bodies proposing the creation of the same local district.
             673          [(3) Each petition under Subsection (1)(a) or (b) to create a local district to acquire a


             674      groundwater right under Subsection 17B-1-103 (2)(a) or (b) shall explain the anticipated
             675      method of paying for the groundwater right acquisition.]
             676          Section 8. Section 17B-1-204 is amended to read:
             677           17B-1-204. Request for service required before filing of petition -- Request
             678      requirements.
             679          (1) A petition may not be filed until after:
             680          (a) a request has been filed with:
             681          (i) the clerk of each county in whose unincorporated area any part of the proposed local
             682      district is located; and
             683          (ii) the clerk or recorder of each municipality in which any part of the proposed local
             684      district is located; and
             685          (b) each county and municipality with which a request under Subsection (1)(a) is filed:
             686          (i) has adopted a resolution under Subsection 17B-1-212 (1) indicating whether it will
             687      provide the requested service; or
             688          (ii) is considered to have declined to provide the requested service under Subsection
             689      17B-1-212 (2) or (3).
             690          (2) Each request under Subsection (1)(a) shall:
             691          (a) ask the county or municipality to provide the service proposed to be provided by the
             692      proposed local district within the applicable area; and
             693          (b) be signed by:
             694          (i) unless the request is a request to create a local district to acquire or assess a
             695      groundwater right under Section 17B-1-202 , the owners of private real property that:
             696          (A) is located within the proposed local district;
             697          (B) covers at least 10% of the total private land area within the applicable area; and
             698          (C) is equal in value to at least 7% of the value of all private real property within the
             699      applicable area; [or]
             700          (ii) if the request is a request to create a local district to acquire or assess a groundwater
             701      right under Section 17B-1-202 , the owners of groundwater rights that:


             702          (A) are diverted within the proposed local district; and
             703          (B) cover at least 10% of the amount of groundwater diverted in accordance with
             704      groundwater rights within the applicable area; or
             705          [(ii)] (iii) registered voters residing within the applicable area equal in number to at
             706      least 10% of the number of votes cast in the applicable area for the office of governor at the last
             707      general election prior to the filing of the request.
             708          (3) For purposes of Subsections (1) and (2), an area proposed to be annexed to a
             709      municipality in a petition under Section 10-2-403 filed before and still pending at the time of
             710      filing of a petition shall be considered to be part of that municipality.
             711          Section 9. Section 17B-1-205 is amended to read:
             712           17B-1-205. Petition and request requirements -- Withdrawal of signature.
             713          (1) Each petition and request shall:
             714          (a) indicate the typed or printed name and current residence address of each property
             715      owner, groundwater right owner, or registered voter signing the petition;
             716          (b) (i) if it is a property owner request or petition, indicate the address of the property
             717      as to which the owner is signing the request or petition; or
             718          (ii) if it is a groundwater right owner request or petition, indicate the location of the
             719      diversion of the groundwater as to which the owner is signing the groundwater right owner
             720      request or petition;
             721          (c) describe the entire area of the proposed local district;
             722          (d) be accompanied by a map showing the boundaries of the entire proposed local
             723      district;
             724          (e) specify the service proposed to be provided by the proposed local district;
             725          (f) if the petition or request proposes the creation of a specialized local district, specify
             726      the type of specialized local district proposed to be created;
             727          (g) for a proposed basic local district:
             728          (i) state whether the members of the board of trustees will be elected or appointed or
             729      whether some members will be elected and some appointed, as provided in Section


             730      17B-1-1402 ;
             731          (ii) if one or more members will be elected, state the basis upon which each elected
             732      member will be elected; and
             733          (iii) if applicable, explain how the election or appointment of board members will
             734      transition from one method to another based on stated milestones or events, as provided in
             735      Section 17B-1-1402 ;
             736          (h) for a proposed improvement district whose remaining area members or county
             737      members, as those terms are defined in Section 17B-2a-404 , are to be elected, state that those
             738      members will be elected; and
             739          (i) for a proposed service area that is entirely within the unincorporated area of a single
             740      county, state whether the initial board of trustees will be:
             741          (i) the county legislative body;
             742          (ii) appointed as provided in Section 17B-1-304 ; or
             743          (iii) elected as provided in Section 17B-1-306 ; [and]
             744          (j) designate up to five signers of the petition or request as sponsors, one of whom shall
             745      be designated as the contact sponsor, with the mailing address and telephone number of
             746      each[.];
             747          (k) if the petition or request is a groundwater right owner petition or request proposing
             748      the creation of a local district to acquire a groundwater right under Section 17B-1-202 , explain
             749      the anticipated method:
             750          (i) of paying for the groundwater right acquisition; and
             751          (ii) of addressing blowing dust created by the reduced use of water; and
             752          (l) if the petition or request is a groundwater right owner petition or request proposing
             753      the creation of a local district to assess a groundwater right under Section 17B-1-202 , explain
             754      the anticipated method:
             755          (i) of assessing the groundwater right and securing payment of the assessment; and
             756          (ii) of addressing blowing dust created by the reduced use of water.
             757          (2) A signer of a request or petition may withdraw or, once withdrawn, reinstate the


             758      signer's signature at any time before the filing of the request or petition by filing a written
             759      withdrawal or reinstatement with:
             760          (a) in the case of a request:
             761          (i) the clerk of the county or the clerk or recorder of the municipality in whose
             762      applicable area the signer's property is located, if the request is a property owner request; [or]
             763          (ii) the clerk of the county or the clerk or recorder of the municipality in whose
             764      applicable area the signer's groundwater diversion point is located, if the request is a
             765      groundwater right owner request; or
             766          [(ii)] (iii) the clerk of the county or the clerk or recorder of the municipality in whose
             767      applicable area the signer resides, if the request is a registered voter request; or
             768          (b) in the case of a petition, the responsible clerk.
             769          Section 10. Section 17B-1-209 is amended to read:
             770           17B-1-209. Petition certification -- Amended petition.
             771          (1) [Within] No later than five days after the [filing of a petition] day on which a
             772      petition is filed, the responsible clerk shall mail a copy of the petition to the clerk of each other
             773      county and the clerk or recorder of each municipality in which any part of the proposed local
             774      district is located.
             775          (2) (a) [Within] No later than 35 days after the [filing of a petition] day on which a
             776      petition is filed, the clerk of each county whose unincorporated area includes and the clerk or
             777      recorder of each municipality whose boundaries include part of the proposed local district
             778      shall:
             779          (i) with the assistance of other county or municipal officers from whom the county
             780      clerk or municipal clerk or recorder requests assistance, determine, for the clerk or recorder's
             781      respective county or municipality, whether the petition complies with the requirements of
             782      Subsection 17B-1-203 (1)(a) [or], (b), or (c), as the case may be, and Subsections 17B-1-208 (2),
             783      (3), and (4); and
             784          (ii) notify the responsible clerk in writing of the clerk or recorder's determination under
             785      Subsection (2)(a)(i).


             786          (b) The responsible clerk may rely on the determinations of other county clerks or
             787      municipal clerks or recorders under Subsection (2)(a) in making the responsible clerk's
             788      determinations and certification or rejection under Subsection (3).
             789          (3) (a) Within 45 days after the filing of a petition, the responsible clerk shall:
             790          (i) determine whether the petition complies with Subsection 17B-1-203 (1)(a) [or], (b),
             791      or (c), as the case may be, Subsection 17B-1-205 (1), and Section 17B-1-208 ; and
             792          (ii) (A) if the responsible clerk determines that the petition complies with the
             793      applicable requirements:
             794          (I) (Aa) certify the petition and deliver the certified petition to the responsible body;
             795      and
             796          (Bb) mail or deliver written notification of the certification to the contact sponsor; or
             797          (II) for each petition described in Subsection (3)(b)(i), deliver a copy of the petition to
             798      the legislative body of each county whose unincorporated area includes and each municipality
             799      whose boundaries include any of the proposed basic local district, with a notice indicating that
             800      the clerk has determined that the petition complies with applicable requirements; or
             801          (B) if the responsible clerk determines that the petition fails to comply with any of the
             802      applicable requirements, reject the petition and notify the contact sponsor in writing of the
             803      rejection and the reasons for the rejection.
             804          (b) (i) A petition for which an election is not required under Subsection 17B-1-214 (3)
             805      and that proposes the creation of a basic local district that has within its boundaries fewer than
             806      one residential dwelling unit per 10 acres of land may not be certified without the approval, by
             807      resolution, of the legislative body of each county whose unincorporated area includes and each
             808      municipality whose boundaries include any of the proposed local district.
             809          (ii) Before adopting a resolution giving its approval under Subsection (3)(b)(i), a
             810      county or municipal legislative body may hold one or more public hearings on the petition.
             811          (iii) If a petition described in Subsection (3)(b)(i) is approved as provided in that
             812      subsection, the responsible clerk shall, within 10 days after its approval:
             813          (A) certify the petition and deliver the certified petition to the responsible body; and


             814          (B) mail or deliver written notification of the certification to the contact sponsor.
             815          (4) Except for a petition described in Subsection (3)(b)(i), if the responsible clerk fails
             816      to certify or reject a petition within 45 days after its filing, the petition shall be considered to be
             817      certified.
             818          (5) The responsible clerk shall certify or reject petitions in the order in which they are
             819      filed.
             820          (6) (a) If the responsible clerk rejects a petition under Subsection (3)(a)(ii)(B), the
             821      petition may be amended to correct the deficiencies for which it was rejected and then refiled.
             822          (b) A valid signature on a petition that was rejected under Subsection (3)(a)(ii)(B) may
             823      be used toward fulfilling the applicable signature requirement of the petition as amended under
             824      Subsection (6)(a).
             825          (c) If a petition is amended and refiled under Subsection (6)(a) after having been
             826      rejected by the responsible clerk under Subsection (3)(a)(ii)(B), the amended petition shall be
             827      considered as newly filed, and its processing priority shall be determined by the date on which
             828      it is refiled.
             829          (7) The responsible clerk and each county clerk and municipal clerk or recorder shall
             830      act in good faith in making the determinations under this section.
             831          Section 11. Section 17B-1-210 is amended to read:
             832           17B-1-210. Public hearing.
             833          (1) The legislative body of each county and municipality with which a request is filed
             834      or that adopts a resolution under Subsection 17B-1-203 (1)[(c)](d) and the board of trustees of
             835      each local district that adopts a resolution under Subsection 17B-1-203 (1)[(d)](e) shall hold a
             836      public hearing or a set of public hearings, sufficient in number and location to ensure that no
             837      substantial group of residents of the proposed local district need travel an unreasonable
             838      distance to attend a public hearing.
             839          (2) Each public hearing under Subsection (1) shall be held:
             840          (a) no later than 45 days after:
             841          (i) for a public hearing on a request, certification of a request under Subsection


             842      17B-1-206 (1)(b)(i); or
             843          (ii) for a public hearing on a resolution, adoption of a resolution under Subsection
             844      17B-1-203 (1)[(c) or] (d) or (e);
             845          (b) within the proposed local district;
             846          (c) except as provided in Subsections (6) and (7), within the applicable area; and
             847          (d) for the purpose of:
             848          (i) for a public hearing on a request, allowing public input on:
             849          (A) whether the requested service is needed in the area of the proposed local district;
             850          (B) whether the service should be provided by the county or municipality or the
             851      proposed local district; and
             852          (C) all other matters relating to the request or the proposed local district; or
             853          (ii) for a public hearing on a resolution, allowing the public to ask questions of and
             854      obtain further information from the governing body holding the hearing regarding the issues
             855      contained in or raised by the resolution.
             856          (3) A quorum of each governing body holding a public hearing under this section shall
             857      be present throughout each hearing held by that governing body.
             858          (4) Each hearing under this section shall be held on a weekday evening other than a
             859      holiday beginning no earlier than 6 p.m.
             860          (5) At the beginning and end of each hearing concerning a resolution, the governing
             861      body shall announce the deadline for filing protests and generally explain the protest procedure
             862      and requirements.
             863          (6) Two or more county or municipal legislative bodies may jointly hold a hearing or
             864      set of hearings required under this section if all the requirements of this section, other than the
             865      requirements of Subsection (2)(c), are met as to each hearing.
             866          (7) Notwithstanding Subsection (2)(c), a governing body may hold a public hearing or
             867      set of public hearings outside the applicable area if:
             868          (a) there is no reasonable place to hold a public hearing within the applicable area; and
             869          (b) the public hearing or set of public hearings is held as close to the applicable area as


             870      reasonably possible.
             871          Section 12. Section 17B-1-211 is amended to read:
             872           17B-1-211. Notice of public hearings -- Publication of resolution.
             873          (1) Before holding a public hearing or set of public hearings under Section 17B-1-210 ,
             874      the legislative body of each county or municipality with which a request is filed or that adopts a
             875      resolution under Subsection 17B-1-203 (1)[(c)](d) and the board of trustees of each local
             876      district that adopts a resolution under Subsection 17B-1-203 (1)[(d)](e) shall:
             877          (a) (i) (A) except as provided in Subsections (1)(a)(i)(B) and (1)(a)(ii), publish notice
             878      in a newspaper or combination of newspapers of general circulation within the applicable area
             879      in accordance with Subsection (2); or
             880          (B) if there is no newspaper or combination of newspapers of general circulation
             881      within the applicable area, post notice in accordance with Subsection (2):
             882          (I) at least one notice per 1,000 population of that area; and
             883          (II) at places within the area that are most likely to provide actual notice to residents of
             884      the area; and
             885          (ii) publish notice on the Utah Public Notice Website created in Section 63F-1-701 , for
             886      two weeks before the hearing or the first of the set of hearings; or
             887          (b) mail a notice to each registered voter residing within and each owner of real
             888      property located within the proposed local district.
             889          (2) Each published notice under Subsection (1)(a)(i)(A) shall:
             890          (a) be no less than 1/4 page in size, use type no smaller than 18 point, and be
             891      surrounded by a 1/4-inch border;
             892          (b) if possible, appear in a newspaper that is published at least one day per week;
             893          (c) if possible, appear in a newspaper of general interest and readership in the area and
             894      not of limited subject matter;
             895          (d) be placed in a portion of the newspaper other than where legal notices and
             896      classified advertisements appear; and
             897          (e) be run at least once each week for two successive weeks, with the final publication


             898      being no less than three and no more than 10 days before the hearing or the first of the set of
             899      hearings.
             900          (3) Each notice required under Subsection (1) shall:
             901          (a) if the hearing or set of hearings is concerning a resolution:
             902          (i) contain the entire text or an accurate summary of the resolution; and
             903          (ii) state the deadline for filing a protest against the creation of the proposed local
             904      district;
             905          (b) clearly identify each governing body involved in the hearing or set of hearings;
             906          (c) state the date, time, and place for the hearing or set of hearings and the purposes for
             907      the hearing or set of hearings; and
             908          (d) describe or include a map of the entire proposed local district.
             909          (4) County or municipal legislative bodies may jointly provide the notice required
             910      under this section if all the requirements of this section are met as to each notice.
             911          Section 13. Section 17B-1-213 is amended to read:
             912           17B-1-213. Protest after adoption of resolution -- Adoption of resolution
             913      approving creation for certain districts.
             914          (1) For purposes of this section, "adequate protests" means protests that are:
             915          (a) filed with the county clerk, municipal clerk or recorder, or local district secretary or
             916      clerk, as the case may be, within 60 days after the last public hearing required under Section
             917      17B-1-210 ; and
             918          (b) signed by:
             919          (i) the owners of private real property that:
             920          (A) is located within the proposed local district;
             921          (B) covers at least 25% of the total private land area within the applicable area; and
             922          (C) is equal in value to at least 15% of the value of all private real property within the
             923      applicable area; or
             924          (ii) registered voters residing within the applicable area equal in number to at least 25%
             925      of the number of votes cast in the applicable area for the office of governor at the last general


             926      election prior to the adoption of the resolution.
             927          (2) If adequate protests are filed, the governing body that adopted a resolution under
             928      Subsection 17B-1-203 (1)[(c) or] (d) or (e):
             929          (a) may not:
             930          (i) hold or participate in an election under Subsection 17B-1-214 (1) with respect to the
             931      applicable area;
             932          (ii) take any further action under the protested resolution to create a local district or
             933      include the applicable area in a local district; or
             934          (iii) for a period of two years, adopt a resolution under Subsection 17B-1-203 (1)[(c) or]
             935      (d) or (e) proposing the creation of a local district including substantially the same area as the
             936      applicable area and providing the same service as the proposed local district in the protested
             937      resolution; and
             938          (b) shall, within five days after receiving adequate protests, mail or deliver written
             939      notification of the adequate protests to the responsible body.
             940          (3) Subsection (2)(a) may not be construed to prevent an election from being held for a
             941      proposed local district whose boundaries do not include an applicable area that is the subject of
             942      adequate protests.
             943          (4) (a) If adequate protests are not filed with respect to a resolution proposing the
             944      creation of a local district for which an election is not required under Subsection
             945      17B-1-214 (3)[(c), (d), or (e)](d), (e), or (f), a resolution approving the creation of the local
             946      district may be adopted by:
             947          (i) (A) the legislative body of a county whose unincorporated area is included within
             948      the proposed local district; and
             949          (B) the legislative body of a municipality whose area is included within the proposed
             950      local district; or
             951          (ii) the board of trustees of the initiating local district.
             952          (b) Each resolution adopted under Subsection (4)(a) shall:
             953          (i) describe the area included in the local district;


             954          (ii) be accompanied by a map that shows the boundaries of the local district;
             955          (iii) describe the service to be provided by the local district;
             956          (iv) state the name of the local district; and
             957          (v) provide a process for the appointment of the members of the initial board of
             958      trustees.
             959          Section 14. Section 17B-1-214 is amended to read:
             960           17B-1-214. Election -- Exceptions.
             961          (1) (a) Except as provided in Subsection (3) and in Subsection 17B-1-213 (2)(a), an
             962      election on the question of whether the local district should be created shall be held by:
             963          (i) if the proposed local district is located entirely within a single county, the
             964      responsible clerk; or
             965          (ii) except as provided under Subsection (1)(b), if the proposed local district is located
             966      within more than one county, the clerk of each county in which part of the proposed local
             967      district is located, in cooperation with the responsible clerk.
             968          (b) Notwithstanding Subsection (1)(a)(ii), if the proposed local district is located
             969      within more than one county and the only area of a county that is included within the proposed
             970      local district is located within a single municipality, the election for that area shall be held by
             971      the municipal clerk or recorder, in cooperation with the responsible clerk.
             972          (2) Each election under Subsection (1) shall be held at the next special or regular
             973      general election date that is:
             974          (a) for an election pursuant to a property owner or registered voter petition, more than
             975      45 days after certification of the petition under Subsection 17B-1-209 (3)[(b)(i)](a); or
             976          (b) for an election pursuant to a resolution, more than 60 days after the latest hearing
             977      required under Section 17B-1-210 .
             978          (3) The election requirement of Subsection (1) does not apply to:
             979          (a) a petition filed under Subsection 17B-1-203 (1)(a) if it contains the signatures of the
             980      owners of private real property that:
             981          (i) is located within the proposed local district;


             982          (ii) covers at least 67% of the total private land area within the proposed local district
             983      as a whole and within each applicable area; and
             984          (iii) is equal in value to at least 50% of the value of all private real property within the
             985      proposed local district as a whole and within each applicable area;
             986          (b) a petition filed under Subsection 17B-1-203 (1)(b) if it contains the signatures of
             987      registered voters residing within the proposed local district as a whole and within each
             988      applicable area, equal in number to at least 67% of the number of votes cast in the proposed
             989      local district as a whole and in each applicable area, respectively, for the office of governor at
             990      the last general election prior to the filing of the petition;
             991          (c) a groundwater right owner petition filed under Subsection 17B-1-203 (1)(c) if the
             992      petition contains the signatures of the owners of groundwater rights that:
             993          (i) are diverted within the proposed local district; and
             994          (ii) cover at least 67% of the total amount of groundwater diverted in accordance with
             995      groundwater rights within the proposed local district as a whole and within each applicable
             996      area;
             997          [(c)] (d) a resolution adopted under Subsection 17B-1-203 (1)[(c)](d) on or after May 5,
             998      2003 that proposes the creation of a local district to provide fire protection, paramedic, and
             999      emergency services or law enforcement service, if the proposed local district includes a
             1000      majority of the unincorporated area of one or more counties;
             1001          [(d)] (e) a resolution adopted under Subsection 17B-1-203 (1)[(c) or](d) or (e) if the
             1002      resolution proposes the creation of a local district that has no registered voters within its
             1003      boundaries; or
             1004          [(e)] (f) a resolution adopted under Subsection 17B-1-203 (1)[(c)](d) on or after May
             1005      11, 2010 that proposes the creation of a local district described in Subsection
             1006      17B-1-202 (1)(a)(xiv).
             1007          (4) (a) If the proposed local district is located in more than one county, the responsible
             1008      clerk shall coordinate with the clerk of each other county and the clerk or recorder of each
             1009      municipality involved in an election under Subsection (1) so that the election is held on the


             1010      same date and in a consistent manner in each jurisdiction.
             1011          (b) The clerk of each county and the clerk or recorder of each municipality involved in
             1012      an election under Subsection (1) shall cooperate with the responsible clerk in holding the
             1013      election.
             1014          (c) Except as otherwise provided in this part, each election under Subsection (1) shall
             1015      be governed by Title 20A, Election Code.
             1016          Section 15. Section 17B-1-215 is amended to read:
             1017           17B-1-215. Notice and plat to lieutenant governor -- Recording requirements --
             1018      Certificate of incorporation -- Local district incorporated as specialized local district or
             1019      basic local district -- Effective date.
             1020          (1) (a) Within the time specified in Subsection (1)(b), the responsible body shall file
             1021      with the lieutenant governor:
             1022          (i) a copy of a notice of an impending boundary action, as defined in Section 67-1a-6.5 ,
             1023      that meets the requirements of Subsection 67-1a-6.5 (3); and
             1024          (ii) a copy of an approved final local entity plat, as defined in Section 67-1a-6.5 .
             1025          (b) The responsible body shall file the documents listed in Subsection (1)(a) with the
             1026      lieutenant governor within 10 days after:
             1027          (i) the canvass of an election under Section 17B-1-214 , if a majority of those voting at
             1028      the election within the proposed local district as a whole vote in favor of the creation of a local
             1029      district;
             1030          (ii) certification of a petition as to which the election requirement of Subsection
             1031      17B-1-214 (1) does not apply because of Subsection 17B-1-214 (3)(a) [or], (b), or (c); or
             1032          (iii) adoption of a resolution, under Subsection 17B-1-213 (4) approving the creation of
             1033      a local district for which an election was not required under Subsection 17B-1-214 (3)[(c), (d),
             1034      or (e)](d), (e), or (f), by the legislative body of each county whose unincorporated area is
             1035      included within and the legislative body of each municipality whose area is included within the
             1036      proposed local district, or by the board of trustees of the initiating local district.
             1037          (2) Upon the lieutenant governor's issuance of a certificate of incorporation under


             1038      Section 67-1a-6.5 , the responsible body shall:
             1039          (a) if the local district is located within the boundary of a single county, submit to the
             1040      recorder of that county:
             1041          (i) the original:
             1042          (A) notice of an impending boundary action;
             1043          (B) certificate of incorporation; and
             1044          (C) approved final local entity plat; and
             1045          (ii) if applicable, a certified copy of each resolution adopted under Subsection
             1046      17B-1-213 (4); or
             1047          (b) if the local district is located within the boundaries of more than a single county:
             1048          (i) submit to the recorder of one of those counties:
             1049          (A) the original of the documents listed in Subsections (2)(a)(i)(A), (B), and (C); and
             1050          (B) if applicable, a certified copy of each resolution adopted under Subsection
             1051      17B-1-213 (4); and
             1052          (ii) submit to the recorder of each other county:
             1053          (A) a certified copy of the documents listed in Subsection (2)(a)(i)(A), (B), and (C);
             1054      and
             1055          (B) if applicable, a certified copy of each resolution adopted under Subsection
             1056      17B-1-213 (4).
             1057          (3) The area of each local district consists of:
             1058          (a) if an election was held under Section 17B-1-214 , the area of the new local district
             1059      as approved at the election;
             1060          (b) if an election was not required because of Subsection 17B-1-214 (3)(a) [or (b)], (b),
             1061      or (c), the area of the proposed local district as described in the petition; or
             1062          (c) if an election was not required because of Subsection 17B-1-214 (3)[(c), (d), or
             1063      (e)](d), (e), or (f), the area of the new local district as described in the resolution adopted under
             1064      Subsection 17B-1-213 (4).
             1065          (4) (a) Upon the lieutenant governor's issuance of the certificate of incorporation under


             1066      Section 67-1a-6.5 , the local district is created and incorporated as:
             1067          (i) the type of specialized local district that was specified in the petition under
             1068      Subsection 17B-1-203 (1)(a) [or], (b), or (c) or resolution under Subsection 17B-1-203 (1)[(c)
             1069      or] (d) or (e), if the petition or resolution proposed the creation of a specialized local district; or
             1070          (ii) a basic local district, if the petition or resolution did not propose the creation of a
             1071      specialized local district.
             1072          (b) (i) The effective date of a local district's incorporation for purposes of assessing
             1073      property within the local district is governed by Section 59-2-305.5 .
             1074          (ii) Until the documents listed in Subsection (2) are recorded in the office of the
             1075      recorder of each county in which the property is located, a newly incorporated local district
             1076      may not:
             1077          (A) levy or collect a property tax on property within the local district;
             1078          (B) levy or collect an assessment on property within the local district; or
             1079          (C) charge or collect a fee for service provided to property within the local district.
             1080          Section 16. Section 17B-1-302 is amended to read:
             1081           17B-1-302. Board member qualifications -- Number of board members.
             1082          (1) (a) Each member of a local district board of trustees shall be:
             1083          (i) a registered voter at the location of the member's residence; and
             1084          (ii) except as provided in Subsections (1)(b) and (c), a resident within:
             1085          (A) the boundaries of the local district; and
             1086          (B) if applicable, the boundaries of the division of the local district from which the
             1087      member is elected.
             1088          (b) (i) As used in this Subsection (1)(b):
             1089          (A) "Proportional number" means the number of members of a board of trustees that
             1090      bears, as close as mathematically possible, the same proportion to all members of the board that
             1091      the number of seasonally occupied homes bears to all residences within the district that receive
             1092      service from the district.
             1093          (B) "Seasonally occupied home" means a single-family residence:


             1094          (I) that is located within the local district;
             1095          (II) that receives service from the local district; and
             1096          (III) whose owner:
             1097          (Aa) does not reside permanently at the residence; and
             1098          (Bb) may occupy the residence on a temporary or seasonal basis.
             1099          (ii) If over 50% of the residences within a local district that receive service from the
             1100      local district are seasonally occupied homes, the requirement under Subsection (1)(a)(ii) is
             1101      replaced, for a proportional number of members of the board of trustees, with the requirement
             1102      that the member be an owner of land, or an agent or officer of the owner of land, that:
             1103          (A) receives service from the district; and
             1104          (B) is located within:
             1105          (I) the local district; and
             1106          (II) if applicable, the division from which the member is elected.
             1107          (c) For a board of trustees member in a basic local district that has within its
             1108      boundaries fewer than one residential dwelling unit per 10 acres of land, the requirement under
             1109      Subsection (1)(a)(ii) is replaced with the requirement that the member be an owner of land
             1110      within the local district that receives service from the district, or an agent or officer of the
             1111      owner.
             1112          (2) Except as otherwise provided by statute, the number of members of each board of
             1113      trustees of a local district shall be an odd number that is no less than three.
             1114          (3) For a newly created local district, the number of members of the initial board of
             1115      trustees shall be the number specified:
             1116          (a) for a local district whose creation was initiated by a petition under Subsection
             1117      17B-1-203 (1)(a) [or], (b), or (c), in the petition; or
             1118          (b) for a local district whose creation was initiated by a resolution under Subsection
             1119      17B-1-203 (1)[(c) or] (d) or (e), in the resolution.
             1120          (4) (a) For an existing local district, the number of members of the board of trustees
             1121      may be changed by a two-thirds vote of the board of trustees.


             1122          (b) No change in the number of members of a board of trustees under Subsection (4)(a)
             1123      may:
             1124          (i) violate Subsection (2); or
             1125          (ii) serve to shorten the term of any member of the board.
             1126          Section 17. Section 17B-1-402 is amended to read:
             1127           17B-1-402. Annexation of area outside local district.
             1128          (1) An area outside the boundaries of a local district may be annexed to the local
             1129      district, as provided in this part, in order to provide to the area a service that the local district
             1130      provides.
             1131          (2) The area proposed to be annexed:
             1132          (a) may consist of one or more noncontiguous areas; and
             1133          (b) need not be adjacent to the boundaries of the proposed annexing local district.
             1134          (3) With respect to a local district in the creation of which an election was not required
             1135      under Subsection 17B-1-214 (3)[(c)](d):
             1136          (a) an unincorporated area of a county may not be annexed to the local district unless,
             1137      after annexation, at least a majority of the unincorporated area of the county will be included in
             1138      the local district; and
             1139          (b) the annexation of any part of an area within a municipality shall include all of the
             1140      area within the municipality.
             1141          (4) A local district may not annex an area located within a project area described in a
             1142      project area plan adopted by the military installation development authority under Title 63H,
             1143      Chapter 1, Military Installation Development Authority Act, without the authority's approval.
             1144          Section 18. Section 17B-1-414 is amended to read:
             1145           17B-1-414. Resolution approving an annexation -- Filing of notice and plat with
             1146      lieutenant governor -- Recording requirements -- Effective date.
             1147          (1) (a) Subject to Subsection (1)(b), the local district board shall adopt a resolution
             1148      approving the annexation of the area proposed to be annexed or rejecting the proposed
             1149      annexation within 30 days after:


             1150          (i) expiration of the protest period under Subsection 17B-1-412 (2), if sufficient protests
             1151      to require an election are not filed;
             1152          (ii) for a petition that meets the requirements of Subsection 17B-1-413 (1):
             1153          (A) a public hearing under Section 17B-1-409 is held, if the board chooses or is
             1154      required to hold a public hearing under Subsection 17B-1-413 (2)(a)(ii); or
             1155          (B) expiration of the time for submitting a request for public hearing under Subsection
             1156      17B-1-413 (2)(a)(ii)(B), if no request is submitted and the board chooses not to hold a public
             1157      hearing.
             1158          (b) If the local district has entered into an agreement with the United States that
             1159      requires the consent of the United States for an annexation of territory to the district, a
             1160      resolution approving annexation under this part may not be adopted until the written consent of
             1161      the United States is obtained and filed with the board of trustees.
             1162          (2) (a) (i) Within the time specified under Subsection (2)(a)(ii), the board shall file with
             1163      the lieutenant governor:
             1164          (A) a copy of a notice of an impending boundary action, as defined in Section
             1165      67-1a-6.5 , that meets the requirements of Subsection 67-1a-6.5 (3) and, if applicable,
             1166      Subsection (2)(b); and
             1167          (B) a copy of an approved final local entity plat, as defined in Section 67-1a-6.5 .
             1168          (ii) The board shall file the documents listed in Subsection (2)(a)(i) with the lieutenant
             1169      governor:
             1170          (A) within 30 days after adoption of a resolution under Subsection (1), Subsection
             1171      17B-1-412 (3)(c)(i), or Section 17B-1-415 ; and
             1172          (B) as soon as practicable after receiving the notice under Subsection 10-2-425 (2) of a
             1173      municipal annexation that causes an automatic annexation to a local district under Section
             1174      17B-1-416 .
             1175          (b) For an automatic annexation to a local district under Section 17B-1-416 , the notice
             1176      of an impending boundary action required under Subsection (2)(a) shall state that an area
             1177      outside the boundaries of the local district is being automatically annexed to the local district


             1178      under Section 17B-1-416 because of a municipal annexation under Title 10, Chapter 2, Part 4,
             1179      Annexation.
             1180          (c) Upon the lieutenant governor's issuance of a certificate of annexation under Section
             1181      67-1a-6.5 , the board shall:
             1182          (i) if the annexed area is located within the boundary of a single county, submit to the
             1183      recorder of that county:
             1184          (A) the original:
             1185          (I) notice of an impending boundary action;
             1186          (II) certificate of annexation; and
             1187          (III) approved final local entity plat; and
             1188          (B) a certified copy of the annexation resolution; or
             1189          (ii) if the annexed area is located within the boundaries of more than a single county:
             1190          (A) submit to the recorder of one of those counties:
             1191          (I) the original of the documents listed in Subsections (2)(c)(i)(A)(I), (II), and (III); and
             1192          (II) a certified copy of the annexation resolution; and
             1193          (B) submit to the recorder of each other county:
             1194          (I) a certified copy of the documents listed in Subsection (2)(c)(i)(A)(I), (II), and (III);
             1195      and
             1196          (II) a certified copy of the annexation resolution.
             1197          (3) (a) As used in this Subsection (3), "fire district annexation" means an annexation
             1198      under this part of an area located in a county of the first class to a local district:
             1199          (i) created to provide fire protection, paramedic, and emergency services; and
             1200          (ii) in the creation of which an election was not required because of Subsection
             1201      17B-1-214 (3)[(c)](d).
             1202          (b) An annexation under this part is complete and becomes effective:
             1203          (i) (A) on July 1 for a fire district annexation, if the lieutenant governor issues the
             1204      certificate of annexation under Section 67-1a-6.5 from January 1 through June 30; or
             1205          (B) on January 1 for a fire district annexation, if the lieutenant governor issues the


             1206      certificate of annexation under Section 67-1a-6.5 from July 1 through December 31; or
             1207          (ii) upon the lieutenant governor's issuance of the certificate of annexation under
             1208      Section 67-1a-6.5 , for any other annexation.
             1209          (c) (i) The effective date of a local district annexation for purposes of assessing
             1210      property within the annexed area is governed by Section 59-2-305.5 .
             1211          (ii) Until the documents listed in Subsection (2)(c) are recorded in the office of the
             1212      recorder of each county in which the property is located, a local district may not:
             1213          (A) levy or collect a property tax on property within the annexed area;
             1214          (B) levy or collect an assessment on property within the annexed area; or
             1215          (C) charge or collect a fee for service provided to property within the annexed area.
             1216          (iii) Subsection (3)(c)(ii)(C):
             1217          (A) may not be construed to limit a local district's ability before annexation to charge
             1218      and collect a fee for service provided to property that is outside the local district's boundary;
             1219      and
             1220          (B) does not apply until 60 days after the effective date, under Subsection (3)(b), of the
             1221      local district's annexation, with respect to a fee that the local district was charging for service
             1222      provided to property within the annexed area immediately before the area was annexed to the
             1223      local district.
             1224          Section 19. Section 17B-1-416 is amended to read:
             1225           17B-1-416. Automatic annexation to a district providing fire protection,
             1226      paramedic, and emergency services or law enforcement service.
             1227          (1) An area outside the boundaries of a local district that is annexed to a municipality
             1228      or added to a municipality by a boundary adjustment under Title 10, Chapter 2, Part 4,
             1229      Annexation, is automatically annexed to the local district if:
             1230          (a) the local district provides:
             1231          (i) fire protection, paramedic, and emergency services; or
             1232          (ii) law enforcement service;
             1233          (b) an election for the creation of the local district was not required because of


             1234      Subsection 17B-1-214 (3)[(c)](d); and
             1235          (c) before the municipal annexation or boundary adjustment, the entire municipality
             1236      that is annexing the area or adding the area by boundary adjustment was included within the
             1237      local district.
             1238          (2) The effective date of an annexation under this section is governed by Subsection
             1239      17B-1-414 (3)(b).
             1240          Section 20. Section 17B-1-502 is amended to read:
             1241           17B-1-502. Withdrawal of area from local district -- Automatic withdrawal in
             1242      certain circumstances -- Definitions.
             1243          (1) (a) An area within the boundaries of a local district may be withdrawn from the
             1244      local district only as provided in this part.
             1245          (b) Except as provided in Subsections (2) and (3), the inclusion of an area of a local
             1246      district within a municipality because of a municipal incorporation under Title 10, Chapter 2,
             1247      Part 1, Incorporation, or a municipal annexation or boundary adjustment under Title 10,
             1248      Chapter 2, Part 4, Annexation, does not affect the requirements under this part for the process
             1249      of withdrawing that area from the local district.
             1250          (2) (a) An area within the boundaries of a local district is automatically withdrawn
             1251      from the local district by the annexation of the area to a municipality or the adding of the area
             1252      to a municipality by boundary adjustment under Title 10, Chapter 2, Part 4, Annexation, if:
             1253          (i) the local district provides:
             1254          (A) fire protection, paramedic, and emergency services; or
             1255          (B) law enforcement service;
             1256          (ii) an election for the creation of the local district was not required because of
             1257      Subsection 17B-1-214 (3)[(c)](d); and
             1258          (iii) before annexation or boundary adjustment, the boundaries of the local district do
             1259      not include any of the annexing municipality.
             1260          (b) The effective date of a withdrawal under this Subsection (2) is governed by
             1261      Subsection 17B-1-512 (2)(b).


             1262          (3) (a) An area within the boundaries of a local district located in a county of the first
             1263      class is automatically withdrawn from the local district by the incorporation of a municipality
             1264      whose boundaries include the area if:
             1265          (i) the local district provides:
             1266          (A) fire protection, paramedic, and emergency services; or
             1267          (B) law enforcement service;
             1268          (ii) an election for the creation of the local district was not required because of
             1269      Subsection 17B-1-214 (3)[(c)](d); and
             1270          (iii) the legislative body of the newly incorporated municipality:
             1271          (A) adopts a resolution approving the withdrawal that includes the legal description of
             1272      the area to be withdrawn; and
             1273          (B) delivers a copy of the resolution to the board of trustees of the local district.
             1274          (b) The effective date of a withdrawal under this Subsection (3) is governed by
             1275      Subsection 17B-1-512 (2)(a).
             1276          Section 21. Section 17B-1-505 is amended to read:
             1277           17B-1-505. Withdrawal of municipality in certain districts providing fire
             1278      protection, paramedic, and emergency services or law enforcement service.
             1279          (1) (a) The process to withdraw an area from a local district may be initiated by a
             1280      resolution adopted by the legislative body of a municipality that is entirely within the
             1281      boundaries of a local district:
             1282          (i) that provides:
             1283          (A) fire protection, paramedic, and emergency services; or
             1284          (B) law enforcement service; and
             1285          (ii) in the creation of which an election was not required because of Subsection
             1286      17B-1-214 (3)[(c)](d).
             1287          (b) Within 10 days after adopting a resolution under Subsection (1)(a), the municipal
             1288      legislative body shall submit to the board of trustees of the local district written notice of the
             1289      adoption of the resolution, accompanied by a copy of the resolution.


             1290          (2) If a resolution is adopted under Subsection (1)(a), the municipal legislative body
             1291      shall hold an election at the next municipal general election that is more than 60 days after
             1292      adoption of the resolution on the question of whether the municipality should withdraw from
             1293      the local district.
             1294          (3) If a majority of those voting on the question of withdrawal at an election held under
             1295      Subsection (2) vote in favor of withdrawal, the municipality shall be withdrawn from the local
             1296      district.
             1297          (4) (a) Within 10 days after the canvass of an election at which a withdrawal under this
             1298      section is submitted to voters, the municipal legislative body shall send written notice to the
             1299      board of the local district from which the municipality is proposed to withdraw.
             1300          (b) Each notice under Subsection (4)(a) shall:
             1301          (i) state the results of the withdrawal election; and
             1302          (ii) if the withdrawal was approved by voters, be accompanied by a map or legal
             1303      description of the area to be withdrawn, adequate for purposes of the county assessor and
             1304      recorder.
             1305          (5) The effective date of a withdrawal under this section is governed by Subsection
             1306      17B-1-512 (2)(a).
             1307          Section 22. Section 17B-1-1402 is amended to read:
             1308           17B-1-1402. Board of trustees of a basic local district.
             1309          (1) As specified in a petition under Subsection 17B-1-203 (1)(a) or (b) or a resolution
             1310      under Subsection 17B-1-203 (1)[(c) or] (d) or (e), and except as provided in Subsection (2), the
             1311      members of a board of trustees of a basic local district may be:
             1312          (a) (i) elected by registered voters; or
             1313          (ii) appointed by the responsible body, as defined in Section 17B-1-201 ; or
             1314          (b) if the area of the local district contains less than one residential dwelling unit per 50
             1315      acres of land at the time the resolution is adopted or the petition is filed, elected by the owners
             1316      of real property within the local district based on:
             1317          (i) the amount of acreage owned by property owners;


             1318          (ii) the assessed value of property owned by property owners; or
             1319          (iii) water rights:
             1320          (A) relating to the real property within the local district;
             1321          (B) that the real property owner:
             1322          (I) owns; or
             1323          (II) has transferred to the local district.
             1324          (2) As specified in a groundwater right owner petition under Subsection
             1325      17B-1-203 (1)(c) or a resolution under Subsection 17B-1-203 (1)(d) or (e), the members of a
             1326      board of trustees of a basic local district created to manage groundwater rights the district
             1327      acquires or assesses under Section 17B-1-202 shall be:
             1328          (a) subject to Section 17B-1-104.5 , elected by the owners of groundwater rights that
             1329      are diverted within the local district;
             1330          (b) appointed by the responsible body, as defined in Section 17B-1-201 ; or
             1331          (c) elected or appointed as provided in Subsection (3).
             1332          [(2)] (3) A petition under Subsection 17B-1-203 (1)(a) or (b) and a resolution under
             1333      Subsection 17B-1-203 (1)[(c) or] (d) or (e) may provide for a transition from one or more
             1334      methods of election or appointment under Subsection (1) or (2) to one or more other methods
             1335      of election or appointment based upon milestones or events that the petition or resolution
             1336      identifies.
             1337          Section 23. Section 17B-2a-905 is amended to read:
             1338           17B-2a-905. Service area board of trustees.
             1339          (1) (a) Except as provided in Subsection (2):
             1340          (i) the initial board of trustees of a service area located entirely within the
             1341      unincorporated area of a single county may, as stated in the petition or resolution that initiated
             1342      the process of creating the service area:
             1343          (A) consist of the county legislative body;
             1344          (B) be appointed, as provided in Section 17B-1-304 ; or
             1345          (C) be elected, as provided in Section 17B-1-306 ;


             1346          (ii) if the board of trustees of a service area consists of the county legislative body, the
             1347      board may adopt a resolution providing for future board members to be appointed, as provided
             1348      in Section 17B-1-304 , or elected, as provided in Section 17B-1-306 ; and
             1349          (iii) members of the board of trustees of a service area shall be elected, as provided in
             1350      Section 17B-1-306 , if:
             1351          (A) the service area is not entirely within the unincorporated area of a single county;
             1352          (B) a petition is filed with the board of trustees requesting that board members be
             1353      elected, and the petition is signed by registered voters within the service area equal in number
             1354      to at least 10% of the number of registered voters within the service area who voted at the last
             1355      gubernatorial election; or
             1356          (C) an election is held to authorize the service area's issuance of bonds.
             1357          (b) If members of the board of trustees of a service area are required to be elected
             1358      under Subsection (1)(a)(iii)(C) because of a bond election:
             1359          (i) board members shall be elected in conjunction with the bond election;
             1360          (ii) the board of trustees shall:
             1361          (A) establish a process to enable potential candidates to file a declaration of candidacy
             1362      sufficiently in advance of the election; and
             1363          (B) provide a ballot for the election of board members separate from the bond ballot;
             1364      and
             1365          (iii) except as provided in this Subsection (1)(b), the election shall be held as provided
             1366      in Section 17B-1-306 .
             1367          (2) (a) This Subsection (2) applies to a service area created on or after May 5, 2003 if:
             1368          (i) the service area was created to provide:
             1369          (A) fire protection, paramedic, and emergency services; or
             1370          (B) law enforcement service; and
             1371          (ii) in the creation of the service area, an election was not required under Subsection
             1372      17B-1-214 (3)[(c)](d).
             1373          (b) (i) Each county whose unincorporated area is included within a service area


             1374      described in Subsection (2)(a), whether in conjunction with the creation of the service area or
             1375      by later annexation, shall appoint three members to the board of trustees.
             1376          (ii) Each municipality whose area is included within a service area described in
             1377      Subsection (2)(a), whether in conjunction with the creation of the service area or by later
             1378      annexation, shall appoint one member to the board of trustees.
             1379          (iii) Each member appointed by a county or municipality under Subsection (2)(b)(i) or
             1380      (ii) shall be an elected official of the appointing county or municipality, respectively.
             1381          (c) Notwithstanding Subsection 17B-1-302 (2), the number of members of a board of
             1382      trustees of a service area described in Subsection (2)(a) shall be the number resulting from
             1383      application of Subsection (2)(b).
             1384          Section 24. Section 73-5-15 is amended to read:
             1385           73-5-15. Groundwater management plan.
             1386          (1) As used in this section:
             1387          (a) "Critical management area" means a groundwater basin in which the groundwater
             1388      withdrawals consistently exceed the safe yield.
             1389          (b) "Safe yield" means the amount of groundwater that can be withdrawn from a
             1390      groundwater basin over a period of time without exceeding the long-term recharge of the basin
             1391      or unreasonably affecting the basin's physical and chemical integrity.
             1392          (2) (a) The state engineer may regulate groundwater withdrawals within a specific
             1393      groundwater basin by adopting a groundwater management plan in accordance with this section
             1394      for any groundwater basin or aquifer or combination of hydrologically connected groundwater
             1395      basins or aquifers.
             1396          (b) The objectives of a groundwater management plan are to:
             1397          (i) limit groundwater withdrawals to safe yield;
             1398          (ii) protect the physical integrity of the aquifer; and
             1399          (iii) protect water quality.
             1400          (c) The state engineer shall adopt a groundwater management plan for a groundwater
             1401      basin if more than 1/3 of the water right owners in the groundwater basin request that the state


             1402      engineer adopt a groundwater management plan.
             1403          (3) (a) In developing a groundwater management plan, the state engineer may consider:
             1404          (i) the hydrology of the groundwater basin;
             1405          (ii) the physical characteristics of the groundwater basin;
             1406          (iii) the relationship between surface water and groundwater, including whether the
             1407      groundwater should be managed in conjunction with hydrologically connected surface waters;
             1408          (iv) the geographic spacing and location of groundwater withdrawals;
             1409          (v) water quality;
             1410          (vi) local well interference; and
             1411          (vii) other relevant factors.
             1412          (b) The state engineer shall base the provisions of a groundwater management plan on
             1413      the principles of prior appropriation.
             1414          (c) (i) The state engineer shall use the best available scientific method to determine
             1415      safe yield.
             1416          (ii) As hydrologic conditions change or additional information becomes available, safe
             1417      yield determinations made by the state engineer may be revised by following the procedures
             1418      listed in Subsection (5).
             1419          (4) (a) (i) Except as provided in Subsection (4)(b), the withdrawal of water from a
             1420      groundwater basin shall be limited to the basin's safe yield.
             1421          (ii) Before limiting withdrawals in a groundwater basin to safe yield, the state engineer
             1422      shall:
             1423          (A) determine the groundwater basin's safe yield; and
             1424          (B) adopt a groundwater management plan for the groundwater basin.
             1425          (iii) If the state engineer determines that groundwater withdrawals in a groundwater
             1426      basin exceed the safe yield, the state engineer shall regulate groundwater rights in that
             1427      groundwater basin based on the priority date of the water rights under the groundwater
             1428      management plan, unless a voluntary arrangement exists under Subsection (4)(c) that requires a
             1429      different distribution.


             1430          (b) When adopting a groundwater management plan for a critical management area, the
             1431      state engineer shall, based on economic and other impacts to an individual water user or a local
             1432      community caused by the implementation of safe yield limits on withdrawals, allow gradual
             1433      implementation of the groundwater management plan.
             1434          (c) (i) In consultation with the state engineer, water users in a groundwater basin may
             1435      agree to participate in a voluntary arrangement for managing withdrawals at any time, either
             1436      before or after a determination that groundwater withdrawals exceed the groundwater basin's
             1437      safe yield.
             1438          (ii) A voluntary arrangement under Subsection (4)(c)(i) shall be consistent with other
             1439      law.
             1440          (iii) The adoption of a voluntary arrangement under this Subsection (4)(c) by less than
             1441      all of the water users in a groundwater basin does not affect the rights of water users who do
             1442      not agree to the voluntary arrangement.
             1443          (5) To adopt a groundwater management plan, the state engineer shall:
             1444          (a) give notice as specified in Subsection (7) at least 30 days before the first public
             1445      meeting held in accordance with Subsection (5)(b):
             1446          (i) that the state engineer proposes to adopt a groundwater management plan;
             1447          (ii) describing generally the land area proposed to be included in the groundwater
             1448      management plan; and
             1449          (iii) stating the location, date, and time of each public meeting to be held in accordance
             1450      with Subsection (5)(b);
             1451          (b) hold one or more public meetings in the geographic area proposed to be included
             1452      within the groundwater management plan to:
             1453          (i) address the need for a groundwater management plan;
             1454          (ii) present any data, studies, or reports that the state engineer intends to consider in
             1455      preparing the groundwater management plan;
             1456          (iii) address safe yield and any other subject that may be included in the groundwater
             1457      management plan;


             1458          (iv) outline the estimated administrative costs, if any, that groundwater users are likely
             1459      to incur if the plan is adopted; and
             1460          (v) receive any public comments and other information presented at the public
             1461      meeting, including comments from any of the entities listed in Subsection (7)(a)(iii);
             1462          (c) receive and consider written comments concerning the proposed groundwater
             1463      management plan from any person for a period determined by the state engineer of not less
             1464      than 60 days after the day on which the notice required by Subsection (5)(a) is given;
             1465          (d) (i) at least 60 days prior to final adoption of the groundwater management plan,
             1466      publish notice:
             1467          (A) that a draft of the groundwater management plan has been proposed; and
             1468          (B) specifying where a copy of the draft plan may be reviewed; and
             1469          (ii) promptly provide a copy of the draft plan in printed or electronic form to each of
             1470      the entities listed in Subsection (7)(a)(iii) that makes written request for a copy; and
             1471          (e) provide notice of the adoption of the groundwater management plan.
             1472          (6) A groundwater management plan shall become effective on the date notice of
             1473      adoption is completed under Subsection (7), or on a later date if specified in the plan.
             1474          (7) (a) A notice required by this section shall be:
             1475          (i) published:
             1476          (A) once a week for two successive weeks in a newspaper of general circulation in
             1477      each county that encompasses a portion of the land area proposed to be included within the
             1478      groundwater management plan; and
             1479          (B) in accordance with Section 45-1-101 for two weeks;
             1480          (ii) published conspicuously on the state engineer's Internet website; and
             1481          (iii) mailed to each of the following that has within its boundaries a portion of the land
             1482      area to be included within the proposed groundwater management plan:
             1483          (A) county;
             1484          (B) incorporated city or town;
             1485          (C) a local district created to acquire or assess a groundwater right under Title 17B,


             1486      Chapter 1, Provisions Applicable to All Local Districts;
             1487          [(C)] (D) improvement district under Title 17B, Chapter 2a, Part 4, Improvement
             1488      District Act;
             1489          [(D)] (E) service area, under Title 17B, Chapter 2a, Part 9, Service Area Act;
             1490          [(E)] (F) drainage district, under Title 17B, Chapter 2a, Part 2, Drainage District Act;
             1491          [(F)] (G) irrigation district, under Title 17B, Chapter 2a, Part 5, Irrigation District Act;
             1492          [(G)] (H) metropolitan water district, under Title 17B, Chapter 2a, Part 6, Metropolitan
             1493      Water District Act;
             1494          [(H)] (I) special service district providing water, sewer, drainage, or flood control
             1495      services, under Title 17D, Chapter 1, Special Service District Act;
             1496          [(I)] (J) water conservancy district, under Title 17B, Chapter 2a, Part 10, Water
             1497      Conservancy District Act; and
             1498          [(J)] (K) conservation district, under Title 17D, Chapter 3, Conservation District Act.
             1499          (b) A notice required by this section is effective upon substantial compliance with
             1500      Subsections (7)(a)(i) through (iii).
             1501          (8) A groundwater management plan may be amended in the same manner as a
             1502      groundwater management plan may be adopted under this section.
             1503          (9) The existence of a groundwater management plan does not preclude any otherwise
             1504      eligible person from filing any application or challenging any decision made by the state
             1505      engineer within the affected groundwater basin.
             1506          (10) (a) A person aggrieved by a groundwater management plan may challenge any
             1507      aspect of the groundwater management plan by filing a complaint within 60 days after the
             1508      adoption of the groundwater management plan in the district court for any county in which the
             1509      groundwater basin is found.
             1510          (b) Notwithstanding Subsection (9), a person may challenge the components of a
             1511      groundwater management plan only in the manner provided by Subsection (10)(a).
             1512          (c) An action brought under this Subsection (10) is reviewed de novo by the district
             1513      court.


             1514          (d) A person challenging a groundwater management plan under this Subsection (10)
             1515      shall join the state engineer as a defendant in the action challenging the groundwater
             1516      management plan.
             1517          (e) (i) Within 30 days after the day on which a person files an action challenging any
             1518      aspect of a groundwater management plan under Subsection (10)(a), the person filing the action
             1519      shall publish notice of the action:
             1520          (A) in a newspaper of general circulation in the county in which the district court is
             1521      located; and
             1522          (B) in accordance with Section 45-1-101 for two weeks.
             1523          (ii) The notice required by Subsection (10)(e)(i)(A) shall be published once a week for
             1524      two consecutive weeks.
             1525          (iii) The notice required by Subsection (10)(e)(i) shall:
             1526          (A) identify the groundwater management plan the person is challenging;
             1527          (B) identify the case number assigned by the district court;
             1528          (C) state that a person affected by the groundwater management plan may petition the
             1529      district court to intervene in the action challenging the groundwater management plan; and
             1530          (D) list the address for the clerk of the district court in which the action is filed.
             1531          (iv) (A) Any person affected by the groundwater management plan may petition to
             1532      intervene in the action within 60 days after the day on which notice is last published under
             1533      Subsections (10)(e)(i) and (ii).
             1534          (B) The district court's treatment of a petition to intervene under this Subsection
             1535      (10)(e)(iv) is governed by the Utah Rules of Civil Procedure.
             1536          (v) A district court in which an action is brought under Subsection (10)(a) shall
             1537      consolidate all actions brought under that subsection and include in the consolidated action any
             1538      person whose petition to intervene is granted.
             1539          (11) A groundwater management plan adopted or amended in accordance with this
             1540      section is exempt from the requirements in Title 63G, Chapter 3, Utah Administrative
             1541      Rulemaking Act.


             1542          (12) Recharge and recovery projects permitted under Chapter 3b, Groundwater
             1543      Recharge and Recovery Act, are exempted from this section.
             1544          (13) Nothing in this section may be interpreted to require the development,
             1545      implementation, or consideration of a groundwater management plan as a prerequisite or
             1546      condition to the exercise of the state engineer's enforcement powers under other law, including
             1547      powers granted under Section 73-2-25 .
             1548          (14) A groundwater management plan adopted in accordance with this section may not
             1549      apply to the dewatering of a mine.
             1550          (15) (a) A groundwater management plan adopted by the state engineer before May 1,
             1551      2006, remains in force and has the same legal effect as it had on the day on which it was
             1552      adopted by the state engineer.
             1553          (b) If a groundwater management plan that existed before May 1, 2006, is amended on
             1554      or after May 1, 2006, the amendment is subject to this section's provisions.


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