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H.B. 421

             1     

LOCAL DISTRICT DISSOLUTION

             2     
2012 GENERAL SESSION

             3     
STATE OF UTAH

             4     
Chief Sponsor: Daniel McCay

             5     
Senate Sponsor: Aaron Osmond

             6     
             7      LONG TITLE
             8      General Description:
             9          This bill amends provisions related to the dissolution of a local district.
             10      Highlighted Provisions:
             11          This bill:
             12          .    prohibits the creation of certain local districts;
             13          .    amends definitions;
             14          .    amends provisions related to a petition to dissolve a local district;
             15          .    amends provisions related to the certification of a petition to dissolve a local
             16      district;
             17          .    prohibits the board of trustees of an inactive local district from taking certain
             18      actions; and
             19          .    makes technical corrections.
             20      Money Appropriated in this Bill:
             21          None
             22      Other Special Clauses:
             23          None
             24      Utah Code Sections Affected:
             25      AMENDS:
             26          17B-1-202, as last amended by Laws of Utah 2011, Chapters 68, 106, 126, and 340
             27          17B-1-1301, as renumbered and amended by Laws of Utah 2007, Chapter 329


             28          17B-1-1304, as renumbered and amended by Laws of Utah 2007, Chapter 329
             29          17B-1-1305, as renumbered and amended by Laws of Utah 2007, Chapter 329
             30      ENACTS:
             31          17B-1-1305.5, Utah Code Annotated 1953
             32     
             33      Be it enacted by the Legislature of the state of Utah:
             34          Section 1. Section 17B-1-202 is amended to read:
             35           17B-1-202. Local district may be created -- Services that may be provided --
             36      Limitations.
             37          (1) (a) A local district may be created as provided in this part to provide within its
             38      boundaries service consisting of:
             39          (i) the operation of an airport;
             40          (ii) the operation of a cemetery;
             41          (iii) fire protection, paramedic, and emergency services, including consolidated 911
             42      and emergency dispatch services;
             43          (iv) garbage collection and disposal;
             44          (v) health care, including health department or hospital service;
             45          (vi) the operation of a library;
             46          (vii) abatement or control of mosquitos and other insects;
             47          (viii) the operation of parks or recreation facilities or services;
             48          (ix) the operation of a sewage system;
             49          (x) street lighting;
             50          (xi) the construction and maintenance of a right-of-way, including:
             51          (A) a curb;
             52          (B) a gutter;
             53          (C) a sidewalk;
             54          (D) a street;
             55          (E) a road;
             56          (F) a water line;
             57          (G) a sewage line;
             58          (H) a storm drain;


             59          (I) an electricity line;
             60          (J) a communications line; or
             61          (K) a natural gas line;
             62          (xii) transportation, including public transit and providing streets and roads;
             63          (xiii) the operation of a system, or one or more components of a system, for the
             64      collection, storage, retention, control, conservation, treatment, supplying, distribution, or
             65      reclamation of water, including storm, flood, sewage, irrigation, and culinary water, whether
             66      the system is operated on a wholesale or retail level or both;
             67          (xiv) in accordance with Subsection (1)(c), the acquisition or assessment of a
             68      groundwater right for the development and execution of a groundwater management plan in
             69      cooperation with and approved by the state engineer in accordance with Section 73-5-15 ;
             70          (xv) law enforcement service;
             71          (xvi) subject to Subsection (1)(b), the underground installation of an electric utility line
             72      or the conversion to underground of an existing electric utility line;
             73          (xvii) the control or abatement of earth movement or a landslide; or
             74          (xviii) the operation of animal control services and facilities.
             75          (b) Each local district that provides the service of the underground installation of an
             76      electric utility line or the conversion to underground of an existing electric utility line shall, in
             77      installing or converting the line, provide advance notice to and coordinate with the utility that
             78      owns the line.
             79          (c) A groundwater management plan described in Subsection (1)(a)(xiv) may include
             80      the banking of groundwater rights by a local district in a critical management area as defined in
             81      Section 73-5-15 following the adoption of a groundwater management plan by the state
             82      engineer under Section 73-5-15 .
             83          (i) A local district may manage the groundwater rights it acquires under Subsection
             84      17B-1-103 (2)(a) or (b) consistent with the provisions of a groundwater management plan
             85      described in this Subsection (1)(c).
             86          (ii) A groundwater right held by a local district to satisfy the provisions of a
             87      groundwater management plan is not subject to the forfeiture provisions of Section 73-1-4 .
             88          (iii) (A) A local district may divest itself of a groundwater right subject to a
             89      determination that the groundwater right is not required to facilitate the groundwater


             90      management plan described in this Subsection (1)(c).
             91          (B) The groundwater right described in Subsection (1)(c)(iii)(A) is subject to Section
             92      73-1-4 beginning on the date of divestiture.
             93          (iv) Upon a determination by the state engineer that an area is no longer a critical
             94      management area as defined in Section 73-5-15 , a groundwater right held by the local district is
             95      subject to Section 73-1-4 .
             96          (v) A local district created in accordance with Subsection (1)(a)(xiv) to develop and
             97      execute a groundwater management plan may hold or acquire a right to surface waters that are
             98      naturally tributary to the groundwater basin subject to the groundwater management plan if the
             99      surface waters are appropriated in accordance with Title 73, Water and Irrigation, and used in
             100      accordance with Title 73, Chapter 3b, Groundwater Recharge and Recovery Act.
             101          (2) For purposes of this section:
             102          (a) "Operation" means all activities involved in providing the indicated service
             103      including acquisition and ownership of property reasonably necessary to provide the indicated
             104      service and acquisition, construction, and maintenance of facilities and equipment reasonably
             105      necessary to provide the indicated service.
             106          (b) "System" means the aggregate of interrelated components that combine together to
             107      provide the indicated service including, for a sewage system, collection and treatment.
             108          (3) (a) A local district may not be created to provide and may not after its creation
             109      provide more than four of the services listed in Subsection (1).
             110          (b) Subsection (3)(a) may not be construed to prohibit a local district from providing
             111      more than four services if, before April 30, 2007, the local district was authorized to provide
             112      those services.
             113          (4) (a) Except as provided in Subsection (4)(b), a local district may not be created to
             114      provide and may not after its creation provide to an area the same service already being
             115      provided to that area by another political subdivision, unless the other political subdivision
             116      gives its written consent.
             117          (b) For purposes of Subsection (4)(a), a local district does not provide the same service
             118      as another political subdivision if it operates a component of a system that is different from a
             119      component operated by another political subdivision but within the same:
             120          (i) sewage system; or


             121          (ii) water system.
             122          (5) (a) Except for a local district in the creation of which an election is not required
             123      under Subsection 17B-1-214 (3)(d), the area of a local district may include all or part of the
             124      unincorporated area of one or more counties and all or part of one or more municipalities.
             125          (b) The area of a local district need not be contiguous.
             126          (6) For a local district created before May 5, 2008, the authority to provide fire
             127      protection service also includes the authority to provide:
             128          (a) paramedic service; and
             129          (b) emergency service, including hazardous materials response service.
             130          (7) A local district created before May 11, 2010, authorized to provide the construction
             131      and maintenance of curb, gutter, or sidewalk may provide a service described in Subsection
             132      (1)(a)(xi) on or after May 11, 2010.
             133          (8) A local district created before May 10, 2011, authorized to provide culinary,
             134      irrigation, sewage, or storm water services may provide a service described in Subsection
             135      (1)(a)(xiii) on or after May 10, 2011.
             136          (9) A local district may not be created under this chapter for two years after the date on
             137      which a local district is dissolved in accordance with Part 13, Dissolution of a Local District, if
             138      the local district proposed for creation:
             139          (a) provides the same or substantially similar services as the dissolved local district;
             140      and
             141          (b) is located in substantially the same area as the dissolved local district.
             142          Section 2. Section 17B-1-1301 is amended to read:
             143           17B-1-1301. Definitions.
             144          For purposes of this part:
             145          (1) "Active" means, with respect to a local district, that the district is not inactive.
             146          (2) "Administrative body" means:
             147          (a) if the local district proposed to be dissolved is active and has a duly constituted
             148      board of trustees in sufficient numbers to form a quorum, the board of trustees; or
             149          (b) except as provided in Subsection (2)(a):
             150          (i) for a local district located entirely within a single municipality, the legislative body
             151      of that municipality;


             152          (ii) for a local district located in multiple municipalities within the same county or at
             153      least partly within the unincorporated area of a county, the legislative body of that county; or
             154          (iii) for a local district located within multiple counties, the legislative body of the
             155      county whose boundaries include more of the local district than is included within the
             156      boundaries of any other county.
             157          (3) "Clerk" means:
             158          (a) the board of trustees if the board is also the administrative body under Subsection
             159      (2)(a);
             160          (b) the clerk or recorder of the municipality whose legislative body is the
             161      administrative body under Subsection (2)(b)(i); or
             162          (c) the clerk of the county whose legislative body is the administrative body under
             163      Subsection (2)(b)(ii) or (iii).
             164          (4) "Inactive" means, with respect to a local district, that during the preceding three
             165      years the district has not:
             166          (a) provided any service or otherwise operated;
             167          (b) received property taxes or user or other fees; and
             168          (c) expended any funds.
             169          Section 3. Section 17B-1-1304 is amended to read:
             170           17B-1-1304. Petition requirements.
             171          (1) A person who circulates a petition described in Section 17B-1-1303 shall use a
             172      petition form:
             173          (a) provided by the clerk; and
             174          (b) that complies with this section.
             175          [(1)] (2) Each petition under Subsection 17B-1-1303 (1)(a) or (2) shall:
             176          (a) indicate the typed or printed name and current residence address of each owner of
             177      acre-feet of water, property owner, or registered voter signing the petition;
             178          (b) if it is a petition signed by the owners of acre-feet of water or property owners,
             179      indicate the address of the property as to which the owner is signing;
             180          (c) designate up to three signers of the petition as sponsors, one of whom shall be
             181      designated the contact sponsor, with the mailing address and telephone number of each; and
             182          (d) be filed with the clerk.


             183          [(2)] (3) A signer of a petition to dissolve a local district may withdraw, or, once
             184      withdrawn, reinstate the signer's signature at any time until 30 days after the public hearing
             185      under Section 17B-1-1306 .
             186          (4) (a) A person who circulates a petition under Section 17B-1-1303 shall have 90 days
             187      after the day on which the person receives a petition form from the clerk under Subsection
             188      (1)(a) to:
             189          (i) collect the signatures required by Section 17B-1-1303 ; and
             190          (ii) file the petition for certification in accordance with Subsection (2)(b).
             191          (b) The clerk may not accept a petition for certification if the 90-day period described
             192      in Subsection (4)(a) has expired.
             193          Section 4. Section 17B-1-1305 is amended to read:
             194           17B-1-1305. Petition certification.
             195          (1) Within 30 days after the filing of a petition under Subsection 17B-1-1303 (1)(a) or
             196      (2), the clerk shall:
             197          (a) with the assistance of officers of the county in which the local district is located
             198      from whom the clerk requests assistance, determine whether the petition meets the
             199      requirements of [Section] Sections 17B-1-1303 and [Subsection] 17B-1-1304 [(1)]; and
             200          (b) (i) if the clerk determines that the petition complies with the requirements, certify
             201      the petition and mail or deliver written notification of the certification to the contact sponsor;
             202      or
             203          (ii) if the clerk determines that the petition fails to comply with any of the
             204      requirements, reject the petition and mail or deliver written notification of the rejection and the
             205      reasons for the rejection to the contact sponsor.
             206          (2) (a) [If] Except as provided in Subsection (2)(c), if the clerk rejects a petition under
             207      Subsection (1)(b)(ii), the petition may be amended to correct the deficiencies for which it was
             208      rejected and then refiled.
             209          (b) [A] Except as provided in Subsection (2)(c), a valid signature on a petition that was
             210      rejected under Subsection (1)(b)(ii) may be used toward fulfilling the applicable signature
             211      requirement of the petition as amended under Subsection (2)(a).
             212          (c) A petition that is not filed within the 90-day period described in Section
             213      17B-1-1304 may not be refiled under this Subsection (2).


             214          (3) The clerk shall process an amended petition filed under Subsection (2)(a) in the
             215      same manner as an original petition under Subsection (1).
             216          Section 5. Section 17B-1-1305.5 is enacted to read:
             217          17B-1-1305.5. Inactive local district dissolution -- Moratorium.
             218          (1) Except as provided in Subsection (2), if an administrative body has adopted a
             219      resolution to dissolve an inactive district under Section 17B-1-1303 , or a person has received a
             220      petition form from the clerk to dissolve the inactive district under Section 17B-1-1304 , the
             221      board of trustees of an inactive district may not:
             222          (a) provide any service or otherwise operate;
             223          (b) receive property taxes or user or other fees; or
             224          (c) expend any funds.
             225          (2) A board of trustees described in Subsection (1) may engage in an activity described
             226      in Subsection (1)(a), (b), or (c) if:
             227          (a) a petitioner fails to meet the 90-day period requirement described in Section
             228      17B-1-1304 ; or
             229          (b) the administrative body fails to adopt a resolution approving the dissolution of the
             230      local district under Section 17B-1-1308 .




Legislative Review Note
    as of 2-28-12 9:13 AM


Office of Legislative Research and General Counsel


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