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First Substitute S.B. 181

Senator Wayne A. Harper proposes the following substitute bill:


             1     
POLITICAL SUBDIVISIONS PROPERTY AMENDMENTS

             2     
2013 GENERAL SESSION

             3     
STATE OF UTAH

             4     
Chief Sponsor: Wayne A. Harper

             5     
House Sponsor: V. Lowry Snow

             6     
             7      LONG TITLE
             8      General Description:
             9          This bill enacts language prohibiting a political subdivision or educational entity from
             10      disposing of property unless the political subdivision or educational entity receives fair
             11      market value for the property.
             12      Highlighted Provisions:
             13          This bill:
             14          .    defines terms;
             15          .    prohibits, with certain exceptions, a political subdivision or educational entity from
             16      disposing of property unless the political subdivision or educational entity receives
             17      fair market value for the property; and
             18          .    makes technical corrections.
             19      Money Appropriated in this Bill:
             20          None
             21      Other Special Clauses:
             22          None
             23      Utah Code Sections Affected:
             24      AMENDS:
             25          17-50-302, as last amended by Laws of Utah 2010, Chapter 385


             26          17-50-312, as last amended by Laws of Utah 2007, Chapter 291
             27          17B-1-103, as last amended by Laws of Utah 2011, Chapters 68 and 272
             28          17B-1-301, as last amended by Laws of Utah 2011, Chapter 209
             29          17D-1-103, as enacted by Laws of Utah 2008, Chapter 360
             30      ENACTS:
             31          11-50-101, Utah Code Annotated 1953
             32          11-50-102, Utah Code Annotated 1953
             33          11-50-201, Utah Code Annotated 1953
             34     
             35      Be it enacted by the Legislature of the state of Utah:
             36          Section 1. Section 11-50-101 is enacted to read:
             37     
CHAPTER 50. PROPERTY OF POLITICAL SUBDIVISIONS

             38     
Part 1. General Provisions

             39          11-50-101. Title.
             40          This chapter is known as "Property of Political Subdivisions."
             41          Section 2. Section 11-50-102 is enacted to read:
             42          11-50-102. Definitions.
             43          (1) "Consideration" means something:
             44          (a) of value given or done in exchange for something given or done by another,
             45      including money, a service, or labor; or
             46          (b) provided in the public interest supporting health, safety, and welfare of the citizens
             47      of a political subdivision.
             48          (2) "Educational entity" means a school district or charter school.
             49          (3) "Fair market value" means the consideration at which property would change hands
             50      between a willing buyer and a willing seller, neither being under any compulsion to buy or sell
             51      and both having reasonable knowledge of the relevant facts.
             52          (4) "Political subdivision" means:
             53          (a) a county;
             54          (b) a municipality;
             55          (c) a local district;
             56          (d) a special service district; or


             57          (e) an entity created by an interlocal agreement adopted in accordance with Title 11,
             58      Chapter 13, Interlocal Cooperation Act.
             59          (5) "Property" means anything of value, whether real or personal, tangible or
             60      intangible, including:
             61          (a) an interest in property;
             62          (b) a benefit, privilege, right, or other interest with respect to anything of value;
             63          (c) proprietary software;
             64          (d) a computer program that is developed or purchased by or for a political subdivision
             65      or educational entity for its own use; or
             66          (e) data collected or compiled by a political subdivision, whether stored electronically
             67      or otherwise.
             68          (6) "Record" has the same meaning as defined in Section 63G-2-103 .
             69          Section 3. Section 11-50-201 is enacted to read:
             70     
Part 2. Certain Prohibitions on Disposal of Political Subdivision Property

             71          11-50-201. Consideration for political subdivision property.
             72          (1) A political subdivision or educational entity:
             73          (a) shall hold property in trust for the public's interest; and
             74          (b) except as provided in Subsection (2), may not sell, alienate, give away, or otherwise
             75      dispose of property without receiving fair market value for the property.
             76          (2) Subsection (1) does not apply to:
             77          (a) property conveyed in accordance with Section 11-13-214 ;
             78          (b) property described in Section 11-13-215 ;
             79          (c) a service or assistance provided by a county in accordance with Section 17-50-303 ;
             80          (d) property that is:
             81          (i) subject to Subsection (3), a record requested in accordance with Title 63G, Chapter
             82      2, Government Records Access and Management Act; and
             83          (ii) is requested for a purpose, including media purposes, other than commercial use;
             84          (e) property requested by, conveyed to, or otherwise disposed to the state, another
             85      political subdivision, or the federal government;
             86          (f) the acquisition or disposal of property in accordance with Section 10-8-2 ; or
             87          (g) any transfer of property specifically authorized by law.


             88          (3) (a) If a records request has apparent significant commercial value, the custodian of
             89      the property may require the requestor to attest in writing, under penalty of perjury, whether the
             90      material is to be used for commercial resale purposes.
             91          (b) If the request is for commercial resale purposes, the requestor shall pay fair market
             92      value for the property as provided in Subsection (1).
             93          Section 4. Section 17-50-302 is amended to read:
             94           17-50-302. General county powers.
             95          (1) (a) Except as provided in Subsection (1)(b), a county may:
             96          (i) as prescribed by statute:
             97          (A) levy a tax;
             98          (B) perform an assessment;
             99          (C) collect a tax;
             100          (D) borrow money; or
             101          (E) levy and collect a special assessment for a conferred benefit; or
             102          (ii) provide a service, exercise a power, or perform a function that is reasonably related
             103      to the safety, health, morals, and welfare of county inhabitants, except as limited or prohibited
             104      by statute.
             105          (b) A county or a governmental instrumentality of a county may not perform an action
             106      described in Subsection (1)(a)(i) or provide a service, exercise a power, or perform a function
             107      described in Subsection (1)(a)(ii) in another county or a municipality within the other county
             108      without first entering into an agreement under Title 11, Chapter 13, Interlocal Cooperation Act,
             109      or other contract with the other county to perform the action, provide the service, exercise the
             110      power, or perform the function.
             111          (2) (a) A county may:
             112          (i) sue and be sued;
             113          (ii) subject to Subsection (2)(c), acquire real property by tax sale, purchase, lease,
             114      contract, or gift, and hold the real property as necessary and proper for county purposes;
             115          (iii) (A) subject to Subsection (2)(b), acquire real property by condemnation, as
             116      provided in Title 78B, Chapter 6, Part 5, Eminent Domain; and
             117          (B) hold the real property as necessary and proper for county purposes;
             118          (iv) as may be necessary to the exercise of its powers, acquire personal property by


             119      purchase, lease, contract, or gift, and hold such personal property; and
             120          (v) subject to Title 11, Chapter 50, Part 2, Certain Prohibitions on Disposal of Political
             121      Subdivision Property, manage and dispose of its property as the interests of its inhabitants may
             122      require.
             123          (b) (i) For purposes of Subsection (2)(a)(iii), water rights that are not appurtenant to
             124      land do not constitute real property that may be acquired by the county through condemnation.
             125          (ii) Nothing in Subsection (2)(a)(iii) may be construed to authorize a county to acquire
             126      by condemnation the rights to water unless the land to which those water rights are appurtenant
             127      is acquired by condemnation.
             128          (c) (i) Except as provided in Subsection (2)(c)(iv), each county intending to acquire
             129      real property for the purpose of expanding the county's infrastructure or other facilities used for
             130      providing services that the county offers or intends to offer shall provide written notice, as
             131      provided in this Subsection (2)(c), of its intent to acquire the property if:
             132          (A) the property is located:
             133          (I) outside the boundaries of the unincorporated area of the county; and
             134          (II) in a county of the first or second class; and
             135          (B) the intended use of the property is contrary to:
             136          (I) the anticipated use of the property under the general plan of the county in whose
             137      unincorporated area or the municipality in whose boundaries the property is located; or
             138          (II) the property's current zoning designation.
             139          (ii) Each notice under Subsection (2)(c)(i) shall:
             140          (A) indicate that the county intends to acquire real property;
             141          (B) identify the real property; and
             142          (C) be sent to:
             143          (I) each county in whose unincorporated area and each municipality in whose
             144      boundaries the property is located; and
             145          (II) each affected entity.
             146          (iii) A notice under this Subsection (2)(c) is a protected record as provided in
             147      Subsection 63G-2-305 (7).
             148          (iv) (A) The notice requirement of Subsection (2)(c)(i) does not apply if the county
             149      previously provided notice under Section 17-27a-203 identifying the general location within


             150      the municipality or unincorporated part of the county where the property to be acquired is
             151      located.
             152          (B) If a county is not required to comply with the notice requirement of Subsection
             153      (2)(c)(i) because of application of Subsection (2)(c)(iv)(A), the county shall provide the notice
             154      specified in Subsection (2)(c)(i) as soon as practicable after its acquisition of the real property.
             155          Section 5. Section 17-50-312 is amended to read:
             156           17-50-312. Acquisition, management, and disposal of property.
             157          (1) Subject to Subsection (4) and Title 11, Chapter 50, Part 2, Certain Prohibitions on
             158      Disposal of Political Subdivision Property, a county may purchase, receive, hold, sell, lease,
             159      convey, or otherwise acquire and dispose of any real or personal property or any interest in
             160      such property if the action is in the public interest and complies with other law.
             161          (2) Any property interest acquired by the county shall be held in the name of the county
             162      unless specifically otherwise provided by law.
             163          (3) The county legislative body shall, subject to Title 11, Chapter 50, Part 2, Certain
             164      Prohibitions on Disposal of Political Subdivision Property, provide by ordinance, resolution,
             165      rule, or regulation for the manner in which property shall be acquired, managed, and disposed
             166      of.
             167          (4) (a) Before a county may dispose of a significant parcel of real property, the county
             168      shall:
             169          (i) provide reasonable notice of the proposed disposition at least 14 days before the
             170      opportunity for public comment under Subsection (4)(a)(ii); and
             171          (ii) allow an opportunity for public comment on the proposed disposition.
             172          (b) Each county shall, by ordinance, define what constitutes:
             173          (i) a significant parcel of real property for purposes of Subsection (4)(a); and
             174          (ii) reasonable notice for purposes of Subsection (4)(a)(i).
             175          Section 6. Section 17B-1-103 is amended to read:
             176           17B-1-103. Local district status and powers.
             177          (1) A local district:
             178          (a) is:
             179          (i) a body corporate and politic with perpetual succession;
             180          (ii) a quasi-municipal corporation; and


             181          (iii) a political subdivision of the state; and
             182          (b) may sue and be sued.
             183          (2) A local district may:
             184          (a) acquire, by any lawful means, or lease any real property, personal property, or a
             185      groundwater right necessary or convenient to the full exercise of the district's powers;
             186          (b) acquire, by any lawful means, any interest in real property, personal property, or a
             187      groundwater right necessary or convenient to the full exercise of the district's powers;
             188          (c) subject to Title 11, Chapter 50, Part 2, Certain Prohibitions on Disposal of Political
             189      Subdivision Property, transfer an interest in or dispose of any property or interest described in
             190      Subsections (2)(a) and (b);
             191          (d) acquire or construct works, facilities, and improvements necessary or convenient to
             192      the full exercise of the district's powers, and operate, control, maintain, and use those works,
             193      facilities, and improvements;
             194          (e) borrow money and incur indebtedness for any lawful district purpose;
             195          (f) issue bonds, including refunding bonds:
             196          (i) for any lawful district purpose; and
             197          (ii) as provided in and subject to Part 11, Local District Bonds;
             198          (g) levy and collect property taxes:
             199          (i) for any lawful district purpose or expenditure, including to cover a deficit resulting
             200      from tax delinquencies in a preceding year; and
             201          (ii) as provided in and subject to Part 10, Local District Property Tax Levy;
             202          (h) as provided in Title 78B, Chapter 6, Part 5, Eminent Domain, acquire by eminent
             203      domain property necessary to the exercise of the district's powers;
             204          (i) invest money as provided in Title 51, Chapter 7, State Money Management Act;
             205          (j) (i) impose fees or other charges for commodities, services, or facilities provided by
             206      the district, to pay some or all of the district's costs of providing the commodities, services, and
             207      facilities, including the costs of:
             208          (A) maintaining and operating the district;
             209          (B) acquiring, purchasing, constructing, improving, or enlarging district facilities;
             210          (C) issuing bonds and paying debt service on district bonds; and
             211          (D) providing a reserve established by the board of trustees; and


             212          (ii) take action the board of trustees considers appropriate and adopt regulations to
             213      assure the collection of all fees and charges that the district imposes;
             214          (k) if applicable, charge and collect a fee to pay for the cost of connecting a customer's
             215      property to district facilities in order for the district to provide service to the property;
             216          (l) enter into a contract that the local district board of trustees considers necessary,
             217      convenient, or desirable to carry out the district's purposes, including a contract:
             218          (i) with the United States or any department or agency of the United States;
             219          (ii) to indemnify and save harmless; or
             220          (iii) to do any act to exercise district powers;
             221          (m) purchase supplies, equipment, and materials;
             222          (n) encumber district property upon terms and conditions that the board of trustees
             223      considers appropriate;
             224          (o) exercise other powers and perform other functions that are provided by law;
             225          (p) construct and maintain works and establish and maintain facilities, including works
             226      or facilities:
             227          (i) across or along any public street or highway, subject to Subsection (3) and if the
             228      district:
             229          (A) promptly restores the street or highway, as much as practicable, to its former state
             230      of usefulness; and
             231          (B) does not use the street or highway in a manner that completely or unnecessarily
             232      impairs the usefulness of it;
             233          (ii) in, upon, or over any vacant public lands that are or become the property of the
             234      state, including school and institutional trust lands, as defined in Section 53C-1-103 , if the
             235      director of the School and Institutional Trust Lands Administration, acting under Sections
             236      53C-1-102 and 53C-1-303 , consents; or
             237          (iii) across any stream of water or watercourse, subject to Section 73-3-29 ;
             238          (q) perform any act or exercise any power reasonably necessary for the efficient
             239      operation of the local district in carrying out its purposes;
             240          (r) (i) except for a local district described in Subsection (2)(r)(ii), designate an
             241      assessment area and levy an assessment on land within the assessment area, as provided in
             242      Title 11, Chapter 42, Assessment Area Act; or


             243          (ii) for a local district created to assess a groundwater right in a critical management
             244      area described in Subsection 17B-1-202 (1), designate an assessment area and levy an
             245      assessment, as provided in Title 11, Chapter 42, Assessment Area Act, on a groundwater right
             246      to facilitate a groundwater management plan;
             247          (s) contract with another political subdivision of the state to allow the other political
             248      subdivision to use the district's surplus water or capacity or have an ownership interest in the
             249      district's works or facilities, upon the terms and for the consideration, whether monetary or
             250      nonmonetary consideration or no consideration, that the district's board of trustees considers to
             251      be in the best interests of the district and the public; and
             252          (t) upon the terms and for the consideration, whether monetary or nonmonetary
             253      consideration or no consideration, that the district's board of trustees considers to be in the best
             254      interests of the district and the public, agree:
             255          (i) with:
             256          (A) another political subdivision of the state; or
             257          (B) a public or private owner of property:
             258          (I) on which the district has a right-of-way; or
             259          (II) adjacent to which the district owns fee title to property; and
             260          (ii) to allow the use of property:
             261          (A) owned by the district; or
             262          (B) on which the district has a right-of-way.
             263          (3) With respect to a local district's use of a street or highway, as provided in
             264      Subsection (2)(p)(i):
             265          (a) the district shall comply with the reasonable rules and regulations of the
             266      governmental entity, whether state, county, or municipal, with jurisdiction over the street or
             267      highway, concerning:
             268          (i) an excavation and the refilling of an excavation;
             269          (ii) the relaying of pavement; and
             270          (iii) the protection of the public during a construction period; and
             271          (b) the governmental entity, whether state, county, or municipal, with jurisdiction over
             272      the street or highway:
             273          (i) may not require the district to pay a license or permit fee or file a bond; and


             274          (ii) may require the district to pay a reasonable inspection fee.
             275          (4) (a) A local district may:
             276          (i) acquire, lease, or construct and operate electrical generation, transmission, and
             277      distribution facilities, if:
             278          (A) the purpose of the facilities is to harness energy that results inherently from the
             279      district's:
             280          (I) operation of a project or facilities that the district is authorized to operate; or
             281          (II) providing a service that the district is authorized to provide;
             282          (B) the generation of electricity from the facilities is incidental to the primary
             283      operations of the district; and
             284          (C) operation of the facilities will not hinder or interfere with the primary operations of
             285      the district;
             286          (ii) (A) use electricity generated by the facilities; or
             287          (B) subject to Subsection (4)(b), sell electricity generated by the facilities to an electric
             288      utility or municipality with an existing system for distributing electricity.
             289          (b) A district may not act as a retail distributor or seller of electricity.
             290          (c) Revenue that a district receives from the sale of electricity from electrical
             291      generation facilities it owns or operates under this section may be used for any lawful district
             292      purpose, including the payment of bonds issued to pay some or all of the cost of acquiring or
             293      constructing the facilities.
             294          (5) A local district may adopt and, after adoption, alter a corporate seal.
             295          (6) (a) As used in this Subsection (6), "knife" means a cutting instrument that includes
             296      a sharpened or pointed blade.
             297          (b) The authority to regulate a knife is reserved to the state except where the
             298      Legislature specifically delegates responsibility to a local district.
             299          (c) Unless specifically authorized by the Legislature by statute, a local district may not
             300      adopt or enforce a regulation or rule pertaining to a knife.
             301          Section 7. Section 17B-1-301 is amended to read:
             302           17B-1-301. Board of trustees duties and powers.
             303          (1) (a) Each local district shall be governed by a board of trustees which shall manage
             304      and conduct the business and affairs of the district and shall determine all questions of district


             305      policy.
             306          (b) All powers of a local district are exercised through the board of trustees.
             307          (2) The board of trustees may:
             308          (a) fix the location of the local district's principal place of business and the location of
             309      all offices and departments, if any;
             310          (b) fix the times of meetings of the board of trustees;
             311          (c) select and use an official district seal;
             312          (d) subject to Subsections (3) and (4), employ employees and agents, or delegate to
             313      district officers power to employ employees and agents, for the operation of the local district
             314      and its properties and prescribe or delegate to district officers the power to prescribe the duties,
             315      compensation, and terms and conditions of employment of those employees and agents;
             316          (e) require district officers and employees charged with the handling of district funds to
             317      provide surety bonds in an amount set by the board or provide a blanket surety bond to cover
             318      officers and employees;
             319          (f) contract for or employ professionals to perform work or services for the local
             320      district that cannot satisfactorily be performed by the officers or employees of the district;
             321          (g) through counsel, prosecute on behalf of or defend the local district in all court
             322      actions or other proceedings in which the district is a party or is otherwise involved;
             323          (h) adopt bylaws for the orderly functioning of the board;
             324          (i) adopt and enforce rules and regulations for the orderly operation of the local district
             325      or for carrying out the district's purposes;
             326          (j) prescribe a system of civil service for district employees;
             327          (k) on behalf of the local district, enter into contracts that the board considers to be for
             328      the benefit of the district;
             329          (l) acquire, construct or cause to be constructed, operate, occupy, control, and use
             330      buildings, works, or other facilities for carrying out the purposes of the local district;
             331          (m) on behalf of the local district, acquire, use, hold, manage, occupy, and possess
             332      property necessary to carry out the purposes of the district, dispose of property, subject to Title
             333      11, Chapter 50, Part 2, Certain Prohibitions on Disposal of Political Subdivision Property,
             334      when the board considers it appropriate, and institute and maintain in the name of the district
             335      any action or proceeding to enforce, maintain, protect, or preserve rights or privileges


             336      associated with district property;
             337          (n) delegate to a district officer the exercise of a district duty; and
             338          (o) exercise all powers and perform all functions in the operation of the local district
             339      and its properties as are ordinarily exercised by the governing body of a political subdivision of
             340      the state and as are necessary to accomplish the purposes of the district.
             341          (3) (a) As used in this Subsection (3), "interim vacancy period" means:
             342          (i) if any member of the local district board is elected, the period of time that:
             343          (A) begins on the day on which a municipal general election described in Section
             344      17B-1-306 is held to elect a local district board member; and
             345          (B) ends on the day on which the local district board member-elect begins the
             346      member's term; or
             347          (ii) if any member of the local district board is appointed, the period of time that:
             348          (A) begins on the day on which an appointing authority posts a notice of vacancy in
             349      accordance with Section 17B-1-304 ; and
             350          (B) ends on the day on which the person who is appointed by the local district board to
             351      fill the vacancy begins the person's term.
             352          (b) (i) The local district may not hire during an interim vacancy period a manager, a
             353      chief executive officer, a chief administrative officer, or a similar position to perform executive
             354      and administrative duties or functions.
             355          (ii) Notwithstanding Subsection (3)(b)(i):
             356          (A) the local district may hire an interim manager, a chief executive officer, a chief
             357      administrative officer, or a similar position during an interim vacancy period; and
             358          (B) the interim manager's, chief executive officer's, chief administrative officer's, or
             359      similar position's employment shall terminate once a new manager, chief executive officer,
             360      chief administrative officer, or similar position is hired by the new local district board after the
             361      interim vacancy period has ended.
             362          (c) Subsection (3)(b) does not apply if:
             363          (i) all the elected local district board members who held office on the day of the
             364      municipal general election whose term of office was vacant for the election are re-elected to the
             365      local district board; and
             366          (ii) all the appointed local district board members who were appointed whose term of


             367      appointment was expiring are re-appointed to the local district board.
             368          (4) A local district board that hires an interim manager, a chief executive officer, a
             369      chief administrative officer, or a similar position in accordance with this section may not, on or
             370      after May 10, 2011, enter into an employment contract that contains an automatic renewal
             371      provision with the interim manager, chief executive officer, chief administrative officer, or
             372      similar position.
             373          Section 8. Section 17D-1-103 is amended to read:
             374           17D-1-103. Special service district status, powers, and duties -- Limitation on
             375      districts providing jail service.
             376          (1) A special service district:
             377          (a) is a body corporate and politic with perpetual succession, separate and distinct from
             378      the county or municipality that creates it;
             379          (b) is a quasi-municipal corporation; and
             380          (c) may sue and be sued.
             381          (2) A special service district may:
             382          (a) exercise the power of eminent domain possessed by the county or municipality that
             383      creates the special service district;
             384          (b) enter into a contract that the governing authority considers desirable to carry out
             385      special service district functions, including a contract:
             386          (i) with the United States or an agency of the United States, the state, an institution of
             387      higher education, a county, a municipality, a school district, a local district, another special
             388      service district, or any other political subdivision of the state; or
             389          (ii) that includes provisions concerning the use, operation, and maintenance of special
             390      service district facilities and the collection of fees or charges with respect to commodities,
             391      services, or facilities that the district provides;
             392          (c) acquire or construct facilities;
             393          (d) acquire real or personal property, or an interest in real or personal property,
             394      including water and water rights, whether by purchase, lease, gift, devise, bequest, or
             395      otherwise, and whether the property is located inside or outside the special service district, and
             396      own, hold, improve, use, finance, or otherwise deal in and with the property or property right;
             397          (e) subject to Title 11, Chapter 50, Part 2, Certain Prohibitions on Disposal of Political


             398      Subdivision Property, sell, convey, lease, exchange, transfer, or otherwise dispose of all or any
             399      part of the special service district's property or assets, including water and water rights;
             400          (f) mortgage, pledge, or otherwise encumber all or any part of the special service
             401      district's property or assets, including water and water rights;
             402          (g) enter into a contract with respect to the use, operation, or maintenance of all or any
             403      part of the special service district's property or assets, including water and water rights;
             404          (h) accept a government grant or loan and comply with the conditions of the grant or
             405      loan;
             406          (i) use an officer, employee, property, equipment, office, or facility of the county or
             407      municipality that created the special service district, subject to reimbursement as provided in
             408      Subsection (3);
             409          (j) employ one or more officers, employees, or agents, including one or more
             410      engineers, accountants, attorneys, or financial consultants, and establish their compensation;
             411          (k) designate an assessment area and levy an assessment as provided in Title 11,
             412      Chapter 42, Assessment Area Act;
             413          (l) contract with a franchised, certificated public utility for the construction and
             414      operation of an electrical service distribution system within the special service district;
             415          (m) borrow money and incur indebtedness;
             416          (n) as provided in Part 5, Special Service District Bonds, issue bonds for the purpose of
             417      acquiring, constructing, and equipping any of the facilities required for the services the special
             418      service district is authorized to provide, including:
             419          (i) bonds payable in whole or in part from taxes levied on the taxable property in the
             420      special service district;
             421          (ii) bonds payable from revenues derived from the operation of revenue-producing
             422      facilities of the special service district;
             423          (iii) bonds payable from both taxes and revenues;
             424          (iv) guaranteed bonds, payable in whole or in part from taxes levied on the taxable
             425      property in the special service district;
             426          (v) tax anticipation notes;
             427          (vi) bond anticipation notes;
             428          (vii) refunding bonds;


             429          (viii) special assessment bonds; and
             430          (ix) bonds payable in whole or in part from mineral lease payments as provided in
             431      Section 11-14-308 ;
             432          (o) except as provided in Subsection (4), impose fees or charges or both for
             433      commodities, services, or facilities that the special service district provides;
             434          (p) provide to an area outside the special service district's boundary, whether inside or
             435      outside the state, a service that the special service district is authorized to provide within its
             436      boundary, if the governing body makes a finding that there is a public benefit to providing the
             437      service to the area outside the special service district's boundary;
             438          (q) provide other services that the governing body determines will more effectively
             439      carry out the purposes of the special service district; and
             440          (r) adopt an official seal for the special service district.
             441          (3) Each special service district that uses an officer, employee, property, equipment,
             442      office, or facility of the county or municipality that created the special service district shall
             443      reimburse the county or municipality a reasonable amount for what the special service district
             444      uses.
             445          (4) (a) A special service district that provides jail service as provided in Subsection
             446      17D-1-201 (10) may not impose a fee or charge for the service it provides.
             447          (b) Subsection (4)(a) may not be construed to limit a special service district that
             448      provides jail service from:
             449          (i) entering into a contract with the federal government, the state, or a political
             450      subdivision of the state to provide jail service for compensation; or
             451          (ii) receiving compensation for jail service it provides under a contract described in
             452      Subsection (4)(b)(i).


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