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First Substitute S.B. 51

Senator Jerry W. Stevenson proposes the following substitute bill:


             1     
LOCAL GOVERNMENT ENTITIES AMENDMENTS

             2     
2014 GENERAL SESSION

             3     
STATE OF UTAH

             4     
Chief Sponsor: Jerry W. Stevenson

             5     
House Sponsor: Stephen G. Handy

             6     
             7      LONG TITLE
             8      General Description:
             9          This bill amends provisions related to local government entities.
             10      Highlighted Provisions:
             11          This bill:
             12          .    defines terms;
             13          .    prohibits, with certain exceptions, a governing body from spending money
             14      deposited in an enterprise fund for a purpose that is not directly related to the goods
             15      or services provided by the enterprise for which the enterprise fund was created;
             16          .    authorizes a local district to provide services, nonmonetary assistance, or monetary
             17      assistance to a nonprofit entity;
             18          .    amends provisions related to the creation of a local district;
             19          .    amends provisions governing the term of an appointed water conservancy district
             20      board member;
             21          .    clarifies provisions that exempt an appointing authority from certain requirements if
             22      it appoints one of its own members to a board of trustees;
             23          .    authorizes a local district to designate and consolidate polling places and provide a
             24      local district election ballot in consultation with a county clerk;
             25          .    amends provisions related to the division of a local district for the purpose of


             26      electing or appointing the members of the board of trustees;
             27          .    amends provisions related to the authority of a local district to continue to tax an
             28      area withdrawn from the local district;
             29          .    requires a board of trustees to mail notice of a hearing to consider adoption of a
             30      budget to an owner of property or a registered voter within the local district;
             31          .    allows a local district to establish reasonable rules that require customers who sign
             32      up for one service to receive multiple commodities, services, or facilities provided
             33      by the district in certain circumstances;
             34          .    prohibits in certain circumstances a county legislative body from adopting a
             35      resolution for the appointment of a board of trustees member in a county
             36      improvement district;
             37          .    amends provisions related to a mosquito abatement district's power to establish a
             38      reserve fund;
             39          .    amends certain provisions related to the funding of a public transit district;
             40          .    allows a member of a public transit district board of trustees who is appointed by a
             41      county or municipality to be employed by the county or municipality in certain
             42      circumstances;
             43          .    amends criminal provisions related to riding in a transit vehicle without payment;
             44          .    amends a public transit district's authority to use certain information obtained
             45      through a background check;
             46          .    requires a board of trustees for a water conservancy district to give written notice of
             47      an upcoming vacancy in an appointed trustee's term within a certain period of time;
             48          .    amends definitions;
             49          .    amends provisions authorizing a municipality or improvement district to appoint
             50      members to an administrative control board;
             51          .    amends provisions related to the board of canvassers for a local district;
             52          .    authorizes a public transit district to use an automatic license plate reader system to
             53      assess parking needs and conduct travel pattern analyses;
             54          .    authorizes the dissemination of a criminal history or warrant of arrest information to
             55      a public transit district for certain purposes;
             56          .    amends provisions related to the state auditor's authority to withhold state allocated


             57      funds or the disbursement of property taxes from a state or local taxing or fee-assessing unit;
             58          .    amends provisions relating to adverse possession to include a local district; and
             59          .    makes technical and conforming amendments.
             60      Money Appropriated in this Bill:
             61          None
             62      Other Special Clauses:
             63          None
             64      Utah Code Sections Affected:
             65      AMENDS:
             66           10-5-107 , as last amended by Laws of Utah 2010, Chapters 116 and 378
             67           10-6-106 , as last amended by Laws of Utah 2003, Chapter 292
             68           10-6-135 , as last amended by Laws of Utah 2010, Chapter 116
             69           17B-1-103 , as last amended by Laws of Utah 2011, Chapters 68 and 272
             70           17B-1-202 , as last amended by Laws of Utah 2013, Chapters 246 and 448
             71           17B-1-303 , as last amended by Laws of Utah 2013, Chapter 448
             72           17B-1-304 , as last amended by Laws of Utah 2013, Chapter 448
             73           17B-1-306 , as last amended by Laws of Utah 2013, Chapters 402 and 448
             74           17B-1-306.5 , as renumbered and amended by Laws of Utah 2008, Chapter 360
             75           17B-1-511 , as last amended by Laws of Utah 2012, Chapter 97
             76           17B-1-609 , as last amended by Laws of Utah 2012, Chapter 97
             77           17B-1-641 , as renumbered and amended by Laws of Utah 2007, Chapter 329
             78           17B-1-901 , as enacted by Laws of Utah 2007, Chapter 329
             79           17B-2a-404 , as last amended by Laws of Utah 2012, Chapter 97
             80           17B-2a-703 , as enacted by Laws of Utah 2007, Chapter 329
             81           17B-2a-804 , as last amended by Laws of Utah 2011, Chapter 223
             82           17B-2a-807 , as last amended by Laws of Utah 2013, Chapter 191
             83           17B-2a-821 , as renumbered and amended by Laws of Utah 2007, Chapter 329
             84           17B-2a-825 , as last amended by Laws of Utah 2010, Chapter 281
             85           17B-2a-1005 , as last amended by Laws of Utah 2010, Chapter 159
             86           17D-1-102 , as last amended by Laws of Utah 2013, Chapter 265
             87           17D-1-302 , as last amended by Laws of Utah 2012, Chapter 97


             88           17D-1-303 , as enacted by Laws of Utah 2008, Chapter 360
             89           17D-1-304 , as last amended by Laws of Utah 2012, Chapter 97
             90           20A-1-512 , as last amended by Laws of Utah 2013, Chapter 448
             91           20A-4-301 , as last amended by Laws of Utah 2010, Chapter 197
             92           41-6a-2003 , as enacted by Laws of Utah 2013, Chapter 447
             93           53-10-108 , as last amended by Laws of Utah 2012, Chapter 239
             94           67-3-1 , as last amended by Laws of Utah 2013, Chapter 384
             95           78B-2-216 , as last amended by Laws of Utah 2010, Chapter 30
             96      ENACTS:
             97           10-5-102.5 , Utah Code Annotated 1953
             98           17B-1-122 , Utah Code Annotated 1953
             99     
             100      Be it enacted by the Legislature of the state of Utah:
             101          Section 1. Section 10-5-102.5 is enacted to read:
             102          10-5-102.5. Definitions.
             103          (1) "Enterprise fund" means a fund as defined by the Governmental Accounting
             104      Standards Board that is used by a municipality to report an activity for which a fee is charged to
             105      users for goods or services.
             106          (2) "Utility" means a utility owned by a town, in whole or in part, that provides
             107      electricity, gas, water, or sewer, or any combination of them.
             108          Section 2. Section 10-5-107 is amended to read:
             109           10-5-107. Tentative budgets required for public inspection -- Contents --
             110      Adoption of tentative budget.
             111          (1) (a) On or before the first regularly scheduled town council meeting of May, the
             112      mayor shall:
             113          (i) prepare for the ensuing year, on forms provided by the state auditor, a tentative
             114      budget for each fund for which a budget is required;
             115          (ii) make the tentative budget available for public inspection; and
             116          (iii) submit the tentative budget to the town council.
             117          (b) The tentative budget of each fund shall set forth in tabular form:
             118          (i) actual revenues and expenditures in the last completed fiscal year;


             119          (ii) estimated total revenues and expenditures for the current fiscal year; and
             120          (iii) the mayor's estimates of revenues and expenditures for the budget year.
             121          (2) (a) The mayor shall:
             122          (i) estimate the amount of revenue available to serve the needs of each fund;
             123          (ii) estimate the portion to be derived from all sources other than general property
             124      taxes; and
             125          (iii) estimate the portion that shall be derived from general property taxes.
             126          (b) From the estimates required by Subsection (2)(a), the mayor shall compute and
             127      disclose in the budget the lowest rate of property tax levy that will raise the required amount of
             128      revenue, calculating the levy on the latest taxable value.
             129          (3) A governing body may not spend money deposited in an enterprise fund for a good,
             130      service, project, venture, or other purpose that is not directly related to the goods or services
             131      provided by the enterprise for which the enterprise fund was created, unless the governing
             132      body:
             133          (a) transfers the money from the enterprise fund to another fund; and
             134          (b) complies with the hearing and notice requirements of Subsections (6)(a), (b), and
             135      (c).
             136          [(3)] (4) (a) Before the public hearing required under Section 10-5-108 , the town
             137      council:
             138          (i) shall review, consider, and tentatively adopt the tentative budget in any regular
             139      meeting or special meeting called for that purpose; and
             140          (ii) may amend or revise the tentative budget.
             141          (b) At the meeting at which the town council adopts the tentative budget, the council
             142      shall establish the time and place of the public hearing required under Section 10-5-108 .
             143          [(4) (a) Except as provided in Subsection (4)(d), if]
             144          (5) (a) If a town council includes in a tentative budget, or an amendment to a budget,
             145      allocations or transfers from [a utility] an enterprise fund to another fund that are not
             146      reasonable allocations of costs between the [utility] enterprise fund and the other fund, the
             147      governing body shall:
             148          (i) hold a public hearing;
             149          (ii) prepare a written notice of the date, time, place, and purpose of the hearing as


             150      described in Subsection [(4)] (5)(b); and
             151          (iii) subject to Subsection [(4)] (5)(c), mail the notice to each [utility] enterprise fund
             152      customer at least seven days before the day of the hearing.
             153          (b) The purpose portion of the written notice shall identify:
             154          (i) the [utility] enterprise fund from which money is being allocated or transferred;
             155          (ii) the amount being allocated or transferred; and
             156          (iii) the fund to which the money is being allocated or transferred.
             157          (c) The town council:
             158          (i) may print the written notice required under Subsection [(4)] (5)(a)(ii) on the [utility]
             159      enterprise fund customer's bill; and
             160          (ii) shall include the written notice required under Subsection [(4)] (5)(a)(ii) as separate
             161      notification mailed or transmitted with the [utility] enterprise fund customer's bill.
             162          [(d) The notice and hearing requirements in this Subsection (4) are not required for an
             163      allocation or a transfer included in an original budget or in a subsequent budget amendment
             164      previously approved by the town council for the current fiscal year.]
             165          Section 3. Section 10-6-106 is amended to read:
             166           10-6-106. Definitions.
             167          As used in this chapter:
             168          (1) "Account group" is defined by generally accepted accounting principles as reflected
             169      in the Uniform Accounting Manual for Utah Cities.
             170          (2) "Appropriation" means an allocation of money by the governing body for a specific
             171      purpose.
             172          (3) (a) "Budget" means a plan of financial operations for a fiscal period which
             173      embodies estimates of proposed expenditures for given purposes and the proposed means of
             174      financing them.
             175          (b) "Budget" may refer to the budget of a particular fund for which a budget is required
             176      by law or it may refer collectively to the budgets for all such funds.
             177          (4) "Budgetary fund" means a fund for which a budget is required.
             178          (5) "Budget officer" means the city auditor in a city of the first and second class, the
             179      mayor or some person appointed by the mayor with the approval of the city council in a city of
             180      the third, fourth, or fifth class, the mayor in the council-mayor optional form of government, or


             181      the person designated by the charter in a charter city.
             182          (6) "Budget period" means the fiscal period for which a budget is prepared.
             183          (7) "Check" means an order in a specific amount drawn upon a depository by an
             184      authorized officer of a city.
             185          (8) "Current period" means the fiscal period in which a budget is prepared and adopted,
             186      i.e., the fiscal period next preceding the budget period.
             187          (9) "Department" means any functional unit within a fund that carries on a specific
             188      activity, such as a fire or police department within a General Fund.
             189          (10) "Encumbrance system" means a method of budgetary control in which part of an
             190      appropriation is reserved to cover a specific expenditure by charging obligations, such as
             191      purchase orders, contracts, or salary commitments to an appropriation account at their time of
             192      origin. Such obligations cease to be encumbrances when paid or when the actual liability is
             193      entered on the city's books of account.
             194          (11) "Enterprise fund" means a fund as defined by the Governmental Accounting
             195      Standards Board that is used by a municipality to report an activity for which a fee is charged to
             196      users for goods or services.
             197          [(11)] (12) "Estimated revenue" means the amount of revenue estimated to be received
             198      from all sources during the budget period in each fund for which a budget is being prepared.
             199          [(12)] (13) "Financial officer" means the mayor in the council-mayor optional form of
             200      government or the city official as authorized by Section 10-6-158 .
             201          [(13)] (14) "Fiscal period" means the annual or biennial period for accounting for fiscal
             202      operations in each city.
             203          [(14)] (15) "Fund" is as defined by generally accepted accounting principles as
             204      reflected in the Uniform Accounting Manual for Utah Cities.
             205          [(15)] (16) "Fund balance," "retained earnings," and "deficit" have the meanings
             206      commonly accorded such terms under generally accepted accounting principles as reflected in
             207      the Uniform Accounting Manual for Utah Cities.
             208          [(16)] (17) "Governing body" means a city council, or city commission, as the case
             209      may be, but the authority to make any appointment to any position created by this chapter is
             210      vested in the mayor in the council-mayor optional form of government.
             211          [(17)] (18) "Interfund loan" means a loan of cash from one fund to another, subject to


             212      future repayment and does not constitute an expenditure or a use of retained earnings or fund
             213      balance of the lending fund or revenue to the borrowing fund.
             214          [(18)] (19) "Last completed fiscal period" means the fiscal period next preceding the
             215      current period.
             216          [(19)] (20) (a) "Public funds" means any money or payment collected or received by an
             217      officer or employee of the city acting in an official capacity and includes money or payment to
             218      the officer or employee for services or goods provided by the city, or the officer or employee
             219      while acting within the scope of employment or duty. [Public funds do]
             220          (b) "Public funds" does not include money or payments collected or received by an
             221      officer or employee of a city for charitable purposes if the mayor or city council has consented
             222      to the officer's or employee's participation in soliciting contributions for a charity.
             223          [(20)] (21) "Special fund" means any fund other than the General Fund.
             224          (22) "Utility" means a utility owned by a city, in whole or in part, that provides
             225      electricity, gas, water, or sewer, or any combination of them.
             226          [(21)] (23) "Warrant" means an order drawn upon the city treasurer, in the absence of
             227      sufficient money in the city's depository, by an authorized officer of a city for the purpose of
             228      paying a specified amount out of the city treasury to the person named or to the bearer as
             229      money becomes available.
             230          Section 4. Section 10-6-135 is amended to read:
             231           10-6-135. Operating and capital budgets.
             232          (1) (a) As used in this section, "operating and capital budget" means a plan of financial
             233      operation for an enterprise fund or other required special fund that includes estimates of
             234      operating resources, expenses, and other outlays for a fiscal period.
             235          (b) Except as otherwise expressly provided, any reference to "budget" or "budgets" and
             236      the procedures and controls relating to them in other sections of this chapter do not apply or
             237      refer to the operating and capital budgets described in this section.
             238          (2) At or before the time the governing body adopts budgets for the funds described in
             239      Section 10-6-109 , the governing body shall adopt:
             240          (a) an operating and capital budget for each enterprise fund for the ensuing fiscal
             241      period; and
             242          (b) the type of budget for other special funds as required by the Uniform Accounting


             243      Manual for Utah Cities.
             244          (3) (a) The governing body shall adopt and administer an operating and capital budget
             245      in accordance with this Subsection (3).
             246          (b) A governing body may not spend money deposited in an enterprise fund for a good,
             247      service, project, venture, or other purpose that is not directly related to the goods or services
             248      provided by the enterprise for which the enterprise fund was created, unless the governing
             249      body:
             250          (i) transfers the money from the enterprise fund to another fund; and
             251          (ii) complies with the hearing and notice requirements of Subsections (3)(g)(i), (ii), and
             252      (iii).
             253          [(b)] (c) At or before the first regularly scheduled meeting of the governing body in the
             254      last May of the current fiscal period, the budget officer shall:
             255          (i) prepare for the ensuing fiscal period and file with the governing body a tentative
             256      operating and capital budget for:
             257          (A) each enterprise fund; and
             258          (B) other required special funds;
             259          (ii) include with the tentative operating and capital budget described in Subsection
             260      (3)[(b)](d)(i) specific work programs as submitted by each department head; and
             261          (iii) include any other supporting data required by the governing body.
             262          [(c)] (d) Each city of the first or second class shall, and each city of the third, fourth, or
             263      fifth class may, submit a supplementary estimate of all capital projects which a department
             264      head believes should be undertaken within the three next succeeding fiscal periods.
             265          [(d)] (e) (i) Subject to Subsection (3)[(d)](e)(ii), the budget officer shall prepare all
             266      estimates after review and consultation with each department head described in Subsection
             267      (3)[(c)](d).
             268          (ii) After complying with Subsection (3)[(d)](e)(i), the budget officer may revise any
             269      departmental estimate before it is filed with the governing body.
             270          [(e) (i) Except as provided in Subsection (3)(e)(iv), if]
             271          (f) (i) If the governing body includes in a tentative budget or an amendment to a budget
             272      allocations or transfers from [a utility] an enterprise fund to another fund that are not
             273      reasonable allocations of costs between the [utility] enterprise fund and the other fund, the


             274      governing body shall:
             275          (A) hold a public hearing;
             276          (B) prepare a written notice of the date, time, place, and purpose of the hearing, as
             277      described in Subsection (3)[(e)](f)(ii); and
             278          (C) subject to Subsection (3)[(e)](f)(iii), mail the written notice to each [utility]
             279      enterprise fund customer at least seven days before the day of the hearing.
             280          (ii) The purpose portion of the written notice required under Subsection
             281      (3)[(e)](f)(i)(B) shall identify:
             282          (A) the [utility] enterprise fund from which money is being transferred;
             283          (B) the amount being transferred; and
             284          (C) the fund to which the money is being transferred.
             285          (iii) The governing body:
             286          (A) may print the written notice required under Subsection (3)[(e)](f)(i) on the [utility]
             287      enterprise fund customer's bill; and
             288          (B) shall include the written notice required under Subsection (3)[(e)](f)(i) as a
             289      separate notification mailed or transmitted with the [utility] enterprise fund customer's bill.
             290          [(iv) The notice and hearing requirements in this Subsection (3)(e) are not required for
             291      an allocation or a transfer included in an original budget or in a subsequent budget amendment
             292      previously approved by the governing body for the current fiscal year.]
             293          (4) (a) Each tentative budget, amendment to a budget, or budget shall be reviewed and
             294      considered by the governing body at any regular meeting or special meeting called for that
             295      purpose.
             296          (b) The governing body may make changes in the tentative budgets.
             297          (5) Budgets for enterprise or other required special funds shall comply with the public
             298      hearing requirements established in Sections 10-6-113 and 10-6-114 .
             299          (6) (a) Before the last June 30 of each fiscal period, or, in the case of a property tax
             300      increase under Sections 59-2-919 through 59-2-923 , before August 31 of the year for which a
             301      property tax increase is proposed, the governing body shall adopt an operating and capital
             302      budget for each applicable fund for the ensuing fiscal period.
             303          (b) A copy of the budget as finally adopted for each fund shall be:
             304          (i) certified by the budget officer;


             305          (ii) filed by the budget officer in the office of the city auditor or city recorder;
             306          (iii) available to the public during regular business hours; and
             307          (iv) filed with the state auditor within 30 days after the day on which the budget is
             308      adopted.
             309          (7) (a) Upon final adoption, the operating and capital budget is in effect for the budget
             310      period, subject to later amendment.
             311          (b) During the budget period the governing body may, in any regular meeting or special
             312      meeting called for that purpose, review any one or more of the operating and capital budgets
             313      for the purpose of determining if the total of any of them should be increased.
             314          (c) If the governing body decides that the budget total of one or more of the funds
             315      should be increased under Subsection (7)(b), the governing body shall follow the procedures
             316      set forth in Section 10-6-136 .
             317          (8) Expenditures from operating and capital budgets shall conform to the requirements
             318      relating to budgets specified in Sections 10-6-121 through 10-6-126 .
             319          Section 5. Section 17B-1-103 is amended to read:
             320           17B-1-103. Local district status and powers.
             321          (1) A local district:
             322          (a) is:
             323          (i) a body corporate and politic with perpetual succession;
             324          (ii) a quasi-municipal corporation; and
             325          (iii) a political subdivision of the state; and
             326          (b) may sue and be sued.
             327          (2) A local district may:
             328          (a) acquire, by any lawful means, or lease any real property, personal property, or a
             329      groundwater right necessary or convenient to the full exercise of the district's powers;
             330          (b) acquire, by any lawful means, any interest in real property, personal property, or a
             331      groundwater right necessary or convenient to the full exercise of the district's powers;
             332          (c) transfer an interest in or dispose of any property or interest described in Subsections
             333      (2)(a) and (b);
             334          (d) acquire or construct works, facilities, and improvements necessary or convenient to
             335      the full exercise of the district's powers, and operate, control, maintain, and use those works,


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


             367          (o) exercise other powers and perform other functions that are provided by law;
             368          (p) construct and maintain works and establish and maintain facilities, including works
             369      or facilities:
             370          (i) across or along any public street or highway, subject to Subsection (3) and if the
             371      district:
             372          (A) promptly restores the street or highway, as much as practicable, to its former state
             373      of usefulness; and
             374          (B) does not use the street or highway in a manner that completely or unnecessarily
             375      impairs the usefulness of it;
             376          (ii) in, upon, or over any vacant public lands that are or become the property of the
             377      state, including school and institutional trust lands, as defined in Section 53C-1-103 , if the
             378      director of the School and Institutional Trust Lands Administration, acting under Sections
             379      53C-1-102 and 53C-1-303 , consents; or
             380          (iii) across any stream of water or watercourse, subject to Section 73-3-29 ;
             381          (q) perform any act or exercise any power reasonably necessary for the efficient
             382      operation of the local district in carrying out its purposes;
             383          (r) (i) except for a local district described in Subsection (2)(r)(ii), designate an
             384      assessment area and levy an assessment on land within the assessment area, as provided in
             385      Title 11, Chapter 42, Assessment Area Act; or
             386          (ii) for a local district created to assess a groundwater right in a critical management
             387      area described in Subsection 17B-1-202 (1), designate an assessment area and levy an
             388      assessment, as provided in Title 11, Chapter 42, Assessment Area Act, on a groundwater right
             389      to facilitate a groundwater management plan;
             390          (s) contract with another political subdivision of the state to allow the other political
             391      subdivision to use the district's surplus water or capacity or have an ownership interest in the
             392      district's works or facilities, upon the terms and for the consideration, whether monetary or
             393      nonmonetary consideration or no consideration, that the district's board of trustees considers to
             394      be in the best interests of the district and the public; [and]
             395          (t) upon the terms and for the consideration, whether monetary or nonmonetary
             396      consideration or no consideration, that the district's board of trustees considers to be in the best
             397      interests of the district and the public, agree:


             398          (i) with:
             399          (A) another political subdivision of the state; or
             400          (B) a public or private owner of property:
             401          (I) on which the district has a right-of-way; or
             402          (II) adjacent to which the district owns fee title to property; and
             403          (ii) to allow the use of property:
             404          (A) owned by the district; or
             405          (B) on which the district has a right-of-way[.]; and
             406          (u) if the local district receives, as determined by the local district board of trustees,
             407      adequate monetary or nonmonetary consideration in return:
             408          (i) provide services or nonmonetary assistance to a nonprofit entity;
             409          (ii) waive fees required to be paid by a nonprofit entity; or
             410          (iii) provide monetary assistance to a nonprofit entity, whether from the local district's
             411      own funds or from funds the local district receives from the state or any other source.
             412          (3) With respect to a local district's use of a street or highway, as provided in
             413      Subsection (2)(p)(i):
             414          (a) the district shall comply with the reasonable rules and regulations of the
             415      governmental entity, whether state, county, or municipal, with jurisdiction over the street or
             416      highway, concerning:
             417          (i) an excavation and the refilling of an excavation;
             418          (ii) the relaying of pavement; and
             419          (iii) the protection of the public during a construction period; and
             420          (b) the governmental entity, whether state, county, or municipal, with jurisdiction over
             421      the street or highway:
             422          (i) may not require the district to pay a license or permit fee or file a bond; and
             423          (ii) may require the district to pay a reasonable inspection fee.
             424          (4) (a) A local district may:
             425          (i) acquire, lease, or construct and operate electrical generation, transmission, and
             426      distribution facilities, if:
             427          (A) the purpose of the facilities is to harness energy that results inherently from the
             428      district's:


             429          (I) operation of a project or facilities that the district is authorized to operate; or
             430          (II) providing a service that the district is authorized to provide;
             431          (B) the generation of electricity from the facilities is incidental to the primary
             432      operations of the district; and
             433          (C) operation of the facilities will not hinder or interfere with the primary operations of
             434      the district;
             435          (ii) (A) use electricity generated by the facilities; or
             436          (B) subject to Subsection (4)(b), sell electricity generated by the facilities to an electric
             437      utility or municipality with an existing system for distributing electricity.
             438          (b) A district may not act as a retail distributor or seller of electricity.
             439          (c) Revenue that a district receives from the sale of electricity from electrical
             440      generation facilities it owns or operates under this section may be used for any lawful district
             441      purpose, including the payment of bonds issued to pay some or all of the cost of acquiring or
             442      constructing the facilities.
             443          (5) A local district may adopt and, after adoption, alter a corporate seal.
             444          (6) (a) As used in this Subsection (6), "knife" means a cutting instrument that includes
             445      a sharpened or pointed blade.
             446          (b) The authority to regulate a knife is reserved to the state except where the
             447      Legislature specifically delegates responsibility to a local district.
             448          (c) Unless specifically authorized by the Legislature by statute, a local district may not
             449      adopt or enforce a regulation or rule pertaining to a knife.
             450          Section 6. Section 17B-1-122 is enacted to read:
             451          17B-1-122. Required multiple commodities, services, or facilities.
             452          A local district may establish reasonable rules requiring a customer who signs up for
             453      one service to receive multiple commodities, services, or facilities provided by the district
             454      under conditions or circumstances that are, as determined by the board of trustees, in the
             455      general best interest of the district's customers if:
             456          (1) the local district provides more than one commodity, service, or facility;
             457          (2) one of the commodities, services, or facilities that the district provides is electric
             458      service; and
             459          (3) the district notifies the customer in writing of:


             460          (a) the requirement to receive multiple commodities, services, or facilities;
             461          (b) the specific additional commodity, service, or facility the customer will be required
             462      to receive; and
             463          (c) any fee or levy associated with the additional commodity, service, or facility.
             464          Section 7. Section 17B-1-202 is amended to read:
             465           17B-1-202. Local district may be created -- Services that may be provided --
             466      Limitations.
             467          (1) (a) A local district may be created as provided in this part to provide within its
             468      boundaries service consisting of:
             469          (i) the operation of an airport;
             470          (ii) the operation of a cemetery;
             471          (iii) fire protection, paramedic, and emergency services, including consolidated 911
             472      and emergency dispatch services;
             473          (iv) garbage collection and disposal;
             474          (v) health care, including health department or hospital service;
             475          (vi) the operation of a library;
             476          (vii) abatement or control of mosquitos and other insects;
             477          (viii) the operation of parks or recreation facilities or services;
             478          (ix) the operation of a sewage system;
             479          (x) the construction and maintenance of a right-of-way, including:
             480          (A) a curb;
             481          (B) a gutter;
             482          (C) a sidewalk;
             483          (D) a street;
             484          (E) a road;
             485          (F) a water line;
             486          (G) a sewage line;
             487          (H) a storm drain;
             488          (I) an electricity line;
             489          (J) a communications line;
             490          (K) a natural gas line; or


             491          (L) street lighting;
             492          (xi) transportation, including public transit and providing streets and roads;
             493          (xii) the operation of a system, or one or more components of a system, for the
             494      collection, storage, retention, control, conservation, treatment, supplying, distribution, or
             495      reclamation of water, including storm, flood, sewage, irrigation, and culinary water, whether
             496      the system is operated on a wholesale or retail level or both;
             497          (xiii) in accordance with Subsection (1)(c), the acquisition or assessment of a
             498      groundwater right for the development and execution of a groundwater management plan in
             499      cooperation with and approved by the state engineer in accordance with Section 73-5-15 ;
             500          (xiv) law enforcement service;
             501          (xv) subject to Subsection (1)(b), the underground installation of an electric utility line
             502      or the conversion to underground of an existing electric utility line;
             503          (xvi) the control or abatement of earth movement or a landslide;
             504          (xvii) the operation of animal control services and facilities; or
             505          (xviii) an energy efficiency upgrade or a renewable energy system, as defined in
             506      Section 11-42-102 , in accordance with Title 11, Chapter 42, Assessment Area Act.
             507          (b) Each local district that provides the service of the underground installation of an
             508      electric utility line or the conversion to underground of an existing electric utility line shall, in
             509      installing or converting the line, provide advance notice to and coordinate with the utility that
             510      owns the line.
             511          (c) A groundwater management plan described in Subsection (1)(a)(xiii) may include
             512      the banking of groundwater rights by a local district in a critical management area as defined in
             513      Section 73-5-15 following the adoption of a groundwater management plan by the state
             514      engineer under Section 73-5-15 .
             515          (i) A local district may manage the groundwater rights it acquires under Subsection
             516      17B-1-103 (2)(a) or (b) consistent with the provisions of a groundwater management plan
             517      described in this Subsection (1)(c).
             518          (ii) A groundwater right held by a local district to satisfy the provisions of a
             519      groundwater management plan is not subject to the forfeiture provisions of Section 73-1-4 .
             520          (iii) (A) A local district may divest itself of a groundwater right subject to a
             521      determination that the groundwater right is not required to facilitate the groundwater


             522      management plan described in this Subsection (1)(c).
             523          (B) The groundwater right described in Subsection (1)(c)(iii)(A) is subject to Section
             524      73-1-4 beginning on the date of divestiture.
             525          (iv) Upon a determination by the state engineer that an area is no longer a critical
             526      management area as defined in Section 73-5-15 , a groundwater right held by the local district is
             527      subject to Section 73-1-4 .
             528          (v) A local district created in accordance with Subsection (1)(a)(xiii) to develop and
             529      execute a groundwater management plan may hold or acquire a right to surface waters that are
             530      naturally tributary to the groundwater basin subject to the groundwater management plan if the
             531      surface waters are appropriated in accordance with Title 73, Water and Irrigation, and used in
             532      accordance with Title 73, Chapter 3b, Groundwater Recharge and Recovery Act.
             533          (2) For purposes of this section:
             534          (a) "Operation" means all activities involved in providing the indicated service
             535      including acquisition and ownership of property reasonably necessary to provide the indicated
             536      service and acquisition, construction, and maintenance of facilities and equipment reasonably
             537      necessary to provide the indicated service.
             538          (b) "System" means the aggregate of interrelated components that combine together to
             539      provide the indicated service including, for a sewage system, collection and treatment.
             540          (3) (a) A local district may not be created to provide and may not after its creation
             541      provide more than four of the services listed in Subsection (1).
             542          (b) Subsection (3)(a) may not be construed to prohibit a local district from providing
             543      more than four services if, before April 30, 2007, the local district was authorized to provide
             544      those services.
             545          (4) (a) Except as provided in Subsection (4)(b), a local district may not be created to
             546      provide and may not after its creation provide to an area the same service that may already
             547      [being] be provided to that area by another political subdivision, unless the other political
             548      subdivision gives its written consent.
             549          (b) For purposes of Subsection (4)(a), a local district does not provide the same service
             550      as another political subdivision if it operates a component of a system that is different from a
             551      component operated by another political subdivision but within the same:
             552          (i) sewage system; or


             553          (ii) water system.
             554          (5) (a) Except for a local district in the creation of which an election is not required
             555      under Subsection 17B-1-214 (3)(d), the area of a local district may include all or part of the
             556      unincorporated area of one or more counties and all or part of one or more municipalities.
             557          (b) The area of a local district need not be contiguous.
             558          (6) For a local district created before May 5, 2008, the authority to provide fire
             559      protection service also includes the authority to provide:
             560          (a) paramedic service; and
             561          (b) emergency service, including hazardous materials response service.
             562          (7) A local district created before May 11, 2010, authorized to provide the construction
             563      and maintenance of curb, gutter, or sidewalk may provide a service described in Subsection
             564      (1)(a)(x) on or after May 11, 2010.
             565          (8) A local district created before May 10, 2011, authorized to provide culinary,
             566      irrigation, sewage, or storm water services may provide a service described in Subsection
             567      (1)(a)(xii) on or after May 10, 2011.
             568          (9) A local district may not be created under this chapter for two years after the date on
             569      which a local district is dissolved as provided in Section 17B-1-217 if the local district
             570      proposed for creation:
             571          (a) provides the same or a substantially similar service as the dissolved local district;
             572      and
             573          (b) is located in substantially the same area as the dissolved local district.
             574          Section 8. Section 17B-1-303 is amended to read:
             575           17B-1-303. Term of board of trustees members -- Oath of office -- Bond.
             576          (1) (a) Except as provided in Subsections (1)(b) and (c), the term of each member of a
             577      board of trustees shall begin at noon on the January 1 following the member's election or
             578      appointment.
             579          (b) The term of each member of the initial board of trustees of a newly created local
             580      district shall begin:
             581          (i) upon appointment, for an appointed member; and
             582          (ii) upon the member taking the oath of office after the canvass of the election at which
             583      the member is elected, for an elected member.


             584          (c) The term of each water conservancy district board member appointed by the
             585      governor as provided in Subsection 17B-2a-1005 (2)(c) shall [begin on the date on which the
             586      senate consents to the appointment.]:
             587          (i) begin on the later of the following:
             588          (A) the date on which the Senate consents to the appointment; or
             589          (B) the expiration date of the prior term; and
             590          (ii) end on the February 1 that is approximately four years after the date described in
             591      Subsection (1)(c)(i)(A) or (B).
             592          (2) (a) (i) Subject to Subsection (2)(a)(ii), the term of each member of a board of
             593      trustees shall be four years, except that approximately half the members of the initial board of
             594      trustees, chosen by lot, shall serve a two-year term so that the term of approximately half the
             595      board members expires every two years.
             596          (ii) (A) If the terms of members of the initial board of trustees of a newly created local
             597      district do not begin on January 1 because of application of Subsection (1)(b), the terms of
             598      those members shall be adjusted as necessary, subject to Subsection (2)(a)(ii)(B), to result in
             599      the terms of their successors complying with:
             600          (I) the requirement under Subsection (1)(a) for a term to begin on January 1 following
             601      a member's election or appointment; and
             602          (II) the requirement under Subsection (2)(a)(i) that terms be four years.
             603          (B) An adjustment under Subsection (2)(a)(ii)(A) may not add more than a year to or
             604      subtract more than a year from a member's term.
             605          (b) Each board of trustees member shall serve until a successor is duly elected or
             606      appointed and qualified, unless the member earlier is removed from office or resigns or
             607      otherwise leaves office.
             608          (c) If a member of a board of trustees no longer meets the qualifications of Subsection
             609      17B-1-302 (1), or if the member's term expires without a duly elected or appointed successor:
             610          (i) the member's position is considered vacant, subject to Subsection (2)(c)(ii); and
             611          (ii) the member may continue to serve until a successor is duly elected or appointed
             612      and qualified.
             613          (3) (a) (i) Before entering upon the duties of office, each member of a board of trustees
             614      shall take the oath of office specified in Utah Constitution Article IV, Section 10.


             615          (ii) An oath of office may be administered by a judge, county clerk, notary public, or
             616      the local district clerk.
             617          (b) Each oath of office shall be filed with the clerk of the local district.
             618          (c) The failure of a board of trustees member to take the oath required by Subsection
             619      (3)(a) does not invalidate any official act of that member.
             620          (4) A board of trustees member is not limited in the number of terms the member may
             621      serve.
             622          (5) Except as provided in Subsection (6), each midterm vacancy in a board of trustees
             623      position shall be filled as provided in Section 20A-1-512 .
             624          (6) (a) For purposes of this Subsection (6):
             625          (i) "Appointed official" means a person who:
             626          (A) is appointed as a member of a local district board of trustees by a county or
             627      municipality entitled to appoint a member to the board; and
             628          (B) holds an elected position with the appointing county or municipality.
             629          (ii) "Appointing entity" means the county or municipality that appointed the appointed
             630      official to the board of trustees.
             631          (b) The board of trustees shall declare a midterm vacancy for the board position held
             632      by an appointed official if:
             633          (i) during the appointed official's term on the board of trustees, the appointed official
             634      ceases to hold the elected position with the appointing entity; and
             635          (ii) the appointing entity submits a written request to the board to declare the vacancy.
             636          (c) Upon the board's declaring a midterm vacancy under Subsection (6)(b), the
             637      appointing entity shall appoint another person to fill the remaining unexpired term on the board
             638      of trustees.
             639          (7) (a) Each member of a board of trustees shall give a bond for the faithful
             640      performance of the member's duties, in the amount and with the sureties prescribed by the
             641      board of trustees.
             642          (b) The local district shall pay the cost of each bond required under Subsection (7)(a).
             643          Section 9. Section 17B-1-304 is amended to read:
             644           17B-1-304. Appointment procedures for appointed members.
             645          (1) The appointing authority may, by resolution, appoint persons to serve as members


             646      of a local district board by following the procedures established by this section.
             647          (2) (a) In any calendar year when appointment of a new local district board member is
             648      required, the appointing authority shall prepare a notice of vacancy that contains:
             649          (i) the positions that are vacant that shall be filled by appointment;
             650          (ii) the qualifications required to be appointed to those positions;
             651          (iii) the procedures for appointment that the governing body will follow in making
             652      those appointments; and
             653          (iv) the person to be contacted and any deadlines that a person shall meet who wishes
             654      to be considered for appointment to those positions.
             655          (b) The appointing authority shall:
             656          (i) post the notice of vacancy in four public places within the local district at least one
             657      month before the deadline for accepting nominees for appointment; and
             658          (ii) (A) publish the notice of vacancy:
             659          (I) in a daily newspaper of general circulation within the local district for five
             660      consecutive days before the deadline for accepting nominees for appointment; or
             661          (II) in a local weekly newspaper circulated within the local district in the week before
             662      the deadline for accepting nominees for appointment; and
             663          (B) in accordance with Section 45-1-101 for five days before the deadline for accepting
             664      nominees for appointment.
             665          (c) The appointing authority may bill the local district for the cost of preparing,
             666      printing, and publishing the notice.
             667          (3) (a) Not sooner than two months after the appointing authority is notified of the
             668      vacancy, the appointing authority shall select a person to fill the vacancy from the applicants
             669      who meet the qualifications established by law.
             670          (b) The appointing authority shall:
             671          (i) comply with Title 52, Chapter 4, Open and Public Meetings Act, in making the
             672      appointment;
             673          (ii) allow any interested persons to be heard; and
             674          (iii) adopt a resolution appointing a person to the local district board.
             675          (c) If no candidate for appointment to fill the vacancy receives a majority vote of the
             676      appointing authority, the appointing authority shall select the appointee from the two top


             677      candidates by lot.
             678          (4) Persons appointed to serve as members of the local district board serve four-year
             679      terms, but may be removed for cause at any time after a hearing by two-thirds vote of the
             680      appointing body.
             681          (5) (a) At the end of each board member's term, the position is considered vacant and
             682      the appointing authority may either reappoint the old board member or appoint a new member
             683      after following the appointment procedures established in this section.
             684          (b) Notwithstanding Subsection (5)(a), a board member may continue to serve until a
             685      successor is duly elected or appointed and qualified in accordance with Subsection
             686      17B-1-303 (2)(b).
             687          (6) Notwithstanding any other provision of this section, if the appointing authority
             688      appoints one of its own members[, it] and that member meets all applicable statutory board
             689      member qualifications, the appointing authority need not comply with Subsection (2) or (3).
             690          Section 10. Section 17B-1-306 is amended to read:
             691           17B-1-306. Local district board -- Election procedures.
             692          (1) Except as provided in Subsection (11), each elected board member shall be selected
             693      as provided in this section.
             694          (2) (a) Each election of a local district board member shall be held:
             695          (i) at the same time as the municipal general election; and
             696          (ii) at polling places designated by the [county clerk] local district board in
             697      consultation with the [local district] county clerk for each county in which the local district is
             698      located, which polling places shall coincide with municipal general election polling places
             699      whenever feasible.
             700          (b) The local district board, in consultation with the county clerk, may consolidate two
             701      or more polling places to enable voters from more than one district to vote at one consolidated
             702      polling place.
             703          (c) (i) Subject to Subsections (4)(f) and (g), the number of polling places under
             704      Subsection (2)(a)(ii) in an election of board members of an irrigation district shall be one
             705      polling place per division of the district, designated by the district board.
             706          (ii) Each polling place designated by an irrigation district board under Subsection
             707      (2)(c)(i) shall coincide with a polling place designated by the county clerk under Subsection


             708      (2)(a)(ii).
             709          (3) (a) The clerk of each local district with a board member position to be filled at the
             710      next municipal general election shall provide notice of:
             711          (i) each elective position of the local district to be filled at the next municipal general
             712      election;
             713          (ii) the constitutional and statutory qualifications for each position; and
             714          (iii) the dates and times for filing a declaration of candidacy.
             715          (b) The notice required under Subsection (3)(a) shall be:
             716          (i) posted in at least five public places within the local district at least 10 days before
             717      the first day for filing a declaration of candidacy; or
             718          (ii) (A) published in a newspaper of general circulation within the local district at least
             719      three but no more than 10 days before the first day for filing a declaration of candidacy; and
             720          (B) published, in accordance with Section 45-1-101 , for 10 days before the first day for
             721      filing a declaration of candidacy.
             722          (4) (a) To become a candidate for an elective local district board position, the
             723      prospective candidate shall file a declaration of candidacy in person with the local district,
             724      during office hours and not later than the close of normal office hours between June 1 and June
             725      7 of any odd-numbered year.
             726          (b) When June 7 is a Saturday, Sunday, or holiday, the filing time shall be extended
             727      until the close of normal office hours on the following regular business day.
             728          (c) (i) Before the filing officer may accept any declaration of candidacy, the filing
             729      officer shall:
             730          (A) read to the prospective candidate the constitutional and statutory qualification
             731      requirements for the office that the candidate is seeking; and
             732          (B) require the candidate to state whether or not the candidate meets those
             733      requirements.
             734          (ii) If the prospective candidate does not meet the qualification requirements for the
             735      office, the filing officer may not accept the declaration of candidacy.
             736          (iii) If it appears that the prospective candidate meets the requirements of candidacy,
             737      the filing officer shall accept the declaration of candidacy.
             738          (d) The declaration of candidacy shall substantially comply with the following form:


             739          "I, (print name) ____________, being first duly sworn, say that I reside at (Street)
             740      ____________, City of ________________, County of ________________, State of Utah,
             741      (Zip Code) ______, (Telephone Number, if any)____________; that I meet the qualifications
             742      for the office of board of trustees member for _______________________ (state the name of
             743      the local district); that I am a candidate for that office to be voted upon at the next election, and
             744      I hereby request that my name be printed upon the official ballot for that election.
             745          (Signed) _________________________________________
             746          Subscribed and sworn to (or affirmed) before me by ____________ on this ______ day
             747      of ____________, ____.
             748          (Signed) ________________________
             749              (Clerk or Notary Public)"
             750          (e) Each person wishing to become a valid write-in candidate for an elective local
             751      district board position is governed by Section 20A-9-601 .
             752          (f) If at least one person does not file a declaration of candidacy as required by this
             753      section, a person shall be appointed to fill that board position by following the procedures and
             754      requirements for appointment established in Section 20A-1-512 .
             755          (g) If only one candidate files a declaration of candidacy and there is no write-in
             756      candidate who complies with Section 20A-9-601 , the board, in accordance with Section
             757      20A-1-206 , may:
             758          (i) consider the candidate to be elected to the position; and
             759          (ii) cancel the election.
             760          (5) (a) A primary election may be held if:
             761          (i) the election is authorized by the local district board; and
             762          (ii) the number of candidates for a particular local board position or office exceeds
             763      twice the number of persons needed to fill that position or office.
             764          (b) The primary election shall be conducted:
             765          (i) on the same date as the municipal primary election, as provided for in Section
             766      20A-1-201.5 ; and
             767          (ii) according to the procedures for municipal primary elections provided under Title
             768      20A, Election Code.
             769          (6) (a) Except as provided in Subsection (6)(c), the local district clerk shall certify the


             770      candidate names to the clerk of each county in which the local district is located no later than
             771      June 12 of the municipal election year.
             772          (b) (i) Except as provided in Subsection (6)(c) and in accordance with Section
             773      20A-6-305 , the clerk of each county in which the local district is located and the local district
             774      clerk shall coordinate the placement of the name of each candidate for local district office in
             775      the nonpartisan section of the municipal general election ballot with the municipal election
             776      clerk.
             777          (ii) If consolidation of the local district election ballot with the municipal general
             778      election ballot is not feasible, the local district board of trustees, in consultation with the county
             779      clerk, shall provide for a separate local district election ballot to be administered by poll
             780      workers at polling locations designated under Subsection (2).
             781          (c) (i) Subsections (6)(a) and (b) do not apply to an election of a member of the board
             782      of an irrigation district established under Chapter 2a, Part 5, Irrigation District Act.
             783          (ii) (A) Subject to Subsection (6)(c)(ii)(B), the board of each irrigation district shall
             784      prescribe the form of the ballot for each board member election.
             785          (B) Each ballot for an election of an irrigation district board member shall be in a
             786      nonpartisan format.
             787          (C) The name of each candidate shall be placed on the ballot in the order specified
             788      under Section 20A-6-305 .
             789          (7) (a) Each voter at an election for a board of trustees member of a local district shall:
             790          (i) be a registered voter within the district, except for an election of:
             791          (A) an irrigation district board of trustees member; or
             792          (B) a basic local district board of trustees member who is elected by property owners;
             793      and
             794          (ii) meet the requirements to vote established by the district.
             795          (b) Each voter may vote for as many candidates as there are offices to be filled.
             796          (c) The candidates who receive the highest number of votes are elected.
             797          (8) Except as otherwise provided by this section, the election of local district board
             798      members is governed by Title 20A, Election Code.
             799          (9) (a) A person elected to serve on a local district board shall serve a four-year term,
             800      beginning at noon on the January 1 after the person's election.


             801          (b) A person elected shall be sworn in as soon as practical after January 1.
             802          (10) (a) Except as provided in Subsection (10)(b), each local district shall reimburse
             803      the county or municipality holding an election under this section for the costs of the election
             804      attributable to that local district.
             805          (b) Each irrigation district shall bear its own costs of each election it holds under this
             806      section.
             807          (11) This section does not apply to an improvement district that provides electric or gas
             808      service.
             809          (12) Except as provided in Subsection 20A-3-605 (1)(b), the provisions of Title 20A,
             810      Chapter 3, Part 6, Early Voting, do not apply to an election under this section.
             811          Section 11. Section 17B-1-306.5 is amended to read:
             812           17B-1-306.5. Dividing a local district into divisions.
             813          (1) Subject to Subsection [(2)] (3), the board of trustees of a local district that has
             814      elected board members may, upon a vote of two-thirds of the members of the board, divide the
             815      local district, or the portion of the local district represented by elected board of trustees
             816      members, into divisions so that some or all of the elected members of the board of trustees may
             817      be elected by division rather than at large.
             818          (2) Subject to Subsection (3), the appointing authority of a local district that has
             819      appointed board members may, upon a vote of two-thirds of the members of the appointing
             820      authority, divide the local district, or the portion of the local district represented by appointed
             821      board members, into divisions so that some or all of the appointed members of the board of
             822      trustees may be appointed by division rather than at large.
             823          [(2)] (3) Before dividing a local district into divisions [under Subsection (1)] or before
             824      changing the boundaries of divisions already established, the board of trustees under
             825      Subsection (1), or the appointing authority, under Subsection (2), shall:
             826          (a) prepare a proposal that describes the boundaries of the proposed divisions; and
             827          (b) hold a public hearing at which any interested person may appear and speak for or
             828      against the proposal.
             829          [(3)] (4) (a) The board of trustees or the appointing authority shall review the division
             830      boundaries at least every 10 years.
             831          (b) Except for changes in the divisions necessitated by annexations to or withdrawals


             832      from the local district, the boundaries of divisions established under Subsection (1) or (2) may
             833      not be changed more often than every five years.
             834          (c) Changes to the boundaries of divisions already established under Subsection (1) or
             835      (2) are not subject to the two-thirds vote requirement of Subsection (1) or (2).
             836          Section 12. Section 17B-1-511 is amended to read:
             837           17B-1-511. Continuation of tax levy after withdrawal to pay for proportionate
             838      share of district bonds.
             839          (1) Other than as provided in Subsection (2), and unless an escrow trust fund is
             840      established and funded pursuant to Subsection 17B-1-510 (5)(j), property within the withdrawn
             841      area shall continue after withdrawal to be taxable by the local district:
             842          (a) for the purpose of paying the withdrawn area's just proportion of the local district's
             843      general obligation bonds or lease obligations payable from property taxes with respect to lease
             844      revenue bonds issued by a local building authority on behalf of the local district, other than
             845      those bonds treated as revenue bonds under Subsection 17B-1-510 (5)(i), until the bonded
             846      indebtedness has been satisfied; and
             847          (b) to the extent and for the years necessary to generate sufficient revenue that, when
             848      combined with the revenues from the district remaining after withdrawal, is sufficient to
             849      provide for the payment of principal and interest on the district's general obligation bonds that
             850      are treated as revenue bonds under Subsection 17B-1-510 (5)(i).
             851          (2) For a local district funded predominately by revenues other than property taxes,
             852      service charges, or assessments based upon an allotment of acre-feet of water, property within
             853      the withdrawn area shall continue to be taxable by the local district for purposes of paying the
             854      withdrawn area's proportionate share of bonded indebtedness or judgments against the local
             855      district incurred prior to the date the petition was filed.
             856          (3) Except as provided in Subsections (1) and (2), upon withdrawal, the withdrawing
             857      area is relieved of all other taxes, assessments, and charges levied by the district, including
             858      taxes and charges for the payment of revenue bonds and maintenance and operation cost of the
             859      local district.
             860          Section 13. Section 17B-1-609 is amended to read:
             861           17B-1-609. Hearing to consider adoption -- Notice.
             862          (1) At the meeting at which the tentative budget is adopted, the board of trustees shall:


             863          (a) establish the time and place of a public hearing to consider its adoption; and
             864          (b) except as provided in Subsection (5), order that notice of the hearing:
             865          (i) (A) be published at least seven days before the hearing in at least one issue of a
             866      newspaper of general circulation published in the county or counties in which the district is
             867      located; or
             868          (B) if no newspaper is published, be posted in three public places within the district;
             869      and
             870          (ii) be published at least seven days before the hearing on the Utah Public Notice
             871      Website created in Section 63F-1-701 .
             872          (2) If the budget hearing is held in conjunction with a tax increase hearing, the notice
             873      required in Subsection (1)(b):
             874          (a) may be combined with the notice required under Section 59-2-919 ; and
             875          (b) shall be published in accordance with the advertisement provisions of Section
             876      59-2-919 .
             877          (3) Proof that notice was given in accordance with Subsection (1)(b) [or], (2), or (5) is
             878      prima face evidence that notice was properly given.
             879          (4) If a notice required under Subsection (1)(b) [or], (2), or (5) is not challenged within
             880      30 days after the day on which the hearing is held, the notice is adequate and proper.
             881          (5) A board of trustees of a local district with an annual operating budget of less than
             882      $250,000 may satisfy the notice requirements in Subsection (1)(b) by:
             883          (a) mailing a written notice, postage prepaid, to each voter in the local district or
             884      special service district; and
             885          (b) posting the notice in three public places within the district.
             886          Section 14. Section 17B-1-641 is amended to read:
             887           17B-1-641. Local district may expand uniform procedures -- Limitation.
             888          (1) Subject to Subsection (2), a local district may expand the uniform accounting,
             889      budgeting, and reporting procedure prescribed in the Uniform Accounting Manual for Local
             890      Districts prepared by the state auditor under Subsection 67-3-1 [(13)](14), to better serve the
             891      needs of the district.
             892          (2) A local district may not deviate from or alter the basic prescribed classification
             893      systems for the identity of funds and accounts set forth in the Uniform Accounting Manual for


             894      Local Districts.
             895          Section 15. Section 17B-1-901 is amended to read:
             896           17B-1-901. Providing and billing for multiple commodities, services, or facilities
             897      -- Suspending service to a delinquent customer.
             898          (1) If a local district provides more than one commodity, service, or facility, the district
             899      may bill for the fees and charges for all commodities, services, and facilities in a single bill.
             900          (2) [A] Regardless of the number of commodities, services, or facilities furnished by a
             901      local district, the local district may suspend furnishing [a] any commodity, service, or facility to
             902      a customer if the customer fails to pay all fees and charges when due.
             903          Section 16. Section 17B-2a-404 is amended to read:
             904           17B-2a-404. Improvement district board of trustees.
             905          (1) As used in this section:
             906          (a) "County district" means an improvement district that does not include within its
             907      boundaries any territory of a municipality.
             908          (b) "County member" means a member of a board of trustees of a county district.
             909          (c) "Electric district" means an improvement district that was created for the purpose of
             910      providing electric service.
             911          (d) "Included municipality" means a municipality whose boundaries are entirely
             912      contained within but do not coincide with the boundaries of an improvement district.
             913          (e) "Municipal district" means an improvement district whose boundaries coincide
             914      with the boundaries of a single municipality.
             915          (f) "Regular district" means an improvement district that is not a county district,
             916      electric district, or municipal district.
             917          (g) "Remaining area" means the area of a regular district that:
             918          (i) is outside the boundaries of an included municipality; and
             919          (ii) includes the area of an included municipality whose legislative body elects, under
             920      Subsection (4)(a)(ii), not to appoint a member to the board of trustees of the regular district.
             921          (h) "Remaining area member" means a member of a board of trustees of a regular
             922      district who is appointed, or, if applicable, elected to represent the remaining area of the
             923      district.
             924          (2) The legislative body of the municipality included within a municipal district may:


             925          (a) elect, at the time of the creation of the district, to be the board of trustees of the
             926      district; and
             927          (b) adopt at any time a resolution providing for:
             928          (i) the election of board of trustees members, as provided in Section 17B-1-306 ; or
             929          (ii) the appointment of board of trustees members, as provided in Section 17B-1-304 .
             930          (3) The legislative body of a county whose unincorporated area is partly or completely
             931      within a county district may:
             932          (a) elect, at the time of the creation of the district, to be the board of trustees of the
             933      district; and
             934          (b) adopt at any time a resolution providing for:
             935          (i) the election of board of trustees members, as provided in Section 17B-1-306 ; or
             936          (ii) except as provided in Subsection (4), the appointment of board of trustees
             937      members, as provided in Section 17B-1-304 .
             938          (4) Subject to Subsection (6)(d), the legislative body of a county may not adopt a
             939      resolution providing for the appointment of board of trustees members as provided in
             940      Subsection (3)(b)(ii) at any time after the county district is governed by an elected board of
             941      trustees unless:
             942          (a) the elected board has ceased to function;
             943          (b) the terms of all of the elected board members have expired without the board
             944      having called an election; or
             945          (c) the elected board of trustees unanimously adopts a resolution approving the change
             946      from an elected to an appointed board.
             947          [(4)] (5) (a) (i) Except as provided in Subsection [(4)] (5)(a)(ii), the legislative body of
             948      each included municipality shall each appoint one member to the board of trustees of a regular
             949      district.
             950          (ii) The legislative body of an included municipality may elect not to appoint a member
             951      to the board under Subsection [(4)] (5)(a)(i).
             952          (b) Except as provided in Subsection [(5)] (6), the legislative body of each county
             953      whose boundaries include a remaining area shall appoint all other members to the board of
             954      trustees of a regular district.
             955          [(5)] (6) Notwithstanding Subsection (3), each remaining area member of a regular


             956      district and each county member of a county district shall be elected, as provided in Section
             957      17B-1-306 , if:
             958          (a) the petition or resolution initiating the creation of the district provides for remaining
             959      area or county members to be elected;
             960          (b) the district holds an election to approve the district's issuance of bonds;
             961          (c) for a regular district, an included municipality elects, under Subsection [(4)]
             962      (5)(a)(ii), not to appoint a member to the board of trustees; or
             963          (d) (i) at least 90 days before the municipal general election, a petition is filed with the
             964      district's board of trustees requesting remaining area members or county members, as the case
             965      may be, to be elected; and
             966          (ii) the petition is signed by registered voters within the remaining area or county
             967      district, as the case may be, equal in number to at least 10% of the number of registered voters
             968      within the remaining area or county district, respectively, who voted in the last gubernatorial
             969      election.
             970          [(6)] (7) Subject to Section 17B-1-302 , the number of members of a board of trustees
             971      of a regular district shall be:
             972          (a) the number of included municipalities within the district, if:
             973          (i) the number is an odd number; and
             974          (ii) the district does not include a remaining area;
             975          (b) the number of included municipalities plus one, if the number of included
             976      municipalities within the district is even; and
             977          (c) the number of included municipalities plus two, if:
             978          (i) the number of included municipalities is odd; and
             979          (ii) the district includes a remaining area.
             980          [(7)] (8) (a) Except as provided in Subsection [(7)] (8)(b), each remaining area member
             981      of the board of trustees of a regular district shall reside within the remaining area.
             982          (b) Notwithstanding Subsection [(7)] (8)(a) and subject to Subsection [(7)] (8)(c), each
             983      remaining area member shall be chosen from the district at large if:
             984          (i) the population of the remaining area is less than 5% of the total district population;
             985      or
             986          (ii) (A) the population of the remaining area is less than 50% of the total district


             987      population; and
             988          (B) the majority of the members of the board of trustees are remaining area members.
             989          (c) Application of Subsection [(7)] (8)(b) may not prematurely shorten the term of any
             990      remaining area member serving the remaining area member's elected or appointed term on May
             991      11, 2010.
             992          [(8)] (9) If the election of remaining area or county members of the board of trustees is
             993      required because of a bond election, as provided in Subsection [(5)] (9)(b):
             994          (a) a person may file a declaration of candidacy if:
             995          (i) the person resides within:
             996          (A) the remaining area, for a regular district; or
             997          (B) the county district, for a county district; and
             998          (ii) otherwise qualifies as a candidate;
             999          (b) the board of trustees shall, if required, provide a ballot separate from the bond
             1000      election ballot, containing the names of candidates and blanks in which a voter may write
             1001      additional names; and
             1002          (c) the election shall otherwise be governed by Title 20A, Election Code.
             1003          [(9)] (10) (a) (i) This Subsection [(9)] (10) applies to the board of trustees members of
             1004      an electric district.
             1005          (ii) Subsections (2) through [(8)] (9) do not apply to an electric district.
             1006          (b) The legislative body of the county in which an electric district is located may
             1007      appoint the initial board of trustees of the electric district as provided in Section 17B-1-304 .
             1008          (c) After the initial board of trustees is appointed as provided in Subsection [(9)]
             1009      (10)(b), each member of the board of trustees of an electric district shall be elected by persons
             1010      using electricity from and within the district.
             1011          (d) Each member of the board of trustees of an electric district shall be a user of
             1012      electricity from the district and, if applicable, the division of the district from which elected.
             1013          (e) The board of trustees of an electric district may be elected from geographic
             1014      divisions within the district.
             1015          (f) A municipality within an electric district is not entitled to automatic representation
             1016      on the board of trustees.
             1017          Section 17. Section 17B-2a-703 is amended to read:


             1018           17B-2a-703. Additional mosquito abatement district powers.
             1019          In addition to the powers conferred on a mosquito abatement district under Section
             1020      17B-1-103 , a mosquito abatement district may:
             1021          (1) take all necessary and proper steps for the extermination of mosquitos, flies,
             1022      crickets, grasshoppers, and other insects:
             1023          (a) within the district; or
             1024          (b) outside the district, if lands inside the district are benefitted;
             1025          (2) abate as nuisances all stagnant pools of water and other breeding places for
             1026      mosquitos, flies, crickets, grasshoppers, or other insects anywhere inside or outside the state
             1027      from which mosquitos migrate into the district;
             1028          (3) enter upon territory referred to in Subsections (1) and (2) in order to inspect and
             1029      examine the territory and to remove from the territory, without notice, stagnant water or other
             1030      breeding places for mosquitos, flies, crickets, grasshoppers, or other insects;
             1031          (4) issue bonds as provided in and subject to Chapter 1, Part 11, Local District Bonds,
             1032      to carry out the purposes of the district;
             1033          (5) make a contract to indemnify or compensate an owner of land or other property for
             1034      injury or damage necessarily caused by the exercise of district powers or arising out of the use,
             1035      taking, or damage of property for a district purpose; and
             1036          (6) establish a reserve fund, not to exceed the greater of 25% of the district's annual
             1037      operating budget [and] or $50,000, to pay for extraordinary abatement measures, including a
             1038      vector-borne public health emergency.
             1039          Section 18. Section 17B-2a-804 is amended to read:
             1040           17B-2a-804. Additional public transit district powers.
             1041          (1) In addition to the powers conferred on a public transit district under Section
             1042      17B-1-103 , a public transit district may:
             1043          (a) provide a public transit system for the transportation of passengers and their
             1044      incidental baggage;
             1045          (b) notwithstanding Subsection 17B-1-103 (2)(g) and subject to Section 17B-2a-817 ,
             1046      levy and collect property taxes only for the purpose of paying:
             1047          (i) principal and interest of bonded indebtedness of the public transit district; or
             1048          (ii) a final judgment against the public transit district if:


             1049          (A) the amount of the judgment exceeds the amount of any collectable insurance or
             1050      indemnity policy; and
             1051          (B) the district is required by a final court order to levy a tax to pay the judgment;
             1052          (c) insure against:
             1053          (i) loss of revenues from damage to or destruction of some or all of a public transit
             1054      system from any cause;
             1055          (ii) public liability;
             1056          (iii) property damage; or
             1057          (iv) any other type of event, act, or omission;
             1058          (d) acquire, contract for, lease, construct, own, operate, control, or use:
             1059          (i) a right-of-way, rail line, monorail, bus line, station, platform, switchyard, terminal,
             1060      parking lot, or any other facility necessary or convenient for public transit service; or
             1061          (ii) any structure necessary for access by persons and vehicles;
             1062          (e) (i) hire, lease, or contract for the supplying or management of a facility, operation,
             1063      equipment, service, employee, or management staff of an operator; and
             1064          (ii) provide for a sublease or subcontract by the operator upon terms that are in the
             1065      public interest;
             1066          (f) operate feeder bus lines and other feeder or ridesharing services as necessary;
             1067          (g) accept a grant, contribution, or loan, directly through the sale of securities or
             1068      equipment trust certificates or otherwise, from the United States, or from a department,
             1069      instrumentality, or agency of the United States[, to:];
             1070          [(i) establish, finance, participate as a limited partner or member in a development with
             1071      limited liabilities in accordance with Subsection (1)(l), construct, improve, maintain, or operate
             1072      transit facilities, equipment, and transit-oriented developments or transit-supportive
             1073      developments; or]
             1074          [(ii)] (h) study and plan transit facilities in accordance with any legislation passed by
             1075      Congress;
             1076          [(h)] (i) cooperate with and enter into an agreement with the state or an agency of the
             1077      state or otherwise contract to finance to establish transit facilities and equipment or to study or
             1078      plan transit facilities;
             1079          [(i)] (j) issue bonds as provided in and subject to Chapter 1, Part 11, Local District


             1080      Bonds, to carry out the purposes of the district;
             1081          [(j)] (k) from bond proceeds or any other available funds, reimburse the state or an
             1082      agency of the state for an advance or contribution from the state or state agency;
             1083          [(k)] (l) do anything necessary to avail itself of any aid, assistance, or cooperation
             1084      available under federal law, including complying with labor standards and making
             1085      arrangements for employees required by the United States or a department, instrumentality, or
             1086      agency of the United States; [and]
             1087          (m) sell or lease property;
             1088          (n) assist in or operate transit-oriented or transit-supportive developments;
             1089          (o) establish, finance, participate as a limited partner or member in a development with
             1090      limited liabilities in accordance with Subsection (1)(p), construct, improve, maintain, or
             1091      operate transit facilities, equipment, and transit-oriented developments or transit-supportive
             1092      developments; and
             1093          [(l)] (p) subject to the restriction in Subsection (2), assist in a transit-oriented
             1094      development or a transit-supportive development in connection with [the] economic
             1095      development [of areas in proximity to a right-of-way, rail line, station, platform, switchyard,
             1096      terminal, or parking lot,] by:
             1097          (i) investing in a project as a limited partner or a member, with limited liabilities; or
             1098          (ii) subordinating an ownership interest in real property owned by the public transit
             1099      district.
             1100          (2) (a) A public transit district may only assist in the economic development of areas
             1101      under Subsection (1)[(l)](p):
             1102          (i) in the manner described in Subsection (1)[(l)](p)(i) or (ii); and
             1103          (ii) on no more than [five] 10 transit-oriented developments or transit-supportive
             1104      developments selected by the board of trustees.
             1105          (b) A public transit district may not invest in a transit-oriented development or
             1106      transit-supportive development as a limited partner or other limited liability entity under the
             1107      provisions of Subsection (1)[(l)](p)(i), unless the partners, developer, or other investor in the
             1108      entity, makes an equity contribution equal to no less than 25% of the appraised value of the
             1109      property to be contributed by the public transit district.
             1110          (c) A current board member of a public transit district to which the board member is


             1111      appointed may not have any interest in the transactions engaged in by the public transit district
             1112      pursuant to Subsection (1)[(l)](p)(i) or (ii), except as may be required by the board member's
             1113      fiduciary duty as a board member.
             1114          (3) A public transit district may be funded from any combination of federal, state, [or]
             1115      local, or private funds.
             1116          (4) A public transit district may not acquire property by eminent domain.
             1117          Section 19. Section 17B-2a-807 is amended to read:
             1118           17B-2a-807. Public transit district board of trustees -- Appointment --
             1119      Apportionment -- Qualifications -- Quorum -- Compensation -- Terms.
             1120          (1) (a) If 200,000 people or fewer reside within the boundaries of a public transit
             1121      district, the board of trustees shall consist of members appointed by the legislative bodies of
             1122      each municipality, county, or unincorporated area within any county on the basis of one
             1123      member for each full unit of regularly scheduled passenger routes proposed to be served by the
             1124      district in each municipality or unincorporated area within any county in the following calendar
             1125      year.
             1126          (b) For purposes of determining membership under Subsection (1)(a), the number of
             1127      service miles comprising a unit shall be determined jointly by the legislative bodies of the
             1128      municipalities or counties comprising the district.
             1129          (c) The board of trustees of a public transit district under this Subsection (1) may
             1130      include a member that is a commissioner on the Transportation Commission created in Section
             1131      72-1-301 and appointed as provided in Subsection (11), who shall serve as a nonvoting, ex
             1132      officio member.
             1133          (d) Members appointed under this Subsection (1) shall be appointed and added to the
             1134      board or omitted from the board at the time scheduled routes are changed, or as municipalities,
             1135      counties, or unincorporated areas of counties annex to or withdraw from the district using the
             1136      same appointment procedures.
             1137          (e) For purposes of appointing members under this Subsection (1), municipalities,
             1138      counties, and unincorporated areas of counties in which regularly scheduled passenger routes
             1139      proposed to be served by the district in the following calendar year is less than a full unit, as
             1140      defined in Subsection (1)(b), may combine with any other similarly situated municipality or
             1141      unincorporated area to form a whole unit and may appoint one member for each whole unit


             1142      formed.
             1143          (2) (a) Subject to Section 17B-2a-807.5 , if more than 200,000 people reside within the
             1144      boundaries of a public transit district, the board of trustees shall consist of:
             1145          (i) 11 members:
             1146          (A) appointed as described under this Subsection (2); or
             1147          (B) retained in accordance with Section 17B-2a-807.5 ;
             1148          (ii) three members appointed as described in Subsection (4);
             1149          (iii) one voting member appointed as provided in Subsection (11); and
             1150          (iv) one nonvoting member appointed as provided in Subsection (12).
             1151          (b) Except as provided in Subsections (2)(c) and (d), the board shall apportion voting
             1152      members to each county within the district using an average of:
             1153          (i) the proportion of population included in the district and residing within each county,
             1154      rounded to the nearest 1/11 of the total transit district population; and
             1155          (ii) the cumulative proportion of transit sales and use tax collected from areas included
             1156      in the district and within each county, rounded to the nearest 1/11 of the total cumulative transit
             1157      sales and use tax collected for the transit district.
             1158          (c) The board shall join an entire or partial county not apportioned a voting member
             1159      under this Subsection (2) with an adjacent county for representation. The combined
             1160      apportionment basis included in the district of both counties shall be used for the
             1161      apportionment.
             1162          (d) (i) If rounding to the nearest 1/11 of the total public transit district apportionment
             1163      basis under Subsection (2)(b) results in an apportionment of more than 11 members, the county
             1164      or combination of counties with the smallest additional fraction of a whole member proportion
             1165      shall have one less member apportioned to it.
             1166          (ii) If rounding to the nearest 1/11 of the total public transit district apportionment
             1167      basis under Subsection (2)(b) results in an apportionment of less than 11 members, the county
             1168      or combination of counties with the largest additional fraction of a whole member proportion
             1169      shall have one more member apportioned to it.
             1170          (e) If the population in the unincorporated area of a county is at least 140,000, the
             1171      county executive, with the advice and consent of the county legislative body, shall appoint one
             1172      voting member to represent the population within a county's unincorporated area.


             1173          (f) If a municipality's population is at least 160,000, the chief municipal executive,
             1174      with the advice and consent of the municipal legislative body, shall appoint one voting member
             1175      to represent the population within a municipality.
             1176          (g) (i) The number of voting members appointed from a county and municipalities
             1177      within a county under Subsections (2)(e) and (f) shall be subtracted from the county's total
             1178      voting member apportionment under this Subsection (2).
             1179          (ii) Notwithstanding Subsections (2)(l) and (10), no more than one voting member
             1180      appointed by an appointing entity may be a locally elected public official.
             1181          (h) If the entire county is within the district, the remaining voting members for the
             1182      county shall represent the county or combination of counties, if Subsection (2)(c) applies, or
             1183      the municipalities within the county.
             1184          (i) If the entire county is not within the district, and the county is not joined with
             1185      another county under Subsection (2)(c), the remaining voting members for the county shall
             1186      represent a municipality or combination of municipalities.
             1187          (j) (i) Except as provided under Subsections (2)(e) and (f), voting members
             1188      representing counties, combinations of counties if Subsection (2)(c) applies, or municipalities
             1189      within the county shall be designated and appointed by a simple majority of the chief
             1190      executives of the municipalities within the county or combinations of counties if Subsection
             1191      (2)(c) applies.
             1192          (ii) The appointments shall be made by joint written agreement of the appointing
             1193      municipalities, with the consent and approval of the county legislative body of the county that
             1194      has at least 1/11 of the district's apportionment basis.
             1195          (k) Voting members representing a municipality or combination of municipalities shall
             1196      be designated and appointed by the chief executive officer of the municipality or simple
             1197      majority of chief executive officers of municipalities with the consent of the legislative body of
             1198      the municipality or municipalities.
             1199          (l) The appointment of members shall be made without regard to partisan political
             1200      affiliation from among citizens in the community.
             1201          (m) Each member shall be a bona fide resident of the municipality, county, or
             1202      unincorporated area or areas which the member is to represent for at least six months before the
             1203      date of appointment, and shall continue in that residency to remain qualified to serve as a


             1204      member.
             1205          (n) (i) All population figures used under this section shall be derived from the most
             1206      recent official census or census estimate of the United States Bureau of the Census.
             1207          (ii) If population estimates are not available from the United States Bureau of Census,
             1208      population figures shall be derived from the estimate from the Utah Population Estimates
             1209      Committee.
             1210          (iii) All transit sales and use tax totals shall be obtained from the State Tax
             1211      Commission.
             1212          (o) (i) The board shall be apportioned as provided under this section in conjunction
             1213      with the decennial United States Census Bureau report every 10 years.
             1214          (ii) Within 120 days following the receipt of the population estimates under this
             1215      Subsection (2)(o), the district shall reapportion representation on the board of trustees in
             1216      accordance with this section.
             1217          (iii) The board shall adopt by resolution a schedule reflecting the current and proposed
             1218      apportionment.
             1219          (iv) Upon adoption of the resolution, the board shall forward a copy of the resolution to
             1220      each of its constituent entities as defined under Section 17B-1-701 .
             1221          (v) The appointing entities gaining a new board member shall appoint a new member
             1222      within 30 days following receipt of the resolution.
             1223          (vi) The appointing entities losing a board member shall inform the board of which
             1224      member currently serving on the board will step down:
             1225          (A) upon appointment of a new member under Subsection (2)(o)(v); or
             1226          (B) in accordance with Section 17B-2a-807.5 .
             1227          (3) Upon the completion of an annexation to a public transit district under Chapter 1,
             1228      Part 4, Annexation, the annexed area shall have a representative on the board of trustees on the
             1229      same basis as if the area had been included in the district as originally organized.
             1230          (4) In addition to the voting members appointed in accordance with Subsection (2), the
             1231      board shall consist of three voting members appointed as follows:
             1232          (a) one member appointed by the speaker of the House of Representatives;
             1233          (b) one member appointed by the president of the Senate; and
             1234          (c) one member appointed by the governor.


             1235          (5) Except as provided in Section 17B-2a-807.5 , the terms of office of the members of
             1236      the board shall be four years or until a successor is appointed, qualified, seated, and has taken
             1237      the oath of office.
             1238          (6) (a) Vacancies for members shall be filled by the official appointing the member
             1239      creating the vacancy for the unexpired term, unless the official fails to fill the vacancy within
             1240      90 days.
             1241          (b) If the appointing official under Subsection (1) does not fill the vacancy within 90
             1242      days, the board of trustees of the authority shall fill the vacancy.
             1243          (c) If the appointing official under Subsection (2) does not fill the vacancy within 90
             1244      days, the governor, with the advice and consent of the Senate, shall fill the vacancy.
             1245          (7) (a) Each voting member may cast one vote on all questions, orders, resolutions, and
             1246      ordinances coming before the board of trustees.
             1247          (b) A majority of all voting members of the board of trustees are a quorum for the
             1248      transaction of business.
             1249          (c) The affirmative vote of a majority of all voting members present at any meeting at
             1250      which a quorum was initially present shall be necessary and, except as otherwise provided, is
             1251      sufficient to carry any order, resolution, ordinance, or proposition before the board of trustees.
             1252          (8) Each public transit district shall pay to each member:
             1253          (a) an attendance fee of $50 per board or committee meeting attended, not to exceed
             1254      $200 in any calendar month to any member; and
             1255          (b) reasonable mileage and expenses necessarily incurred to attend board or committee
             1256      meetings.
             1257          (9) (a) Members of the initial board of trustees shall convene at the time and place
             1258      fixed by the chief executive officer of the entity initiating the proceedings.
             1259          (b) The board of trustees shall elect from its voting membership a chair, vice chair, and
             1260      secretary.
             1261          (c) The members elected under Subsection (9)(b) shall serve for a period of two years
             1262      or until their successors shall be elected and qualified.
             1263          (d) On or after January 1, 2011, a locally elected public official is not eligible to serve
             1264      as the chair, vice chair, or secretary of the board of trustees.
             1265          (10) (a) Except as otherwise authorized under [Subsection] Subsections (2)(g) and


             1266      (10)(b) and Section 17B-2a-807.5 , at the time of a member's appointment or during a member's
             1267      tenure in office, a member may not hold any employment, except as an independent contractor
             1268      or locally elected public official, with a county or municipality within the district.
             1269          (b) A member appointed by a county or municipality may hold employment with the
             1270      county or municipality if the employment is disclosed in writing and the public transit district
             1271      board of trustees ratifies the appointment.
             1272          (11) The Transportation Commission created in Section 72-1-301 :
             1273          (a) for a public transit district serving a population of 200,000 people or fewer, may
             1274      appoint a commissioner of the Transportation Commission to serve on the board of trustees as
             1275      a nonvoting, ex officio member; and
             1276          (b) for a public transit district serving a population of more than 200,000 people, shall
             1277      appoint a commissioner of the Transportation Commission to serve on the board of trustees as
             1278      a voting member.
             1279          (12) (a) The board of trustees of a public transit district serving a population of more
             1280      than 200,000 people shall include a nonvoting member who represents all municipalities and
             1281      unincorporated areas within the district that are located within a county that is not annexed into
             1282      the public transit district.
             1283          (b) The nonvoting member representing the combination of municipalities and
             1284      unincorporated areas described in Subsection (12)(a) shall be designated and appointed by a
             1285      weighted vote of the majority of the chief executive officers of the municipalities described in
             1286      Subsection (12)(a).
             1287          (c) Each municipality's vote under Subsection (12)(b) shall be weighted using the
             1288      proportion of the public transit district population that resides within that municipality and the
             1289      adjacent unincorporated areas within the same county.
             1290          (13) (a) (i) Each member of the board of trustees of a public transit district is subject to
             1291      recall at any time by the legislative body of the county or municipality from which the member
             1292      is appointed.
             1293          (ii) Each recall of a board of trustees member shall be made in the same manner as the
             1294      original appointment.
             1295          (iii) The legislative body recalling a board of trustees member shall provide written
             1296      notice to the member being recalled.


             1297          (b) Upon providing written notice to the board of trustees, a member of the board may
             1298      resign from the board of trustees.
             1299          (c) Except as provided in Section 17B-2a-807.5 , if a board member is recalled or
             1300      resigns under this Subsection (13), the vacancy shall be filled as provided in Subsection (6).
             1301          Section 20. Section 17B-2a-821 is amended to read:
             1302           17B-2a-821. Failure to pay fare -- Multicounty district may establish and enforce
             1303      parking ordinance.
             1304          (1) A person may not ride a transit vehicle without payment of the applicable fare
             1305      established by the public transit district that operates the transit vehicle.
             1306          [(2) A person who violates Subsection (1) is guilty of an infraction.]
             1307          [(3)] (2) The board of trustees of a multicounty district may adopt an ordinance
             1308      governing parking of vehicles at a transit facility, including the imposition of a fine or civil
             1309      penalty for a violation of the ordinance.
             1310          Section 21. Section 17B-2a-825 is amended to read:
             1311           17B-2a-825. Criminal background checks authorized -- Employment eligibility.
             1312          (1) A public transit district may require an individual described in Subsection (2) to:
             1313          (a) submit a fingerprint card in a form acceptable to the public transit district; and
             1314          (b) consent to a fingerprint background check by:
             1315          (i) the Utah Bureau of Criminal Identification; and
             1316          (ii) the Federal Bureau of Investigation.
             1317          (2) A person shall comply with the requirements of Subsection (1) if the person:
             1318          (a) is applying for or continuing employment with the public transit district:
             1319          (i) working in a safety-sensitive position or other position that may affect:
             1320          (A) the safety or well-being of patrons of the public transit district; or
             1321          (B) the safety or security of the transit buildings, stations, platforms, railways, bus
             1322      systems, and transit vehicles;
             1323          (ii) handling personally identifiable information, financial information, or other
             1324      sensitive information including personal health information;
             1325          (iii) working in security-sensitive areas; or
             1326          (iv) handling security-sensitive information, including information system
             1327      technologies; or


             1328          (b) is seeking access to designated security-sensitive areas.
             1329          (3) A public transit district may use the information obtained in accordance with this
             1330      section only for one or more of the following purposes:
             1331          (a) to determine whether or not an individual is convicted of:
             1332          (i) a felony under federal or state law within the last 10 years;
             1333          (ii) a violation within the last 10 years of a federal law, state law, or local ordinance
             1334      concerning the sale, manufacture, distribution, warehousing, adulteration, or transportation of
             1335      an alcoholic beverage;
             1336          (iii) a crime involving moral turpitude; or
             1337          (iv) two or more convictions within the last 10 years for a violation of driving under
             1338      the influence of alcohol, any drug, or the combined influence of alcohol and any drug;
             1339          (b) to determine whether or not an individual has accurately disclosed the person's
             1340      criminal history on an application or document filed with the public transit district;
             1341          (c) to approve or deny an application for employment with the public transit district; or
             1342          (d) to take disciplinary action against an employee of the public transit district,
             1343      including possible termination of employment.
             1344          (4) A person is not eligible for employment with a public transit district in a capacity
             1345      described in Subsection (2) if the person has been convicted of any of the offenses described in
             1346      Subsection (3).
             1347          Section 22. Section 17B-2a-1005 is amended to read:
             1348           17B-2a-1005. Water conservancy district board of trustees -- Selection of
             1349      members -- Number -- Qualifications -- Terms -- Vacancies -- Surety bonds -- Authority.
             1350          (1) Members of the board of trustees for a water conservancy district shall be:
             1351          (a) elected in accordance with:
             1352          (i) the petition or resolution that initiated the process of creating the water conservancy
             1353      district; and
             1354          (ii) Section 17B-1-306 ;
             1355          (b) appointed in accordance with Subsection (2); or
             1356          (c) elected under Subsection (4)(a).
             1357          (2) (a) If the members of the board of trustees are appointed, within 45 days after the
             1358      day on which a water conservancy district is created as provided in Section 17B-1-215 , the


             1359      board of trustees shall be appointed as provided in this Subsection (2).
             1360          (b) For a district located entirely within the boundaries of a single county, the county
             1361      legislative body of that county shall appoint each trustee.
             1362          (c) (i) For a district located in more than a single county, the governor, with the consent
             1363      of the Senate, shall appoint each trustee from nominees submitted as provided in this
             1364      Subsection (2)(c).
             1365          (ii) (A) Except as provided in Subsection (2)(c)(ii)(B), in a division composed solely of
             1366      municipalities, the legislative body of each municipality within the division shall submit two
             1367      nominees per trustee.
             1368          (B) The legislative body of a municipality may submit fewer than two nominees per
             1369      trustee if the legislative body certifies in writing to the governor that the legislative body is
             1370      unable, after reasonably diligent effort, to identify two nominees who are willing and qualified
             1371      to serve as trustee.
             1372          (iii) (A) Except as provided in Subsection (2)(c)(iii)(B), in all other divisions, the
             1373      county legislative body of the county in which the division is located shall submit three
             1374      nominees per trustee.
             1375          (B) The county legislative body may submit fewer than three nominees per trustee if the
             1376      county legislative body certifies in writing to the governor that the county legislative body is
             1377      unable, after reasonably diligent effort, to identify three nominees who are willing and qualified
             1378      to serve as trustee.
             1379          (iv) If a trustee represents a division located in more than one county, the county
             1380      legislative bodies of those counties shall collectively compile the list of three nominees.
             1381          (v) For purposes of this Subsection (2)(c), a municipality that is located in more than
             1382      one county shall be considered to be located in only the county in which more of the municipal
             1383      area is located than in any other county.
             1384          (d) In districts where substantial water is allocated for irrigated agriculture, one trustee
             1385      appointed in that district shall be a person who owns irrigation rights and uses those rights as
             1386      part of that person's livelihood.
             1387          (3) (a) [At least 90 days before expiration of an appointed trustee's term, the] The board
             1388      shall give written notice of the upcoming vacancy in an appointed trustee's term and the date
             1389      when the trustee's term expires to the county legislative body in single county districts and to


             1390      the nominating entities and the governor in all other districts[.]:
             1391          (i) if the upcoming vacancy is in a single county district, at least 90 days before the
             1392      expiration of the trustee's term; and
             1393          (ii) for all other districts, on or before October 1 before the expiration of the appointed
             1394      trustee's term.
             1395          (b) (i) Upon receipt of the notice of the expiration of an appointed trustee's term or
             1396      notice of a vacancy in the office of an appointed trustee, the county or municipal legislative
             1397      body, as the case may be, shall nominate candidates to fill the unexpired term of office
             1398      pursuant to Subsection (2).
             1399          (ii) If a trustee is to be appointed by the governor and the entity charged with
             1400      nominating candidates has not submitted the list of nominees within 90 days after service of
             1401      the notice, the governor shall make the appointment from qualified candidates without
             1402      consultation with the county or municipal legislative body.
             1403          (iii) If the governor fails to appoint, the incumbent shall continue to serve until a
             1404      successor is appointed and qualified.
             1405          (iv) Appointment by the governor vests in the appointee, upon qualification, the
             1406      authority to discharge the duties of trustee, subject only to the consent of the Senate.
             1407          (c) Each trustee shall hold office during the term for which appointed and until a
             1408      successor is duly appointed and has qualified.
             1409          (4) (a) Members of the board of trustees of a water conservancy district shall be
             1410      elected, if, subject to Subsection (4)(b):
             1411          (i) two-thirds of all members of the board of trustees of the water conservancy district
             1412      vote in favor of changing to an elected board; and
             1413          (ii) the legislative body of each municipality or county that appoints a member to the
             1414      board of trustees adopts a resolution approving the change to an elected board.
             1415          (b) A change to an elected board of trustees under Subsection (4)(a) may not shorten
             1416      the term of any member of the board of trustees serving at the time of the change.
             1417          (5) The board of trustees of a water conservancy district shall consist of:
             1418          (a) except as provided in Subsection (5)(b), not more than 11 persons who are residents
             1419      of the district; or
             1420          (b) if the district consists of five or more counties, not more than 21 persons who are


             1421      residents of the district.
             1422          (6) If an elected trustee's office is vacated, the vacated office shall be filled in
             1423      accordance with Section 17B-1-303 .
             1424          (7) Each trustee shall furnish a corporate surety bond at the expense of the district,
             1425      conditioned for the faithful performance of duties as a trustee.
             1426          (8) (a) The board of trustees of a water conservancy district may:
             1427          (i) make and enforce all reasonable rules and regulations for the management, control,
             1428      delivery, use, and distribution of water;
             1429          (ii) withhold the delivery of water with respect to which there is a default or
             1430      delinquency of payment;
             1431          (iii) provide for and declare a forfeiture of the right to the use of water upon the default
             1432      or failure to comply with an order, contract, or agreement for the purchase, lease, or use of
             1433      water, and resell, lease, or otherwise dispose of water with respect to which a forfeiture has
             1434      been declared;
             1435          (iv) allocate and reallocate the use of water to lands within the district;
             1436          (v) provide for and grant the right, upon terms, to transfer water from lands to which
             1437      water has been allocated to other lands within the district;
             1438          (vi) create a lien, as provided in this part, upon land to which the use of water is
             1439      transferred;
             1440          (vii) discharge a lien from land to which a lien has attached; and
             1441          (viii) subject to Subsection (8)(b), enter into a written contract for the sale, lease, or
             1442      other disposition of the use of water.
             1443          (b) (i) A contract under Subsection (8)(a)(viii) may provide for the use of water
             1444      perpetually or for a specified term.
             1445          (ii) (A) If a contract under Subsection (8)(a)(viii) makes water available to the
             1446      purchasing party without regard to actual taking or use, the board may require that the
             1447      purchasing party give security for the payment to be made under the contract, unless the
             1448      contract requires the purchasing party to pay for certain specified annual minimums.
             1449          (B) The security requirement under Subsection (8)(b)(ii)(A) in a contract with a public
             1450      entity may be met by including in the contract a provision for the public entity's levy of a
             1451      special assessment to make annual payments to the district.


             1452          Section 23. Section 17D-1-102 is amended to read:
             1453           17D-1-102. Definitions.
             1454          As used in this chapter:
             1455          (1) "Adequate protests" means written protests timely filed by:
             1456          (a) the owners of private real property that:
             1457          (i) is located within the applicable area;
             1458          (ii) covers at least 25% of the total private land area within the applicable area; and
             1459          (iii) is equal in value to at least 15% of the value of all private real property within the
             1460      applicable area; or
             1461          (b) registered voters residing within the applicable area equal in number to at least 25%
             1462      of the number of votes cast in the applicable area for the office of president of the United States
             1463      at the most recent election prior to the adoption of the resolution or filing of the petition.
             1464          (2) "Applicable area" means:
             1465          (a) for a proposal to create a special service district, the area included within the
             1466      proposed special service district;
             1467          (b) for a proposal to annex an area to an existing special service district, the area
             1468      proposed to be annexed;
             1469          (c) for a proposal to add a service to the service or services provided by a special
             1470      service district, the area included within the special service district; and
             1471          (d) for a proposal to consolidate special service districts, the area included within each
             1472      special service district proposed to be consolidated.
             1473          (3) "Facility" or "facilities" includes any structure, building, system, land, water right,
             1474      water, or other real or personal property required to provide a service that a special service
             1475      district is authorized to provide, including any related or appurtenant easement or right-of-way,
             1476      improvement, utility, landscaping, sidewalk, road, curb, gutter, equipment, or furnishing.
             1477          (4) "General obligation bond":
             1478          (a) means a bond that is directly payable from and secured by ad valorem property
             1479      taxes that are:
             1480          (i) levied:
             1481          (A) by the county or municipality that created the special service district that issues the
             1482      bond; and


             1483          (B) on taxable property within the special service district; and
             1484          (ii) in excess of the ad valorem property taxes for the current fiscal year; and
             1485          (b) does not include:
             1486          (i) a short-term bond;
             1487          (ii) a tax and revenue anticipation bond; or
             1488          (iii) a special assessment bond.
             1489          (5) "Governing body" means:
             1490          (a) the legislative body of the county or municipality that creates the special service
             1491      district, to the extent that the county or municipal legislative body has not delegated authority
             1492      to an administrative control board [appointed] created under Section 17D-1-301 ; or
             1493          (b) the administrative control board of the special service district, to the extent that the
             1494      county or municipal legislative body has delegated authority to an administrative control board
             1495      [appointed] created under Section 17D-1-301 .
             1496          (6) "Guaranteed bonds" means bonds:
             1497          (a) issued by a special service district; and
             1498          (b) the debt service of which is guaranteed by one or more taxpayers owning property
             1499      within the special service district.
             1500          (7) "Local district" has the same meaning as defined in Section 17B-1-102 .
             1501          (8) "Revenue bond":
             1502          (a) means a bond payable from designated taxes or other revenues other than the ad
             1503      valorem property taxes of the county or municipality that created the special service district;
             1504      and
             1505          (b) does not include:
             1506          (i) an obligation constituting an indebtedness within the meaning of an applicable
             1507      constitutional or statutory debt limit;
             1508          (ii) a tax and revenue anticipation bond; or
             1509          (iii) a special assessment bond.
             1510          (9) "Special assessment" means an assessment levied against property to pay all or a
             1511      portion of the costs of making improvements that benefit the property.
             1512          (10) "Special assessment bond" means a bond payable from special assessments.
             1513          (11) "Special service district" means a limited purpose local government entity, as


             1514      described in Section 17D-1-103 , that:
             1515          (a) is created under authority of the Utah Constitution Article XI, Section 7; and
             1516          (b) operates under, is subject to, and has the powers set forth in this chapter.
             1517          (12) "Tax and revenue anticipation bond" means a bond:
             1518          (a) issued in anticipation of the collection of taxes or other revenues or a combination
             1519      of taxes and other revenues; and
             1520          (b) that matures within the same fiscal year as the fiscal year in which the bond is
             1521      issued.
             1522          Section 24. Section 17D-1-302 is amended to read:
             1523           17D-1-302. Number of members of an administrative control board.
             1524          (1) An administrative control board shall consist of at least three members in addition
             1525      to a member appointed in accordance with Subsections 17D-1-303 [(2)(b)(i) and (ii)] (3) and
             1526      (4).
             1527          (2) The number of administrative control board members for a special service district
             1528      established by a county of the first class to provide jail service as provided in Subsection
             1529      17D-1-201 (10) is nine.
             1530          Section 25. Section 17D-1-303 is amended to read:
             1531           17D-1-303. Election or appointment of administrative control board members.
             1532          (1) Except as provided in Subsection [(2)(b)(iii)] (5), a county or municipal legislative
             1533      body that creates an administrative control board may provide for board members to be elected
             1534      or appointed, or for some members to be elected and some appointed.
             1535          (2) [(a)] Except as provided in Subsection [(2)(b)] (3), each member of an
             1536      administrative control board shall be elected or appointed as provided for the election or
             1537      appointment, respectively, of a member of a board of trustees of a local district under Title
             1538      17B, Chapter 1, Part 3, Board of Trustees.
             1539          [(b) (i)] (3) A municipality or improvement district under Title 17B, Chapter 2a, Part 4,
             1540      Improvement District Act, may appoint one member to represent it on an administrative control
             1541      board created [by] for a special service district if:
             1542          [(A)] (a) the special service district was created by a county;
             1543          [(B) the special service district provides the same service as the municipality or
             1544      improvement district; and]


             1545          (b) the municipality or improvement district:
             1546          (i) provides the same service as the special service district; or
             1547          (ii) provided the same service as the special service district:
             1548          (A) prior to the creation of the special service district, if all or part of the municipality
             1549      or improvement district was then included in the special service district; or
             1550          (B) prior to all or part of the municipality or improvement district being annexed into
             1551      the special service district; and
             1552          [(C)] (c) the special service district includes some or all of the area included within the
             1553      municipality or improvement district.
             1554          [(ii)] (4) An institution of higher education for which a special service district provides
             1555      commodities, services, or facilities may appoint the number of members of an administrative
             1556      control board of that special service district that are equal in number to at least 1/3 of the total
             1557      number of board members.
             1558          [(iii)] (5) With respect to an administrative control board created for a special service
             1559      district created by a county of the first class to provide jail service as provided in Subsection
             1560      17D-1-201 (10), the county legislative body shall appoint:
             1561          [(A)] (a) three members from a list of at least six recommendations from the county
             1562      sheriff;
             1563          [(B)] (b) three members from a list of at least six recommendations from municipalities
             1564      within the county; and
             1565          [(C)] (c) three members from a list of at least six recommendations from the county
             1566      executive.
             1567          Section 26. Section 17D-1-304 is amended to read:
             1568           17D-1-304. Qualifications of administrative control board members -- Term of
             1569      office.
             1570          (1) (a) Except as provided in Subsection (1)(b), each member of an administrative
             1571      control board shall be:
             1572          (i) a registered voter within the special service district;
             1573          (ii) an officer or employee of the county or municipality that created the special service
             1574      district; or
             1575          (iii) if over 50% of the residences within a special service district are seasonally


             1576      occupied homes, as defined in Section 17B-1-302 , an owner of land, or an agent or officer of
             1577      an owner of land, that receives services from the special service district and is located within
             1578      the special service district, provided that the number of members appointed under this
             1579      Subsection (1)(a)(iii) comprises less than a quorum of the board.
             1580          (b) Subsection (1)(a) does not apply if:
             1581          (i) at least 90% of the owners of real property within the special service district are not
             1582      registered voters within the special service district; or
             1583          (ii) the member is appointed under Subsection 17D-1-303 [(2)(b)(i) or (ii)] (3) or (4).
             1584          (2) (a) Except as provided in Subsection (2)(b), the term of each member of an
             1585      administrative control board is four years.
             1586          (b) The term of as close as possible to half of the initial members of an administrative
             1587      control board, chosen by lot, is two years.
             1588          Section 27. Section 20A-1-512 is amended to read:
             1589           20A-1-512. Midterm vacancies on local district boards.
             1590          (1) (a) Whenever a vacancy occurs on any local district board for any reason, a
             1591      replacement to serve out the unexpired term shall be appointed as provided in this section by:
             1592          (i) the local district board, if the person vacating the position was elected; or
             1593          (ii) the appointing authority, as defined in Section 17B-1-102 , if the person vacating
             1594      the position was appointed.
             1595          (b) Except as provided in Subsection (1)(c), before acting to fill the vacancy, the local
             1596      district board or appointing authority shall:
             1597          (i) give public notice of the vacancy at least two weeks before the local district board
             1598      or appointing authority meets to fill the vacancy; and
             1599          (ii) identify, in the notice:
             1600          (A) the date, time, and place of the meeting where the vacancy will be filled; and
             1601          (B) the person to whom a person interested in being appointed to fill the vacancy may
             1602      submit his name for consideration and any deadline for submitting it.
             1603          (c) An appointing authority is not subject to Subsection (1)(b) if the appointing
             1604      authority appoints one of its own members and that member meets all applicable statutory
             1605      board member qualifications.
             1606          (2) If the local district board fails to appoint a person to complete an elected board


             1607      member's term within 90 days, the legislative body of the county or municipality that created
             1608      the local district shall fill the vacancy following the procedure set forth for a local district in
             1609      Subsection (1)(b).
             1610          Section 28. Section 20A-4-301 is amended to read:
             1611           20A-4-301. Board of canvassers.
             1612          (1) (a) Each county legislative body is the board of county canvassers for:
             1613          (i) the county; and
             1614          (ii) each local district whose election is conducted by the county[.] if:
             1615          (A) the election relates to the creation of the local district;
             1616          (B) the county legislative body serves as the governing body of the local district; or
             1617          (C) there is no duly constituted governing body of the local district.
             1618          (b) The board of county canvassers shall meet to canvass the returns at the usual place
             1619      of meeting of the county legislative body, at a date and time determined by the county clerk
             1620      that is no sooner than seven days after the election and no later than 14 days after the election.
             1621          (c) If one or more of the county legislative body fails to attend the meeting of the board
             1622      of county canvassers, the remaining members shall replace the absent member by appointing in
             1623      the order named:
             1624          (i) the county treasurer;
             1625          (ii) the county assessor; or
             1626          (iii) the county sheriff.
             1627          (d) Attendance of the number of persons equal to a simple majority of the county
             1628      legislative body, but not less than three persons, shall constitute a quorum for conducting the
             1629      canvass.
             1630          (e) The county clerk is the clerk of the board of county canvassers.
             1631          (2) (a) The mayor and the municipal legislative body are the board of municipal
             1632      canvassers for the municipality.
             1633          (b) The board of municipal canvassers shall meet to canvass the returns at the usual
             1634      place of meeting of the municipal legislative body:
             1635          (i) for canvassing of returns from a municipal general election, no sooner than seven
             1636      days after the election and no later than 14 days after the election; or
             1637          (ii) for canvassing of returns from a municipal primary election, no sooner than seven


             1638      days after the election and no later than 14 days after the election.
             1639          (c) Attendance of a simple majority of the municipal legislative body shall constitute a
             1640      quorum for conducting the canvass.
             1641          (3) (a) The legislative body of the entity authorizing a bond election is the board of
             1642      canvassers for each bond election.
             1643          (b) The board of canvassers for the bond election shall comply with the canvassing
             1644      procedures and requirements of Section 11-14-207 .
             1645          (c) Attendance of a simple majority of the legislative body of the entity authorizing a
             1646      bond election shall constitute a quorum for conducting the canvass.
             1647          Section 29. Section 41-6a-2003 is amended to read:
             1648           41-6a-2003. Automatic license plate reader systems -- Restrictions.
             1649          (1) Except as provided in Subsection (2), a person or governmental entity may not use
             1650      an automatic license plate reader system.
             1651          (2) An automatic license plate reader system may be used:
             1652          (a) by a law enforcement agency for the purpose of protecting public safety, conducting
             1653      criminal investigations, or ensuring compliance with local, state, and federal laws;
             1654          (b) by a governmental parking enforcement entity for the purpose of enforcing state
             1655      and local parking laws;
             1656          (c) by a parking enforcement entity for regulating the use of a parking facility;
             1657          (d) for the purpose of controlling access to a secured area;
             1658          (e) for the purpose of collecting an electronic toll; [or]
             1659          (f) for the purpose of enforcing motor carrier laws[.]; or
             1660          (g) by a public transit district for the purpose of assessing parking needs and
             1661      conducting a travel pattern analysis.
             1662          Section 30. Section 53-10-108 is amended to read:
             1663           53-10-108. Restrictions on access, use, and contents of division records -- Limited
             1664      use of records for employment purposes -- Challenging accuracy of records -- Usage fees
             1665      -- Missing children records -- Penalty for misuse of records.
             1666          (1) Dissemination of information from a criminal history record or warrant of arrest
             1667      information from division files is limited to:
             1668          (a) criminal justice agencies for purposes of administration of criminal justice and for


             1669      employment screening by criminal justice agencies;
             1670          (b) noncriminal justice agencies or individuals for any purpose authorized by statute,
             1671      executive order, court rule, court order, or local ordinance;
             1672          (c) agencies or individuals for the purpose of obtaining required clearances connected
             1673      with foreign travel or obtaining citizenship;
             1674          (d) (i) agencies or individuals pursuant to a specific agreement with a criminal justice
             1675      agency to provide services required for the administration of criminal justice; and
             1676          (ii) the agreement shall specifically authorize access to data, limit the use of the data to
             1677      purposes for which given, and ensure the security and confidentiality of the data;
             1678          (e) agencies or individuals for the purpose of a preplacement adoptive study, in
             1679      accordance with the requirements of Sections 78B-6-128 and 78B-6-130 ;
             1680          (f) (i) agencies and individuals as the commissioner authorizes for the express purpose
             1681      of research, evaluative, or statistical activities pursuant to an agreement with a criminal justice
             1682      agency; and
             1683          (ii) private security agencies through guidelines established by the commissioner for
             1684      employment background checks for their own employees and prospective employees;
             1685          (g) a qualifying entity for employment background checks for their own employees and
             1686      persons who have applied for employment with the qualifying entity; and
             1687          (h) other agencies and individuals as the commissioner authorizes and finds necessary
             1688      for protection of life and property and for offender identification, apprehension, and
             1689      prosecution pursuant to an agreement.
             1690          (2) An agreement under Subsection (1)(f) or (1)(h) shall specifically authorize access
             1691      to data, limit the use of data to research, evaluative, or statistical purposes, preserve the
             1692      anonymity of individuals to whom the information relates, and ensure the confidentiality and
             1693      security of the data.
             1694          (3) (a) Before requesting information under Subsection (1)(g), a qualifying entity must
             1695      obtain a signed waiver from the person whose information is requested.
             1696          (b) The waiver must notify the signee:
             1697          (i) that a criminal history background check will be conducted;
             1698          (ii) who will see the information; and
             1699          (iii) how the information will be used.


             1700          (c) Information received by a qualifying entity under Subsection (1)(g) may only be:
             1701          (i) available to persons involved in the hiring or background investigation of the
             1702      employee; and
             1703          (ii) used for the purpose of assisting in making an employment or promotion decision.
             1704          (d) A person who disseminates or uses information obtained from the division under
             1705      Subsection (1)(g) for purposes other than those specified under Subsection (3)(c), in addition to
             1706      any penalties provided under this section, is subject to civil liability.
             1707          (e) A qualifying entity that obtains information under Subsection (1)(g) shall provide
             1708      the employee or employment applicant an opportunity to:
             1709          (i) review the information received as provided under Subsection (8); and
             1710          (ii) respond to any information received.
             1711          (f) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             1712      division may make rules to implement this Subsection (3).
             1713          (g) (i) The applicant fingerprint card fee under Subsection (1)(g) is $20.
             1714          (ii) The name check fee under Subsection (1)(g) is $15.
             1715          (iii) These fees remain in effect until changed by the division through the process under
             1716      Section 63J-1-504 .
             1717          (iv) Funds generated under Subsections (3)(g)(i), (3)(g)(ii), and (8)(b) shall be
             1718      deposited in the General Fund as a dedicated credit by the department to cover the costs
             1719      incurred in providing the information.
             1720          (h) The division or its employees are not liable for defamation, invasion of privacy,
             1721      negligence, or any other claim in connection with the contents of information disseminated
             1722      under Subsection (1)(g).
             1723          (4) (a) Any criminal history record information obtained from division files may be
             1724      used only for the purposes for which it was provided and may not be further disseminated,
             1725      except under [Subsections] Subsection (4)(b) [and], (c), or (d).
             1726          (b) A criminal history provided to an agency pursuant to Subsection (1)(e) may be
             1727      provided by the agency to the person who is the subject of the history, another licensed
             1728      child-placing agency, or the attorney for the adoptive parents for the purpose of facilitating an
             1729      adoption.
             1730          (c) A criminal history of a defendant provided to a criminal justice agency under


             1731      Subsection (1)(a) may also be provided by the prosecutor to a defendant's defense counsel,
             1732      upon request during the discovery process, for the purpose of establishing a defense in a
             1733      criminal case.
             1734          (d) A public transit district, as described in Title 17B, Chapter 2a, Part 8, Public
             1735      Transit District Act, that is under contract with a state agency to provide services may, for the
             1736      purposes of complying with Subsection 62A-5-103.5(7), provide a criminal history record to
             1737      the state agency or the agency's designee.
             1738          (5) If an individual has no prior criminal convictions, criminal history record
             1739      information contained in the division's computerized criminal history files may not include
             1740      arrest or disposition data concerning an individual who has been acquitted, the person's charges
             1741      dismissed, or when no complaint against the person has been filed.
             1742          (6) (a) This section does not preclude the use of the division's central computing
             1743      facilities for the storage and retrieval of criminal history record information.
             1744          (b) This information shall be stored so it cannot be modified, destroyed, or accessed by
             1745      unauthorized agencies or individuals.
             1746          (7) Direct access through remote computer terminals to criminal history record
             1747      information in the division's files is limited to those agencies authorized by the commissioner
             1748      under procedures designed to prevent unauthorized access to this information.
             1749          (8) (a) The commissioner shall establish procedures to allow an individual right of
             1750      access to review and receive a copy of the individual's criminal history report.
             1751          (b) A processing fee for the right of access service, including obtaining a copy of the
             1752      individual's criminal history report under Subsection (8)(a) is $15. This fee remains in effect
             1753      until changed by the commissioner through the process under Section 63J-1-504 .
             1754          (c) (i) The commissioner shall establish procedures for an individual to challenge the
             1755      completeness and accuracy of criminal history record information contained in the division's
             1756      computerized criminal history files regarding that individual.
             1757          (ii) These procedures shall include provisions for amending any information found to
             1758      be inaccurate or incomplete.
             1759          (9) The private security agencies as provided in Subsection (1)(f)(ii):
             1760          (a) shall be charged for access; and
             1761          (b) shall be registered with the division according to rules made by the division under


             1762      Title 63G, Chapter 3, Utah Administrative Rulemaking Act.
             1763          (10) Before providing information requested under this section, the division shall give
             1764      priority to criminal justice agencies needs.
             1765          (11) (a) It is a class B misdemeanor for a person to knowingly or intentionally access,
             1766      use, disclose, or disseminate a record created, maintained, or to which access is granted by the
             1767      division or any information contained in a record created, maintained, or to which access is
             1768      granted by the division for a purpose prohibited or not permitted by statute, rule, regulation, or
             1769      policy of a governmental entity.
             1770          (b) A person who discovers or becomes aware of any unauthorized use of records
             1771      created or maintained, or to which access is granted by the division shall inform the
             1772      commissioner and the director of the Utah Bureau of Criminal Identification of the
             1773      unauthorized use.
             1774          Section 31. Section 67-3-1 is amended to read:
             1775           67-3-1. Functions and duties.
             1776          (1) (a) The state auditor is the auditor of public accounts and is independent of any
             1777      executive or administrative officers of the state.
             1778          (b) The state auditor is not limited in the selection of personnel or in the determination
             1779      of the reasonable and necessary expenses of the state auditor's office.
             1780          (2) The state auditor shall examine and certify annually in respect to each fiscal year,
             1781      financial statements showing:
             1782          (a) the condition of the state's finances;
             1783          (b) the revenues received or accrued;
             1784          (c) expenditures paid or accrued;
             1785          (d) the amount of unexpended or unencumbered balances of the appropriations to the
             1786      agencies, departments, divisions, commissions, and institutions; and
             1787          (e) the cash balances of the funds in the custody of the state treasurer.
             1788          (3) (a) The state auditor shall:
             1789          (i) audit each permanent fund, each special fund, the General Fund, and the accounts of
             1790      any department of state government or any independent agency or public corporation as the law
             1791      requires, as the auditor determines is necessary, or upon request of the governor or the
             1792      Legislature;


             1793          (ii) perform the audits in accordance with generally accepted auditing standards and
             1794      other auditing procedures as promulgated by recognized authoritative bodies;
             1795          (iii) as the auditor determines is necessary, conduct the audits to determine:
             1796          (A) honesty and integrity in fiscal affairs;
             1797          (B) accuracy and reliability of financial statements;
             1798          (C) effectiveness and adequacy of financial controls; and
             1799          (D) compliance with the law.
             1800          (b) If any state entity receives federal funding, the state auditor shall ensure that the
             1801      audit is performed in accordance with federal audit requirements.
             1802          (c) (i) The costs of the federal compliance portion of the audit may be paid from an
             1803      appropriation to the state auditor from the General Fund.
             1804          (ii) If an appropriation is not provided, or if the federal government does not
             1805      specifically provide for payment of audit costs, the costs of the federal compliance portions of
             1806      the audit shall be allocated on the basis of the percentage that each state entity's federal funding
             1807      bears to the total federal funds received by the state.
             1808          (iii) The allocation shall be adjusted to reflect any reduced audit time required to audit
             1809      funds passed through the state to local governments and to reflect any reduction in audit time
             1810      obtained through the use of internal auditors working under the direction of the state auditor.
             1811          (4) (a) Except as provided in Subsection (4)(b), the state auditor shall, in addition to
             1812      financial audits, and as the auditor determines is necessary, conduct performance and special
             1813      purpose audits, examinations, and reviews of any entity that receives public funds, including a
             1814      determination of any or all of the following:
             1815          (i) the honesty and integrity of all its fiscal affairs;
             1816          (ii) whether or not its administrators have faithfully complied with legislative intent;
             1817          (iii) whether or not its operations have been conducted in an efficient, effective, and
             1818      cost-efficient manner;
             1819          (iv) whether or not its programs have been effective in accomplishing the intended
             1820      objectives; and
             1821          (v) whether or not its management, control, and information systems are adequate,
             1822      effective, and secure.
             1823          (b) The auditor may not conduct performance and special purpose audits,


             1824      examinations, and reviews of any entity that receives public funds if the entity:
             1825          (i) has an elected auditor; and
             1826          (ii) has, within the entity's last budget year, had its financial statements or performance
             1827      formally reviewed by another outside auditor.
             1828          (5) The state auditor shall administer any oath or affirmation necessary to the
             1829      performance of the duties of the auditor's office, and may subpoena witnesses and documents,
             1830      whether electronic or otherwise, and examine into any matter that the auditor considers
             1831      necessary.
             1832          (6) The state auditor may require all persons who have had the disposition or
             1833      management of any property of this state or its political subdivisions to submit statements
             1834      regarding it at the time and in the form that the auditor requires.
             1835          (7) The state auditor shall:
             1836          (a) except where otherwise provided by law, institute suits in Salt Lake County in
             1837      relation to the assessment, collection, and payment of its revenues against:
             1838          (i) persons who by any means have become entrusted with public money or property
             1839      and have failed to pay over or deliver the money or property; and
             1840          (ii) all debtors of the state;
             1841          (b) collect and pay into the state treasury all fees received by the state auditor;
             1842          (c) perform the duties of a member of all boards of which the state auditor is a member
             1843      by the constitution or laws of the state, and any other duties that are prescribed by the
             1844      constitution and by law;
             1845          (d) stop the payment of the salary of any state official or state employee who:
             1846          (i) refuses to settle accounts or provide required statements about the custody and
             1847      disposition of public funds or other state property;
             1848          (ii) refuses, neglects, or ignores the instruction of the state auditor or any controlling
             1849      board or department head with respect to the manner of keeping prescribed accounts or funds;
             1850      or
             1851          (iii) fails to correct any delinquencies, improper procedures, and errors brought to the
             1852      official's or employee's attention;
             1853          (e) establish accounting systems, methods, and forms for public accounts in all taxing
             1854      or fee-assessing units of the state in the interest of uniformity, efficiency, and economy;


             1855          (f) superintend the contractual auditing of all state accounts;
             1856          (g) subject to [Subsection] Subsections (8) and (10), withhold state allocated funds or
             1857      the disbursement of property taxes from [any] a state or local taxing or fee-assessing unit, if
             1858      necessary, to ensure that officials and employees in those taxing units [of the state] comply
             1859      with state laws and procedures in the budgeting, expenditures, and financial reporting of public
             1860      funds; and
             1861          (h) subject to [Subsection] Subsections (9) and (10), withhold the disbursement of tax
             1862      money from any county, if necessary, to ensure that officials and employees in the county
             1863      comply with Section 59-2-303.1 .
             1864          (8) (a) Except as otherwise provided by law, the state auditor may not withhold funds
             1865      under Subsection (7)(g) until a state or local taxing or fee-assessing unit has received formal
             1866      written notice of noncompliance from the auditor and has been given 60 days to make the
             1867      specified corrections.
             1868          (b) If, after receiving notice under Subsection (8)(a), a state or local fee-assessing unit
             1869      that exclusively assesses fees has not made corrections to comply with state laws and
             1870      procedures in the budgeting, expenditures, and financial reporting of public funds, the state
             1871      auditor:
             1872          (i) shall provide a recommended timeline for corrective actions; and
             1873          (ii) may prohibit the fee-assessing unit from accessing money held by the state; and
             1874          (iii) may prohibit a state or local fee-assessing unit from accessing money held in an
             1875      account of a financial institution by:
             1876          (A) contacting the fee-assessing unit's financial institution and requesting that the
             1877      institution prohibit access to the account; or
             1878          (B) filing an action in district court requesting an order of the court to prohibit a
             1879      financial institution from providing the fee-assessing unit access to an account.
             1880          (c) The state auditor shall remove a limitation on accessing funds under Subsection
             1881      (8)(b) upon compliance with state laws and procedures in the budgeting, expenditures, and
             1882      financial reporting of public funds.
             1883          (d) If a local taxing or fee-assessing unit has not adopted a budget in compliance with
             1884      state law, the state auditor:
             1885          (i) shall provide notice to the taxing or fee-assessing unit of the unit's failure to


             1886      comply;
             1887          (ii) may prohibit the taxing or fee-assessing unit from accessing money held by the
             1888      state; and
             1889          (iii) may prohibit a taxing or fee-assessing unit from accessing money held in an
             1890      account of a financial institution by:
             1891          (A) contacting the taxing or fee-assessing unit's financial institution and requesting that
             1892      the institution prohibit access to the account; or
             1893          (B) filing an action in district court requesting an order of the court to prohibit a
             1894      financial institution from providing the taxing or fee-assessing unit access to an account.
             1895          (e) If the local taxing or fee-assessing unit adopts a budget in compliance with state
             1896      law, the state auditor shall eliminate a limitation on accessing funds described in Subsection
             1897      (8)(d).
             1898          (9) The state auditor may not withhold funds under Subsection (7)(h) until a county has
             1899      received formal written notice of noncompliance from the auditor and has been given 60 days
             1900      to make the specified corrections.
             1901          (10) Notwithstanding Subsection (7)(g),(7)(h), (8)(b), or (8)(d) the state auditor:
             1902          (a) shall authorize a disbursement by a state or local taxing or fee-assessing unit if the
             1903      disbursement is necessary to:
             1904          (i) avoid a major disruption in the operations of the state or local taxing or
             1905      fee-assessing unit; or
             1906          (ii) meet debt service obligations; and
             1907          (b) may authorize a disbursement by a state or local taxing or fee-assessing unit as the
             1908      state auditor determines is appropriate.
             1909          [(10)] (11) The state auditor shall:
             1910          (a) establish audit guidelines and procedures for audits of local mental health and
             1911      substance abuse authorities and their contract providers, conducted pursuant to Title 17,
             1912      Chapter 43, Parts 2, Local Substance Abuse Authorities and 3, Local Mental Health
             1913      Authorities, Title 51, Chapter 2a, Accounting Reports from Political Subdivisions, Interlocal
             1914      Organizations, and Other Local Entities Act, and Title 62A, Chapter 15, Substance Abuse and
             1915      Mental Health Act; and
             1916          (b) ensure that those guidelines and procedures provide assurances to the state that:


             1917          (i) state and federal funds appropriated to local mental health authorities are used for
             1918      mental health purposes;
             1919          (ii) a private provider under an annual or otherwise ongoing contract to provide
             1920      comprehensive mental health programs or services for a local mental health authority is in
             1921      compliance with state and local contract requirements, and state and federal law;
             1922          (iii) state and federal funds appropriated to local substance abuse authorities are used
             1923      for substance abuse programs and services; and
             1924          (iv) a private provider under an annual or otherwise ongoing contract to provide
             1925      comprehensive substance abuse programs or services for a local substance abuse authority is in
             1926      compliance with state and local contract requirements, and state and federal law.
             1927          [(11)] (12) The state auditor may, in accordance with the auditor's responsibilities for
             1928      political subdivisions of the state as provided in Title 51, Chapter 2a, Accounting Reports from
             1929      Political Subdivisions, Interlocal Organizations, and Other Local Entities Act, initiate audits or
             1930      investigations of any political subdivision that are necessary to determine honesty and integrity
             1931      in fiscal affairs, accuracy and reliability of financial statements, effectiveness, and adequacy of
             1932      financial controls and compliance with the law.
             1933          [(12)] (13) (a) The state auditor may not audit work that the state auditor performed
             1934      before becoming state auditor.
             1935          (b) If the state auditor has previously been a responsible official in state government
             1936      whose work has not yet been audited, the Legislature shall:
             1937          (i) designate how that work shall be audited; and
             1938          (ii) provide additional funding for those audits, if necessary.
             1939          [(13)] (14) The state auditor shall:
             1940          (a) with the assistance, advice, and recommendations of an advisory committee
             1941      appointed by the state auditor from among local district boards of trustees, officers, and
             1942      employees and special service district boards, officers, and employees:
             1943          (i) prepare a Uniform Accounting Manual for Local Districts that:
             1944          (A) prescribes a uniform system of accounting and uniform budgeting and reporting
             1945      procedures for local districts under Title 17B, Limited Purpose Local Government Entities -
             1946      Local Districts, and special service districts under Title 17D, Chapter 1, Special Service
             1947      District Act;


             1948          (B) conforms with generally accepted accounting principles; and
             1949          (C) prescribes reasonable exceptions and modifications for smaller districts to the
             1950      uniform system of accounting, budgeting, and reporting;
             1951          (ii) maintain the manual under Subsection [(13)] (14)(a) so that it continues to reflect
             1952      generally accepted accounting principles;
             1953          (iii) conduct a continuing review and modification of procedures in order to improve
             1954      them;
             1955          (iv) prepare and supply each district with suitable budget and reporting forms; and
             1956          (v) prepare instructional materials, conduct training programs, and render other
             1957      services considered necessary to assist local districts and special service districts in
             1958      implementing the uniform accounting, budgeting, and reporting procedures; and
             1959          (b) continually analyze and evaluate the accounting, budgeting, and reporting practices
             1960      and experiences of specific local districts and special service districts selected by the state
             1961      auditor and make the information available to all districts.
             1962          [(14)] (15) (a) The following records in the custody or control of the state auditor are
             1963      protected records under Title 63G, Chapter 2, Government Records Access and Management
             1964      Act:
             1965          (i) records that would disclose information relating to allegations of personal
             1966      misconduct, gross mismanagement, or illegal activity of a past or present governmental
             1967      employee if the information or allegation cannot be corroborated by the state auditor through
             1968      other documents or evidence, and the records relating to the allegation are not relied upon by
             1969      the state auditor in preparing a final audit report;
             1970          (ii) records and audit workpapers to the extent they would disclose the identity of a
             1971      person who during the course of an audit, communicated the existence of any waste of public
             1972      funds, property, or manpower, or a violation or suspected violation of a law, rule, or regulation
             1973      adopted under the laws of this state, a political subdivision of the state, or any recognized entity
             1974      of the United States, if the information was disclosed on the condition that the identity of the
             1975      person be protected;
             1976          (iii) before an audit is completed and the final audit report is released, records or drafts
             1977      circulated to a person who is not an employee or head of a governmental entity for their
             1978      response or information;


             1979          (iv) records that would disclose an outline or part of any audit survey plans or audit
             1980      program; and
             1981          (v) requests for audits, if disclosure would risk circumvention of an audit.
             1982          (b) The provisions of Subsections [(14)] (15)(a)(i), (ii), and (iii) do not prohibit the
             1983      disclosure of records or information that relate to a violation of the law by a governmental
             1984      entity or employee to a government prosecutor or peace officer.
             1985          (c) The provisions of this Subsection [(14)] (15) do not limit the authority otherwise
             1986      given to the state auditor to classify a document as public, private, controlled, or protected
             1987      under Title 63G, Chapter 2, Government Records Access and Management Act.
             1988          [(15)] (16) If the state auditor conducts an audit of an entity that the state auditor has
             1989      previously audited and finds that the entity has not implemented a recommendation made by
             1990      the state auditor in a previous audit, the state auditor shall notify the Legislative Management
             1991      Committee through its audit subcommittee that the entity has not implemented that
             1992      recommendation.
             1993          Section 32. Section 78B-2-216 is amended to read:
             1994           78B-2-216. Adverse possession of certain real property.
             1995          (1) As used in this section:
             1996          (a) "Government entity" means a town, city, county, [or] metropolitan water district, or
             1997      local district.
             1998          (b) "Water facility" means any improvement or structure used, or intended to be used,
             1999      to divert, convey, store, measure, or treat water.
             2000          (2) Except as provided in Subsection (3), a person may not acquire by adverse
             2001      possession, prescriptive use, or acquiescence any right in or title to any real property:
             2002          (a) held by a government entity; and
             2003          (b) designated for any present or future public use, including:
             2004          (i) a street;
             2005          (ii) a lane;
             2006          (iii) an avenue;
             2007          (iv) an alley;
             2008          (v) a park;
             2009          (vi) a public square;


             2010          (vii) a water facility; or
             2011          (viii) a water conveyance right-of-way or water conveyance corridor.
             2012          (3) Notwithstanding Subsection (2) and subject to Subsection (4), a person may acquire
             2013      title if:
             2014          (a) a government entity sold, disposed of, or conveyed the right in, or title to, the real
             2015      property to a purchaser for valuable consideration; and
             2016          (b) the purchaser or the purchaser's grantees or successors in interest have been in
             2017      exclusive, continuous, and adverse possession of the real property for at least seven
             2018      consecutive years after the day on which the real property was sold, disposed of, or conveyed
             2019      as described in Subsection (3)(a).
             2020          (4) A person who acquires title under Subsection (3) is subject to all other applicable
             2021      provisions of law.


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