1     
SPECIAL SERVICE DISTRICTS AMENDMENTS

2     
2015 GENERAL SESSION

3     
STATE OF UTAH

4     
Chief Sponsor: Michael S. Kennedy

5     
Senate Sponsor: ____________

6     

7     LONG TITLE
8     General Description:
9          This bill amends provisions related to the creation of and services provided by a special
10     service district.
11     Highlighted Provisions:
12          This bill:
13          ▸     prohibits, in certain circumstances, a municipality from creating a special service
14     district;
15          ▸     requires the legislative body of a municipality that is creating a special service
16     district to certify to the lieutenant governor certain information;
17          ▸     prohibits, in certain circumstances, a municipality from adding a service to the area
18     of an existing special service district; and
19          ▸     makes technical and conforming amendments.
20     Money Appropriated in this Bill:
21          None
22     Other Special Clauses:
23          None
24     Utah Code Sections Affected:
25     AMENDS:
26          17D-1-202, as enacted by Laws of Utah 2008, Chapter 360
27          17D-1-209, as last amended by Laws of Utah 2009, Chapter 350

28          17D-1-401, as last amended by Laws of Utah 2009, Chapter 92
29     

30     Be it enacted by the Legislature of the state of Utah:
31          Section 1. Section 17D-1-202 is amended to read:
32          17D-1-202. Limitations on the creation of a special service district.
33          (1) Subject to [Subsection] Subsections (2) and (4), the boundary of a proposed special
34     service district may include all or part of the area within the boundary of the county or
35     municipality that creates the special service district.
36          (2) (a) The boundary of a proposed special service district may not include an area
37     included within the boundary of an existing special service district that provides the same
38     service that the proposed special service district is proposed to provide.
39          (b) The boundary of a proposed special service district may not include an area
40     included within the boundary of an existing local district that provides the same service that the
41     proposed special service district is proposed to provide, unless the local district consents.
42          (c) A proposed special service district may not include land that will not be benefitted
43     by the service that the special service district is proposed to provide, unless the owner of the
44     nonbenefitted land consents to the inclusion.
45          (d) A county may not create a special service district that includes some or all of the
46     area within a municipality unless the legislative body of that municipality adopts a resolution or
47     ordinance consenting to the inclusion.
48          (3) All areas included within a special service district need not be contiguous.
49          (4) A municipality may not create a special service district:
50          (a) whose boundaries would encompass an area smaller than the entire geographic area
51     of the municipality; or
52          (b) to provide a service that the municipality currently provides throughout the
53     municipality if the municipality plans to continue to provide the service outside of the special
54     service district.
55          Section 2. Section 17D-1-209 is amended to read:
56          17D-1-209. Notice and plat to lieutenant governor -- Recording requirements --
57     Effective date.
58          (1) The legislative body adopting a resolution or ordinance approving the creation of a

59     special service district shall:
60          (a) within 30 days after adopting the resolution or ordinance, file with the lieutenant
61     governor:
62          (i) a copy of a notice of an impending boundary action, as defined in Section 67-1a-6.5,
63     that meets the requirements of Subsection 67-1a-6.5(3); [and]
64          (ii) a copy of an approved final local entity plat, as defined in Section 67-1a-6.5; and
65          (iii) if the special service district is being created by a municipality, a written
66     certification that states the following:
67          "We, the legislative body of [name of municipality], certify that:
68          1. [name of special service district] either encompasses the entire geographic area of
69     [name of creating municipality] or the special service district is not being created to provide a
70     service that the municipality currently provides throughout the municipality; or
71          2. If [name of creating municipality] currently provides the service throughout the
72     municipality, the municipality will stop providing the service after the creation of the special
73     service district; and
74          3. Subsection 17D-1-202(4) of the Utah Code does not preclude the creation of the
75     special service district."; and
76          (b) upon the lieutenant governor's issuance of a certificate of incorporation under
77     Section 67-1a-6.5, submit to the recorder of the county in which the special service district is
78     located:
79          (i) the original notice of an impending boundary action;
80          (ii) the original certificate of incorporation;
81          (iii) the original approved final local entity plat; and
82          (iv) a certified copy of the resolution or ordinance approving the creation of the special
83     service district.
84          (2) (a) Upon the lieutenant governor's issuance of a certificate of creation under
85     Section 67-1a-6.5, the special service district is created and incorporated.
86          (b) (i) The effective date of a special service district's incorporation for purposes of
87     assessing property within the special service district is governed by Section 59-2-305.5.
88          (ii) Until the documents listed in Subsection (1)(b) are recorded in the office of the
89     recorder of the county in which the property is located:

90          (A) the county, city, or town that created the special service district may not levy or
91     collect a property tax for special service district purposes on property within the special service
92     district; and
93          (B) the special service district may not:
94          (I) levy or collect an assessment on property within the special service district; or
95          (II) charge or collect a fee for service provided to property within the special service
96     district.
97          Section 3. Section 17D-1-401 is amended to read:
98          17D-1-401. Annexing an area or adding a service to an existing special service
99     district.
100          (1) Except as provided in Subsections (3) [and], (4), and (5), a county or municipal
101     legislative body may, as provided in this part:
102          (a) annex an area to an existing special service district to provide to that area a service
103     that the special service district is authorized to provide;
104          (b) add a service under Section 17D-1-201 within the area of an existing special service
105     district that the special service district is not already authorized to provide; or
106          (c) both annex an area under Subsection (1)(a) and add a service under Subsection
107     (1)(b).
108          (2) Except for Section 17D-1-209, the provisions of Part 2, Creating a Special Service
109     District, apply to and govern the process of annexing an area to an existing special service
110     district or adding a service that the special service district is not already authorized to provide,
111     to the same extent as if the annexation or addition were the creation of a special service district.
112          (3) A county or municipal legislative body may not:
113          (a) annex an area to an existing special service district if a local district provides to that
114     area the same service that the special service district is proposed to provide to the area, unless
115     the local district consents to the annexation; or
116          (b) add a service within the area of an existing special service district if a local district
117     provides to that area the same service that is proposed to be added, unless the local district
118     consents to the addition.
119          (4) A municipality may not add a service within the area of an existing special service
120     district:

121          (a) whose boundaries encompass an area smaller than the entire geographic area of the
122     municipality; and
123          (b) if the municipality currently provides the service throughout the municipality and
124     plans to continue to provide the service outside of the special service district.
125          [(4)] (5) A county or municipal legislative body may not annex an area to an existing
126     special service district or add a service within the area of an existing special service district if
127     the creation of a special service district including that area or providing that service would not
128     be allowed under Part 2, Creating a Special Service District.
129          [(5)] (6) A county or municipal legislative body may not annex an area to an existing
130     special service district or add a service within the area of an existing special service district if
131     the area is located within a project area described in a project area plan adopted by the military
132     installation development authority under Title 63H, Chapter 1, Military Installation
133     Development Authority Act, unless the county or municipal legislative body has first obtained
134     the authority's approval.






Legislative Review Note
     as of 2-3-15 4:57 PM


Office of Legislative Research and General Counsel