1     
AMENDMENTS TO THE INTERLOCAL ACT

2     
2015 GENERAL SESSION

3     
STATE OF UTAH

4     
Chief Sponsor: Johnny Anderson

5     
Senate Sponsor: ____________

6     

7     LONG TITLE
8     General Description:
9          This bill amends provisions related to interlocal entities and joint or cooperative
10     undertakings.
11     Highlighted Provisions:
12          This bill:
13          ▸     defines terms;
14          ▸     authorizes a Utah public agency to exercise, with certain limitations, a power,
15     privilege, or authority with any other Utah public agency;
16          ▸     provides that certain provisions govern an interlocal entity;
17          ▸     authorizes an interlocal entity to create a local disaster recovery fund;
18          ▸     provides requirements for agreements for a joint or cooperative undertaking;
19          ▸     clarifies applicable law to a bond issued by an interlocal entity;
20          ▸     provides that an interlocal entity may pledge certain revenues for a bond;
21          ▸     amends provisions authorizing an employee performing services under agreements;
22          ▸     requires that an interlocal entity establish a personnel system;
23          ▸     requires a governing board to adopt rules or policies for public procurement;
24          ▸     exempts a taxed interlocal entity from certain provisions;
25          ▸     enacts language related to the governance of an interlocal entity or joint or
26     cooperative undertaking, including:
27               •     compensation of a member of the governing authority; and

28               •     quorum and meeting requirements;
29          ▸     enacts language related to fiscal procedures for interlocal entities, including uniform
30     accounting requirements, budgetary procedures, appropriations, emergency
31     expenditures, interfund loans, operating and capital budgets, audit requirements, and
32     fees; and
33          ▸     makes clarifying and conforming amendments.
34     Money Appropriated in this Bill:
35          None
36     Other Special Clauses:
37          None
38     Utah Code Sections Affected:
39     AMENDS:
40          11-13-103, as last amended by Laws of Utah 2012, Chapters 212 and 345
41          11-13-201, as renumbered and amended by Laws of Utah 2002, Chapter 286
42          11-13-202.5, as enacted by Laws of Utah 2003, Chapter 38
43          11-13-203, as last amended by Laws of Utah 2009, Chapter 350
44          11-13-204 (Effective 05/12/15), as last amended by Laws of Utah 2014, Chapter 115
45          11-13-206, as renumbered and amended by Laws of Utah 2002, Chapter 286
46          11-13-207, as renumbered and amended by Laws of Utah 2002, Chapter 286
47          11-13-208, as renumbered and amended by Laws of Utah 2002, Chapter 286
48          11-13-211, as renumbered and amended by Laws of Utah 2002, Chapter 286
49          11-13-217, as renumbered and amended by Laws of Utah 2002, Chapter 286
50          11-13-218, as last amended by Laws of Utah 2013, Chapter 246
51          11-13-219, as last amended by Laws of Utah 2009, Chapter 388
52          11-13-222, as last amended by Laws of Utah 2008, Chapter 382
53          11-13-224, as enacted by Laws of Utah 2013, Chapter 311
54          11-13-315 (Effective 05/12/15), as last amended by Laws of Utah 2014, Chapters 115,
55     189, 196, and 264
56          52-4-103, as last amended by Laws of Utah 2014, Chapter 434
57          53-2a-605, as renumbered and amended by Laws of Utah 2013, Chapter 295
58          63G-2-103, as last amended by Laws of Utah 2014, Chapter 90

59     ENACTS:
60          11-13-218.1, Utah Code Annotated 1953
61          11-13-225, Utah Code Annotated 1953
62          11-13-226, Utah Code Annotated 1953
63          11-13-401, Utah Code Annotated 1953
64          11-13-402, Utah Code Annotated 1953
65          11-13-403, Utah Code Annotated 1953
66          11-13-404, Utah Code Annotated 1953
67          11-13-501, Utah Code Annotated 1953
68          11-13-502, Utah Code Annotated 1953
69          11-13-503, Utah Code Annotated 1953
70          11-13-504, Utah Code Annotated 1953
71          11-13-505, Utah Code Annotated 1953
72          11-13-506, Utah Code Annotated 1953
73          11-13-507, Utah Code Annotated 1953
74          11-13-508, Utah Code Annotated 1953
75          11-13-509, Utah Code Annotated 1953
76          11-13-510, Utah Code Annotated 1953
77          11-13-511, Utah Code Annotated 1953
78          11-13-512, Utah Code Annotated 1953
79          11-13-513, Utah Code Annotated 1953
80          11-13-514, Utah Code Annotated 1953
81          11-13-515, Utah Code Annotated 1953
82          11-13-516, Utah Code Annotated 1953
83          11-13-517, Utah Code Annotated 1953
84          11-13-518, Utah Code Annotated 1953
85          11-13-519, Utah Code Annotated 1953
86          11-13-520, Utah Code Annotated 1953
87          11-13-521, Utah Code Annotated 1953
88          11-13-522, Utah Code Annotated 1953
89          11-13-523, Utah Code Annotated 1953

90          11-13-524, Utah Code Annotated 1953
91          11-13-525, Utah Code Annotated 1953
92          11-13-526, Utah Code Annotated 1953
93          11-13-527, Utah Code Annotated 1953
94          11-13-528, Utah Code Annotated 1953
95          11-13-529, Utah Code Annotated 1953
96          11-13-530, Utah Code Annotated 1953
97          11-13-531, Utah Code Annotated 1953
98          11-13-532, Utah Code Annotated 1953
99          11-13-533, Utah Code Annotated 1953
100     REPEALS:
101          11-13-223 (Superseded 05/12/15), as last amended by Laws of Utah 2007, Chapter 249
102          11-13-223 (Effective 05/12/15), as last amended by Laws of Utah 2014, Chapter 115
103     

104     Be it enacted by the Legislature of the state of Utah:
105          Section 1. Section 11-13-103 is amended to read:
106          11-13-103. Definitions.
107          As used in this chapter:
108          (1) (a) "Additional project capacity" means electric generating capacity provided by a
109     generating unit that first produces electricity on or after May 6, 2002, and that is constructed or
110     installed at or adjacent to the site of a project that first produced electricity before May 6, 2002,
111     regardless of whether:
112          (i) the owners of the new generating unit are the same as or different from the owner of
113     the project; and
114          (ii) the purchasers of electricity from the new generating unit are the same as or
115     different from the purchasers of electricity from the project.
116          (b) "Additional project capacity" does not mean or include replacement project
117     capacity.
118          (2) "Board" means the Permanent Community Impact Fund Board created by Section
119     35A-8-304, and its successors.
120          (3) "Candidate" means one or more of:

121          (a) the state;
122          (b) a county, municipality, school district, local district, special service district, or other
123     political subdivision of the state; and
124          (c) a prosecution district.
125          (4) "Commercial project entity" means a project entity, defined in Subsection [(12)]
126     (17), that:
127          (a) has no taxing authority; and
128          (b) is not supported in whole or in part by and does not expend or disburse tax
129     revenues.
130          (5) "Direct impacts" means an increase in the need for public facilities or services that
131     is attributable to the project or facilities providing additional project capacity, except impacts
132     resulting from the construction or operation of a facility that is:
133          (a) owned by an owner other than the owner of the project or of the facilities providing
134     additional project capacity; and
135          (b) used to furnish fuel, construction, or operation materials for use in the project.
136          (6) "Electric interlocal entity" means an interlocal entity described in Subsection
137     11-13-203(3).
138          (7) "Energy services interlocal entity" means an interlocal entity that is described in
139     Subsection 11-13-203(4).
140          (8) (a) "Estimated electric requirements," when used with respect to a qualified energy
141     services interlocal entity, includes any of the following that meets the requirements of
142     Subsection (8)(b):
143          (i) generation capacity;
144          (ii) generation output; or
145          (iii) an electric energy production facility.
146          (b) An item listed in Subsection (8)(a) is included in "estimated electric requirements"
147     if it is needed by the qualified energy services interlocal entity to perform the qualified energy
148     services interlocal entity's contractual or legal obligations to any of its members.
149          (9) "Governing authority" means a governing board and joint administrator.
150          (10) (a) "Governing board" means the body established in accordance with Section
151     11-13-402 to govern an interlocal entity.

152          (b) "Governing board" does not include a board as defined in Subsection (2).
153          [(9)] (11) "Interlocal entity" means:
154          (a) a Utah interlocal entity, an electric interlocal entity, or an energy services interlocal
155     entity; or
156          (b) a separate legal or administrative entity created under Section 11-13-205.
157          (12) "Joint administrator" means an administrator or joint board described in Section
158     11-13-207 to administer a joint or cooperative undertaking.
159          (13) "Joint or cooperative undertaking" means an undertaking by more than one public
160     agency who have entered into an agreement for a purpose described in Subsection
161     11-13-202(1).
162          (14) "Member" means a public agency that, with another public agency, creates an
163     interlocal entity under Section 11-13-203.
164          [(10)] (15) "Out-of-state public agency" means a public agency as defined in
165     Subsection [(13)] (18)(c), (d), or (e).
166          [(11)] (16) (a) "Project":
167          (i) means an electric generation and transmission facility owned by a Utah interlocal
168     entity or an electric interlocal entity; and
169          (ii) includes fuel or fuel transportation facilities and water facilities owned by that Utah
170     interlocal entity or electric interlocal entity and required for the generation and transmission
171     facility.
172          (b) "Project" includes a project entity's ownership interest in:
173          (i) facilities that provide additional project capacity;
174          (ii) facilities that provide replacement project capacity; and
175          (iii) additional generating, transmission, fuel, fuel transportation, water, or other
176     facilities added to a project.
177          [(12)] (17) "Project entity" means a Utah interlocal entity or an electric interlocal entity
178     that owns a project.
179          [(13)] (18) "Public agency" means:
180          (a) a city, town, county, school district, local district, special service district, an
181     interlocal entity, or other political subdivision of the state;
182          (b) the state or any department, division, or agency of the state;

183          (c) any agency of the United States;
184          (d) any political subdivision or agency of another state or the District of Columbia
185     including any interlocal cooperation or joint powers agency formed under the authority of the
186     law of the other state or the District of Columbia; [and] or
187          (e) any Indian tribe, band, nation, or other organized group or community which is
188     recognized as eligible for the special programs and services provided by the United States to
189     Indians because of their status as Indians.
190          [(14)] (19) "Qualified energy services interlocal entity" means an energy services
191     interlocal entity that at the time that the energy services interlocal entity acquires its interest in
192     facilities providing additional project capacity has at least five members that are Utah public
193     agencies.
194          [(15)] (20) "Replacement project capacity" means electric generating capacity or
195     transmission capacity that:
196          (a) replaces all or a portion of the existing electric generating or transmission capacity
197     of a project; and
198          (b) is provided by a facility that is constructed, reconstructed, converted, repowered, or
199     installed in a location adjacent to or in proximity to or interconnected with the site of a project,
200     regardless of whether the capacity replacing existing capacity is less than or exceeds the
201     generating or transmission capacity of the project prior to installation of the capacity replacing
202     existing capacity.
203          [(16)] (21) "Utah interlocal entity":
204          (a) means an interlocal entity described in Subsection 11-13-203(2); and
205          (b) includes a separate legal or administrative entity created under Laws of Utah 1977,
206     Chapter 47, Section 3, as amended.
207          [(17)] (22) "Utah public agency" means a public agency under Subsection [(13)]
208     (18)(a) or (b).
209          Section 2. Section 11-13-201 is amended to read:
210          11-13-201. Joint exercise of power, privilege, or authority by public agencies --
211     Relationship to the Municipal Cable Television and Public Telecommunications Services
212     Act.
213          (1) (a) Any power, privilege, or authority exercised or capable of exercise by a Utah

214     public agency may be exercised and enjoyed jointly with any other Utah public agency having
215     the same power, privilege, or authority, in a manner consistent with the provisions of this
216     chapter, and jointly with any out-of-state public agency to the extent that the laws governing
217     the out-of-state public agency permit such joint exercise or enjoyment.
218          (b) Any agency of the state government when acting jointly with any public agency
219     may exercise and enjoy all of the powers, privileges, and authority conferred by this chapter
220     upon a public agency.
221          (2) This chapter may not enlarge or expand the authority of a public agency not
222     authorized to offer and provide cable television services and public telecommunications
223     services under Title 10, Chapter 18, Municipal Cable Television and Public
224     Telecommunications Services Act, to offer or provide cable television services and public
225     telecommunications services.
226          Section 3. Section 11-13-202.5 is amended to read:
227          11-13-202.5. Approval of certain agreements -- Review by attorney.
228          (1) Each agreement under Section 11-13-202 and each agreement under Section
229     11-13-212 shall be approved by:
230          (a) except as provided in Subsections (1)(b) and (c), the commission, board, council, or
231     other body or officer vested with the executive power of the public agency;
232          (b) the legislative body of the public agency if the agreement:
233          (i) requires the public agency to adjust its budget for a current or future fiscal year;
234          (ii) includes an out-of-state public agency as a party;
235          (iii) provides for the public agency to acquire or construct:
236          (A) a facility; or
237          (B) an improvement to real property;
238          (iv) provides for the public agency to acquire or transfer title to real property;
239          (v) provides for the public agency to issue bonds;
240          (vi) creates an interlocal entity; or
241          (vii) provides for the public agency to share taxes or other revenues; or
242          (c) if the public agency is a public agency under Subsection 11-13-103[(13)](18)(b),
243     the director or other head of the applicable state department, division, or agency.
244          (2) If an agreement is required under Subsection (1) to be approved by the public

245     agency's legislative body, the resolution or ordinance approving the agreement shall:
246          (a) specify the effective date of the agreement; and
247          (b) if the agreement creates an interlocal entity:
248          (i) declare that it is the legislative body's intent to create an interlocal entity;
249          (ii) describe the public purposes for which the interlocal entity is created; and
250          (iii) describe the powers, duties, and functions of the interlocal entity.
251          (3) The officer or body required under Subsection (1) to approve an agreement shall,
252     before the agreement may take effect, submit the agreement to the attorney authorized to
253     represent the public agency for review as to proper form and compliance with applicable law.
254          Section 4. Section 11-13-203 is amended to read:
255          11-13-203. Interlocal entities -- Agreement to approve the creation of an
256     interlocal entity -- Utah interlocal entity may become electric interlocal entity or energy
257     services interlocal entity.
258          (1) An interlocal entity is:
259          (a) separate from the public agencies that create it;
260          (b) a body politic and corporate; and
261          (c) a political subdivision of the state.
262          (2) (a) Any two or more Utah public agencies may enter into an agreement to approve
263     the creation of a Utah interlocal entity to accomplish the purpose of their joint or cooperative
264     [action] undertaking, including undertaking and financing a facility or improvement to provide
265     the service contemplated by that agreement.
266          (b) The creation, operation, governance, and fiscal procedures of an interlocal entity
267     and its governing authority are governed by this chapter and are not subject to the statutes
268     applicable to its members or other entities.
269          (3) (a) A Utah public agency and one or more public agencies may enter into an
270     agreement to approve the creation of an electric interlocal entity to accomplish the purpose of
271     their joint or cooperative [action] undertaking if that purpose is to participate in the undertaking
272     or financing of:
273          (i) facilities to provide additional project capacity;
274          (ii) common facilities under Title 54, Chapter 9, Electric Power Facilities Act; or
275          (iii) electric generation or transmission facilities.

276          (b) By agreement with one or more public agencies that are not parties to the
277     agreement creating it, a Utah interlocal entity may be reorganized as an electric interlocal entity
278     if:
279          (i) the public agencies that are parties to the agreement creating the Utah interlocal
280     entity authorize, in the same manner required to amend the agreement creating the Utah
281     interlocal entity, the Utah interlocal entity to be reorganized as an electric interlocal entity; and
282          (ii) the purpose of the joint or cooperative [action] undertaking to be accomplished by
283     the electric interlocal entity meets the requirements of Subsection (3)(a).
284          (4) (a) Two or more Utah public agencies may enter into an agreement with one
285     another or with one or more public agencies to approve the creation of an energy services
286     interlocal entity to accomplish the purposes of their joint and cooperative [action] undertaking
287     with respect to facilities, services, and improvements necessary or desirable with respect to the
288     acquisition, generation, transmission, management, and distribution of electric energy for the
289     use and benefit of the public agencies that enter into the agreement.
290          (b) (i) A Utah interlocal entity that was created to facilitate the transmission or supply
291     of electric power may, by resolution adopted by its governing [body] board, elect to become an
292     energy services interlocal entity.
293          (ii) Notwithstanding Subsection (4)(b)(i), a Utah interlocal entity that is also a project
294     entity may not elect to become an energy services interlocal entity.
295          (iii) An election under Subsection (4)(b)(i) does not alter, limit, or affect the validity or
296     enforceability of a previously executed contract, agreement, bond, or other obligation of the
297     Utah interlocal entity making the election.
298          Section 5. Section 11-13-204 (Effective 05/12/15) is amended to read:
299          11-13-204 (Effective 05/12/15). Powers and duties of interlocal entities --
300     Additional powers of energy services interlocal entities -- Length of term of agreement
301     and interlocal entity -- Notice to lieutenant governor -- Recording requirements -- Public
302     Service Commission.
303          (1) (a) An interlocal entity:
304          (i) shall adopt bylaws, policies, and procedures for the regulation of its affairs and the
305     conduct of its business;
306          (ii) may:

307          (A) amend or repeal a bylaw, policy, or procedure;
308          (B) sue and be sued;
309          (C) have an official seal and alter that seal at will;
310          (D) make and execute contracts and other instruments necessary or convenient for the
311     performance of its duties and the exercise of its powers and functions;
312          (E) acquire real or personal property, or an undivided, fractional, or other interest in
313     real or personal property, necessary or convenient for the purposes contemplated in the
314     agreement creating the interlocal entity and sell, lease, or otherwise dispose of that property;
315          (F) directly or by contract with another:
316          (I) own and acquire facilities and improvements or an undivided, fractional, or other
317     interest in facilities and improvements;
318          (II) construct, operate, maintain, and repair facilities and improvements; and
319          (III) provide the services contemplated in the agreement creating the interlocal entity
320     and establish, impose, and collect rates, fees, and charges for the services provided by the
321     interlocal entity;
322          (G) borrow money, incur indebtedness, and issue revenue bonds, notes, or other
323     obligations and secure their payment by an assignment, pledge, or other conveyance of all or
324     any part of the revenues and receipts from the facilities, improvements, or services that the
325     interlocal entity provides;
326          (H) offer, issue, and sell warrants, options, or other rights related to the bonds, notes, or
327     other obligations issued by the interlocal entity; [and]
328          (I) sell or contract for the sale of the services, output, product, or other benefits
329     provided by the interlocal entity to:
330          (I) public agencies inside or outside the state; and
331          (II) with respect to any excess services, output, product, or benefits, any person on
332     terms that the interlocal entity considers to be in the best interest of the public agencies that are
333     parties to the agreement creating the interlocal entity; and
334          (J) create a local disaster recovery fund in the same manner and to the same extent as
335     authorized for a local government in accordance with Section 53-2a-605; and
336          (iii) may not levy, assess, or collect ad valorem property taxes.
337          (b) An assignment, pledge, or other conveyance under Subsection (1)(a)(ii)(G) may, to

338     the extent provided by the documents under which the assignment, pledge, or other conveyance
339     is made, rank prior in right to any other obligation except taxes or payments in lieu of taxes
340     payable to the state or its political subdivisions.
341          [(c) (i) (A) Except as provided in Subsection (1)(c)(i)(B), an interlocal entity is subject
342     to each state law that governs each public agency that is a member of the entity to the extent
343     that the law governs an activity or action of the public agency in which the interlocal entity is
344     also engaged.]
345          [(B) Subsection (1)(c)(i)(A) does not apply if an interlocal entity is expressly exempt
346     from the law.]
347          [(C) A law described in Subsection (1)(c)(i)(A) does not include a local ordinance or
348     other local law.]
349          [(ii) If a state law that governs a public agency that is a member of the interlocal entity
350     conflicts with a state law that governs another member entity, the interlocal entity shall choose
351     and comply with one of the conflicting state laws.]
352          [(iii) (A) If a public agency that is a member of the interlocal entity is an institution of
353     higher education, the interlocal entity shall adopt the policies of the Board of Regents.]
354          [(B) If a policy of the Board of Regents adopted by an interlocal entity in accordance
355     with Subsection (1)(c)(iii)(A) conflicts with a state law that governs a public agency that is a
356     member entity, the state law governs.]
357          (2) An energy services interlocal entity:
358          (a) except with respect to any ownership interest it has in facilities providing additional
359     project capacity, is not subject to:
360          (i) Part 3, Project Entity Provisions; or
361          (ii) Title 59, Chapter 8, Gross Receipts Tax on Certain Corporations Not Required to
362     Pay Corporate Franchise or Income Tax Act; and
363          (b) may:
364          (i) own, acquire, and, by itself or by contract with another, construct, operate, and
365     maintain a facility or improvement for the generation, transmission, and transportation of
366     electric energy or related fuel supplies;
367          (ii) enter into a contract to obtain a supply of electric power and energy and ancillary
368     services, transmission, and transportation services, and supplies of natural gas and fuels

369     necessary for the operation of generation facilities;
370          (iii) enter into a contract with public agencies, investor-owned or cooperative utilities,
371     and others, whether located in or out of the state, for the sale of wholesale services provided by
372     the energy services interlocal entity; and
373          (iv) adopt and implement risk management policies and strategies and enter into
374     transactions and agreements to manage the risks associated with the purchase and sale of
375     energy, including forward purchase and sale contracts, hedging, tolling and swap agreements,
376     and other instruments.
377          (3) Notwithstanding Section 11-13-216, an agreement creating an interlocal entity or
378     an amendment to that agreement may provide that the agreement may continue and the
379     interlocal entity may remain in existence until the latest to occur of:
380          (a) 50 years after the date of the agreement or amendment;
381          (b) five years after the interlocal entity has fully paid or otherwise discharged all of its
382     indebtedness;
383          (c) five years after the interlocal entity has abandoned, decommissioned, or conveyed
384     or transferred all of its interest in its facilities and improvements; or
385          (d) five years after the facilities and improvements of the interlocal entity are no longer
386     useful in providing the service, output, product, or other benefit of the facilities and
387     improvements, as determined under the agreement governing the sale of the service, output,
388     product, or other benefit.
389          (4) (a) The governing body [of each party to the agreement to approve the creation] of
390     a member of an interlocal entity, including an electric interlocal entity and an energy services
391     interlocal entity, under Section 11-13-203 shall:
392          (i) within 30 days after the date of the agreement, jointly file with the lieutenant
393     governor:
394          (A) a copy of a notice of an impending boundary action, as defined in Section
395     67-1a-6.5, that meets the requirements of Subsection 67-1a-6.5(3); and
396          (B) if less than all of the territory of any Utah public agency that is a party to the
397     agreement is included within the interlocal entity, a copy of an approved final local entity plat,
398     as defined in Section 67-1a-6.5; and
399          (ii) upon the lieutenant governor's issuance of a certificate of creation under Section

400     67-1a-6.5:
401          (A) if the interlocal entity is located within the boundary of a single county, submit to
402     the recorder of that county:
403          (I) the original:
404          (Aa) notice of an impending boundary action;
405          (Bb) certificate of creation; and
406          (Cc) approved final local entity plat, if an approved final local entity plat was required
407     to be filed with the lieutenant governor under Subsection (4)(a)(i)(B); and
408          (II) a certified copy of the agreement approving the creation of the interlocal entity; or
409          (B) if the interlocal entity is located within the boundaries of more than a single
410     county:
411          (I) submit to the recorder of one of those counties:
412          (Aa) the original of the documents listed in Subsections (4)(a)(ii)(A)(I)(Aa), (Bb), and
413     (Cc); and
414          (Bb) a certified copy of the agreement approving the creation of the interlocal entity;
415     and
416          (II) submit to the recorder of each other county:
417          (Aa) a certified copy of the documents listed in Subsections (4)(a)(ii)(A)(I)(Aa), (Bb),
418     and (Cc); and
419          (Bb) a certified copy of the agreement approving the creation of the interlocal entity.
420          (b) Upon the lieutenant governor's issuance of a certificate of creation under Section
421     67-1a-6.5, the interlocal entity is created.
422          (c) Until the documents listed in Subsection (4)(a)(ii) are recorded in the office of the
423     recorder of each county in which the property is located, a newly created interlocal entity may
424     not charge or collect a fee for service provided to property within the interlocal entity.
425          (5) Nothing in this section may be construed as expanding the rights of any
426     municipality or interlocal entity to sell or provide retail service.
427          (6) Except as provided in Subsection (7):
428          (a) nothing in this section may be construed to expand or limit the rights of a
429     municipality to sell or provide retail electric service; and
430          (b) an energy services interlocal entity may not provide retail electric service to

431     customers located outside the municipal boundaries of its members.
432          (7) (a) An energy services interlocal entity created before July 1, 2003, that is
433     comprised solely of Utah municipalities and that, for a minimum of 50 years before July 1,
434     2010, provided retail electric service to customers outside the municipal boundaries of its
435     members, may provide retail electric service outside the municipal boundaries of its members
436     if:
437          (i) the energy services interlocal entity:
438          (A) enters into a written agreement with each public utility holding a certificate of
439     public convenience and necessity issued by the Public Service Commission to provide service
440     within an agreed upon geographic area for the energy services interlocal entity to be
441     responsible to provide electric service in the agreed upon geographic area outside the municipal
442     boundaries of the members of the energy services interlocal entity; and
443          (B) obtains a franchise agreement, with the legislative body of the county or other
444     governmental entity for the geographic area in which the energy services interlocal entity
445     provides service outside the municipal boundaries of its members; and
446          (ii) each public utility described in Subsection (7)(a)(i)(A) applies for and obtains from
447     the Public Service Commission approval of the agreement specified in Subsection (7)(a)(i)(A).
448          (b) (i) The Public Service Commission shall, after a public hearing held in accordance
449     with Title 52, Chapter 4, Open and Public Meetings Act, approve an agreement described in
450     Subsection (7)(a)(ii) if it determines that the agreement is in the public interest in that it
451     incorporates the customer protections described in Subsection (7)(c) and the franchise
452     agreement described in Subsection (7)(a)(i)(B) provides a reasonable mechanism using a
453     neutral arbiter or ombudsman for resolving potential future complaints by customers of the
454     energy services interlocal entity.
455          (ii) In approving an agreement, the Public Service Commission shall also amend the
456     certificate of public convenience and necessity of any public utility described in Subsection
457     (7)(a)(i) to delete from the geographic area specified in the certificate or certificates of the
458     public utility the geographic area that the energy services interlocal entity has agreed to serve.
459          (c) In providing retail electric service to customers outside of the municipal boundaries
460     of its members, but not within the municipal boundaries of another municipality that grants a
461     franchise agreement in accordance with Subsection (7)(a)(i)(B), an energy services interlocal

462     entity shall comply with the following:
463          (i) the rates and conditions of service for customers outside the municipal boundaries
464     of the members shall be at least as favorable as the rates and conditions of service for similarly
465     situated customers within the municipal boundaries of the members;
466          (ii) the energy services interlocal entity shall operate as a single entity providing
467     service both inside and outside of the municipal boundaries of its members;
468          (iii) a general rebate, refund, or other payment made to customers located within the
469     municipal boundaries of the members shall also be provided to similarly situated customers
470     located outside the municipal boundaries of the members;
471          (iv) a schedule of rates and conditions of service, or any change to the rates and
472     conditions of service, shall be approved by the governing [body] board of the energy services
473     interlocal entity;
474          (v) before implementation of any rate increase, the governing [body] board of the
475     energy services interlocal entity shall first hold a public meeting to take public comment on the
476     proposed increase, after providing at least 20 days and not more than 60 days' advance written
477     notice to its customers on the ordinary billing and on the Utah Public Notice Website, created
478     by Section 63F-1-701; and
479          (vi) the energy services interlocal entity shall file with the Public Service Commission
480     its current schedule of rates and conditions of service.
481          (d) The Public Service Commission shall make the schedule of rates and conditions of
482     service of the energy services interlocal entity available for public inspection.
483          (e) Nothing in this section:
484          (i) gives the Public Service Commission jurisdiction over the provision of retail
485     electric service by an energy services interlocal entity within the municipal boundaries of its
486     members; or
487          (ii) makes an energy services interlocal entity a public utility under Title 54, Public
488     Utilities.
489          (f) Nothing in this section expands or diminishes the jurisdiction of the Public Service
490     Commission over a municipality or an association of municipalities organized under Title 11,
491     Chapter 13, Interlocal Cooperation Act, except as specifically authorized by this section's
492     language.

493          (g) (i) An energy services interlocal entity described in Subsection (7)(a) retains its
494     authority to provide electric service to the extent authorized by Sections 11-13-202 and
495     11-13-203 and Subsections 11-13-204 (1) through (5).
496          (ii) Notwithstanding Subsection (7)(g)(i), if the Public Service Commission approves
497     the agreement described in Subsection (7)(a)(i), the energy services interlocal entity may not
498     provide retail electric service to customers located outside the municipal boundaries of its
499     members, except for customers located within the geographic area described in the agreement.
500          Section 6. Section 11-13-206 is amended to read:
501          11-13-206. Requirements for agreements for joint or cooperative undertaking.
502          (1) Each agreement under Section 11-13-202, 11-13-203, or 11-13-205 shall specify:
503          (a) its duration;
504          (b) if the agreement creates an interlocal entity:
505          (i) the precise organization, composition, and nature of the interlocal entity;
506          (ii) the powers delegated to the interlocal entity;
507          (iii) the manner in which the interlocal entity is to be governed; and
508          (iv) subject to Subsection (2), the manner in which the members of its governing
509     [body] board are to be appointed or selected;
510          (c) its purpose or purposes;
511          (d) the manner of financing the joint or cooperative undertaking and of establishing
512     and maintaining a budget for it;
513          (e) the permissible method or methods to be employed in accomplishing the partial or
514     complete termination of the agreement and for disposing of property upon such partial or
515     complete termination; [and]
516          (f) the process, conditions, and terms for withdrawal of a participating public agency
517     from the interlocal entity or the joint and cooperative undertaking; and
518          [(f)] (g) any other necessary and proper matters.
519          (2) Each agreement under Section 11-13-203 or 11-13-205 that creates an interlocal
520     entity shall require that Utah public agencies that are parties to the agreement have the right to
521     appoint or select members of the interlocal entity's governing [body] board with a majority of
522     the voting power.
523          Section 7. Section 11-13-207 is amended to read:

524          11-13-207. Additional requirements for agreement not establishing interlocal
525     entity.
526          (1) If an agreement under Section 11-13-202 does not establish an interlocal entity to
527     conduct the joint or cooperative undertaking, the agreement shall, in addition to the items
528     specified in Section 11-13-206, provide for:
529          [(1)] (a) the joint or cooperative undertaking to be administered by:
530          [(a)] (i) an administrator; or
531          [(b)] (ii) a joint board with representation from the public agencies that are parties to
532     the agreement; [and]
533          [(2)] (b) the manner of acquiring, holding, and disposing of real and personal property
534     used in the joint or cooperative undertaking[.];
535          (c) the functions to be performed by the joint or cooperative undertaking; and
536          (d) the powers of the joint administrator.
537          (2) The creation, operation, governance, and fiscal procedures of a joint or cooperative
538     undertaking are governed by this chapter.
539          Section 8. Section 11-13-208 is amended to read:
540          11-13-208. Agreement does not relieve public agency of legal obligation or
541     responsibility -- Exception.
542          (1) Except as provided in Subsection (2), an agreement made under this chapter does
543     not relieve a public agency of an obligation or responsibility imposed upon it by law.
544          (2) If an obligation or responsibility of a public agency is actually and timely
545     performed by a joint [board] or cooperative undertaking or by an interlocal entity created by an
546     agreement made under this chapter, that performance may be offered in satisfaction of the
547     obligation or responsibility.
548          Section 9. Section 11-13-211 is amended to read:
549          11-13-211. Public agencies authorized to provide resources to joint or cooperative
550     undertaking or interlocal entity.
551          A public agency entering into an agreement under this chapter under which [an
552     administrative joint board] a joint or cooperative undertaking is established or an interlocal
553     entity is created [to operate the joint or cooperative undertaking] may:
554          (1) appropriate funds to the [administrative joint board] joint or cooperative

555     undertaking or interlocal entity;
556          (2) sell, lease, give, or otherwise supply tangible and intangible property to the
557     [administrative joint board] joint or cooperative undertaking or interlocal entity; and
558          (3) provide personnel or services for the [administrative joint board] joint or
559     cooperative undertaking or interlocal entity as may be within its legal power to furnish.
560          Section 10. Section 11-13-217 is amended to read:
561          11-13-217. Control and operation of joint facility or improvement provided by
562     agreement.
563          Any facility or improvement jointly owned or jointly operated by any two or more
564     public agencies or acquired or constructed pursuant to an agreement under this chapter may be
565     operated by any one or more of the interested public agencies designated for the purpose or
566     may be operated by a joint [board or commission] or cooperative undertaking or an interlocal
567     entity created for the purpose or through an agreement by an interlocal entity and a public
568     agency receiving service or other benefits from such entity or may be controlled and operated
569     in some other manner, all as may be provided by appropriate agreement. Payment for the cost
570     of such operation shall be made as provided in any such agreement.
571          Section 11. Section 11-13-218 is amended to read:
572          11-13-218. Authority of public agencies or interlocal entities to issue bonds --
573     Applicable provisions.
574          (1) A public agency may, in the same manner as it may issue bonds for its individual
575     acquisition of a facility or improvement or for constructing, improving, or extending a facility
576     or improvement, issue bonds to:
577          (a) acquire an interest in a jointly owned facility or improvement, a combination of a
578     jointly owned facility or improvement, or any other facility or improvement; or
579          (b) pay all or part of the cost of constructing, improving, or extending a jointly owned
580     facility or improvement, a combination of a jointly owned facility or improvement, or any other
581     facility or improvement.
582          (2) (a) An interlocal entity may issue bonds or notes under a resolution, trust indenture,
583     or other security instrument for the purpose of:
584          (i) financing its facilities or improvements; or
585          (ii) providing for or financing an energy efficiency upgrade or a renewable energy

586     system in accordance with Title 11, Chapter 42, Assessment Area Act.
587          (b) The bonds or notes may be sold at public or private sale, mature at such times and
588     bear interest at such rates, and have such other terms and security as the entity determines.
589          (c) [Such bonds] The bonds or notes described in Subsection (2)(a) are not a debt of
590     any public agency that is a party to the agreement.
591          (3) The governing [body, as defined in Section 11-13-219, of an interlocal entity] board
592     may, by resolution, delegate to one or more officers of the interlocal entity or to a committee of
593     designated members of the governing [body] board the authority to:
594          (a) in accordance with and within the parameters set forth in the resolution, approve the
595     final interest rate, price, principal amount, maturity, redemption features, or other terms of a
596     bond or note; and
597          (b) approve and execute all documents relating to the issuance of the bond or note.
598          (4) Bonds and notes issued under this chapter are declared to be negotiable instruments
599     and their form and substance need not comply with the Uniform Commercial Code.
600          (5) (a) An interlocal entity shall issue bonds in accordance with Chapter 14, Local
601     Government Bonding Act, or Chapter 27, Utah Refunding Bond Act, as applicable.
602          (b) An interlocal entity is a public body as defined in Section 11-30-2.
603          Section 12. Section 11-13-218.1 is enacted to read:
604          11-13-218.1. Pledge of revenues to pay for bonds.
605          (1) In addition to any assignment, pledge, or conveyance made in accordance with
606     Subsection 11-13-204(1)(a)(i)(G), bonds issued by an interlocal entity may be payable from
607     and secured by the pledge of all or any specified part of:
608          (a) the revenues to be derived by the interlocal entity from providing its services and
609     from the operation of its facilities and other properties;
610          (b) sales and use taxes, property taxes, and other taxes;
611          (c) federal, state, or local grants; or
612          (d) other funds legally available to the interlocal entity.
613          (2) An assignment, pledge, or conveyance made by an interlocal entity to secure bonds
614     shall be created and perfected in accordance with, and have the effect provided in, Section
615     11-14-501.
616          Section 13. Section 11-13-219 is amended to read:

617          11-13-219. Publication of resolutions or agreements -- Contesting legality of
618     resolution or agreement.
619          (1) As used in this section:
620          (a) "Enactment" means:
621          (i) a resolution adopted or proceedings taken by a governing body under the authority
622     of this chapter, and includes a resolution, indenture, or other instrument providing for the
623     issuance of bonds; and
624          (ii) an agreement or other instrument that is authorized, executed, or approved by a
625     governing body under the authority of this chapter.
626          (b) "Governing body" means:
627          (i) the legislative body of a public agency; [and] or
628          (ii) the governing [body] authority of an interlocal entity [created] established under
629     this chapter.
630          [(d)] (c) "Notice of agreement" means the notice authorized by Subsection (3)(c).
631          [(c)] (d) "Notice of bonds" means the notice authorized by Subsection (3)(d).
632          (e) "Official newspaper" means the newspaper selected by a governing body under
633     Subsection (4)(b) to publish its enactments.
634          (2) Any enactment taken or made under the authority of this chapter is not subject to
635     referendum.
636          (3) (a) A governing body need not publish any enactment taken or made under the
637     authority of this chapter.
638          (b) A governing body may provide for the publication of any enactment taken or made
639     by it under the authority of this chapter according to the publication requirements established
640     by this section.
641          (c) (i) If the enactment is an agreement, document, or other instrument, or a resolution
642     or other proceeding authorizing or approving an agreement, document, or other instrument, the
643     governing body may, instead of publishing the full text of the agreement, resolution, or other
644     proceeding, publish a notice of agreement containing:
645          (A) the names of the parties to the agreement;
646          (B) the general subject matter of the agreement;
647          (C) the term of the agreement;

648          (D) a description of the payment obligations, if any, of the parties to the agreement;
649     and
650          (E) a statement that the resolution and agreement will be available for review at the
651     governing body's principal place of business during regular business hours for 30 days after the
652     publication of the notice of agreement.
653          (ii) The governing body shall make a copy of the resolution or other proceeding and a
654     copy of the contract available at its principal place of business during regular business hours
655     for 30 days after the publication of the notice of agreement.
656          (d) If the enactment is a resolution or other proceeding authorizing the issuance of
657     bonds, the governing body may, instead of publishing the full text of the resolution or other
658     proceeding and the documents pertaining to the issuance of bonds, publish a notice of bonds
659     that contains the information described in Subsection 11-14-316(2).
660          (4) (a) If the governing body chooses to publish an enactment, notice of bonds, or
661     notice of agreement, the governing body shall comply with the requirements of this Subsection
662     (4).
663          (b) If there is more than one newspaper of general circulation, or more than one
664     newspaper, published within the boundaries of the governing body, the governing body may
665     designate one of those newspapers as the official newspaper for all publications made under
666     this section.
667          (c) (i) (A) The governing body shall publish the enactment, notice of bonds, or notice
668     of agreement in:
669          (I) the official newspaper;
670          (II) the newspaper published in the municipality in which the principal office of the
671     governmental entity is located; or
672          (III) if no newspaper is published in that municipality, in a newspaper having general
673     circulation in the municipality; and
674          (B) as required in Section 45-1-101.
675          (ii) The governing body may publish the enactment, notice of bonds, or notice of
676     agreement:
677          (A) (I) in a newspaper of general circulation; or
678          (II) in a newspaper that is published within the boundaries of any public agency that is

679     a party to the enactment or agreement; and
680          (B) as required in Section 45-1-101.
681          (5) (a) Any person in interest may contest the legality of an enactment or any action
682     performed or instrument issued under the authority of the enactment for 30 days after the
683     publication of the enactment, notice of bonds, or notice of agreement.
684          (b) After the 30 days have passed, no one may contest the regularity, formality, or
685     legality of the enactment or any action performed or instrument issued under the authority of
686     the enactment for any cause whatsoever.
687          Section 14. Section 11-13-222 is amended to read:
688          11-13-222. Employees performing services under agreements.
689          (1) [Each officer and] An employee performing services for two or more public
690     agencies under an agreement under this chapter shall be considered to be:
691          (a) [an officer or] an employee of the public agency employing the [officer or]
692     employee's services even though the [officer or] employee performs those functions outside of
693     the territorial limits of any one of the contracting public agencies; and
694          (b) an [officer or] employee of the public agencies under the provisions of Title 63G,
695     Chapter 7, Governmental Immunity Act of Utah.
696          (2) Unless otherwise provided in an agreement that creates an interlocal entity, each
697     employee of a public agency that is a party to the agreement shall:
698          (a) remain an employee of that public agency, even though assigned to perform
699     services for another public agency under the agreement; and
700          (b) continue to be governed by the rules, rights, entitlements, and status that apply to an
701     employee of that public agency.
702          (3) All of the privileges, immunities from liability, exemptions from laws, ordinances,
703     and rules, pensions and relief, disability, workers compensation, and other benefits that apply
704     to an officer, agent, or employee of a public agency while performing functions within the
705     territorial limits of the public agency apply to the same degree and extent when the officer,
706     agent, or employee performs functions or duties under the agreement outside the territorial
707     limits of that public agency.
708          Section 15. Section 11-13-224 is amended to read:
709          11-13-224. Utah interlocal entity for alternative fuel vehicles and facilities.

710          (1) As used in this section, "commission" means the Public Service Commission of
711     Utah, established in Section 54-1-1.
712          (2) The governing [body] board of a Utah interlocal entity created to facilitate the
713     conversion to alternative fuel vehicles or to facilitate the construction, operation, and
714     maintenance of facilities for alternative fuel vehicles, or both, shall consist of:
715          (a) an individual from the executive branch of state government, appointed by the
716     governor;
717          (b) a member of the Senate, appointed by the president of the Senate;
718          (c) a member of the House of Representatives, appointed by the speaker of the House
719     of Representatives;
720          (d) an individual from the Utah Association of Counties, appointed by the president of
721     the Senate;
722          (e) an individual from the Utah League of Cities and Towns, appointed by the speaker
723     of the House of Representatives;
724          (f) an individual employed by a school district in the state, appointed by the governor;
725          (g) an individual appointed by the public transit district under Title 17B, Chapter 2a,
726     Part 8, Public Transit District Act, with the largest budget of all public transit districts in the
727     state;
728          (h) an individual employed by a gas corporation in the state, appointed by the
729     governor; and
730          (i) a representative of the Utah Petroleum Marketers and Retailers Association,
731     appointed by the governor.
732          (3) A Utah interlocal entity described in Subsection (2):
733          (a) may contribute toward the funding required for the construction, operation, and
734     maintenance of facilities for alternative fuel vehicles that are used by or benefit the interlocal
735     entity; and
736          (b) shall participate with the commission in proceedings the commission conducts
737     under Section 54-1-13.
738          Section 16. Section 11-13-225 is enacted to read:
739          11-13-225. Establishment of interlocal entity personnel system.
740          (1) An interlocal entity shall establish a system of personnel administration for the

741     interlocal entity as provided in this section.
742          (2) The interlocal entity shall administer the system described in Subsection (1) in a
743     manner that will effectively provide for:
744          (a) recruiting, selecting, and advancing employees on the basis of the employee's
745     relative ability, knowledge, and skills, including open consideration of qualified applicants for
746     initial appointment;
747          (b) equitable and adequate compensation;
748          (c) employee training as needed to assure high-quality performance;
749          (d) (i) retaining an employee on the basis of the adequacy of the employee's
750     performance; and
751          (ii) separation of an employee whose inadequate performance cannot be corrected;
752          (e) fair treatment of an applicant or employee in all aspects of personnel administration
753     without regard to race, color, religion, sex, national origin, political affiliation, age, or
754     disability, and with proper regard for the applicant's or employee's privacy and constitutional
755     rights; and
756          (f) a formal procedure for processing the appeals and grievances of an employee
757     without discrimination, coercion, restraint, or reprisal.
758          Section 17. Section 11-13-226 is enacted to read:
759          11-13-226. Competitive procurement.
760          The governing board of each interlocal entity shall adopt rules or policies for the
761     competitive public procurement of goods and services required for the operation of the
762     interlocal entity.
763          Section 18. Section 11-13-315 (Effective 05/12/15) is amended to read:
764          11-13-315 (Effective 05/12/15). Taxed interlocal entity.
765          (1) As used in this section:
766          (a) "Asset" means funds, money, an account, real or personal property, or personnel.
767          (b) "Public asset" means:
768          (i) an asset used by a public entity;
769          (ii) tax revenue;
770          (iii) state funds; or
771          (iv) public funds.

772          (c) (i) "Taxed interlocal entity" means a project entity that:
773          (A) is not exempt from a tax or fee in lieu of taxes imposed in accordance with Part 3,
774     Project Entity Provisions;
775          (B) does not receive a payment of funds from a federal agency or office, state agency or
776     office, political subdivision, or other public agency or office other than a payment that does not
777     materially exceed the greater of the fair market value and the cost of a service provided or
778     property conveyed by the project entity; and
779          (C) does not receive, expend, or have the authority to compel payment from tax
780     revenue.
781          (ii) "Taxed interlocal entity" includes an interlocal entity that:
782          (A) was created before 1981 for the purpose of providing power supply at wholesale to
783     its members;
784          (B) does not receive a payment of funds from a federal agency or office, state agency or
785     office, political subdivision, or other public agency or office other than a payment that does not
786     materially exceed the greater of the fair market value and the cost of a service provided or
787     property conveyed by the interlocal entity; and
788          (C) does not receive, expend, or have the authority to compel payment from tax
789     revenue.
790          (d) (i) "Use" means to use, own, manage, hold, keep safe, maintain, invest, deposit,
791     administer, receive, expend, appropriate, disburse, or have custody.
792          (ii) "Use" includes, when constituting a noun, the corresponding nominal form of each
793     term in Subsection (1)(d)(i), individually.
794          (2) Notwithstanding any other provision of law, the use of an asset by a taxed interlocal
795     entity does not constitute the use of a public asset.
796          (3) Notwithstanding any other provision of law, a taxed interlocal entity's use of an
797     asset that was a public asset prior to the taxed interlocal entity's use of the asset does not
798     constitute a taxed interlocal entity's use of a public asset.
799          (4) Notwithstanding any other provision of law, an official of a project entity is not a
800     public treasurer.
801          (5) Notwithstanding any other provision of law, a taxed interlocal entity's governing
802     body, as described in Section 11-13-206, shall determine and direct the use of an asset by the

803     taxed interlocal entity.
804          (6) A taxed interlocal entity is not subject to the provisions of Title 63G, Chapter 6a,
805     Utah Procurement Code.
806          (7) (a) A taxed interlocal entity is not a participating local entity as defined in Section
807     63A-3-401.
808          (b) For each fiscal year of a taxed interlocal entity, the taxed interlocal entity shall
809     provide:
810          (i) the taxed interlocal entity's financial statements for and as of the end of the fiscal
811     year and the prior fiscal year, including the taxed interlocal entity's balance sheet as of the end
812     of the fiscal year and the prior fiscal year, and the related statements of revenues and expenses
813     and of cash flows for the fiscal year; and
814          (ii) the accompanying auditor's report and management's discussion and analysis with
815     respect to the taxed interlocal entity's financial statements for and as of the end of the fiscal
816     year.
817          (c) The taxed interlocal entity shall provide the information described in Subsections
818     (7)(b)(i) and(ii):
819          (i) in a manner described in Subsection 63A-3-405(3); and
820          (ii) within a reasonable time after the taxed interlocal entity's independent auditor
821     delivers to the taxed interlocal entity's governing body the auditor's report with respect to the
822     financial statements for and as of the end of the fiscal year.
823          (d) Notwithstanding Subsections (7)(b) and (c) or a taxed interlocal entity's compliance
824     with one or more of the requirements of Title 63A, Chapter 3, Division of Finance:
825          (i) the taxed interlocal entity is not subject to Title 63A, Chapter 3, Division of
826     Finance; and
827          (ii) the information described in Subsection (7)(b)(i) or (ii) does not constitute public
828     financial information as defined in Section 63A-3-401.
829          (8) (a) A taxed interlocal entity's governing body is not a governing board as defined in
830     Section 51-2a-102.
831          (b) A taxed interlocal entity is not subject to the provisions of Title 51, Chapter 2a,
832     Accounting Reports from Political Subdivisions, Interlocal Organizations, and Other Local
833     Entities Act.

834          (9) (a) A taxed interlocal entity is not subject to the following provisions [of
835     Subsection]:
836          (i) Subsections 11-13-204(1)(a)(i) or [(c).] (ii)(J);
837          (ii) Subsection 11-13-206(1)(f);
838          (iii) Subsection 11-13-218(5);
839          (iv) Section 11-13-225;
840          (v) Section 11-13-226; or
841          (vi) Section 53-2a-605.
842          (b) In addition to the powers provided in Subsection 11-13-204(1)(a)(ii), a taxed
843     interlocal entity may, for the regulation of the entity's affairs and conduct of its business, adopt,
844     amend, or repeal bylaws, policies, or procedures.
845          Section 19. Section 11-13-401 is enacted to read:
846     
Part 4. Governance

847          11-13-401. Application.
848          (1) Except as provided in Subsection (2), and notwithstanding any other provision of
849     law, this part applies to a governing authority created under this chapter.
850          (2) This part does not apply to:
851          (a) a taxed interlocal entity, as defined in Section 11-13-315; or
852          (b) a project entity.
853          Section 20. Section 11-13-402 is enacted to read:
854          11-13-402. Governance -- Powers of governing authority.
855          (1) If an interlocal agreement does not establish an interlocal entity to conduct the joint
856     or cooperative undertaking, the joint or cooperative undertaking shall be administered by a
857     joint administrator established in accordance with the interlocal agreement and Section
858     11-13-207.
859          (2) If an interlocal entity has been established to conduct the joint or cooperative
860     undertaking, the interlocal entity shall be governed by a governing board as established in the
861     interlocal agreement.
862          (3) A governing board:
863          (a) shall manage and direct the business and affairs of the interlocal entity; and
864          (b) has and may exercise a power or perform a function as provided in the interlocal

865     agreement and this chapter that is necessary to accomplish the interlocal entity's purpose unless
866     otherwise specified by this chapter or the interlocal agreement, including the following:
867          (i) delegate to an interlocal entity employee or officer the authority to exercise a power
868     or to perform a function of the interlocal entity;
869          (ii) control or direct litigation to which the interlocal entity is a party or in which it is
870     otherwise involved;
871          (iii) adopt bylaws for the orderly functioning of the governing board;
872          (iv) adopt and enforce rules and regulations for the orderly operation of the interlocal
873     entity or for carrying out the interlocal entity's purposes; and
874          (v) establish and impose fees for services provided by the interlocal entity.
875          (4) Each member of a governing board has and owes a fiduciary duty to the interlocal
876     entity at large.
877          (5) (a) Unless otherwise provided in the interlocal agreement, a governing board:
878          (i) shall elect from its board members a chair; and
879          (ii) subject to Subsection (5)(b), may elect other officers as the board considers
880     appropriate.
881          (b) (i) One person may not hold the office of chair and treasurer, treasurer and clerk, or
882     clerk and chair.
883          (ii) Unless otherwise provided in the interlocal agreement:
884          (A) an officer serves at the pleasure of the governing board; and
885          (B) the governing board may designate a set term for each office.
886          Section 21. Section 11-13-403 is enacted to read:
887          11-13-403. Annual compensation -- Per diem compensation -- Participation in
888     group insurance plan -- Reimbursement of expenses.
889          (1) (a) A member of a governing authority may receive compensation for service on the
890     governing authority, as determined by the governing authority.
891          (b) The governing authority determining the amount of compensation under this
892     Subsection (1) shall:
893          (i) establish the compensation amount as part of the interlocal entity's or joint or
894     cooperative undertaking's annual budget adoption;
895          (ii) specifically identify the annual compensation of each governing authority member

896     in the tentative budget; and
897          (iii) approve the annual compensation at the public meeting at which the budget is
898     adopted.
899          (c) (i) If authorized by the interlocal agreement and as determined by the governing
900     authority, a member of the governing authority may participate in a group insurance plan
901     provided to employees of the interlocal entity on the same basis as employees of the interlocal
902     entity.
903          (ii) The amount that the interlocal entity pays to provide a governing authority member
904     with coverage under a group insurance plan shall be included as part of the member's
905     compensation for purposes of Subsection (1)(b).
906          (d) The amount that an interlocal entity pays for employer contributions for Medicare
907     and Social Security, if a member of the governing authority is treated as an employee for
908     federal tax purposes, does not constitute compensation under Subsection (1)(a) or (b).
909          (e) A governing authority member who is appointed by a public agency may not
910     receive compensation for governing authority service unless the public agency annually
911     approves the governing authority member's receipt of the compensation after an analysis of the
912     duties and responsibilities of service on the governing authority.
913          (2) In addition to the compensation provided under Subsection (1), the governing
914     authority may elect to allow a member to receive per diem and travel expenses for up to 12
915     meetings or activities per year in accordance with:
916          (a) Section 63A-3-106;
917          (b) Section 63A-3-107; or
918          (c) a rule adopted by the Division of Finance pursuant to Sections 63A-3-106 and
919     63A-3-107.
920          Section 22. Section 11-13-404 is enacted to read:
921          11-13-404. Quorum of the governing authority -- Meetings of the governing
922     authority.
923          (1) (a) (i) Except as provided in Subsection (1)(b) or in the interlocal agreement
924     creating the interlocal entity or joint or cooperative undertaking, a majority of the governing
925     authority constitutes a quorum for the transaction of governing authority business, and action
926     by a majority of a quorum constitutes action of the governing authority.

927          (ii) An otherwise valid action of the governing authority is not made invalid because of
928     the method chosen by the governing authority to take or memorialize the action.
929          (b) Except as limited or required by the interlocal agreement creating the interlocal
930     entity or joint or cooperative undertaking, a governing authority may adopt bylaws or other
931     rules that require more than a majority to constitute a quorum or that require action by more
932     than a majority of a quorum to constitute action by the governing authority.
933          (2) The governing authority shall hold such regular and special meetings as the
934     governing authority determines at a location that the governing authority determines.
935          (3) (a) Each meeting of the governing authority shall comply with Title 52, Chapter 4,
936     Open and Public Meetings Act, regardless of whether an interlocal entity or joint or
937     cooperative undertaking is supported in whole or part by tax revenue.
938          (b) Subject to Title 52, Chapter 4, Open and Public Meetings Act, a governing
939     authority shall:
940          (i) adopt rules of order and procedure to govern a public meeting of the governing
941     authority;
942          (ii) conduct a public meeting in accordance with the rules of order and procedure
943     described in Subsection (3)(b)(i); and
944          (iii) make the rules of order and procedure described in Subsection (3)(b)(i) available
945     to the public:
946          (A) at each meeting of the governing authority; and
947          (B) on the interlocal entity or joint or cooperative undertaking's public website, if
948     available.
949          Section 23. Section 11-13-501 is enacted to read:
950     
Part 5. Fiscal Procedures for Interlocal Entities

951          11-13-501. Definitions.
952          As used in this part:
953          (1) "Appropriation" means an allocation of money by the governing board in a budget
954     for a specific purpose.
955          (2) "Budget" means a plan of financial operations for a fiscal year that embodies
956     estimates of proposed expenditures for given purposes and the proposed means of financing
957     them, and may refer to the budget of a particular fund for which a budget is required by law or

958     may refer collectively to the budgets for all required funds.
959          (3) "Budget officer" means the person appointed by an interlocal entity governing
960     board to prepare the budget for the interlocal entity.
961          (4) "Budget year" means the fiscal year for which a budget is prepared.
962          (5) "Calendar year entity" means an interlocal entity whose fiscal year begins January 1
963     and ends December 31 of each calendar year as described in Section 11-13-503.
964          (6) "Current year" means the fiscal year in which a budget is prepared and adopted, and
965     which is the fiscal year immediately preceding the budget year.
966          (7) "Deficit" means the occurrence when expenditures exceed revenues.
967          (8) "Enterprise fund" has the meaning provided in generally accepted accounting
968     principles.
969          (9) "Estimated revenue" means the amount of revenue estimated to be received from all
970     sources during the budget year in each fund for which a budget is being prepared.
971          (10) "Fiscal year" means the annual period for accounting for fiscal operations in an
972     interlocal entity.
973          (11) "Fiscal year entity" means an interlocal entity whose fiscal year begins July 1 of
974     each year and ends on June 30 of the following year as described in Section 11-13-503.
975          (12) "Fund" has the meaning provided in generally accepted accounting principles.
976          (13) "Fund balance" has the meaning provided in generally accepted accounting
977     principles.
978          (14) "General fund" has the meaning provided in generally accepted accounting
979     principles.
980          (15) "Generally accepted accounting principles" means the accounting principles and
981     standards promulgated from time to time by authoritative bodies in the United States.
982          (16) "Governmental fund" has the meaning provided in generally accepted accounting
983     principles.
984          (17) "Interfund loan" means a transfer of assets from one fund to another, subject to
985     future repayment.
986          (18) "Interlocal entity general fund" means the general fund of an interlocal entity.
987          (19) "Internal service funds" has the meaning provided in generally accepted
988     accounting principles.

989          (20) "Last completed fiscal year" means the fiscal year immediately preceding the
990     current fiscal year.
991          (21) "Proprietary fund" means enterprise funds and the internal service funds of an
992     interlocal entity.
993          (22) "Public funds" means any money or payment collected or received by an interlocal
994     entity, including money or payment for services or goods provided by the interlocal entity.
995          (23) "Retained earnings" has the meaning provided in generally accepted accounting
996     principles.
997          (24) "Special fund" means an interlocal entity fund other than the interlocal entity
998     general fund.
999          Section 24. Section 11-13-502 is enacted to read:
1000          11-13-502. Application -- Conflicts with federal law.
1001          (1) This part does not apply to a taxed interlocal entity as defined in Section 11-13-315.
1002          (2) Notwithstanding any other provision of law, this part governs an interlocal entity's
1003     fiscal procedures but only to the extent that the provision does not conflict or cause an
1004     interlocal entity to be noncompliant with federal law.
1005          Section 25. Section 11-13-503 is enacted to read:
1006          11-13-503. Fiscal year.
1007          The fiscal year of an interlocal entity shall be, as determined by the governing board:
1008          (1) the calendar year; or
1009          (2) the period from July 1 to the following June 30.
1010          Section 26. Section 11-13-504 is enacted to read:
1011          11-13-504. Uniform accounting system.
1012          An interlocal entity shall:
1013          (1) establish and maintain the interlocal entity's accounting records, and financial
1014     statements prepared from those records, as required by generally accepted accounting
1015     principles; and
1016          (2) adopt and implement internal accounting controls in light of the needs and
1017     resources of the interlocal entity.
1018          Section 27. Section 11-13-505 is enacted to read:
1019          11-13-505. Funds and account groups maintained.

1020          An interlocal entity shall establish and maintain, according to its own accounting needs,
1021     some or all of the funds and account groups in its system of accounts, as required by generally
1022     accepted accounting principles.
1023          Section 28. Section 11-13-506 is enacted to read:
1024          11-13-506. Budget required for certain funds -- Capital projects fund.
1025          (1) The budget officer shall prepare for each budget year a budget, subject to Section
1026     11-13-507, for each of the following funds, to the extent applicable:
1027          (a) the general fund;
1028          (b) each special revenue fund, as that term is used in generally accepted accounting
1029     principles;
1030          (c) each debt service fund, as that term is used in generally accepted accounting
1031     principles;
1032          (d) each capital projects fund, as that term is used in generally accepted accounting
1033     principles;
1034          (e) each proprietary fund in accordance with Section 11-13-525; and
1035          (f) if the interlocal entity has a local fund, as defined in Section 53-2a-602, the local
1036     fund.
1037          (2) (a) A major capital improvement financed by general obligation bonds, capital
1038     grants, or interfund transfers shall use a capital projects fund budget unless the improvement
1039     financed is to be used for proprietary type activities.
1040          (b) The interlocal entity shall prepare a separate budget for the term of a capital
1041     improvement described in Subsection (2)(a) as well as the annual budget required under
1042     Subsection (1).
1043          Section 29. Section 11-13-507 is enacted to read:
1044          11-13-507. Total of revenues to equal expenditures.
1045          (1) The budget under Section 11-13-506 shall provide a financial plan for the budget
1046     year.
1047          (2) Each budget shall specify in tabular form:
1048          (a) estimates of all anticipated revenues; and
1049          (b) all appropriations for expenditures.
1050          (3) The total of the anticipated revenues shall equal the total of appropriated

1051     expenditures.
1052          Section 30. Section 11-13-508 is enacted to read:
1053          11-13-508. Tentative budget to be prepared -- Review by governing body.
1054          (1) On or before the first regularly scheduled meeting of the governing board in
1055     November for a calendar year entity and May for a fiscal year entity, the budget officer of an
1056     interlocal entity shall prepare for the ensuing year and file with the governing board a tentative
1057     budget for each fund for which a budget is required.
1058          (2) (a) Each tentative budget under Subsection (1) shall provide in tabular form:
1059          (i) actual revenues and expenditures for the last completed fiscal year;
1060          (ii) estimated total revenues and expenditures for the current fiscal year; and
1061          (iii) the budget officer's estimates of revenues and expenditures for the budget year.
1062          (b) The budget officer shall estimate:
1063          (i) the amount of revenue available to serve the needs of each fund;
1064          (ii) the portion to be derived from all sources other than general property taxes; and
1065          (iii) the portion that shall be derived from general property taxes.
1066          (3) The tentative budget, when filed by the budget officer with the governing board,
1067     shall contain the estimates of expenditures together with specific work programs and any other
1068     supporting data required by this part or requested by the governing board.
1069          (4) (a) Subject to Subsection (4)(b), the governing board:
1070          (i) shall review, consider, and adopt the tentative budget in any regular meeting or
1071     special meeting called for that purpose; and
1072          (ii) may amend or revise the tentative budget in any manner that the board considers
1073     advisable prior to the public hearing under Section 11-13-509.
1074          (b) The governing board may not reduce below the legal minimum requirement an
1075     appropriation required for debt retirement and interest or reduction of any existing deficits
1076     under Section 11-13-513, or otherwise required by law.
1077          (5) If a new interlocal entity is created, the governing board shall:
1078          (a) prepare a budget covering the period from the date of incorporation to the end of
1079     the fiscal year;
1080          (b) substantially comply with all other provisions of this part with respect to notices
1081     and hearings; and

1082          (c) pass the budget as soon after incorporation as feasible.
1083          Section 31. Section 11-13-509 is enacted to read:
1084          11-13-509. Hearing to consider adoption -- Notice.
1085          (1) At the meeting at which the tentative budget is adopted, the governing board shall:
1086          (a) establish the time and place of a public hearing to consider its adoption; and
1087          (b) except as provided in Subsection (2) or (5), order that notice of the hearing:
1088          (i) be published, at least seven days before the day of the hearing, in at least one issue
1089     of a newspaper of general circulation in a county in which the interlocal entity provides service
1090     to the public or in which its members are located, if such a newspaper is generally circulated in
1091     the county or counties; and
1092          (ii) be published at least seven days before the day of the hearing on the Utah Public
1093     Notice Website created in Section 63F-1-701.
1094          (2) If the budget hearing is held in conjunction with a tax increase hearing, the notice
1095     required in Subsection (1)(b):
1096          (a) may be combined with the notice required under Section 59-2-919; and
1097          (b) shall be published in accordance with the advertisement provisions of Section
1098     59-2-919.
1099          (3) Proof that notice was given in accordance with Subsection (1)(b), (2), or (5) is
1100     prima face evidence that notice was properly given.
1101          (4) If a notice required under Subsection (1)(b), (2), or (5) is not challenged within 30
1102     days after the day on which the hearing is held, the notice is adequate and proper.
1103          (5) A governing board of an interlocal entity with an annual operating budget of less
1104     than $250,000 may satisfy the notice requirements in Subsection (1)(b) by:
1105          (a) mailing a written notice, postage prepaid, to each voter in an interlocal entity; and
1106          (b) posting the notice in three public places within the interlocal entity's service area.
1107          Section 32. Section 11-13-510 is enacted to read:
1108          11-13-510. Public hearing on tentatively adopted budget.
1109          At the time and place advertised, or at any time or any place to which the public hearing
1110     may be adjourned, the governing board shall:
1111          (1) hold a public hearing on the budgets tentatively adopted; and
1112          (2) give interested persons in attendance an opportunity to be heard on the estimates of

1113     revenues and expenditures or any item in the tentative budget of any fund.
1114          Section 33. Section 11-13-511 is enacted to read:
1115          11-13-511. Continuing authority of governing body.
1116          After the conclusion of the public hearing held in accordance with Section 11-13-510,
1117     the governing board:
1118          (1) may:
1119          (a) continue to review the tentative budget;
1120          (b) insert any new item; or
1121          (c) increase or decrease items of expenditure in the tentative budget; and
1122          (2) shall adopt a final budget.
1123          Section 34. Section 11-13-512 is enacted to read:
1124          11-13-512. Accumulated fund balances -- Limitations -- Excess balances --
1125     Unanticipated excess of revenues -- Reserves for capital projects.
1126          (1) (a) An interlocal entity may accumulate retained earnings or fund balances, as
1127     appropriate, in any fund.
1128          (b) For the interlocal entity general fund only, an accumulated fund balance at the end
1129     of a budget year may be used only:
1130          (i) to provide working capital to finance expenditures from the beginning of the budget
1131     year until general property taxes or other applicable revenues are collected, subject to
1132     Subsection (1)(c);
1133          (ii) to provide a resource to meet emergency expenditures under Section 11-13-522; or
1134          (iii) to cover a pending year-end excess of expenditures over revenues from an
1135     unavoidable shortfall in revenues, subject to Subsection (1)(d).
1136          (c) Subsection (1)(b)(i) may not be construed to authorize an interlocal entity to
1137     appropriate a fund balance for budgeting purposes, except as provided in Subsection (4).
1138          (d) Subsection (1)(b)(iii) may not be construed to authorize an interlocal entity to
1139     appropriate a fund balance to avoid an operating deficit during a budget year except:
1140          (i) as provided under Subsection (4); or
1141          (ii) for emergency purposes under Section 11-13-522.
1142          (2) The accumulation of a fund balance in the interlocal entity general fund may not
1143     exceed the greater of:

1144          (a) 100% of the current year's property tax collected by the interlocal entity; or
1145          (b) (i) 25% of the total interlocal entity general fund revenues for an interlocal entity
1146     with an annual interlocal entity general fund budget greater than $100,000; or
1147          (ii) 50% of the total interlocal entity general fund revenues for an interlocal entity with
1148     an annual interlocal entity general fund budget equal to or less than $100,000.
1149          (3) If the interlocal entity general fund balance at the close of a fiscal year exceeds the
1150     amount permitted under Subsection (2), the interlocal entity shall appropriate the excess in the
1151     manner provided in Section 11-13-513.
1152          (4) Any interlocal entity general fund balance in excess of 5% of the total revenues of
1153     the interlocal entity general fund may be utilized for budget purposes.
1154          (5) (a) Within a capital projects fund the governing board may, in a budget year,
1155     appropriate from estimated revenue or a fund balance to a reserve account for capital projects
1156     for the purpose of financing future specific capital projects, including new construction, capital
1157     repairs, replacement, and maintenance, under a formal long-range capital plan adopted by the
1158     governing board.
1159          (b) An interlocal entity may allow a reserve amount under Subsection (5)(a) to
1160     accumulate from year to year until the accumulated total is sufficient to permit economical
1161     expenditure for the specified purposes.
1162          (c) An interlocal entity may disburse from a reserve account under Subsection (5)(a)
1163     only by a budget appropriation adopted in the manner provided by this part.
1164          (d) Expenditures from a reserve account described in Subsection (5)(a) shall conform
1165     to all requirements of this part relating to execution and control of budgets.
1166          Section 35. Section 11-13-513 is enacted to read:
1167          11-13-513. Appropriations not to exceed estimated expendable revenue --
1168     Determination of revenue -- Appropriations for existing deficits.
1169          (1) The governing board of an interlocal entity may not make an appropriation in the
1170     final budget of a fund in excess of the estimated expendable revenue for the budget year of the
1171     fund.
1172          (2) An interlocal entity determining the estimated expendable revenue of the interlocal
1173     entity general fund for the budget year shall include as an appropriation from the fund balance
1174     that portion of the fund balance at the close of the last completed fiscal year, not previously

1175     included in the budget of the current year, that exceeds the amount permitted in Section
1176     11-13-512.
1177          (3) (a) An interlocal entity shall include in a fund budget an appropriation for an
1178     existing deficit created in accordance with Section 11-13-522 as of the close of the current year
1179     and not previously included in the current year budget, to the extent of at least 5% of the total
1180     revenue in the current year.
1181          (b) If the total amount of the deficit created under Section 11-13-522 is less than 5% of
1182     the total revenue in the current year, the interlocal entity shall include in the fund budget an
1183     appropriation for the entire amount of the deficit.
1184          (c) An interlocal entity shall include in a fund budget appropriation for the entire
1185     amount of a deficit in the current year resulting from expenditures other than the expenditures
1186     allowed in Section 11-13-522 to the extent that the deficit had not been included in the current
1187     year budget.
1188          Section 36. Section 11-13-514 is enacted to read:
1189          11-13-514. Adoption of final budget -- Certification and filing.
1190          (1) Except as provided in Sections 59-2-919 through 59-2-923, the governing board of
1191     an interlocal entity shall by resolution adopt prior to the beginning of the fiscal year a budget
1192     for the ensuing fiscal year for each fund for which a budget is required under this part.
1193          (2) The interlocal entity's budget officer shall file within 30 days after adoption the
1194     final budget with the members and the state auditor.
1195          Section 37. Section 11-13-515 is enacted to read:
1196          11-13-515. Budgets in effect for budget year.
1197          (1) Upon final adoption, each budget shall be in effect for the budget year, subject to
1198     amendment as provided in this part.
1199          (2) An interlocal entity shall file a copy of the adopted budgets in the interlocal entity's
1200     office and make it available to the public during regular business hours.
1201          Section 38. Section 11-13-516 is enacted to read:
1202          11-13-516. Property tax levy -- Amount in budget as basis for determining
1203     property tax levy.
1204          From the effective date of the budget or of an amendment enacted prior to the date on
1205     which property taxes are levied, the amount stated as the amount of estimated revenue from

1206     property taxes shall constitute the basis for determining the property tax levy to be set by the
1207     governing board for the corresponding tax year, subject to the applicable limitations imposed
1208     by law.
1209          Section 39. Section 11-13-517 is enacted to read:
1210          11-13-517. Purchasing procedures.
1211          An interlocal entity shall make an expenditure or incur an obligation according to the
1212     purchasing procedures established by an interlocal entity by resolution and only by order or
1213     approval of a person duly authorized.
1214          Section 40. Section 11-13-518 is enacted to read:
1215          11-13-518. Expenditures or encumbrances in excess of appropriations prohibited.
1216          An interlocal entity may not make or incur an expenditure or encumbrance in excess of
1217     total appropriations in the budget as adopted or as subsequently amended, except as provided in
1218     Section 11-13-522.
1219          Section 41. Section 11-13-519 is enacted to read:
1220          11-13-519. Transfer of appropriation balance between accounts in same fund.
1221          (1) The governing board of an interlocal entity shall establish policies for, subject to
1222     Subsection (2), the transfer of any unencumbered or unexpended appropriation balance or
1223     portion of the balance from one account in a fund to another account within the same fund.
1224          (2) The governing board may not reduce below the minimums required an
1225     appropriation for debt retirement and interest, reduction of deficit, or other appropriation
1226     required by law or covenant.
1227          Section 42. Section 11-13-520 is enacted to read:
1228          11-13-520. Review of individual governmental fund budgets -- Hearing.
1229          (1) The governing board of an interlocal entity may, at any time during the budget year,
1230     review an individual budget of the governmental fund for the purpose of determining if the
1231     total of an individual budget should be increased.
1232          (2) If the governing board decides that the budget total of one or more governmental
1233     funds described in Subsection (1) should be increased, it shall hold a public hearing on the
1234     increase in accordance with the procedures established in Sections 11-13-509 and 11-13-510.
1235          Section 43. Section 11-13-521 is enacted to read:
1236          11-13-521. Amendment and increase of individual fund budgets.

1237          (1) After holding the public hearing required under Section 11-13-520, the governing
1238     board may, by resolution, amend the budgets of the funds proposed to be increased, so as to
1239     make all or part of the increases, both estimated revenues and appropriations, which were the
1240     proper subject of consideration at the hearing.
1241          (2) The governing board may not adopt an amendment to the current year budgets of
1242     any of the funds established in Section 11-13-506 after the last day of the fiscal year.
1243          Section 44. Section 11-13-522 is enacted to read:
1244          11-13-522. Emergency expenditures.
1245          The governing board of an interlocal entity may, by resolution, amend a budget and
1246     authorize an expenditure of money that results in a deficit in the interlocal entity general fund
1247     balance if:
1248          (1) the board determines that:
1249          (a) an emergency exists; and
1250          (b) the expenditure is reasonably necessary to meet the emergency; and
1251          (2) the expenditure is used to meet the emergency.
1252          Section 45. Section 11-13-523 is enacted to read:
1253          11-13-523. Lapse of appropriations -- Exceptions.
1254          All unexpended or unencumbered appropriations, except capital projects fund
1255     appropriations, lapse at the end of the budget year to the respective fund balance.
1256          Section 46. Section 11-13-524 is enacted to read:
1257          11-13-524. Loans by one fund to another.
1258          (1) Subject to this section, restrictions imposed by bond covenants, restrictions in
1259     Section 53-2a-605, or other controlling regulations, the governing board of an interlocal entity
1260     may authorize an interfund loan from one fund to another.
1261          (2) An interfund loan under Subsection (1) shall be in writing and specify the terms
1262     and conditions of the loan, including the:
1263          (a) effective date of the loan;
1264          (b) name of the fund loaning the money;
1265          (c) name of the fund receiving the money;
1266          (d) amount of the loan;
1267          (e) subject to Subsection (3), term of and repayment schedule for the loan;

1268          (f) subject to Subsection (4), interest rate of the loan;
1269          (g) method of calculating interest applicable to the loan;
1270          (h) procedures for:
1271          (i) applying interest to the loan; and
1272          (ii) paying interest on the loan; and
1273          (i) other terms and conditions the governing board determines applicable.
1274          (3) The term and repayment schedule specified under Subsection (2)(e) may not exceed
1275     10 years.
1276          (4) (a) In determining the interest rate of the loan specified under Subsection (2)(f), the
1277     governing board shall apply an interest rate that reflects the rate of potential gain had the funds
1278     been deposited or invested in a comparable investment.
1279          (b) Notwithstanding Subsection (4)(a), the interest rate of the loan specified under
1280     Subsection (2)(f):
1281          (i) if the term of the loan under Subsection (2)(e) is one year or less, may not be less
1282     than the rate offered by the Public Treasurers' Investment Fund that was created for public
1283     funds transferred to the state treasurer in accordance with Section 51-7-5; or
1284          (ii) if the term of the loan under Subsection (2)(e) is more than one year, may not be
1285     less than the greater of the rate offered by:
1286          (A) the Public Treasurers' Investment Fund that was created for public funds
1287     transferred to the state treasurer in accordance with Section 51-7-5; or
1288          (B) a United States Treasury note of a comparable term.
1289          (5) (a) For an interfund loan under Subsection (1), the governing board shall:
1290          (i) hold a public hearing;
1291          (ii) prepare a written notice of the date, time, place, and purpose of the hearing, and the
1292     proposed terms and conditions of the interfund loan under Subsection (2);
1293          (iii) provide notice of the public hearing in the same manner as required under Section
1294     11-13-509 as if the hearing were a budget hearing; and
1295          (iv) authorize the interfund loan by resolution in a public meeting.
1296          (b) The notice and hearing requirements in Subsection (5)(a) are satisfied if the
1297     interfund loan is included in an original budget or in a subsequent budget amendment
1298     previously approved by the governing board for the current fiscal year.

1299          (6) Subsections (2) through (5) do not apply to an interfund loan if the interfund loan
1300     is:
1301          (a) a loan from the interlocal entity general fund to any other fund of the interlocal
1302     entity; or
1303          (b) a short-term advance from the interlocal entity's cash and investment pool to an
1304     individual fund that is repaid by the end of the fiscal year.
1305          Section 47. Section 11-13-525 is enacted to read:
1306          11-13-525. Operating and capital budgets for proprietary funds.
1307          (1) (a) As used in this section, "operating and capital budget" means a plan of financial
1308     operation for a proprietary or other required special fund, including estimates of operating and
1309     capital revenues and expenses for the budget year.
1310          (b) Except as otherwise expressly provided in this section, the other provisions of this
1311     part governing budgets and fiscal procedures and controls do not apply to the operating and
1312     capital budgets provided for in this section.
1313          (2) Subject to Subsection (3), the governing board shall adopt for the ensuing budget
1314     year an operating and capital budget for each proprietary fund and shall adopt the type of
1315     budget for other special funds, if applicable, under generally accepted accounting principles.
1316          (3) Operating and capital budgets shall be adopted and administered in the following
1317     manner:
1318          (a) On or before the first regularly scheduled meeting of the governing board, in
1319     November for a calendar year entity or May for a fiscal year entity, the budget officer shall
1320     prepare for the ensuing fiscal year, and file with the governing board, a tentative operating and
1321     capital budget for each proprietary fund and for other required special funds, together with any
1322     supporting data required by the board.
1323          (b) The governing board:
1324          (i) shall adopt the tentative operating and capital budget in a regular meeting or special
1325     meeting called for that purpose; and
1326          (ii) may amend or revise the tentative operating and capital budget in any manner that
1327     the board considers advisable prior to a public hearing.
1328          (c) The governing board shall comply with the notice and hearing requirements of
1329     Subsection (3) and Sections 11-13-509 through 11-13-511 in approving a final operating and

1330     capital budget.
1331          (d) If the tentative operating and capital budget approved by the governing board for a
1332     proprietary fund includes appropriations that are not reasonable allocations of costs between
1333     funds or that provide funds to a member, the governing board shall, at least seven days before
1334     the day of the hearing, mail to each interlocal entity customer, a written notice stating:
1335          (i) the date, time, and place of the operating and capital budget hearing; and
1336          (ii) the purpose of the operating and capital budget hearing, including:
1337          (A) the enterprise fund from which money is being transferred;
1338          (B) the amount being transferred; and
1339          (C) the fund or member to which the money is being transferred.
1340          (e) (i) The governing board shall adopt an operating and capital budget for each
1341     proprietary fund for the ensuing fiscal year before the beginning of each fiscal year.
1342          (ii) A copy of the operating and capital budget as finally adopted for each proprietary
1343     fund shall be:
1344          (A) filed in the interlocal entity's office and with each member; and
1345          (B) available to the public during regular business hours.
1346          (iii) The interlocal entity shall also file a copy of the operating and capital budget with
1347     the state auditor within 30 days after adoption.
1348          (f) (i) Upon final adoption, the operating and capital budget is in effect for the budget
1349     year, subject to later amendment.
1350          (ii) During the budget year, the governing board may, in any regular meeting or special
1351     meeting called for that purpose, review an operating and capital budget for the purpose of
1352     determining if the total of the budget should be increased.
1353          (iii) If the governing board decides that the operating and capital budget total of one or
1354     more proprietary funds should be increased, the board shall follow the procedures established
1355     in Section 11-13-526.
1356          (4) An interlocal entity shall maintain a proprietary fund or other required special fund
1357     in compliance with Sections 11-13-503 through 11-13-505, 11-13-517, 11-13-519, and
1358     11-13-527 through 11-13-533.
1359          Section 48. Section 11-13-526 is enacted to read:
1360          11-13-526. Increase in appropriations for operating and capital budget fund --

1361     Notice.
1362          (1) The total budget appropriation of a fund described in Section 11-13-525 may be
1363     increased by resolution of the governing board at a regular meeting, or special meeting called
1364     for that purpose, if written notice of the time, place, and purpose of the meeting has been
1365     mailed or delivered to all members of the governing board at least five days before the day of
1366     the meeting.
1367          (2) The notice may be waived in writing or verbally during attendance at the meeting
1368     by a member of the governing board.
1369          Section 49. Section 11-13-527 is enacted to read:
1370          11-13-527. Deposit of interlocal entity funds -- Commingling with personal funds
1371     prohibited -- Suspension from office.
1372          (1) The treasurer of an interlocal entity shall promptly deposit all interlocal entity funds
1373     in the appropriate bank accounts of the interlocal entity.
1374          (2) It is unlawful for a person to commingle interlocal entity funds with the person's
1375     own money.
1376          (3) If an interlocal entity has reason to believe that an officer or employee has misused
1377     public funds, the interlocal entity shall place the employee or officer on administrative leave
1378     with or without pay, pending completion of any investigation.
1379          Section 50. Section 11-13-528 is enacted to read:
1380          11-13-528. Quarterly financial reports required.
1381          The interlocal entity clerk or other delegated person shall prepare and present to the
1382     governing board a detailed quarterly financial report showing the financial position and
1383     operations of the interlocal entity for that quarter and the year-to-date status.
1384          Section 51. Section 11-13-529 is enacted to read:
1385          11-13-529. Annual financial reports -- Audit reports.
1386          (1) Within 180 days after the close of each fiscal year, the interlocal entity shall prepare
1387     an annual financial report in conformity with generally accepted accounting principles as
1388     prescribed in the Uniform Accounting Manual of the Utah State Auditor.
1389          (2) The requirement under Subsection (1) may be satisfied by presentation of the audit
1390     report furnished by the auditor.
1391          (3) The interlocal entity shall:

1392          (a) file copies of the annual financial report or the audit report furnished by the auditor
1393     with the state auditor; and
1394          (b) maintain the report as a public document in the interlocal entity office.
1395          Section 52. Section 11-13-530 is enacted to read:
1396          11-13-530. Audits required.
1397          (1) An interlocal entity shall facilitate an audit of the interlocal entity in accordance
1398     with Title 51, Chapter 2a, Accounting Reports from Political Subdivisions, Interlocal
1399     Organizations, and Other Local Entities Act.
1400          (2) The governing board shall appoint an auditor for the purpose of complying with the
1401     requirements of this section and with Title 51, Chapter 2a, Accounting Reports from Political
1402     Subdivisions, Interlocal Organizations, and Other Local Entities Act.
1403          Section 53. Section 11-13-531 is enacted to read:
1404          11-13-531. Interlocal entity may expand uniform procedures -- Limitation.
1405          (1) Subject to Subsection (2), an interlocal entity may expand a uniform accounting,
1406     budgeting, or reporting procedure required by generally accepted accounting principles, to
1407     better serve the needs of the interlocal entity.
1408          (2) An interlocal entity may not deviate from or alter the basic prescribed classification
1409     systems for the identity of funds and accounts required by generally accepted accounting
1410     principles.
1411          Section 54. Section 11-13-532 is enacted to read:
1412          11-13-532. Imposing or increasing a fee for service provided by interlocal entity.
1413          (1) The governing board shall fix the rate for a service or commodity provided by the
1414     interlocal entity.
1415          (2) (a) Before imposing a new fee or increasing an existing fee for a service provided
1416     by an interlocal entity, an interlocal entity governing board shall first hold a public hearing at
1417     which interested persons may speak for or against the proposal to impose a fee or to increase an
1418     existing fee.
1419          (b) Each public hearing under Subsection (2)(a) shall be held on a weekday in the
1420     evening beginning no earlier than 6 p.m.
1421          (c) A public hearing required under this Subsection (2) may be combined with a public
1422     hearing on a tentative budget required under Section 11-13-510.

1423          (d) Except to the extent that this section imposes more stringent notice requirements,
1424     the governing board shall comply with Title 52, Chapter 4, Open and Public Meetings Act, in
1425     holding the public hearing under Subsection (2)(a).
1426          (3) (a) An interlocal entity board shall give notice of a hearing under Subsection (2)(a):
1427          (i) as provided in Subsection (3)(b)(i) or (c); and
1428          (ii) for at least 20 days before the day of the hearing on the Utah Public Notice
1429     Website, created by Section 63F-1-701.
1430          (b) (i) Except as provided by Subsection (3)(c)(i), the notice required under Subsection
1431     (2)(a) shall be published:
1432          (A) in a newspaper or combination of newspapers of general circulation in the
1433     interlocal entity, if there is a newspaper or combination of newspapers of general circulation in
1434     the interlocal entity; or
1435          (B) if there is no newspaper or combination of newspapers of general circulation in the
1436     interlocal entity, the interlocal entity board shall post at least one notice per 1,000 population
1437     within the interlocal entity, at places within the interlocal entity that are most likely to provide
1438     actual notice to residents within the interlocal entity.
1439          (ii) The notice described in Subsection (3)(b)(i)(A):
1440          (A) shall be no less than 1/4 page in size and the type used shall be no smaller than 18
1441     point, and surrounded by a 1/4-inch border;
1442          (B) may not be placed in that portion of the newspaper where legal notices and
1443     classified advertisements appear;
1444          (C) whenever possible, shall appear in a newspaper that is published at least one day
1445     per week;
1446          (D) shall be in a newspaper or combination of newspapers of general interest and
1447     readership in the interlocal entity, and not of limited subject matter; and
1448          (E) shall be run once each week for the two weeks preceding the hearing.
1449          (iii) The notice described in Subsections (3)(a)(ii) and (3)(b)(i) shall state that the
1450     interlocal entity board intends to impose or increase a fee for a service provided by the
1451     interlocal entity and will hold a public hearing on a certain day, time, and place fixed in the
1452     notice, which shall be not less than seven days after the day the first notice is published, for the
1453     purpose of hearing comments regarding the proposed imposition or increase of a fee and to

1454     explain the reasons for the proposed imposition or increase.
1455          (c) (i) In lieu of providing notice under Subsection (3)(b)(i), the interlocal entity
1456     governing board may give the notice required under Subsection (2)(a) by mailing the notice to
1457     a person within the interlocal entity's service area who:
1458          (A) will be charged the fee for an interlocal entity's service, if the fee is being imposed
1459     for the first time; or
1460          (B) is being charged a fee, if the fee is proposed to be increased.
1461          (ii) Each notice under Subsection (3)(c)(i) shall comply with Subsection (3)(b)(iii).
1462          (iii) A notice under Subsection (3)(c)(i) may accompany an interlocal entity bill for an
1463     existing fee.
1464          (d) If the hearing required under this section is combined with the public hearing
1465     required under Section 11-13-510, the notice requirements under this Subsection (3) are
1466     satisfied if a notice that meets the requirements of Subsection (3)(b)(iii) is combined with the
1467     notice required under Section 11-13-509.
1468          (e) Proof that notice was given as provided in Subsection (3)(b) or (c) is prima facie
1469     evidence that notice was properly given.
1470          (f) If no challenge is made to the notice given of a public hearing required by
1471     Subsection (2) within 30 days after the date of the hearing, the notice is considered adequate
1472     and proper.
1473          (4) After holding a public hearing under Subsection (2)(a), a governing board may:
1474          (a) impose the new fee or increase the existing fee as proposed;
1475          (b) adjust the amount of the proposed new fee or the increase of the existing fee and
1476     then impose the new fee or increase the existing fee as adjusted; or
1477          (c) decline to impose the new fee or increase the existing fee.
1478          (5) This section applies to each new fee imposed and each increase of an existing fee
1479     that occurs on or after May 12, 2015.
1480          (6) An interlocal entity that accepts an electronic payment may charge an electronic
1481     payment fee.
1482          Section 55. Section 11-13-533 is enacted to read:
1483          11-13-533. Residential fee credit.
1484          (1) An interlocal entity may create a fee structure under this chapter that permits:

1485          (a) a home owner or residential tenant to file for a fee credit for a fee charged by the
1486     interlocal entity, if the credit is based on:
1487          (i) the home owner's annual income; or
1488          (ii) the residential tenant's annual income; or
1489          (b) an owner of federally subsidized housing to file for a credit for a fee charged by the
1490     interlocal entity.
1491          (2) If an interlocal entity permits a person to file for a fee credit under Subsection
1492     (1)(a), the interlocal entity shall make the credit available to:
1493          (a) a home owner; and
1494          (b) a residential tenant.
1495          Section 56. Section 52-4-103 is amended to read:
1496          52-4-103. Definitions.
1497          As used in this chapter:
1498          (1) "Anchor location" means the physical location from which:
1499          (a) an electronic meeting originates; or
1500          (b) the participants are connected.
1501          (2) "Capitol hill complex" means the grounds and buildings within the area bounded by
1502     300 North Street, Columbus Street, 500 North Street, and East Capitol Boulevard in Salt Lake
1503     City.
1504          (3) "Convening" means the calling together of a public body by a person authorized to
1505     do so for the express purpose of discussing or acting upon a subject over which that public
1506     body has jurisdiction or advisory power.
1507          (4) "Electronic meeting" means a public meeting convened or conducted by means of a
1508     conference using electronic communications.
1509          (5) "Electronic message" means a communication transmitted electronically, including:
1510          (a) electronic mail;
1511          (b) instant messaging;
1512          (c) electronic chat;
1513          (d) text messaging as defined in Section 76-4-401; or
1514          (e) any other method that conveys a message or facilitates communication
1515     electronically.

1516          (6) (a) "Meeting" means the convening of a public body or a specified body, with a
1517     quorum present, including a workshop or an executive session, whether in person or by means
1518     of electronic communications, for the purpose of discussing, receiving comments from the
1519     public about, or acting upon a matter over which the public body or specific body has
1520     jurisdiction or advisory power.
1521          (b) "Meeting" does not mean:
1522          (i) a chance gathering or social gathering; or
1523          (ii) a convening of the State Tax Commission to consider a confidential tax matter in
1524     accordance with Section 59-1-405.
1525          (c) "Meeting" does not mean the convening of a public body that has both legislative
1526     and executive responsibilities if:
1527          (i) no public funds are appropriated for expenditure during the time the public body is
1528     convened; and
1529          (ii) the public body is convened solely for the discussion or implementation of
1530     administrative or operational matters:
1531          (A) for which no formal action by the public body is required; or
1532          (B) that would not come before the public body for discussion or action.
1533          (7) "Monitor" means to hear or observe, live, by audio or video equipment, all of the
1534     public statements of each member of the public body who is participating in a meeting.
1535          (8) "Participate" means the ability to communicate with all of the members of a public
1536     body, either verbally or electronically, so that each member of the public body can hear or
1537     observe the communication.
1538          (9) (a) "Public body" means any administrative, advisory, executive, or legislative body
1539     of the state or its political subdivisions that:
1540          (i) is created by the Utah Constitution, statute, rule, ordinance, or resolution;
1541          (ii) consists of two or more persons;
1542          (iii) expends, disburses, or is supported in whole or in part by tax revenue; and
1543          (iv) is vested with the authority to make decisions regarding the public's business.
1544          (b) "Public body" includes, as defined in Section 11-13-103, an interlocal entity or joint
1545     or cooperative undertaking.
1546          [(b)] (c) "Public body" does not include a:

1547          (i) political party, political group, or political caucus;
1548          (ii) conference committee, rules committee, or sifting committee of the Legislature; or
1549          (iii) school community council established under Section 53A-1a-108.
1550          (10) "Public statement" means a statement made in the ordinary course of business of
1551     the public body with the intent that all other members of the public body receive it.
1552          (11) (a) "Quorum" means a simple majority of the membership of a public body, unless
1553     otherwise defined by applicable law.
1554          (b) "Quorum" does not include a meeting of two elected officials by themselves when
1555     no action, either formal or informal, is taken on a subject over which these elected officials
1556     have advisory power.
1557          (12) "Recording" means an audio, or an audio and video, record of the proceedings of a
1558     meeting that can be used to review the proceedings of the meeting.
1559          (13) "Specified body" means an administrative, advisory, executive, or legislative body
1560     that:
1561          (a) is not a public body;
1562          (b) consists of three or more members; and
1563          (c) includes at least one member who is:
1564          (i) a legislator; and
1565          (ii) officially appointed to the body by the President of the Senate, Speaker of the
1566     House of Representatives, or governor.
1567          (14) "Transmit" means to send, convey, or communicate an electronic message by
1568     electronic means.
1569          Section 57. Section 53-2a-605 is amended to read:
1570          53-2a-605. Local government disaster funds.
1571          (1) (a) Subject to this section and notwithstanding anything to the contrary contained in
1572     Title 10, Utah Municipal Code, or Title 17, Counties, Title 17B, Limited Purpose Local
1573     Government Entities - Local Districts, or Title 17D, Chapter 1, Special Service District Act, the
1574     governing body of a local government may create and maintain by ordinance a special fund
1575     known as a local government disaster fund.
1576          (b) The local fund shall consist of:
1577          (i) subject to the limitations of this section, money transferred to it in accordance with

1578     Subsection (2);
1579          (ii) any other public or private money received by the local government that is:
1580          (A) given to the local government for purposes consistent with this section; and
1581          (B) deposited into the local fund at the request of:
1582          (I) the governing body of the local government; or
1583          (II) the person giving the money; and
1584          (iii) interest or income realized from the local fund.
1585          (c) Interest or income realized from the local fund shall be deposited into the local
1586     fund.
1587          (d) Money in a local fund may be:
1588          (i) deposited or invested as provided in Section 51-7-11; or
1589          (ii) transferred by the local government treasurer to the state treasurer under Section
1590     51-7-5 for the state treasurer's management and control under Title 51, Chapter 7, State Money
1591     Management Act.
1592          (e) (i) The money in a local fund may accumulate from year to year until the local
1593     government governing body determines to spend any money in the local fund for one or more
1594     of the purposes specified in Subsection (3).
1595          (ii) Money in a local fund at the end of a fiscal year:
1596          (A) shall remain in the local fund for future use; and
1597          (B) may not be transferred to any other fund or used for any other purpose.
1598          (2) The amounts transferred to a local fund may not exceed 10% of the total estimated
1599     revenues of the local government for the current fiscal period that are not restricted or
1600     otherwise obligated.
1601          (3) Money in the fund may only be used to fund the services and activities of the local
1602     government creating the local fund in response to:
1603          (a) a declared disaster within the boundaries of the local government;
1604          (b) the aftermath of the disaster that gave rise to a declared disaster within the
1605     boundaries of the local government; and
1606          (c) subject to Subsection (5), emergency preparedness.
1607          (4) (a) A local fund is subject to this part and:
1608          (i) in the case of a town, Title 10, Chapter 5, Uniform Fiscal Procedures Act for Utah

1609     Towns, except that:
1610          (A) in addition to the funds listed in Section 10-5-106, the mayor shall prepare a
1611     budget for the local fund;
1612          (B) Section 10-5-119 addressing termination of special funds does not apply to a local
1613     fund; and
1614          (C) the council of the town may not authorize an interfund loan under Section
1615     10-5-120 from the local fund;
1616          (ii) in the case of a city, Title 10, Chapter 6, Uniform Fiscal Procedures Act for Utah
1617     Cities, except that:
1618          (A) in addition to the funds listed in Section 10-6-109, the mayor shall prepare a
1619     budget for the local fund;
1620          (B) Section 10-6-131 addressing termination of special funds does not apply to a local
1621     fund; and
1622          (C) the governing body of the city may not authorize an interfund loan under Section
1623     10-6-132 from the local fund; and
1624          (iii) in the case of a county, Title 17, Chapter 36, Uniform Fiscal Procedures Act for
1625     Counties, except that:
1626          (A) Section 17-36-29 addressing termination of special funds does not apply to a local
1627     fund; and
1628          (B) the governing body of the county may not authorize an interfund loan under
1629     Section 17-36-30 from the local fund; [and]
1630          (iv) in the case of a local district or special service district, Title 17B, Chapter 1, Part 6,
1631     Fiscal Procedures for Local Districts, except that:
1632          (A) Section 17B-1-625, addressing termination of a special fund, does not apply to a
1633     local fund; and
1634          (B) the governing body of the local district or special service district may not authorize
1635     an interfund loan under Section 17B-1-626 from the local fund[.]; and
1636          (v) in the case of an interlocal entity, Title 11, Chapter 13, Part 5, Fiscal Procedures for
1637     Interlocal Entities, except for the following provisions:
1638          (A) Section 11-13-523 addressing termination of a special fund does not apply to a
1639     local fund; and

1640          (B) the governing board of the interlocal entity may not authorize an interfund loan
1641     under Section 11-13-524 from the local fund.
1642          (b) Notwithstanding Subsection (4)(a), transfers of money to a local fund or the
1643     accumulation of money in a local fund do not affect any limits on fund balances, net assets, or
1644     the accumulation of retained earnings in any of the following of a local government:
1645          (i) a general fund;
1646          (ii) an enterprise fund;
1647          (iii) an internal service fund; or
1648          (iv) any other fund.
1649          (5) (a) A local government may not expend during a fiscal year more than 10% of the
1650     money budgeted to be deposited into a local fund during that fiscal year for emergency
1651     preparedness.
1652          (b) The amount described in Subsection (5)(a) shall be determined before the adoption
1653     of the tentative budget.
1654          Section 58. Section 63G-2-103 is amended to read:
1655          63G-2-103. Definitions.
1656          As used in this chapter:
1657          (1) "Audit" means:
1658          (a) a systematic examination of financial, management, program, and related records
1659     for the purpose of determining the fair presentation of financial statements, adequacy of
1660     internal controls, or compliance with laws and regulations; or
1661          (b) a systematic examination of program procedures and operations for the purpose of
1662     determining their effectiveness, economy, efficiency, and compliance with statutes and
1663     regulations.
1664          (2) "Chronological logs" mean the regular and customary summary records of law
1665     enforcement agencies and other public safety agencies that show:
1666          (a) the time and general nature of police, fire, and paramedic calls made to the agency;
1667     and
1668          (b) any arrests or jail bookings made by the agency.
1669          (3) "Classification," "classify," and their derivative forms mean determining whether a
1670     record series, record, or information within a record is public, private, controlled, protected, or

1671     exempt from disclosure under Subsection 63G-2-201(3)(b).
1672          (4) (a) "Computer program" means:
1673          (i) a series of instructions or statements that permit the functioning of a computer
1674     system in a manner designed to provide storage, retrieval, and manipulation of data from the
1675     computer system; and
1676          (ii) any associated documentation and source material that explain how to operate the
1677     computer program.
1678          (b) "Computer program" does not mean:
1679          (i) the original data, including numbers, text, voice, graphics, and images;
1680          (ii) analysis, compilation, and other manipulated forms of the original data produced by
1681     use of the program; or
1682          (iii) the mathematical or statistical formulas, excluding the underlying mathematical
1683     algorithms contained in the program, that would be used if the manipulated forms of the
1684     original data were to be produced manually.
1685          (5) (a) "Contractor" means:
1686          (i) any person who contracts with a governmental entity to provide goods or services
1687     directly to a governmental entity; or
1688          (ii) any private, nonprofit organization that receives funds from a governmental entity.
1689          (b) "Contractor" does not mean a private provider.
1690          (6) "Controlled record" means a record containing data on individuals that is controlled
1691     as provided by Section 63G-2-304.
1692          (7) "Designation," "designate," and their derivative forms mean indicating, based on a
1693     governmental entity's familiarity with a record series or based on a governmental entity's
1694     review of a reasonable sample of a record series, the primary classification that a majority of
1695     records in a record series would be given if classified and the classification that other records
1696     typically present in the record series would be given if classified.
1697          (8) "Elected official" means each person elected to a state office, county office,
1698     municipal office, school board or school district office, local district office, or special service
1699     district office, but does not include judges.
1700          (9) "Explosive" means a chemical compound, device, or mixture:
1701          (a) commonly used or intended for the purpose of producing an explosion; and

1702          (b) that contains oxidizing or combustive units or other ingredients in proportions,
1703     quantities, or packing so that:
1704          (i) an ignition by fire, friction, concussion, percussion, or detonator of any part of the
1705     compound or mixture may cause a sudden generation of highly heated gases; and
1706          (ii) the resultant gaseous pressures are capable of:
1707          (A) producing destructive effects on contiguous objects; or
1708          (B) causing death or serious bodily injury.
1709          (10) "Government audit agency" means any governmental entity that conducts an audit.
1710          (11) (a) "Governmental entity" means:
1711          (i) executive department agencies of the state, the offices of the governor, lieutenant
1712     governor, state auditor, attorney general, and state treasurer, the Board of Pardons and Parole,
1713     the Board of Examiners, the National Guard, the Career Service Review Office, the State
1714     Board of Education, the State Board of Regents, and the State Archives;
1715          (ii) the Office of the Legislative Auditor General, Office of the Legislative Fiscal
1716     Analyst, Office of Legislative Research and General Counsel, the Legislature, and legislative
1717     committees, except any political party, group, caucus, or rules or sifting committee of the
1718     Legislature;
1719          (iii) courts, the Judicial Council, the Office of the Court Administrator, and similar
1720     administrative units in the judicial branch;
1721          (iv) any state-funded institution of higher education or public education; or
1722          (v) any political subdivision of the state, but, if a political subdivision has adopted an
1723     ordinance or a policy relating to information practices pursuant to Section 63G-2-701, this
1724     chapter shall apply to the political subdivision to the extent specified in Section 63G-2-701 or
1725     as specified in any other section of this chapter that specifically refers to political subdivisions.
1726          (b) "Governmental entity" also means:
1727          (i) every office, agency, board, bureau, committee, department, advisory board, or
1728     commission of an entity listed in Subsection (11)(a) that is funded or established by the
1729     government to carry out the public's business[.]; and
1730          (ii) as defined in Section 11-13-103, an interlocal entity or joint or cooperative
1731     undertaking.
1732          (c) "Governmental entity" does not include the Utah Educational Savings Plan created

1733     in Section 53B-8a-103.
1734          (12) "Gross compensation" means every form of remuneration payable for a given
1735     period to an individual for services provided including salaries, commissions, vacation pay,
1736     severance pay, bonuses, and any board, rent, housing, lodging, payments in kind, and any
1737     similar benefit received from the individual's employer.
1738          (13) "Individual" means a human being.
1739          (14) (a) "Initial contact report" means an initial written or recorded report, however
1740     titled, prepared by peace officers engaged in public patrol or response duties describing official
1741     actions initially taken in response to either a public complaint about or the discovery of an
1742     apparent violation of law, which report may describe:
1743          (i) the date, time, location, and nature of the complaint, the incident, or offense;
1744          (ii) names of victims;
1745          (iii) the nature or general scope of the agency's initial actions taken in response to the
1746     incident;
1747          (iv) the general nature of any injuries or estimate of damages sustained in the incident;
1748          (v) the name, address, and other identifying information about any person arrested or
1749     charged in connection with the incident; or
1750          (vi) the identity of the public safety personnel, except undercover personnel, or
1751     prosecuting attorney involved in responding to the initial incident.
1752          (b) Initial contact reports do not include follow-up or investigative reports prepared
1753     after the initial contact report. However, if the information specified in Subsection (14)(a)
1754     appears in follow-up or investigative reports, it may only be treated confidentially if it is
1755     private, controlled, protected, or exempt from disclosure under Subsection 63G-2-201(3)(b).
1756          (15) "Legislative body" means the Legislature.
1757          (16) "Notice of compliance" means a statement confirming that a governmental entity
1758     has complied with a records committee order.
1759          (17) "Person" means:
1760          (a) an individual;
1761          (b) a nonprofit or profit corporation;
1762          (c) a partnership;
1763          (d) a sole proprietorship;

1764          (e) other type of business organization; or
1765          (f) any combination acting in concert with one another.
1766          (18) "Private provider" means any person who contracts with a governmental entity to
1767     provide services directly to the public.
1768          (19) "Private record" means a record containing data on individuals that is private as
1769     provided by Section 63G-2-302.
1770          (20) "Protected record" means a record that is classified protected as provided by
1771     Section 63G-2-305.
1772          (21) "Public record" means a record that is not private, controlled, or protected and that
1773     is not exempt from disclosure as provided in Subsection 63G-2-201(3)(b).
1774          (22) (a) "Record" means a book, letter, document, paper, map, plan, photograph, film,
1775     card, tape, recording, electronic data, or other documentary material regardless of physical form
1776     or characteristics:
1777          (i) that is prepared, owned, received, or retained by a governmental entity or political
1778     subdivision; and
1779          (ii) where all of the information in the original is reproducible by photocopy or other
1780     mechanical or electronic means.
1781          (b) "Record" does not mean:
1782          (i) a personal note or personal communication prepared or received by an employee or
1783     officer of a governmental entity:
1784          (A) in a capacity other than the employee's or officer's governmental capacity; or
1785          (B) that is unrelated to the conduct of the public's business;
1786          (ii) a temporary draft or similar material prepared for the originator's personal use or
1787     prepared by the originator for the personal use of an individual for whom the originator is
1788     working;
1789          (iii) material that is legally owned by an individual in the individual's private capacity;
1790          (iv) material to which access is limited by the laws of copyright or patent unless the
1791     copyright or patent is owned by a governmental entity or political subdivision;
1792          (v) proprietary software;
1793          (vi) junk mail or a commercial publication received by a governmental entity or an
1794     official or employee of a governmental entity;

1795          (vii) a book that is cataloged, indexed, or inventoried and contained in the collections
1796     of a library open to the public;
1797          (viii) material that is cataloged, indexed, or inventoried and contained in the collections
1798     of a library open to the public, regardless of physical form or characteristics of the material;
1799          (ix) a daily calendar or other personal note prepared by the originator for the
1800     originator's personal use or for the personal use of an individual for whom the originator is
1801     working;
1802          (x) a computer program that is developed or purchased by or for any governmental
1803     entity for its own use;
1804          (xi) a note or internal memorandum prepared as part of the deliberative process by:
1805          (A) a member of the judiciary;
1806          (B) an administrative law judge;
1807          (C) a member of the Board of Pardons and Parole; or
1808          (D) a member of any other body charged by law with performing a quasi-judicial
1809     function;
1810          (xii) a telephone number or similar code used to access a mobile communication
1811     device that is used by an employee or officer of a governmental entity, provided that the
1812     employee or officer of the governmental entity has designated at least one business telephone
1813     number that is a public record as provided in Section 63G-2-301;
1814          (xiii) information provided by the Public Employees' Benefit and Insurance Program,
1815     created in Section 49-20-103, to a county to enable the county to calculate the amount to be
1816     paid to a health care provider under Subsection 17-50-319(2)(e)(ii);
1817          (xiv) information that an owner of unimproved property provides to a local entity as
1818     provided in Section 11-42-205; or
1819          (xv) a video or audio recording of an interview, or a transcript of the video or audio
1820     recording, that is conducted at a Children's Justice Center established under Section 67-5b-102.
1821          (23) "Record series" means a group of records that may be treated as a unit for
1822     purposes of designation, description, management, or disposition.
1823          (24) "Records committee" means the State Records Committee created in Section
1824     63G-2-501.
1825          (25) "Records officer" means the individual appointed by the chief administrative

1826     officer of each governmental entity, or the political subdivision to work with state archives in
1827     the care, maintenance, scheduling, designation, classification, disposal, and preservation of
1828     records.
1829          (26) "Schedule," "scheduling," and their derivative forms mean the process of
1830     specifying the length of time each record series should be retained by a governmental entity for
1831     administrative, legal, fiscal, or historical purposes and when each record series should be
1832     transferred to the state archives or destroyed.
1833          (27) "Sponsored research" means research, training, and other sponsored activities as
1834     defined by the federal Executive Office of the President, Office of Management and Budget:
1835          (a) conducted:
1836          (i) by an institution within the state system of higher education defined in Section
1837     53B-1-102; and
1838          (ii) through an office responsible for sponsored projects or programs; and
1839          (b) funded or otherwise supported by an external:
1840          (i) person that is not created or controlled by the institution within the state system of
1841     higher education; or
1842          (ii) federal, state, or local governmental entity.
1843          (28) "State archives" means the Division of Archives and Records Service created in
1844     Section 63A-12-101.
1845          (29) "State archivist" means the director of the state archives.
1846          (30) "Summary data" means statistical records and compilations that contain data
1847     derived from private, controlled, or protected information but that do not disclose private,
1848     controlled, or protected information.
1849          Section 59. Repealer.
1850          This bill repeals:
1851          Section 11-13-223 (Superseded 05/12/15), Open and public meetings.
1852          Section 11-13-223 (Effective 05/12/15), Open and public meetings.







Legislative Review Note
     as of 2-3-15 11:02 AM


Office of Legislative Research and General Counsel