Senator Jerry W. Stevenson proposes the following substitute bill:


1     
SERVICE DISTRICT MODIFICATIONS

2     
2015 GENERAL SESSION

3     
STATE OF UTAH

4     
Chief Sponsor: Jerry W. Stevenson

5     
House Sponsor: Stephen G. Handy

6     

7     LONG TITLE
8     General Description:
9          This bill amends provisions related to local districts.
10     Highlighted Provisions:
11          This bill:
12          ▸     provides that a board of trustees shall hold a public hearing on a proposed
13     withdrawal with certain exceptions;
14          ▸     clarifies language related to the time in which a board of trustees adopts a
15     withdrawal resolution;
16          ▸     authorizes combining a notice on a budget hearing with notice to increase or impose
17     a new fee;
18          ▸     amends provisions related to the preparation of a tentative budget;
19          ▸     authorizes a local district to combine certain notices of fees; and
20          ▸     makes technical and conforming amendments.
21     Money Appropriated in this Bill:
22          None
23     Other Special Clauses:
24          None
25     Utah Code Sections Affected:

26     AMENDS:
27          17B-1-508, as renumbered and amended by Laws of Utah 2007, Chapter 329
28          17B-1-510, as last amended by Laws of Utah 2011, Chapter 297
29          17B-1-607, as last amended by Laws of Utah 2011, Chapter 297
30          17B-1-609, as last amended by Laws of Utah 2014, Chapter 377
31          17B-1-643, as last amended by Laws of Utah 2011, Chapters 47 and 106
32          53-13-103, as last amended by Laws of Utah 2014, Chapters 290 and 300
33     

34     Be it enacted by the Legislature of the state of Utah:
35          Section 1. Section 17B-1-508 is amended to read:
36          17B-1-508. Public hearing -- Quorum of board required to be present.
37          (1) A public hearing on the proposed withdrawal shall be held by the board of trustees
38     of a local district that:
39          (a) certifies a petition under Subsection 17B-1-507(1)(b)(i) unless the petition was
40     signed by all of the owners of private land within the area proposed to be withdrawn or all of
41     the registered voters residing within the area proposed to be withdrawn; or
42          (b) adopts a resolution under Subsection 17B-1-504(1)(a)(iii) unless another local
43     district provides to the area proposed to be withdrawn the same retail or wholesale service as
44     provided by the local district that adopted the resolution.
45          (2) The public hearing required by Subsection (1) for a petition certified by the board
46     of trustees of a local district under Subsection 17B-1-507(1)(b)(i), other than a petition filed in
47     accordance with Subsection 17B-1-504(1)(a)(iv), may be held as an agenda item of a meeting
48     of the board of trustees of the local district without complying with the requirements of
49     Subsection (3)(b), (3)(c), or Section 17B-1-509.
50          (3) Except as provided in Subsection (2), the public hearing required by Subsection (1)
51     shall be held:
52          (a) no later than 90 days after:
53          (i) certification of the petition under Subsection 17B-1-507(1)(b)(i); or
54          (ii) adoption of a resolution under Subsection 17B-1-504(1)(a)(iii);
55          (b) (i) for a local district located entirely within a single county:
56          (A) within or as close as practicable to the area proposed to be withdrawn; or

57          (B) at the local district office; or
58          (ii) for a local district located in more than one county:
59          (A) (I) within the county in which the area proposed to be withdrawn is located; and
60          (II) within or as close as practicable to the area proposed to be withdrawn; or
61          (B) if the local district office is reasonably accessible to all residents within the area
62     proposed to be annexed, at the local district office;
63          (c) on a weekday evening other than a holiday beginning no earlier than 6:00 p.m.; and
64          (d) for the purpose of allowing:
65          (i) the public to ask questions and obtain further information about the proposed
66     withdrawal and issues raised by it; and
67          (ii) any interested person to address the board of trustees concerning the proposed
68     withdrawal.
69          (4) A quorum of the board of trustees of the local district shall be present throughout
70     the public hearing provided for under this section.
71          (5) A public hearing under this section may be postponed or continued to a new time,
72     date, and place without further notice by a resolution of the board of trustees adopted at the
73     public hearing held at the time, date, and place specified in the published notice; provided,
74     however, that the public hearing may not be postponed or continued to a date later than 15 days
75     after the 90-day period under Subsection (3).
76          Section 2. Section 17B-1-510 is amended to read:
77          17B-1-510. Resolution approving or rejecting withdrawal -- Criteria for approval
78     or rejection -- Terms and conditions.
79          (1) (a) [On or before the date of the board meeting next following the public hearing
80     under Section 17B-1-508, but in no case] No later than 90 days after the public hearing under
81     Section 17B-1-508, or, if no hearing is held, within 90 days after the filing of a petition under
82     Section 17B-1-504, the board of trustees of the local district in which the area proposed to be
83     withdrawn is located shall adopt a resolution:
84          (i) approving the withdrawal of some or all of the area from the local district; or
85          (ii) rejecting the withdrawal.
86          (b) Each resolution approving a withdrawal shall:
87          (i) include a legal description of the area proposed to be withdrawn;

88          (ii) state the effective date of the withdrawal; and
89          (iii) set forth the terms and conditions under Subsection (5), if any, of the withdrawal.
90          (c) Each resolution rejecting a withdrawal shall include a detailed explanation of the
91     board of trustees' reasons for the rejection.
92          (2) Unless denial of the petition is required under Subsection (3), the board of trustees
93     shall adopt a resolution approving the withdrawal of some or all of the area from the local
94     district if the board of trustees determines that:
95          (a) the area to be withdrawn does not and will not require the service that the local
96     district provides;
97          (b) the local district will not be able to provide service to the area to be withdrawn for
98     the reasonably foreseeable future; or
99          (c) the area to be withdrawn has obtained the same service that is provided by the local
100     district or a commitment to provide the same service that is provided by the local district from
101     another source.
102          (3) The board of trustees shall adopt a resolution denying the withdrawal if it
103     determines that the proposed withdrawal would:
104          (a) result in a breach or default by the local district under:
105          (i) any of its notes, bonds, or other debt or revenue obligations;
106          (ii) any of its agreements with entities which have insured, guaranteed, or otherwise
107     credit-enhanced any debt or revenue obligations of the local district; or
108          (iii) any of its agreements with the United States or any agency of the United States;
109     provided, however, that, if the local district has entered into an agreement with the United
110     States that requires the consent of the United States for a withdrawal of territory from the
111     district, a withdrawal under this part may occur if the written consent of the United States is
112     obtained and filed with the board of trustees;
113          (b) adversely affect the ability of the local district to make any payments or perform
114     any other material obligations under:
115          (i) any of its agreements with the United States or any agency of the United States;
116          (ii) any of its notes, bonds, or other debt or revenue obligations; or
117          (iii) any of its agreements with entities which have insured, guaranteed, or otherwise
118     credit-enhanced any debt or revenue obligations of the local district;

119          (c) result in the reduction or withdrawal of any rating on an outstanding note, bond, or
120     other debt or revenue obligation of the local district;
121          (d) create an island or peninsula of nondistrict territory within the local district or of
122     district territory within nondistrict territory that has a material adverse affect on the local
123     district's ability to provide service or materially increases the cost of providing service to the
124     remainder of the local district;
125          (e) materially impair the operations of the remaining local district; or
126          (f) require the local district to materially increase the fees it charges or property taxes
127     or other taxes it levies in order to provide to the remainder of the district the same level and
128     quality of service that was provided before the withdrawal.
129          (4) In determining whether the withdrawal would have any of the results described in
130     Subsection (3), the board of trustees may consider the cumulative impact that multiple
131     withdrawals over a specified period of time would have on the local district.
132          (5) (a) Despite the presence of one or more of the conditions listed in Subsection (3),
133     the board of trustees may approve a resolution withdrawing an area from the local district
134     imposing terms or conditions that mitigate or eliminate the conditions listed in Subsection (3),
135     including:
136          (i) a requirement that the owners of property located within the area proposed to be
137     withdrawn or residents within that area pay their proportionate share of any outstanding district
138     bond or other obligation as determined pursuant to Subsection (5)(b);
139          (ii) a requirement that the owners of property located within the area proposed to be
140     withdrawn or residents within that area make one or more payments in lieu of taxes, fees, or
141     assessments;
142          (iii) a requirement that the board of trustees and the receiving entity agree to reasonable
143     payment and other terms in accordance with Subsections (5)(f) through (g) regarding the
144     transfer to the receiving entity of district assets that the district used before withdrawal to
145     provide service to the withdrawn area but no longer needs because of the withdrawal; provided
146     that, if those district assets are allocated in accordance with Subsections (5)(f) through (g), the
147     district shall immediately transfer to the receiving entity on the effective date of the
148     withdrawal, all title to and possession of district assets allocated to the receiving entity; or
149          (iv) any other reasonable requirement considered to be necessary by the board of

150     trustees.
151          (b) Other than as provided for in Subsection 17B-1-511(2), and except as provided in
152     Subsection (5)(e), in determining the proportionate share of outstanding bonded indebtedness
153     or other obligations under Subsection (5)(a)(i) and for purposes of determining the allocation
154     and transfer of district assets under Subsection (5)(a)(iii), the board of trustees and the
155     receiving entity, or in cases where there is no receiving entity, the board and the sponsors of the
156     petition shall:
157          (i) engage engineering and accounting consultants chosen by the procedure provided in
158     Subsection (5)(d); provided however, that if the withdrawn area is not receiving service, an
159     engineering consultant need not be engaged; and
160          (ii) require the engineering and accounting consultants engaged under Subsection
161     (5)(b)(i) to communicate in writing to the board of trustees and the receiving entity, or in cases
162     where there is no receiving entity, the board and the sponsors of the petition the information
163     required by Subsections (5)(f) through (h).
164          (c) For purposes of this Subsection (5):
165          (i) "accounting consultant" means a certified public accountant or a firm of certified
166     public accountants with the expertise necessary to make the determinations required under
167     Subsection (5)(h); and
168          (ii) "engineering consultant" means a person or firm that has the expertise in the
169     engineering aspects of the type of system by which the withdrawn area is receiving service that
170     is necessary to make the determination required under Subsections (5)(f) and (g).
171          (d) (i) Unless the board of trustees and the receiving entity, or in cases where there is
172     no receiving entity, the board and the sponsors of the petition agree on an engineering
173     consultant and an accounting consultant, each consultant shall be chosen from a list of
174     consultants provided by the Consulting Engineers Council of Utah and the Utah Association of
175     Certified Public Accountants, respectively, as provided in this Subsection (5)(d).
176          (ii) A list under Subsection (5)(d)(i) may not include a consultant who has had a
177     contract for services with the district or the receiving entity during the two-year period
178     immediately before the list is provided to the local district.
179          (iii) Within 20 days of receiving the lists described in Subsection (5)(d)(i), the board of
180     trustees shall eliminate the name of one engineering consultant from the list of engineering

181     consultants and the name of one accounting consultant from the list of accounting consultants
182     and shall notify the receiving entity, or in cases where there is no receiving entity, the sponsors
183     of the petition in writing of the eliminations.
184          (iv) Within three days of receiving notification under Subsection (5)(d), the receiving
185     entity, or in cases where there is no receiving entity, the sponsors of the petition shall eliminate
186     another name of an engineering consultant from the list of engineering consultants and another
187     name of an accounting consultant from the list of accounting consultants and shall notify the
188     board of trustees in writing of the eliminations.
189          (v) The board of trustees and the receiving entity, or in cases where there is no
190     receiving entity, the board and the sponsors of the petition shall continue to alternate between
191     them, each eliminating the name of one engineering consultant from the list of engineering
192     consultants and the name of one accounting consultant from the list of accounting consultants
193     and providing written notification of the eliminations within three days of receiving
194     notification of the previous notification, until the name of only one engineering consultant
195     remains on the list of engineering consultants and the name of only one accounting consultant
196     remains on the list of accounting consultants.
197          (e) The requirement under Subsection (5)(b) to engage engineering and accounting
198     consultants does not apply if the board of trustees and the receiving entity, or in cases where
199     there is no receiving entity, the board and the sponsors of the petition agree on the allocations
200     that are the engineering consultant's responsibility under Subsection (5)(f) or the
201     determinations that are the accounting consultant's responsibility under Subsection (5)(h);
202     provided however, that if engineering and accounting consultants are engaged, the district and
203     the receiving entity, or in cases where there is no receiving entity, the district and the sponsors
204     of the petition shall equally share the cost of the engineering and accounting consultants.
205          (f) (i) The engineering consultant shall allocate the district assets between the district
206     and the receiving entity as provided in this Subsection (5)(f).
207          (ii) The engineering consultant shall allocate:
208          (A) to the district those assets reasonably needed by the district to provide to the area
209     of the district remaining after withdrawal the kind, level, and quality of service that was
210     provided before withdrawal; and
211          (B) to the receiving entity those assets reasonably needed by the receiving entity to

212     provide to the withdrawn area the kind and quality of service that was provided before
213     withdrawal.
214          (iii) If the engineering consultant determines that both the local district and the
215     receiving entity reasonably need a district asset to provide to their respective areas the kind and
216     quality of service provided before withdrawal, the engineering consultant shall:
217          (A) allocate the asset between the local district and the receiving entity according to
218     their relative needs, if the asset is reasonably susceptible of division; or
219          (B) allocate the asset to the local district, if the asset is not reasonably susceptible of
220     division.
221          (g) All district assets remaining after application of Subsection (5)(f) shall be allocated
222     to the local district.
223          (h) (i) The accounting consultant shall determine the withdrawn area's proportionate
224     share of any redemption premium and the principal of and interest on:
225          (A) the local district's revenue bonds that were outstanding at the time the petition was
226     filed;
227          (B) the local district's general obligation bonds that were outstanding at the time the
228     petition was filed; and
229          (C) the local district's general obligation bonds that:
230          (I) were outstanding at the time the petition was filed; and
231          (II) are treated as revenue bonds under Subsection (5)(i); and
232          (D) the district's bonds that were issued prior to the date the petition was filed to refund
233     the district's revenue bonds, general obligation bonds, or general obligation bonds treated as
234     revenue bonds.
235          (ii) For purposes of Subsection (5)(h)(i), the withdrawn area's proportionate share of
236     redemption premium, principal, and interest shall be the amount that bears the same
237     relationship to the total redemption premium, principal, and interest for the entire district that
238     the average annual gross revenues from the withdrawn area during the three most recent
239     complete fiscal years before the filing of the petition bears to the average annual gross revenues
240     from the entire district for the same period.
241          (i) For purposes of Subsection (5)(h)(i), a district general obligation bond shall be
242     treated as a revenue bond if:

243          (i) the bond is outstanding on the date the petition was filed; and
244          (ii) the principal of and interest on the bond, as of the date the petition was filed, had
245     been paid entirely from local district revenues and not from a levy of ad valorem tax.
246          (j) (i) Before the board of trustees of the local district files a resolution approving a
247     withdrawal, the receiving entity, or in cases where there is no receiving entity, the sponsors of
248     the petition shall irrevocably deposit government obligations, as defined in Subsection
249     11-27-2(6), into an escrow trust fund the principal of and interest on which are sufficient to
250     provide for the timely payment of the amount determined by the accounting consultant under
251     Subsection (5)(h) or in an amount mutually agreeable to the board of trustees of the local
252     district and the receiving entity, or in cases where there is no receiving entity, the board and the
253     sponsors of the petition. Notwithstanding Subsection 17B-1-512(1), the board of trustees may
254     not be required to file a resolution approving a withdrawal until the requirements for
255     establishing and funding an escrow trust fund in this Subsection (5)(j)(i) have been met;
256     provided that, if the escrow trust fund has not been established and funded within 180 days
257     after the board of trustees passes a resolution approving a withdrawal, the resolution approving
258     the withdrawal shall be void.
259          (ii) Concurrently with the creation of the escrow, the receiving entity, or in cases where
260     there is no receiving entity, the sponsors of the petition shall provide to the board of trustees of
261     the local district:
262          (A) a written opinion of an attorney experienced in the tax-exempt status of municipal
263     bonds stating that the establishment and use of the escrow to pay the proportionate share of the
264     district's outstanding revenue bonds and general obligation bonds that are treated as revenue
265     bonds will not adversely affect the tax-exempt status of the bonds; and
266          (B) a written opinion of an independent certified public accountant verifying that the
267     principal of and interest on the deposited government obligations are sufficient to provide for
268     the payment of the withdrawn area's proportionate share of the bonds as provided in Subsection
269     (5)(h).
270          (iii) The receiving entity, or in cases where there is no receiving entity, the sponsors of
271     the petition shall bear all expenses of the escrow and the redemption of the bonds.
272          (iv) The receiving entity may issue bonds under Title 11, Chapter 14, Local
273     Government Bonding Act, and Title 11, Chapter 27, Utah Refunding Bond Act, to fund the

274     escrow.
275          (6) A requirement imposed by the board of trustees as a condition to withdrawal under
276     Subsection (5) shall, in addition to being expressed in the resolution, be reduced to a duly
277     authorized and executed written agreement between the parties to the withdrawal.
278          (7) An area that is the subject of a withdrawal petition under Section 17B-1-504 that
279     results in a board of trustees resolution denying the proposed withdrawal may not be the
280     subject of another withdrawal petition under Section 17B-1-504 for two years after the date of
281     the board of trustees resolution denying the withdrawal.
282          Section 3. Section 17B-1-607 is amended to read:
283          17B-1-607. Tentative budget to be prepared -- Review by governing body.
284          (1) On or before the first regularly scheduled meeting of the board of trustees in
285     November for a calendar year entity and May for a fiscal year entity, the budget officer of each
286     local district shall prepare for the ensuing year, [on forms provided by the state auditor] in a
287     format prescribed by the state auditor, and file with the board of trustees a tentative budget for
288     each fund for which a budget is required.
289          (2) (a) Each tentative budget under Subsection (1) shall provide in tabular form:
290          (i) actual revenues and expenditures for the last completed fiscal year;
291          (ii) estimated total revenues and expenditures for the current fiscal year; and
292          (iii) the budget officer's estimates of revenues and expenditures for the budget year.
293          (b) The budget officer shall estimate the amount of revenue available to serve the needs
294     of each fund, estimate the portion to be derived from all sources other than general property
295     taxes, and estimate the portion that shall be derived from general property taxes.
296          (3) The tentative budget, when filed by the budget officer with the board of trustees,
297     shall contain the estimates of expenditures together with specific work programs and any other
298     supporting data required by this part or requested by the board.
299          (4) The board of trustees shall review, consider, and tentatively adopt the tentative
300     budget in any regular meeting or special meeting called for that purpose and may amend or
301     revise the tentative budget in any manner that the board considers advisable prior to public
302     hearings, but no appropriation required for debt retirement and interest or reduction of any
303     existing deficits under Section 17B-1-613, or otherwise required by law, may be reduced below
304     the minimums so required.

305          (5) When a new district is created, the board of trustees shall:
306          (a) prepare a budget covering the period from the date of incorporation to the end of
307     the fiscal year;
308          (b) substantially comply with all other provisions of this part with respect to notices
309     and hearings; and
310          (c) pass the budget as soon after incorporation as feasible.
311          Section 4. Section 17B-1-609 is amended to read:
312          17B-1-609. Hearing to consider adoption -- Notice.
313          (1) At the meeting at which the tentative budget is adopted, the board of trustees shall:
314          (a) establish the time and place of a public hearing to consider its adoption; and
315          (b) except as provided in Subsection [(5)] (6), order that notice of the hearing:
316          (i) (A) be published at least seven days before the hearing in at least one issue of a
317     newspaper of general circulation [published] in the county or counties in which the district is
318     located; or
319          (B) if no newspaper is [published] circulated generally in the county or counties, be
320     posted in three public places within the district; and
321          (ii) be published at least seven days before the hearing on the Utah Public Notice
322     Website created in Section 63F-1-701.
323          (2) If the budget hearing is held in conjunction with a tax increase hearing, the notice
324     required in Subsection (1)(b):
325          (a) may be combined with the notice required under Section 59-2-919; and
326          (b) shall be published in accordance with the advertisement provisions of Section
327     59-2-919.
328          (3) If the budget hearing is to be held in conjunction with a fee increase hearing, the
329     notice required in Subsection (1)(b):
330          (a) may be combined with the notice required under Section 17B-1-643; and
331          (b) shall be published or mailed in accordance with the notice provisions of Section
332     17B-1-643.
333          [(3)] (4) Proof that notice was given in accordance with Subsection (1)(b), (2), (3), or
334     [(5)] (6) is prima face evidence that notice was properly given.
335          [(4)] (5) If a notice required under Subsection (1)(b), (2), (3), or [(5)] (6) is not

336     challenged within 30 days after the day on which the hearing is held, the notice is adequate and
337     proper.
338          [(5)] (6) A board of trustees of a local district with an annual operating budget of less
339     than $250,000 may satisfy the notice requirements in Subsection (1)(b) by:
340          (a) mailing a written notice, postage prepaid, to each voter in the local district [or
341     special service district]; and
342          (b) posting the notice in three public places within the district.
343          Section 5. Section 17B-1-643 is amended to read:
344          17B-1-643. Imposing or increasing a fee for service provided by local district.
345          (1) (a) Before imposing a new fee or increasing an existing fee for a service provided
346     by a local district, each local district board of trustees shall first hold a public hearing at which
347     any interested person may speak for or against the proposal to impose a fee or to increase an
348     existing fee.
349          (b) Each public hearing under Subsection (1)(a) shall be held in the evening beginning
350     no earlier than 6 p.m.
351          (c) A public hearing required under this Subsection (1) may be combined with a public
352     hearing on a tentative budget required under Section 17B-1-610.
353          (d) Except to the extent that this section imposes more stringent notice requirements,
354     the local district board shall comply with Title 52, Chapter 4, Open and Public Meetings Act,
355     in holding the public hearing under Subsection (1)(a).
356          (2) (a) Each local district board shall give notice of a hearing under Subsection (1) as
357     provided in Subsection (2)(b)(i) or (c).
358          (b) (i) (A) The notice required under Subsection (2)(a) shall be published:
359          (I) in a newspaper or combination of newspapers of general circulation in the local
360     district, if there is a newspaper or combination of newspapers of general circulation in the local
361     district; or
362          (II) if there is no newspaper or combination of newspapers of general circulation in the
363     local district, the local district board shall post at least one notice per 1,000 population within
364     the local district, at places within the local district that are most likely to provide actual notice
365     to residents within the local district.
366          (B) The notice described in Subsection (2)(b)(i)(A)(I):

367          (I) shall be no less than 1/4 page in size and the type used shall be no smaller than 18
368     point, and surrounded by a 1/4-inch border;
369          (II) may not be placed in that portion of the newspaper where legal notices and
370     classified advertisements appear;
371          (III) whenever possible, shall appear in a newspaper that is published at least one day
372     per week;
373          (IV) shall be in a newspaper or combination of newspapers of general interest and
374     readership in the local district, and not of limited subject matter; and
375          (V) shall be run once each week for the two weeks preceding the hearing.
376          (ii) The notice described in Subsection (2)(b)(i)(A) shall state that the local district
377     board intends to impose or increase a fee for a service provided by the local district and will
378     hold a public hearing on a certain day, time, and place fixed in the notice, which shall be not
379     less than seven days after the day the first notice is published, for the purpose of hearing
380     comments regarding the proposed imposition or increase of a fee and to explain the reasons for
381     the proposed imposition or increase.
382          (c) (i) In lieu of providing notice under Subsection (2)(b), the local district board of
383     trustees may give the notice required under Subsection (2)(a) by mailing the notice to those
384     within the district who:
385          (A) will be charged the fee for a district service, if the fee is being imposed for the first
386     time; or
387          (B) are being charged a fee, if the fee is proposed to be increased.
388          (ii) Each notice under Subsection (2)(c)(i) shall comply with Subsection (2)(b)(ii).
389          (iii) A notice under Subsection (2)(c)(i) may accompany a district bill for an existing
390     fee.
391          (d) If the hearing required under this section is combined with the public hearing
392     required under Section 17B-1-610, the notice [requirement] required under this Subsection (2)
393     [is satisfied if a notice that meets the requirements of Subsection (2)(b)(ii) is combined with]:
394          (i) may be combined with the notice required under Section 17B-1-609[.]; and
395          (ii) shall be published or mailed in accordance with the notice provisions of Subsection
396     (2)(c).
397          (e) Proof that notice was given as provided in Subsection (2)(b) or (c) is prima facie

398     evidence that notice was properly given.
399          (f) If no challenge is made to the notice given of a hearing required by Subsection (1)
400     within 30 days after the date of the hearing, the notice is considered adequate and proper.
401          (3) After holding a public hearing under Subsection (1), a local district board may:
402          (a) impose the new fee or increase the existing fee as proposed;
403          (b) adjust the amount of the proposed new fee or the increase of the existing fee and
404     then impose the new fee or increase the existing fee as adjusted; or
405          (c) decline to impose the new fee or increase the existing fee.
406          (4) This section applies to each new fee imposed and each increase of an existing fee
407     that occurs on or after July 1, 1998.
408          (5) (a) This section does not apply to an impact fee.
409          (b) The imposition or increase of an impact fee is governed by Title 11, Chapter 36a,
410     Impact Fees Act.
411          Section 6. Section 53-13-103 is amended to read:
412          53-13-103. Law enforcement officer.
413          (1) (a) "Law enforcement officer" means a sworn and certified peace officer who is an
414     employee of a law enforcement agency that is part of or administered by the state or any of its
415     political subdivisions, and whose primary and principal duties consist of the prevention and
416     detection of crime and the enforcement of criminal statutes or ordinances of this state or any of
417     its political subdivisions.
418          (b) "Law enforcement officer" [specifically] includes the following:
419          (i) any sheriff or deputy sheriff, chief of police, police officer, or marshal of any
420     county, city, or town;
421          (ii) the commissioner of public safety and any member of the Department of Public
422     Safety certified as a peace officer;
423          (iii) all persons specified in Sections 23-20-1.5 and 79-4-501;
424          (iv) any police officer employed by any college or university;
425          (v) investigators for the Motor Vehicle Enforcement Division;
426          (vi) investigators for the Department of Insurance, Fraud Division;
427          (vii) special agents or investigators employed by the attorney general, district attorneys,
428     and county attorneys;

429          (viii) employees of the Department of Natural Resources designated as peace officers
430     by law;
431          (ix) school district police officers as designated by the board of education for the
432     school district;
433          (x) the executive director of the Department of Corrections and any correctional
434     enforcement or investigative officer designated by the executive director and approved by the
435     commissioner of public safety and certified by the division;
436          (xi) correctional enforcement, investigative, or adult probation and parole officers
437     employed by the Department of Corrections serving on or before July 1, 1993;
438          (xii) members of a law enforcement agency established by a private college or
439     university provided that the college or university has been certified by the commissioner of
440     public safety according to rules of the Department of Public Safety;
441          (xiii) airport police officers of any airport owned or operated by the state or any of its
442     political subdivisions; and
443          (xiv) transit police officers designated under Section [17B-2a-823] 17B-2a-822.
444          (2) Law enforcement officers may serve criminal process and arrest violators of any
445     law of this state and have the right to require aid in executing their lawful duties.
446          (3) (a) A law enforcement officer has statewide full-spectrum peace officer authority,
447     but the authority extends to other counties, cities, or towns only when the officer is acting
448     under Title 77, Chapter 9, Uniform Act on Fresh Pursuit, unless the law enforcement officer is
449     employed by the state.
450          (b) (i) A local law enforcement agency may limit the jurisdiction in which its law
451     enforcement officers may exercise their peace officer authority to a certain geographic area.
452          (ii) Notwithstanding Subsection (3)(b)(i), a law enforcement officer may exercise
453     authority outside of the limited geographic area, pursuant to Title 77, Chapter 9, Uniform Act
454     on Fresh Pursuit, if the officer is pursuing an offender for an offense that occurred within the
455     limited geographic area.
456          (c) The authority of law enforcement officers employed by the Department of
457     Corrections is regulated by Title 64, Chapter 13, Department of Corrections - State Prison.
458          (4) A law enforcement officer shall, prior to exercising peace officer authority:
459          (a) (i) have satisfactorily completed the requirements of Section 53-6-205; or

460          (ii) have met the waiver requirements in Section 53-6-206; and
461          (b) have satisfactorily completed annual certified training of at least 40 hours per year
462     as directed by the director of the division, with the advice and consent of the council.