1     
SPECIAL DISTRICT AMENDMENTS

2     
2016 GENERAL SESSION

3     
STATE OF UTAH

4     
Chief Sponsor: Stephen G. Handy

5     
Senate Sponsor: Jerry W. Stevenson

6     

7     LONG TITLE
8     General Description:
9          This bill amends provisions related to a local and a special service district.
10     Highlighted Provisions:
11          This bill:
12          ▸     provides that certain members of a local district board of trustees do not need to
13     reside within the local district;
14          ▸     amends reporting requirements related to the withdrawal of a municipality from a
15     local district; and
16          ▸     makes technical changes.
17     Money Appropriated in this Bill:
18          None
19     Other Special Clauses:
20          None
21     Utah Code Sections Affected:
22     AMENDS:
23          17B-1-302, as last amended by Laws of Utah 2011, Chapter 68
24          17B-1-505, as last amended by Laws of Utah 2015, Chapter 352
25          17B-1-512, as last amended by Laws of Utah 2014, Chapter 189
26          17B-1-513, as renumbered and amended by Laws of Utah 2007, Chapter 329
27     

28     Be it enacted by the Legislature of the state of Utah:
29          Section 1. Section 17B-1-302 is amended to read:

30          17B-1-302. Board member qualifications -- Number of board members.
31          (1) (a) Each member of a local district board of trustees shall be:
32          (i) a registered voter at the location of the member's residence; and
33          (ii) except as otherwise provided in [Subsections] this Subsection (1)[(b) and (c)], a
34     resident within:
35          (A) the boundaries of the local district; and
36          (B) if applicable, the boundaries of the division of the local district from which the
37     member is elected.
38          (b) (i) As used in this Subsection (1)(b):
39          (A) "Proportional number" means the number of members of a board of trustees that
40     bears, as close as mathematically possible, the same proportion to all members of the board that
41     the number of seasonally occupied homes bears to all residences within the district that receive
42     service from the district.
43          (B) "Seasonally occupied home" means a single-family residence:
44          (I) that is located within the local district;
45          (II) that receives service from the local district; and
46          (III) whose owner:
47          (Aa) does not reside permanently at the residence; and
48          (Bb) may occupy the residence on a temporary or seasonal basis.
49          (ii) If over 50% of the residences within a local district that receive service from the
50     local district are seasonally occupied homes, the requirement under Subsection (1)(a)(ii) is
51     replaced, for a proportional number of members of the board of trustees, with the requirement
52     that the member be an owner of land, or an agent or officer of the owner of land, that:
53          (A) receives service from the district; and
54          (B) is located within:
55          (I) the local district; and
56          (II) if applicable, the division from which the member is elected.
57          (c) For a board of trustees member in a basic local district that has within its

58     boundaries fewer than one residential dwelling unit per 10 acres of land, the requirement under
59     Subsection (1)(a)(ii) is replaced with the requirement that the member be an owner of land
60     within the local district that receives service from the district, or an agent or officer of the
61     owner.
62          (d) A member of the board of trustees of a service area described in Subsection
63     17B-2a-905(2)(a) or (3)(a), who is an elected official of the county appointing the individual, is
64     not subject to the requirements described in Subsection (1)(a)(ii) if the elected official was
65     elected at large by the voters of the county.
66          (2) Except as otherwise provided by statute, the number of members of each board of
67     trustees of a local district shall be an odd number that is no less than three.
68          (3) For a newly created local district, the number of members of the initial board of
69     trustees shall be the number specified:
70          (a) for a local district whose creation was initiated by a petition under Subsection
71     17B-1-203(1)(a), (b), or (c), in the petition; or
72          (b) for a local district whose creation was initiated by a resolution under Subsection
73     17B-1-203(1)(d) or (e), in the resolution.
74          (4) (a) For an existing local district, the number of members of the board of trustees
75     may be changed by a two-thirds vote of the board of trustees.
76          (b) No change in the number of members of a board of trustees under Subsection (4)(a)
77     may:
78          (i) violate Subsection (2); or
79          (ii) serve to shorten the term of any member of the board.
80          Section 2. Section 17B-1-505 is amended to read:
81          17B-1-505. Withdrawal of municipality in certain districts providing fire
82     protection, paramedic, and emergency services or law enforcement service.
83          (1) (a) The process to withdraw an area from a local district may be initiated by a
84     resolution adopted by the legislative body of a municipality, subject to Subsection (1)(b), that is
85     entirely within the boundaries of a local district:

86          (i) that provides:
87          (A) fire protection, paramedic, and emergency services;
88          (B) law enforcement service; or
89          (C) municipal services, as defined in Section 17B-2a-1102; and
90          (ii) in the creation of which an election was not required because of Subsection
91     17B-1-214(3)(d) or (g).
92          (b) A municipal legislative body of a municipality that is within a municipal services
93     district established under Chapter 2a, Part 11, Municipal Services District Act, may not adopt a
94     resolution under Subsection (1)(a) to withdraw from the municipal services district unless the
95     municipality has conducted a feasibility study in accordance with Section 17B-2a-1110.
96          (c) Within 10 days after adopting a resolution under Subsection (1)(a), the municipal
97     legislative body shall submit to the board of trustees of the local district written notice of the
98     adoption of the resolution, accompanied by a copy of the resolution.
99          (2) If a resolution is adopted under Subsection (1)(a), the municipal legislative body
100     shall hold an election at the next municipal general election that is more than 60 days after
101     adoption of the resolution on the question of whether the municipality should withdraw from
102     the local district.
103          (3) If a majority of those voting on the question of withdrawal at an election held under
104     Subsection (2) vote in favor of withdrawal, the municipality shall be withdrawn from the local
105     district.
106          (4) (a) Within 10 days after the canvass of an election at which a withdrawal under this
107     section is submitted to voters, the municipal legislative body shall send written notice to the
108     board of the local district from which the municipality is proposed to withdraw.
109          (b) Each notice under Subsection (4)(a) shall:
110          (i) state the results of the withdrawal election; and
111          (ii) if the withdrawal was approved by voters, be accompanied by a [map or legal
112     description of the area to be withdrawn, adequate for purposes of the county assessor and
113     recorder] copy of an approved final local entity plat, as defined in Section 67-1a-6.5.

114          (5) The effective date of a withdrawal under this section is governed by Subsection
115     17B-1-512(2)(a).
116          Section 3. Section 17B-1-512 is amended to read:
117          17B-1-512. Filing of notice and plat -- Recording requirements -- Contest period
118     -- Judicial review.
119          (1) (a) Within the time specified in Subsection (1)(b), the board of trustees shall file
120     with the lieutenant governor:
121          (i) a copy of a notice of an impending boundary action, as defined in Section 67-1a-6.5,
122     that meets the requirements of Subsection 67-1a-6.5(3); and
123          (ii) a copy of an approved final local entity plat, as defined in Section 67-1a-6.5.
124          (b) The board of trustees shall file the documents listed in Subsection (1)(a):
125          (i) within 10 days after adopting a resolution approving a withdrawal under Section
126     17B-1-510; [and]
127          [(ii) as soon as practicable]
128          (ii) on or before January 31 of the year following the board of trustees' receipt of a
129     notice or copy described in Subsection (1)(c), if the board of trustees receives the notice or
130     copy between July 1 and December 31; or
131          (iii) on or before the July 31 following the board of trustees' receipt of a notice or copy
132     described in Subsection (1)(c), if the board of trustees receives the notice or copy between
133     January 1 and June 30.
134          (c) The board of trustees shall comply with the requirements described in Subsection
135     (1)(b)(ii) or (iii) after receiving:
136          (i) a notice under Subsection 10-2-425(2) of an automatic withdrawal under Subsection
137     17B-1-502(2)[, after receiving];
138          (ii) a copy of the municipal legislative body's resolution approving an automatic
139     withdrawal under Subsection 17B-1-502(3)(a)[, or after receiving]; or
140          (iii) notice of a withdrawal of a municipality from a local district under Section
141     17B-1-502.

142          [(c)] (d) Upon the lieutenant governor's issuance of a certificate of withdrawal under
143     Section 67-1a-6.5, the board shall:
144          (i) if the withdrawn area is located within the boundary of a single county, submit to
145     the recorder of that county:
146          (A) the original:
147          (I) notice of an impending boundary action;
148          (II) certificate of withdrawal; and
149          (III) approved final local entity plat; and
150          (B) if applicable, a certified copy of the resolution or notice referred to in Subsection
151     (1)(b); or
152          (ii) if the withdrawn area is located within the boundaries of more than a single county,
153     submit:
154          (A) the original of the documents listed in Subsections (1)(c)(i)(A)(I), (II), and (III)
155     and, if applicable, a certified copy of the resolution or notice referred to in Subsection (1)(b) to
156     one of those counties; and
157          (B) a certified copy of the documents listed in Subsections (1)(c)(i)(A)(I), (II), and (III)
158     and a certified copy of the resolution or notice referred to in Subsection (1)(b) to each other
159     county.
160          (2) (a) Upon the lieutenant governor's issuance of the certificate of withdrawal under
161     Section 67-1a-6.5 for a withdrawal under Section 17B-1-510, for an automatic withdrawal
162     under Subsection 17B-1-502(3), or for the withdrawal of a municipality from a local district
163     under Section 17B-1-505, the withdrawal shall be effective, subject to the conditions of the
164     withdrawal resolution, if applicable.
165          (b) An automatic withdrawal under Subsection 17B-1-502(3) shall be effective upon
166     the lieutenant governor's issuance of a certificate of withdrawal under Section 67-1a-6.5.
167          (3) (a) The local district may provide for the publication of any resolution approving or
168     denying the withdrawal of an area:
169          (i) in a newspaper of general circulation in the area proposed for withdrawal; and

170          (ii) as required in Section 45-1-101.
171          (b) In lieu of publishing the entire resolution, the local district may publish a notice of
172     withdrawal or denial of withdrawal, containing:
173          (i) the name of the local district;
174          (ii) a description of the area proposed for withdrawal;
175          (iii) a brief explanation of the grounds on which the board of trustees determined to
176     approve or deny the withdrawal; and
177          (iv) the times and place where a copy of the resolution may be examined, which shall
178     be at the place of business of the local district, identified in the notice, during regular business
179     hours of the local district as described in the notice and for a period of at least 30 days after the
180     publication of the notice.
181          (4) Any sponsor of the petition or receiving entity may contest the board's decision to
182     deny a withdrawal of an area from the local district by submitting a request, within 60 days
183     after the resolution is adopted under Section 17B-1-510, to the board of trustees, suggesting
184     terms or conditions to mitigate or eliminate the conditions upon which the board of trustees
185     based its decision to deny the withdrawal.
186          (5) Within 60 days after the request under Subsection (4) is submitted to the board of
187     trustees, the board may consider the suggestions for mitigation and adopt a resolution
188     approving or denying the request in the same manner as provided in Section 17B-1-510 with
189     respect to the original resolution denying the withdrawal and file a notice of the action as
190     provided in Subsection (1).
191          (6) (a) Any person in interest may seek judicial review of:
192          (i) the board of trustees' decision to withdraw an area from the local district;
193          (ii) the terms and conditions of a withdrawal; or
194          (iii) the board's decision to deny a withdrawal.
195          (b) Judicial review under this Subsection (6) shall be initiated by filing an action in the
196     district court in the county in which a majority of the area proposed to be withdrawn is located:
197          (i) if the resolution approving or denying the withdrawal is published under Subsection

198     (3), within 60 days after the publication or after the board of trustees' denial of the request
199     under Subsection (5);
200          (ii) if the resolution is not published pursuant to Subsection (3), within 60 days after
201     the resolution approving or denying the withdrawal is adopted; or
202          (iii) if a request is submitted to the board of trustees of a local district under Subsection
203     (4), and the board adopts a resolution under Subsection (5), within 60 days after the board
204     adopts a resolution under Subsection (5) unless the resolution is published under Subsection
205     (3), in which event the action shall be filed within 60 days after the publication.
206          (c) A court in which an action is filed under this Subsection (6) may not overturn, in
207     whole or in part, the board of trustees' decision to approve or reject the withdrawal unless:
208          (i) the court finds the board of trustees' decision to be arbitrary or capricious; or
209          (ii) the court finds that the board materially failed to follow the procedures set forth in
210     this part.
211          (d) A court may award costs and expenses of an action under this section, including
212     reasonable attorney fees, to the prevailing party.
213          (7) After the applicable contest period under Subsection (4) or (6), no person may
214     contest the board of trustees' approval or denial of withdrawal for any cause.
215          Section 4. Section 17B-1-513 is amended to read:
216          17B-1-513. Termination of terms of trustees representing withdrawn areas.
217          (1) [On] Except as provided in Subsection (4), on the effective date of withdrawal of
218     an area from a local district, any trustee residing in the withdrawn area shall cease to be a
219     member of the board of trustees of the local district.
220          (2) [If] Except as provided in Subsection (4), if the local district has been divided into
221     divisions for the purpose of electing or appointing trustees and the area withdrawn from a
222     district constitutes all or substantially all of the area in a division of the local district that is
223     represented by a member of the board of trustees, on the effective date of the withdrawal, the
224     trustee representing the division shall cease to be a member of the board of trustees of the local
225     district.

226          (3) In the event of a vacancy on the board of trustees as a result of an area being
227     withdrawn from the local district:
228          (a) the board of trustees shall reduce the number of trustees of the local district as
229     provided by law; or
230          (b) the trustee vacancy shall be filled as provided by law.
231          (4) Subsections (1) and (2) apply only to a trustee who is required by law to be a
232     resident of the local district or of a particular division within the local district.