Senator Jerry W. Stevenson proposes the following substitute bill:


1     
LOCAL AND SPECIAL SERVICE 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 local and special service districts.
10     Highlighted Provisions:
11          This bill:
12          ▸     defines terms;
13          ▸     clarifies when a member of a board of trustees of a local district may complete
14     training;
15          ▸      clarifies notice requirements related to the imposition or increase of a fee for
16     service;
17          ▸     addresses the applicability of other provisions to a public transit district;
18          ▸     removes a provision that prohibits a person from riding a transit vehicle without
19     paying the applicable fare;
20          ▸     authorizes an improvement district created to operate a sewage system to acquire,
21     construct, or operate a resource recovery project;
22          ▸     establishes powers and duties of an improvement district that owns, acquires,
23     constructs, or operates a resource recovery project;
24          ▸     establishes the required provisions of an agreement between an improvement
25     district and a private person or a public agency for the ownership, acquisition,

26     construction, management, or operation of a resource recovery project; and
27          ▸     makes technical and conforming changes.
28     Money Appropriated in this Bill:
29          None
30     Other Special Clauses:
31          This bill provides a coordination clause.
32     Utah Code Sections Affected:
33     AMENDS:
34          17B-1-312, as last amended by Laws of Utah 2008, Chapter 360
35          17B-2a-403, as renumbered and amended by Laws of Utah 2007, Chapter 329
36          17B-1-643, as last amended by Laws of Utah 2015, Chapters 349 and 436
37          17B-2a-803, as last amended by Laws of Utah 2009, Chapter 364
38          17B-2a-821, as last amended by Laws of Utah 2014, Chapter 377
39     ENACTS:
40          19-6-508, Utah Code Annotated 1953
41     Utah Code Sections Affected by Coordination Clause:
42          17B-2a-803, as last amended by Laws of Utah 2009, Chapter 364
43     

44     Be it enacted by the Legislature of the state of Utah:
45          Section 1. Section 17B-1-312 is amended to read:
46          17B-1-312. Training for board members.
47          (1) (a) Each member of a board of trustees of a local district[, elected or appointed on
48     or after May 3, 1999, should] shall, within one year after taking office, complete the training
49     described in Subsection (2).
50          (b) For the purposes of Subsection (1)(a), a member of a board of trustees of a local
51     district takes office each time the member is elected or appointed to a new term, including an
52     appointment to fill a midterm vacancy in accordance with Subsection 17B-1-303(5) or (6).
53          (2) In conjunction with the Utah Association of Special Districts, the state auditor
54     shall:
55          (a) develop a training curriculum for the members of local district boards; and
56          (b) with the assistance of other state offices and departments the state auditor considers

57     appropriate and at times and locations established by the state auditor, carry out the training of
58     members of local district boards.
59          (3) (a) A local district board of trustees may compensate each member of the board up
60     to $100 per day for each day of training described in Subsection (2) that the member completes.
61          (b) The per diem amount authorized under Subsection (3)(a) is in addition to all other
62     amounts of compensation and expense reimbursement authorized under this chapter.
63          (c) A board of trustees may not pay compensation under Subsection (3)(a) to any board
64     member more than once per year.
65          (4) The state auditor shall issue a certificate of completion to each board member that
66     completes the training described in Subsection (2).
67          Section 2. Section 17B-1-643 is amended to read:
68          17B-1-643. Imposing or increasing a fee for service provided by local district.
69          (1) (a) Before imposing a new fee or increasing an existing fee for a service provided
70     by a local district, each local district board of trustees shall first hold a public hearing at which:
71          (i) the local district shall demonstrate its need to impose or increase the fee; and
72          (ii) any interested person may speak for or against the proposal to impose a fee or to
73     increase an existing fee.
74          (b) Each public hearing under Subsection (1)(a) shall be held in the evening beginning
75     no earlier than 6 p.m.
76          (c) A public hearing required under this Subsection (1) may be combined with a public
77     hearing on a tentative budget required under Section 17B-1-610.
78          (d) Except to the extent that this section imposes more stringent notice requirements,
79     the local district board shall comply with Title 52, Chapter 4, Open and Public Meetings Act,
80     in holding the public hearing under Subsection (1)(a).
81          (2) (a) Each local district board shall give notice of a hearing under Subsection (1) as
82     provided in Subsections (2)(b) and (c) or Subsection (2)(d).
83          (b) The notice required under Subsection (2)(a) shall be published:
84          (i) on the Utah Public Notice Website established in Section 63F-1-701; and
85          (ii) (A) in a newspaper or combination of newspapers of general circulation in the local
86     district, if there is a newspaper or combination of newspapers of general circulation in the local
87     district; or

88          (B) if there is no newspaper or combination of newspapers of general circulation in the
89     local district, the local district board shall post at least one notice per 1,000 population within
90     the local district, at places within the local district that are most likely to provide actual notice
91     to residents within the local district.
92          (c) (i) The notice described in Subsection (2)(b)(ii)(A):
93          (A) shall be no less than 1/4 page in size and the type used shall be no smaller than 18
94     point, and surrounded by a 1/4-inch border;
95          (B) may not be placed in that portion of the newspaper where legal notices and
96     classified advertisements appear;
97          (C) whenever possible, shall appear in a newspaper that is published at least one day
98     per week;
99          (D) shall be in a newspaper or combination of newspapers of general interest and
100     readership in the local district, and not of limited subject matter; and
101          (E) shall be run once each week for the two weeks preceding the hearing.
102          (ii) The notice described in Subsection (2)(b) shall state that the local district board
103     intends to impose or increase a fee for a service provided by the local district and will hold a
104     public hearing on a certain day, time, and place fixed in the notice, which shall be not less than
105     seven days after the day the first notice is published, for the purpose of hearing comments
106     regarding the proposed imposition or increase of a fee and to explain the reasons for the
107     proposed imposition or increase.
108          (d) (i) In lieu of providing notice under Subsection (2)(b), the local district board of
109     trustees may give the notice required under Subsection (2)(a) by mailing the notice to those
110     within the district who:
111          (A) will be charged the fee for a district service, if the fee is being imposed for the first
112     time; or
113          (B) are being charged a fee, if the fee is proposed to be increased.
114          (ii) Each notice under Subsection (2)(d)(i) shall comply with Subsection (2)(c)(ii).
115          (iii) A notice under Subsection (2)(d)(i) may accompany a district bill for an existing
116     fee.
117          (e) If the hearing required under this section is combined with the public hearing
118     required under Section 17B-1-610, the notice required under this Subsection (2):

119          (i) may be combined with the notice required under Section 17B-1-609; and
120          (ii) shall be published, posted, or mailed in accordance with the notice provisions of
121     [Subsection (2)(d)] this section.
122          (f) Proof that notice was given as provided in Subsection (2)(b) or (d) is prima facie
123     evidence that notice was properly given.
124          (g) If no challenge is made to the notice given of a hearing required by Subsection (1)
125     within 30 days after the date of the hearing, the notice is considered adequate and proper.
126          (3) After holding a public hearing under Subsection (1), a local district board may:
127          (a) impose the new fee or increase the existing fee as proposed;
128          (b) adjust the amount of the proposed new fee or the increase of the existing fee and
129     then impose the new fee or increase the existing fee as adjusted; or
130          (c) decline to impose the new fee or increase the existing fee.
131          (4) This section applies to each new fee imposed and each increase of an existing fee
132     that occurs on or after July 1, 1998.
133          (5) (a) This section does not apply to an impact fee.
134          (b) The imposition or increase of an impact fee is governed by Title 11, Chapter 36a,
135     Impact Fees Act.
136          Section 3. Section 17B-2a-403 is amended to read:
137          17B-2a-403. Additional improvement district powers.
138          (1) In addition to the powers conferred on an improvement district under Section
139     17B-1-103, an improvement district may:
140          (a) acquire through construction, purchase, gift, or condemnation, or any combination
141     of these methods, and [may] operate all or any part of a system for:
142          (i) [a system for] the supply, treatment, and distribution of water;
143          (ii) [a system for] the collection, treatment, and disposition of sewage;
144          (iii) [a system for] the collection, retention, and disposition of storm and flood waters;
145          (iv) [a system for] the generation, distribution, and sale of electricity, subject to Section
146     17B-2a-406; and
147          (v) [a system for] the transmission of natural or manufactured gas if [the system is]:
148          (A) the system is connected to a gas plant, as defined in Section 54-2-1, of a gas
149     corporation, as defined in Section 54-2-1, that is regulated under Section 54-4-1; [and]

150          (B) the system is to be used to facilitate gas utility service within the district [if]; and
151          (C) the gas utility service [is] was not available within the district [prior to] before the
152     acquisition [or construction] of the system;
153          (b) issue bonds [as provided] in [and subject to] accordance with Chapter 1, Part 11,
154     Local District Bonds, to carry out the purposes of the improvement district;
155          (c) appropriate or [otherwise] acquire water [and] or water rights inside or outside [its]
156     the improvement district's boundaries;
157          (d) sell water or other services to consumers residing outside [its] the improvement
158     district's boundaries;
159          (e) enter into a contract with a gas corporation that is regulated under Section 54-4-1
160     to:
161          (i) provide for the operation or maintenance of all or part of a system for the
162     transmission of natural or manufactured gas; or [to]
163          (ii) lease or sell all or a portion of [that] a system described in Subsection (1)(e)(i) to a
164     gas corporation;
165          (f) enter into a contract with a person for:
166          (i) the purchase or sale of water or electricity;
167          (ii) the use of any facility owned by the person; or
168          (iii) the purpose of handling the person's industrial and commercial waste and sewage;
169          (g) require pretreatment of industrial and commercial waste and sewage; and
170          (h) impose a penalty or surcharge against a public entity or other person with which the
171     improvement district has entered into a contract for the construction, acquisition, or operation
172     of all or a part of a system for the collection, treatment, and disposal of sewage, if the public
173     entity or other person fails to comply with the provisions of the contract.
174          (2) The new gas utility service under Subsection (1)(a)(v)(B) shall be provided by a gas
175     corporation regulated under Section 54-4-1 and not by the district.
176          (3) An improvement district may not begin to provide sewer service to an area where
177     sewer service is already provided by an existing sewage collection system operated by a
178     municipality or other political subdivision unless the municipality or other political subdivision
179     gives its written consent.
180          (4) An improvement district authorized to operate all or any part of a system for the

181     collection, treatment, or disposition of sewage may acquire, construct, or operate a resource
182     recovery project in accordance with Section 19-6-508.
183          Section 4. Section 17B-2a-803 is amended to read:
184          17B-2a-803. Provisions applicable to public transit districts.
185          (1) (a) Each public transit district is governed by and has the powers stated in:
186          (i) this part; and
187          (ii) except as provided in Subsection (1)(b), Chapter 1, Provisions Applicable to All
188     Local Districts.
189          (b) (i) Except for Sections 17B-1-301, 17B-1-311, and 17B-1-313, the following
190     provisions do not apply to public transit districts:
191          (A) Chapter 1, Part 3, Board of Trustees; and
192          (B) Section 17B-2a-905.
193          (ii) A public transit district is not subject to Chapter 1, Part 6, Fiscal Procedures for
194     Local Districts.
195          (2) This part applies only to public transit districts.
196          (3) A public transit district is not subject to the provisions of any other part of this
197     chapter.
198          (4) If there is a conflict between a provision in Chapter 1, Provisions Applicable to All
199     Local Districts, and a provision in this part, the provision in this part governs.
200          (5) The provisions of Subsection 53-3-202(3)(b) do not apply to a motor vehicle owned
201     in whole or in part by a public transit district.
202          Section 5. Section 17B-2a-821 is amended to read:
203          17B-2a-821. Multicounty district may establish and enforce parking ordinance.
204          [(1) A person may not ride a transit vehicle without payment of the applicable fare
205     established by the public transit district that operates the transit vehicle.]
206          [(2)] The board of trustees of a multicounty district may adopt an ordinance governing
207     parking of vehicles at a transit facility, including the imposition of a fine or civil penalty for a
208     violation of the ordinance.
209          Section 6. Section 19-6-508 is enacted to read:
210          19-6-508. Resource recovery project operated by an improvement district.
211          (1) As used in this section, "resource recovery project" means a project that consists of

212     facilities for the handling, treatment and processing through anaerobic digestion, and resource
213     recovery, of solid waste consisting primarily of organic matter.
214          (2) An improvement district authorized to operate all or any part of a system for the
215     collection, treatment, or disposition of sewage under Section 17B-2a-403 may own, acquire,
216     construct, or operate a resource recovery project in accordance with this section.
217          (3) An improvement district described in Subsection (2) may:
218          (a) (i) own, acquire, construct, or operate a resource recovery project independently; or
219          (ii) subject to Subsection (4), enter into a short- or long-term agreement for the
220     ownership, acquisition, construction, management, or operation of a resource recovery project
221     with:
222          (A) a public agency, as defined in Section 11-13-103;
223          (B) a private person; or
224          (C) a combination of persons listed in Subsections (3)(a)(ii)(A) and (B);
225          (b) accept and disburse money from a federal or state grant or any other source for the
226     acquisition, construction, operation, maintenance, or improvement of a resource recovery
227     project;
228          (c) contract for the lease or purchase of land, a facility, or a vehicle for the operation of
229     a resource recovery project;
230          (d) establish one or more policies for the operation of a resource recovery project,
231     including:
232          (i) the hours of operation;
233          (ii) the character and kind of waste accepted by the resource recovery project; and
234          (iii) any policy necessary to ensure the safety of the resource recovery project
235     personnel;
236          (e) sell or contract for the sale of usable material, energy, fuel, or heat separated,
237     extracted, recycled, or recovered from solid waste that consists primarily of organic matter in a
238     resource recovery project;
239          (f) issue a bond in accordance with Title 17B, Chapter 1, Part 11, Local District Bonds;
240          (g) issue an industrial development revenue bond in accordance with Title 11, Chapter
241     17, Utah Industrial Facilities and Development Act, to pay the costs of financing a project, as
242     defined in Section 11-17-2, that consists of a resource recovery project;

243          (h) agree to construct and operate a resource recovery project that manages the solid
244     waste of a public entity or a private person, in accordance with one or more contracts and other
245     arrangements described in a proceeding according to which a bond is issued; and
246          (i) contract for and accept solid waste that consists primarily of organic matter at a
247     resource recovery project regardless of whether the solid waste is generated inside or outside
248     the boundaries of the improvement district.
249          (4) (a) An agreement described in Subsection (3)(a)(ii) shall:
250          (i) contain provisions that the improvement district's board determines are in the best
251     interests of the improvement district, including provisions that address:
252          (A) the purposes of the agreement;
253          (B) the duration of the agreement;
254          (C) the method of appointing or employing necessary personnel;
255          (D) the method of financing the resource recovery project, including the apportionment
256     of costs of construction and operation;
257          (E) the ownership interest of each owner in the resource recovery project and other
258     property used in connection with the resource recovery project;
259          (F) the procedures for the disposition of property when the agreement expires or is
260     terminated, or when the resource recovery project ceases operation for any reason;
261          (G) any agreement of the parties prohibiting or restricting the alienation or partition of
262     the undivided interests of an owner in the resource recovery project;
263          (H) the construction and repair of the resource recovery project, including, if the parties
264     agree, a determination that one of the parties may construct or repair the resource recovery
265     project as agent for all parties to the agreement;
266          (I) the administration, operation, and maintenance of the resource recovery project,
267     including, if the parties agree, a determination that one of the parties may administer, operate,
268     and maintain the resource recovery project as agent for all parties to the agreement;
269          (J) the creation of a committee of representatives of the parties to the agreement,
270     including the committee's powers;
271          (K) if the parties agree, a provision that if any party defaults in the performance or
272     discharge of the party's obligations under the agreement, the other parties may perform or
273     assume, pro rata or otherwise, the obligations of the defaulting party and may, if the defaulting

274     party fails to remedy the default, succeed to or require the disposition of the rights and interests
275     of the defaulting party in the resource recovery project;
276          (L) provisions for indemnification of construction, operation, and administration agents
277     for completing construction, handling emergencies, and allocating output of the resource
278     recovery project among the parties to the agreement according to the ownership interests of the
279     parties;
280          (M) methods for amending and terminating the agreement; and
281          (N) any other matter determined by the parties to the agreement to be necessary; and
282          (ii) provide for an equitable method of allocating operation, repair, and maintenance
283     costs of the resource recovery project.
284          (b) A provision under Subsection (4)(a)(i)(G) is not subject to any law restricting
285     covenants against alienation or partition.
286          (c) An improvement district's ownership interest in a resource recovery project may not
287     be less than the proportion of money or the value of property supplied by the improvement
288     district for the acquisition and construction of the resource recovery project.
289          Section 7. Coordinating H.B. 347 with S.B. 12 -- Modifying substantive language.
290           If this H.B. 347 passes and becomes law, and S.B. 12, Passenger Carrier Requirements,
291     does not pass and become law, it is the intent of the Legislature that the Office of Legislative
292     Research and General Counsel, in preparing the Utah Code database for publication, not give
293     effect to the amendments made by H.B. 347 in Section 17B-2a-803.