1     
GOVERNMENT ENTERPRISE AMENDMENTS

2          
2018 GENERAL SESSION

3     
STATE OF UTAH

4     
Chief Sponsor: Justin L. Fawson

5     
Senate Sponsor: ____________

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7     LONG TITLE
8     General Description:
9          This bill amends provisions related to competitive activities provided by a county or
10     city.
11     Highlighted Provisions:
12          This bill:
13          ▸     requires a city or a county, before authorizing a competitive activity involving
14     recreation or entertainment, to:
15               •     conduct a market study;
16               •     notify private entities that the competitive activity impacts; and
17               •     present the results of the study at a public hearing; and
18          ▸     makes technical and conforming changes.
19     Money Appropriated in this Bill:
20          None
21     Other Special Clauses:
22          None
23          Utah Code Sections Affected:
24     AMENDS:
25          10-1-119, as last amended by Laws of Utah 2014, Chapter 189
26          17-50-107, as last amended by Laws of Utah 2013, Chapter 325
27          


28     Be it enacted by the Legislature of the state of Utah:
29          Section 1. Section 10-1-119 is amended to read:
30          10-1-119. Competitive activities - Inventory - Prohibition.
31          (1) As used in this section:
32          (a) "Applicable city" means:
33          (i) on and after July 1, 2009, a city of the first class; and
34          (ii) on and after July 1, 2010, a city of the first or second class.
35          (b) "Competitive activity" means an activity [engaged in by] that a city or an entity
36     created by the city [by which the city or an entity created by the city provides] undertakes to
37     provide a good or service that is substantially similar to a good or service that [is provided by]
38     a person provides:
39          (i) who is not an entity of the federal government, state government, or a political
40     subdivision of the state; and
41          (ii) within the boundary of the county in which the city is located.
42          (c) (i) Subject to Subsection (1)(c)(ii), "entity [created by] the city creates" includes:
43          (A) an entity created by an interlocal agreement under Title 11, Chapter 13, Interlocal
44     Cooperation Act, in which the city participates; and
45          (B) a special service district created under Title 17D, Chapter 1, Special Service
46     District Act.
47          (ii) "Entity [created by] the city creates" does not include a local district [created by]
48     that a city creates under Title 17B, Limited Purpose Local Government Entities - Local
49     Districts.
50          (2) (a) The governing body of an applicable city shall create an inventory of activities
51     of the city or an entity [created by] the city creates to:
52          (i) classify whether an activity is a competitive activity; and
53          (ii) identify efforts that have been made to privatize aspects of the activity.
54          (b) An applicable city shall comply with this section by no later than:
55          (i) June 30, 2010, if the applicable city is a city of the first class; and
56          (ii) June 30, 2011, if the applicable city is a city of the second class.
57          (3) The governing body of an applicable city shall update the inventory created under
58     this section at least every two years.

59          (4) An applicable city shall:
60          (a) provide a copy of the inventory and an update to the inventory to the Free Market
61     Protection and Privatization Board created in Title 63I, Chapter 4a, Free Market Protection and
62     Privatization Board Act; and
63          (b) make the inventory available to the public through electronic means.
64          (5) Before the governing body of an applicable city authorizes a competitive activity
65     involving recreation or entertainment, the governing body shall:
66          (a) conduct a market impact study that evaluates:
67          (i) the extent to which the competitive activity will affect the local economy;
68          (ii) the effect that the competitive activity will have on the applicable city's budget and
69     tax rate; and
70          (iii) whether there are any private entities within the state that could provide the
71     competitive activity;
72          (b) (i) notify any private entities identified in the study described in Subsection (5)(a)
73     that the city is considering pursuing the competitive activity; and
74          (ii) allow a private entity an opportunity to respond to the city with the entity's
75     concerns;
76          (c) hold a public hearing in accordance with Subsection (5)(d) and present at the public
77     hearing:
78          (i) the results of the study described in Subsection (5)(a);
79          (ii) an explanation of why the city considers the city's pursuit of the competitive
80     activity to be necessary;
81          (iii) the effect that the competitive activity will have on the city's budget and tax rate;
82     and
83          (iv) a list of any private entities identified in Subsection (5)(a)(iii); and
84          (d) ensure that a public hearing described in Subsection (5)(c):
85          (i) is open to the public; and
86          (ii) is advertised at least two weeks before the day on which the public hearing is held:
87          (A) in a newspaper of general circulation within the applicable city; and
88          (B) on the Utah Public Notice Website created in Section 63F-1-701.
89          Section 2. Section 17-50-107 is amended to read:

90          17-50-107. Competitive activities - Inventory - Prohibition.
91          (1) As used in this section:
92          (a) "Applicable county" means:
93          (i) on and after July 1, 2009, a county of the first class; and
94          (ii) on and after July 1, 2010, a county of the first or second class.
95          (b) "Competitive activity" means an activity [engaged in by] that a county or an entity
96     created by the county [by which the county or an entity created by the county provides]
97     undertakes to provide a good or service that is substantially similar to a good or service that [is
98     provided by] a person provides:
99          (i) who is not an entity of the federal government, state government, or a political
100     subdivision of the state; and
101          (ii) within the boundary of the county.
102          (c) (i) Subject to Subsection (1)(c)(ii), "entity [created by] the county creates" includes:
103          (A) an entity created by an interlocal agreement under Title 11, Chapter 13, Interlocal
104     Cooperation Act, in which the county participates; and
105          (B) a special service district created under Title 17D, Chapter 1, Special Service
106     District Act.
107          (ii) "Entity [created by] the county creates" does not include a local district created by a
108     county under Title 17B, Limited Purpose Local Government Entities - Local Districts.
109          (2) (a) The governing body of an applicable county shall create an inventory of
110     activities of the county or an entity [created by] the county creates to:
111          (i) classify whether an activity is a competitive activity; and
112          (ii) identify efforts that have been made to privatize aspects of the activity.
113          (b) An applicable county shall comply with this section by no later than:
114          (i) June 30, 2010, if the applicable county is a county of the first class; and
115          (ii) June 30, 2011, if the applicable county is a county of the second class.
116          (3) The governing body of an applicable county shall update the inventory created
117     under this section at least every two years.
118          (4) An applicable county shall:
119          (a) provide a copy of the inventory and an update to the inventory to the Free Market
120     Protection and Privatization Board created in Title 63I, Chapter 4a, Free Market Protection and

121     Privatization Board Act; and
122          (b) make the inventory available to the public through electronic means.
123          (5) Before the governing body of an applicable county authorizes a competitive activity
124     involving recreation or entertainment, the governing body shall:
125          (a) conduct a market impact study that evaluates:
126          (i) the extent to which the competitive activity will affect the local economy;
127          (ii) the effect that the competitive activity will have on the applicable county's budget
128     and tax rate; and
129          (iii) whether there are any private entities that could provide the competitive activity;
130          (b) (i) notify any private entities identified in the study described in Subsection (5)(a)
131     that the county is considering pursuing the competitive activity; and
132          (ii) allow a private entity an opportunity to respond to the county with the entity's
133     concerns;
134          (c) hold a public hearing in accordance with Subsection (5)(d) and present at the public
135     hearing:
136          (i) the results of the study described in Subsection (5)(a);
137          (ii) an explanation of why the county considers the county's pursuit of the competitive
138     activity to be necessary;
139          (iii) the effect that the competitive activity will have on the county's budget and tax
140     rate; and
141          (iv) an explanation for why a private entity cannot provide the competitive activity; and
142          (d) ensure that a public hearing described in Subsection (5)(c):
143          (i) is open to the public; and
144          (ii) is advertised at least two weeks before the day on which the public hearing is held:
145          (A) in a newspaper of general circulation within the applicable county; and
146          (B) on the Utah Public Notice Website created in Section 63F-1-701.






Legislative Review Note
Office of Legislative Research and General Counsel