Representative Stephen G. Handy proposes the following substitute bill:


1     
LOCAL GOVERNMENT FINANCIAL AMENDMENTS

2     
2018 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 district's insurance and revenue.
10     Highlighted Provisions:
11          This bill:
12          ▸     encourages a local district with a certain budget to obtain liability insurance;
13          ▸     modifies the balance a local district may accumulate in the district's general fund;
14          ▸     allows a certain county or municipality to share revenue other than sales tax for a
15     municipal services district purpose and provides for the use of that revenue; and
16          ▸     makes technical and conforming changes.
17     Money Appropriated in this Bill:
18          None
19     Other Special Clauses:
20          None
21     Utah Code Sections Affected:
22     AMENDS:
23          17B-1-113, as renumbered and amended by Laws of Utah 2007, Chapter 329
24          17B-1-612, as renumbered and amended by Laws of Utah 2007, Chapter 329
25          17B-2a-703, as last amended by Laws of Utah 2014, Chapter 377
26          17B-2a-1109, as enacted by Laws of Utah 2014, Chapter 405
27     

28     Be it enacted by the Legislature of the state of Utah:
29          Section 1. Section 17B-1-113 is amended to read:
30          17B-1-113. Liability insurance.
31          (1) Each local district with an annual operating budget of $50,000 or more shall obtain
32     liability insurance as considered appropriate by the local district board.
33          (2) Each local district with an annual operating budget of less than $50,000 is not
34     required to obtain liability insurance, but liability insurance is encouraged, as considered
35     appropriate by the local district board.
36          Section 2. Section 17B-1-612 is amended to read:
37          17B-1-612. Accumulated fund balances -- Limitations -- Excess balances --
38     Unanticipated excess of revenues -- Reserves for capital projects.
39          (1) (a) A local district may accumulate retained earnings or fund balances, as
40     appropriate, in any fund.
41          (b) For the general fund only, a local district may only use an accumulated fund
42     balance [may be used only] to:
43          (i) [to] provide working capital to finance expenditures from the beginning of the
44     budget year until general property taxes or other applicable revenues are collected, subject to
45     Subsection (1)(c);
46          (ii) [to] provide a resource to meet emergency expenditures under Section 17B-1-623;
47     and
48          (iii) [to] cover a pending year-end excess of expenditures over revenues from an
49     unavoidable shortfall in revenues, subject to Subsection (1)(d).
50          (c) Subsection (1)(b)(i) [may not be construed to] does not authorize a local district to
51     appropriate a fund balance for budgeting purposes, except as provided in Subsection (4).
52          (d) Subsection (1)(b)(iii) [may not be construed to] does not authorize a local district to
53     appropriate a fund balance to avoid an operating deficit during a budget year except:
54          (i) as provided under Subsection (4); or
55          (ii) for emergency purposes under Section 17B-1-623.
56          (2) (a) [The] Except as provided in Subsection (2)(b), the accumulation of a fund
57     balance in the general fund may not exceed [the greater of]:
58          [(a)] (i) the most recently adopted general fund budget, plus 100% of the current year's
59     property tax[; or].
60          [(b) (i) 25% of the total general fund revenues for a district with an annual general fund
61     budget greater than $100,000; or]
62          [(ii) 50% of the total general fund revenues for a district with an annual general fund
63     budget equal to or less than $100,000.]
64          (b) Notwithstanding Subsection (2)(a), a local district may accumulate in the general
65     fund mineral lease revenue that the local district receives from the United States under the
66     Mineral Lands Leasing Act, 30 U.S.C. Sec. 181 et seq., through a distribution under:
67          (i) Title 35A, Chapter 8, Part 3, Community Impact Alleviation; or
68          (ii) Title 59, Chapter 21, Mineral Lease Funds.
69          (3) If the fund balance at the close of any fiscal year exceeds the amount permitted
70     under Subsection (2), the district shall appropriate the excess [in the manner provided] in
71     accordance with Section 17B-1-613.
72          (4) [Any] A local district may utilize any fund balance in excess of 5% of the total
73     revenues of the general fund [may be utilized] for budget purposes.
74          (5) (a) Within a capital projects fund, the board of trustees may, in any budget year,
75     appropriate from estimated revenue or fund balance to a reserve for capital projects for the
76     purpose of financing future specific capital projects, including new construction, capital
77     repairs, replacement, and maintenance, under a formal long-range capital plan [adopted by] that
78     the board of trustees adopts.
79          (b) A local district may allow a reserve amount under Subsection (5)(a) to accumulate
80     from year to year until the accumulated total is sufficient to permit economical expenditure for
81     the specified purposes.
82          (c) A local district may disburse from a reserve account under Subsection (5)(a) only
83     by a budget appropriation [adopted in the manner provided by] that the local district adopts in
84     accordance with this part.
85          (d) [Expenditures] A local district shall ensure that the expenditures from the [above]
86     appropriation budget accounts [shall] described in this Subsection (5) conform to all
87     requirements of this part relating to execution and control of budgets.
88          Section 3. Section 17B-2a-703 is amended to read:
89          17B-2a-703. Additional mosquito abatement district powers.
90          In addition to the powers conferred on a mosquito abatement district under Section
91     17B-1-103, a mosquito abatement district may:
92          (1) take all necessary and proper steps for the extermination of mosquitos, flies,
93     crickets, grasshoppers, and other insects:
94          (a) within the district; or
95          (b) outside the district, if lands inside the district are benefitted;
96          (2) abate as nuisances all stagnant pools of water and other breeding places for
97     mosquitos, flies, crickets, grasshoppers, or other insects anywhere inside or outside the state
98     from which mosquitos migrate into the district;
99          (3) enter upon territory referred to in Subsections (1) and (2) in order to inspect and
100     examine the territory and to remove from the territory, without notice, stagnant water or other
101     breeding places for mosquitos, flies, crickets, grasshoppers, or other insects;
102          (4) issue bonds as provided in and subject to Chapter 1, Part 11, Local District Bonds,
103     to carry out the purposes of the district;
104          (5) make a contract to indemnify or compensate an owner of land or other property for
105     injury or damage [necessarily caused by] that the exercise of district powers necessarily causes
106     or arising out of the use, taking, or damage of property for a district purpose; and
107          (6) in addition to the accumulated fund balance allowed under Section 17B-1-612,
108     establish a reserve fund, not to exceed the greater of 25% of the district's annual operating
109     budget or $50,000, to pay for extraordinary abatement measures, including a vector-borne
110     public health emergency.
111          Section 4. Section 17B-2a-1109 is amended to read:
112          17B-2a-1109. Counties and municipalities authorized to provide funds to a
113     municipal services district -- Use of funds.
114          (1) A county[,] or, subject to Section 17B-2a-1108, a municipality involved in the
115     establishment and operation of a municipal services district may fund the operation and
116     maintenance of the district through the sharing of sales tax and other revenue for district
117     purposes.
118          (2) A municipal services district may use sales tax or other revenue that the district
119     receives from a county or a municipality under Subsection (1) to fund expenses and activities
120     of a county or municipality that is part of the district.