1     
LOCAL GOVERNMENT FINANCIAL AMENDMENTS

2     
2019 GENERAL SESSION

3     
STATE OF UTAH

4     
Chief Sponsor: Stephen G. Handy

5     
Senate Sponsor: Todd Weiler

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     and
15          ▸     makes technical and conforming changes.
16     Money Appropriated in this Bill:
17          None
18     Other Special Clauses:
19          None
20     Utah Code Sections Affected:
21     AMENDS:
22          17B-1-113, as renumbered and amended by Laws of Utah 2007, Chapter 329
23          17B-1-612, as renumbered and amended by Laws of Utah 2007, Chapter 329
24          17B-2a-703, as last amended by Laws of Utah 2014, Chapter 377
25          17B-2a-1109, as last amended by Laws of Utah 2018, Chapter 174
26     

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