1     
MUNICIPAL BOUNDARY ADJUSTMENT AMENDMENTS

2     
2019 GENERAL SESSION

3     
STATE OF UTAH

4     
Chief Sponsor: Val K. Potter

5     
Senate Sponsor: ____________

6     

7     LONG TITLE
8     General Description:
9          This bill enacts provisions related to the transfer of a substantially isolated peninsula.
10     Highlighted Provisions:
11          This bill:
12          ▸     defines terms;
13          ▸     creates a process by which two municipalities may adjust the municipalities'
14     common boundary in order to transfer a substantially isolated peninsula from one
15     municipality to the other municipality; 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          17-23-20, as enacted by Laws of Utah 2009, Chapter 350
24          59-2-305.5, as enacted by Laws of Utah 2009, Chapter 350
25     ENACTS:
26          10-2-801, Utah Code Annotated 1953
27          10-2-802, Utah Code Annotated 1953

28          10-2-803, Utah Code Annotated 1953
29          10-2-804, Utah Code Annotated 1953
30          10-2-805, Utah Code Annotated 1953
31     

32     Be it enacted by the Legislature of the state of Utah:
33          Section 1. Section 10-2-801 is enacted to read:
34     
Part 8. Transferring a Substantially Isolated Peninsula

35          10-2-801. Definitions.
36          As used in this part:
37          (1) "Incorporated area" means an area within a municipal boundary.
38          (2) "Petitioner" means a person who:
39          (a) owns title to real property within a substantially isolated peninsula; and
40          (b) files a request to transfer a substantially isolated peninsula under this part.
41          (3) "Receiving municipality" means a municipality to which a substantially isolated
42     peninsula is proposed to be transferred.
43          (4) "Substantially isolated peninsula" means an incorporated area that:
44          (a) is part of a larger incorporated area;
45          (b) extends without interruption from the rest of the incorporated area of which the
46     area at issue is a part;
47          (c) is 500 acres or less; and
48          (d) is surrounded on more than 95% of the incorporated area's boundary distance, but
49     not completely, by a single municipality.
50          (5) "Transferring municipality" means a municipality from which a substantially
51     isolated peninsula is proposed to be transferred.
52          Section 2. Section 10-2-802 is enacted to read:
53          10-2-802. Transfer process and requirements.
54          (1) For the purpose of transferring a substantially isolated peninsula from a transferring
55     municipality to a receiving municipality, the transferring municipality and the receiving
56     municipality may adjust the municipalities' common boundary in accordance with this part.
57          (2) (a) A petitioner proposing to transfer a substantially isolated peninsula from a
58     transferring municipality to a receiving municipality shall file the transfer request as described

59     in Subsection (2)(b) with the transferring municipality's legislative body and the receiving
60     municipality's legislative body.
61          (b) A petitioner shall ensure that a transfer request described in Subsection (2)(a):
62          (i) contains the names, addresses, and signatures of the owners of real property that
63     consists of more than 50% of the total land area within the substantially isolated peninsula
64     proposed for transfer;
65          (ii) gives the reasons for the proposed transfer;
66          (iii) includes a map or plat of the substantially isolated peninsula proposed for transfer;
67     and
68          (iv) designates between one and five persons with authority to act on the petitioners'
69     behalf in any proceedings under this part.
70          (3) (a) No later than 90 days after the day on which a receiving municipality's
71     legislative body receives a transfer request under Subsection (2), the receiving municipality's
72     legislative body shall hold a public hearing to consider the proposed transfer.
73          (b) At least 10 days before the day on which a receiving municipality's legislative body
74     holds a hearing described in Subsection (3)(a), the receiving municipality shall provide notice
75     of the hearing on:
76          (i) the receiving municipality's official website; and
77          (ii) the Utah Public Notice website created in Section 63F-1-701.
78          (c) (i) No later than 90 days after the day on which a receiving municipality holds the
79     public hearing described in Subsection (3)(a), the receiving municipality's legislative body shall
80     adopt a resolution approving or rejecting the transfer.
81          (ii) The receiving municipality's legislative body shall ensure that a resolution
82     approving a transfer under Subsection (3)(c)(i) includes a legal description of the substantially
83     isolated peninsula to be transferred.
84          (4) A transfer of a substantially isolated peninsula under this part may occur regardless
85     of whether the transferring municipality consents to the transfer.
86          Section 3. Section 10-2-803 is enacted to read:
87          10-2-803. Filing of notice and plat -- Recording requirements.
88          (1) No later than 30 days after the day on which a receiving municipality's legislative
89     body adopts a resolution approving the transfer of a substantially isolated peninsula under

90     Section 10-2-802, the receiving municipality's legislative body shall file with the lieutenant
91     governor a notice of an impending boundary action, as defined in Section 67-1a-6.5, that meets
92     the requirements of Subsection 67-1a-6.5(3).
93          (2) Upon the lieutenant governor's issuance of a certificate of boundary adjustment
94     under Section 67-1a-6.5, a receiving municipality's legislative body shall:
95          (a) if the transferring municipality and the receiving municipality are located within the
96     same county, submit to the recorder of the county:
97          (i) the original:
98          (A) notice of an impending boundary action; and
99          (B) certificate of boundary adjustment; and
100          (ii) a certified copy of the resolution that the receiving municipality's legislative body
101     adopts under Subsection 10-2-802(3); or
102          (b) if the transferring municipality and the receiving municipality are located within the
103     boundaries of different counties:
104          (i) submit to the recorder of the county in which the receiving municipality is located:
105          (A) the original notice of an impending boundary action and certificate of boundary
106     adjustment; and
107          (B) a certified copy of the resolution that the receiving municipality's legislative body
108     adopts under Subsection 10-2-802(3); and
109          (ii) submit to the recorder of the county in which the transferring municipality is
110     located a certified copy of:
111          (A) the notice of an impending boundary action;
112          (B) the certificate of boundary adjustment; and
113          (C) the resolution that the receiving municipality's legislative body adopts under
114     Subsection 10-2-802(3).
115          (3) (a) Subject to Subsections (3)(b) and (c), upon the lieutenant governor's issuance of
116     the certificate of boundary adjustment under Section 67-1a-6.5, the substantially isolated
117     peninsula is transferred to the receiving municipality.
118          (b) The effective date of a boundary adjustment for purposes of assessing property
119     within a substantially isolated peninsula that is transferred under this part is governed by
120     Section 59-2-305.5.

121          (c) Until a receiving municipality records documents in accordance with Subsection
122     (2), the receiving municipality may not:
123          (i) levy or collect a property tax on property within the transferred substantially isolated
124     peninsula;
125          (ii) levy or collect an assessment on property within the transferred substantially
126     isolated peninsula; or
127          (iii) charge or collect a fee for service provided to property within the transferred
128     substantially isolated peninsula, unless the receiving municipality was charging and collecting
129     the fee within the substantially isolated peninsula immediately before the transfer.
130          Section 4. Section 10-2-804 is enacted to read:
131          10-2-804. Continuation of tax levy after transfer to pay proportionate share of
132     bonds.
133          (1) Except as provided in Subsection (2), upon transfer, a substantially isolated
134     peninsula is relieved of all other taxes, assessments, and charges that the transferring
135     municipality levies.
136          (2) Notwithstanding Subsection (1), a transferring municipality may continue to levy a
137     tax on the property within a transferred substantially isolated peninsula for the purpose of
138     paying the substantially isolated peninsula's just proportion of a transferring municipality's
139     general obligation or revenue bond until the bonded indebtedness has been satisfied.
140          Section 5. Section 10-2-805 is enacted to read:
141          10-2-805. Transfer does not affect boundaries of most local districts or special
142     service districts.
143          Except as provided in Section 17B-1-416 and Subsection 17B-1-502(2), an adjustment
144     of a boundary shared by municipalities under this part does not affect the boundaries of a local
145     district under Title 17B, Limited Purpose Local Government Entities - Local Districts, or a
146     special service district under Title 17D, Chapter 1, Special Service District Act.
147          Section 6. Section 17-23-20 is amended to read:
148          17-23-20. Final plats of local entity boundary actions -- County surveyor
149     approval of final plat -- Plat requirements.
150          (1) As used in this section:
151          (a) "Approving authority" means the person or body required under applicable statute

152     to submit to the lieutenant governor a notice of an impending boundary action, as defined in
153     Section 67-1a-6.5.
154          (b) (i) "Boundary action" means any action that establishes, modifies, or eliminates the
155     boundary of a local entity, including incorporation or creation, annexation, withdrawal or
156     disconnection, consolidation, division, boundary adjustment, and dissolution.
157          (ii) "Boundary action" does not include the determination of the true location of a
158     county boundary under Section 17-50-105.
159          (c) "Final local entity plat" means a plat that meets the requirements of Subsection (4).
160          (d) "Local entity" has the same meaning as defined in Section 67-1a-6.5.
161          (2) Upon request and in consultation with the county recorder, the county surveyor of
162     each county in which property depicted on a plat is located shall determine whether the plat is a
163     final local entity plat.
164          (3) (a) If a county surveyor determines that a plat meets the requirements of Subsection
165     (4), the county surveyor shall approve the plat as a final local entity plat.
166          (b) The county surveyor shall indicate the approval of a plat as a final local entity plat
167     on the face of the final local entity plat.
168          (4) A plat may not be approved as a final local entity plat unless the plat:
169          (a) contains a graphical illustration depicting:
170          (i) in the case of a proposed creation or incorporation of a local entity, the boundary of
171     the proposed local entity;
172          (ii) in the case of a proposed annexation of an area into an existing local entity, the
173     boundary of the area proposed to be annexed;
174          (iii) in the case of a proposed adjustment of a boundary between local entities, the
175     boundary of the area that the boundary adjustment proposes to move from inside the boundary
176     of one local entity to inside the boundary of another local entity;
177          (iv) in the case of a proposed withdrawal or disconnection of an area from a local
178     entity, the boundary of the area that is proposed to be withdrawn or disconnected;
179          (v) in the case of a proposed consolidation of multiple local entities, the boundary of
180     the proposed consolidated local entity; [and]
181          (vi) in the case of a proposed division of a local entity into multiple local entities, the
182     boundary of each new local entity created by the proposed division; and

183          (vii) in the case of a proposed transfer of a substantially isolated peninsula under Title
184     10, Chapter 2, Part 8, Transferring a Substantially Isolated Peninsula, the boundary of the
185     substantially isolated peninsula;
186          (b) is created on reproducible material that is:
187          (i) permanent in nature; and
188          (ii) the size and type specified by the county recorder;
189          (c) is drawn to a scale so that all data are legible;
190          (d) contains complete and accurate boundary information, including, as appropriate,
191     calls along existing boundary lines, sufficient to enable:
192          (i) the county surveyor to establish the boundary on the ground, in the event of a
193     dispute about the accurate location of the boundary; and
194          (ii) the county recorder to identify, for tax purposes, each tract or parcel included
195     within the boundary;
196          (e) depicts a name for the plat, approved by the county recorder, that is sufficiently
197     unique to distinguish the plat from all other recorded plats in the county;
198          (f) contains:
199          (i) the name of the local entity whose boundary is depicted on the plat;
200          (ii) the name of each county within which any property depicted on the plat is located;
201          (iii) the date that the plat was prepared;
202          (iv) a north arrow and legend;
203          (v) a signature block for:
204          (A) the signatures of:
205          (I) the professional land surveyor who prepared the plat; and
206          (II) the local entity's approving authority; and
207          (B) the approval of the county surveyor; and
208          (vi) a three-inch by three-inch block in the lower right hand corner for the county
209     recorder's use when recording the plat;
210          (g) has been certified and signed by a professional land surveyor licensed under Title
211     58, Chapter 22, Professional Engineers and Professional Land Surveyors Licensing Act; and
212          (h) has been reviewed and signed by the approving authority of the local entity whose
213     boundary is depicted on the plat.

214          (5) The county surveyor may charge and collect a reasonable fee for the costs
215     associated with:
216          (a) the process of determining whether a plat is a final local entity plat; and
217          (b) the approval of a plat as a final local entity plat.
218          Section 7. Section 59-2-305.5 is amended to read:
219          59-2-305.5. Boundary actions not effective for purposes of assessment until
220     required documents are recorded.
221          (1) As used in this section:
222          (a) "Affected area" means:
223          (i) in the case of the creation or incorporation of a local entity, the area within the
224     newly created local entity's boundary;
225          (ii) in the case of an annexation of an area into an existing local entity, the annexed
226     area;
227          (iii) in the case of an adjustment of a boundary between local entities, the area that
228     before the boundary adjustment was in the boundary of one local entity but becomes, because
229     of the boundary adjustment, included within the boundary of another local entity;
230          (iv) in the case of the withdrawal or disconnection of an area from a local entity, the
231     area that is withdrawn or disconnected;
232          (v) in the case of the consolidation of multiple local entities, the area within the
233     boundary of the consolidated local entity;
234          (vi) in the case of the division of a local entity into multiple local entities, the area
235     within the boundary of each new local entity created by the division; [and]
236          (vii) in the case of the dissolution of a local entity, the area that used to be within the
237     former boundary of the dissolved local entity[.]; and
238          (viii) in the case of the transfer of a substantially isolated peninsula under Title 10,
239     Chapter 2, Part 8, Transferring a Substantially Isolated Peninsula, the substantially isolated
240     peninsula.
241          (b) "Applicable certificate" has the same meaning as defined in Section 67-1a-6.5.
242          (c) "Boundary action" has the same meaning as defined in Section 17-23-20.
243          (d) "Effective date" means the effective date, under applicable statute, of the boundary
244     action that is the subject of an applicable certificate.

245          (e) "Local entity" has the same meaning as defined in Section 67-1a-6.5.
246          (f) "Required documents" means the documents relating to a boundary action that are
247     required under applicable statute to be submitted to the county recorder for recording following
248     the lieutenant governor's issuance of an applicable certificate.
249          (2) Notwithstanding the effective date, a boundary action is not effective for purposes
250     of assessing under this part the property located within the affected area until the required
251     documents are recorded in the office of the recorder of each county in which the affected area
252     is located.