1     
MUNICIPAL ANNEXATION REVISIONS

2     
2020 SIXTH SPECIAL SESSION

3     
STATE OF UTAH

4     
Chief Sponsor: Calvin R. Musselman

5     
Senate Sponsor: Kirk A. Cullimore

6     

7     LONG TITLE
8     General Description:
9          This bill modifies provisions related to municipal annexation.
10     Highlighted Provisions:
11          This bill:
12          ▸     repeals provisions that allow a municipality to annex certain unincorporated areas
13     without an annexation petition; and
14          ▸     makes technical changes.
15     Money Appropriated in this Bill:
16          None
17     Other Special Clauses:
18          None
19     Utah Code Sections Affected:
20     AMENDS:
21          10-2-402, as last amended by Laws of Utah 2020, Fifth Special Session, Chapter 15
22          10-2-418, as last amended by Laws of Utah 2020, Fifth Special Session, Chapter 15
23          17B-1-503, as last amended by Laws of Utah 2020, Chapter 208
24     

25     Be it enacted by the Legislature of the state of Utah:
26          Section 1. Section 10-2-402 is amended to read:
27          10-2-402. Annexation -- Limitations.

28          (1) (a) A contiguous, unincorporated area that is contiguous to a municipality may be
29     annexed to the municipality as provided in this part.
30          (b) Except as provided in Subsection (1)(c), an unincorporated area may not be annexed
31     to a municipality unless:
32          (i) it is a contiguous area;
33          (ii) it is contiguous to the municipality;
34          (iii) annexation will not leave or create an unincorporated island or unincorporated
35     peninsula:
36          (A) except as provided in Subsection 10-2-418(3) [or (4)]; or
37          (B) unless the county and municipality have otherwise agreed; and
38          (iv) for an area located in a specified county with respect to an annexation that occurs
39     after December 31, 2002, the area is within the proposed annexing municipality's expansion area.
40          (c) A municipality may annex an unincorporated area within a specified county that does
41     not meet the requirements of Subsection (1)(b), leaving or creating an unincorporated island or
42     unincorporated peninsula, if:
43          (i) the area is within the annexing municipality's expansion area;
44          (ii) the specified county in which the area is located and the annexing municipality agree
45     to the annexation;
46          (iii) the area is not within the area of another municipality's annexation policy plan, unless
47     the other municipality agrees to the annexation; and
48          (iv) the annexation is for the purpose of providing municipal services to the area.
49          (2) Except as provided in Section 10-2-418, a municipality may not annex an
50     unincorporated area unless a petition under Section 10-2-403 is filed requesting annexation.
51          (3) (a) An annexation under this part may not include part of a parcel of real property and
52     exclude part of that same parcel unless the owner of that parcel has signed the annexation petition
53     under Section 10-2-403.
54          (b) A piece of real property that has more than one parcel number is considered to be a
55     single parcel for purposes of Subsection (3)(a) if owned by the same owner.
56          (4) A municipality may not annex an unincorporated area in a specified county for the
57     sole purpose of acquiring municipal revenue or to retard the capacity of another municipality to
58     annex the same or a related area unless the municipality has the ability and intent to benefit the

59     annexed area by providing municipal services to the annexed area.
60          (5) (a) As used in this subsection, "expansion area urban development" means:
61          (i) for a specified county, urban development within a city or town's expansion area; or
62          (ii) for a county of the first class, urban development within a city or town's expansion
63     area that:
64          (A) consists of 50 or more acres;
65          (B) requires the county to change the zoning designation of the land on which the urban
66     development is located; and
67          (C) does not include commercial or industrial development that is located within a mining
68     protection area as defined in Section 17-41-101, regardless of whether the commercial or
69     industrial development is for a mining use as defined in Section 17-41-101.
70          (b) A county legislative body may not approve expansion area urban development unless:
71          (i) the county notifies the city or town of the proposed development; and
72          (ii) (A) the city or town consents in writing to the development;
73          (B) within 90 days after the county's notification of the proposed development, the city or
74     town submits to the county a written objection to the county's approval of the proposed
75     development and the county responds in writing to the city or town's objection; or
76          (C) the city or town fails to respond to the county's notification of the proposed
77     development within 90 days after the day on which the county provides the notice.
78          (6) (a) An annexation petition may not be filed under this part proposing the annexation of
79     an area located in a county that is not the county in which the proposed annexing municipality is
80     located unless the legislative body of the county in which the area is located has adopted a
81     resolution approving the proposed annexation.
82          (b) Each county legislative body that declines to adopt a resolution approving a proposed
83     annexation described in Subsection (6)(a) shall provide a written explanation of its reasons for
84     declining to approve the proposed annexation.
85          (7) (a) As used in this Subsection (7), "airport" means an area that the Federal Aviation
86     Administration has, by a record of decision, approved for the construction or operation of a Class
87     I, II, or III commercial service airport, as designated by the Federal Aviation Administration in 14
88     C.F.R. Part 139.
89          (b) A municipality may not annex an unincorporated area within 5,000 feet of the center

90     line of any runway of an airport operated or to be constructed and operated by another
91     municipality unless the legislative body of the other municipality adopts a resolution consenting to
92     the annexation.
93          (c) A municipality that operates or intends to construct and operate an airport and does
94     not adopt a resolution consenting to the annexation of an area described in Subsection (7)(b) may
95     not deny an annexation petition proposing the annexation of that same area to that municipality.
96          (8) (a) As used in this subsection, "project area" means a project area as defined in
97     Section 63H-1-102 that is in a project area plan as defined in Section 63H-1-102 adopted by the
98     Military Installation Development Authority under Title 63H, Chapter 1, Military Installation
99     Development Authority Act.
100          (b) A municipality may not annex an unincorporated area located within a project area
101     without the authority's approval.
102          (c) (i) Except as provided in Subsection (8)(c)(ii), the Military Installation Development
103     Authority may petition for annexation of the following areas to a municipality as if it was the sole
104     private property owner within the area:
105          (A) an area within a project area;
106          (B) an area that is contiguous to a project area and within the boundaries of a military
107     installation;
108          (C) an area owned by the Military Installation Development Authority; and
109          (D) an area that is contiguous to an area owned by the Military Installation Development
110     Authority that the Military Installation Development Authority plans to add to an existing project
111     area.
112          (ii) If any portion of an area annexed under a petition for annexation filed by the Military
113     Installation Development Authority is located in a specified county:
114          (A) the annexation process shall follow the requirements for a specified county; and
115          (B) the provisions of Subsection 10-2-402(6) do not apply.
116          Section 2. Section 10-2-418 is amended to read:
117          10-2-418. Annexation of an island or peninsula without a petition -- Notice --
118     Hearing.
119          (1) As used in Subsection (2)(b)(ii), for purposes of an annexation conducted in
120     accordance with this section of an area located within a county of the first class, "municipal-type

121     services" does not include a service provided by a municipality pursuant to a contract that the
122     municipality has with another political subdivision as "political subdivision" is defined in Section
123     17B-1-102.
124          (2) Notwithstanding Subsection 10-2-402(2), a municipality may annex an unincorporated
125     area under this section without an annexation petition if:
126          (a) for an unincorporated area within the expansion area of more than one municipality,
127     each municipality agrees to the annexation; and
128          (b) (i) (A) the area to be annexed consists of one or more unincorporated islands within
129     or unincorporated peninsulas contiguous to the municipality;
130          (B) the majority of each island or peninsula consists of residential or commercial
131     development;
132          (C) the area proposed for annexation requires the delivery of municipal-type services;
133     and
134          (D) the municipality has provided most or all of the municipal-type services to the area
135     for more than one year;
136          (ii) (A) the area to be annexed consists of one or more unincorporated islands within or
137     unincorporated peninsulas contiguous to the municipality, each of which has fewer than 800
138     residents; and
139          (B) the municipality has provided one or more municipal-type services to the area for at
140     least one year;
141          (iii) the area consists of:
142          (A) an unincorporated island within or an unincorporated peninsula contiguous to the
143     municipality; and
144          (B) for an area outside of the county of the first class proposed for annexation, no more
145     than 50 acres; or
146          (iv) (A) the area to be annexed consists only of one or more unincorporated islands in a
147     county of the second class;
148          (B) the area to be annexed is located in the expansion area of a municipality; and
149          (C) the county legislative body in which the municipality is located provides notice to each
150     property owner within the area to be annexed that the county legislative body will hold a public
151     hearing, no less than 15 days after the day on which the county legislative body provides the

152     notice, and may make a recommendation of annexation to the municipality whose expansion area
153     includes the area to be annexed after the public hearing.
154          [(3) Notwithstanding Subsection 10-2-402(1)(b)(iii), (2), or (6), a municipality may annex
155     an unincorporated area without an annexation petition or the consent of the county in which the
156     area proposed for annexation is located, if:]
157          [(a) the area proposed for annexation:]
158          [(i) is located within a specified county;]
159          [(ii) includes private real property that is located within a county that is not the county in
160     which the proposed annexing municipality is located;]
161          [(iii) includes real property that is:]
162          [(A) owned by a public entity; and]
163          [(B) located in the county in which the proposed annexing municipality is located; and]
164          [(iv) does not include urban development;]
165          [(b) any portion of the private real property described in Subsection (3)(a)(ii) is located
166     within two miles of the proposed annexing municipality's boundary; and]
167          [(c) each owner of private real property within the area proposed for annexation consents
168     in writing to the proposed annexation.]
169          [(4)] (3) Notwithstanding Subsection 10-2-402(1)(b)(iii), a municipality may annex a
170     portion of an unincorporated island or unincorporated peninsula under this section, leaving
171     unincorporated the remainder of the unincorporated island or unincorporated peninsula, if:
172          (a) in adopting the resolution under Subsection [(6)] (5)(a) the municipal legislative body
173     determines that not annexing the entire unincorporated island or unincorporated peninsula is in the
174     municipality's best interest; and
175          (b) for an annexation of one or more unincorporated islands under Subsection (2)(b), the
176     entire island of unincorporated area, of which a portion is being annexed, complies with the
177     requirement of Subsection (2)(b)(ii) relating to the number of residents.
178          [(5)] (4) (a) This subsection applies only to an annexation within a county of the first
179     class.
180          (b) A county of the first class shall agree to an annexation if the majority of private
181     property owners within the area to be annexed give written consent to the annexation, in
182     accordance with Subsection [(5)] (4)(d), to the recorder of the annexing municipality.

183          (c) For purposes of Subsection [(5)] (4)(b), the majority of private property owners is
184     property owners who own:
185          (i) the majority of the total private land area within the area proposed for annexation; and
186          (ii) private real property equal to at least 1/2 the value of private real property within the
187     area proposed for annexation.
188          (d) A property owner consenting to annexation shall indicate the property owner's
189     consent on a form which includes language in substantially the following form:
190          "Notice: If this written consent is used to proceed with an annexation of your property in
191     accordance with Utah Code Section 10-2-418, no public election is required by law to approve the
192     annexation. If you sign this consent and later decide you do not want to support the annexation of
193     your property, you may withdraw your signature by submitting a signed, written withdrawal with
194     the recorder or clerk of [name of annexing municipality]. If you choose to withdraw your
195     signature, you must do so no later than the close of the public hearing on the annexation conducted
196     in accordance with Utah Code Subsection 10-2-418[(5)](4)(d).".
197          (e) A private property owner may withdraw the property owner's signature indicating
198     consent by submitting a signed, written withdrawal with the recorder or clerk no later than the
199     close of the public hearing held in accordance with Subsection [(6)] (5)(b).
200          [(6)] (5) The legislative body of each municipality intending to annex an area under this
201     section shall:
202          (a) adopt a resolution indicating the municipal legislative body's intent to annex the area,
203     describing the area proposed to be annexed; and
204          (b) hold a public hearing on the proposed annexation no earlier than 30 days after the
205     adoption of the resolution described in Subsection [(6)] (5)(a).
206          [(7)] (6) A legislative body described in Subsection [(6)] (5) shall publish notice of a
207     public hearing described in Subsection [(6)] (5)(b):
208          (a) (i) at least once a week for three successive weeks before the public hearing in a
209     newspaper of general circulation within the municipality and the area proposed for annexation;
210          (ii) if there is no newspaper of general circulation in the combined area described in
211     Subsection [(7)] (6)(a)(i), at least three weeks before the day of the public hearing, by posting one
212     notice, and at least one additional notice per 2,000 population in the combined area, in places
213     within the combined area that are most likely to give notice to the residents within, and the owners

214     of real property located within, the combined area; or
215          (iii) at least three weeks before the day of the public hearing, by mailing notice to each
216     residence within, and each owner of real property located within, the combined area described in
217     Subsection [(7)] (6)(a)(i);
218          (b) on the Utah Public Notice Website created in Section 63F-1-701, for three weeks
219     before the day of the public hearing;
220          (c) in accordance with Section 45-1-101, for three weeks before the day of the public
221     hearing;
222          (d) by sending written notice to:
223          (i) the board of each local district and special service district whose boundaries contain
224     some or all of the area proposed for annexation; and
225          (ii) the legislative body of the county in which the area proposed for annexation is located;
226     and
227          (e) if the municipality has a website, on the municipality's website for three weeks before
228     the day of the public hearing.
229          [(8)] (7) The legislative body of the annexing municipality shall ensure that:
230          (a) each notice described in Subsection [(7)] (6):
231          (i) states that the municipal legislative body has adopted a resolution indicating the
232     municipality's intent to annex the area proposed for annexation;
233          (ii) states the date, time, and place of the public hearing described in Subsection [(6)]
234     (5)(b);
235          (iii) describes the area proposed for annexation; and
236          (iv) except for an annexation that meets the requirements of Subsection [(9)] (8)(b) or
237     (c), states in conspicuous and plain terms that the municipal legislative body will annex the area
238     unless, at or before the public hearing described in Subsection [(6)] (5)(b), written protests to the
239     annexation are filed by the owners of private real property that:
240          (A) is located within the area proposed for annexation;
241          (B) covers a majority of the total private land area within the entire area proposed for
242     annexation; and
243          (C) is equal in value to at least 1/2 the value of all private real property within the entire
244     area proposed for annexation; and

245          (b) the first publication of the notice described in Subsection [(7)] (6)(a) occurs within 14
246     days after the day on which the municipal legislative body adopts a resolution under Subsection
247     [(6)] (5)(a).
248          [(9)] (8) (a) Except as provided in Subsections [(9)] (8)(b)(i) and [(9)] (8)(c)(i), upon
249     conclusion of the public hearing described in Subsection [(6)] (5)(b), the municipal legislative body
250     may adopt an ordinance approving the annexation of the area proposed for annexation under this
251     section unless, at or before the hearing, written protests to the annexation have been filed with the
252     recorder or clerk of the municipality by the owners of private real property that:
253          (i) is located within the area proposed for annexation;
254          (ii) covers a majority of the total private land area within the entire area proposed for
255     annexation; and
256          (iii) is equal in value to at least 1/2 the value of all private real property within the entire
257     area proposed for annexation.
258          (b) (i) Notwithstanding Subsection [(9)] (8)(a), upon conclusion of the public hearing
259     described in Subsection [(6)] (5)(b), a municipality may adopt an ordinance approving the
260     annexation of the area proposed for annexation under this section without allowing or considering
261     protests under Subsection [(9)] (8)(a) if[: (A)] the owners of at least 75% of the total private land
262     area within the entire area proposed for annexation, representing at least 75% of the value of the
263     private real property within the entire area proposed for annexation, have consented in writing to
264     the annexation[; or].
265          [(B) the annexation meets the requirements of Subsection (3).]
266          (ii) Upon the effective date under Section 10-2-425 of an annexation approved by an
267     ordinance adopted under Subsection [(9)] (8)(b)(i), the area annexed is conclusively presumed to
268     be validly annexed.
269          (c) (i) Notwithstanding Subsection [(9)] (8)(a), upon conclusion of the public hearing
270     described in Subsection [(6)] (5)(b), a municipality may adopt an ordinance approving the
271     annexation of an area that the county legislative body proposes for annexation under this section
272     without allowing or considering protests under Subsection [(9)] (8)(a) if the county legislative body
273     has formally recommended annexation to the annexing municipality and has made a formal finding
274     that:
275          (A) the area to be annexed can be more efficiently served by the municipality than by the

276     county;
277          (B) the area to be annexed is not likely to be naturally annexed by the municipality in the
278     future as the result of urban development;
279          (C) annexation of the area is likely to facilitate the consolidation of overlapping functions
280     of local government; and
281          (D) annexation of the area is likely to result in an equitable distribution of community
282     resources and obligations.
283          (ii) The county legislative body may base the finding required in Subsection [(9)]
284     (8)(c)(i)(B) on:
285          (A) existing development in the area;
286          (B) natural or other conditions that may limit the future development of the area; or
287          (C) other factors that the county legislative body considers relevant.
288          (iii) A county legislative body may make the recommendation for annexation required in
289     Subsection [(9)] (8)(c)(i) for only a portion of an unincorporated island if, as a result of
290     information provided at the public hearing, the county legislative body makes a formal finding that
291     it would be equitable to leave a portion of the island unincorporated.
292          (iv) If a county legislative body has made a recommendation of annexation under
293     Subsection [(9)] (8)(c)(i):
294          (A) the relevant municipality is not required to proceed with the recommended
295     annexation; and
296          (B) if the relevant municipality proceeds with annexation, the municipality shall annex the
297     entire area that the county legislative body recommended for annexation.
298          (v) Upon the effective date under Section 10-2-425 of an annexation approved by an
299     ordinance adopted under Subsection [(9)] (8)(c)(i), the area annexed is conclusively presumed to
300     be validly annexed.
301          [(10)] (9) (a) Except as provided in Subsections [(9)] (8)(b)(i) and [(9)] (8)(c)(i), if
302     protests are timely filed under Subsection [(9)] (8)(a), the municipal legislative body may not adopt
303     an ordinance approving the annexation of the area proposed for annexation, and the annexation
304     proceedings under this section shall be considered terminated.
305          (b) Subsection [(10)] (9)(a) does not prohibit the municipal legislative body from excluding
306     from a proposed annexation under Subsection (2)(b) the property within an unincorporated island

307     regarding which protests have been filed and proceeding under Subsection [(4)] (3) to annex
308     some or all of the remaining portion of the unincorporated island.
309          Section 3. Section 17B-1-503 is amended to read:
310          17B-1-503. Withdrawal or boundary adjustment with municipal approval.
311          (1) A municipality and a local district whose boundaries adjoin or overlap may adjust the
312     boundary of the local district to include more or less of the municipality, including the expansion
313     area identified in the annexation policy plan adopted by the municipality under Section 10-2-401.5,
314     in the local district by following the same procedural requirements as set forth in Section
315     17B-1-417 for boundary adjustments between adjoining local districts.
316          (2) (a) Notwithstanding any other provision of this title, a municipality annexing all or part
317     of an unincorporated island or peninsula under Title 10, Chapter 2, Classification, Boundaries,
318     Consolidation, and Dissolution of Municipalities, that overlaps a municipal services district
319     organized under Chapter 2a, Part 11, Municipal Services District Act, may petition to withdraw
320     the area from the municipal services district in accordance with this Subsection (2).
321          (b) For a valid withdrawal described in Subsection (2)(a):
322          (i) the annexation petition under Section 10-2-403 or a separate consent, signed by
323     owners of at least 60% of the total private land area, shall state that the signers request the area
324     to be withdrawn from the municipal services district; and
325          (ii) the legislative body of the municipality shall adopt a resolution, which may be the
326     resolution adopted in accordance with Subsection 10-2-418[(6)](5)(a), stating the municipal
327     legislative body's intent to withdraw the area from the municipal services district.
328          (c) The board of trustees of the municipal services district shall consider the
329     municipality's petition to withdraw the area from the municipal services district within 90 days
330     after the day on which the municipal services district receives the petition.
331          (d) The board of trustees of the municipal services district:
332          (i) may hold a public hearing in accordance with the notice and public hearing provisions
333     of Section 17B-1-508;
334          (ii) shall consider information that includes any factual data presented by the municipality
335     and any owner of private real property who signed a petition or other form of consent described in
336     Subsection (2)(b)(i); and
337          (iii) identify in writing the information upon which the board of trustees relies in approving

338     or rejecting the withdrawal.
339          (e) The board of trustees of the municipal services district shall approve the withdrawal,
340     effective upon the annexation of the area into the municipality or, if the municipality has already
341     annexed the area, as soon as possible in the reasonable course of events, if the board of trustees
342     makes a finding that:
343          (i) (A) the loss of revenue to the municipal services district due to a withdrawal of the
344     area will be offset by savings associated with no longer providing municipal-type services to the
345     area; or
346          (B) if the loss of revenue will not be offset by savings resulting from no longer providing
347     municipal-type services to the area, the municipality agreeing to terms and conditions, which may
348     include terms and conditions described in Subsection 17B-1-510(5), can mitigate or eliminate the
349     loss of revenue;
350          (ii) the annexation petition under Section 10-2-403, or a separate petition meeting the
351     same signature requirements, states that the signers request the area to be withdrawn from the
352     municipal services district; or
353          (iii) the following have consented in writing to the withdrawal:
354          (A) owners of more than 60% of the total private land area; or
355          (B) owners of private land equal in assessed value to more than 60% of the assessed
356     value of all private real property within the area proposed for withdrawal have consented in
357     writing to the withdrawal.
358          (f) If the board of trustees of the municipal services district does not make any of the
359     findings described in Subsection (2)(e), the board of trustees may approve or reject the
360     withdrawal based upon information upon which the board of trustees relies and that the board of
361     trustees identifies in writing.
362          (g) (i) If a municipality annexes an island or a part of an island before May 14, 2019, the
363     legislative body of the municipality may initiate the withdrawal of the area from the municipal
364     services district by adopting a resolution that:
365          (A) requests that the area be withdrawn from the municipal services district; and
366          (B) a final local entity plat accompanies, identifying the area proposed to be withdrawn
367     from the municipal services district.
368          (ii) (A) Upon receipt of the resolution and except as provided in Subsection (2)(g)(ii)(B),

369     the board of trustees of the municipal services district shall approve the withdrawal.
370          (B) The board of trustees of the municipal services district may reject the withdrawal if
371     the rejection is based upon a good faith finding that lost revenues due to the withdrawal will
372     exceed expected cost savings resulting from no longer serving the area.
373          (h) (i) Based upon a finding described in Subsection (e) or (f):
374          (A) the board of trustees of the municipal services district shall adopt a resolution
375     approving the withdrawal; and
376          (B) the chair of the board shall sign a notice of impending boundary action, as defined in
377     Section 67-1a-6.5, that meets the requirements of Subsection 67-1a-6.5(3).
378          (ii) The annexing municipality shall deliver the following to the lieutenant governor:
379          (A) the resolution and notice of impending boundary action described in Subsection
380     (2)(g)(i);
381          (B) a copy of an approved final local entity plat as defined in Section 67-1a-6.5; and
382          (C) any other documentation required by law.
383          (i) (i) Once the lieutenant governor has issued an applicable certificate as defined in
384     Section 67-1a-6.5, the municipality shall deliver the certificate, the resolution and notice of
385     impending boundary action described in Subsection (2)(h)(i), the final local entity plat as defined in
386     Section 67-1a-6.5, and any other document required by law, to the recorder of the county in which
387     the area is located.
388          (ii) After the municipality makes the delivery described in Subsection (2)(i)(i), the area,
389     for all purposes, is no longer part of the municipal services district.
390          (j) The annexing municipality and the municipal services district may enter into an
391     interlocal agreement under Title 11, Chapter 13, Interlocal Cooperation Act, stating:
392          (i) the municipality's and the district's duties and responsibilities in conducting a
393     withdrawal under this Subsection (2); and
394          (ii) any other matter respecting an unincorporated island that the municipality surrounds
395     on all sides.
396          (3) After a boundary adjustment under Subsection (1) or a withdrawal under Subsection
397     (2) is complete:
398          (a) the local district shall, without interruption, provide the same service to any area added
399     to the local district as provided to other areas within the local district; and

400          (b) the municipality shall, without interruption, provide the same service that the local
401     district previously provided to any area withdrawn from the local district.
402          (4) No area within a municipality may be added to the area of a local district under this
403     section if the area is part of a local district that provides the same wholesale or retail service as
404     the first local district.