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7 LONG TITLE
8 General Description:
9 This bill enacts provisions related to competitive activities provided by a city or county.
10 Highlighted Provisions:
11 This bill:
12 ▸ defines terms;
13 ▸ requires certain cities and counties to establish an inventory to classify competitive
14 activities; and
15 ▸ requires certain cities and counties, before authorizing specified competitive
16 activities, to:
17 • conduct a market impact study; and
18 • hold a public hearing.
19 Money Appropriated in this Bill:
20 None
21 Other Special Clauses:
22 None
23 Utah Code Sections Affected:
24 ENACTS:
25 10-1-120, Utah Code Annotated 1953
26 17-50-109, Utah Code Annotated 1953
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28 Be it enacted by the Legislature of the state of Utah:
29 Section 1. Section 10-1-120 is enacted to read:
30 10-1-120. Competitive activities -- Requirements.
31 (1) As used in this section:
32 (a) "Applicable city" means a city of the first or second class.
33 (b) (i) "City entity" means:
34 (A) an entity created through an interlocal agreement under Title 11, Chapter 13,
35 Interlocal Cooperation Act, in which the city participates; or
36 (B) a special service district that the city establishes under Title 17D, Chapter 1,
37 Special Service District Act.
38 (ii) "City entity" does not include a local district established under Title 17B, Limited
39 Purpose Local Government Entities - Local Districts.
40 (c) (i) "Competitive activity" means a service that a city or city entity provides that is
41 substantially similar to a service that a private entity currently provides within the county in
42 which the city is located.
43 (ii) "Competitive activity" does not include the provision of:
44 (A) law enforcement services; or
45 (B) fire protection services.
46 (d) "Private entity" means an entity that is not an entity of the federal government, state
47 government, or a political subdivision of the state.
48 (e) "Specified competitive activity" means a competitive activity that a city:
49 (i) provides for recreational or entertainment purposes, including:
50 (A) a recreation center or facility; or
51 (B) a golf course; and
52 (ii) (A) funds in an amount that is 5% or more of the total revenue of the city general
53 fund in the preceding fiscal year; or
54 (B) makes a commitment to fund, over a period of more than one year, in an amount
55 that is 3% or more of the total revenue of the city general fund in the fiscal year preceding the
56 fiscal year in which the city makes the commitment.
57 (2) (a) The governing body of an applicable city shall establish an inventory of each
58 service that the city or a city entity provides to:
59 (i) classify whether the service is a competitive activity; and
60 (ii) identify efforts that have been made to privatize aspects of the service.
61 (b) The governing body of an applicable city shall:
62 (i) update the inventory described in Subsection (2)(a) at least once in every two-year
63 period; and
64 (ii) publish the inventory described in Subsection (2)(a) on the applicable city's
65 website, if the applicable city has a website.
66 (3) (a) Before an applicable city authorizes a specified competitive activity on or after
67 May 5, 2021, the governing body of the applicable city shall:
68 (i) conduct a market impact study that evaluates:
69 (A) the extent to which the specified competitive activity will impact the local
70 economy;
71 (B) the impact that the specified competitive activity will have on the applicable city's
72 budget and tax rate; and
73 (C) the feasibility of private entities located in the county in which the applicable city
74 is located, or any county adjacent to the county in which the applicable city is located, to
75 provide the specified competitive activity within the applicable city; and
76 (ii) hold a public hearing in accordance with Subsection (3)(b) to:
77 (A) present the results of the study described in Subsection (3)(a)(i); and
78 (B) explain why the applicable city seeks to provide the specified competitive activity.
79 (b) The governing body of an applicable city shall:
80 (i) ensure that the public hearing described in Subsection (3)(a)(ii) is open to the
81 public; and
82 (ii) publish notice of the public hearing described in Subsection (3)(a)(ii) for at least
83 two weeks before the day on which the public hearing is held on:
84 (A) the applicable city's website, if the applicable city has a website; and
85 (B) the Utah Public Notice Website created in Section 63F-1-701.
86 Section 2. Section 17-50-109 is enacted to read:
87 17-50-109. Competitive activities -- Requirements.
88 (1) As used in this section:
89 (a) (i) "Competitive activity" means a service that a county or county entity provides
90 that is substantially similar to a service that a private entity currently provides within the
91 county.
92 (ii) "Competitive activity" does not include the provision of:
93 (A) law enforcement services; or
94 (B) fire protection services.
95 (b) (i) "County entity" means:
96 (A) an entity created through an interlocal agreement under Title 11, Chapter 13,
97 Interlocal Cooperation Act, in which the county participates; or
98 (B) a special service district that the county establishes under Title 17D, Chapter 1,
99 Special Service District Act.
100 (ii) "County entity" does not include a local district established under Title 17B,
101 Limited Purpose Local Government Entities - Local Districts.
102 (c) "Private entity" means an entity that is not an entity of the federal government, state
103 government, or a political subdivision of the state.
104 (d) "Specified competitive activity" means a competitive activity that a county:
105 (i) provides for recreational or entertainment purposes, including:
106 (A) a recreation center or facility; or
107 (B) a golf course; and
108 (ii) (A) funds in an amount that is 5% or more of the total revenue of the county
109 general fund for the preceding fiscal year; or
110 (B) makes a commitment to fund, over a period of more than one year, in an amount
111 that is 3% or more of the total revenue of the county general fund for the fiscal year preceding
112 the fiscal year in which the county makes the commitment.
113 (2) (a) This Subsection (2) applies to a county of the first or second class.
114 (b) The governing body of a county shall establish an inventory of each service that the
115 county or a county entity provides to:
116 (i) classify whether the service is a competitive activity; and
117 (ii) identify efforts that have been made to privatize aspects of the service.
118 (c) The governing body of a county shall:
119 (i) update the inventory described in Subsection (2)(b) at least once in every two-year
120 period; and
121 (ii) publish the inventory described in Subsection (2)(b) on the county's website, if the
122 county has a website.
123 (3) (a) This Subsection (3) applies to a county of the first, second, third, or fourth class.
124 (b) Before a county authorizes a specified competitive activity on or after May 5, 2021,
125 the governing body of the county shall:
126 (i) conduct a market impact study that evaluates:
127 (A) the extent to which the specified competitive activity will impact the local
128 economy;
129 (B) the impact of the specified competitive activity on the county's budget and tax rate;
130 and
131 (C) the feasibility of private entities located in the county, or any adjacent county, to
132 provide the specified competitive activity within the county; and
133 (ii) hold a public hearing in accordance with Subsection (3)(c) to:
134 (A) present the results of the study described in Subsection (3)(b)(i); and
135 (B) explain why the county seeks to provide the specified competitive activity.
136 (c) The governing body of a county shall:
137 (i) ensure that the public hearing described in Subsection (3)(b)(ii) is open to the
138 public; and
139 (ii) publish notice of the public hearing described in Subsection (3)(b)(ii) for at least
140 two weeks before the day on which the public hearing is held on:
141 (A) the county's website, if the county has a website; and
142 (B) the Utah Public Notice Website created in Section 63F-1-701.