HB 429 — Special Districts Amendments

- 7 - HB0429 compared with HB0429S02 (c) Within 10 days after adopting a resolution under Subsection (3)(a), the [municipal ]legislative] legislative body shall submit to the board of trustees of the [ first responder district or municipal services ] qualified district written notice of the adoption of the resolution, accompanied by a copy of the resolution.

(5)(5)(a) (a) A municipality or county shall be withdrawn from a first responder district if:

and (ii)(ii)(A) (A) [whether before or after the effective date of this section, the municipality] the legislative body of the municipality or county and the first responder district agree in writing to the withdrawal;

and (b)(b)(i) (i) the feasibility study concludes that the withdrawal is functionally and financially feasible for the [municipality] eligible area and the first responder district;

or (ii)(ii)(A) (A) the feasibility study concludes that the withdrawal would be functionally and- financially7 feasible- forH.B. the [municipality] eligible area and the first responder district if conditions specified in the feasibility study are met;

and429 -Enrolled 8Copy -and HB0429financially comparedfeasible withfor HB0429S02 (B) the legislative body of the [municipality] eligible area adoptsand a resolution irrevocably committing the [municipality]first eligibleresponder areadistrict toif satisfying the conditions specified in the feasibility study,study ifare themet; withdrawal is approved by the [municipality's ]voters.

and (B) the legislative body of the [municipality] eligible area adopts a resolution irrevocably committing the [municipality] eligible area to satisfying the conditions specified in the feasibility study, if the withdrawal is approved by the [municipality's ]voters.

(8)(8)(a) (a) Within 10 days after the canvass of an election at which a withdrawal under this section is submitted to voters, the [municipal ]legislative body shall send written notice to the board of the [ first responder district or municipal services ] qualified district from which the [municipality] eligible area is proposed to withdraw.

(9) The effective date of a withdrawal under this section is governed by [Subsection 17B-1-512(2)17B-1-512(2)(a)] (a)] Section 17B-1-512.

Section 2.

Section 2 is enacted to read:

17B-1-505.1.

Withdrawal of a county from certain districts providing law enforcement services.

(1) As used in this section:

(a) "Eligible county" means a county of the first class, as classified under Section 17-60-104.

(b) "Law enforcement district" means a special district, other than a municipal services district, that provides law enforcement service.

(2) This section applies only to the withdrawal of an unincorporated area:

(a) in an eligible county;

and (b) that is located entirely within the boundary of a law enforcement service area that was created without an election, as provided in Subsection 17B-1-214(3).

(3) In addition to the procedures described in Section 17B-1-504, the legislative body of an eligible county may withdraw an unincorporated area from a law enforcement district by:

(a) adopting an initial resolution in a public meeting that:

- 9 - HB0429 compared with HB0429S02 (i) initiates the withdrawal process described in this section;

and (ii) describes:

(A) the unincorporated area or areas proposed for withdrawal;

and (B) the rationale supporting withdrawal;

(b) providing notice of the county's proposed withdrawal:

(i) to the law enforcement district's board of trustees;

and (ii) to the public as described in Subsection (4);

(c) conducting a public hearing on the proposed withdrawal;

(d) adopting a final resolution that makes a finding that withdrawal is in the public interest;

and (e) notifying the board of trustees of the district of the final resolution.

(4) (a) An eligible county that initiates withdrawal from a law enforcement district shall provide notice of a public hearing on the proposed withdrawal:

(i) as a class A notice under Section 63G-30-102;

and (ii) for at least two weeks before the day of the public hearing.

(b) The notice described in Subsection (4)(a) shall:

(i) describe the unincorporated area or areas proposed for withdrawal from the law enforcement district;

(ii) include the date, time, and place of the public hearing described in Subsection (5);

(iii) include a link to the initial resolution and a draft final resolution;

and (iv) describe how a person may:

(A) submit written comment to the eligible county before or at the public hearing;

and (B) make public comment at the public hearing.

(c) A description of an unincorporated area proposed for withdrawal, as required by Subsection (4)(b) (i), may include maps, legal descriptions, or another method of description approved by the eligible county's county recorder.

(5) The eligible county's legislative body shall hold a public hearing on the proposed withdrawal and:

(a) present a draft final resolution;

(b) receive public comment;

and (c) address public comment, if any.

(6) The eligible county's legislative body may adopt a final resolution to withdraw the unincorporated area from the law enforcement district:

- 10 - HB0429 compared with HB0429S02 (a) if the legislative body finds that withdrawal is in the public's interest;

and (b) in a public meeting held after the public hearing described in Subsection (5).

(7) Upon adopting a final resolution, as described in Subsection (6), the eligible county shall notify the law enforcement district's board of trustees.

(8) (a) The withdrawal of an unincorporated area from a law enforcement district as described in this section does not require the approval of the district's board of trustees.

(b) The effective date of a withdrawal under this section is governed by Subsection 17B-1-512(2)(a).

17B-1-505.5.17B-1-505.5 .

or] [(ii)- law8 enforcement- service]Enrolled theCopy sameH.B. as that term is defined in Section 17B-1-505.

429 [(ii) law enforcement service] the same as that term is defined in Section 17B-1-505.

- 11 - HB0429 compared with HB0429S02 (a) the legislative body of a [municipality] withdrawing entity has adopted a resolution under Subsection 17B-1-505(3)(a) to initiate the process of the [municipality's ]withdrawal] withdrawal from a first responder district;

(3)(3)(a) (a) As provided in this Subsection (3), the withdrawing [municipality] entity and first responder district shall choose and engage a feasibility consultant to conduct a feasibility study.

(c)(c)(i) (i) If the withdrawing [municipality] entity and first responder district cannot agree on and have not engaged a feasibility consultant under Subsection (3)(b) within 45 days after the legislative body of the withdrawing [municipality] entity submits written notice to the first responder district under Subsection 17B-1-505(3)(c), the withdrawing [municipality] entity and first responder district shall, as provided in this Subsection (3)(c), choose a feasibility consultant from a list of at least eight feasibility consultants provided by the Utah Association of Certified Public Accountants.

(ii) A list of feasibility consultants under Subsection (3)(c)(i) may not include a feasibility consultant that has had a contract to provide services to the withdrawing [municipality] entity or first responder district at any time during the two-year- period9 immediately- precedingH.B. the date the list is provided under Subsection (3)(c)(i).

(iii)429 (A)Enrolled BeginningCopy withtwo-year theperiod firstimmediately responderpreceding district, the firstdate responder district and withdrawing [municipality] entity shall alternately eliminate one feasibility consultant each from the list ofis feasibilityprovided consultantsunder untilSubsection one(3)(c)(i). feasibility consultant remains.

(iii)(A) Beginning with the first responder district, the first responder district and withdrawing [municipality] entity shall alternately eliminate one feasibility consultant each from the list of feasibility consultants until one feasibility consultant remains.

- 12 - HB0429 compared with HB0429S02 (C) After the first elimination of a feasibility consultant from the list, the withdrawing [municipality] entity and first responder district shall each, within three days after receiving the written notification of the preceding elimination, notify the other in writing of the elimination of a feasibility consultant from the list.

and (ii)- the10 estimated- costEnrolled ifCopy theH.B. withdrawing [municipality] entity provides service;

429 (ii) the estimated cost if the withdrawing [municipality] entity provides service;

- 13 - HB0429 compared with HB0429S02 (h) the physical and other assets that will be required by the withdrawing [municipality] entity to provide, without interruption or diminution of service, the same service that is being provided by the first responder district;

and (ii) any first responder district assets that have been purchased with the proceeds of bonds issued by the first responder district that the first responder district will retain and any of those assets that will be transferred to the withdrawing [municipality][ municipality] entity;

(l)- the11 number- andH.B. classification of first responder district employees who will no longer be required to serve the remaining portions of the first responder district after the withdrawing [municipality] entity withdraws from the first responder district, including the dollar amount of the wages, salaries, and benefits attributable to the employees and the estimated cost associated with termination of the employees if the withdrawing [municipality] entity does not employ the employees;

429 Enrolled Copy (l) the number and classification of first responder district employees who will no longer be required to serve the remaining portions of the first responder district after the withdrawing [municipality] entity withdraws from the first responder district, including the dollar amount of the wages, salaries, and benefits attributable to the employees and the estimated cost associated with termination of the employees if the withdrawing [municipality] entity does not employ the employees;

(6)(6)(a) (a) For purposes of Subsections (5)(d) and (e):

- 14 - HB0429 compared with HB0429S02 (i) the feasibility consultant shall assume a level and quality of service to be provided in the future to the withdrawing [municipality] entity that fairly and reasonably approximates the level and quality of service that the first responder district provides to the withdrawing [municipality] entity at the time of the feasibility study;

(7) A feasibility consultant may retain an architect, engineer, or other professional, as the feasibility consultant considers prudent and as provided in the agreement with the withdrawing [municipality] entity and first responder district, to assist the feasibility consultant- to12 conduct- aEnrolled feasibilityCopy study.H.B.

429 consultant to conduct a feasibility study.

(a) complete the feasibility study within a time established by the withdrawing [municipality][ municipality] entity and first responder district;

- 15 - HB0429 compared with HB0429S02 (a) contain a recommendation concerning whether a withdrawing [municipality's] entity's withdrawal from a first responder district is functionally and financially feasible for both the first responder district and the withdrawing [municipality] entity;

(i) first responder district assets and liabilities to be allocated to the withdrawing [municipality][ municipality] entity;

and (ii)(ii)(A) (A) first responder district employees to become employees of the withdrawing [municipality][ municipality] entity;

(11)(11)(a) (a) Upon completion of the feasibility study and preparation of a written report, the feasibility consultant shall deliver a copy of the report to the withdrawing [municipality][ municipality] entity and first responder district.

(b)(b)(i) (i) A withdrawing [municipality] entity or first responder district that disagrees with any aspect of a feasibility study report may, within 20 business days after receiving a copy of the report under Subsection (11)(a), submit to the feasibility consultant a written objection detailing the disagreement.

(ii)(ii)(A) (A) A withdrawing [municipality] entity that submits a written objection under Subsection (11)(b)(i) shall simultaneously deliver a copy of the objection to the first- responder13 district.- H.B.

429 Enrolled Copy first responder district.

- 16 - HB0429 compared with HB0429S02 (iii) A withdrawing [municipality] entity or first responder district may, within 10 business days after receiving an objection under Subsection (11)(b)(ii), submit to the feasibility consultant a written response to the objection.

(iv)(iv)(A) (A) A withdrawing [municipality] entity that submits a response under Subsection (11)(b)(iii) shall simultaneously deliver a copy of the response to the first responder district.

(B) A first responder district that submits a response under Subsection (11)(b)(iii) shall simultaneously deliver a copy of the response to the withdrawing [municipality][ municipality] entity.

and (b) if the withdrawing [municipality] entity has a website, post a copy of the report on the [municipality's[ municipality's ] entity's website.

(14)(14)(a) (a) Following the expiration of the deadline under Subsection (11)(b)(i) for submitting an objection, or, if an objection is submitted under Subsection (11)(b)(i), following the withdrawing [municipality's] entity's receipt of the modified feasibility study report or written explanation under - 1714 - HB0429Enrolled comparedCopy withH.B. HB0429S02 Subsection (11)(b)(v), the legislative body of the withdrawing [municipality] entity shall, at the legislative body's next regular meeting, schedule at least one public hearing to be held:

429 following the withdrawing [municipality's] entity's receipt of the modified feasibility study report or written explanation under Subsection (11)(b)(v), the legislative body of the withdrawing [municipality] entity shall, at the legislative body's next regular meeting, schedule at least one public hearing to be held:

(b) At a public hearing under Subsection (14)(a), the legislative body of the withdrawing [municipality][ municipality] entity shall:

(15)(15)(a) (a) The clerk or recorder of the withdrawing [municipality] entity shall publish notice of a hearing under Subsection (14) for the withdrawing [municipality] entity, as a class A notice under Section 63G-30-102, for three consecutive weeks immediately before the public hearing.

and (ii) that a copy of the feasibility study report may be obtained, free of charge, at the office of the withdrawing [municipality] entity or on the withdrawing [municipality's][ municipality's] entity's website.

(16) Unless the withdrawing [municipality] entity and first responder district agree otherwise, conditions that a feasibility study report indicates are necessary to be met for a withdrawal to be functionally and financially feasible for the withdrawing [municipality][ municipality] entity and first responder district are binding on the withdrawing [municipality][ municipality] entity and first responder district if the withdrawal occurs.

Section 517B-1-505.7 is enacted to read:

17B-1-505.7.17B-1-505.7 .

(1)- As15 used- inH.B. this section:

-429 18Enrolled -Copy HB0429(1) comparedAs withused HB0429S02in (a)this "Feasibilitysection: consultant" means a person with expertise in:

(a) "Feasibility consultant" means a person with expertise in:

(c)(c)(i) (i) "Garbage disposal district" means a special or local district that was created to provide garbage collection and disposal to counties or municipalities.

(d)(d)(i) (i) "Incur a financial obligation" means an action that increases the annual budget of a district beyond what would be expected after taking population growth or inflation into account.

(e) "Resolution to withdraw" means a resolution adopted by the legislative body of a {municipality or county } withdrawing entity describing the area within the {county or municipality } withdrawing entity that shall be removed from the boundaries of a garbage disposal district.

(i) {the county } a county of the first class, as classified under Section 17-60-104, that initiates the process to withdraw the unincorporated areas of the county from the garbage disposal district as described in this section;

or (ii) {the municipality } a municipality located in a county of the first class, as classified under Section 17-60-104, that initiates the process to withdraw the municipality from the garbage disposal district as described in this section.

-(2)(a) 19 - HB0429 compared with HB0429S02 (2) (a) In addition to procedures described in Section 17B-1-504, the process to withdraw an area from a garbage disposal district may be initiated by a county or municipal legislative- body16 adopting- aEnrolled noticeCopy ofH.B. intent to withdraw as described in this section.

429 legislative body adopting a notice of intent to withdraw as described in this section.

(4)(4)(a) (a) The withdrawing entity shall select a feasibility consultant in accordance with applicable county or municipal procurement procedures.

and - 20 - HB0429 compared with HB0429S02 (ii) attend any public hearing the legislative body holds as described in Subsection (6).

(5)(5)(a) (a) The feasibility study shall consider:

(i) the physical and other assets that will be required by the withdrawing entity to provide,- without17 interruption- orH.B. diminution of service, the same service that is being provided by the garbage disposal district;

429 Enrolled Copy provide, without interruption or diminution of service, the same service that is being provided by the garbage disposal district;

- 21 - HB0429 compared with HB0429S02 (ii) include any conditions the feasibility consultant determines need to be satisfied in order to make the withdrawal functionally and financially feasible, including the garbage- disposal18 district- assetsEnrolled andCopy liabilitiesH.B. to be allocated to the withdrawing entity;

429 garbage disposal district assets and liabilities to be allocated to the withdrawing entity;

(6)(6)(a) (a) If upon receipt of the written report described in Subsection (5)(b), the withdrawing entity determines that the results of the feasibility study are favorable and any identified conditions are acceptable to the withdrawing entity, the legislative body shall hold at least one public hearing:

(7)(7)(a) (a) The county or municipality shall publish notice of the public hearing required under Subsection (6), and any additional public hearing in which the issue of withdrawal or the feasibility study results are discussed, for the county or municipality:

and - 22 - HB0429 compared with HB0429S02 (ii) for at least two weeks before the day of the public hearing.

(ii)- include19 the- summaryH.B. described in Subsection (5)(b)(iii);

429 Enrolled Copy (ii) include the summary described in Subsection (5)(b)(iii);

(9)(9)(a) (a) The withdrawing entity's legislative body may adopt a resolution to withdraw at a public meeting:

{(10)(10) } (a){(10)} The withdrawal of a county or municipality from a garbage disposal district as described in Subsection (9) does not require the approval of the garbage disposal district's board of trustees.

(11)(11)(a) - 23 - HB0429 compared with HB0429S02 (a) Within 10 days of the day on which a withdrawing entity and garbage disposal district enter into an agreement to withdraw under Subsection (3) or a legislative body adopts a resolution to withdraw under Subsection (9), the withdrawing entity shall file with the lieutenant governor a copy of:

(b)- Upon20 the- lieutenantEnrolled governor'sCopy issuanceH.B. of a certificate of withdrawal under Section 67-1a-6.5, the withdrawing entity shall submit to the county recorder the original:

429 (b) Upon the lieutenant governor's issuance of a certificate of withdrawal under Section 67-1a-6.5, the withdrawing entity shall submit to the county recorder the original:

(b){(12)}(12) {The effective date of a } A withdrawal under this section is {governed by Subsection 17B-1-512(2)(a)} effective the day on which the lieutenant governor issues a certificate of withdrawal under Section 67-1a-6.5.

17B-1-511.17B-1-511 .

- 24 - HB0429 compared with HB0429S02 (2) For a special district funded predominately by revenues other than property taxes, service charges, or assessments based upon an allotment of acre-feet of water, property within the withdrawn area shall continue to be taxable by the special district for purposes of paying the withdrawn area's proportionate share of bonded indebtedness or judgments against the special district incurred [prior to] before:

(a) the date the petition was filed[.] ;or; (b) the date {a county notifies a law enforcement } the garbage disposal district's board of trustees {of } received the {county's proposed withdrawal } notice of intent to withdraw under Section {17B-1-505.1;

or}or (b) the date the garbage disposal district's board of trustees received the notice of intent to withdraw under Section 17B-1-505.7.

(3) {the date the garbage disposal district's board of trustees received the notice of intent to withdraw under Section 17B-1-505.7.} {(3)} An area withdrawn from an infrastructure financing district remains subject to any taxes, fees, and assessments imposed by the infrastructure financing district until obligations allocable to the withdrawn area are paid.

(4)- Except21 as- providedH.B. in Subsections (1), (2), and (3), upon withdrawal, the withdrawing area is relieved of all other taxes, assessments, and charges levied by the district, including taxes and charges for the payment of revenue bonds and maintenance and operation cost of the special district.

429 Enrolled Copy (4) Except as provided in Subsections (1), (2), and (3), upon withdrawal, the withdrawing area is relieved of all other taxes, assessments, and charges levied by the district, including taxes and charges for the payment of revenue bonds and maintenance and operation cost of the special district.

17B-1-512.17B-1-512 .

(1)(1)(a) (a) Within the time specified in Subsection (1)(b), the board of trustees shall file with the lieutenant governor:

- 25 - HB0429 compared with HB0429S02 (A) the board of trustees' receipt of a notice or copy described in Subsection [(1)(c)] (1)(c)(i), if the board of trustees receives the notice or copy [between July 1 and December 31] on or after July 1 and before January 1;

{or} and (iii) on or before the July 31 following:

(B)- a22 copy- ofEnrolled theCopy municipalH.B. legislative body's resolution approving an automatic withdrawal under Subsection 17B-1-502(3)(a);{[ or]} (C) a notice of a withdrawal of a municipality from a special district under Section 17B-1-502;{[ or]} {(D) a final resolution to withdraw under Section 17B-1-505.1;

or}429 {(E)(B) noticea copy of athe municipal legislative body's resolution toapproving withdrawan automatic withdrawal under SectionSubsection 17B-1-505.7;17B-1-502(3)(a);

or}or (ii)(C) enteringa intonotice anof agreement{:}a {(A)}withdrawal withof a municipality orfrom countya underspecial Subsectiondistrict 17B-1-505(5)(a)(ii)(A)under orSection (5)(b){;17B-1-502;

or {(B)}(ii) entering into an agreement with a withdrawingmunicipality entityor county under Subsection 17B-1-505.7(3)}.17B-1-505(5)(a)(ii)(A) or (5)(b).

and - 26 - HB0429 compared with HB0429S02 (B) if applicable, a certified copy of the resolution or notice referred to in Subsection (1)(b);

(2) A withdrawal shall be effective, subject to the conditions of the withdrawal resolution, if applicable, upon the lieutenant governor's issuance of the certificate of withdrawal under Section 67-1a-6.567-1a-6.5, , for:

(a) a withdrawal under Section {17B-1-501} 17B-1-510;

(b) an automatic withdrawal under Subsection 17B-1-502(3);or17B-1-502(3); (c) the withdrawal of {a municipality } an eligible area from a {special } district under Section 17B-1-505{;

}or .(c) the withdrawal of an eligible area from a district under Section 17B-1-505.

[(2)[(2)(a) (a)Upon {(d)}the {thelieutenant withdrawalgovernor's issuance of the certificate of withdrawal under Section 67-1a-6.5 for a county,withdrawal inunder wholeSection 17B-1-510, for an automatic withdrawal under Subsection 17B-1-502(3), or infor part,the fromwithdrawal of a lawmunicipality enforcementfrom a special district under Section 17B-1-505.1;17B-1-505, the withdrawal shall be effective, - 23 - H.B.

or}429 {theEnrolled withdrawalCopy of a county or a municipality from a garbage disposal district under Section 17B-1-505.7.} {[(2)} {(a)} Upon the lieutenant governor's issuance of the certificate of withdrawal under Section 67-1a-6.5 for a withdrawal under Section 17B-1-510, for an automatic withdrawal under Subsection 17B-1-502(3), or for the withdrawal of a municipality from a special district under Section 17B-1-505, the withdrawal shall be effective, subject to the conditions of the withdrawal resolution, if applicable.] [(b) An automatic withdrawal under Subsection 17B-1-502(3) shall be effective upon the lieutenant governor's issuance of a certificate of withdrawal under Section 67-1a-6.5.] (3)(3)(a) (a) The special district may provide for the publication of any resolution approving or denying the withdrawal of an area:

- 27 - HB0429 compared with HB0429S02 (i) in a newspaper of general circulation in the area proposed for withdrawal;

(6)(6)(a) (a) Any person in interest may seek judicial review of:

(b) Judicial review under this Subsection (6) shall be initiated by filing an action in the district- court24 in- theEnrolled countyCopy inH.B. which a majority of the area proposed to be withdrawn is located:

429 district court in the county in which a majority of the area proposed to be withdrawn is located:

- 28 - HB0429 compared with HB0429S02 (ii) if the resolution is not published pursuant to Subsection (3), within 60 days after the resolution approving or denying the withdrawal is adopted;

Effective date.

3-3-26 5:17 PM - 2925 -