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H.B. 221

             1     

REVISOR'S STATUTE

             2     
2000 GENERAL SESSION

             3     
STATE OF UTAH

             4     
Sponsor: Susan J. Koehn

             5      AN ACT RELATING TO STATE AFFAIRS; MAKING TECHNICAL AMENDMENTS; AND
             6      REPEALING CERTAIN OUTDATED SECTIONS.
             7      This act affects sections of Utah Code Annotated 1953 as follows:
             8      AMENDS:
             9          9-2-1610, as enacted by Chapter 236, Laws of Utah 1996
             10          10-2-115, as enacted by Chapter 389, Laws of Utah 1997
             11          10-2-416, as repealed and reenacted by Chapter 389, Laws of Utah 1997
             12          10-3-106, as last amended by Chapter 17, Laws of Utah 1999
             13          13-30-106, as last amended by Chapter 124, Laws of Utah 1999
             14          17A-1-301, as last amended by Chapter 30, Laws of Utah 1992
             15          17A-1-437, as last amended by Chapter 285, Laws of Utah 1992
             16          17A-2-215, as last amended by Chapter 227, Laws of Utah 1993
             17          17A-2-219, as renumbered and amended by Chapter 186, Laws of Utah 1990
             18          17A-2-331, as renumbered and amended by Chapter 186, Laws of Utah 1990
             19          17A-2-422, as renumbered and amended by Chapter 186, Laws of Utah 1990
             20          17A-2-534, as renumbered and amended by Chapter 186, Laws of Utah 1990
             21          17A-2-535, as last amended by Chapter 227, Laws of Utah 1993
             22          17A-2-544, as renumbered and amended by Chapter 186, Laws of Utah 1990
             23          17A-2-553, as renumbered and amended by Chapter 186, Laws of Utah 1990
             24          17A-2-605, as last amended by Chapter 146, Laws of Utah 1994
             25          17A-2-812, as renumbered and amended by Chapter 186, Laws of Utah 1990
             26          17A-2-818, as last amended by Chapters 199 and 299, Laws of Utah 1995
             27          17A-2-824, as renumbered and amended by Chapter 186, Laws of Utah 1990


             28          17A-2-1023, as renumbered and amended by Chapter 186, Laws of Utah 1990
             29          17A-2-1024, as renumbered and amended by Chapter 186, Laws of Utah 1990
             30          17A-2-1030, as renumbered and amended by Chapter 186, Laws of Utah 1990
             31          17A-2-1202, as last amended by Chapter 320, Laws of Utah 1995
             32          17A-2-1210, as last amended by Chapter 50, Laws of Utah 1993
             33          17A-2-1302, as renumbered and amended by Chapter 186, Laws of Utah 1990
             34          17A-2-1411, as renumbered and amended by Chapter 186, Laws of Utah 1990
             35          17A-2-1425, as renumbered and amended by Chapter 186, Laws of Utah 1990
             36          17A-2-1437, as last amended by Chapter 152, Laws of Utah 1996
             37          17A-2-1444, as renumbered and amended by Chapter 186, Laws of Utah 1990
             38          17A-2-1512, as renumbered and amended by Chapter 186, Laws of Utah 1990
             39          17A-2-1704, as last amended by Chapter 212, Laws of Utah 1993
             40          17A-2-1709, as renumbered and amended by Chapter 186, Laws of Utah 1990
             41          17A-2-1803, as last amended by Chapter 19, Laws of Utah 1998
             42          17A-2-1805, as enacted by Chapter 216, Laws of Utah 1995
             43          17A-3-209, as last amended by Chapter 365, Laws of Utah 1999
             44          17A-3-210, as last amended by Chapter 30, Laws of Utah 1992
             45          17A-3-303, as last amended by Chapter 47, Laws of Utah 1991
             46          17A-3-412, as renumbered and amended by Chapter 186, Laws of Utah 1990
             47          17A-3-701, as last amended by Chapter 106, Laws of Utah 1999
             48          17B-2-201, as enacted by Chapter 368, Laws of Utah 1998
             49          19-6-703, as enacted by Chapter 283, Laws of Utah 1993
             50          26-8a-402, as enacted by Chapter 141, Laws of Utah 1999
             51          26-8a-502, as enacted by Chapter 141, Laws of Utah 1999
             52          26-18-2, as last amended by Chapter 61, Laws of Utah 1999
             53          26-18-3.7, as last amended by Chapter 209, Laws of Utah 1997
             54          26-21-2, as last amended by Chapters 13 and 192, Laws of Utah 1998
             55          26-40-102, as enacted by Chapter 360, Laws of Utah 1998
             56          26-44-101, as enacted by Chapter 344, Laws of Utah 1999
             57          26-44-202, as enacted by Chapter 344, Laws of Utah 1999
             58          30-1-9, as last amended by Chapter 15, Laws of Utah 1999


             59          30-3-38, as last amended by Chapters 235 and 329, Laws of Utah 1997
             60          31A-5-103, as enacted by Chapter 242, Laws of Utah 1985
             61          31A-16-103, as last amended by Chapter 131, Laws of Utah 1999
             62          31A-22-302, as last amended by Chapter 132, Laws of Utah 1992
             63          31A-22-604, as last amended by Chapter 102, Laws of Utah 1995
             64          31A-23-102, as last amended by Chapter 131, Laws of Utah 1999
             65          31A-23-503, as last amended by Chapter 9, Laws of Utah 1996, Second Special Session
             66          31A-23-601, as last amended by Chapter 9, Laws of Utah 1996, Second Special Session
             67          31A-25-205, as enacted by Chapter 242, Laws of Utah 1985
             68          32A-1-105, as last amended by Chapter 141, Laws of Utah 1998
             69          32A-1-113, as last amended by Chapter 169, Laws of Utah 1997
             70          32A-1-117, as renumbered and amended by Chapter 23, Laws of Utah 1990
             71          32A-1-118, as renumbered and amended by Chapter 23, Laws of Utah 1990
             72          32A-1-121, as renumbered and amended by Chapter 23, Laws of Utah 1990
             73          32A-1-504, as enacted by Chapter 20, Laws of Utah 1993
             74          32A-3-102, as last amended by Chapter 132, Laws of Utah 1991
             75          32A-4-102, as last amended by Chapter 132, Laws of Utah 1991
             76          32A-4-106, as last amended by Chapter 127, Laws of Utah 1998
             77          32A-4-202, as last amended by Chapter 132, Laws of Utah 1991
             78          32A-4-206, as last amended by Chapter 127, Laws of Utah 1998
             79          32A-5-102, as last amended by Chapter 132, Laws of Utah 1991
             80          32A-5-107, as last amended by Chapter 127, Laws of Utah 1998
             81          32A-7-102, as last amended by Chapter 132, Laws of Utah 1991
             82          32A-8-102, as last amended by Chapter 132, Laws of Utah 1991
             83          32A-8-106, as last amended by Chapters 77 and 88, Laws of Utah 1994
             84          32A-8-502, as enacted by Chapter 20, Laws of Utah 1993
             85          32A-8-505, as last amended by Chapter 141, Laws of Utah 1998
             86          32A-9-102, as last amended by Chapter 132, Laws of Utah 1991
             87          32A-9-106, as last amended by Chapter 270, Laws of Utah 1998
             88          32A-10-202, as last amended by Chapter 282, Laws of Utah 1998
             89          32A-10-206, as last amended by Chapter 127, Laws of Utah 1998


             90          32A-11-102, as last amended by Chapter 282, Laws of Utah 1998
             91          32A-11-106, as last amended by Chapter 88, Laws of Utah 1994
             92          32A-11a-102, as enacted by Chapter 328, Laws of Utah 1998
             93          32A-12-303, as last amended by Chapter 132, Laws of Utah 1991
             94          32A-12-304, as last amended by Chapter 132, Laws of Utah 1991
             95          32A-12-305, as last amended by Chapter 132, Laws of Utah 1991
             96          32A-12-306, as renumbered and amended by Chapter 23, Laws of Utah 1990
             97          32A-12-307, as last amended by Chapter 20, Laws of Utah 1993
             98          32A-12-308, as last amended by Chapter 132, Laws of Utah 1991
             99          32A-12-310, as enacted by Chapter 132, Laws of Utah 1991
             100          32A-13-109, as renumbered and amended by Chapter 23, Laws of Utah 1990
             101          53-10-102, as renumbered and amended by Chapter 263, Laws of Utah 1998
             102          53-10-304, as renumbered and amended by Chapter 263, Laws of Utah 1998
             103          53-10-305, as renumbered and amended by Chapter 263, Laws of Utah 1998
             104          53A-15-205, as enacted by Chapter 246, Laws of Utah 1994
             105          58-37c-19, as enacted by Chapter 100, Laws of Utah 1998
             106          58-37c-20, as enacted by Chapter 100, Laws of Utah 1998
             107          58-56-3, as last amended by Chapter 42, Laws of Utah 1999
             108          58-59-303, as repealed and reenacted by Chapter 247, Laws of Utah 1994
             109          58-67-102, as last amended by Chapter 4, Laws of Utah 1999
             110          58-68-102, as last amended by Chapter 4, Laws of Utah 1999
             111          59-2-601, as last amended by Chapter 264, Laws of Utah 1998
             112          62A-7-109, as last amended by Chapter 10, Laws of Utah 1999
             113          62A-12-282.1, as last amended by Chapters 10, 329 and 365, Laws of Utah 1997
             114          63-25a-501, as enacted by Chapter 346, Laws of Utah 1999
             115          63-55-209, as last amended by Chapters 21, 76 and 156, Laws of Utah 1999
             116          63-55-254, as last amended by Chapter 189, Laws of Utah 1999
             117          63-55-262, as last amended by Chapters 15 and 134, Laws of Utah 1997
             118          63-55-263, as last amended by Chapters 13, 122 and 270, Laws of Utah 1998
             119          63-55b-163, as renumbered and amended by Chapter 21, Laws of Utah 1999
             120          63-75-7, as last amended by Chapter 136, Laws of Utah 1996


             121          63A-9-801, as renumbered and amended by Chapter 252 and last amended by Chapter 375,
             122      Laws of Utah 1997
             123          63C-8-101, as enacted by Chapter 202, Laws of Utah 1997
             124          76-8-508, as last amended by Chapter 175, Laws of Utah 1988
             125          76-9-704, as last amended by Chapter 51, Laws of Utah 1999
             126          76-10-105.1, as last amended by Chapter 412, Laws of Utah 1998
             127          76-10-803, as last amended by Chapter 141, Laws of Utah 1992
             128          76-10-1305, as last amended by Chapter 79, Laws of Utah 1996
             129          76-10-1902, as last amended by Chapter 97, Laws of Utah 1999
             130          77-19-11, as last amended by Chapter 113, Laws of Utah 1996
             131          77-20-8.5, as last amended by Chapter 257, Laws of Utah 1998
             132          77-32-401, as enacted by Chapter 354, Laws of Utah 1997
             133          77-37-3, as last amended by Chapter 40, Laws of Utah 1993
             134          78-3a-905, as last amended by Chapter 260, Laws of Utah 1999
             135          78-3c-4, as last amended by Chapter 30, Laws of Utah 1992
             136          78-3g-102, as last amended by Chapter 68, Laws of Utah 1998
             137      REPEALS:
             138          26-8-15, as last amended by Chapter 241, Laws of Utah 1991
             139          78-32-12.3, as enacted by Chapter 152, Laws of Utah 1993
             140      Be it enacted by the Legislature of the state of Utah:
             141          Section 1. Section 9-2-1610 is amended to read:
             142           9-2-1610. Recycling market development zones credit.
             143          For a taxpayer within a recycling market development zone, there are allowed the credits
             144      against tax as provided by Sections [ 59-7-608 ] 59-7-610 and 59-10-108.7 .
             145          Section 2. Section 10-2-115 is amended to read:
             146           10-2-115. Notice of number of commission or council members to be elected and of
             147      district boundaries -- Declaration of candidacy for city office.
             148          (1) (a) Within 20 days of the county legislative body's receipt of the information under
             149      Subsection 10-2-114 (1)(d), the county clerk shall publish in a newspaper of general circulation
             150      within the future city a notice containing:
             151          (i) the number of commission or council members to be elected for the new city;


             152          (ii) if some or all of the commission or council members are to be elected by district, a
             153      description of the boundaries of those districts as designated by the petition sponsors under
             154      Subsection 10-2-114 (1)(b);
             155          (iii) information about the deadline for filing a declaration of candidacy for those seeking
             156      to become candidates for mayor or city commission or council; and
             157          (iv) information about the length of the initial term of each of the city officers, as
             158      determined by the petition sponsors under Subsection 10-2-114 (1)(c).
             159          (b) The notice under Subsection (1)(a) shall be published at least once a week for two
             160      successive weeks.
             161          (c) (i) If there is no newspaper of general circulation within the future city, the county clerk
             162      shall post at least one notice per 1,000 population in conspicuous places within the future city that
             163      are most likely to give notice to the residents of the future city.
             164          (ii) The notice under Subsection (1)(c)(i) shall contain the information required under
             165      Subsection (1)(a).
             166          (iii) The petition sponsors shall post the notices under Subsection (1)(c)(i) at least seven
             167      days before the deadline for filing a declaration of candidacy under Subsection (2).
             168          (2) Notwithstanding Subsection [ 20A-2-203 ] 20A-9-203 (2)(a), each person seeking to
             169      become a candidate for mayor or city commission or council of a city incorporating under this part
             170      shall, within 45 days of the incorporation election under Section 10-2-111 , file a declaration of
             171      candidacy with the clerk of the county in which the future city is located.
             172          Section 3. Section 10-2-416 is amended to read:
             173           10-2-416. Commission decision -- Written decision -- Limitation.
             174          (1) Subject to Subsection (3), after the public hearing under Subsection 10-2-415 (1) the
             175      commission may:
             176          (a) approve the proposed annexation, either with or without conditions;
             177          (b) make minor modifications to the proposed annexation and approve it, either with or
             178      without conditions; or
             179          (c) disapprove the proposed annexation.
             180          (2) The commission shall issue a written decision on the proposed annexation within 20
             181      days of the conclusion of the hearing under Subsection 10-2-415 (1) and send a copy of the decision
             182      to:


             183          (a) the legislative body of the county in which the area proposed for annexation is located;
             184          (b) the legislative body of the proposed annexing municipality;
             185          (c) the contact person on the annexation petition;
             186          (d) each entity that filed a protest; and
             187          (e) if a protest was filed under Subsection 10-2-407 (1)[(d)](a)(iv), the contact person.
             188          (3) The commission may not approve a proposed annexation unless the results of the
             189      feasibility study under Section 10-2-413 show that the average annual amount under Subsection
             190      10-2-413 (3)(a)(ix) does not exceed the average annual amount under Subsection
             191      10-2-413 (3)(a)(viii) by more than 5%.
             192          Section 4. Section 10-3-106 is amended to read:
             193           10-3-106. Governing body in towns.
             194          The governing body of each town that has not adopted an optional form of government
             195      under Part 12, Alternative Forms of Municipal Government Act, shall be a council of five persons
             196      one of whom shall be the mayor and the remaining four shall be [councilmen] council members.
             197          Section 5. Section 13-30-106 is amended to read:
             198           13-30-106. Bond, certificate of deposit, or letter of credit.
             199          (1) (a) A person may not conduct a personal introduction service unless at the time of
             200      conducting the personal introduction service the person has on file with the division a good and
             201      sufficient bond, certificate of deposit, or letter of credit.
             202          (b) If a personal introduction service business obtains and maintains a bond, the bond shall
             203      be a performance bond issued by a surety authorized to transact surety business in this state.
             204          (2) The bond, certificate of deposit, or letter of credit shall be for an amount prescribed by
             205      rule, payable to the division.
             206          (3) (a) The bond, certificate of deposit, or letter of credit shall provide that the person
             207      giving it shall, upon written demand, remit to the division the amount necessary:
             208          (i) as reimbursement for both administrative and civil violations of this chapter; and
             209          (ii) in satisfaction of any civil [and or] judgments, criminal judgments, or both, rendered
             210      by a court of competent jurisdiction for violations of this chapter.
             211          (b) Notwithstanding Subsection (3)(a), recovery from a bond, certificate of deposit, or
             212      letter of credit is limited to the amount of the bond, certificate of deposit, or letter of credit.
             213          (4) The division may:


             214          (a) specify the form of the bond, certificate of deposit, or letter of credit; and
             215          (b) require that the bond, certificate of deposit, or letter of credit contain additional
             216      provisions and conditions that the division considers necessary or proper to protect the persons for
             217      whom the collection is undertaken.
             218          (5) (a) A bond, certificate of deposit, or letter of credit required under this section shall be
             219      for the term of one year from the date of issuance and shall run concurrently with the registration.
             220          (b) The applicant shall maintain the bond, certificate of deposit, or letter of credit for the
             221      entire duration of the registration and for a period of not less than one year after the division
             222      receives notice in writing from the person engaged in the business of a personal introduction
             223      service that all activities have ceased.
             224          (c) An action on a bond, certificate of deposit, or letter of credit may not be initiated more
             225      than two years from the date the bond, certificate of deposit, or letter of credit expires.
             226          Section 6. Section 17A-1-301 is amended to read:
             227           17A-1-301. Exemptions.
             228          This part does not apply to:
             229          (1) public transit districts established under authority of Title 17A, Chapter 2, Part 10,
             230      Utah Public Transit District Act;
             231          (2) water conservancy districts established under Title 17A, Chapter 2, Part 14, Water
             232      Conservancy Districts;
             233          (3) soil conservation districts created under the authority of Title 17A, Chapter 3, Part 8,
             234      Soil Conservation Districts;
             235          (4) neighborhood redevelopment agencies established under authority of Title 17A,
             236      Chapter 2, Part 12, Utah Neighborhood Development Act;
             237          (5) metropolitan water districts established under authority of Title 17A, Chapter 2, Part
             238      8, Metropolitan Water District Act;
             239          (6) any dependent special district established under the authority of Title 17A, Chapter 3,
             240      Dependent Special Districts; and
             241          (7) a hazardous waste facilities [Management Authorities] authority established under
             242      authority of [Title 17A,] Chapter 2, Part 17, Hazardous Waste Facilities Management Act.
             243          Section 7. Section 17A-1-437 is amended to read:
             244           17A-1-437. District treasurer -- Duties generally.


             245          (1) (a) The governing body of the district shall appoint a district treasurer.
             246          (b) (i) Where required, the treasurer may be chosen from among the members of the
             247      governing board, except that the chairman of the board may not be district treasurer.
             248          (ii) The district clerk may not also be the district treasurer.
             249          (2) The district treasurer is custodian of all money, bonds, or other securities of the district.
             250          (3) The district treasurer shall:
             251          (a) determine the cash requirements of the district and provide for the deposit and
             252      investment of all monies by following the procedures and requirements of Title 51, Chapter 7,
             253      State Money Management Act;
             254          (b) receive all public funds and money payable to the district within three business days
             255      after collection, including all taxes, licenses, fines, and intergovernmental revenue;
             256          (c) keep an accurate detailed account of all monies received under Subsection [(2)] (3)(b)
             257      in the manner provided in this part and as directed by the governing body of the district by
             258      resolution; and
             259          (d) collect all special taxes and assessments as provided by law and ordinance.
             260          Section 8. Section 17A-2-215 is amended to read:
             261           17A-2-215. Board of cemetery maintenance commissioners -- Organization --
             262      Vacancies -- Officers -- Certified copies of appointments -- Regular and special meetings --
             263      Bills payable -- Oath of office and bond.
             264          Immediately after qualifying, the board of cemetery maintenance commissioners shall meet
             265      and organize as a board and, at that time, and whenever thereafter vacancies in the respective
             266      offices may occur, they shall elect a president from their number and shall appoint a secretary and
             267      treasurer who may also be from their number all of whom shall hold office during the pleasure of
             268      the board or for terms fixed by the board. The offices of secretary and treasurer may be filled by
             269      the same person. Certified copies of all such appointments under the hand of each of the
             270      commissioners shall be forthwith filed with the clerk of the county legislative body and with the
             271      tax collector of the county.
             272          As soon as practicable after the organization of the first board of cemetery maintenance
             273      commissioners and thereafter when deemed expedient or necessary such board shall designate a
             274      day and hour on which regular meetings shall be held and a place for the holding thereof which
             275      shall be within the district. Regular meetings must show what bills are submitted, considered,


             276      allowed or rejected. The secretary shall make a list of all bills presented, showing to whom
             277      payable, for what service or material, when and where used, amount claimed, allowed or
             278      disallowed. Such list shall be signed by the chairman and attested by the secretary; provided, that
             279      all special meetings must be ordered by the president or a majority of the board, the order must be
             280      entered of record, and the secretary must give each member not joining in the order[,] five days
             281      notice of special meetings; provided further, that whenever all members of the board are present
             282      the same shall be deemed a legal meeting and any lawful business may be transacted. All meetings
             283      of the board must be public and a majority shall constitute a quorum for the transaction of
             284      business. All records shall be open to the inspection of any elector during business hours.
             285          The officers of the district shall take and file with the secretary an oath for the faithful
             286      performance of the duties of the respective officers. The treasurer shall on his appointment execute
             287      and file with the secretary an official bond in such an amount as may be fixed by the cemetery
             288      maintenance board which amount shall be at least sufficient to cover the probable amounts of
             289      money coming into his hands and 25% thereof in addition thereto.
             290          Section 9. Section 17A-2-219 is amended to read:
             291           17A-2-219. Acquisition and possession of property -- Legal title -- Actions by and
             292      against board.
             293          The legal title to all property acquired under the provisions of this part shall immediately,
             294      and by operation of law, vest in such cemetery maintenance district and shall be held by such
             295      district in trust for and is dedicated and set aside to the uses and purposes set forth in this part.
             296      Said board is authorized and empowered to hold, use, acquire, manage, occupy and possess said
             297      property as herein provided and to institute and maintain any and all actions and proceedings, suits
             298      at law or in equity or to enforce, maintain, protect or preserve any and all rights, privileges and
             299      immunities created by this part or acquired in pursuance thereof. In all courts, actions, suits or
             300      proceedings, the said board may sue, appear and defend, in person or by attorney and in the manner
             301      of such cemetery maintenance district.
             302          Section 10. Section 17A-2-331 is amended to read:
             303           17A-2-331. Annexation of areas.
             304          [Area] An area outside of any improvement district created under or operating under
             305      provisions of Chapter 2, Part 3, County Improvement Districts for Water, Sewerage, Flood
             306      Control, Electric and Gas, may be annexed to any such improvement district in the manner herein


             307      provided.
             308          Section 11. Section 17A-2-422 is amended to read:
             309           17A-2-422. Proposal to incur indebtedness -- Resolution -- Notice -- Hearing --
             310      Calling of bond election -- Written protests.
             311          (1) (a) A proposal to incur indebtedness which would cause the total county debt to exceed
             312      the county taxes for the current year or which would not be payable within one year, as the case
             313      may be, may be originated by a majority vote of the board of trustees or by petition of not less than
             314      100 property owners or 10% of all the property owners, whichever is less, who own property
             315      within the county service area or by petition of not less than 10% of all the qualified voters residing
             316      in the county service area.
             317          (b) The proposal shall specify the particular purpose for which the indebtedness is to be
             318      created, the amount in money of bonds which it is proposed to issue and the name and number of
             319      the county service area.
             320          (2) After the proposal has been made, the board of trustees, as expeditiously as possible,
             321      shall adopt a resolution fixing a time and place at which the proposal shall be heard, which time
             322      shall be not less than 30 nor more than 60 days after the date of adoption of the resolution.
             323          (3) (a) The board of trustees shall immediately issue a notice of the time and place of
             324      hearing, which notice shall state that all persons who own property in the service area when the
             325      debt is payable solely from within the county service area or all persons residing in the county
             326      when the debt is countywide may appear at the hearing and contend for or protest against the
             327      incurrence of the debt and the holding of a bond election.
             328          (b) If the service area has issued bonds, the notice shall include a statement of the amount
             329      of outstanding bonds of the service area and shall indicate whether the bonds are general
             330      obligations of the county or are payable solely from within the county service area.
             331          (4) (a) The board of trustees shall cause the notice to be published once a week during four
             332      consecutive weeks in a newspaper of general circulation in the county, the first publication to be
             333      not more than 60 days nor less than 28 days prior to the date of the hearing.
             334          (b) It is not necessary that the notice be published on the same day of the week in each of
             335      four calendar weeks, but not less than 20 days shall intervene between the first publication and the
             336      last publication.
             337          (5) At the time and place set for the hearing of the petition, or upon a subsequent date fixed


             338      at the original hearing the board of trustees shall proceed to hear the proposal and all matters in
             339      respect to a bond election.
             340          (6) If, upon the hearing of the proposal, the board of trustees finds that due notice has been
             341      given and that the services under discussion would be for the benefit of all taxable property or the
             342      real property owners situated in the service area, then the board shall make and cause to be entered
             343      of record upon its minutes an order so finding, and shall proceed to call the bond election and, if
             344      a majority of those voting, vote in the affirmative, to issue the bonds in the manner provided.
             345          (7) The board may reduce the amount in money of the bonds named in the petition.
             346          (8) (a) If written protests are filed prior to the date fixed for the original hearing, signed
             347      by property owners owning taxable property in the service area with a taxable value in excess of
             348      40% of the taxable value of all the taxable property within the service area, according to the last
             349      assessment roll for county taxes completed prior to the holding of the election or by 40% of all the
             350      qualified voters residing in the county service area or by 40% of all the qualified voters residing
             351      in the county, the board does not have authority to proceed with the calling of the election, and no
             352      new petition for a bond election in the service area may be entertained for a period of 12 months
             353      from that time.
             354          (b) If written protests are filed and the board of trustees determines that the protests so
             355      filed represent less than the 40% required, a resolution or finding in writing of the board calling
             356      the election shall so recite and the recital shall be conclusive.
             357          (9) The provisions of this section and of Section 17A-2-407 with regard to publication of
             358      notice in a newspaper may be carried out concurrently.
             359          Section 12. Section 17A-2-534 is amended to read:
             360           17A-2-534. Public uses -- Right of entry on lands -- Penalty for interference.
             361          (1) The use of any canal, ditch, or the like, created under the provisions of this part, shall
             362      be deemed a public use and for a public benefit.
             363          (2) The supervisors or their representatives from the time of their appointment may go
             364      upon the lands lying within [said] the district for the purpose of examining the same, and making
             365      surveys, and after the organization of [said] the district and payment or tender of compensation
             366      allowed, may go upon [said] those lands with their servants, teams, tools, instruments, or other
             367      equipment, for the purpose of constructing such proposed work, and may forever thereafter enter
             368      upon [said] those lands, as aforesaid, for the purpose of maintaining or repairing such proposed


             369      work, doing no more damage than the necessity of the occasion may require[, any].
             370          (3) Any person or persons who shall willfully prevent or prohibit any of such persons from
             371      entering such lands for the purpose aforesaid shall be deemed guilty of a misdemeanor and upon
             372      conviction be fined any sum not exceeding $25 per day for each day's hindrance, which sum shall
             373      be paid into the county treasury for the use of [said] the district.
             374          Section 13. Section 17A-2-535 is amended to read:
             375           17A-2-535. Validation of organization proceedings -- Notice of proposed corrections,
             376      amendments or changes in assessment of benefits -- Hearing by county legislative body of
             377      report of board of supervisors -- Board of equalization -- Increase of drainage benefits and
             378      taxes -- Lien.
             379          Whenever it shall appear to the board of supervisors that any proceedings for the
             380      organization of a drainage district have not been strictly in compliance with law, or if any lands
             381      within the district have been erroneously assessed for benefits or taxes, or inequitably assessed for
             382      benefits or taxes, or that any assessment of damages or benefits under this part has been made in
             383      error as to description, ownership, or acreage intended to be assessed, or if it shall appear to such
             384      board of supervisors that the assessment of benefits has been inequitably distributed among the
             385      various parcels of land, or unjustly equalized as between the various parcels of land within the
             386      district, or that any tract of land, easement or interest in land, public[,] or private road, railroad or
             387      railroad right-of-way, has been included in, or omitted from, any assessment roll of benefits or
             388      taxes by reason of clerical error or otherwise, or that proper notice or notices as required by law
             389      has not or have not been given, such noncompliance, error, omission or want of notice shall not
             390      invalidate such organization, neither shall any such assessments of benefits or taxes be lost to the
             391      district in case of any omission, nor shall the board of supervisors and the county legislative body
             392      be held to have lost jurisdiction to correct such error or omission, or to readjust such assessments
             393      of benefits or to redistribute such assessment of benefits upon the various parcels of land and
             394      interest in lands within such district, and to justly equalize the same as between various parcels of
             395      land and interest in lands within the district, but the board of supervisors of such district may report
             396      any such conditions and recommend such corrections and changes as such board of supervisors
             397      may deem necessary to remedy the same; and upon receiving such report and recommendation the
             398      said county legislative body may make such corrections, amendments or changes in the assessment
             399      rolls of benefits and taxes, or correct any error, omission, mistake, inequality or want of sufficient


             400      notice, as may be just; provided, that when any correction, amendment or change is sought to be
             401      made, notice of such proposed correction, amendment or change in the assessment of benefits and
             402      taxes shall be given to all persons affected thereby, in the following manner:
             403          The board of supervisors of the drainage district shall file with the clerk of the county
             404      legislative body of the county wherein the drainage district is located, a verified report containing
             405      the proposed corrections, amendments, and/or changes in the assessments of benefits and taxes
             406      with their recommendation with respect thereto, to the county legislative body. The county
             407      legislative body shall, at its first meeting thereafter, fix a time and place for a hearing on said report
             408      and shall cause a notice of the hearing thereon to be published three times if in a daily newspaper,
             409      twice if in a semiweekly newspaper and once if in a weekly newspaper, not less than 15 days
             410      before said hearing, and when the residence or post-office address of any landowner, whose
             411      assessment of benefits or taxes is to be corrected, amended or changed is known the clerk of the
             412      county legislative body shall cause a copy of the notice to be sent by United States mail to such
             413      landowner, not less than 15 days before the time fixed for the hearing on the report. The notice
             414      shall state generally the purpose of the hearing and the time and place where the county legislative
             415      body shall meet as a board of equalization to hear and determine any complaint made against such
             416      report, corrections, amendments and changes in the assessment roll of benefits and taxes.
             417          The county legislative body at the time and place fixed in the notice shall sit as a board of
             418      equalization and it shall make and finally determine such corrections, amendments and changes
             419      in the roll of assessment of benefits and taxes, as it shall determine after such hearing, and
             420      thereafter all such lands, easements or interest in lands shall be assessed in accordance with the
             421      assessment roll as thus corrected, amended, or changed; and such changed assessment roll of
             422      benefits and taxes shall be the basis of lien upon the parcels of land or interest in land, as corrected,
             423      amended or changed, for all district indebtedness. Whenever it shall be made to appear to the board
             424      of supervisors of the drainage district that any owner or operator of any land within the drainage
             425      district has so changed the use of such land so as to increase the benefits received by such land by
             426      reason of the construction, maintenance, and operation of the drainage system, the board of
             427      supervisors of the drainage district shall view each tract of such land and shall carefully consider
             428      the increased benefits such tract of land is receiving from the construction, maintenance and
             429      operation of the drainage system and shall assess such tract of land in accordance with the
             430      increased benefits received by it. After such assessment is made, the secretary of the board of


             431      supervisors shall transmit the same to the county legislative body and the county legislative body
             432      shall within 15 days after receipt thereof, cause not less than 15 days notice to be sent by mail to
             433      each landowner in the district whose benefits have thus been increased, showing the amount of the
             434      benefits as thus increased on the land owned by the landowner within the district; and stating
             435      therein the time and place where the county legislative body shall meet as a board of equalization
             436      to hear and determine complaints made against such increased assessments. At such hearing any
             437      landowner upon whose lands the benefits are thus increased may appear and oppose such increase
             438      or any part thereof. The county legislative body shall sit as a board of equalization of the increased
             439      drainage benefits and taxes, and shall equalize and determine the assessment of benefits and taxes
             440      to be made and levied upon such tract of land within the district. Such increased assessment of
             441      benefits shall be the basis of a lien upon such lands within the district for all district indebtedness
             442      and taxes.
             443          Section 14. Section 17A-2-544 is amended to read:
             444           17A-2-544. Bonds -- Lien on land and improvements.
             445          Whenever any such drainage district bonds shall be issued, or contract with the United
             446      States made, in accordance with the provisions of this part, such bonds or contract[,] shall
             447      constitute a lien upon all of the lands and improvements thereon within the boundaries of the
             448      district, to the extent of the total benefits, assessed and equalized, and pledged for such purpose,
             449      and not in excess thereof, and the board of supervisors of said district shall from time to time, as
             450      by this part provided, levy a sufficient tax to pay the annual interest charge on such bonds, and in
             451      addition thereto, such an amount as a sinking fund which shall, in the course of events and
             452      ultimately, amount to a sufficient sum to redeem said bonds, or in case of contract with the United
             453      States, shall levy a sufficient tax to meet all payments due, or to become due thereunder, and in
             454      addition thereto, a sufficient tax to pay the interest or penalties on any delinquent payment or
             455      payments, as provided in said contract or as required by the statutes of the United States.
             456          Section 15. Section 17A-2-553 is amended to read:
             457           17A-2-553. Taxes considered lien -- Sale of property -- Time of redemption -- Notice
             458      -- Penalty -- Record.
             459          All drainage taxes levied and assessed under the provisions of this title shall attach to and
             460      become a lien on the real property assessed from and after the second Monday in March. Drainage
             461      taxes shall become due and delinquent at the same time, and shall be collected by the same officers


             462      and in the same manner and at the same time as state and county taxes, and when collected shall
             463      be paid to the treasurer of the board of supervisors. The revenue laws of this state for the
             464      assessment, levying, and collecting of taxes on real estate for county purposes, except as herein
             465      modified, shall be applicable for the purposes of this part, including the enforcement of penalties
             466      and forfeiture for delinquent taxes; provided, that lands sold for delinquent district taxes shall be
             467      sold separately for such tax and a separate certificate of sale shall issue therefor, and provided
             468      further that the period of redemption from sale for taxes under this part[,] shall be four years. At
             469      the same time and in the same manner as the county treasurer publishes the delinquent tax list for
             470      state and county taxes in each year, the county treasurer must publish a delinquent drainage tax list,
             471      which must contain the names of the owners, when known and a description of the property
             472      delinquent or subject to lien of drainage district taxes with the amount of taxes due exclusive of
             473      penalty. The county treasurer must publish with such list a notice, each year, that unless the
             474      delinquent drainage taxes, together with the penalty, are paid before the date for tax sales for state
             475      and county taxes the real property upon which such taxes are a lien will be sold for taxes, penalty
             476      and costs, beginning on said date, at the front door of the county courthouse. The delinquent list
             477      shall be published three times if in a daily newspaper, twice if in a semiweekly and once if in a
             478      weekly newspaper. On the date for tax sales for state and county taxes each year, the county
             479      treasurer shall expose for sale, between the hours of ten a.m. and three p.m. sufficient of all
             480      delinquent real estate to pay the drainage district taxes, penalty and costs for which such real estate
             481      is liable, at public auction, at the front door of the county courthouse, and sell the same to the
             482      highest responsible bidder for cash, and the county treasurer shall continue to sell from day to day
             483      between such hours until the property of all delinquents is exhausted or the taxes, penalty and costs
             484      are paid. In offering such real estate for sale the treasurer shall offer the entire tract assessed, and
             485      the first bid received in an amount sufficient to pay the taxes and costs shall be accepted unless a
             486      further bid in the same amount for less than the entire tract shall be received; and the highest and
             487      best bid shall be construed to mean the bid of that bidder who will pay the full amount of the taxes
             488      and costs for the smallest undivided portion of said real estate. After receiving a bid for the full
             489      amount of the taxes and costs it shall not be the duty of the treasurer to attempt to secure a higher
             490      bid, but he shall accept it if made. The treasurer shall make a record of all sales of real property
             491      in a book to be kept by him for that purpose therein describing the several parcels of real property
             492      on which the taxes and costs were paid by the purchasers, in the same order as the published list


             493      of delinquent sales contained in the list of advertisements on file in his office. Separate columns
             494      shall also be provided in said record in which the treasurer shall enter the description of any tract
             495      sold that is less than the entire tract on which the taxes are due, the date of sale, to whom sold, the
             496      penalty, and costs, and the date of redemption. The purchaser shall be required to pay the penalty
             497      to the county treasurer, which penalty shall in all cases accrue to the benefit of the drainage district.
             498      When all sales have been made the county treasurer shall file the record in his office, in looseleaf
             499      bound form. It shall be the duty of the county treasurer to issue a receipt to any person paying
             500      drainage district taxes on an undivided interest in real estate, showing the interest on which taxes
             501      are paid, and in case any portion of the drainage district taxes on such real estate remains unpaid,
             502      it shall be the duty of the treasurer to sell only such undivided interest in said real estate as belongs
             503      to the co-owners who have not paid their portion of the taxes. In absence or default of purchaser
             504      at any such public sale of drainage district taxes, the drainage district in which taxes are delinquent
             505      shall become the purchaser and shall receive from the county treasurer the tax sale certificate of
             506      the real property on which drainage district taxes are delinquent upon the same terms upon which
             507      the county receives tax sales certificates on sales for delinquent state and county taxes and shall
             508      hold the same in the same manner as an individual may hold real property upon which state or
             509      county taxes are delinquent, subject to the same rights of redemption. In all respects, a drainage
             510      district shall be the beneficiary of taxes assessed and levied by it, provided, however, that county
             511      treasurer shall retain the costs and expense provided by law for the advertisement, sale and
             512      redemption of drainage district taxes.
             513          Section 16. Section 17A-2-605 is amended to read:
             514           17A-2-605. Organization of proposed district -- Adoption of ordinance -- Election
             515      -- Qualification of voters.
             516          After the county legislative body has made its order finally fixing and determining the
             517      boundaries of the proposed district, the district can be created by either (1) the county legislative
             518      body adopting an ordinance creating the [said] district, which ordinance shall give the name
             519      thereof, the county in which it is located and a description of the proposed area and boundaries of
             520      the district. The [said] district shall become legally existent, provided no appeal is taken [as set
             521      forth in Section 17A-2-607 ], 30 days from the date of first publication of the ordinance creating
             522      the [said] fire district or (2) the county legislative body shall give notice of an election to be held
             523      within the proposed district for the purpose of determining whether or not the same shall be


             524      organized under the provisions of this part. Such notice shall give the name of the proposed fire
             525      protection district, describe the boundaries thereof, name the precinct or precincts therein with a
             526      description of the boundaries of each, together with a designation of the polling places. The notice
             527      shall be published, previous to the time of such election, in the same manner as provided in Section
             528      17A-2-603 [above]. Such notice shall require the electors to cast ballots which shall contain the
             529      words " ____ fire protection district, yes," or "____ fire protection district, no" or words equivalent
             530      thereto. Qualified electors, under the general laws of the state, living within such district shall be
             531      entitled to vote on the question of whether the district shall or shall not be created.
             532          Section 17. Section 17A-2-812 is amended to read:
             533           17A-2-812. Ballot.
             534          The ballot used at such election shall contain the words "Shall the territory embraced within
             535      the corporate boundaries of the city of .......... become a part of the .......... metropolitan water
             536      district" (inserting the name of the city or water district as the case may be wherein such ballot
             537      shall be used and the name of the metropolitan water district as stated in the initiating ordinance)
             538      and the words "Yes" and "No" accompanied by voting squares set opposite thereto so that any
             539      elector may record [his] a vote either for or against the [propositions] proposition.
             540          Section 18. Section 17A-2-818 is amended to read:
             541           17A-2-818. Powers of incorporated districts -- Preferential right of city to purchase
             542      water.
             543          (1) (a) Any district incorporated as provided in this part may:
             544          (i) have perpetual succession;
             545          (ii) sue and be sued in all actions and proceedings and in all courts and tribunals of
             546      competent jurisdiction;
             547          (iii) adopt a corporate seal and alter it;
             548          (iv) take by grant, purchase, bequest, devise, or lease, and hold, enjoy, lease, sell,
             549      encumber, alienate, or otherwise dispose of, water, waterworks, water rights, and sources of water
             550      supply, and any real and personal property of any kind within or without the district and within and
             551      without Utah necessary or convenient to the full exercise of its powers;
             552          (v) acquire, construct, or operate, control, and use works, facilities, and means necessary
             553      or convenient to the exercise of its powers, both within and without the district and within and
             554      without Utah; and


             555          (vi) perform any and all things necessary or convenient to the full exercise of the powers
             556      granted under this section.
             557          (b) (i) Any district incorporated as provided in this part may have and exercise the power
             558      of eminent domain and, in the manner provided by law for the condemnation of private property
             559      for public use, take any property necessary to the exercise of the powers granted under this section.
             560          (ii) In any proceeding relative to the exercise of the power of eminent domain, the district
             561      has the same rights, powers, and privileges as a municipal corporation.
             562          (2) (a) Any district incorporated as provided in this part may:
             563          (i) construct and maintain works and establish and maintain facilities across or along any
             564      public street or highway and in, upon, or over any vacant public lands, that are now, or may
             565      become, the property of the state, other than those lands defined in Subsection 53C-1-103 (6); and
             566          (ii) construct works and establish and maintain facilities across any stream of water or
             567      watercourse if the district promptly restores the street or highway to its former state of usefulness
             568      as nearly as may be and does not use the street or highway in a manner that completely or
             569      unnecessarily impairs the usefulness of it.
             570          (b) (i) In the use of streets, the district is subject to the reasonable rules and regulations
             571      concerning excavations and the refilling of excavations, the relaying of pavements and the
             572      protection of the public during periods of construction of the county or municipality in which the
             573      streets are located.
             574          (ii) The county or municipality may not require the district to pay any license or permit
             575      fees, or file any bonds.
             576          (iii) The county or municipality may require the district to pay reasonable inspection fees.
             577          (3) (a) Any district incorporated as provided in this part may borrow money, incur
             578      indebtedness, and issue bonds and other obligations.
             579          (b) A district may not issue bonds that pledge the full faith and credit of the district for
             580      payment if those bonds, in the aggregate, exceed 10% of the fair market value, as defined under
             581      Section 59-2-102 , of the taxable property in the district as computed from the last equalized
             582      assessment roll for county purposes before the issuance of the bonds.
             583          (c) For purposes of Subsection (3), the district shall include the fair market value of all tax
             584      equivalent property, as defined under Section 59-3-102 , as a part of the fair market value of taxable
             585      property in the district.


             586          (4) Contracts and agreements with the United States of America, and with any water users'
             587      association or any other public, cooperative, or private entity from which the district procures
             588      water, and bonds payable solely from revenues of the district other than from the proceeds of ad
             589      valorem taxes, are not within the limitation established by this Subsection (4).
             590          (5) (a) Any district incorporated as provided in this part may fix and determine the funds
             591      required for district purposes of every nature and apportion and charge the same against the area
             592      of each city within the district by following the procedures and requirements of this Subsection (5).
             593          (b) As to the costs of all water, water rights, reservoirs, canals, conduits, and other works
             594      for which the district as a whole receives the benefit, and because of which the district is indebted
             595      or because of which the district has made payment without any previous apportionment and charge
             596      having been made, and the charges made against the district because of its ownership of stock in
             597      any water users' association, in the same proportion as the water and water rights set apart or
             598      allotted to each area bear to the total water and water rights owned or held by the district.
             599          (c) As to that portion of these funds required for operation, maintenance, and the cost of
             600      construction of distributing systems, the district shall equitably apportion these costs and determine
             601      and base them on the benefits and the relative cost of service provided by the district to each
             602      respective area.
             603          (6) (a) Any district incorporated as provided in this part may:
             604          (i) levy and collect taxes for the purposes of carrying on the operations and paying the
             605      obligations of the district; and
             606          (ii) in any year, levy a tax sufficient to cover in full any deficit that may have resulted from
             607      tax delinquencies for any preceding year.
             608          (b) (i) Taxes levied under this subsection for administering the district and maintaining
             609      and operating its properties may not exceed .0005 per dollar of taxable value of taxable property
             610      in the district.
             611          (ii) Taxes levied to pay principal of and interest on the bonds of the district, to pay
             612      indebtedness and interest owed to the United States of America, or to pay assessments or other
             613      amounts due any water users' association or other public cooperative[,] or private entity from
             614      which the district procures water are not subject to the limitation established by this Subsection
             615      [(5)] (6)(b).
             616          (c) (i) The district shall:


             617          (A) levy taxes for the payment of principal of and interest on the bonds of the district as
             618      separate and special levies for that specific purpose; and
             619          (B) apply the proceeds from them solely to the payment of this principal and interest.
             620          (ii) As separate and special levies, these levies are not subject to any priorities in favor of
             621      obligations of the district in existence at the time the bonds were issued.
             622          (d) (i) The district may not levy any of the taxes authorized by this Subsection (6) unless
             623      it has conducted, at its regular place of business, a public hearing on the purposes and necessities
             624      of the taxation.
             625          (ii) The board of directors of the district shall publish notice of the public hearing at least
             626      seven days prior to the hearing in a newspaper of general circulation published in the county or
             627      counties in which the district is located.
             628          (e) Any district incorporated as provided in this part may:
             629          (i) enter into contracts, employ and retain personal services, and employ laborers;
             630          (ii) create, establish, and maintain and elect, appoint, and employ necessary and
             631      convenient:
             632          (A) officers, attorneys, and agents convenient for the transaction of the business of the
             633      district;
             634          (B) officers and positions as necessary; and
             635          (C) employees.
             636          (7) (a) Any district incorporated as provided in this part may:
             637          (i) join with one or more other corporations, public or private, for the purpose of carrying
             638      out any of its powers;
             639          (ii) contract with any other corporation or corporations for the purposes of financing
             640      acquisitions, constructions, and operations;
             641          (iii) in the contract, obligate itself severally or jointly with the other corporations; and
             642          (iv) secure, guarantee, or become surety for the payment of any indebtedness, or the
             643      performance of any contract or other obligation that may be, or has been, incurred or entered into
             644      by any corporation in which the district has acquired shares of stock by subscription or otherwise.
             645          (b) The contracts may provide for:
             646          (i) contributions to be made by each party to them;
             647          (ii) the division and apportionment of the expenses of the acquisitions and operations;


             648          (iii) the division and apportionment of the benefits, the services, and the products from
             649      them; and
             650          (iv) an agency to effect the acquisitions and carry on these operations.
             651          (c) The contracts shall provide the powers and the methods of procedure for the agency
             652      the method by which the agency may contract.
             653          (d) The contract may contain further covenants and agreements as necessary and
             654      convenient to accomplish its purposes.
             655          (8) Any district incorporated as provided in this part may:
             656          (a) acquire water and water rights within or without Utah;
             657          (b) develop, store, and transport water;
             658          (c) subscribe for, purchase, and acquire stock in canal companies, water companies, and
             659      water users' associations;
             660          (d) provide, sell, lease, and deliver water within or outside of the district for municipal and
             661      domestic purposes, irrigation, power, milling, manufacturing, mining, and metallurgical and any
             662      and all other beneficial uses;
             663          (e) fix the rates;
             664          (f) acquire, construct, operate, and maintain any works, facilities, improvements, and
             665      property that are necessary or convenient; and
             666          (g) in the doing of all of these things:
             667          (i) obligate itself jointly with other persons and corporations, public and private; and
             668          (ii) execute and perform these obligations according to their tenor.
             669          (9) (a) Any district incorporated as provided in this part may invest any surplus money in
             670      the district treasury, including any money in any sinking fund established for the purpose of
             671      providing for the payment of the principal or interest of any bonded contract or other indebtedness
             672      or for any other purpose, not required for immediate necessities of the district, by following the
             673      procedures and requirements of Title 51, Chapter 7, State Money Management Act.
             674          (b) The district shall ensure that the sales of any bonds or treasury notes purchased and
             675      held are made in season so that the proceeds may be applied to the purposes for which the money,
             676      with which the bonds or treasury notes were originally purchased, was placed in the treasury of the
             677      district.
             678          (c) The treasurer and controller, with the approval of the attorney, shall perform the


             679      functions and duties authorized by this subsection under rules adopted by the board of directors
             680      of the district.
             681          (10) Each city, the area of which is a part or all of any district incorporated under this part,
             682      has a preferential right to purchase from the district, at rates determined by the board of directors
             683      of the district, for distribution by the city, or any public utility empowered by the city for the
             684      purpose, for domestic, municipal, and other beneficial uses within the city, a portion of the water
             685      served by the district which shall bear the same ratio to all of the water supply of the district as the
             686      total accumulation of amounts levied as taxes by the district against the property of the city which
             687      is within the area of the district shall bear to the total of all taxes levied by the district against the
             688      property in all of the cities in the areas of which are within the area of the district.
             689          Section 19. Section 17A-2-824 is amended to read:
             690           17A-2-824. Revenue indebtedness or general obligation indebtedness -- Procedure
             691      for incurring -- Terms.
             692          (1) Any district which has determined to issue bonds shall issue its bonds under Title 11,
             693      Chapter 14, the Utah Municipal Bond Act, for the acquisition through construction, purchase, or
             694      otherwise and for the improvement or extension of any properties necessary or desirable in the
             695      obtaining, treatment, and distribution of water and any other properties which the district is
             696      authorized to own under this part. Bonds may be issued or a contract indebtedness or obligation
             697      may be created (a) payable solely from the revenues of the district other than the proceeds of taxes,
             698      in which case they shall be known for purposes of this section as "revenue indebtedness", or (b)
             699      payable solely from the proceeds of taxes, in which case they shall be known for purposes of this
             700      section as "general obligation indebtedness", or (c) payable from both operating revenues and the
             701      proceeds of taxes, in which case they shall be known for purposes of this section as "general
             702      obligation revenue indebtedness." The full faith and credit of the district shall be pledged to the
             703      payment of its general obligation and general obligation revenue indebtedness, and taxes shall be
             704      levied fully sufficient to pay that part of the principal of and interest on general obligation revenue
             705      indebtedness as the revenues of the district pledged for this purpose may not be sufficient to meet.
             706      General obligation indebtedness and general obligation revenue indebtedness may be issued only
             707      after approval at an election as provided in Section 17A-2-821 . Revenue indebtedness may be
             708      similarly submitted at an election as provided in Section 17A-2-821 if considered desirable by the
             709      board of directors, but nothing in this part shall be construed to require such submission.


             710      Refunding bonds may be issued without approval at an election.
             711          (2) Revenue indebtedness and general obligation revenue indebtedness may be payable
             712      from and secured by the pledge of all or any specified part of the revenues to be derived by the
             713      district from its water supply and the operation of its water facilities and other properties. It is the
             714      duty of the board of directors to impose for water and water services rendered thereby, rates fully
             715      sufficient to carry out all undertakings contained in the resolution authorizing the bonds or the
             716      contract. The board of directors may in the resolution agree to pay the expenses of maintaining
             717      and operating the properties of the district from the proceeds of the ad valorem taxes authorized
             718      in Subsection 17A-2-818 [(1)(i)](6) and may enter into those covenants with the future holders of
             719      the bonds or the other contracting party as to the management and operation of the properties, the
             720      imposition and collection of fees and charges for water and services furnished thereby, the
             721      disposition of the fees and revenues, the issuance of future bonds or the creation of future contract
             722      indebtedness or obligations and the creation of future liens and encumbrances against the
             723      properties and the revenues from them, the carrying of insurance on the properties, the keeping of
             724      books and records, the deposit, securing, and paying out of the proceeds of the bonds, and other
             725      pertinent matters, as deemed proper by the board of directors to assure the marketability of the
             726      bonds or the making of the contract. The board of directors may undertake in the resolution to
             727      make the revenues of the properties sufficient to pay all or any specified part of the expense of the
             728      operation and maintenance of them. Covenants may be contained in the resolution with respect
             729      to the manner of the imposition and collection of water charges, and provision also may be made
             730      in it for the appointment of a receiver for the properties of the district in the event of a default by
             731      the district in carrying out the covenants and agreements contained in the resolution. Provision
             732      may also be made in the resolution for a trustee to perform those services with respect to the
             733      holding and paying out of the revenues of the district and the proceeds of the bonds, and otherwise,
             734      as may be considered advisable. Maintenance and operation costs and expenses as referred to in
             735      this section shall be construed to include any payments made by the district to the United States
             736      of America, to any water users' association, or to any other public or private entity for the cost of
             737      operating facilities used in providing water for the district.
             738          Section 20. Section 17A-2-1023 is amended to read:
             739           17A-2-1023. Technical rules of evidence not to apply.
             740          Oral evidence shall be taken on oath or affirmation. Hearings need not be conducted


             741      according to technical rules of evidence, regardless of the existence of any common law or
             742      statutory rule which might make improper the admission of such evidence over objection in a civil
             743      action. Hearsay evidence is admissible for purposes of supplementing or explaining direct
             744      evidence but shall not be sufficient in itself to support a finding unless it would be admissible over
             745      objection in a civil action.
             746          Section 21. Section 17A-2-1024 is amended to read:
             747           17A-2-1024. Record of hearing -- Review.
             748          A complete record of all proceedings and testimony before the board at the hearing shall
             749      be taken by a reporter appointed by the board. If an action is brought to review any decision of the
             750      board a transcript of testimony together with all exhibits or copies thereof introduced and the
             751      written request for hearing and other proceedings in the cause shall constitute the record on review;
             752      provided, that the board and other parties may stipulate in writing that a specified part of the
             753      evidence be certified to the court for judgment and in that case the part of the evidence specified
             754      and the stipulation specifying the evidence shall be the record on review.
             755          Section 22. Section 17A-2-1030 is amended to read:
             756           17A-2-1030. Employee rights and benefits extended under federal law to apply.
             757          The rights, benefits and other employee protective conditions and remedies of Section 13(c)
             758      of the Urban Mass Transportation Act of 1964, as amended (49 U.S.C. [1609(c)] 5333(b)), as
             759      determined by the Secretary of Labor, shall apply to the establishment and operation by the district
             760      of any public transit service or system and to any lease, contract, or other arrangement to operate
             761      such system or services. Whenever the district shall operate such system or services, or enter into
             762      any lease, contract, or other arrangement for the operation of such system or services, the district
             763      shall take such action as may be necessary to extend to employees or affected public transit service
             764      systems furnishing like services, in accordance with seniority, the first opportunity for reasonably
             765      comparable employment in any available nonsupervisory jobs in respect to such operations for
             766      which they can qualify after a reasonable training period. Such employment shall not result in any
             767      worsening of the employee's position in his former employment or any loss of wages, hours,
             768      working conditions, seniority, fringe benefits and rights and privileges pertaining thereto.
             769          Section 23. Section 17A-2-1202 is amended to read:
             770           17A-2-1202. Definitions.
             771          As used in this part:


             772          (1) "Agency" means the legislative body of a community when designated by the
             773      legislative body itself to act as a redevelopment agency.
             774          (2) "Base tax amount" means that portion of taxes that would be produced by the rate upon
             775      which the tax is levied each year by or for all taxing agencies upon the total sum of the taxable
             776      value of the taxable property in a redevelopment project area as shown upon the assessment roll
             777      used in connection with the taxation of the property by the taxing agencies, last equalized before
             778      the effective date of the:
             779          (a) ordinance approving the plan for projects for which a preliminary plan has been
             780      prepared prior to April 1, 1993, and for which all of the following have occurred prior to July 1,
             781      1993: the agency blight study has been completed, and a hearing under Section 17A-2-1221 has
             782      in good faith been commenced by the agency; or
             783          (b) the first approved project area budget for projects for which a preliminary plan has
             784      been prepared after April 1, 1993, and for which any of the following have occurred after July 1,
             785      1993: the completion of the agency blight study, and the good faith commencement of the hearing
             786      by the agency under Section 17A-2-1221 ; and
             787          (c) as adjusted by Sections 17A-2-1250.5 , 17A-2-1251 , 17A-2-1252 , and 17A-2-1253 .
             788          (3) "Blighted area" or "blight" means:
             789          (a) for projects for which a preliminary plan has been prepared prior to April 1, 1993, and
             790      for which all of the following have occurred prior to July 1, 1993: the agency blight study has been
             791      completed, and a hearing under Section 17A-2-1221 has in good faith been commenced by the
             792      agency, an area used or intended to be used for residential, commercial, industrial, or other
             793      purposes or any combination of such uses which is characterized by two or more of the following
             794      factors:
             795          (i) defective design and character of physical construction;
             796          (ii) faulty interior arrangement and exterior spacing;
             797          (iii) high density of population and overcrowding;
             798          (iv) inadequate provision for ventilation, light, sanitation, open spaces, and recreation
             799      facilities;
             800          (v) age, obsolescence, deterioration, dilapidation, mixed character, or shifting of uses;
             801          (vi) economic dislocation, deterioration, or disuse, resulting from faulty planning;
             802          (vii) subdividing and sale of lots of irregular form and shape and inadequate size for proper


             803      usefulness and development;
             804          (viii) laying out of lots in disregard of the contours and other physical characteristics of
             805      the ground and surrounding conditions;
             806          (ix) existence of inadequate streets, open spaces, and utilities; and
             807          (x) existence of lots or other areas which are subject to being submerged by water.
             808          (b) For projects for which a preliminary plan has been prepared after April 1, 1993, and
             809      for which any of the following have occurred after July 1, 1993: the completion of the agency
             810      blight study, and the good faith commencement of the hearing by the agency under Section
             811      17A-2-1221 , when a finding of blight is required, an area with buildings or improvements, used
             812      or intended to be used for residential, commercial, industrial, or other urban purposes or any
             813      combination of these uses, which:
             814          (i) contains buildings and improvements, not including out-buildings, on at least 50% of
             815      the number of parcels and the area of those parcels is at least 50% of the project area; and
             816          (ii) is unfit or unsafe to occupy or may be conducive to ill health, transmission of disease,
             817      infant mortality, juvenile delinquency, or crime because of any three or more of the following
             818      factors:
             819          (A) defective character of physical construction;
             820          (B) high density of population and overcrowding;
             821          (C) inadequate provision for ventilation, light, sanitation, and open spaces;
             822          (D) mixed character and shifting of uses which results in obsolescence, deterioration, or
             823      dilapidation;
             824          (E) economic deterioration or continued disuse;
             825          (F) lots of irregular form and shape and inadequate size for proper usefulness and
             826      development, or laying out of lots in disregard of the contours and other physical characteristics
             827      of the ground and surrounding conditions;
             828          (G) existence of inadequate streets, open spaces, and utilities;
             829          (H) existence of lots or other areas which are subject to being submerged by water; and
             830          (I) existence of any hazardous or solid waste defined as any substance defined, regulated,
             831      or listed as "hazardous substances," "hazardous materials," "hazardous wastes," "toxic waste,"
             832      "pollutant," "contaminant," or "toxic substances," or identified as hazardous to human health or
             833      the environment under state or federal law or regulation.


             834          (c) For purposes of Subsection (3)(b), if a developer involved in the project area
             835      redevelopment or economic development causes any of the factors of blight listed in Subsection
             836      (b)(ii), the developer-caused blight may not be used as one of the three required elements of blight.
             837      Notwithstanding the provisions of this section, any blight caused by owners or tenants who may
             838      become developers under the provisions of Section 17A-2-1214 shall not be subject to this
             839      Subsection (3).
             840          (4) "Bond" means any bonds, notes, interim certificates, debentures, or other obligations
             841      issued by an agency.
             842          (5) "Community" means a city, county, town, or any combination of these.
             843          (6) "Economic development" means the planning or replanning, design or redesign,
             844      development or redevelopment, construction or reconstruction, rehabilitation, business relocation
             845      or any combination of these, within all or part of a project area and the provision of office,
             846      industrial, manufacturing, warehousing, distribution, parking, public or other facilities, or
             847      improvements as may benefit the state or the community in order for a public or private employer
             848      to create additional jobs within the state.
             849          (7) "Federal government" means the United States or any of its agencies or
             850      instrumentalities.
             851          (8) "Legislative body" means the city council, city commission, county legislative body,
             852      or other legislative body of the community.
             853          (9) "Planning commission" means a city, town, or county planning commission established
             854      pursuant to law or charter.
             855          (10) "Project area" or "redevelopment project area" means an area of a community within
             856      a designated redevelopment survey area, the redevelopment of which is necessary to eliminate
             857      blight or provide economic development and which is selected by the redevelopment agency
             858      pursuant to this part.
             859          (11) "Project area budget" means, for projects for which a preliminary plan has been
             860      prepared after April 1, 1993, and for which any of the following have occurred after July 1, 1993:
             861      the completion of the agency blight study, and the good faith commencement of the hearing by the
             862      agency under Section 17A-2-1221 , a multiyear budget for the redevelopment plan prepared by the
             863      redevelopment agency showing:
             864          (a) the base year taxable value of the project area;


             865          (b) the projected tax increment of the project area, including the amount of any tax
             866      increment shared with other taxing districts which shall include:
             867          (i) the tax increment expected to be used to implement the redevelopment plan including
             868      the estimated amount of tax increment to be used for land acquisition, public, and infrastructure
             869      improvements, and loans, grants, or tax incentives to private and public entities; and
             870          (ii) the total principal amount of bonds expected to be issued by the redevelopment agency
             871      to finance the project;
             872          (c) the tax increment expected to be used to cover the cost of administering the project area
             873      plan;
             874          (d) a legal description for the portion of the project area from which tax increment will be
             875      collected pursuant to Section 17A-2-1247.5 , if the area from which tax increment is to be collected
             876      is less than the entire project area; and
             877          (e) for properties to be sold, the expected total cost of the property to the agency and the
             878      expected sales price to be paid by the purchaser.
             879          (12) "Public body" means the state, or any city, county, district, authority, or any other
             880      subdivision or public body of the state, their agencies, instrumentalities, or political subdivisions.
             881          (13) (a) "Redevelopment" means the planning, development, replanning, redesign,
             882      clearance, reconstruction, or rehabilitation, or any combination of these, of all or part of a project
             883      area, and the provision of residential, commercial, industrial, public, or other structures or spaces
             884      that are appropriate or necessary to eliminate blight in the interest of the general welfare, including
             885      recreational and other facilities incidental or appurtenant to them.
             886          (b) "Redevelopment" includes:
             887          (i) the alteration, improvement, modernization, reconstruction, or rehabilitation, or any
             888      combination of these, of existing structures in a project area;
             889          (ii) provision for open space types of use, such as streets and other public grounds and
             890      space around buildings, and public or private buildings, structures and improvements, and
             891      improvements of public or private recreation areas and other public grounds; and
             892          (iii) the replanning or redesign or original development of undeveloped areas as to which
             893      either of the following conditions exist:
             894          (A) the areas are stagnant or improperly utilized because of defective or inadequate street
             895      layout, faulty lot layout in relation to size, shape, accessibility, or usefulness, or for other causes;


             896      or
             897          (B) the areas require replanning and land assembly for reclamation or development in the
             898      interest of the general welfare.
             899          (14) "Redevelopment plan" means a plan developed by the agency and adopted by
             900      ordinance of the governing body of a community to guide and control redevelopment and
             901      economic development undertakings in a specific project area.
             902          (15) "Redevelopment survey area" or "survey area" means an area of a community
             903      designated by resolution of the legislative body or the governing body of the agency for study by
             904      the agency to determine if blight exists if redevelopment is planned, and if a redevelopment or
             905      economic development project or projects within the area are feasible.
             906          (16) "Taxes" include all levies on an ad valorem basis upon land, real property, personal
             907      property, or any other property, tangible or intangible.
             908          [(18)] (17) "Tax increment" means that portion of the levied taxes each year in excess of
             909      the base tax amount which excess amount is to be paid into a special fund of an agency.
             910          [(17)] (18) "Taxing agencies" mean the public entities, including the state, any city, county,
             911      city and county, any school district, special district, or other public corporation, which levy
             912      property taxes within the project area.
             913          Section 24. Section 17A-2-1210 is amended to read:
             914           17A-2-1210. Limits on value and size of project areas using tax increment financing
             915      without consent of local taxing agencies -- Time limits.
             916          (1) (a) A redevelopment plan adopted after April 1, 1983, and projects for which a
             917      preliminary plan has been prepared prior to April 1, 1993, and for which all of the following have
             918      occurred prior to July 1, 1993: the agency blight study has been completed, and a hearing under
             919      Section 17A-2-1221 has in good faith been commenced by the agency, may not incorporate the
             920      provisions of tax increment financing under Section 17A-2-1247 if the taxable value of the project
             921      area described in the redevelopment plan, when added to the total taxable value as shown on the
             922      last equalized assessment roll certified by the county assessor for other redevelopment project
             923      areas of the community for which an allocation of ad valorem taxes is provided, exceeds a figure
             924      at the time of the adoption of the redevelopment plan after April 1, 1983, equal to 15% of the
             925      taxable value of the locally assessed property of the community, unless the governing body of each
             926      local taxing agency which levies taxes upon the property within the proposed redevelopment


             927      project area consents to the redevelopment project area plan in writing.
             928          (b) An agency may not obtain approval of a project area budget pursuant to Section
             929      17A-2-1247.5 if the allocated incremental value of all existing project areas exceeds 10% of the
             930      total taxable value of the community, or if the projected allocated incremental value of the project
             931      area as described in the proposed project area budget, when added to the allocated incremental
             932      value of all existing project areas, exceeds 12% of the total taxable value of the community unless
             933      the agency obtains the majority consent of the taxing agency committee. The taxable value of the
             934      community shall be the total taxable value for the community as shown on the last equalized
             935      assessment roles as certified by the county assessor. The allocated incremental value shall be
             936      calculated as follows:
             937          (i) for projects for which a preliminary plan has been prepared prior to April 1, 1993, and
             938      for which all of the following have occurred prior to July 1, 1993: the agency blight study has been
             939      completed, and a hearing under Section 17A-2-1221 has in good faith been commenced by the
             940      agency, the allocated incremental value shall be the taxable value in excess of the adjusted
             941      base-year taxable value in the tax increment collection area, multiplied by the applicable
             942      percentage of tax increment to be paid to the agency pursuant to Subsection 17A-2-1247 (2)(f); and
             943          (ii) for projects for which a preliminary plan has been prepared after April 1, 1993, and
             944      for which any of the following have occurred after July 1, 1993: the completion of the agency
             945      blight study, and the good faith commencement of the hearing by the agency under Section
             946      17A-2-1221 , the allocated incremental value shall be the taxable value in excess of the adjusted
             947      base value in the tax increment collection area, multiplied by the applicable percentage of tax
             948      increment to be paid to the agency in accordance with the approved and proposed project area
             949      budgets pursuant to Subsections 17A-2-1247.5 (3), (4), and (5).
             950          (c) "Tax increment collection area" means that area of a project area from which an agency
             951      may receive an allocation of tax increment pursuant to a plan incorporating provisions of Section
             952      17A-2-1247 or an approved or a proposed project area budget incorporating the provisions of
             953      Section 17A-2-1247.5 .
             954          (d) The consent of the taxing entities required by this section may be obtained by majority
             955      consent of the taxing agency committee in accordance with Section 17A-2-1247.5 .
             956          (2) If the county assessor fails to report the value of the locally assessed property within
             957      the proposed redevelopment project area within 90 days after notice as provided in Section


             958      17A-2-1222 , the 15% limitation does not apply.
             959          (3) A redevelopment plan adopted before April 1, 1983, incorporating the provisions of
             960      tax increment financing under Section 17A-2-1247 may not be amended after April 1, 1983, to add
             961      area containing additional taxable value unless the governing body of each local taxing agency that
             962      levies taxes upon the property within the area proposed to be added consents in writing to a higher
             963      percentage of taxable value if the additional taxable value, when added to the taxable value in the
             964      project area as the taxable value existed immediately before the adoption of the amendment, would
             965      exceed the limits established in this subsection for a redevelopment plan adopted after April 1,
             966      1983.
             967          (4) (a) A project area with a redevelopment plan adopted after April 1, 1983, incorporating
             968      the provisions of tax increment financing under Sections 17A-2-1247 and 17A-2-1247.5 may not
             969      exceed 100 acres of privately owned property unless the governing body of each local taxing
             970      agency that levies taxes upon property within the proposed redevelopment project area consents
             971      in writing to exceeding the limit of [100-acre] 100 acres of privately owned property in the
             972      redevelopment plan.
             973          (b) A redevelopment plan adopted before April 1, 1983, may not be amended after April
             974      1, 1983, to add any additional area if the project area exceeds 100 acres of privately owned
             975      property, or the project area is less than 100 acres of privately owned property but would exceed
             976      100 acres of privately owned property with the additional area, unless the governing body of each
             977      local taxing agency that levies taxes upon property within the area proposed to be added consents
             978      in writing to the adding of the additional area to the project area.
             979          (5) (a) For purposes of computing under Section 17A-2-1247 the amount to be allocated
             980      to and when collected to be paid into a special fund of a redevelopment agency to pay the principal
             981      of and interest on loans, moneys advanced to, or indebtedness (whether funded, refunded,
             982      assumed, or otherwise) incurred by the redevelopment agency after April 1, 1983, from a project
             983      area with a redevelopment plan adopted before April 1, 1983, incorporating the provisions of
             984      Section 17A-2-1247 and containing more than 100 acres of privately owned property, the
             985      redevelopment agency may be paid only that portion of that amount levied each year from 100
             986      acres selected by the redevelopment agency from the entire project area. The amount allocated to
             987      and when collected to be paid into a special fund of a redevelopment agency under Subsections
             988      17A-2-1247 (2)(c) and (2)(e) from the 100 acres of privately owned property shall be that portion


             989      of the levied taxes each year in excess of the amount from the 100 acres allocated to and when
             990      collected paid to the taxing agencies under Subsection 17A-2-1247 (2)(a). The 100 acres of
             991      privately owned property shall be contiguous.
             992          (b) The 100-acre limit of privately owned property established in this Subsection (5) does
             993      not apply to loans, moneys advanced to, or indebtedness, whether funded, refunded, assumed, or
             994      otherwise, incurred by redevelopment agencies before April 1, 1983, in projects with
             995      redevelopment plans adopted before April 1, 1983. The 100-acre limit of privately owned property
             996      does not apply if the governing body of each local taxing agency which levies taxes upon the
             997      property within the project area consents in writing to exceeding the 100-acre limit of privately
             998      owned property.
             999          (c) Each agency shall establish by resolution adopted on or before August 1, 1983, which
             1000      areas in the project area shall be included in the 100 acres of privately owned property to be used
             1001      for the purposes of computing the amount of tax increment to be paid to the agency. The
             1002      resolution shall also contain a legal description of the areas included in the 100 acres. A copy of
             1003      the resolution shall be filed with the county auditor and the State Tax Commission within 30 days
             1004      of adoption of the resolution. After the resolution has been adopted no person, entity, or public
             1005      body may contest the regularity, formality, or legality of the establishment of the 100 acres or of
             1006      the resolution for any cause.
             1007          (6) Each project area with a redevelopment plan adopted before April 1, 1983, that exceeds
             1008      590 acres of privately owned property shall be reduced to 590 acres of privately owned property
             1009      unless the governing body of each local taxing agency that levies taxes upon property within the
             1010      project area consents in writing to the project area not being reduced. Each agency shall establish
             1011      by resolution adopted on or before August 1, 1983, which areas in the project area shall be
             1012      included in the 590 acres of privately owned property to be used for the purposes of reducing to
             1013      the 590 acre limit of privately owned property. The resolution shall also contain a legal description
             1014      of the areas included in the 590 acres of privately owned property. A copy of the resolution shall
             1015      be filed with the county auditor and the State Tax Commission within 30 days of adoption of the
             1016      resolution. After the resolution has been adopted no person, entity, or public body may contest the
             1017      regularity, formality, or legality of the reduction to the 590 acre limit of privately owned property
             1018      or of the resolution for any cause.
             1019          (7) A redevelopment plan adopted after April 1, 1983, and redevelopment projects for


             1020      which a preliminary plan has been prepared prior to April 1, 1993, and for which all of the
             1021      following have occurred prior to July 1, 1993: the agency blight study has been completed, and a
             1022      hearing under Section 17A-2-1221 has in good faith been commenced by the agency, shall contain:
             1023          (a) a time limit not to exceed seven years from the date of the approval of the plan after
             1024      which the agency may not commence acquisition of property through eminent domain;
             1025          (b) a time limit not to exceed 15 years from the date of the approval of the plan after which
             1026      no bonds may be issued for redevelopment projects; and
             1027          (c) a time limit not to exceed 32 years from the date of the approval of the plan after which
             1028      no tax increment from the project area may be allocated to or used by the agency.
             1029          (8) The time limits established in Subsections (5)(a), (b), and (c) shall apply to
             1030      redevelopment plans adopted before April 1, 1983, but shall be measured from April 1, 1983.
             1031          (9) Notwithstanding the provisions of Subsections (7) and (8) or of any corresponding
             1032      provisions of a redevelopment plan, an agency may issue bonds for the purpose of refunding bonds
             1033      previously issued for redevelopment projects (or to refund bonds issued for redevelopment
             1034      projects) without regard to the 15-year limit provided therein.
             1035          Section 25. Section 17A-2-1302 is amended to read:
             1036           17A-2-1302. Definitions.
             1037          As used in this part:
             1038          (1) "County" means a county of this state and includes any such county regardless of the
             1039      form of government under which it is operating.
             1040          [(7)] (2) "Facility" or "facilities" means any structure, building, system, land, water right,
             1041      and other real and personal property required to provide any service authorized by Section
             1042      17A-2-1304 , including, without limitation, all related and appurtenant easements and
             1043      rights-of-way, improvements, utilities, landscaping, sidewalks, roads, curbs and gutters, and
             1044      equipment and furnishings.
             1045          (3) "Governing authority" means the board or body, however designated, in which the
             1046      general legislative powers of a county, municipality, or improvement district are vested and
             1047      includes the board of commissioners of a county or a city of the first or second class, the city
             1048      council of a city of the third class, the town council of a town, and the board of trustees of an
             1049      improvement district.
             1050          [(6)] (4) "Guaranteed bonds" mean bonds the annual debt service on which is or will be


             1051      guaranteed by one or more taxpayers owning property within the boundaries of the service district.
             1052          [(2)] (5) "Improvement district" means an improvement district established under Chapter
             1053      2, Part 3.
             1054          [(4)] (6) "Municipality" means a city or town of this state.
             1055          [(5)] (7) "Service district" means a special service district established in the manner
             1056      provided by this part under Article XIV, Section 8 of the Constitution of Utah.
             1057          Section 26. Section 17A-2-1411 is amended to read:
             1058           17A-2-1411. Quorum.
             1059          A majority of the directors shall constitute a quorum, and a concurrence of a majority of
             1060      those in attendance, in any matter, within their duties, shall be sufficient for its determination,
             1061      except as otherwise herein provided.
             1062          Section 27. Section 17A-2-1425 is amended to read:
             1063           17A-2-1425. Board may sell or lease water to irrigation districts -- Levy and
             1064      collection of special assessments under class C.
             1065          To levy and collect special assessments upon lands under class C as herein provided, the
             1066      board shall make an allotment of water to each of the petitioning irrigation districts within the
             1067      district in the manner as hereinafter provided in such quantity as will in the judgment of the board,
             1068      when added to the present supply of water of such irrigation district, make an adequate supply of
             1069      water for such irrigation district, and shall fix and determine the rates per acre-foot or other unit
             1070      of measurement, the service, turnout, connection, distribution system charges or other charges and
             1071      terms at and upon which water shall be sold, leased or otherwise disposed of to such irrigation
             1072      district; provided, however, that such rates and charges shall be equitable although not necessarily
             1073      equal or uniform for like classes of services throughout the district. In the event any irrigation
             1074      district shall desire to purchase, lease, or otherwise obtain the beneficial use of waters of the
             1075      district, the board of such irrigation district shall by resolution authorize and direct its president
             1076      and secretary to petition the board for an allotment of water, upon terms prescribed by the board,
             1077      which petition shall contain, inter alia, the following:
             1078          (1) Name of irrigation district.
             1079          (2) Quantity of water to be purchased or otherwise acquired.
             1080          (3) Price per acre-foot or other unit of measurement and the amount of any service,
             1081      connection, distribution system charge or other charges to be paid.


             1082          (4) Whether payments are to be made in cash or annual installments.
             1083          (5) Agreement by such irrigation district to make payments for the beneficial use of such
             1084      water, together with annual maintenance and operating charges, and to be bound by the provision
             1085      of this part and the rules and regulations of the board.
             1086          The secretary of the board shall cause notice of the filing of such petition to be given and
             1087      published, which notice shall state the filing of such petition and giving notice to all persons
             1088      interested to appear at the office of the board at a time named in said notice and show cause in
             1089      writing, if any they have, why the petition should not be granted. The board at the time and place
             1090      mentioned in said notice, or at such time or times at which the hearing of said petition may be
             1091      adjourned, shall proceed to hear the petition and objections thereto, presented, in writing, by any
             1092      person showing cause as aforesaid why said petition should not be granted. The failure of any
             1093      person interested to show cause in writing, as aforesaid, shall be deemed and taken as an assent
             1094      on his part to the granting of said petition. The board may, at its discretion, accept or reject the
             1095      said petition, but if it deems it for the best interest of the district that the said petition shall be
             1096      granted, shall enter an order to that effect granting the said petition, and from and after such order,
             1097      the irrigation district, and/or persons therein shall be deemed to have purchased, leased, or
             1098      otherwise acquired the beneficial use of water as set forth in said order. If said petition is granted,
             1099      the board shall, in each year, determine the amount of money necessary to be raised by special
             1100      assessment on lands within such irrigation district and shall determine whether such special
             1101      assessment shall be levied by the district or by the irrigation district. If the board determines that
             1102      such assessments shall be levied by the district, it shall certify to the county auditor of the county
             1103      in which the lands of such irrigation district are located the amount of the assessment, plus a fair
             1104      proportionate amount of the estimated operating and maintenance charges for the next succeeding
             1105      year on each tract of land on or before the 1st day of July of each year, and such county auditor
             1106      shall extend the amount of such special assessment, plus said operating and maintenance charges
             1107      on the tax roll as a special assessment against the lands on which said special assessment is made.
             1108      If the board determines that such assessments shall be levied by the irrigation district, the district
             1109      shall make a contract with the irrigation district which shall provide among other things for the
             1110      annual payment to the district of an amount to be obtained from the levy by the irrigation district
             1111      of annual assessments in accordance with the irrigation district law. If a subdistrict or subdistricts
             1112      are organized as herein provided, assessments of special benefits shall be made, spread on the tax


             1113      rolls, and collected in the same manner as herein provided in the case of irrigation districts.
             1114          Section 28. Section 17A-2-1437 is amended to read:
             1115           17A-2-1437. Change of boundaries -- Petitions for and against inclusion within
             1116      district -- Hearing -- Petition protesting inclusion -- Hearing -- Appeal -- Annexation --
             1117      Hearings -- Objections -- Order of inclusion -- Findings and decrees -- Appeal.
             1118          (1) The boundaries of any district organized under this part may be changed as provided
             1119      by this section, but the change of boundaries of the district shall not impair or affect:
             1120          (a) its organization;
             1121          (b) its rights in or to property;
             1122          (c) any of its other rights or privileges; or
             1123          (d) any contract, obligation, lien, or charge for or upon which it might be liable or
             1124      chargeable had the change of boundaries not been made.
             1125          (2) (a) (i) The owners of lands which are either contiguous or noncontiguous to the district
             1126      and to each other may file a written petition with the board requesting that their lands be included
             1127      in the district. The petition shall contain:
             1128          (A) a description of the tracts or body of land sought to be included; and
             1129          (B) the signatures, acknowledged in the same form as conveyances of real estate, of the
             1130      owners of the lands.
             1131          (ii) A petition filed in this form will be considered to give assent of the petitioners to the
             1132      inclusion within the district of the lands described in the petition.
             1133          (b) The board shall, within 90 days after the filing of the petition, set and convene a
             1134      hearing to consider the petition and all objections.
             1135          (c) The secretary of the board shall cause notice of the filing of the petition to be given and
             1136      published in the county in which the lands are situated. This notice shall state:
             1137          (i) the names of petitioners;
             1138          (ii) a description of lands mentioned;
             1139          (iii) the request of the petitioners; and
             1140          (iv) that all persons interested must appear at the office of the board at the time named in
             1141      the notice and state in writing why the petition should not be granted.
             1142          (d) The board shall, at the appropriate time, proceed to hear the petition and review the
             1143      written objections to the petition. The failure of any person to show cause, in writing, shall be


             1144      considered to be his assent to the inclusion of these lands within the district.
             1145          (e) If any of the lands proposed for inclusion in the district are located within a
             1146      municipality, the petitioners shall, before the date of the hearing set by the board, obtain from the
             1147      municipality's governing body its written consent to the inclusion of the land located within the
             1148      municipality.
             1149          (f) (i) If any of the lands proposed for inclusion in the district are located within a
             1150      municipality's proposed municipal expansion area established by the municipality's annexation
             1151      policy declaration adopted under Title 10, Chapter 2, Part 4, [Extension of Corporate Limits -
             1152      Local Boundary Commissions] Annexation, the petitioners shall, before the date of the hearing set
             1153      by the board, obtain from that municipality's governing body its written consent to the inclusion
             1154      of the land located within the area proposed for municipal expansion.
             1155          (ii) Subsection (2)(f)(i) does not apply if the land proposed for inclusion in the district is
             1156      located within the proposed municipal expansion area of more than one municipality in a county
             1157      of the first class.
             1158          (g) If any of the lands proposed for inclusion in the district are located within a county not
             1159      previously containing any part of the district, the petitioners shall, before the date of the hearing
             1160      set by the board, obtain from the county's legislative body its written consent to the inclusion of
             1161      the land located within that county.
             1162          (h) If any of the lands proposed for inclusion in the district are located within the
             1163      unincorporated portion of a county, the petitioners shall, before the date of the hearing set by the
             1164      board, obtain from the county's legislative body its written consent to the inclusion of that land.
             1165          (i) If the petition is granted, the board shall make an order to that effect and file the petition
             1166      with the clerk of the court and upon order of the court the lands shall be included in the district.
             1167          (3) (a) In addition to the method provided in Subsection (2), additional areas may be
             1168      included in a district by petition as described in this subsection. A written petition may be filed to
             1169      include:
             1170          (i) irrigated lands;
             1171          (ii) nonirrigated lands;
             1172          (iii) land in towns and cities;
             1173          (iv) other lands; or
             1174          (v) any combination of lands under this subsection. These lands may be contiguous or


             1175      noncontiguous to the district and to each other.
             1176          (b) The petition must:
             1177          (i) be filed in the district court of the county in which the petition for organization of the
             1178      original district was filed;
             1179          (ii) include the signatures, acknowledged in the same form as conveyances of real estate,
             1180      of not fewer than 20% or 500, whichever is the lesser, of the owners of irrigated lands in the area,
             1181      but outside the corporate limits of a city or town;
             1182          (iii) include the signatures, acknowledged in the same form as conveyances of real estate,
             1183      of not fewer than 5% or 100, whichever is the lesser, of the owners of nonirrigated lands and lands
             1184      within the incorporated limits of a city or town, which are within the area specified in the petition;
             1185          (iv) list a description of each tract of land owned by the signer opposite the name of the
             1186      signer, with an indication that each tract, together with its improvements, has a taxable value of
             1187      not less than $300; and
             1188          (v) set forth:
             1189          (A) a general description of the territory in the area sought to be included in the district;
             1190          (B) the name of the district in which it is sought to be included;
             1191          (C) the terms and conditions upon which inclusion is sought;
             1192          (D) a statement that the property sought to be included will be benefited by the
             1193      accomplishment of the purposes for which the original district was formed; and
             1194          (E) a request for inclusion of the area in the district.
             1195          (c) No petition with the requisite signatures shall be declared null and void because of
             1196      alleged defects, but the court may permit the petition to be amended to conform to the facts by
             1197      correcting any errors. However, similar petitions or duplicate copies of the petition for the
             1198      inclusion of the same area may be filed and shall together be regarded as one petition. All petitions
             1199      filed prior to the hearing on the first petition shall be considered by the court the same as though
             1200      filed with the first petition. In determining whether the requisite number of landowners has signed
             1201      the petition, the names as they appear upon the tax roll shall be prima facie evidence of their
             1202      ownership.
             1203          (d) At the time of filing the petition or at any time before, and prior to the time of hearing
             1204      on the petition, a bond shall be filed, with security approved by the court sufficient to pay all
             1205      expenses connected with the proceedings in the case. If at any time during the proceeding the court


             1206      determines that the first bond is insufficient, the court may require that an additional bond be
             1207      obtained within ten days following the court's request. If the petitioner fails to obtain a bond, the
             1208      petition shall be dismissed.
             1209          (e) Immediately after the filing of the petition, the district court of the county where the
             1210      petition is filed shall fix a place and time between 60 and 90 days after the petition is filed for a
             1211      hearing. The clerk of the court shall then publish notice of the pendency of the petition and of the
             1212      time and place of hearing. The clerk of the court shall also mail a copy of the notice by registered
             1213      mail to:
             1214          (i) the board of directors of the district;
             1215          (ii) the county legislative body of each of the counties with land within the area proposed
             1216      to be included in the district; and
             1217          (iii) the governing body of each of the cities or towns having territory within the area
             1218      proposed to be included within the district.
             1219          (f) If any of the lands proposed for inclusion in the district are located within a
             1220      municipality, the petitioners shall, before the date of the hearing set by the district court, obtain
             1221      from the municipality's governing body its written consent to the inclusion of the land located
             1222      within the municipality.
             1223          (g) (i) If any of the lands proposed for inclusion in the district are located within a
             1224      municipality's proposed municipal expansion area established by the municipality's annexation
             1225      policy declaration adopted under Title 10, Chapter 2, Part 4, [Extension of Corporate Limits -
             1226      Local Boundary Commissions] Annexation, the petitioners shall, before the date of the hearing set
             1227      by the board, obtain from that municipality's governing body its written consent to the inclusion
             1228      of the land located within the area proposed for municipal expansion.
             1229          (ii) Subsection (3)(g)(i) does not apply if the land proposed for inclusion in the district is
             1230      located within the proposed municipal expansion area of more than one municipality in a county
             1231      of the first class.
             1232          (h) If any of the lands proposed for inclusion in the district are located within a county not
             1233      previously containing any part of the district, the petitioners shall, before the date of the hearing
             1234      set by the district court, obtain from the county's legislative body its written consent to the
             1235      inclusion of the land located within that county.
             1236          (i) If any of the lands proposed for inclusion in the district are located within the


             1237      unincorporated portion of a county, the petitioners shall, before the date of the hearing set by the
             1238      district court, obtain from the county's legislative body its written consent to the inclusion of that
             1239      land.
             1240          (j) After the filing of a petition for inclusion of an additional area and at least 30 days prior
             1241      to the time fixed by the court for the hearing on the petition, a petition protesting the inclusion of
             1242      the lands within the district may be filed in the clerk's office of the court where the proceeding for
             1243      inclusion is pending. The protest petition must contain:
             1244          (i) the signatures, acknowledged in the same form as conveyances of real estate, of at least:
             1245          (A) 35% of the owners of irrigated lands in the area sought to be included, but not within
             1246      the incorporated limits of a city or town; and
             1247          (B) 20% of the owners of nonirrigated lands and lands within the incorporated limits of
             1248      a city or town within the area proposed to be included within the district; and
             1249          (ii) a description of each tract of land opposite the name of the signer, with an indication
             1250      that each tract, together with its improvements, has an assessed value of at least $300.
             1251          (k) A landowner may protest if he:
             1252          (i) did not sign the petition for inclusion; and
             1253          (ii) owns land, including improvements thereon, which had a taxable value of at least $300
             1254      as shown by the last preceding assessment.
             1255          (l) If a petitioner signs the petition both as owner of irrigated and nonirrigated land, his
             1256      name counts only as an owner of irrigated lands.
             1257          (m) On the day set for the hearing on the original petition, if it appears to the court that the
             1258      protesting petition does not meet the requirements of Subsection (3)(j), the court shall dismiss the
             1259      protesting petition and proceed with the original hearing as provided in this section. If the court
             1260      finds from the evidence that the protesting petition does qualify, the court shall dismiss the original
             1261      petition for inclusion. The finding of the court upon the question of valuation, the genuineness of
             1262      the signatures, and all matters of law and fact incident to this determination shall be final and
             1263      conclusive on all parties in interest whether appearing or not, unless within 30 days from entry of
             1264      the order of dismissal an appeal is taken to the Supreme Court.
             1265          (n) (i) Any owner of real property in the proposed area who did not individually sign a
             1266      petition for the inclusion, but who desires to object to the inclusion, may, on or before ten days
             1267      prior to the date set for the cause to be heard, file an objection to the inclusion. This objection shall


             1268      be heard by the court as an advanced case without unnecessary delay.
             1269          (ii) An owner of irrigated lands may file a petition asking to have his irrigated lands
             1270      excluded from the inclusion pursuant to the requirements of Subsection (3)(n)(i). This petition
             1271      shall be heard by the district court on the date set for the hearing of the petition for inclusion of the
             1272      area and the district court shall exclude these irrigated lands from the area proposed for inclusion
             1273      within the district.
             1274          (o) If it appears at the hearing that a petition for the inclusion has been signed and
             1275      presented as provided in Subsections (a) and (b), that each written consent required by Subsections
             1276      (3)(f), (g),(h), and (i) has been obtained, that the allegations of the petition are true, and that no
             1277      protesting petition has been filed, or if filed has been dismissed as provided in Subsection (3)(m),
             1278      the court shall:
             1279          (i) adjudicate all questions of jurisdiction;
             1280          (ii) find that the property described in the petition will, if included, be benefited by the
             1281      accomplishment of the purposes for which the original district was formed;
             1282          (iii) declare the area included in the district;
             1283          (iv) declare whether the area is annexed to an existing division, or constitutes a separate
             1284      division; and
             1285          (v) declare whether the area can be properly represented by existing directors or whether
             1286      the number of directors shall be increased to provide for representation of the area annexed.
             1287      However, prior to the entry of its decree including such area within the district, the court shall
             1288      obtain the verified consent of the board of directors of the district to the inclusion of such area.
             1289          (p) If the court finds that the petition for inclusion has not been signed and presented
             1290      pursuant to this section, that any written consent required by Subsections (3)(f), (g), (h), and (i) has
             1291      not been obtained, or that the material facts are not as set forth in the petition filed, it shall dismiss
             1292      the proceedings and adjudge the costs against the signers of the petition in such proportion as it
             1293      considers just and equitable. An appeal to the Supreme Court shall lie from an order dismissing
             1294      the proceeding. Nothing in this part shall be construed to prevent the filing of a subsequent petition
             1295      or petitions for similar purposes, and the right to renew such proceeding is expressly granted.
             1296          (4) (a) If lands are annexed into a public corporation which corporation is already part of
             1297      the district described in this part and these annexed lands are not located within the district's
             1298      boundaries, the board may make a finding that these lands are not part of the district, and that these


             1299      lands are or may be benefited from the service provided by the district. Upon making this finding,
             1300      the board shall set a time and place for a public hearing to hear objections as to why these lands
             1301      should not be annexed and included within the district. The secretary of the board shall cause
             1302      notice of the time and place of the hearing to consider the inclusion of the lands within the district
             1303      to be given and published in the county in which the lands are situated. The notice shall:
             1304          (i) state a general description of the lands;
             1305          (ii) state that the lands are being considered for inclusion within the district; and
             1306          (iii) give notice to all interested persons to appear at the time and place named in the notice
             1307      and show cause, in writing, as to why the lands should not be included within the district. The
             1308      secretary shall mail a copy of the notice by registered mail to the governing body of the public
             1309      corporation and to the landowners.
             1310          (b) Before the date set for the hearing, the board shall obtain the written consent of the
             1311      public corporation's governing body to the inclusion of the lands into the district.
             1312          (c) The board shall, at the time and place named in the notice or at any time at which the
             1313      hearing may be adjourned, proceed to hear all objections to the inclusion of the lands within the
             1314      district. The failure of any interested person to appear or show cause, in writing, shall be taken as
             1315      an assent on his part to the inclusion of the lands within the district. If, after hearing all objections
             1316      to the inclusion of the land within the district, the board has obtained the consent of the public
             1317      corporation's governing body as required in Subsection (4)(b) and determines that the lands will
             1318      be benefited by inclusion within the district, the board shall make an order to that effect. Upon
             1319      filing the order with the clerk of the court and upon order of the court, the lands shall be included
             1320      in the district.
             1321          (d) A finding by the board that the lands will not be benefited by inclusion within the
             1322      district shall not preclude the board at any subsequent date from finding that changed conditions
             1323      or circumstances now benefit the lands. After making this finding the board may renew the
             1324      proceedings for inclusion of these lands in whole or in part and find that the lands will be benefited
             1325      by inclusion in the district and make an order to that effect. Upon filing the order with the clerk
             1326      of the court and upon order of the court, the lands shall be included in the district.
             1327          (e) If the board finds that any portion of land to be annexed into the district is presently
             1328      receiving water from another public water system, the board shall exclude that portion of land from
             1329      the land to be annexed into the district.


             1330          (5) Upon the entry of the decree, the clerk of the court shall transmit to the Division of
             1331      Corporations and Commercial Code and the county recorder in each of the counties having lands
             1332      in the area, copies of the findings and decrees of the court. The findings and decrees shall be filed
             1333      with the Division of Corporations and Commercial Code pursuant to the general laws concerning
             1334      corporations. Copies shall also be filed in the office of the county recorder in each county in which
             1335      the district is located where they will become permanent records. The recorder in each county shall
             1336      receive the fee designated by the county legislative body for filing and preservation. The Office
             1337      of the Lieutenant Governor shall receive fees as may be provided by law for like services in similar
             1338      cases.
             1339          (6) If an order is entered establishing the inclusion of the area into the district, such order
             1340      shall be final unless within 30 days an appeal is taken to the Supreme Court. The entry of a final
             1341      order shall conclusively establish the inclusion of the area against all persons, except that the state
             1342      may attack the order in an action in the nature of a writ of quo warranto, commenced by the
             1343      attorney general within three months after the decree declaring the area included. The inclusion
             1344      of the area shall not be directly or collaterally questioned in any suit, action, or proceeding, except
             1345      as expressly authorized.
             1346          (7) Any area included in a district pursuant to this part shall be subject to taxes and
             1347      assessments levied for the payment of indebtedness of the district which was outstanding at the
             1348      time of the entry of the order for inclusion, and for the payment of indebtedness thereafter incurred
             1349      as if the area were a part of the district as originally established.
             1350          (8) The boundaries of any subdistrict may be changed in the manner provided in this part
             1351      for the change of the boundaries of districts.
             1352          Section 29. Section 17A-2-1444 is amended to read:
             1353           17A-2-1444. Hearings to be advanced.
             1354          All cases in which there may arise a question of the validity of the organization of a water
             1355      conservancy district[,] or a question of the validity of any proceeding under this part, the question
             1356      shall be advanced as a matter of immediate public interest and concern, and heard at the earliest
             1357      practicable moment. The courts shall be open at all times for the purposes of this part.
             1358          Section 30. Section 17A-2-1512 is amended to read:
             1359           17A-2-1512. Expense reimbursement.
             1360          A commissioner is entitled to the necessary expenses, including traveling expenses,


             1361      incurred in the discharge of official duties.
             1362          Section 31. Section 17A-2-1704 is amended to read:
             1363           17A-2-1704. Creation of authority -- Members.
             1364          (1) (a) The authority comprises ten members. If the requirements of Section 17A-2-1703
             1365      are met, the governor shall, with the advice and consent of the Senate, appoint six members of the
             1366      authority from the public-at-large.
             1367          (b) The remaining four members of the authority are:
             1368          (i) the executive director of the Department of Environmental Quality;
             1369          (ii) the executive director of the Department of Community and Economic Development;
             1370          (iii) the executive director of the Department of Natural Resources; and
             1371          (iv) the executive director of the Department of Transportation.
             1372          (2) Public-at-large members, no more than three of whom shall be from the same political
             1373      party, shall be appointed to six-year terms of office, subject to removal by the governor with or
             1374      without cause.
             1375          (3) The governor shall name one public-at-large member as chairman of the authority
             1376      responsible for the call and conduct of authority meetings.
             1377          (4) The authority may elect other officers as necessary.
             1378          (5) Five members of the authority present at a properly noticed meeting constitute a
             1379      quorum for the transaction of official authority business.
             1380          (6) Public-at-large members are entitled to per diem and expenses[,] for each day devoted
             1381      to authority business at the rates established by the director of the Division of Finance under
             1382      Sections 63A-3-106 and 63A-3-107 .
             1383          Section 32. Section 17A-2-1709 is amended to read:
             1384           17A-2-1709. Security for obligations -- Provisions of security instruments.
             1385          (1) The principal and interest on any obligation issued pursuant to this part shall be secured
             1386      by:
             1387          (a) a pledge and assignment of the proceeds earned by the facility built and acquired with
             1388      the proceeds of the obligations;
             1389          (b) a mortgage or trust deed on the facility built and acquired with the proceeds from the
             1390      obligations; and
             1391          (c) such other security on the facility as is deemed most advantageous by the authority.


             1392          (2) Obligations authorized for issuance under this part and any mortgage or other security
             1393      given to secure such obligations may contain any provisions customarily contained in security
             1394      instruments, including, but not limited to:
             1395          (a) the fixing and collection of fees from the facility;
             1396          (b) the maintenance of insurance on the facility;
             1397          (c) the creation and maintenance of special funds to receive revenues earned by the facility;
             1398      and
             1399          (d) the rights and remedies available to obligation holders in the event of default.
             1400          (3) All mortgages, trust deeds, security agreements, or trust indentures on a facility shall
             1401      provide, in the event of foreclosure, that no deficiency judgment may be entered against the
             1402      authority, the state, or any of the state's political subdivisions.
             1403          (4) Any mortgage or other security instrument securing such obligations may provide that
             1404      in the event of a default in the payment of principal or interest or in the performance of any
             1405      agreement, that payment or performance may be enforced by the appointment of a receiver with
             1406      power to charge and collect fees and to apply the revenues from the facility in accordance with the
             1407      provisions of the security instrument.
             1408          (5) Any mortgage or other security instrument made pursuant to this part may also provide
             1409      that in the event of default in payment or breach of a condition, that the mortgage may be
             1410      foreclosed or otherwise satisfied in any manner permitted by law, and that the trustee under the
             1411      mortgage or the holder of any obligation secured by such mortgage may, if the highest bidder,
             1412      purchase the security at foreclosure sale.
             1413          Section 33. Section 17A-2-1803 is amended to read:
             1414           17A-2-1803. Area -- Procedures -- Appeals.
             1415          (1) A regional service area may consist of:
             1416          (a) all or part of any county; and
             1417          (b) areas that are not contiguous.
             1418          (2) (a) Only one regional service area may be located in a county.
             1419          (b) (i) A county service area may not reorganize as a regional service area on or after May
             1420      4, 1998.
             1421          (ii) No regional service area may be created on or after May 4, 1998.
             1422          (3) The adoption of this part does not affect the existence, operation, or establishment of


             1423      any county service area operating under Title 17A, Chapter 2, Part 4, County Service Areas.
             1424          (4) After it is reorganized, the county service area shall be a regional service area subject
             1425      to this part containing all of the territory of the county service area, and not subject to Chapter 2,
             1426      Part 4.
             1427          (5) (a) Beginning on the effective date of the resolution reorganizing the county service
             1428      area as a regional service area, the regional service area is reorganized with all the rights,
             1429      privileges, [and] powers, and limitations under this part.
             1430          (b) (i) Any outstanding bonds, notes, contracts, or other obligations of any former county
             1431      service area shall be the bonds, notes, contracts, and obligations of the new regional service area
             1432      which is taking its place with like effect as if issued or entered into by the regional service area.
             1433          (ii) Any election authorizing the issuance of bonds of the former county service area shall
             1434      have the same effect as a bond election held under this part.
             1435          (c) Taxes at the most recent rate levied by the former county service area may continue to
             1436      be levied by the regional service area.
             1437          (d) All assets of the former county service area, including both real and personal property,
             1438      shall be the property of the regional service area with the same effect as if originally constructed,
             1439      purchased, leased, or otherwise acquired by the regional service area and the contracts of the
             1440      former county service area shall be the contracts of the regional service area.
             1441          (e) The employees, officers, and agents of the former county service area shall be the
             1442      employees, officers, and agents of the regional service area and all employee benefits, including
             1443      pension plans shall carry forward to the regional service area.
             1444          (f) Until amended, the bylaws, rules, regulations, policies, and procedures of the former
             1445      county service area shall be the bylaws, rules, regulations, policies, and procedures of the regional
             1446      service area.
             1447          (6) The conversion of a county service area to a regional service area may not impair or
             1448      affect any existing contract, obligation, lien, charge, or bond for or upon which the county service
             1449      area might be liable or chargeable had the conversion not taken place.
             1450          (7) (a) Any aggrieved person may appeal the decision of the governing authority of the
             1451      county service area to reorganize the county service area as a regional service area to the district
             1452      court in the county where the regional service area is located.
             1453          (b) If that appeal is not filed within 30 days after the effective date of the resolution


             1454      reorganizing the county service area as a regional service area, the reorganization shall be final and
             1455      conclusive.
             1456          (c) In the appeal, the district court shall affirm the reorganization unless the person
             1457      challenging the reorganization establishes by clear and convincing evidence that:
             1458          (i) the county service area did not qualify to reorganize as a regional service area under the
             1459      criteria specified in this section; or
             1460          (ii) the board of trustees of the county service area substantially failed to follow the
             1461      procedural requirements of this section in reorganizing the county service area as a regional service
             1462      area.
             1463          Section 34. Section 17A-2-1805 is amended to read:
             1464           17A-2-1805. Body corporate -- Authority.
             1465          (1) Beginning on the effective date of the resolution reorganizing a county service area as
             1466      a regional service area, the regional service area shall be a body corporate and politic and a quasi-
             1467      municipal public corporation.
             1468          (2) The regional service area, acting through its board of trustees, shall, without in any way
             1469      limiting the powers granted to regional service areas by the provisions of this part, have the
             1470      following authority:
             1471          (a) The right to sue and be sued.
             1472          (b) The power to enter into contracts to carry out the functions of the regional service area,
             1473      including the power to enter into contracts with the United States of America and any of its
             1474      agencies, municipal corporations, counties, or other public corporations, county service areas or
             1475      districts, or any other political subdivision of the state, including any entity created under [the]
             1476      Title 11, Chapter 13, Interlocal Cooperation Act, (and any county, municipal or other public
             1477      corporation, or political subdivision shall have the power to enter into contracts with regional
             1478      service areas organized under this part).
             1479          (c) The regional service area, the county, and any municipality lying in whole or in part
             1480      within the boundaries of the regional service area, are encouraged to coordinate and cooperate with
             1481      one another regarding such matters as traffic control and planning and zoning approvals in the
             1482      vicinity of facilities owned or operated by the regional service area, signs approaching or on
             1483      property owned or operated by the regional service area, approvals for mass gatherings for special
             1484      events, and security and crowd control at facilities owned or operated by the regional service area.


             1485      This coordination and cooperation may take the form of one or more interlocal cooperation
             1486      agreements. Any bond obligations of a legal or administrative entity created under the Utah
             1487      Interlocal Cooperation Act with which a regional service area may contract as provided in this
             1488      section may not be counted as an obligation of the regional service area for purposes of this part.
             1489          (d) The power to impose and collect charges or fees for any commodities, services, or
             1490      facilities afforded by the regional service area to its customers and to pledge all or any part of the
             1491      revenues so derived to the payment of any bonds of the regional service area, whether the bonds
             1492      are issued as revenue bonds or as general obligations of the regional service area. Where revenue
             1493      bonds are issued payable solely from the revenues of commodities, services, and facilities, the fees
             1494      and charges imposed shall always be sufficient to carry out the provisions of the resolution
             1495      authorizing the bonds. The board of trustees may act and adopt the regulations necessary to assure
             1496      the collection and enforcement of all fees and charges imposed. Any of the commodities, services,
             1497      and facilities furnished to a consumer by the regional service area may be suspended if any fees
             1498      and charges due the regional service area are not paid in full when due. Higher fees may be
             1499      charged for services provided to participants who reside outside the boundaries of the regional
             1500      service area.
             1501          (e) The power to sell, lease, mortgage, encumber, or otherwise dispose of any properties
             1502      owned by the regional service area under the terms and conditions approved by the board of
             1503      trustees.
             1504          (f) The power to own any property or property interests approved by the board of trustees
             1505      to carry out the purposes of the regional service area and the power to acquire the same by
             1506      purchase, lease, gift, devise, bequest, or any other lawful means.
             1507          (g) The power to exercise all powers of eminent domain possessed by counties in the
             1508      manner provided by law for the exercise of eminent domain power by counties.
             1509          (h) The right to employ officers, employees, consultants, and agents, including attorneys,
             1510      accountants, engineers, and fiscal agents, and to fix their compensation.
             1511          (i) The power to cause to be levied taxes on all taxable property in the regional service area
             1512      as provided in this part.
             1513          (j) The right to set meeting times.
             1514          (k) The right to adopt an official seal.
             1515          (l) The right to adopt bylaws and regulations for the conduct of its business.


             1516          (m) The right to operate under a trade name or an assumed name.
             1517          (n) The right to establish a fiscal year, beginning either on January 1 or July 1.
             1518          (o) Other rights and powers as are reasonably necessary for the efficient operation of the
             1519      regional service area or to undertake any lawful activity, including all the rights, powers, and
             1520      authority of the former county service area, and the authority to provide all the services and
             1521      facilities that were provided by the former county service area.
             1522          Section 35. Section 17A-3-209 is amended to read:
             1523           17A-3-209. Payment of contracts -- Progress payments -- Retainage.
             1524          (1) (a) Any contract for work in any special improvement district and any contract for the
             1525      purchase or exchange of property necessary to be acquired in order to make improvements in any
             1526      special improvement district may provide that the contract price or property price shall be paid,