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H.B. 313
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GENERAL GOVERNMENT AMENDMENTS
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2000 GENERAL SESSION
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STATE OF UTAH
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Sponsor: Trisha S. Beck
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AN ACT RELATING TO SPECIAL DISTRICTS; PROVIDING FOR A PROCEDURE IN
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DISTRICT COURT FOR WITHDRAWING MUNICIPAL TERRITORY FROM A
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METROPOLITAN WATER DISTRICT; AND MAKING TECHNICAL CHANGES.
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This act affects sections of Utah Code Annotated 1953 as follows:
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AMENDS:
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17A-2-842, as last amended by Chapter 322, Laws of Utah 1997
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Be it enacted by the Legislature of the state of Utah:
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Section 1.
Section
17A-2-842
is amended to read:
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17A-2-842. Withdrawal from district.
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[Any] (1) (a) A municipality [whose corporate area has become or] that is a part of [any]
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a metropolitan water district may withdraw [therefrom in the following manner:] from the district
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as provided in this Subsection (1).
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(b) The [governing] legislative body of [any such] a municipality that is part of a
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metropolitan water district may submit to the [electors thereof] voters of the municipality at any
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general or special election the proposition of withdrawing from [any] the metropolitan water
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district [incorporated thereunder].
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(c) Notice of such election shall be given in the manner provided in Subsection
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17A-2-841
(3)(e). [Such]
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(d) Each election under this Subsection (1) shall be conducted and the returns [thereof]
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canvassed in the manner provided by law for the conduct of municipal elections [in said city]. [In
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the event that the]
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(e) If a majority of [the electors] those voting [thereon] on the withdrawal vote in favor
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of [such] withdrawal, the result [thereof] shall be certified by the [governing] municipal legislative
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body [of such municipality] to the board of directors of the district.
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(f) (i) A certificate of the proceedings [hereunder] shall be made by the secretary of the
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district and filed with the lieutenant governor, and upon the filing of such certificate the area of
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the municipality so withdrawing shall be excluded from the [said] metropolitan water district, and
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shall no longer be a part [thereof; provided, however, that] of it.
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(ii) Notwithstanding Subsection (1)(f)(i), the property within the [said] municipality [as
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it shall exist] at the time of [such] the exclusion shall continue taxable for the purpose of paying
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[said] bonded and other indebtedness outstanding or contracted for, at the time of [such] the
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exclusion and until such bonded or other indebtedness [shall have] has been satisfied.
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(2) (a) Notwithstanding Subsection (1), an area that is a portion of a municipality and is
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also located within a municipal water district may be withdrawn from the district as provided in
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this Subsection (2).
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(b) (i) The process to withdraw an area from a metropolitan water district under this
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Subsection (2) is initiated by filing a petition with the district court for the county in which the area
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proposed to be withdrawn is located.
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(ii) Each petition under Subsection (2)(b)(i) shall:
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(A) be signed by the owners of a majority of the property within the area proposed to be
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withdrawn;
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(B) request that the area be withdrawn from the metropolitan water district;
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(C) state the reasons for the requested withdrawal;
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(D) be accompanied by a map of the area proposed to be withdrawn; and
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(E) designate up to five persons empowered to act for the petitioners in the proceedings
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initiated by the petition.
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(c) Upon the filing of a petition under Subsection (2)(b), the court shall cause a notice of
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the filing:
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(i) to be served upon the board of directors of the metropolitan water district in the same
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manner as a summons in a civil action; and
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(ii) to be published in a newspaper of general circulation in the metropolitan water district
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for a period of ten days.
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(d) The issues raised by a petition under Subsection (2)(b) shall be tried as provided in the
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Utah Rules of Civil Procedure as in a civil action.
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(e) Any person interested in the issues raised by the petition, including members of the
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board of directors or another authorized representative of the metropolitan water district, may
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appear and contest the granting of the petition.
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(f) (i) The court shall appoint three disinterested persons as commissioners if the court
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finds that:
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(A) the petition complies with the requirements of Subsection (2)(b)(ii);
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(B) the allegations of the petition are true; and
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(C) at the time the petition was filed, the metropolitan water district was not furnishing
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service to the area proposed to be withdrawn.
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(ii) The commissioners shall establish terms of withdrawal with respect to:
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(A) liabilities of the metropolitan water district that have been incurred while the area
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proposed to be withdrawn has been a part of the district; and
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(B) the rights between the metropolitan water district and the area to be withdrawn.
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(iii) For purposes of determining whether the petition complies with the signature
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requirements of Subsection (2)(b)(ii)(A):
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(A) the owner of real property shall be the record title owner according to the records of
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the county recorder on the date of the filing of the petition;
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(B) the signature of a person signing a petition in a representative capacity on behalf of an
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owner is invalid unless the person's representative capacity and the name of the owner the person
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represents are indicated on the petition with the person's signature;
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(C) subject to Subsection (2)(f)(iii)(B), a duly appointed personal representative may sign
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a petition on behalf of a deceased owner; and
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(D) a parcel of real property may not be included in the calculation of the required amount
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of property unless:
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(I) except as provided in Subsection (2)(f)(iii)(D)(II), the petition is signed by owners
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representing a majority ownership interest in that parcel; or
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(II) for property owned in joint tenancy or tenancy by the entirety, the petition is signed
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by at least 50% of the owners of that parcel.
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(g) The commissioners appointed under Subsection (2)(f)(i) shall:
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(i) schedule and hold a hearing to allow those representing the metropolitan water district
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and those representing the petition signers to present information relating to the issues for which
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the commissioners have responsibility; and
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(ii) as soon as practicable after the hearing, report their findings to the court.
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(h) After the commissioners have filed their report, the court may:
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(i) accept the report or, for good cause, modify the report and, subject to Subsection (2)(i),
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enter its decree in accordance with the report or modified report; or
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(ii) reject the report and appoint new commissioners to proceed as provided in Subsection
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(2)(g).
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(i) Each court decree under this Subsection (2) shall provide that:
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(i) the property in the withdrawn area shall remain taxable for paying its share of the
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general obligation bonds of the metropolitan water district outstanding at the time of the filing of
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the petition until the bonds are paid in full;
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(ii) except as provided in Subsection (2)(i)(iii), the property in the withdrawn area shall
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be relieved of all other taxes and charges, including taxes and charges for the payment of revenue
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bonds and maintenance and operation costs of the metropolitan water district; and
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(iii) notwithstanding Subsection (2)(i)(ii), if the metropolitan water district has outstanding
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revenue bonds on the date of the filing of the petition, the withdrawn area shall be taxable only to
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the extent and in those years that it becomes necessary to levy a tax on the withdrawn area to pay
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the withdrawn area's proportionate share of the amount necessary to forestall or prevent a default
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in the payment of principal or interest on those revenue bonds.
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(j) (i) The court may order the county legislative body to levy taxes from time to time on
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the property within the withdrawn area as required under Subsection (2)(i)(i).
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(ii) The county legislative body shall levy taxes on the withdrawn area as ordered by the
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court, and the county treasurer shall collect those taxes in the same manner as other taxes on
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property in the county.
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(k) (i) Upon the court entering a decree withdrawing an area from a metropolitan water
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district, the court clerk shall file a certified copy of the decree and of the map of the withdrawn
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area in the office of the recorder of the county in which the withdrawn area is located.
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(ii) The area shall be considered withdrawn upon the filing of the certified copy of the
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decree and map under Subsection (2)(k)(i).
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(l) Each party to a withdrawal proceeding under this Subsection (2) shall pay the party's
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own witness fees, and the petitioners shall pay all other costs.
Legislative Review Note
as of 2-7-00 9:57 AM
A limited legal review of this legislation raises no obvious constitutional or statutory concerns.