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H.B. 318
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DISSOLUTION OF SPECIAL SERVICE
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DISTRICTS
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2000 GENERAL SESSION
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STATE OF UTAH
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Sponsor: Thomas V. Hatch
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AN ACT RELATING TO SPECIAL DISTRICTS; PROVIDING A PROCEDURE FOR
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DISSOLVING A SPECIAL SERVICE DISTRICT INITIATED BY PROPERTY OWNERS OR
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VOTERS; 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-2-1329, as renumbered and amended by Chapter 186, Laws of Utah 1990
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Be it enacted by the Legislature of the state of Utah:
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Section 1.
Section
17A-2-1329
is amended to read:
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17A-2-1329. Dissolution of district -- Withdrawal of area from district.
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(1) [A] (a) Except as provided in Subsection (2), a special service district may not be
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dissolved [nor areas] and an area may not be withdrawn from the district if:
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(i) any bonds, notes, or other obligations of the district are outstanding and unpaid; or [if]
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(ii) any contractual obligation to provide [the] services exists.
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[(2)] (b) Subject to [the limitation in] Subsection (1)(a), the governing authority of the
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special service district may by resolution:
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[(a)] (i) dissolve the district upon a determination that the district is no longer needed for
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the purposes for which it was formed; or
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[(b)] (ii) withdraw a specifically described [areas] area from the special service district
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upon [a] the governing body's determination that [these areas] the area should not or cannot be
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supplied with the services of the special service district.
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(2) (a) The governing authority of a special service district shall arrange for an election to
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be held on the question of whether the district should be dissolved if a petition requesting
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dissolution is filed with the governing authority and signed by:
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(i) at least 10% of the registered voters within the special service district; or
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(ii) the owners of at least 10% of the value of taxable real property within the special
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service district.
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(b) Each election under Subsection (2)(a) shall be held on the next regular general or
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municipal general election date that is more than 60 days after the filing of the petition requesting
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dissolution and, except as provided in this section, shall be governed by Title 20A, Elections.
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(c) If two-thirds of those voting on the dissolution question vote in favor of dissolution,
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the governing authority shall, subject to Subsection (2)(d):
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(i) in as short a time as practicable and prudent, wind down the affairs of the special
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service district; and
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(ii) as soon as winding down is complete, adopt a resolution dissolving the special service
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district.
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(d) (i) Dissolution under this Subsection (2) shall be subject to any outstanding bonds or
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other contractual obligations of the special service district.
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(ii) If the special service district has outstanding bonds or other contractual obligations at
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the time of an election under Subsection (2)(a) in favor of dissolution, the governing authority shall
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take all necessary action in the winding down process to provide for fulfilling all bond and other
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contractual obligations before dissolution may occur.
Legislative Review Note
as of 2-4-00 10:29 AM
A limited legal review of this legislation raises no obvious constitutional or statutory concerns.