Special Districts Amendments

9
17B-1-502
17B-1-504
17B-1-505
17B-1-505.5
17B-1-505.7
17B-1-511
17B-1-512
2
Special Districts Amendments
2026 GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Candice B. Pierucci
Senate Sponsor: Daniel McCay
LONG TITLE
General Description:
This bill addresses withdrawal of a county or a municipality from a special district under
certain circumstances.
Highlighted Provisions:
This bill:
defines terms and modifies definitions;
provides a process for a county of the first class to initiate withdrawal from a first
responder district;
modifies the process to conduct a feasibility study on withdrawal from a first responder
district;
creates a process for a county of the first class or a municipality located in a county of the
first class to initiate withdrawal from a garbage disposal district;
prohibits a garbage disposal district from incurring debt, issuing bonds, or otherwise
incurring a financial obligation for a period of time after the county or municipality
initiates the process to withdraw from the garbage disposal district;
authorizes a county or municipality and a garbage disposal district to enter into an
agreement to withdraw;
describes the requirements for a county or municipality to complete withdrawal from a
garbage disposal district absent an agreement, including:
conducting a feasibility study;
conducting a public hearing on the proposed withdrawal;
providing notice of a public hearing on the proposed withdrawal; and
adopting a resolution to withdraw;
modifies the process to file with the lieutenant governor certain documents;
describes the process to determine the effective date of a withdrawal; and
makes technical and conforming changes.
Money Appropriated in this Bill:
None
Other Special Clauses:
None
Utah Code Sections Affected:
AMENDS:
17B-1-502
, as last amended by Laws of Utah 2025, First Special Session, Chapter 11
17B-1-504
, as last amended by Laws of Utah 2024, Chapter 388
17B-1-505
, as last amended by Laws of Utah 2023, Chapter 15
17B-1-505.5
, as last amended by Laws of Utah 2023, Chapters 15, 435
17B-1-511
, as last amended by Laws of Utah 2024, Chapter 388
17B-1-512
, as last amended by Laws of Utah 2025, Chapter 399
ENACTS:
17B-1-505.7
, Utah Code Annotated 1953
Be it enacted by the Legislature of the state of Utah:
Section 1. Section
17B-1-502
is amended to read:
17B-1-502
. Withdrawal of area from special district -- Automatic withdrawal in
certain circumstances.
(1)
(a)
An area within the boundaries of a special district may be withdrawn from the
special district only as provided in this part or, if applicable, as provided in Chapter
2a, Part 11
, Municipal Services District Act.
(b)
Except as provided in Subsections
(2)
and
(3)
, the inclusion of an area of a special
district within a municipality because of a municipal incorporation under Title
10,
Chapter 2a
, Municipal Incorporation, a municipal annexation under Title
10, Chapter
2, Part 8
, Annexation, or a boundary adjustment under Title
10, Chapter 2, Part 9
,
Municipal Boundary Adjustments, does not affect the requirements under this part
for the process of withdrawing that area from the special district.
(2)
(a)
An area within the boundaries of a special district is automatically withdrawn
from the special district by the annexation of the area to a municipality under Title
10, Chapter 2, Part 8
, Annexation, or the adding of the area to a municipality by
boundary adjustment under Title
10, Chapter 2, Part 9
, Municipal Boundary
Adjustments, if:
(i)
the special district provides:
(A)
fire protection, paramedic, and emergency services; or
(B)
law enforcement service;
(ii)
an election for the creation of the special district was not required because of
Subsection
17B-1-214(3)(d)
or
(g)
; and
(iii)
before annexation or boundary adjustment, the boundaries of the special district
do not include any of the annexing municipality.
(b)
The effective date of a withdrawal under this Subsection
(2)
is governed by
Subsection
17B-1-512(2)(b)
.
(3)
(a)
Except as provided in Subsection
(3)(c)
or
(d)
, an area within the boundaries of a
special district located in a county of the first class is automatically withdrawn from
the special district by the incorporation of a municipality whose boundaries include
the area if:
(i)
the special district provides municipal services, as defined in Section
17B-2a-1102
,
excluding fire protection, paramedic, emergency, and law enforcement services;
(ii)
an election for the creation of the special district was not required because of
Subsection
17B-1-214(3)(g)
; and
(iii)
the legislative body of the newly incorporated municipality:
(A)
adopts a resolution no later than 180 days after the effective date of
incorporation approving the withdrawal that includes the legal description of
the area to be withdrawn; and
(B)
delivers a copy of the resolution to the board of trustees of the special district.
(b)
The effective date of a withdrawal under this Subsection
(3)
is governed by
Subsection
17B-1-512(2)(a)
.
(c)
Section
17B-1-505
governs the withdrawal of an
incorporated
area within a county
of the first class if:
(i)
the special district from which the area is withdrawn provides:
(A)
fire protection, paramedic, and emergency services;
(B)
law enforcement service; or
(C)
municipal services, as defined in Section
17B-2a-1102
;
(ii)
an election for the creation of the special district was not required under
Subsection
17B-1-214(3)(d)
or
(g)
; and
(iii)
for a special district that provides municipal services, as defined in Section
17B-2a-1102
, excluding fire protection, paramedic, emergency, and law
enforcement services, the 180-day period described in Subsection
(3)(a)(iii)(A)
is
expired.
(d)
An area may not be withdrawn from a special district that provides municipal
services, as defined in Section
17B-2a-1102
, excluding fire protection, paramedic,
emergency, and law enforcement services, if the area is within a converted
municipality, as defined in Section
10-1-201.5
.
Section 2. Section
17B-1-504
is amended to read:
17B-1-504
. Initiation of withdrawal process -- Notice of petition.
(1)
Except as provided in Section
17B-1-505
, the process to withdraw an area from a
special district may be initiated:
(a)
for a special district funded predominantly by revenues from property taxes or
service charges other than those based upon acre-feet of water:
(i)
by a petition signed by the owners of private real property that:
(A)
is located within the area proposed to be withdrawn;
(B)
covers at least 51% of the total private land within the area proposed to be
withdrawn; and
(C)
is equal in taxable value to at least 51% of the taxable value of all private real
property within the area proposed to be withdrawn;
(ii)
by a petition signed by registered voters residing within the area proposed to be
withdrawn equal in number to at least 67% of the number of votes cast in the same
area for the office of governor at the last regular general election before the filing
of the petition;
(iii)
by a resolution adopted by the board of trustees of the special district in which
the area proposed to be withdrawn is located, which:
(A)
states the reasons for withdrawal; and
(B)
is accompanied by a general description of the area proposed to be withdrawn;
or
(iv)
by a resolution to file a petition with the special district to withdraw from the
special district all or a specified portion of the area within a municipality or
county, adopted by the governing body of a municipality that has within
its
municipal
boundaries an area located within the boundaries of a special district, or
by the governing body of a county that has within
its
county
boundaries an area
located within the boundaries of a special district that is located in more than one
county, which petition of the governing body shall be filed with the board of
trustees only if a written request to petition the board of trustees to withdraw an
area from the special district has been filed with the governing body of the
municipality, or county, and the request has been signed by registered voters
residing within the boundaries of the area proposed for withdrawal equal in
number to at least 51% of the number of votes cast in the same area for the office
of governor at the last regular general election before the filing of the petition;
(b)
for a special district whose board of trustees is elected by electors based on the
acre-feet of water allotted to the land owned by the elector:
(i)
in the same manner as provided in Subsection
(1)(a)(iii)
or Subsection
(1)(a)(iv)
;
or
(ii)
by a petition signed by the owners of at least 67% of the acre-feet of water
allotted to the land proposed to be withdrawn;
(c)
for a special district funded predominantly by revenues other than property taxes,
service charges, or assessments based upon an allotment of acre-feet of water:
(i)
in the same manner as provided in Subsection
(1)(a)(iii)
or Subsection
(1)(a)(iv)
;
or
(ii)
by a petition signed by the registered voters residing within the entire area
proposed to be withdrawn, which area shall be comprised of an entire
unincorporated area within the special district or an entire municipality within a
special district, or a combination thereof, equal in number to at least 67% of the
number of votes cast within the entire area proposed to be withdrawn for the
office of governor at the last regular general election before the filing of the
petition; or
(d)
for an infrastructure financing district, by a petition signed by 100% of the owners of
all surface property within the area proposed to be withdrawn.
(2)
(a)
Prior to
Before
soliciting any signatures on a petition under Subsection
(1)
, the
sponsors of the petition shall:
(i)
notify the special district board with which the petition is intended to be filed that
the sponsors will be soliciting signatures for a petition; and
(ii)
mail a copy of the petition to the special district board.
(b)
Subsection
(2)(a)
does not apply to a petition to withdraw an area from an
infrastructure financing district.
Section 3. Section
17B-1-505
is amended to read:
17B-1-505
. Withdrawal from certain districts providing fire protection,
paramedic, and emergency services or law enforcement service or municipal services.
(1)
As used in this section
,
:

(a)
"County" means all of the unincorporated land in a county of the first class, as
classified under Section
17-60-104
, that is entirely within the boundary of a first
responder district.
(b)
"Eligible area" means:
(i)
all of the unincorporated land in a county of the first class, as classified under
Section
17-60-104
, that is entirely within the boundary of a first responder district;
or
(ii)
all of a municipality that is entirely within the boundary of a qualified district.
(c)
"first
"First
responder district" means a special district, other than a municipal
services district, that provides:
(a)
(i)
fire protection, paramedic, and emergency services; or
(b)
(ii)
law enforcement service.
(d)
"Legislative body" means:
(i)
for an eligible area that is wholly within a municipality, the municipal legislative
body; and
(ii)
for an eligible area that is all of the unincorporated land in a county, the county
legislative body.
(e)
"Municipal services district" means a municipal services district formed under
Chapter
2a, Part
11, Municipal Services District Act.
(f)
"Qualified district" means:
(i)
a first responder district; or
(ii)
a municipal services district.
(2)
This section
applies to the
provides the sole method of
withdrawal of
:

(a)
a municipality that is entirely within the boundary of a first responder district
from
the first responder district;
(b)
a municipality that is entirely within the boundary of a municipal services district
from the municipal services district; and
(c)
or municipal services district that was created without the necessity of an election
because of Subsection
17B-1-214(3)(d)
or
(g)
a county from a first responder district
.
(3)
(a)
The process to withdraw a municipality from a first responder district or
municipal services district
, or a county from a first responder district,
may be
initiated by a resolution adopted by
the
a
legislative body
of the municipality
,
subject to Subsection
(3)(b)
.
(b)
The legislative body of a municipality that is within a municipal services district may
not adopt a resolution under Subsection
(3)(a)
to withdraw from the municipal
services district unless the municipality has conducted a feasibility study in
accordance with Section
17B-2a-1110
.
(c)
Within 10 days after adopting a resolution under Subsection
(3)(a)
, the
municipal
legislative body shall submit to the board of trustees of the
first responder district or
municipal services
qualified
district written notice of the adoption of the resolution,
accompanied by a copy of the resolution.
(4)
If a resolution is adopted under Subsection
(3)(a)

by the legislative body of a
municipality within a municipal services district, the municipal legislative body shall
hold an election at the next municipal general election that is more than
60
180
days
after adoption of the resolution on the question of whether the municipality should
withdraw from the municipal services district.
(5)
(a)
A municipality
or county
shall be withdrawn from a first responder district if:
(i)
the legislative body
of the municipality
governing the municipality or county
adopts a resolution initiating the withdrawal under Subsection
(3)(a)
; and
(ii)
(A)
whether before or after the effective date of this section, the municipality
the legislative body of the municipality or county
and
the
first responder
district agree in writing to the withdrawal; or
(B)
except as provided in Subsection
(5)(b)
and subject to Subsection
(6)
, the
voters
of the municipality
residing in the eligible area
approve the withdrawal
at an election held for that purpose.
(b)
An election under Subsection
(5)(a)(ii)(B)
is not required if, after a feasibility study
is conducted under Section
17B-1-505.5
and a public hearing is held under
Subsection
17B-1-505.5(14)
, the
municipality
legislative body governing the
eligible area
and first responder district agree in writing to the withdrawal.
(6)
An election under Subsection
(5)(a)(ii)(B)
may not be held unless:
(a)
a feasibility study is conducted under Section
17B-1-505.5
; and
(b)
(i)
the feasibility study concludes that the withdrawal is functionally and
financially feasible for the
municipality
eligible area
and the first responder
district; or
(ii)
(A)
the feasibility study concludes that the withdrawal would be functionally
and financially feasible for the
municipality
eligible area
and the first
responder district if conditions specified in the feasibility study are met; and
(B)
the legislative body of the
municipality
eligible area
adopts a resolution
irrevocably committing the
municipality
eligible area
to satisfying the
conditions specified in the feasibility study, if the withdrawal is approved by
the
municipality's
voters.
(7)
If a majority of those voting on the question of withdrawal at an election held under
Subsection

(4)
or
(5)(a)(ii)(B)

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

district from which the
municipality
eligible area
is proposed to withdraw.
(b)
Each notice under Subsection
(8)(a)
shall:
(i)
state the results of the withdrawal election; and
(ii)
if the withdrawal was approved by voters, be accompanied by a copy of an
approved final local entity plat, as defined in Section
67-1a-6.5
.
(9)
The effective date of a withdrawal under this section is governed by
Subsection
17B-1-512(2)(a)
Section
17B-1-512
.
Section 4. Section
17B-1-505.5
is amended to read:
17B-1-505.5
. Feasibility study for withdrawal from a special district providing
fire protection, paramedic, and emergency services or law enforcement service -- Notice
of hearing.
(1)
As used in this section:
(a)
"Eligible area" means the same as that term is defined in Section
17B-1-505
.
(b)
"Feasibility consultant" means a person with expertise in:
(i)
the processes and economics of local government; and
(ii)
the economics of providing fire protection, paramedic, and emergency services or
law enforcement service.
(b)
(c)
"Feasibility study" means a study to determine the functional and financial
feasibility of a municipality's withdrawal from a first responder special district.
(c)
(d)
"First responder district" means
a special district, other than a municipal
services district, that provides:
(i)
fire protection, paramedic, and emergency services; or
(ii)
law enforcement service
the same as that term is defined in Section
17B-1-505
.
(d)
(e)
"Withdrawing
municipality
entity
" means
:

(i)
a municipality whose legislative body has adopted a resolution under Subsection
17B-1-505(3)(a)
to initiate the process of the municipality's withdrawal from a
first responder district
.
; or
(ii)
a county whose legislative body has adopted a resolution under Subsection
17B-1-505(3)(a)
to initiate the process of withdrawing all unincorporated areas of
the county from a first responder district.
(2)
This section applies and a feasibility study shall be conducted, as provided in this
section, if:
(a)
the legislative body of a
municipality
withdrawing entity
has adopted a resolution
under Subsection
17B-1-505(3)(a)
to initiate the process of the
municipality's
withdrawal from a first responder district;
(b)
the
municipality
withdrawing entity
and first responder district have not agreed in
writing to the withdrawal; and
(c)
a feasibility study is a condition under Subsection
17B-1-505(6)(a)
for an election to
be held approving the withdrawal.
(3)
(a)
As provided in this Subsection
(3)
, the withdrawing
municipality
entity
and first
responder district shall choose and engage a feasibility consultant to conduct a
feasibility study.
(b)
The withdrawing
municipality
entity
and first responder district shall jointly choose
and engage a feasibility consultant according to applicable
county,
municipal
,
or
special district procurement procedures.
(c)
(i)
If the withdrawing
municipality
entity
and first responder district cannot agree
on and have not engaged a feasibility consultant under Subsection
(3)(b)
within 45
days after the legislative body of the withdrawing
municipality
entity
submits
written notice to the first responder district under Subsection
17B-1-505(3)(c)
, the
withdrawing
municipality
entity
and first responder district shall, as provided in
this Subsection
(3)(c)
, choose a feasibility consultant from a list of at least eight
feasibility consultants provided by the Utah Association of Certified Public
Accountants.
(ii)
A list of feasibility consultants under Subsection
(3)(c)(i)
may not include a
feasibility consultant that has had a contract to provide services to the
withdrawing
municipality
entity
or first responder district at any time during the
two-year period immediately preceding the date the list is provided under
Subsection
(3)(c)(i)
.
(iii)
(A)
Beginning with the first responder district, the first responder district and
withdrawing
municipality
entity
shall alternately eliminate one feasibility
consultant each from the list of feasibility consultants until one feasibility
consultant remains.
(B)
Within five days after receiving the list of consultants from the Utah
Association of Certified Public Accountants, the first responder district shall
make the first elimination of a feasibility consultant from the list and notify the
withdrawing
municipality
entity
in writing of the elimination.
(C)
After the first elimination of a feasibility consultant from the list, the
withdrawing
municipality
entity
and first responder district shall each, within
three days after receiving the written notification of the preceding elimination,
notify the other in writing of the elimination of a feasibility consultant from the
list.
(d)
If a withdrawing
municipality
entity
and first responder district do not engage a
feasibility consultant under Subsection
(3)(b)
, the withdrawing
municipality
entity

and first responder district shall engage the feasibility consultant that has not been
eliminated from the list at the completion of the process described in Subsection
(3)(c)
.
(4)
A feasibility consultant that conducts a feasibility study under this section shall be
independent of and unaffiliated with the withdrawing
municipality
entity
and first
responder district.
(5)
In conducting a feasibility study under this section, the feasibility consultant shall
consider:
(a)
population and population density within the
withdrawing municipality
eligible area
;
(b)
current and five-year projections of demographics and economic base in the
withdrawing
municipality
entity
, including household size and income, commercial
and industrial development, and public facilities;
(c)
projected growth in the withdrawing
municipality
entity
during the next five years;
(d)
subject to Subsection
(6)(a)
, the present and five-year projections of the cost,
including overhead, of providing the same service in the withdrawing
municipality
entity
as is provided by the first responder district, including:
(i)
the estimated cost if the first responder district continues to provide service; and
(ii)
the estimated cost if the withdrawing
municipality
entity
provides service;
(e)
subject to Subsection
(6)(a)
, the present and five-year projections of the cost,
including overhead, of the first responder district providing service with:
(i)
the
municipality
eligible area
included in the first responder district's service
area; and
(ii)
the withdrawing
municipality
entity
excluded from the first responder district's
service area;
(f)
a projection of any new taxes per household that may be levied within the
withdrawing
municipality
entity
within five years after the withdrawal;
(g)
the fiscal impact that the withdrawing
municipality's
entity's
withdrawal has on
other municipalities and unincorporated areas served by the first responder district,
including any rate increase that may become necessary to maintain required coverage
ratios for the first responder district's debt;
(h)
the physical and other assets that will be required by the withdrawing
municipality
entity
to provide, without interruption or diminution of service, the same service that
is being provided by the first responder district;
(i)
the physical and other assets that will no longer be required by the first responder
district to continue to provide the current level of service to the remainder of the first
responder district, excluding the withdrawing
municipality
entity
, and could be
transferred to the withdrawing
municipality
entity
;
(j)
subject to Subsection
(6)(b)
, a fair and equitable allocation of the first responder
district's assets between the first responder district and the withdrawing
municipality
entity
, effective upon the withdrawal of the withdrawing
municipality
entity
from
the first responder district;
(k)
a fair and equitable allocation of the debts, liabilities, and obligations of the first
responder district and any local building authority of the first responder district,
between the withdrawing
municipality
entity
and the remaining first responder
district, taking into consideration:
(i)
any requirement to maintain the excludability of interest from the income of the
holder of the debt, liability, or obligation for federal income tax purposes; and
(ii)
any first responder district assets that have been purchased with the proceeds of
bonds issued by the first responder district that the first responder district will
retain and any of those assets that will be transferred to the withdrawing
municipality
entity
;
(l)
the number and classification of first responder district employees who will no longer
be required to serve the remaining portions of the first responder district after the
withdrawing
municipality
entity
withdraws from the first responder district,
including the dollar amount of the wages, salaries, and benefits attributable to the
employees and the estimated cost associated with termination of the employees if the
withdrawing
municipality
entity
does not employ the employees;
(m)
maintaining as a base, for a period of three years after withdrawal, the existing
schedule of pay and benefits for first responder district employees who are
transferred to the employment of the withdrawing
municipality
entity
; and
(n)
any other factor that the feasibility consultant considers relevant to the question of
the withdrawing
municipality's
entity's
withdrawal from the first responder district.
(6)
(a)
For purposes of Subsections
(5)(d)
and
(e)
:
(i)
the feasibility consultant shall assume a level and quality of service to be provided
in the future to the withdrawing
municipality
entity
that fairly and reasonably
approximates the level and quality of service that the first responder district
provides to the withdrawing
municipality
entity
at the time of the feasibility
study;
(ii)
in determining the present value cost of a service that the first responder district
provides, the feasibility consultant shall consider:
(A)
the cost to the withdrawing
municipality
entity
of providing the service for
the first five years after the withdrawal; and
(B)
the first responder district's present and five-year projected cost of providing
the same service within the withdrawing
municipality
entity
; and
(iii)
the feasibility consultant shall consider inflation and anticipated growth in
calculating the cost of providing service.
(b)
The feasibility consultant may not consider an allocation of first responder district
assets or a transfer of first responder district employees to the extent that the
allocation or transfer would impair the first responder district's ability to continue to
provide the current level of service to the remainder of the first responder district
without the withdrawing
municipality
entity
, unless the first responder district
consents to the allocation or transfer.
(7)
A feasibility consultant may retain an architect, engineer, or other professional, as the
feasibility consultant considers prudent and as provided in the agreement with the
withdrawing
municipality
entity
and first responder district, to assist the feasibility
consultant to conduct a feasibility study.
(8)
The withdrawing
municipality
entity
and first responder district shall require the
feasibility consultant to:
(a)
complete the feasibility study within a time established by the withdrawing
municipality
entity
and first responder district;
(b)
prepare and submit a written report communicating the results of the feasibility
study, including a one-page summary of the results; and
(c)
attend all public hearings relating to the feasibility study under Subsection
(14)
.
(9)
A written report of the results of a feasibility study under this section shall:
(a)
contain a recommendation concerning whether a withdrawing
municipality's
entity's

withdrawal from a first responder district is functionally and financially feasible for
both the first responder district and the withdrawing
municipality
entity
; and
(b)
include any conditions the feasibility consultant determines need to be satisfied in
order to make the withdrawal functionally and financially feasible, including:
(i)
first responder district assets and liabilities to be allocated to the withdrawing
municipality
entity
; and
(ii)
(A)
first responder district employees to become employees of the withdrawing
municipality
entity
; and
(B)
sick leave, vacation, and other accrued benefits and obligations relating to the
first responder district employees that the withdrawing
municipality
entity

needs to assume.
(10)
The withdrawing
municipality
entity
and first responder district shall equally share
the feasibility consultant's fees and costs, as specified in the agreement between the
withdrawing
municipality
entity
and first responder district and the feasibility
consultant.
(11)
(a)
Upon completion of the feasibility study and preparation of a written report, the
feasibility consultant shall deliver a copy of the report to the withdrawing
municipality
entity
and first responder district.
(b)
(i)
A withdrawing
municipality
entity
or first responder district that disagrees
with any aspect of a feasibility study report may, within 20 business days after
receiving a copy of the report under Subsection
(11)(a)
, submit to the feasibility
consultant a written objection detailing the disagreement.
(ii)
(A)
A withdrawing
municipality
entity
that submits a written objection under
Subsection
(11)(b)(i)
shall simultaneously deliver a copy of the objection to the
first responder district.
(B)
A first responder district that submits a written objection under Subsection
(11)(b)(i)
shall simultaneously deliver a copy of the objection to the
withdrawing
municipality
entity
.
(iii)
A withdrawing
municipality
entity
or first responder district may, within 10
business days after receiving an objection under Subsection
(11)(b)(ii)
, submit to
the feasibility consultant a written response to the objection.
(iv)
(A)
A withdrawing
municipality
entity
that submits a response under
Subsection
(11)(b)(iii)
shall simultaneously deliver a copy of the response to
the first responder district.
(B)
A first responder district that submits a response under Subsection
(11)(b)(iii)

shall simultaneously deliver a copy of the response to the withdrawing
municipality
entity
.
(v)
If an objection is filed under Subsection
(11)(b)(i)
, the feasibility consultant shall,
within 20 business days after the expiration of the deadline under Subsection
(11)(b)(iii)
for submitting a response to an objection:
(A)
modify the feasibility study report or explain in writing why the feasibility
consultant is not modifying the feasibility study report; and
(B)
deliver the modified feasibility study report or written explanation to the
withdrawing
municipality
entity
and first responder special district.
(12)
Within seven days after the expiration of the deadline under Subsection
(11)(b)(i)
for
submitting an objection or, if an objection is submitted, within seven days after
receiving a modified feasibility study report or written explanation under Subsection
(11)(b)(v)
, but at least 30 days before a public hearing under Subsection
(14)
, the
withdrawing
municipality
entity
shall:
(a)
make a copy of the report available to the public at the primary office of the
withdrawing
municipality
entity
; and
(b)
if the withdrawing
municipality
entity
has a website, post a copy of the report on the
municipality's
entity's
website.
(13)
A feasibility study report or, if a feasibility study report is modified under Subsection
(11)
, a modified feasibility study report may not be challenged unless the basis of the
challenge is that the report results from collusion or fraud.
(14)
(a)
Following the expiration of the deadline under Subsection
(11)(b)(i)
for
submitting an objection, or, if an objection is submitted under Subsection
(11)(b)(i)
,
following the withdrawing
municipality's
entity's
receipt of the modified feasibility
study report or written explanation under Subsection
(11)(b)(v)
, the legislative body
of the withdrawing
municipality
entity
shall, at the legislative body's next regular
meeting, schedule at least one public hearing to be held:
(i)
within the following 60 days; and
(ii)
for the purpose of allowing:
(A)
the feasibility consultant to present the results of the feasibility study; and
(B)
the public to become informed about the feasibility study results, to ask the
feasibility consultant questions about the feasibility study, and to express the
public's views about the proposed withdrawal.
(b)
At a public hearing under Subsection
(14)(a)
, the legislative body of the withdrawing
municipality
entity
shall:
(i)
provide a copy of the feasibility study for public review; and
(ii)
allow the public to:
(A)
ask the feasibility consultant questions about the feasibility study; and
(B)
express the public's views about the withdrawing
municipality's
entity's

proposed withdrawal from the first responder district.
(15)
(a)
The clerk or recorder of the withdrawing
municipality
entity
shall publish
notice of a hearing under Subsection
(14)
for the withdrawing
municipality
entity
, as
a class A notice under Section
63G-30-102
, for three consecutive weeks immediately
before the public hearing.
(b)
A notice under Subsection
(15)(a)
shall state:
(i)
the date, time, and location of the public hearing; and
(ii)
that a copy of the feasibility study report may be obtained, free of charge, at the
office of the withdrawing
municipality
entity
or on the withdrawing
municipality's
entity's
website.
(16)
Unless the withdrawing
municipality
entity
and first responder district agree
otherwise, conditions that a feasibility study report indicates are necessary to be met for
a withdrawal to be functionally and financially feasible for the withdrawing
municipality
entity
and first responder district are binding on the withdrawing
municipality
entity
and first responder district if the withdrawal occurs.
Section 5. Section
17B-1-505.7
is enacted to read:
17B-1-505.7
. Withdrawal from certain districts providing garbage collection and
disposal.
(1)
As used in this section:
(a)
"Feasibility consultant" means a person with expertise in:
(i)
the processes and economics of local government; and
(ii)
the economics of providing municipal services to an area, including garbage
service.
(b)
"Feasibility study" means a study to determine the functional and financial feasibility
of withdrawing an area from a garbage disposal district.
(c)
(i)
"Garbage disposal district" means a special or local district that was created to
provide garbage collection and disposal to counties or municipalities.
(ii)
"Garbage disposal district" includes special districts reorganized from a local
district, as described in Section
17D-1-604
.
(d)
(i)
"Incur a financial obligation" means an action that increases the annual budget
of a district beyond what would be expected after taking population growth or
inflation into account.
(ii)
"Incur a financial obligation" does not mean the continuation of day-to-day
district operations, including:
(A)
the payment of salaries and benefits;
(B)
implementing previously budgeted cost-of-living wage increases;
(C)
hiring a new employee to fulfill the duties of an individual who leaves
employment with the district; or
(D)
purchasing necessary supplies under the same general terms and at the same
general rate the organization historically purchased the supplies.
(e)
"Resolution to withdraw" means a resolution adopted by the legislative body of a
withdrawing entity describing the area within the withdrawing entity that shall be
removed from the boundaries of a garbage disposal district.
(f)
"Withdrawing entity" means:
(i)
a county of the first class, as classified under Section
17-60-104
, that initiates the
process to withdraw the unincorporated areas of the county from the garbage
disposal district as described in this section; or
(ii)
a municipality located in a county of the first class, as classified under Section
17-60-104
, that initiates the process to withdraw the municipality from the
garbage disposal district as described in this section.
(2)
(a)
In addition to procedures described in Section
17B-1-504
, the process to withdraw
an area from a garbage disposal district may be initiated by a county or municipal
legislative body adopting a notice of intent to withdraw as described in this section.
(b)
The notice in Subsection
(2)(a)
shall include:
(i)
a statement that the county or municipality intends to withdraw from the garbage
disposal district;
(ii)
a description or map of the area proposed to be withdrawn; and
(iii)
notice that the county or municipality intends to conduct a feasibility study in
accordance with this section if the withdrawing entity and garbage disposal
district do not agree to the withdrawal as described in Subsection
(3)
.
(c)
Within 10 days after adopting the notice in Subsection
(2)(a)
, the legislative body
shall submit a copy of the notice to the garbage disposal district's board of trustees.
(d)
Upon receiving the notice described in Subsection
(2)(c)
, the garbage disposal
district may not incur debt, issue bonds, or otherwise incur a financial obligation until
the earlier of:
(i)
the day on which:
(A)
the initiated withdrawal is finalized; or
(B)
the legislative body rescinds the notice of intent to withdraw as described in
Subsection
(8)
; or
(ii)
one year from the day on which the garbage disposal district receives the notice
described in Subsection
(2)(c)
.
(3)
A feasibility study under this section is not required if, within 30 days of the day on
which the garbage disposal district receives notice under Subsection
(2)(c)
, the
withdrawing entity and the garbage disposal
district:
(a)
agree in writing to the withdrawal; and
(b)
enter into a written agreement establishing the terms of the withdrawal.
(4)
(a)
The withdrawing entity shall select a feasibility consultant in accordance with
applicable county or municipal procurement procedures.
(b)
Upon retaining a feasibility consultant, the legislative body shall require the
feasibility consultant to:
(i)
complete the feasibility study and written report:
(A)
as described in Subsection
(5)
; and
(B)
within 90 days; and
(ii)
attend any public hearing the legislative body holds as described in Subsection
(6)
.
(5)
(a)
The feasibility study shall consider:
(i)
the physical and other assets that will be required by the withdrawing entity to
provide, without interruption or diminution of service, the same service that is
being provided by the garbage disposal district;
(ii)
the physical and other assets that will no longer be required by the garbage
disposal district to continue to provide the current level of service to the remainder
of the garbage disposal district, excluding the withdrawing entity, and could be
transferred to the withdrawing entity;
(iii)
a fair and equitable allocation of the garbage disposal district's assets between the
garbage disposal district and the withdrawing entity, effective upon the
withdrawal of the withdrawing entity from the garbage disposal district;
(iv)
a fair and equitable allocation of the debts, liabilities, and obligations of the
garbage disposal district and any local building authority of the garbage disposal
district, between the withdrawing entity and the remaining garbage disposal
district, taking into consideration:
(A)
any requirement to maintain the excludability of interest from the income of
the holder of the debt, liability, or obligation for federal income tax purposes;
and
(B)
any garbage disposal district assets that have been purchased with the
proceeds of bonds issued by the garbage disposal district that the garbage
disposal district will retain and any assets that will be transferred to the
withdrawing entity;
(v)
the number and classification of garbage disposal district employees who will no
longer be required to serve the remaining portions of the garbage disposal district
after the withdrawing entity withdraws from the garbage disposal district,
including the dollar amount of the wages, salaries, and benefits attributable to the
employees and the estimated cost associated with termination of the employees if
the withdrawing entity does not employ the employees; and
(vi)
any other factor that the feasibility consultant considers relevant to the question
of the withdrawing entity's withdrawal from the garbage disposal district.
(b)
A written report of the results of a feasibility study shall:
(i)
contain a recommendation concerning whether a withdrawing entity's withdrawal
from a garbage disposal district is functionally and financially feasible for the
withdrawing entity;
(ii)
include any conditions the feasibility consultant determines need to be satisfied in
order to make the withdrawal functionally and financially feasible, including the
garbage disposal district assets and liabilities to be allocated to the withdrawing
entity;
(iii)
include a one-page summary of the feasibility study, the recommendation
described in Subsection
(5)(b)(i)
, and any conditions described in Subsection
(5)(b)(ii)
in terms that the average member of the public can understand; and
(iv)
be sent to:
(A)
the board of trustees of the garbage disposal district; and
(B)
the legislative body that adopted the notice of intent to withdraw under
Subsection
(2)
.
(6)
(a)
If upon receipt of the written report described in Subsection
(5)(b)
, the
withdrawing entity determines that the results of the feasibility study are favorable
and any identified conditions are acceptable to the withdrawing entity, the legislative
body shall hold at least one public hearing:
(i)
within 60 days of the day on which the written report is sent to the board of
trustees and the legislative body, as described in Subsection
(5)(b)
; and
(ii)
for the purpose of allowing:
(A)
the feasibility consultant to present the results of the feasibility study; and
(B)
the public to become informed about the feasibility study results, pose
questions to the feasibility consultant, and make public comment.
(b)
At a public hearing described in this Subsection
(6)
, the legislative body shall:
(i)
provide a copy of the feasibility study for public review;
(ii)
ensure that the presentation includes a description of any conditions the feasibility
consultant identifies as necessary to make the withdrawal functional and
financially feasible, as described in Subsection
(5)(b)
; and
(iii)
allow members of the public and representatives from the garbage disposal
district's board of trustees to make public comment about the proposed withdrawal.
(7)
(a)
The county or municipality shall publish notice of the public hearing required
under Subsection
(6)
, and any additional public hearing in which the issue of
withdrawal or the feasibility study results are discussed, for the county or
municipality:
(i)
as a class A notice under Section
63G-30-102
; and
(ii)
for at least two weeks before the day of the public hearing.
(b)
The notice described in Subsection
(7)(a)
shall:
(i)
be sent to the garbage disposal district's board of trustees;
(ii)
include the summary described in Subsection
(5)(b)(iii)
; and
(iii)
indicate that a full copy of the feasibility study is available for inspection and
copying at the office of the county clerk or municipal clerk or recorder.
(8)
The withdrawing entity's legislative body shall notify the garbage disposal district's
board of trustees that the legislative body is rescinding the notice of intent to withdraw:
(a)
if, upon receipt of the written report described in Subsection
(5)(b)
, the withdrawing
entity determines the results of the feasibility study are not favorable to the
withdrawing entity or that any identified conditions are not acceptable to the
withdrawing entity;
(b)
if, after a public hearing described in Subsection
(6)
, the legislative body fails to or
elects not to adopt a resolution to withdraw as described in Subsection
(9)
; or
(c)
if the legislative body determines, for whatever reason and at any time before the
legislative body adopts a resolution to withdraw as described in Subsection
(9)
, that
withdrawal is no longer in the best interest of the county or municipality.
(9)
(a)
The withdrawing entity's legislative body may adopt a resolution to withdraw at a
public meeting:
(i)
after a public hearing described in Subsection
(6)
; and
(ii)
no later than 60 days after the day on which the last public hearing described in
Subsection
(6)
is held.
(b)
A resolution to withdraw shall establish the terms of the withdrawal, including the
withdrawing entity's agreement to comply with any conditions included in the
feasibility study report.
(c)
Upon adopting a resolution to withdraw, the legislative body shall notify the garbage
disposal district's board of trustees of the resolution to withdraw.
(10)
The withdrawal of a county or municipality from a garbage disposal district as
described in Subsection
(9)
does not require the approval of the garbage disposal
district's board of trustees.
(11)
(a)
Within 10 days of the day on which a withdrawing entity and garbage disposal
district enter into an agreement to withdraw under Subsection
(3)
or a legislative
body adopts a resolution to withdraw under Subsection
(9)
, the withdrawing entity
shall file with the lieutenant governor a copy of:
(i)
the notice of an impending boundary action, as defined in Section
67-1a-6.5
, that
meets the requirements of Subsection
67-1a-6.5(3)
; and
(ii)
an approved final local entity plat, as defined in Section
67-1a-6.5
.
(b)
Upon the lieutenant governor's issuance of a certificate of withdrawal under Section
67-1a-6.5
, the withdrawing entity shall submit to the county recorder the original:
(i)
notice of impending boundary action, as defined in Section
67-1a-6.5
, that meets
the requirements of Subsection
67-1a-6.5(3)
;
(ii)
approved final local entity plat, as defined in Section
67-1a-6.5
; and
(iii)
certificate of withdrawal.
(12)
A withdrawal under this section is effective the day on which the lieutenant governor
issues a certificate of withdrawal under Section
67-1a-6.5
.
Section 6. Section
17B-1-511
is amended to read:
17B-1-511
. Continuation of tax levy or assessment after withdrawal to pay for
proportionate share of district bonds.
(1)
Other than as provided in Subsection
(2)
, and unless an escrow trust fund is established
and funded pursuant to Subsection
17B-1-510(5)(j)
, property within the withdrawn area
shall continue after withdrawal to be taxable by the special district:
(a)
for the purpose of paying the withdrawn area's just proportion of the special district's
general obligation bonds or lease obligations payable from property taxes with
respect to lease revenue bonds issued by a local building authority on behalf of the
special district, other than those bonds treated as revenue bonds under Subsection
17B-1-510(5)(i)
, until the bonded indebtedness has been satisfied; and
(b)
to the extent and for the years necessary to generate sufficient revenue that, when
combined with the revenues from the district remaining after withdrawal, is sufficient
to provide for the payment of principal and interest on the district's general obligation
bonds that are treated as revenue bonds under Subsection
17B-1-510(5)(i)
.
(2)
For a special district funded predominately by revenues other than property taxes,
service charges, or assessments based upon an allotment of acre-feet of water, property
within the withdrawn area shall continue to be taxable by the special district for
purposes of paying the withdrawn area's proportionate share of bonded indebtedness or
judgments against the special district incurred
prior to
before:

(a)
the date the petition was filed
.
; or
(b)
the date the garbage disposal district's board of trustees received the notice of intent
to withdraw under Section
17B-1-505.7
.
(3)
An area withdrawn from an infrastructure financing district remains subject to any
taxes, fees, and assessments imposed by the infrastructure financing district until
obligations allocable to the withdrawn area are paid.
(4)
Except as provided in Subsections
(1)
,
(2
), and
(3)
, upon withdrawal, the withdrawing
area is relieved of all other taxes, assessments, and charges levied by the district,
including taxes and charges for the payment of revenue bonds and maintenance and
operation cost of the special district.
Section 7. Section
17B-1-512
is amended to read:
17B-1-512
. Filing of notice and plat -- Recording requirements -- Contest period
-- Judicial review.
(1)
(a)
Within the time specified in Subsection
(1)(b)
, the board of trustees shall file with
the lieutenant governor:
(i)
a copy of a notice of an impending boundary action, as defined in Section
67-1a-6.5
, that meets the requirements of Subsection
67-1a-6.5(3)
; and
(ii)
a copy of an approved final local entity plat, as defined in Section
67-1a-6.5
.
(b)
The board of trustees shall file the documents listed in Subsection
(1)(a)
:
(i)
within 10 days after adopting a resolution approving a withdrawal under Section
17B-1-510
;
(ii)
on or before January 31 of the year following
:

(A)
the board of trustees' receipt of a notice or copy described in Subsection
(1)(c)
(1)(c)(i)
, if the board of trustees receives the notice or copy
between July 1
and December 31
on or after July 1 and before January 1
; or
(B)
the board of trustees entering into an agreement described in Subsection
(1)(c)(ii)
, if the agreement is executed by both parties on or after July 1 and
before January 1; and
(iii)
on or before the July 31 following
:

(A)
the board of trustees' receipt of a notice or copy described in Subsection
(1)(c)
(1)(c)(i)
, if the board of trustees receives the notice or copy
between January 1
and June 30
on or after January 1 and before June 30; or
(B)
the board of trustees entering into an agreement described in Subsection
(1)(c)(ii)
, if the agreement is executed by both parties on or after January 1 and
before June 30
.
(c)
The board of trustees shall comply with the requirements described in Subsection
(1)(b)(ii)
or
(iii)
after:
(i)
receiving:
(A)
a notice under Subsection
10-2-813(2)
of an automatic withdrawal under
Subsection
17B-1-502(2)
;
(B)
a copy of the municipal legislative body's resolution approving an automatic
withdrawal under Subsection
17B-1-502(3)(a)
; or
(C)
a
notice of a withdrawal of a municipality from a special district under Section
17B-1-502
; or
(ii)
entering into an agreement with a municipality
or county
under Subsection
17B-1-505(5)(a)(ii)(A)
or
(5)(b)
.
(d)
Upon the lieutenant governor's issuance of a certificate of withdrawal under Section
67-1a-6.5
, the board shall:
(i)
if the withdrawn area is located within the boundary of a single county, submit to
the recorder of that county:
(A)
the original:
(I)
notice of an impending boundary action;
(II)
certificate of withdrawal; and
(III)
approved final local entity plat; and
(B)
if applicable, a certified copy of the resolution or notice referred to in
Subsection
(1)(b)
; or
(ii)
if the withdrawn area is located within the boundaries of more than a single
county, submit:
(A)
the original of the documents listed in Subsections
(1)(d)(i)(A)(I)
, (II), and
(III) and, if applicable, a certified copy of the resolution or notice referred to in
Subsection
(1)(b)
to one of those counties; and
(B)
a certified copy of the documents listed in Subsections
(1)(d)(i)(A)(I)
, (II), and
(III) and a certified copy of the resolution or notice referred to in Subsection
(1)(b)
to each other county.
(2)
A withdrawal shall be effective, subject to the conditions of the withdrawal resolution,
if applicable, upon the lieutenant governor's issuance of the certificate of withdrawal
under Section
67-1a-6.5
, for:
(a)
a withdrawal under Section
17B-1-510
;
(b)
an automatic withdrawal under Subsection
17B-1-502(3)
; or
(c)
the withdrawal of an eligible area from a district under Section
17B-1-505
.
(2)
(a)
Upon the lieutenant governor's issuance of the certificate of withdrawal under
Section
67-1a-6.5
for a withdrawal under Section
17B-1-510
, for an automatic
withdrawal under Subsection
17B-1-502(3)
, or for the withdrawal of a municipality
from a special district under Section
17B-1-505
, the withdrawal shall be effective,
subject to the conditions of the withdrawal resolution, if applicable.
(b)
An automatic withdrawal under Subsection
17B-1-502(3)
shall be effective upon
the lieutenant governor's issuance of a certificate of withdrawal under Section
67-1a-6.5
.
(3)
(a)
The special district may provide for the publication of any resolution approving or
denying the withdrawal of an area:
(i)
in a newspaper of general circulation in the area proposed for withdrawal; and
(ii)
as required in Section
45-1-101
.
(b)
In lieu of publishing the entire resolution, the special district may publish a notice of
withdrawal or denial of withdrawal, containing:
(i)
the name of the special district;
(ii)
a description of the area proposed for withdrawal;
(iii)
a brief explanation of the grounds on which the board of trustees determined to
approve or deny the withdrawal; and
(iv)
the times and place where a copy of the resolution may be examined, which shall
be at the place of business of the special district, identified in the notice, during
regular business hours of the special district as described in the notice and for a
period of at least 30 days after the publication of the notice.
(4)
Any sponsor of the petition or receiving entity may contest the board's decision to deny
a withdrawal of an area from the special district by submitting a request, within 60 days
after the resolution is adopted under Section
17B-1-510
, to the board of trustees,
suggesting terms or conditions to mitigate or eliminate the conditions upon which the
board of trustees based
its
the board's
decision to deny the withdrawal.
(5)
Within 60 days after the request under Subsection
(4)
is submitted to the board of
trustees, the board may consider the suggestions for mitigation and adopt a resolution
approving or denying the request in the same manner as provided in Section
17B-1-510

with respect to the original resolution denying the withdrawal and file a notice of the
action as provided in Subsection
(1)
.
(6)
(a)
Any person in interest may seek judicial review of:
(i)
the board of trustees' decision to withdraw an area from the special district;
(ii)
the terms and conditions of a withdrawal
approved under Section
17B-1-510
or
Subsection
(5)
; or
(iii)
the board's decision to deny a withdrawal.
(b)
Judicial review under this Subsection
(6)
shall be initiated by filing an action in the
district court in the county in which a majority of the area proposed to be withdrawn
is located:
(i)
if the resolution approving or denying the withdrawal is published under
Subsection
(3)
, within 60 days after the publication or after the board of trustees'
denial of the request under Subsection
(5)
;
(ii)
if the resolution is not published pursuant to Subsection
(3)
, within 60 days after
the resolution approving or denying the withdrawal is adopted; or
(iii)
if a request is submitted to the board of trustees of a special district under
Subsection
(4)
, and the board adopts a resolution under Subsection
(5)
, within 60
days after the board adopts a resolution under Subsection
(5)
unless the resolution
is published under Subsection
(3)
, in which event the action shall be filed within
60 days after the publication.
(c)
A court in which an action is filed under this Subsection
(6)
may not overturn, in
whole or in part, the board of trustees' decision to approve or reject the withdrawal
unless:
(i)
the court finds the board of trustees' decision to be arbitrary or capricious; or
(ii)
the court finds that the board materially failed to follow the procedures set forth
in this part.
(d)
A court may award costs and expenses of an action under this section, including
reasonable attorney fees, to the prevailing party.
(7)
After the applicable contest period under Subsection
(4)
or
(6)
, no person may contest
the board of trustees' approval or denial of withdrawal for any cause.
Section 8.
Effective Date.
This bill takes effect on
May 6, 2026
.
3-12-26 9:38 AM