2023 Utah Code › Title 17B - Limited Purpose Local Government Entities - Special Districts › Chapter 2a - Provisions Applicable to Different Types of Special Districts › Part 4 - Improvement District Act › Section 407 - Nonfunctioning improvement district -- Replacing board of trustees.

Effective 2/27/2023
17B-2a-407.
Nonfunctioning improvement district -- Replacing board of trustees.
(1) As used in this section:
(a) "Applicable certificate" means the same as that term is defined in Subsection 67-1a-6.5(1)(a).
(b)
(i) "Non-functioning improvement district" means an improvement district:
(A) for which the lieutenant governor issues an applicable certificate on or after July 1, 2022, but before October 15, 2023;
(B) for which the legislative body of a county elected to be the board of trustees of the district under Subsection 17B-2a-404(3)(a); and
(C)
(I) for which the responsible body has not, within 100 days after the day on which the lieutenant governor issued the applicable certificate, complied with the recording requirements described in Subsection 17B-1-215(2); or
(II) whose board of trustees has not, within 100 days after the day on which the lieutenant governor issued the applicable certificate, held a meeting as the board of trustees of the improvement district, that was noticed and held in accordance with the requirements of Title 52, Chapter 4, Open and Public Meetings Act.
(ii) "Non-functioning improvement district" does not include an improvement district that has emerged from non-functioning status under Subsection (6)(c)(ii).
(2)
(a) The board of trustees of a non-functioning improvement district may not, after the 100-day period described in Subsection (1)(b)(i)(C)(I), take any action as the board of trustees or on behalf of the non-functioning improvement district.
(b) Any action taken in violation of Subsection (2)(a) is void.
(3)
(a) An owner of land located within the boundaries of a non-functioning improvement district may file with the lieutenant governor a request to replace the board of trustees with a new board of trustees.
(b) A new board of trustees described in Subsection (3)(a) shall comprise three individuals who are:
(i) owners of land located within the boundaries of the improvement district; or
(ii) agents of owners of land located within the boundaries of the improvement district.
(4) A request described in Subsection (3) shall include:
(a) the name and mailing address of the land owner who files the request;
(b) the name of the improvement district;
(c) a copy of the applicable certificate for the improvement district;
(d) written consent to the request from each owner of land located within the boundaries of the improvement district; and
(e) the names and mailing addresses of three individuals who will serve as the board of trustees of the improvement district until a new board of trustees is organized under Subsection (9).
(5) Within 14 days after the day on which the lieutenant governor receives a request described in Subsections (3) and (4), the lieutenant governor shall:
(a) determine whether:
(i) the district is a non-functioning improvement district;
(ii) the request complies with Subsection (4); and
(b) if the lieutenant governor determines that the requirements described in Subsection (5)(a) are met, grant the request by issuing a certificate of replacement described in Subsection (6).
(6) A certificate of replacement shall:
(a) state the name of the improvement district;
(b) reference the applicable certificate for the improvement district;
(c) declare that, upon issuance of the certificate:
(i) the existing board of trustees for the improvement district is dissolved and replaced by an interim board of trustees consisting of the three individuals described in Subsection (4)(e); and
(ii) the improvement district is removed from nonfunctioning status and is, beginning at that point in time, a functioning improvement district.
(7) The interim board of trustees described in Subsection (6)(c)(i) shall record, in the recorder's office for a county in which all or a portion of the improvement district exists:
(a) the original of the certificate of replacement; and
(b) the original or a copy of:
(i) the items described in Subsections 17B-1-215(2)(a)(i)(A), (B), and (C); and
(ii) if applicable, a copy of each resolution adopted under Subsection 17B-1-213(5).
(8) Until a new board of trustees is organized under Subsection (9):
(a) the interim board of trustees has the full authority of a board of trustees of an improvement district; and
(b) a majority of the owners of land in the improvement district:
(i) may appoint an individual described in Subsection (3)(b) to fill a vacancy on the interim board of trustees; and
(ii) shall file written notification of the appointment of an individual described in Subsection (8)(b)(i) with the lieutenant governor.
(9) Within 90 days after the day on which at least 20 persons own land within the improvement district, the interim board of trustees described in Subsection (6)(c)(i) shall dissolve and be replaced by a board of trustees described in Subsections 17B-1-302(1) through (3)(a), except that:
(a) the board of trustees shall comprise three members, appointed by the lieutenant governor, who are owners of property in the district, agents of an owner of property in the district, or residents of the district;
(b) Subsections 17B-1-302(3)(c) through (6) and Section 17B-2a-404 do not apply to the improvement district; and
(c) a member of the legislative body of the county may not serve as a member of the board of trustees.
Enacted by Chapter 15, 2023 General Session
Revisor instructions Chapter 16, 2023 General Session