17B-1-1308 - Dissolution resolution -- Limitations on dissolution -- Distribution of remaining assets -- Notice to lieutenant governor -- Recording requirements.
17B-1-1308. Dissolution resolution -- Limitations on dissolution -- Distribution ofremaining assets -- Notice to lieutenant governor -- Recording requirements.
(1) After the public hearing required under Section 17B-1-1306 and subject toSubsection (2), the administrative body may adopt a resolution approving dissolution of the localdistrict.
(2) A resolution under Subsection (1) may not be adopted unless:
(a) any outstanding debt of the local district is:
(i) satisfied and discharged in connection with the dissolution; or
(ii) assumed by another governmental entity with the consent of all the holders of thatdebt and all the holders of other debts of the local district;
(b) for a local district that has provided service during the preceding three years orundertaken planning or other activity preparatory to providing service:
(i) another entity has committed to provide the same service to the area being served orproposed to be served by the local district; and
(ii) all who are to receive the service have consented to the service being provided by theother entity; and
(c) all outstanding contracts to which the local district is a party are resolved throughmutual termination or the assignment of the district's rights, duties, privileges, andresponsibilities to another entity with the consent of the other parties to the contract.
(3) (a) (i) Any assets of the local district remaining after paying all debts and otherobligations of the local district shall be used to pay costs associated with the dissolution processunder this part.
(ii) Any costs of the dissolution process remaining after exhausting the remaining assetsof the local district under Subsection (3)(a)(i) shall be paid by the administrative body.
(b) Any assets of the local district remaining after application of Subsection (3)(a) shallbe distributed:
(i) proportionately to the owners of real property within the dissolved local district ifthere is a readily identifiable connection between a financial burden borne by the real propertyowners in the district and the remaining assets; or
(ii) except as provided in Subsection (3)(b)(i), to each county, city, or town in which thedissolved local district was located before dissolution in the same proportion that the land area ofthe local district located within the unincorporated area of the county or within the city or townbears to the total local district land area.
(4) (a) The administrative body shall:
(i) within 30 days after adopting a resolution approving dissolution, file with thelieutenant governor a copy of a notice of an impending boundary action, as defined in Section67-1a-6.5, that meets the requirements of Subsection 67-1a-6.5(3); and
(ii) upon the lieutenant governor's issuance of a certificate of dissolution under Section67-1a-6.5:
(A) if the local district was located within the boundary of a single county, submit to therecorder of that county:
(I) the original:
(Aa) notice of an impending boundary action; and
(Bb) certificate of dissolution; and
(II) a certified copy of the resolution adopted under Subsection (1); or
(B) if the local district was located within the boundaries of more than a single county:
(I) submit to the recorder of one of those counties:
(Aa) the original of the documents listed in Subsections (4)(a)(ii)(A)(I)(Aa) and (Bb);and
(Bb) a certified copy of the resolution adopted under Subsection (1); and
(II) submit to the recorder of each other county:
(Aa) a certified copy of the documents listed in Subsections (4)(a)(ii)(A)(I)(Aa) and(Bb); and
(Bb) a certified copy of the resolution adopted under Subsection (1).
(b) Upon the lieutenant governor's issuance of the certificate of dissolution under Section67-1a-6.5, the local district is dissolved.
Amended by Chapter 350, 2009 General Session