17B-2a-1007 - Contract assessments.
17B-2a-1007. Contract assessments.
(1) As used in this section:
(a) "Assessed land" means:
(i) for a contract assessment under a water contract with a private water user, the landowned by the private water user that receives the beneficial use of water under the water contract;or
(ii) for a contract assessment under a water contract with a public water user, the landwithin the boundaries of the public water user that is within the boundaries of the waterconservancy district and that receives the beneficial use of water under the water contract.
(b) "Contract assessment" means an assessment levied as provided in this section by awater conservancy district on assessed land.
(c) "Governing body" means:
(i) for a county, city, or town, the legislative body of the county, city, or town;
(ii) for a local district, the board of trustees of the local district;
(iii) for a special service district:
(A) the legislative body of the county, city, or town that established the special servicedistrict, if no administrative control board has been appointed under Section 17D-1-301; or
(B) the administrative control board of the special service district, if an administrativecontrol board has been appointed under Section 17D-1-301; and
(iv) for any other political subdivision of the state, the person or body with authority togovern the affairs of the political subdivision.
(d) "Petitioner" means a private petitioner or a public petitioner.
(e) "Private petitioner" means an owner of land within a water conservancy district whosubmits a petition to a water conservancy district under Subsection (3) to enter into a watercontract with the district.
(f) "Private water user" means an owner of land within a water conservancy district whoenters into a water contract with the district.
(g) "Public petitioner" means a political subdivision of the state:
(i) whose territory is partly or entirely within the boundaries of a water conservancydistrict; and
(ii) that submits a petition to a water conservancy district under Subsection (3) to enterinto a water contract with the district.
(h) "Public water user" means a political subdivision of the state:
(i) whose territory is partly or entirely within the boundaries of a water conservancydistrict; and
(ii) that enters into a water contract with the district.
(i) "Water contract" means a contract between a water conservancy district and a privatewater user or a public water user under which the water user purchases, leases, or otherwiseacquires the beneficial use of water from the water conservancy district for the benefit of:
(i) land owned by the private water user; or
(ii) land within the public water user's boundaries that is also within the boundaries ofthe water conservancy district.
(j) "Water user" means a private water user or a public water user.
(2) A water conservancy district may levy a contract assessment as provided in thissection.
(3) (a) The governing body of a public petitioner may authorize its chief executive officerto submit a written petition on behalf of the public petitioner to a water conservancy districtrequesting to enter into a water contract.
(b) A private petitioner may submit a written petition to a water conservancy districtrequesting to enter into a water contract.
(c) Each petition under this Subsection (3) shall include:
(i) the petitioner's name;
(ii) the quantity of water the petitioner desires to purchase or otherwise acquire;
(iii) a description of the land upon which the water will be used;
(iv) the price to be paid for the water;
(v) the amount of any service, turnout, connection, distribution system, or other charge tobe paid;
(vi) whether payment will be made in cash or annual installments;
(vii) a provision requiring the contract assessment to become a lien on the land for whichthe water is petitioned and is to be allotted; and
(viii) an agreement that the petitioner is bound by the provisions of this part and the rulesand regulations of the water conservancy district board of trustees.
(4) (a) If the board of a water conservancy district desires to consider a petition submittedby a petitioner under Subsection (3), the board shall:
(i) publish notice of the petition and of the hearing required under Subsection (4)(a)(ii) atleast once a week in two successive weeks in a newspaper of general circulation within thecounty in which the political subdivision or private petitioner's land, as the case may be, islocated; and
(ii) hold a public hearing on the petition.
(b) Each notice under Subsection (4)(a)(i) shall:
(i) state that a petition has been filed and that the district is considering levying a contractassessment; and
(ii) give the date, time, and place of the hearing required under Subsection (4)(a)(ii).
(c) (i) At each hearing required under Subsection (4)(a)(ii), the board of trustees of thewater conservancy district shall:
(A) allow any interested person to appear and explain why the petition should not begranted; and
(B) consider each written objection to the granting of the petition that the board receivesbefore or at the hearing.
(ii) The board of trustees may adjourn and reconvene the hearing as the board considersappropriate.
(d) (i) Any interested person may file with the board of the water conservancy district, ator before the hearing under Subsection (4)(a)(ii), a written objection to the district's granting apetition.
(ii) Each person who fails to submit a written objection within the time provided underSubsection (4)(d)(i) is considered to have consented to the district's granting the petition andlevying a contract assessment.
(5) After holding a public hearing as required under Subsection (4)(a)(ii), the board oftrustees of a water conservancy district may:
(a) deny the petition; or
(b) grant the petition, if the board considers granting the petition to be in the bestinterests of the district.
(6) The board of a water conservancy district that grants a petition under this sectionmay:
(a) make an allotment of water for the benefit of assessed land;
(b) authorize any necessary construction to provide for the use of water upon the termsand conditions stated in the water contract;
(c) divide the district into units and fix a different rate for water purchased or otherwiseacquired and for other charges within each unit, if the rates and charges are equitable, althoughnot equal and uniform, for similar classes of services throughout the district; and
(d) levy a contract assessment on assessed land.
(7) (a) The board of trustees of each water conservancy district that levies a contractassessment under this section shall:
(i) cause a certified copy of the resolution, ordinance, or order levying the assessment tobe recorded in the office of the recorder of each county in which assessed land is located; and
(ii) on or before July 1 of each year after levying the contract assessment, certify to theauditor of each county in which assessed land is located the amount of the contract assessment.
(b) Upon the recording of the resolution or ordinance under Subsection (7)(a)(i), thecontract assessment associated with allotting water to the assessed land under the water contractbecomes a perpetual lien on the assessed land.
(c) Each county in which assessed land is located shall collect the contract assessment inthe same manner as taxes levied by the county.
(8) (a) The board of trustees of each water conservancy district that levies a contractassessment under this section shall:
(i) hold a public hearing, before August 8 of each year in which a contract assessment islevied, to hear and consider objections filed under Subsection (8)(b); and
(ii) twice publish a notice, at least a week apart:
(A) (I) in a newspaper of general circulation in each county with assessed land includedwithin the district boundaries; or
(II) if there is no newspaper of general circulation within the county, in a newspaper ofgeneral circulation in an adjoining county;
(B) that contains:
(I) a general description of the assessed land;
(II) the amount of the contract assessment; and
(III) the time and place of the public hearing under Subsection (8)(a)(i).
(b) An owner of assessed land within the water conservancy district who believes that thecontract assessment on the owner's land is excessive, erroneous, or illegal may, before thehearing under Subsection (8)(a)(i), file with the board of trustees a verified, written objection tothe assessment, stating the grounds for the objection.
(c) (i) At each hearing under Subsection (8)(a)(i), the board of trustees shall hear andconsider the evidence and arguments supporting each objection.
(ii) After hearing and considering the evidence and arguments supporting an objection,the board of trustees:
(A) shall enter a written order, stating its decision; and
(B) may modify the assessment.
(d) (i) An owner of assessed land may file a petition in district court seeking review of aboard of trustees' order under Subsection (8)(c)(i)(A).
(ii) Each petition under Subsection (8)(d)(i) shall:
(A) be filed within 30 days after the board enters its written order;
(B) state specifically the part of the board's order for which review is sought; and
(C) be accompanied by a bond with good and sufficient security in an amount notexceeding $200, as determined by the court clerk.
(iii) If more than one owner of assessed land seeks review, the court may, upon ashowing that the reviews may be consolidated without injury to anyone's interests, consolidatethe reviews and hear them together.
(iv) The court shall act as quickly as possible after a petition is filed.
(v) A court may not disturb a board of trustees' order unless the court finds that thecontract assessment on the petitioner's assessed land is manifestly disproportionate toassessments imposed upon other land in the district.
(e) If no petition under Subsection (8)(d) is timely filed, the contract assessment isconclusively considered to have been made in proportion to the benefits conferred on the land inthe district.
(9) Each resolution, ordinance, or order under which a water conservancy district levied aClass B, Class C, or Class D assessment before April 30, 2007 under the law in effect at the timeof the levy is validated, ratified, and confirmed, and a water conservancy district may continue tolevy the assessment according to the terms of the resolution, ordinance, or order.
(10) A contract assessment is not a levy of an ad valorem property tax and is not subjectto the limits stated in Section 17B-2a-1006.
Amended by Chapter 360, 2008 General Session