Section 1310 – Notice to lieutenant governor — Recording requirements — Distribution of remaining assets.

Effective 7/1/2017
17B-1-1310. Notice to lieutenant governor — Recording requirements — Distribution of remaining assets.

• (1) The administrative body, shall file with the lieutenant governor 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):
  • (a) within 30 days after the day on which the administrative body adopts a resolution approving the dissolution of an inactive local district; or
  • (b) within 30 days after the day on which a majority of the voters within an active local district approve the dissolution of the local district in an election described in Subsection 17B-1-1309(2).

• (2) Upon the lieutenant governor’s issuance of a certificate of dissolution under Section 67-1a-6.5, the administrative body shall:
  • (a) if the local district was located within the boundary of a single county, submit to the recorder of that county:
    • (i) the original:
      • (A) notice of an impending boundary action; and
      • (B) certificate of dissolution; and
    • (ii) a certified copy of the resolution that the administrative body adopts under Subsection 17B-1-1308(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:
      • (A) the original notice of an impending boundary action and certificate of dissolution; and
      • (B) if applicable, a certified copy of the resolution that the administrative body adopts under Subsection 17B-1-1308(1); and
    • (ii) submit to the recorder of each other county:
      • (A) a certified copy of the notice of an impending boundary action and certificate of dissolution; and
      • (B) if applicable, a certified copy of the resolution that the administrative body adopts under Subsection 17B-1-1308(1).

• (3) Upon the lieutenant governor’s issuance of the certificate of dissolution under Section 67-1a-6.5, the local district is dissolved.

• (4)
  • (a) After the dissolution of a local district under this part, the administrative body shall use any assets of the local district remaining after paying all debts and other obligations of the local district to pay costs associated with the dissolution process.
  • (b) If the administrative body is not the board of trustees of the dissolved local district, the administrative body shall pay any costs of the dissolution process remaining after exhausting the remaining assets of the local district as described in Subsection (4)(a).
  • (c) If the administrative body is the board of trustees of the dissolved local district, each entity that has committed to provide a service that the dissolved local district previously provided, as described in Subsection 17B-1-1308(2)(b), shall pay, in the same proportion that the services the entity commits to provide bear to all of the services the local district provided, any costs of the dissolution process remaining after exhausting the remaining assets of the dissolved local district described in Subsection (4)(a).

• (5)
  • (a) The administrative body shall distribute any assets of the local district that remain after the payment of debts, obligations, and costs under Subsection (4) in the following order of priority:
    • (i) if there is a readily identifiable connection between the remaining assets and a financial burden borne by the real property owners in the dissolved local district, proportionately to those real property owners;
    • (ii) if there is a readily identifiable connection between the remaining assets and a financial burden borne by the recipients of a service that the dissolved local district provided, proportionately to those recipients; and
    • (iii) subject to Subsection (6), to each entity that has committed to provide a service that the dissolved local district previously provided, as described in Subsection 17B-1-1309(1)(b)(ii), in the same proportion that the services the entity commits to provide bear to all of the services the local district provided.

• (6) An entity that receives cash reserves of the dissolved local district under Subsection (5)(a)(iii) may not use the cash reserves:
  • (a) in any way other than for the purpose the local district originally intended; or
  • (b) in any area other than within the area that the dissolved local district previously served.

Enacted by Chapter 248, 2017 General Session