Rep. Norm Thurston — Voting Record

Bill

Number

S.B. 201 (2024GS)

Sponsor

Sen. Vickers, E.

Final action

Governor Signed 3/21/2024

Outcome

Became law — signed by Gov. Spencer J. Cox

Summary

What it does

• This bill:
• requires feasibility request sponsors to pay the estimated cost of a feasibility study and a supplemental feasibility study;
• modifies the process relating to the Utah Population Committee's determination of population and related information for a proposed incorporation;
• modifies the period within which the lieutenant governor is required to engage a feasibility consultant to begin after the feasibility request sponsors have paid the estimated feasibility study cost;
• requires a newly incorporated municipality to reimburse feasibility request sponsors for the cost of a feasibility study and any supplemental feasibility study; and
• modifies a provision relating to the costs of incorporation and the fund that the lieutenant governor uses to pay those costs.

Every vote on this bill

Bill text

MUNICIPAL INCORPORATION MODIFICATIONS
GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Evan J. Vickers
House Sponsor: 
 Calvin R. Musselman
LONG TITLE
General Description:
This bill modifies provisions relating to municipal incorporations.
Highlighted Provisions:
This bill:
▸ requires feasibility request sponsors to pay the estimated cost of a feasibility study
and a supplemental feasibility study;
▸ modifies the process relating to the Utah Population Committee's determination of
population and related information for a proposed incorporation;
▸ modifies the period within which the lieutenant governor is required to engage a
feasibility consultant to begin after the feasibility request sponsors have paid the
estimated feasibility study cost;
▸ requires a newly incorporated municipality to reimburse feasibility request sponsors
for the cost of a feasibility study and any supplemental feasibility study; and
▸ modifies a provision relating to the costs of incorporation and the fund that the
lieutenant governor uses to pay those costs.
Money Appropriated in this Bill:
None
Other Special Clauses:
None
Utah Code Sections Affected:
AMENDS:
10-2a-102
, as last amended by Laws of Utah 2023, Chapter 224
10-2a-201.5
, as last amended by Laws of Utah 2023, Chapter 224
10-2a-202
, as last amended by Laws of Utah 2023, Chapter 224
10-2a-204
, as last amended by Laws of Utah 2023, Chapter 224
10-2a-204.3
, as enacted by Laws of Utah 2023, Chapter 224
10-2a-205
, as last amended by Laws of Utah 2023, Chapters 16, 224
10-2a-206
, as last amended by Laws of Utah 2023, Chapter 224
10-2a-220
, as last amended by Laws of Utah 2023, Chapter 224
Be it enacted by the Legislature of the state of Utah:
Section 1. Section 
10-2a-102
 is amended to read:
10-2a-102.
Definitions.
(1) As used in this part and Part 2, Incorporation of a Municipality:
(a) "Contact sponsor" means the person designated in the feasibility request as the
contact sponsor under Subsection [
10-2a-202
(2)(d)
] 
10-2a-202
(3)(b)
.
(b) (i) "Contiguous" means, except as provided in Subsection (1)(b)(ii), the same as
that term is defined in Section 
10-1-104
.
(ii) "Contiguous" does not include a circumstance where:
(A) two areas of land are only connected by a strip of land between geographically
separate areas; and
(B) the distance between the geographically separate areas described in Subsection
(1)(b)(ii)(A) is greater than the average width of the strip of land connecting the geographically
separate areas.
(c) "Feasibility consultant" means a person or firm:
(i) with expertise in the processes and economics of local government; and
(ii) who is independent of and not affiliated with a county or sponsor of a petition to
incorporate.
(d) "Feasibility request" means a request, described in Section 
10-2a-202
, for a
feasibility study for the proposed incorporation of a municipality.
(e) (i) "Municipal service" means any of the following that are publicly provided:
(A) culinary water;
(B) secondary water;
(C) sewer service;
(D) storm drainage or flood control;
(E) recreational facilities or parks;
(F) electrical power generation or distribution;
(G) construction or maintenance of local streets and roads;
(H) street lighting;
(I) curb, gutter, and sidewalk maintenance;
(J) law or code enforcement service;
(K) fire protection service;
(L) animal services;
(M) planning and zoning;
(N) building permits and inspections;
(O) refuse collection; or
(P) weed control.
(ii) "Municipal service" includes the physical facilities required to provide a service
described in Subsection (1)(e)(i).
(f) "Private," with respect to real property, means taxable property.
(2) For purposes of this part:
(a) the owner of real property shall be the record title owner according to the records of
the county recorder on the date of the filing of the feasibility request or petition for
incorporation; and
(b) the assessed fair market value of private real property shall be determined
according to the last assessment roll for county taxes before the filing of the feasibility request
or petition for incorporation.
(3) For purposes of each provision of this part that requires the owners of private real
property covering a percentage or fraction of the total private land area within an area to sign a
feasibility request or a petition for incorporation:
(a) a parcel of real property may not be included in the calculation of the required
percentage or fraction unless the feasibility request or petition for incorporation is signed by:
(i) except as provided in Subsection (3)(a)(ii), owners representing a majority
ownership interest in that parcel; or
(ii) if the parcel is owned by joint tenants or tenants by the entirety, 50% of the number
of owners of that parcel;
(b) the signature of a person signing a feasibility request or a petition for incorporation
in a representative capacity on behalf of an owner is invalid unless:
(i) the person's representative capacity and the name of the owner the person represents
are indicated on the feasibility request or petition for incorporation with the person's signature;
and
(ii) the person provides documentation accompanying the feasibility request or petition
for incorporation that substantiates the person's representative capacity; and
(c) subject to Subsection (3)(b), a duly appointed personal representative may sign a
feasibility request or a petition for incorporation on behalf of a deceased owner.
Section 2. Section 
10-2a-201.5
 is amended to read:
10-2a-201.5.
Qualifications for incorporation.
(1) (a) An area may incorporate as a town in accordance with this part if the area:
(i) is contiguous;
(ii) has a population of at least 100 people, but fewer than 1,000 people; and
(iii) is not already part of a municipality.
(b) An area may incorporate as a city in accordance with this part if the area:
(i) is contiguous;
(ii) has a population of 1,000 people or more; and
(iii) is not already part of a municipality.
(2) (a) An area may not incorporate under this part if:
(i) the area has a population of fewer than 100 people; or
(ii) except as provided in Subsection (2)(b), the area has an average population density
of fewer than seven people per square mile.
(b) Subsection (2)(a)(ii) does not prohibit incorporation of an area if:
(i) noncompliance with Subsection (2)(a)(ii) is necessary to connect separate areas that
share a demonstrable community interest; and
(ii) the area is contiguous.
(3) An area incorporating under this part may not include land owned by the United
States federal government unless:
(a) the area, including the land owned by the United States federal government, is
contiguous; and
(b) (i) incorporating the land is necessary to connect separate areas that share a
demonstrable community interest; or
(ii) excluding the land from the incorporating area would create an unincorporated
island within the proposed municipality.
(4) (a) Except as provided in Subsection (4)(b), an area incorporating under this part
may not include some or all of an area proposed for annexation in an annexation petition under
Section 
10-2-403
 that:
(i) was filed before the filing of the request for a feasibility study, described in Section
10-2a-202
, relating to the incorporating area; and
(ii) is still pending on the date the request for the feasibility study described in
Subsection (4)(a)(i) is filed.
(b) A feasibility request may propose for incorporation an area that includes some or
all of an area proposed for annexation in an annexation petition described in Subsection (4)(a)
if:
(i) the proposed annexation area that is part of the area proposed for incorporation does
not exceed 20% of the area proposed for incorporation;
(ii) the feasibility request complies with Subsections 
10-2a-202
(1) [
through (4)
]
, (3),
(4), and (5)
 with respect to excluding the proposed annexation area from the area proposed for
incorporation; and
(iii) excluding the area proposed for annexation from the area proposed for
incorporation would not cause the area proposed for incorporation to not be contiguous.
(c) Except as provided in Section 
10-2a-206
, the lieutenant governor shall consider
each feasibility request to which Subsection (4)(b) applies as not proposing the incorporation of
an area proposed for annexation.
(5) (a) An area incorporating under this part may not include part of a parcel of real
property and exclude part of that same parcel unless the owner of the parcel gives written
consent to exclude part of the parcel.
(b) A piece of real property that has more than one parcel number is considered to be a
single parcel for purposes of Subsection (5)(a) if owned by the same owner.
Section 3. Section 
10-2a-202
 is amended to read:
10-2a-202.
Feasibility request -- Requirements -- Limitations.
(1) [
The
] 
Subject to Subsection (2), the
 process to incorporate a contiguous area of a
county as a municipality is initiated by an individual filing a feasibility request, with the county
clerk of the county where the area proposed to be incorporated is located, that [
includes
]:
(a) 
includes
 the signatures of the owners of private real property that:
(i) is located within the area proposed to be incorporated;
(ii) covers at least 10% of the total private land area within the area; and
(iii) is, as of January 1 of the current year, equal in assessed fair market value to at least
7% of the assessed fair market value of all private real property within the area; [
and
]
(b) 
includes
 the typed or printed name and current residence address of each owner
signing the request[
.
]
; and
(c) is accompanied by the Utah Population Committee's written notice under
Subsection (2)(d)(ii).
(2) (a) Before submitting a feasibility request under Subsection (1), an individual
intending to file a feasibility request shall submit to the lieutenant governor a written request to
the Utah Population Committee.
(b) A written request under Subsection (2)(a) shall:
(i) request the Utah Population Committee to determine whether, on the date the
individual filed the request, the proposed municipality complied with the population,
population density, and contiguity requirements described in Section 
10-2a-201.5
;
(ii) provide a description of the contiguous area proposed to be incorporated as a
municipality; and
(iii) be accompanied by an accurate map or plat, prepared by a licensed surveyor,
showing a legal description of the boundary of the proposed municipality.
(c) Within seven business days after receiving a request under Subsection (2)(a), the
lieutenant governor shall transmit the request to the Utah Population Committee.
(d) Within 20 days after receiving a written request from the lieutenant governor under
Subsection (2)(c), the Utah Population Committee shall:
(i) determine whether, on the date the individual filed the request under Subsection
(2)(a), the proposed municipality complied with the population, population density, and
contiguity requirements described in Section 
10-2a-201.5
; and
(ii) provide a written notice of the determination to:
(A) the lieutenant governor; and
(B) the individual who submitted the request under Subsection (2)(a).
(e) An individual may not file a feasibility request under Subsection (1) unless the Utah
Population Committee determines that the proposed municipality complies with the population,
population density, and contiguity requirements described in Section 
10-2a-201.5
.
(f) A feasibility request may not be filed more than 30 days after the Utah Population
Committee's written determination under Subsection (2)(d).
[
(2)
] 
(3)
 The feasibility request shall include:
(a) [
a
] 
the same
 description of the contiguous area proposed to be incorporated as a
municipality 
that was provided to the Utah Population Committee under Subsection (2)(b)
;
(b) a designation of up to five signers of the request as sponsors, one of whom is
designated as the contact sponsor, with the mailing address and telephone number of each;
(c) an accurate map or plat, prepared by a licensed surveyor, showing [
a
] 
the same
 legal
description of the boundaries of the proposed municipality 
as was included with a request
submitted to the Utah Population Committee under Subsection (2)(b)
; [
and
]
(d) a copy of the Utah Population Committee's written determination under Subsection
(2)(d); and
[
(d)
] 
(e)
 a request that the lieutenant governor commission a study to determine the
feasibility of incorporating the area as a municipality.
[
(3)
] 
(4)
 The individual described in Subsection (1) shall, on the day on which the
individual files the feasibility request with the county clerk, provide to the lieutenant governor:
(a) written notice that the individual filed the feasibility request that indicates the day
on which the individual filed the feasibility request; and
(b) a complete copy of the feasibility request
, including a copy of the written
determination by the Utah Population Committee under Subsection (2)(d)
.
[
(4)
] 
(5)
 A feasibility request may not propose for incorporation an area that includes
some or all of an area that is the subject of a completed feasibility study or supplemental
feasibility study whose results comply with Subsection 
10-2a-205
(5)(a) unless:
(a) the proposed incorporation that is the subject of the completed feasibility study or
supplemental feasibility study has been defeated by the voters at an election under Section
10-2a-210
; or
(b) the time described in Subsection 
10-2a-208
(1) for filing an incorporation petition
based on the completed feasibility study or supplemental feasibility study has elapsed without
the sponsors filing an incorporation petition under Section 
10-2a-208
.
[
(5)
] 
(6)
 Sponsors may not file a feasibility request relating to the incorporation of a
town if the cumulative private real property that the sponsors own exceeds 40% of the total
private land area within the boundaries of the proposed town.
Section 4. Section 
10-2a-204
 is amended to read:
10-2a-204.
Processing a feasibility request -- Certification or rejection --
Processing priority -- Determination by the Utah Population Committee.
(1) Within 45 days after the day on which an individual files a feasibility request under
Section 
10-2a-202
, the county clerk shall:
(a) determine whether the feasibility request complies with Section 
10-2a-202
; and
(b) notify the lieutenant governor, in writing, of the determination made under
Subsection (1)(a) and the grounds for the determination.
(2) The county clerk:
(a) shall keep the lieutenant governor apprised of the county clerk's progress in making
the determination described in Subsection (1)(a); and
(b) may consult with the lieutenant governor in making the determination described in
Subsection (1)(a).
(3) Within five days after the day on which the county clerk provides the notification
described in Subsection (1)(b), the lieutenant governor shall:
(a) review the determination and the grounds for the determination to evaluate whether
the feasibility request complies with Section 
10-2a-202
; and
(b) (i) uphold the determination;
(ii) reverse the determination; or
(iii) require the county clerk to provide additional information that the lieutenant
governor identifies as necessary for the lieutenant governor to uphold or reverse the county
clerk's determination.
(4) If the office requires the county clerk to provide additional information under
Subsection (3)(b)(iii):
(a) the county clerk shall provide the additional information to the office within five
days after the day on which the office notifies the county clerk that the additional information
is required; and
(b) the office shall, within five days after the day on which the county clerk provides
the additional information, uphold or reverse the determination of the county clerk described in
Subsection (1)(b).
(5) If the lieutenant governor determines that the feasibility request complies with
Section 
10-2a-202
, the lieutenant governor shall:
(a) certify the request; 
and
(b) transmit written notification of the certification to the contact sponsor[
; and
]
.
[
(c) transmit written notification of the certification to the Utah Population
Committee.
]
(6) If the lieutenant governor determines that the feasibility request fails to comply
with Section 
10-2a-202
, the lieutenant governor shall reject the feasibility request and notify
the contact sponsor in writing of the rejection and the grounds for the rejection.
[
(7) (a) Within 20 days after the day on which the lieutenant governor transmits written
notification under Subsection (5)(c), the Utah Population Committee shall:
]
[
(i) determine whether, on the date the sponsors filed the feasibility request, the
proposed municipality complied with the population, population density, and contiguity
requirements described in Section 
10-2a-201.5
; and
]
[
(ii) provide notice of the determination to the lieutenant governor and the county
clerk.
]
[
(b) If the Utah Population Committee determines that a proposed municipality does
not comply with the population, population density, or contiguity requirements described in
Section 
10-2a-201.5
, the lieutenant governor shall rescind the certification described in
Subsection (5)(a) and reject the feasibility request.
]
[
(8)
] 
(7)
 The lieutenant governor shall certify or reject feasibility requests in the order
in which the requests are filed.
[
(9)
] 
(8)
 (a) If the lieutenant governor determines that the feasibility request fails to
comply with Section 
10-2a-202
, [
or rejects the feasibility request under Subsection (7)(b),
] the
sponsors may, subject to Section 
10-2a-206
, amend the feasibility request to correct the
deficiencies and refile the feasibility request with the county clerk.
(b) The sponsors shall submit any amended feasibility request within 90 days after the
day on which the lieutenant governor makes the determination or rejection described in
Subsection [
(9)(a)
] 
(8)(a)
.
(c) The sponsors may reuse a signature described in Subsection [
10-2a-202
(2)(a)
]
10-2a-202
(1)(a)
 that is on a rejected feasibility request or on an amended feasibility request
described in Subsection [
(9)(a)
] 
(8)(a)
.
(d) The county clerk and the lieutenant governor shall consider a feasibility request that
is amended and refiled under Subsection [
(9)(a)
] 
(8)(a)
 as a newly filed feasibility request and
process the feasibility request in accordance with this section.
Section 5. Section 
10-2a-204.3
 is amended to read:
10-2a-204.3.
Notice to property owners -- First public hearing.
(1) [
Unless the lieutenant governor rescinds the certification under Subsection
10-2a-204
(7)(b), the
] 
The
 county clerk shall:
(a) hold the first public hearing in relation to the proposed incorporation, at a location
approved by the lieutenant governor, no later than 30 days after the day on which the [
county
clerk receives the notice described in Subsection 
10-2a-204
(7)(a)(ii)
] 
lieutenant governor
certifies the feasibility request under Subsection 
10-2a-204
(5)
;
(b) publish notice of the hearing in accordance with Subsection 
10-2a-207
(7); and
(c) within seven calendar days after the day on which the [
county clerk receives the
notice described in Subsection 
10-2a-204
(7)(a)(ii)
] 
lieutenant governor certifies the feasibility
request under Subsection 
10-2a-204
(5)
, mail written notice of the proposed incorporation and
of the first public hearing described in this section to:
(i) each residence within, and each owner of real property located within:
(A) the proposed incorporation boundaries; and
(B) 300 feet of the proposed incorporation boundaries;
(ii) the contact sponsor; and
(iii) the lieutenant governor.
(2) The written notice provided by the county clerk under Subsections (1)(b) and (c)
shall include:
(a) the following statement:
"NOTICE OF PROPOSED INCORPORATION AND FIRST PUBLIC HEARING
You have received this notice because you reside or own property within an area
proposed for incorporation, or an area within 300 feet of an area proposed for incorporation.
The first public hearing in relation to the proposed incorporation will be held on [insert date,
time, and location]. The purpose of the first public hearing is to provide information regarding
the proposed incorporation, the incorporation process, including the process for deciding
whether to incorporate, and certain rights you may have in relation to the proposed
incorporation. A specified landowner, as defined in Utah Code Section 
10-2a-204.5
, may,
within 30 days after the day of the public hearing, request that the county clerk exclude all or
part of the specified landowner's land from the area proposed for incorporation. A specified
landowner may not request exclusion after the end of the 30-day period. Any owner of land
within a county where the area proposed for incorporation is located may, within 30 days after
the day of the public hearing, request that the county clerk include all or part of that land in the
area proposed for incorporation. An owner of land may not request inclusion after the end of
the 30-day period."; and
(b) a clear description of the area proposed for incorporation.
(3) Notwithstanding that the county conducts the first public hearing, the lieutenant
governor, or a designee of the lieutenant governor, shall:
(a) direct the proceedings at the first public hearing, with the assistance of the county
clerk as needed;
(b) provide information regarding the proposed incorporation, the incorporation
process, including the process for deciding whether to incorporate, and the rights citizens may
have in relation to the proposed incorporation;
(c) describe the process by which a specified landowner may request that the county
clerk exclude all or part of the specified landowner's land from the area proposed for
incorporation;
(d) describe the process by which an owner of land described in Subsection
10-2a-204.5
(2)(b) may request that the county clerk include all or part of that land in the area
proposed for incorporation;
(e) describe the criteria for granting a request for exclusion or inclusion of land; and
(f) answer questions from individuals who attend the first public hearing.
(4) The contact sponsor, or an agent of the contact sponsor, and the county clerk, or an
employee of the county clerk designated by the county clerk, shall attend the first public
hearing.
(5) The county clerk shall:
(a) provide the location and equipment for the public hearing, subject to approval by
the lieutenant governor; and
(b) ensure compliance with the requirements of Title 52, Chapter 4, Open and Public
Meetings Act, in relation to the public hearing.
Section 6. Section 
10-2a-205
 is amended to read:
10-2a-205.
Feasibility study -- Feasibility study consultant -- Qualifications for
proceeding with incorporation.
(1) 
(a)
 [
Unless the lieutenant governor rescinds the certification under Subsection
10-2a-204
(7)(b), the
] 
The
 lieutenant governor shall, within [
] 
 days after the day on which
the lieutenant governor certifies a feasibility request under Subsection 
10-2a-204
(5)(a), [
in
accordance with Subsection (2), engage a feasibility consultant to conduct a feasibility study.
]
:
(i) estimate the cost of a feasibility study under this section; and
(ii) provide the estimated cost to the feasibility request sponsors.
(b) The feasibility request sponsors shall pay to the lieutenant governor the amount of
the estimated cost under Subsection (1)(a) of a feasibility study conducted on or after May 1,
2024.
(c) Within 90 days after the feasibility request sponsors pay the estimated feasibility
study cost under Subsection (1)(a), the lieutenant governor shall, in accordance with
Subsection (2), engage a feasibility consultant to conduct a feasibility study.
(2) The lieutenant governor shall:
(a) select a feasibility consultant in accordance with Title 63G, Chapter 6a, Utah
Procurement Code;
(b) ensure that the feasibility consultant:
(i) has expertise in the processes and economics of local government; and
(ii) is not affiliated with a sponsor of the feasibility request or the county in which the
proposed municipality is located; and
(c) require the feasibility consultant to:
(i) submit a draft of the feasibility study to each applicable person with whom the
feasibility consultant is required to consult under Subsection (3)(c) within 90 days after the day
on which the lieutenant governor engages the feasibility consultant to conduct the study;
(ii) allow each person to whom the consultant provides a draft under Subsection
(2)(c)(i) to review and provide comment on the draft;
(iii) submit a completed feasibility study, including a one-page summary of the results,
to the following within 120 days after the day on which the lieutenant governor engages the
feasibility consultant to conduct the feasibility study:
(A) the lieutenant governor;
(B) the county legislative body of the county in which the incorporation is proposed;
(C) the contact sponsor; and
(D) each person to whom the consultant provided a draft under Subsection (2)(c)(i);
and
(iv) attend the public hearings described in Section 
10-2a-207
 to present the feasibility
study results and respond to questions from the public.
(3) (a) The feasibility study shall include:
(i) an analysis of the population and population density within the area proposed for
incorporation and the surrounding area;
(ii) the current and projected five-year demographics and tax base within the
boundaries of the proposed municipality and surrounding area, including household size and
income, commercial and industrial development, and public facilities;
(iii) subject to Subsection (3)(b), the current and five-year projected cost of providing
municipal services to the proposed municipality, including administrative costs;
(iv) assuming the same tax categories and tax rates as currently imposed by the county
and all other current service providers, the present and five-year projected revenue for the
proposed municipality;
(v) an analysis of the risks and opportunities that might affect the actual costs described
in Subsection (3)(a)(iii) or revenues described in Subsection (3)(a)(iv) of the newly
incorporated municipality;
(vi) an analysis of new revenue sources that may be available to the newly incorporated
municipality that are not available before the area incorporates, including an analysis of the
amount of revenues the municipality might obtain from those revenue sources;
(vii) the projected tax burden per household of any new taxes that may be levied within
the proposed municipality within five years after incorporation;
(viii) the fiscal impact of the municipality's incorporation on unincorporated areas,
other municipalities, special districts, special service districts, and other governmental entities
in the county; and
(ix) if the county clerk excludes property from, or includes property in, the proposed
municipality under Section 
10-2a-204.5
, an update to the map and legal description described
in Subsection [
10-2a-202
(2)(c)
] 
10-2a-202
(3)(c)
.
(b) (i) In calculating the projected costs under Subsection (3)(a)(iii), the feasibility
consultant shall assume the proposed municipality will provide a level and quality of municipal
services that fairly and reasonably approximate the level and quality of municipal services that
are provided to the area of the proposed municipality at the time the feasibility consultant
conducts the feasibility study.
(ii) In calculating the current cost of a municipal service under Subsection (3)(a)(iii),
the feasibility consultant shall consider:
(A) the amount it would cost the proposed municipality to provide the municipal
service for the first five years after the municipality's incorporation; and
(B) the current municipal service provider's present and five-year projected cost of
providing the municipal service.
(iii) In calculating costs under Subsection (3)(a)(iii), the feasibility consultant shall
account for inflation and anticipated growth.
(c) In conducting the feasibility study, the feasibility consultant shall consult with the
following before submitting a draft of the feasibility study under Subsection (2)(c)(i):
(i) if the proposed municipality will include lands owned by the United States federal
government, the entity within the United States federal government that has jurisdiction over
the land;
(ii) if the proposed municipality will include lands owned by the state, the entity within
state government that has jurisdiction over the land;
(iii) each entity that provides a municipal service to a portion of the proposed
municipality; and
(iv) each other special service district that provides services to a portion of the
proposed municipality.
(4) If the five-year projected revenues calculated under Subsection (3)(a)(iv) exceed the
five-year projected costs calculated under Subsection (3)(a)(iii) by more than 5%, the
feasibility consultant shall project and report the expected annual revenue surplus to the contact
sponsor and the lieutenant governor.
(5) (a) Except as provided in Subsection (5)(b), if the results of the feasibility study, or
a supplemental feasibility study described in Section 
10-2a-206
, show that the average annual
amount of revenue calculated under Subsection (3)(a)(iv) does not exceed the average annual
cost calculated under Subsection (3)(a)(iii) by more than 5%, the process to incorporate the
area that is the subject of the feasibility study or supplemental feasibility study may not
proceed.
(b) The process to incorporate an area described in Subsection (5)(a) may proceed if a
subsequent supplemental feasibility study conducted under Section 
10-2a-206
 for the proposed
incorporation demonstrates compliance with Subsection (5)(a).
(6) If the results of the feasibility study or revised feasibility study do not comply with
Subsection (5), and if requested by the sponsors of the request, the feasibility consultant shall,
as part of the feasibility study or revised feasibility study, make recommendations regarding
how the boundaries of the proposed municipality may be altered to comply with Subsection
(5).
(7) The lieutenant governor shall post a copy of the feasibility study, and any
supplemental feasibility study described in Section 
10-2a-206
, on the lieutenant governor's
website and make a copy available for public review at the lieutenant governor's office.
Section 7. Section 
10-2a-206
 is amended to read:
10-2a-206.
Modified feasibility request -- Supplemental feasibility study.
(1) (a) The sponsors of a feasibility request may modify the request to alter the
boundaries of the proposed municipality and refile the modified feasibility request with the
county clerk if:
(i) the results of the feasibility study do not comply with Subsection 
10-2a-205
(5)(a);
or
(ii) (A) the feasibility request complies with Subsection 
10-2a-201.5
(4)(b);
(B) the annexation petition described in Subsection 
10-2a-201.5
(4)(b) that proposed
the annexation of an area that is part of the area proposed for incorporation has been denied;
and
(C) an incorporation petition based on the feasibility request has not been filed.
(b) (i) The sponsors of a feasibility request may not file a modified request under
Subsection (1)(a)(i) more than 90 days after the day on which the feasibility consultant submits
the final results of the feasibility study under Subsection 
10-2a-205
(2)(c)(iii).
(ii) The sponsors of a feasibility request may not file a modified request under
Subsection (1)(a)(ii) more than 18 months after filing the original feasibility request under
Section 
10-2a-202
.
(c) (i) Subject to Subsection (1)(c)(ii), each modified feasibility request under
Subsection (1)(a) shall comply with Subsections 
10-2a-202
(1) [
through (4)
]
, (3), (4), and (5)
and Subsection 
10-2a-201.5
(4).
(ii) Notwithstanding Subsection (1)(c)(i), a signature on a feasibility request filed under
Section 
10-2a-202
 may be used toward fulfilling the signature requirement of Subsection
[
10-2a-202
(2)(a)
] 
10-2a-202
(1)(a)
 for the feasibility request as modified under Subsection
(1)(a), unless the modified feasibility request proposes the incorporation of an area that is more
than 20% larger or smaller than the area described by the original feasibility request in terms
of:
(A) private land area; or
(B) assessed fair market value of private real property, as of January 1 of the current
year.
(d) Within 20 days after the day on which the county clerk receives the modified
request, the county clerk and the lieutenant governor shall follow the same procedure described
in Subsections 
10-2a-204
(1) through (6) for the modified feasibility request as for an original
feasibility request.
(e) Within 10 days after a modified feasibility request is filed, the lieutenant governor
shall:
(i) estimate the cost of a supplemental feasibility study under this section; and
(ii) provide the estimated cost to the feasibility request sponsors.
(f) Within 20 days after the lieutenant governor provides the estimated supplemental
feasibility study cost, the feasibility request sponsors shall pay the estimated cost to the
lieutenant governor for a supplemental feasibility study conducted on or after May 1, 2024.
(2) The timely filing of a modified feasibility request under Subsection (1) gives the
modified feasibility request the same processing priority under Subsection [
10-2a-204
(8)
]
10-2a-204
(7)
 as the original feasibility request 
if the feasibility request sponsors pay the
estimated cost of the supplemental feasibility study as required in Subsection (1)(e)
.
(3) Within 10 days after the day on which the [
county clerk receives a modified
feasibility request under Subsection (1)(a) that relates to a request for which a feasibility study
has already been completed
] 
lieutenant governor receives payment of the estimated
supplemental feasibility study cost
, the lieutenant governor shall commission the feasibility
consultant who conducted the feasibility study to conduct a supplemental feasibility study that
accounts for the modified feasibility request.
(4) The lieutenant governor shall require the feasibility consultant to:
(a) submit a draft of the supplemental feasibility study to each applicable person with
whom the feasibility consultant is required to consult under Subsection 
10-2a-205
(3)(c) within
30 days after the day on which the feasibility consultant is engaged to conduct the supplemental
study;
(b) allow each person to whom the consultant provided a draft under Subsection (4)(a)
to review and provide comment on the draft; and
(c) submit a completed supplemental feasibility study, to the following within 45 days
after the day on which the feasibility consultant is engaged to conduct the feasibility study:
(i) the lieutenant governor;
(ii) the county legislative body of the county in which the incorporation is proposed;
(iii) the contact sponsor; and
(iv) each person to whom the consultant provided a draft under Subsection (4)(a).
(5) [
(a) Subject to Subsection (5)(b), if
] 
If
 the results of the supplemental feasibility
study do not comply with Subsection 
10-2a-205
(5)(a)[
, the sponsors may further modify the
request in accordance with Subsection (1).
]
:
(a) the process to incorporate the area that is the subject of the supplemental feasibility
study may not proceed; and
(b) a feasibility request under Section 
10-2a-202
 may not be filed within 18 months
after the date of the supplemental feasibility study if the feasibility request proposes the
incorporation of an area included within the area described in the supplemental feasibility
study.
[
(b) Subsections (1)(d), (3), and (4) apply to a modified feasibility request described in
Subsection (5)(a).
]
[
(c) The county clerk shall consider a modified feasibility request described in
Subsection (5)(a) as an original feasibility request for purposes of determining the modified
feasibility request's processing priority under Subsection 
10-2a-204
(8).
]
Section 8. Section 
10-2a-220
 is amended to read:
10-2a-220.
Costs of incorporation -- Fees established by lieutenant governor.
(1) (a) There is created an expendable special revenue fund known as the "Municipal
Incorporation Expendable Special Revenue Fund."
(b) The fund shall consist of:
(i) appropriations from the Legislature; [
and
]
(ii) payments that feasibility request sponsors make to the lieutenant governor under
Subsections 
10-2a-205
(1)(b) and 
10-2a-206
(1)(f); and
[
(ii)
] 
(iii)
 fees the lieutenant governor collects and remits to the fund under this section.
(c) The lieutenant governor shall deposit all money collected under this section into the
fund.
(2) (a) The lieutenant governor shall establish a fee in accordance with Section
63J-1-504
 for a cost incurred by the lieutenant governor or the county for an incorporation
proceeding, including:
(i) a request certification;
[
(ii) a feasibility study;
]
[
(iii)
] 
(ii)
 a petition certification;
[
(iv)
] 
(iii)
 publication of notices;
[
(v)
] 
(iv)
 public hearings;
[
(vi)
] 
(v)
 all other incorporation activities occurring after the elections; and
[
(vii)
] 
(vi)
 any other cost incurred by the lieutenant governor or county in relation to an
incorporation proceeding.
(b) A cost under Subsection (2)(a) does not include a cost incurred by a county for
holding an election under Section 
10-2a-210
.
(3) [
The
] 
Subject to Subsections 
10-2a-205
(1)(b) and 
10-2a-206
(1)(f), the
 lieutenant
governor shall pay for a cost described in Subsection (2)(a) using funds from the Municipal
Incorporation Expendable Special Revenue Fund.
(4) (a) [
An area that incorporates as a
] 
A newly incorporated
 municipality shall [
pay
]:
(i) 
pay
 to the lieutenant governor each fee established under Subsection (2) for each
cost described in Subsection (2)(a) incurred by the lieutenant governor or the county; [
and
]
(ii) 
pay
 the county for a cost described in Subsection (2)(b)[
.
]
; and
(iii) reimburse feasibility request sponsors the cost the feasibility request sponsors paid
for:
(A) a feasibility study under Section 
10-2a-205
; and
(B) any supplemental feasibility study under Section 
10-2a-206
.
(b) The lieutenant governor shall execute a payback agreement with each new
municipality for the new municipality to pay the fees described in Subsection (4)(a) over a
period that, except as provided in Subsection (4)(c), may not exceed five years.
(c) If necessary, the lieutenant governor may extend a fee payment deadline beyond the
deadline described in Subsection (4)(b) by amending the payback agreement described in
Subsection (4)(b).
(d) The lieutenant governor shall deposit each fee the lieutenant governor collects
under Subsection (4)(a)(i) into the Municipal Incorporation Expendable Special Revenue Fund.
(5) If the lieutenant governor expends funds from the Municipal Incorporation
Expendable Special Revenue Fund that are not repaid to the lieutenant governor under
Subsection (4)(a)(i) because an area did not incorporate as a municipality, the Legislature shall
appropriate money to the fund in an amount equal to the funds that are not repaid.
Section 9. 
Effective date.
This bill takes effect on May 1, 2024.