17B-1-505.7. Withdrawal from certain districts providing garbage collection and disposal.

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Effective 5/6/2026

(1)As used in this section:

(a)"Feasibility consultant" means a person with expertise in:

(i)the processes and economics of local government; and

(ii)the economics of providing municipal services to an area, including garbage service.

(b)"Feasibility study" means a study to determine the functional and financial feasibility of withdrawing an area from a garbage disposal district.

(i)"Garbage disposal district" means a special or local district that was created to provide garbage collection and disposal to counties or municipalities.

(ii)"Garbage disposal district" includes special districts reorganized from a local district, as described in Section 17D-1-604 .

(i)"Incur a financial obligation" means an action that increases the annual budget of a district beyond what would be expected after taking population growth or inflation into account.

(ii)"Incur a financial obligation" does not mean the continuation of day-to-day district operations, including:

(A)the payment of salaries and benefits;

(B)implementing previously budgeted cost-of-living wage increases;

(C)hiring a new employee to fulfill the duties of an individual who leaves employment with the district; or

(D)purchasing necessary supplies under the same general terms and at the same general rate the organization historically purchased the supplies.

(e)"Resolution to withdraw" means a resolution adopted by the legislative body of a withdrawing entity describing the area within the withdrawing entity that shall be removed from the boundaries of a garbage disposal district.

(f)"Withdrawing entity" means:

(i)a county of the first class, as classified under Section 17-60-104 , that initiates the process to withdraw the unincorporated areas of the county from the garbage disposal district as described in this section; or

(ii)a municipality located in a county of the first class, as classified under Section 17-60-104 , that initiates the process to withdraw the municipality from the garbage disposal district as described in this section.

(a)In addition to procedures described in Section 17B-1-504 , the process to withdraw an area from a garbage disposal district may be initiated by a county or municipal legislative body adopting a notice of intent to withdraw as described in this section.

(b)The notice in Subsection (2)(a) shall include:

(i)a statement that the county or municipality intends to withdraw from the garbage disposal district;

(ii)a description or map of the area proposed to be withdrawn; and

(iii)notice that the county or municipality intends to conduct a feasibility study in accordance with this section if the withdrawing entity and garbage disposal district do not agree to the withdrawal as described in Subsection

(3).

(c)Within 10 days after adopting the notice in Subsection (2)(a) , the legislative body shall submit a copy of the notice to the garbage disposal district's board of trustees.

(d)Upon receiving the notice described in Subsection (2)(c) , the garbage disposal district may not incur debt, issue bonds, or otherwise incur a financial obligation until the earlier of:

(i)the day on which:

(A)the initiated withdrawal is finalized; or

(B)the legislative body rescinds the notice of intent to withdraw as described in Subsection

(8); or

(ii)one year from the day on which the garbage disposal district receives the notice described in Subsection (2)(c) .

(3)A feasibility study under this section is not required if, within 30 days of the day on which the garbage disposal district receives notice under Subsection (2)(c) , the withdrawing entity and the garbage disposal district:

(a)agree in writing to the withdrawal; and

(b)enter into a written agreement establishing the terms of the withdrawal.

(a)The withdrawing entity shall select a feasibility consultant in accordance with applicable county or municipal procurement procedures.

(b)Upon retaining a feasibility consultant, the legislative body shall require the feasibility consultant to:

(i)complete the feasibility study and written report:

(A)as described in Subsection

(5); and

(B)within 90 days; and

(ii)attend any public hearing the legislative body holds as described in Subsection

(6).

(a)The feasibility study shall consider:

(i)the physical and other assets that will be required by the withdrawing entity to provide, without interruption or diminution of service, the same service that is being provided by the garbage disposal district;

(ii)the physical and other assets that will no longer be required by the garbage disposal district to continue to provide the current level of service to the remainder of the garbage disposal district, excluding the withdrawing entity, and could be transferred to the withdrawing entity;

(iii)a fair and equitable allocation of the garbage disposal district's assets between the garbage disposal district and the withdrawing entity, effective upon the withdrawal of the withdrawing entity from the garbage disposal district;

(iv)a fair and equitable allocation of the debts, liabilities, and obligations of the garbage disposal district and any local building authority of the garbage disposal district, between the withdrawing entity and the remaining garbage disposal district, taking into consideration:

(A)any requirement to maintain the excludability of interest from the income of the holder of the debt, liability, or obligation for federal income tax purposes; and

(B)any garbage disposal district assets that have been purchased with the proceeds of bonds issued by the garbage disposal district that the garbage disposal district will retain and any assets that will be transferred to the withdrawing entity;

(v)the number and classification of garbage disposal district employees who will no longer be required to serve the remaining portions of the garbage disposal district after the withdrawing entity withdraws from the garbage disposal district, including the dollar amount of the wages, salaries, and benefits attributable to the employees and the estimated cost associated with termination of the employees if the withdrawing entity does not employ the employees; and

(vi)any other factor that the feasibility consultant considers relevant to the question of the withdrawing entity's withdrawal from the garbage disposal district.

(b)A written report of the results of a feasibility study shall:

(i)contain a recommendation concerning whether a withdrawing entity's withdrawal from a garbage disposal district is functionally and financially feasible for the withdrawing entity;

(ii)include any conditions the feasibility consultant determines need to be satisfied in order to make the withdrawal functionally and financially feasible, including the garbage disposal district assets and liabilities to be allocated to the withdrawing entity;

(iii)include a one-page summary of the feasibility study, the recommendation described in Subsection (5)(b)(i) , and any conditions described in Subsection (5)(b)(ii) in terms that the average member of the public can understand; and

(iv)be sent to:

(A)the board of trustees of the garbage disposal district; and

(B)the legislative body that adopted the notice of intent to withdraw under Subsection

(2).

(a)If upon receipt of the written report described in Subsection (5)(b) , the withdrawing entity determines that the results of the feasibility study are favorable and any identified conditions are acceptable to the withdrawing entity, the legislative body shall hold at least one public hearing:

(i)within 60 days of the day on which the written report is sent to the board of trustees and the legislative body, as described in Subsection (5)(b) ; and

(ii)for the purpose of allowing:

(A)the feasibility consultant to present the results of the feasibility study; and

(B)the public to become informed about the feasibility study results, pose questions to the feasibility consultant, and make public comment.

(b)At a public hearing described in this Subsection

(6), the legislative body shall:

(i)provide a copy of the feasibility study for public review;

(ii)ensure that the presentation includes a description of any conditions the feasibility consultant identifies as necessary to make the withdrawal functional and financially feasible, as described in Subsection (5)(b) ; and

(iii)allow members of the public and representatives from the garbage disposal district's board of trustees to make public comment about the proposed withdrawal.

(a)The county or municipality shall publish notice of the public hearing required under Subsection

(6), and any additional public hearing in which the issue of withdrawal or the feasibility study results are discussed, for the county or municipality:

(i)as a class A notice under Section 63G-30-102 ; and

(ii)for at least two weeks before the day of the public hearing.

(b)The notice described in Subsection (7)(a) shall:

(i)be sent to the garbage disposal district's board of trustees;

(ii)include the summary described in Subsection (5)(b)(iii) ; and

(iii)indicate that a full copy of the feasibility study is available for inspection and copying at the office of the county clerk or municipal clerk or recorder.

(8)The withdrawing entity's legislative body shall notify the garbage disposal district's board of trustees that the legislative body is rescinding the notice of intent to withdraw:

(a)if, upon receipt of the written report described in Subsection (5)(b) , the withdrawing entity determines the results of the feasibility study are not favorable to the withdrawing entity or that any identified conditions are not acceptable to the withdrawing entity;

(b)if, after a public hearing described in Subsection

(6), the legislative body fails to or elects not to adopt a resolution to withdraw as described in Subsection

(9); or

(c)if the legislative body determines, for whatever reason and at any time before the legislative body adopts a resolution to withdraw as described in Subsection

(9), that withdrawal is no longer in the best interest of the county or municipality.

(a)The withdrawing entity's legislative body may adopt a resolution to withdraw at a public meeting:

(i)after a public hearing described in Subsection

(6); and

(ii)no later than 60 days after the day on which the last public hearing described in Subsection

(6)is held.

(b)A resolution to withdraw shall establish the terms of the withdrawal, including the withdrawing entity's agreement to comply with any conditions included in the feasibility study report.

(c)Upon adopting a resolution to withdraw, the legislative body shall notify the garbage disposal district's board of trustees of the resolution to withdraw.

(10)The withdrawal of a county or municipality from a garbage disposal district as described in Subsection

(9)does not require the approval of the garbage disposal district's board of trustees.

(a)Within 10 days of the day on which a withdrawing entity and garbage disposal district enter into an agreement to withdraw under Subsection

(3)or a legislative body adopts a resolution to withdraw under Subsection

(9), the withdrawing entity shall file with the lieutenant governor a copy of:

(i)the 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) ; and

(ii)an approved final local entity plat, as defined in Section 67-1a-6.5 .

(b)Upon the lieutenant governor's issuance of a certificate of withdrawal under Section 67-1a-6.5 , the withdrawing entity shall submit to the county recorder the original:

(i)notice of impending boundary action, as defined in Section 67-1a-6.5 , that meets the requirements of Subsection 67-1a-6.5(3) ;

(ii)approved final local entity plat, as defined in Section 67-1a-6.5 ; and

(iii)certificate of withdrawal.

(12)A withdrawal under this section is effective the day on which the lieutenant governor issues a certificate of withdrawal under Section 67-1a-6.5 .

Enacted by Chapter 319 , 2026 General Session