1. (1) The legislative body of a county or municipality that has created a special service district may reorganize the special service district as a special district in accordance with this section.

2. (2) The process to reorganize a special service district as a special district is initiated if the legislative body of the county or municipality that originally created the special service district adopts a resolution that:

   1. (a) indicates the legislative body's intent to reorganize the special service district as a special district; and
   2. (b) complies with the requirements of Subsection (3).

3. (3) A resolution to initiate reorganization described in Subsection (2) shall:

   1. (a) state the name of the special service district that is proposed to be reorganized as a special district;
   2. (b) generally describe the boundaries of the special service district, whether or not those boundaries coincide with the boundaries of the creating county or municipality; and
   3. (c) specify each service that the special service district is authorized to provide.
4. (4) After adopting the resolution described in Subsection (3), the legislative body of the county or municipality that created the special service district shall hold a public hearing following the notice requirements of Section 17D-1-205 applicable to the creation of a special service district, with changes as appropriate for the reorganization of the special service district as a special district.

5. (5)

   1. (a) At or following the public hearing, the county or municipal legislative body shall:

      1. (i) subject to Subsection (5)(b), adopt a resolution approving the reorganization of the special service district as a special district; or
      2. (ii) abandon the reorganization.

   2. (b) A resolution approving reorganization shall:

      1. (i) state the name of the special service district that is being reorganized as a special district;
      2. (ii) state the name of the special district in accordance with Subsection (7);
      3. (iii) subject to Subsection (5)(c), describe the boundaries of the special district;
      4. (iv) subject to Subsection (8)(a), specify the service or services to be provided by the special district;

      5. (v) state:

         1. (A) whether the special district is a different type of special district other than a basic special district; and
         2. (B) if the reorganized special district is not a basic special district, the type of special district, including the governing part in Title 17B, Chapter 2a, Provisions Applicable to Different Types of Special Districts;
      6. (vi) state whether the special district is to be governed by an appointed or an elected board of trustees, or a combination of appointed and elected trustees, in accordance with Title 17B, Chapter 1, Part 3, Board of Trustees;
      7. (vii) state whether an administrative control board established for the special service district that is being reorganized as a special district will serve as the first board of trustees of the special district; and
      8. (viii) contain additional provisions as necessary.
   3. (c) The boundaries of the special district shall reflect the boundaries of the reorganized special service district.
6. (6) A county may not reorganize a special service district as a special district to include some or all of the area within a municipality unless the legislative body of the municipality adopts a resolution or ordinance consenting to the reorganization.

7. (7) The name of the special district:

   1. (a) shall comply with Subsection 17-60-102(3); and
   2. (b) may not include the phrase "special service district."

8. (8) A special district created under this section may not provide:

   1. (a)

      1. (i) at the time of reorganization, a service that it could not have provided as the special service district prior to reorganization; or
      2. (ii) after reorganization, an additional service listed in Section 17B-1-202, unless the special district adds the service in accordance with the provisions of Title 17B, Chapter 1, Provisions Applicable to All Special Districts; and
   2. (b) more than four of the services listed in Section 17B-1-202 at any time.

9. (9) After the lieutenant governor issues, in accordance with Section 67-1a-6.5, a certificate of incorporation for a special district created under this section, the special district:

   1. (a) is:

      1. (i) a body corporate and politic with perpetual succession;
      2. (ii) a quasi-municipal corporation; and
      3. (iii) a political subdivision of the state as provided in Section 17B-1-103; and

   2. (b) may, subject to Subsection (8), provide a service that:

      1. (i) the special service district was authorized to provide before reorganization; and
      2. (ii) the special district is authorized to provide under the resolution adopted in accordance with Subsection (5).
10. (10) An action taken, a bond issued, or a contract or other obligation entered into by the reorganized special service district before reorganization is a valid action, bond issuance, contract, or other obligation of the special district.

11. (11) A special district created under this section:

    1. (a) may impose and collect taxes, fees, and other charges for services provided in accordance with applicable law;
    2. (b) shall own all property acquired by the special service district before reorganization; and
    3. (c) shall have a power, right, or obligation that the reorganized special service district had before the reorganization, unless otherwise provided by law.

Amended by Chapter 16, 2025 Special Session 1