Second public hearing -- Dissolution resolution -- Limitations on dissolution.
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(1)
(a) Within 180 days after the day on which the administrative body holds the public hearing described in Section 17B-1-1306, the administrative body shall hold a second public hearing to:
(i) publicly explain the result of the study and preparation described in Subsection 17B-1-1306(2)(d)(i);
(ii) describe whether the proposed dissolution meets each criterion described in Subsection (2); and
(iii) adopt a resolution in accordance with Subsection (1)(b) or (c).
(b) Subject to Subsection (2), after a proposed dissolution petition has been certified under Section 17B-1-1305, the administrative body shall adopt a resolution:
(i) certifying that the proposed dissolution satisfies the criteria described in Subsection (2); and
(ii)
(A) for an inactive local district, approving the dissolution of the local district; or
(B) for an active local district, initiating the dissolution election described in Section 17B-1-1309.
(c) Subject to Subsection (2), for a proposed dissolution of an inactive district that an administrative body initiates by adopting a resolution under Subsection 17B-1-1303(1)(b), the administrative body may adopt a resolution:
(i) certifying that the proposed dissolution satisfies the criteria described in Subsection (2); and
(ii) approving the dissolution of the inactive local district.
(2) The administrative body may not adopt a resolution under Subsection (1) unless:
(a) any outstanding debt of the local district is:
(i) satisfied and discharged in connection with the dissolution; or
(ii) assumed by another governmental entity with the consent of all the holders of that debt and all the holders of other debts of the local district;
(b) for a local district that has provided service during the preceding three years or undertaken planning or other activity preparatory to providing service:
(i) another entity has committed to:
(A) provide the same service to the area being served or proposed to be served by the local district; and
(B) purchase, at fair market value, the assets of the local district that are required to provide the service; and
(ii) all who are to receive the service have consented to the service being provided by the other entity; and
(c) all outstanding contracts to which the local district is a party are resolved through mutual termination or the assignment of the local district's rights, duties, privileges, and responsibilities to another entity with the consent of the other parties to the contract.