(1) The
organization of a district shall be initiated by a petition filed in the office of the
clerk of the governing body. If such petition is to initiate the organization of a
district by a combination, such petition shall be filed in the office of the clerk of
each governing body to be included in the combination.
(2) The petition shall be signed by persons who own commercial real
property in the service area of the proposed district having a valuation for
assessment of not less than fifty percent of the valuation for assessment of all
commercial real property in the service area of the proposed district. The petition
shall set forth:
(a) The name of the proposed district, which shall include a descriptive name
and the words local marketing district;
(b) A general description of the boundaries and service area of the proposed
district;
(c) A general description of the types of services to be provided by the
proposed district;
(d) The names of three persons to represent the petitioners, who have the
power to enter into agreements relating to the organization of the district; and
(e) A request for the organization of the district.
(3) After receipt of a petition under this section, any local government by
ordinance or resolution, or any combination by contract, may create a district that is
authorized to exercise the functions conferred by the provisions of this article. Upon
creation, the district shall constitute a separate political subdivision and body
corporate of the state and shall have all the duties, privileges, immunities, rights,
liabilities, and disabilities of a public body politic and corporate.
(4) Any contract, ordinance, or resolution establishing a district shall specify:
(a) The name and purpose of the district;
(b) Voting requirements for district elections;
(c) Subject to the provisions of section 29-25-108, if a governing body of a
single local government is not creating the district, the establishment and
organization of the board of directors in which all legislative power of the district is
vested, including:
(I) The number of directors, which shall be at least five;
(II) The manner of the election or appointment, the qualifications, and the
compensation, if any, of the directors and the procedure for filling vacancies;
(III) The officers of the district, the manner of their appointment, and their
duties; and
(IV) The voting requirements for action by the board; except that, unless
specifically provided otherwise in the contract, a majority of the directors of the
board constitutes a quorum and a majority of the board is necessary for action by
the board;
(d) The provisions for the distribution, disposition, or division of the assets of
the district;
(e) The boundaries of the district, which may not include territory outside of
the boundaries of the local government that creates the district. If created by a
combination, such a district may not include territory within the boundaries of a
municipality that is not a member of the combination, as the boundaries of the
municipality exist on the date the district is created, without the consent of the
governing body of such municipality and may not include territory within the
unincorporated boundaries of a county that is not a member of the combination as
the unincorporated boundaries of the county exist on the date the district is created
without the consent of the governing body of such county.
(f) The term of the district, which may be for a definite term or until repealed,
rescinded, or terminated, and the method, if any, by which it may be repealed,
rescinded, or terminated; except that the district or any ordinance, resolution, or
contract under which it was organized may not be repealed, terminated, or
rescinded so long as the district has bonds outstanding;
(g) If created pursuant to contract, the provisions for amendment of the
contract;
(h) The limitations, if any, on the powers granted by this article that may be
exercised by the district pursuant to this article; and
(i) If created pursuant to contract, the conditions required when adding or
deleting parties to the contract.
(5) No local government shall adopt an ordinance or resolution or enter into
a contract establishing a district without holding at least two public hearings
thereon in addition to other requirements imposed by law for public notice. The
local government shall give notice of the time, place, and purpose of the public
hearing by publication in a newspaper of general circulation in the local
government at least ten days prior to the date of the public hearing.
(6) No ordinance, resolution, or contract establishing a district pursuant to
this section shall take effect unless first submitted to a vote of the registered
electors residing within the boundaries of the proposed district. The question of
establishing the district shall be submitted to such registered electors at a general
election or a special election called for such purpose. Such question may also be
proposed to such registered electors at the same time and in the same or a
separate question as an election required under section 29-25-112. The district shall
not be established unless a majority of the registered electors voting on the
establishment of a district at the election vote in favor of the establishment. The
election shall be conducted in substantially the same manner as municipal and
county elections, and the municipal or county clerk and recorder of each local
government in which the election is conducted shall assist the members of the
combination of the proposed district in conducting the election.
(7) The petition for organization and creation of the district shall be
accompanied by a bond with security approved by the governing body or governing
bodies of the members of the combination or a cash deposit sufficient to cover all
expenses connected with the proceedings, including any elections, for the
organization and creation of the district. If, at any time during the organization
proceedings, the governing body or governing bodies determine that the bond first
executed or the amount of the cash deposited is insufficient in amount, it may
require the execution of an additional bond or the deposit of additional cash within
a time to be fixed, not less than ten days thereafter, and, upon failure of the
petitioners to file or deposit the bond or cash, the petition shall be dismissed.