Annexation of a special district that provides transportation services. (1) (a) A special district that provides a wholesale service may adopt a resolution approving the annexation of an area outside the special district's boundaries if: (i) the area is annexed by or otherwise added to, or is added to the retail service area of, a municipality or another special district that: (A) acquires the wholesale service from the special district and provides it as a retail service; (B) is, before the annexation or other addition, located at least partly within the special district; and (C) after the annexation or other addition will provide to the annexed or added area the same retail service that the special district provides as a wholesale service to the municipality or other special district; and (ii) except as provided in Subsection (2), no part of the area is within the boundaries of another special district that provides the same wholesale service as the proposed annexing special district. (b) For purposes of this section: (i) a special district providing public transportation service shall be considered to be providing a wholesale service; and (ii) a municipality included within the boundaries of the special district providing public transportation service shall be considered to be acquiring that wholesale service from the special district and providing it as a retail service and to be providing that retail service after the annexation or other addition to the annexed or added area, even though the municipality does not in fact provide that service. (2) Notwithstanding Subsection (1)(a)(ii), an area outside the boundaries of a special district providing a wholesale service and located partly or entirely within the boundaries of another special district that provides the same wholesale service may be annexed to the special district if: (a) the conditions under Subsection (1)(a)(i) are present; and (b) the proposed annexing special district and the other special district follow the same procedure as is required for a boundary adjustment under Section 17B-1-417, including both district boards adopting a resolution approving the annexation of the area to the proposed annexing special district and the withdrawal of that area from the other district. (3) A special district that provides transportation services may adopt a resolution approving the annexation of the area outside of the special district's boundaries if: (a) the area is within a county that has levied a sales and use tax under Section 59-12-2216; and (b) the county legislative body has adopted a resolution approving the annexation of the areas outside of the special district. (4) Upon the adoption of an annexation resolution under this section, the board of the annexing special district shall comply with the requirements of Subsection 17B-1-414(2), and the lieutenant governor shall issue a certificate of annexation and send a copy of notice as provided in Section 67-1a-6.5. (5) Subsections 17B-1-414(2) and (3) apply to an annexation under this section.
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