In July, the inn's owners forced Garfield County to allow the 2,300-acre resort to incorporate as Bryce Canyon City - thanks to a loosened rule that passed the Legislature earlier this year.

The law was meant to strengthen private-property rights by requiring counties to approve new towns if petitioned by landowners controlling more than half a proposed municipality's area.

Ruby's Inn's, a virtual "company town" outside Bryce Canyon National Park, was an unforeseen consequence, and Garfield County lost $300,000 in annual sales-tax revenue.

Sen. Dennis Stowell, R-Parowan, is crafting legislation to restore a "gatekeeper" to the process of incorporating towns. He shared his ideas at a Political Subdivisions Interim Committee meeting Wednesday, promising to deliver a draft bill next month.

Stowell, who represents Garfield and five other counties, wants to streamline incorporation law by making the process the same for both cities (which have more than a thousand people) and towns (which have less than a thousand people).

Under Stowell's proposal, petitioners would request that a county commission or council conduct a feasibility study on incorporation and hold a public hearing. The issue would be decided either by an election or the county commission or council - whichever the petitioners want.

Cities currently have to hold an election to incorporate. Allowing a county commission to decide is a less-expensive option. But if commissioners were to knock down the proposal, under Stowell's plan, 10 percent of voters could protest and force an election.

Rep. Gage Froerer, R-Huntsville, said he supports Stowell's efforts at "simplification."

"A gatekeeper is necessary, but we do need to be very careful that the gatekeeper is not closing the gate on private-property rights."

Large landowners still would be allowed to opt out of a new city or town if they chose.

rwinters@sltrib.com

* The Legislature's Political Subdivisions Interim Committee forwarded a bill Wednesday that would require cities and counties to post election candidates' campaign-finance disclosures online.