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Fifth Substitute S.B. 175
7 Cosponsor:Howard A. Stephenson 8
9 LONG TITLE
10 General Description:
11 This bill amends provisions related to public education financing and certain school
12 property tax provisions.
13 Highlighted Provisions:
14 This bill:
15 . allows local school boards to use revenue collected from certain capital property tax
16 levies for certain general fund purposes for fiscal years 2010-11 and 2011-12;
17 . requires a local school board to notify taxpayers of certain uses of property tax
19 . requires a school district in a county of the first class that receives property tax
20 revenue from a capital outlay levy equalization program to report to the Education
21 Interim Committee each year;
22 . requires the Education Interim Committee to consider reports of receiving school
23 districts when determining whether to reauthorize certain capital outlay levy
24 equalization programs during a sunset review;
25 . sunsets certain capital outlay levy equalization programs at the end of 2016; and
26 . makes technical changes.
27 Monies Appropriated in this Bill:
29 Other Special Clauses:
30 This bill provides retrospective operation for a taxable year beginning on or after
31 January 1, 2010.
32 Utah Code Sections Affected:
34 53A-16-107, as last amended by Laws of Utah 2008, Chapter 236
35 53A-16-107.1, as enacted by Laws of Utah 2008, Chapter 236
36 53A-19-102, as last amended by Laws of Utah 2009, First Special Session, Chapter 5
37 63I-1-253, as last amended by Laws of Utah 2009, Chapter 299
38 63I-1-259, as renumbered and amended by Laws of Utah 2008, Chapter 382
40 Be it enacted by the Legislature of the state of Utah:
41 Section 1. Section 53A-16-107 is amended to read:
42 53A-16-107. Capital outlay levy -- Maintenance of school facilities -- Authority to
43 use proceeds of .0002 tax rate -- Restrictions and procedure -- Limited authority to use
44 proceeds for general fund purposes -- Notification required when using proceeds for
45 general fund purposes.
46 (1) Subject to Subsection (3) and except as provided in Subsection (5), a local school
47 board may annually impose a capital outlay levy not to exceed .0024 per dollar of taxable value
48 to be used for:
49 (a) capital outlay;
50 (b) debt service; and
51 (c) subject to Subsection (2), school facility maintenance.
52 (2) (a) A local school board may utilize the proceeds of a maximum of .0002 per dollar
53 of taxable value of the local school board's annual capital outlay levy for the maintenance of
54 school facilities in the school district.
55 (b) A local school board that uses the option provided under Subsection (2)(a) shall:
56 (i) maintain the same level of expenditure for maintenance in the current year as it did
57 in the preceding year, plus the annual average percentage increase applied to the maintenance
58 and operation budget for the current year; and
59 (ii) identify the expenditure of capital outlay funds for maintenance by a district project
60 number to ensure that the funds are expended in the manner intended.
61 (c) The State Board of Education shall establish by rule the expenditure classification
62 for maintenance under this program using a standard classification system.
63 (3) Beginning January 1, 2009, in order to qualify for receipt of the state contribution
64 toward the minimum school program described in Section 53A-17a-104 , a local school board
65 in a county of the first class shall impose a capital outlay levy of at least .0006 per dollar of
66 taxable value.
67 (4) (a) The county treasurer of a county of the first class shall distribute revenues
68 generated by the .0006 portion of the capital outlay levy required in Subsection (3) to school
69 districts within the county in accordance with Section 53A-16-107.1 .
70 (b) If a school district in a county of the first class imposes a capital outlay levy
71 pursuant to this section which exceeds .0006 per dollar of taxable value, the county treasurer of
72 a county of the first class shall distribute revenues generated by the portion of the capital outlay
73 levy which exceeds .0006 to the school district imposing the levy.
74 (5) (a) Notwithstanding Subsections (1)(a), (b), and (c) and subject to Subsections
75 (5)(b), (c), and (d), for fiscal years 2010-11 and 2011-12, a local school board may use the
76 proceeds of the local school board's capital outlay levy for general fund purposes if the
77 proceeds are not committed or dedicated to pay debt service or bond payments.
78 (b) If a local school board uses the proceeds described in Subsection (5)(a) for general
79 fund purposes, the local school board shall notify the public of the local school board's use of
80 the capital outlay levy proceeds for general fund purposes:
81 (i) prior to the board's budget hearing in accordance with the notification requirements
82 described in Section 53A-19-102 ; and
83 (ii) at a budget hearing required in Section 53A-19-102 .
84 (c) A local school board may not use the proceeds described in Subsection (5)(a) to
85 fund the following accounting function classifications as provided in the Financial Accounting
86 for Local and State School Systems guidelines developed by the National Center for Education
88 (i) 2300 Support Services - General District Administration; or
89 (ii) 2500 Support Services - Central Services.
90 (d) A local school board may not use the proceeds from a distribution described in
91 Section 53A-16-107.1 for general fund purposes.
92 Section 2. Section 53A-16-107.1 is amended to read:
93 53A-16-107.1. School capital outlay in counties of the first class -- Allocation --
94 Report to Education Interim Committee.
95 (1) For purposes of this section:
96 (a) "Average annual enrollment growth over the prior three years" means the quotient
98 (i) (A) enrollment in the current school year, based on October 1 enrollment counts;
100 (B) enrollment in the year three years prior, based on October 1 enrollment counts;
101 divided by
102 (ii) three.
103 (b) "Capital outlay increment monies" means the amount of revenue equal to the
104 difference between:
105 (i) the amount of revenue generated by a levy of .0006 per dollar of taxable value
106 within a receiving school district during a fiscal year; and
107 (ii) the amount of revenue the receiving school district received during the same fiscal
108 year from the distribution described in Subsection (2).
109 (c) "Contributing school district" means a school district in a county of the first class
110 that in a fiscal year receives less revenue from the distribution described in Subsection (2) than
111 it would have received during the same fiscal year from a levy imposed within the school
112 district of .0006 per dollar of taxable value.
113 (d) "Receiving school district" means a school district in a county of the first class that
114 in a fiscal year receives more revenue from the distribution described in Subsection (2) than it
115 would have received during the same fiscal year from a levy imposed within the school district
116 of .0006 per dollar of taxable value.
118 generated by the .0006 portion of the capital outlay levy required in Subsection 53A-16-107 (3)
119 to school districts located within the county of the first class as follows:
120 (a) 25% of the revenues shall be distributed in proportion to a school district's
121 percentage of the total enrollment growth in all of the school districts within the county that
122 have an increase in enrollment, calculated on the basis of the average annual enrollment growth
123 over the prior three years in all of the school districts within the county that have an increase in
124 enrollment over the prior three years, as of the October 1 enrollment counts; and
125 (b) 75% of the revenues shall be distributed in proportion to a school district's
126 percentage of the total current year enrollment in all of the school districts within the county, as
127 of the October 1 enrollment counts.
129 the enrollment and average annual enrollment growth for each affected school district shall be
130 calculated on the basis of enrollment in school district schools located within that school
131 district's newly created or adjusted boundaries, as of October 1 enrollment counts.
133 provide a county treasurer with audited enrollment information from the fall enrollment audit
134 necessary to distribute revenues as required by this section.
136 class shall distribute the revenue generated within the county of the first class during the prior
137 calendar year from the capital outlay levy described in Section 53A-16-107 .
138 (6) On or before the November meeting of the Education Interim Committee of each
139 year, a receiving school district shall report to the committee:
140 (a) how the receiving school district spent the district's capital outlay increment monies
141 during the prior fiscal year; and
142 (b) the receiving school district's plan to increase student capacity of existing school
143 buildings within the district.
144 (7) The Education Interim Committee shall consider the reports of receiving school
145 districts described in Subsection (6) as part of a review to reauthorize this section and
146 provisions related to this section, if the committee is directed to conduct a review pursuant to
147 Title 63I, Legislative Oversight and Sunset Act.
148 Section 3. Section 53A-19-102 is amended to read:
149 53A-19-102. Local school boards budget procedures.
150 (1) (a) Prior to June 22 of each year, [
151 and make appropriations for the next fiscal year.
152 (b) If the tax rate in the proposed budget exceeds the certified tax rate defined in
153 Section 59-2-924 , the local school board shall comply with Section 59-2-919 in adopting the
154 budget, except as provided by Section 53A-17a-133 .
155 (2) (a) Prior to the adoption or amendment of a budget containing a tax rate which does
156 not exceed the certified tax rate, [
157 defined in Section 10-9a-103 , on the proposed budget or budget amendment.
158 (b) In addition to complying with Title 52, Chapter 4, Open and Public Meetings Act,
159 in regards to the public hearing described in Subsection (2)(a), the board shall:
160 (i) publish the required newspaper notice at least 10 days before the day on which the
161 hearing is held; and
162 (ii) file a copy of the proposed budget with the local school board's business
163 administrator for public inspection at least 10 days prior to the hearing.
164 (3) [
165 auditor and the State Board of Education.
166 Section 4. Section 63I-1-253 is amended to read:
167 63I-1-253. Repeal dates, Titles 53, 53A, and 53B.
168 The following provisions are repealed on the following dates:
169 (1) Section 53-3-232 , Conditional licenses, is repealed July 1, 2015.
170 (2) Title 53A, Chapter 1a, Part 6, Public Education Job Enhancement Program is
171 repealed July 1, 2010.
172 (3) Title 53A, Chapter 1a, Part 9, Voluntary Extended-day Kindergarten Program, is
173 repealed July 1, 2011.
174 (4) Section 53A-2-118.3 is repealed December 31, 2016.
176 is repealed July 1, 2011.
177 (6) Subsections 53A-16-107 (3) and (4) are repealed December 31, 2016.
178 (7) Section 53A-16-107.1 is repealed December 31, 2016.
180 repealed July 1, 2011.
181 Section 5. Section 63I-1-259 is amended to read:
182 63I-1-259. Repeal dates, Title 59.
183 (1) Subsection 59-2-924 (3)(g) is repealed on December 31, 2016.
184 (2) Section 59-2-924.3 is repealed on December 31, 2016.
185 (3) Section 59-2-924.4 is repealed on December 31, 2016.
186 (4) Section 59-9-102.5 is repealed December 31, 2010.
187 Section 6. Retrospective operation.
188 This bill provides retrospective operation for a taxable year beginning on or after
189 January 1, 2010.
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