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First Substitute H.B. 49

Senator Howard A. Stephenson proposes the following substitute bill:


             1     
VOTED AND BOARD LEVY PROGRAMS AMENDMENTS

             2     
2013 GENERAL SESSION

             3     
STATE OF UTAH

             4     
Chief Sponsor: Stephen G. Handy

             5     
Senate Sponsor: Howard A. Stephenson

             6     
             7      LONG TITLE
             8      General Description:
             9          This bill amends provisions in the Minimum School Program Act regarding the voted
             10      and board levy programs.
             11      Highlighted Provisions:
             12          This bill:
             13          .    requires the State Board of Education to:
             14              .    use a voted and board local levy funding balance in the prior fiscal year to
             15      increase the value of the state guarantee per weighted pupil unit in the current
             16      fiscal year; and
             17              .    distribute the state contribution to the voted and board local levy programs to
             18      school districts based on the increased guarantee per weighted pupil unit; and
             19          .    makes technical changes.
             20      Money Appropriated in this Bill:
             21          None
             22      Other Special Clauses:
             23          This bill provides an effective date.
             24      Utah Code Sections Affected:
             25      AMENDS:


             26          53A-17a-133, as last amended by Laws of Utah 2012, Chapter 421
             27          53A-17a-134, as last amended by Laws of Utah 2012, Chapter 421
             28          53A-17a-164, as enacted by Laws of Utah 2011, Chapter 371
             29     
             30      Be it enacted by the Legislature of the state of Utah:
             31          Section 1. Section 53A-17a-133 is amended to read:
             32           53A-17a-133. State-supported voted local levy authorized -- Election
             33      requirements -- State guarantee -- Reconsideration of the program.
             34          (1) As used in this section, "voted and board local levy funding balance" means the
             35      difference between:
             36          (a) the amount appropriated for the voted and board local levy program in a fiscal year;
             37      and
             38          (b) the amount necessary to provide the state guarantee per weighted pupil unit as
             39      determined under this section and Section 53A-17a-164 in the same fiscal year.
             40          [(1)] (2) An election to consider adoption or modification of a voted local levy is
             41      required if initiative petitions signed by 10% of the number of electors who voted at the last
             42      preceding general election are presented to the local school board or by action of the board.
             43          [(2)] (3) (a) (i) To impose a voted local levy, a majority of the electors of a district
             44      voting at an election in the manner set forth in Subsections [(8)] (9) and [(9)] (10) must vote in
             45      favor of a special tax.
             46          (ii) The tax rate may not exceed .002 per dollar of taxable value.
             47          (b) Except as provided in Subsection [(2)] (3)(c), in order to receive state support the
             48      first year, a district must receive voter approval no later than December 1 of the year prior to
             49      implementation.
             50          (c) Beginning on or after January 1, 2012, a school district may receive state support in
             51      accordance with Subsection [(3)] (4) without complying with the requirements of Subsection
             52      [(2)] (3)(b) if the local school board imposed a tax in accordance with this section during the
             53      taxable year beginning on January 1, 2011 and ending on December 31, 2011.
             54          [(3)] (4) (a) In addition to the revenue a school district collects from the imposition of a
             55      levy pursuant to this section, the state shall contribute an amount sufficient to guarantee $27.36
             56      per weighted pupil unit for each .0001 of the first .0016 per dollar of taxable value.


             57          (b) The same dollar amount guarantee per weighted pupil unit for the .0016 per dollar
             58      of taxable value under Subsection [(3)] (4)(a) shall apply to the portion of the board local levy
             59      authorized in Section 53A-17a-164 , so that the guarantee shall apply up to a total of .002 per
             60      dollar of taxable value if a school district levies a tax rate under both programs.
             61          (c) (i) Beginning July 1, 2013, the $27.36 guarantee under Subsections [(3)] (4)(a) and
             62      (b) shall be indexed each year to the value of the weighted pupil unit for the grades 1 through
             63      12 program by making the value of the guarantee equal to.010544 times the value of the prior
             64      year's weighted pupil unit for the grades 1 through 12 program.
             65          (ii) The guarantee shall increase by .0005 times the value of the prior year's weighted
             66      pupil unit for the grades 1 through 12 program for each succeeding year subject to the
             67      Legislature appropriating funds for an increase in the guarantee.
             68          (d) (i) The amount of state guarantee money to which a school district would otherwise
             69      be entitled to receive under this Subsection [(3)] (4) may not be reduced for the sole reason that
             70      the district's levy is reduced as a consequence of changes in the certified tax rate under Section
             71      59-2-924 pursuant to changes in property valuation.
             72          (ii) Subsection [(3)] (4)(d)(i) applies for a period of five years following any such
             73      change in the certified tax rate.
             74          (e) The guarantee provided under this section does not apply to the portion of a voted
             75      local levy rate that exceeds the voted local levy rate that was in effect for the previous fiscal
             76      year, unless an increase in the voted local levy rate was authorized in an election conducted on
             77      or after July 1 of the previous fiscal year and before December 2 of the previous fiscal year.
             78          (f) (i) If a voted and board local levy funding balance exists for the prior fiscal year, the
             79      State Board of Education shall:
             80          (A) use the voted and board local levy funding balance to increase the value of the state
             81      guarantee per weighted pupil unit described in Subsection (4)(c) in the current fiscal year; and
             82          (B) distribute the state contribution to the voted and local levy programs to school
             83      districts based on the increased value of the state guarantee per weighted pupil unit described in
             84      Subsection (4)(f)(i)(A).
             85          (ii) The State Board of Education shall report action taken under this Subsection (4)(f)
             86      to the Office of the Legislative Fiscal Analyst and the Governor's Office of Planning and
             87      Budget.


             88          [(4)] (5) (a) An election to modify an existing voted local levy is not a reconsideration
             89      of the existing authority unless the proposition submitted to the electors expressly so states.
             90          (b) A majority vote opposing a modification does not deprive the district of authority to
             91      continue the levy.
             92          (c) If adoption of a voted local levy is contingent upon an offset reducing other local
             93      school board levies, the board must allow the electors, in an election, to consider modifying or
             94      discontinuing the imposition of the levy prior to a subsequent increase in other levies that
             95      would increase the total local school board levy.
             96          (d) Nothing contained in this section terminates, without an election, the authority of a
             97      school district to continue imposing an existing voted local levy previously authorized by the
             98      voters as a voted leeway program.
             99          [(5)] (6) Notwithstanding Section 59-2-919 , a school district may budget an increased
             100      amount of ad valorem property tax revenue derived from a voted local levy imposed under this
             101      section in addition to revenue from new growth as defined in Subsection 59-2-924 (4), without
             102      having to comply with the notice requirements of Section 59-2-919 , if:
             103          (a) the voted local levy is approved:
             104          (i) in accordance with Subsections [(8)] (9) and [(9)] (10) on or after January 1, 2003;
             105      and
             106          (ii) within the four-year period immediately preceding the year in which the school
             107      district seeks to budget an increased amount of ad valorem property tax revenue derived from
             108      the voted local levy; and
             109          (b) for a voted local levy approved or modified in accordance with this section on or
             110      after January 1, 2009, the school district complies with the requirements of Subsection [(7)]
             111      (8).
             112          [(6)] (7) Notwithstanding Section 59-2-919 , a school district may levy a tax rate under
             113      this section that exceeds the certified tax rate without having to comply with the notice
             114      requirements of Section 59-2-919 if:
             115          (a) the levy exceeds the certified tax rate as the result of a school district budgeting an
             116      increased amount of ad valorem property tax revenue derived from a voted local levy imposed
             117      under this section;
             118          (b) the voted local levy was approved:


             119          (i) in accordance with Subsections [(8)] (9) and [(9)] (10) on or after January 1, 2003;
             120      and
             121          (ii) within the four-year period immediately preceding the year in which the school
             122      district seeks to budget an increased amount of ad valorem property tax revenue derived from
             123      the voted local levy; and
             124          (c) for a voted local levy approved or modified in accordance with this section on or
             125      after January 1, 2009, the school district complies with requirements of Subsection [(7)] (8).
             126          [(7)] (8) For purposes of Subsection [(5)] (6)(b) or [(6)] (7)(c), the proposition
             127      submitted to the electors regarding the adoption or modification of a voted local levy shall
             128      contain the following statement:
             129          "A vote in favor of this tax means that (name of the school district) may increase
             130      revenue from this property tax without advertising the increase for the next five years."
             131          [(8)] (9) (a) Before imposing a property tax levy pursuant to this section, a school
             132      district shall submit an opinion question to the school district's registered voters voting on the
             133      imposition of the tax rate so that each registered voter has the opportunity to express the
             134      registered voter's opinion on whether the tax rate should be imposed.
             135          (b) The election required by this Subsection [(8)] (9) shall be held:
             136          (i) at a regular general election conducted in accordance with the procedures and
             137      requirements of Title 20A, Election Code, governing regular elections;
             138          (ii) at a municipal general election conducted in accordance with the procedures and
             139      requirements of Section 20A-1-202 ; or
             140          (iii) at a local special election conducted in accordance with the procedures and
             141      requirements of Section 20A-1-203 .
             142          (c) Notwithstanding the requirements of Subsections [(8)] (9)(a) and (b), beginning on
             143      or after January 1, 2012, a school district may levy a tax rate in accordance with this section
             144      without complying with the requirements of Subsections [(8)] (9)(a) and (b) if the school
             145      district imposed a tax in accordance with this section at any time during the taxable year
             146      beginning on January 1, 2011, and ending on December 31, 2011.
             147          [(9)] (10) If a school district determines that a majority of the school district's
             148      registered voters voting on the imposition of the tax rate have voted in favor of the imposition
             149      of the tax rate in accordance with Subsection [(8)] (9), the school district may impose the tax


             150      rate.
             151          Section 2. Section 53A-17a-134 is amended to read:
             152           53A-17a-134. Board-approved leeway -- Purpose -- State support -- Disapproval.
             153          (1) Except as provided in Subsection (9), a local school board may levy a tax rate of up
             154      to .0004 per dollar of taxable value to maintain a school program above the cost of the basic
             155      school program as follows:
             156          (a) a local school board shall use the money generated by the tax for class size
             157      reduction within the school district;
             158          (b) if a local school board determines that the average class size in the school district is
             159      not excessive, it may use the money for other school purposes but only if the board has
             160      declared the use for other school purposes in a public meeting prior to levying the tax rate; and
             161          (c) a district may not use the money for other school purposes under Subsection (1)(b)
             162      until it has certified in writing that its class size needs are already being met and has identified
             163      the other school purposes for which the money will be used to the State Board of Education
             164      and the state board has approved their use for other school purposes.
             165          (2) (a) The state shall contribute an amount sufficient to guarantee $27.36 per weighted
             166      pupil unit for each .0001 per dollar of taxable value.
             167          (b) The guarantee shall increase in the same manner as provided for the voted local
             168      levy guarantee in Subsection 53A-17a-133 [(3)](4)(c).
             169          (c) (i) The amount of state guarantee money to which a school district would otherwise
             170      be entitled to under this Subsection (2) may not be reduced for the sole reason that the district's
             171      levy is reduced as a consequence of changes in the certified tax rate under Section 59-2-924
             172      pursuant to changes in property valuation.
             173          (ii) Subsection (2)(c)(i) applies for a period of five years following any such change in
             174      the certified tax rate.
             175          (d) The guarantee provided under this section does not apply to:
             176          (i) a board-authorized leeway in the first fiscal year the leeway is in effect, unless the
             177      leeway was approved by voters pursuant to Subsections (4) through (6); or
             178          (ii) the portion of a board-authorized leeway rate that is in excess of the
             179      board-authorized leeway rate that was in effect for the previous fiscal year.
             180          (3) The levy authorized under this section is not in addition to the maximum rate of


             181      .002 authorized in Section 53A-17a-133 , but is a board-authorized component of the total tax
             182      rate under that section.
             183          (4) As an exception to Section 53A-17a-133 , the board-authorized levy does not
             184      require voter approval, but the board may require voter approval if requested by a majority of
             185      the board.
             186          (5) An election to consider disapproval of the board-authorized levy is required, if
             187      within 60 days after the levy is established by the board, referendum petitions signed by the
             188      number of legal voters required in Section 20A-7-301 , who reside within the school district, are
             189      filed with the school district.
             190          (6) (a) A local school board shall establish its board-approved levy by April 1 to have
             191      the levy apply to the fiscal year beginning July 1 in that same calendar year except that if an
             192      election is required under this section, the levy applies to the fiscal year beginning July 1 of the
             193      next calendar year.
             194          (b) The approval and disapproval votes authorized in Subsections (4) and (5) shall
             195      occur at a general election in even-numbered years, except that a vote required under this
             196      section in odd-numbered years shall occur at a special election held on a day in odd-numbered
             197      years that corresponds to the general election date. The school district shall pay for the cost of
             198      a special election.
             199          (7) (a) Modification or termination of a voter-approved leeway rate authorized under
             200      this section is governed by Section 53A-17a-133 .
             201          (b) A board-authorized leeway rate may be modified or terminated by a majority vote
             202      of the board subject to disapproval procedures specified in this section.
             203          (8) A board levy election does not require publication of a voter information pamphlet.
             204          (9) Beginning January 1, 2012, a local school board may not levy a tax in accordance
             205      with this section.
             206          Section 3. Section 53A-17a-164 is amended to read:
             207           53A-17a-164. Board local levy -- State guarantee.
             208          (1) Subject to the other requirements of this section, for a calendar year beginning on
             209      or after January 1, 2012, a local school board may levy a tax to fund the school district's
             210      general fund.
             211          (2) (a) Except as provided in Subsection (2)(b), a tax rate imposed by a school district


             212      pursuant to this section may not exceed .0018 per dollar of taxable value in any calendar year.
             213          (b) A tax rate imposed by a school district pursuant to this section may not exceed
             214      .0025 per dollar of taxable value in any calendar year if, during the calendar year beginning on
             215      January 1, 2011, the school district's combined tax rate for the following levies was greater
             216      than .0018 per dollar of taxable value:
             217          (i) a recreation levy imposed under Section 11-2-7 ;
             218          (ii) a transportation levy imposed under Section 53A-17a-127 ;
             219          (iii) a board-authorized levy imposed under Section 53A-17a-134 ;
             220          (iv) an impact aid levy imposed under Section 53A-17a-143 ;
             221          (v) the portion of a 10% of basic levy imposed under Section 53A-17a-145 that is
             222      budgeted for purposes other than capital outlay or debt service;
             223          (vi) a reading levy imposed under Section 53A-17a-151 ; and
             224          (vii) a tort liability levy imposed under Section 63G-1-704 .
             225          (3) (a) In addition to the revenue a school district collects from the imposition of a levy
             226      pursuant to this section, the state shall contribute an amount sufficient to guarantee that each
             227      .0001 of the first .0004 per dollar of taxable value generates an amount equal to [.010544 times
             228      the value of the prior year's weighted pupil unit] the state guarantee per weighted pupil unit
             229      described in Subsection 53A-17a-133 (4).
             230          (b) (i) The amount of state guarantee money to which a school district would otherwise
             231      be entitled to under this Subsection (3) may not be reduced for the sole reason that the district's
             232      levy is reduced as a consequence of changes in the certified tax rate under Section 59-2-924
             233      pursuant to changes in property valuation.
             234          (ii) Subsection (3)(b)(i) applies for a period of five years following any changes in the
             235      certified tax rate.
             236          (4) A school district that imposes a board local levy in the calendar year beginning on
             237      January 1, 2012, is exempt from the public notice and hearing requirements of Section
             238      59-2-919 if the school district budgets an amount of ad valorem property tax revenue equal to
             239      or less than the sum of the following amounts:
             240          (a) the amount of revenue generated during the calendar year beginning on January 1,
             241      2011, from the sum of the following levies of a school district:
             242          (i) a recreation levy imposed under Section 11-2-7 ;


             243          (ii) a transportation levy imposed under Section 53A-17a-127 ;
             244          (iii) a board-authorized levy imposed under Section 53A-17a-134 ;
             245          (iv) an impact aid levy imposed under Section 53A-17a-143 ;
             246          (v) the portion of a 10% of basic levy imposed under Section 53A-17a-145 that is
             247      budgeted for purposes other than capital outlay or debt service;
             248          (vi) a reading levy imposed under Section 53A-17a-151 ; and
             249          (vii) a tort liability levy imposed under Section 63G-1-704 ; and
             250          (b) revenue from new growth as defined in Subsection 59-2-924 (4)(c).
             251          Section 4. Effective date.
             252          This bill takes effect on July 1, 2013.


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