H.B. 170

This document includes House Committee Amendments incorporated into the bill on Thu, Mar 6, 2014 at 12:15 PM by jeyring. --> This document includes House Floor Amendments incorporated into the bill on Mon, Mar 10, 2014 at 11:20 AM by jeyring. -->              1     

LOCAL SCHOOL BOARD BOND AMENDMENTS

             2     
2014 GENERAL SESSION

             3     
STATE OF UTAH

             4     
Chief Sponsor: Daniel McCay

             5     
Senate Sponsor: Howard A. Stephenson

             6     
             7      LONG TITLE
             8      General Description:
             9          This bill amends provisions related to local school board bond issuances.
             10      Highlighted Provisions:
             11          This bill:
             12          .    requires a local school board to:
             13              .    include a plan of finance in the voter information pamphlet for a bond election;
             14              .    ensure that the bond proceeds are used to complete projects in accordance with
             15      the plan of finance;
             16              .    post on the local school board's website certain information related to the plan
             17      of finance and the status of the projects;
             18          .    subject to certain conditions, including the H. [ unanimous ] .H approval of
             18a      H. two-thirds of .H the local school
             19      board, provides that a local school board may adjust the plan of finance for a bond
             20      that has been authorized by an election; and
             21          .    provides a remedy for a registered voter if a local school board adjusts the plan of
             22      finance without obtaining the necessary local school board approval.
             23      Money Appropriated in this Bill:
             24           None
             25      Other Special Clauses:
             26          None
             27      Utah Code Sections Affected:


             28      AMENDS:
             29           11-14-202 , as last amended by Laws of Utah 2012, Chapter 334
             30           53A-18-102 , as last amended by Laws of Utah 2005, Chapter 105
             31     
             32      Be it enacted by the Legislature of the state of Utah:
             33          Section 1. Section 11-14-202 is amended to read:
             34           11-14-202. Notice of election -- Contents -- Publication -- Mailing.
             35          (1) The governing body shall ensure that notice of the election is provided:
             36          (a) once per week during three consecutive weeks by publication in a newspaper
             37      having general circulation in the local political subdivision in accordance with Section
             38      11-14-316 , the first publication occurring not less than 21 nor more than 35 days before the
             39      election;
             40          (b) on a website, if available, in accordance with Section 45-1-101 for the three weeks
             41      that immediately precede the election; and
             42          (c) in a local political subdivision where there is no newspaper of general circulation,
             43      by posting notice of the bond election in at least five public places in the local political
             44      subdivision at least 21 days before the election.
             45          (2) When the debt service on the bonds to be issued will increase the property tax
             46      imposed upon the average value of a residence by an amount that is greater than or equal to $15
             47      per year, the governing body shall prepare and mail either a voter information pamphlet or a
             48      notification described in Subsection (6):
             49          (a) at least 15 days but not more than 45 days before the bond election;
             50          (b) to each household containing a registered voter who is eligible to vote on the
             51      bonds; and
             52          (c) that includes the information required by Subsections (3) and (4).
             53          (3) The notice and voter information pamphlet required by this section shall include:
             54          (a) the date and place of the election;
             55          (b) the hours during which the polls will be open; and
             56          (c) the title and text of the ballot proposition.
             57          (4) The voter information pamphlet required by this section shall include:
             58          (a) the information required by Subsection (3); and


             59          (b) an explanation of the property tax impact, if any, of the issuance of the bonds,
             60      which may be based on information the governing body determines to be useful, including:
             61          (i) expected debt service on the bonds to be issued;
             62          (ii) a description of the purpose, remaining principal balance, and maturity date of any
             63      outstanding general obligation bonds of the issuer;
             64          (iii) funds other than property taxes available to pay debt service on general obligation
             65      bonds;
             66          (iv) timing of expenditures of bond proceeds;
             67          (v) property values; and
             68          (vi) any additional information that the governing body determines may be useful to
             69      explain the property tax impact of issuance of the bonds.
             70          (5) The governing body shall pay the costs associated with the notice required by this
             71      section.
             72          (6) (a) The governing body may mail a notice printed on a postage prepaid,
             73      preaddressed return form that a person may use to request delivery of a voter information
             74      pamphlet by mail.
             75          (b) The notice described in Subsection (6)(a) shall include:
             76          (i) the website upon which the voter information pamphlet is available; and
             77          (ii) the phone number a voter may call to request delivery of a voter information
             78      pamphlet by mail.
             79          (7) A local school board shall comply with the voter information pamphlet
             80      requirements described in Section 53A-18-102 .
             81          Section 2. Section 53A-18-102 is amended to read:
             82           53A-18-102. Additional indebtedness -- Election -- Voter information pamphlet.
             83          (1) As used in this section:
             84          (a) "Qualifying general obligation bond" means a bond:
             85          (i) issued pursuant to Title 11, Chapter 14, Local Government Bonding Act; and
             86          (ii) authorized by an election held on or after July 1, 2014.
             87          (b) "Voter information pamphlet" means the notification required by Section
             88      11-14-202 .
             89          (2) A local school board may require the qualified electors of the district to vote on a


             90      proposition as to whether to incur indebtedness, subject to conditions provided in Title 11,
             91      Chapter 14, Local Government Bonding Act, [under the following circumstances] if:
             92          [(1) if] (a) the debts of the district are equal to school taxes and other estimated
             93      revenues for the school year, and it is necessary to create and incur additional indebtedness in
             94      order to maintain and support schools within the district; or
             95          [(2)] (b) the local school board determines it advisable to issue school district bonds to
             96      purchase school sites, buildings, or furnishings or to improve existing school property.
             97          (3) A local school board shall specify, in the voter information pamphlet for a bond
             98      election, a plan of finance, including:
             99          (a) the specific project or projects for which a bond is to be issued; and
             100          (b) a priority designation for each project.
             101          (4) Except as provided in Subsection (5), a local school board shall ensure that
             102      qualifying general obligation bond proceeds are used to complete projects in accordance with
             103      the plan of finance described in Subsection (3).
             104          (5) (a) H. [ With ] After distribution to the public of the voter information pamphlet,
             104a      with [ unanimous ] two-thirds majority .H approval of the local school board, a local school
             104b      board may H. upon a determination of compelling circumstances .H
             105      adjust the plan of finance described in Subsection (3) by:
             106          (i) changing the priority designation of a project;
             107          (ii) adding a project that was not listed in the voter information pamphlet; or
             108          (iii) removing a project that was listed in the voter information pamphlet.
             109          (b) A local school board may not vote on more than one adjustment described in
             110      Subsection (5)(a) per meeting.
             111          (6) For a qualifying general obligation bond, a local school board shall post on the
             112      local school board's website:
             113          (a) the plan of finance as described in the voter information pamphlet; and
             114          (b) a progress report detailing the status of the projects listed in the plan of finance,
             115      including:
             116          (i) the status of any construction contracts related to a project;
             117          (ii) the bid amount;
             118          (iii) the estimated and actual construction start date;
             119          (iv) the estimated and actual construction end date; and
             120          (v) the final cost.


             121          (7) (a) If a local school board violates Subsection (4), a registered voter in the school
             122      district may file an action for an extraordinary writ to prohibit the local school board from
             123      adjusting the plan of finance without obtaining the necessary local school board approval.
             124          (b) If a registered voter prevails in an action under Subsection (7)(a), the court shall
             125      award reasonable costs and attorney fees to the registered voter.
             126          (c) The action described in Subsection (7)(a) may not be used to challenge the validity
             127      of a bond.




Legislative Review Note
    as of 2-27-14 2:07 PM


Office of Legislative Research and General Counsel


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