1     
LOCAL GOVERNMENT BOND AMENDMENTS

2     
2017 GENERAL SESSION

3     
STATE OF UTAH

4     
Chief Sponsor: Deidre M. Henderson

5     
House Sponsor: Justin L. Fawson

6     

7     LONG TITLE
8     General Description:
9          This bill amends provisions regarding required information related to a proposed bond.
10     Highlighted Provisions:
11          This bill:
12          ▸     addresses the order in which a governing body must state the property tax cost of a
13     bond on a ballot proposition and a voter information pamphlet; and
14          ▸     makes technical and conforming changes.
15     Money Appropriated in this Bill:
16          None
17     Other Special Clauses:
18          This bill provides a coordination clause.
19     Utah Code Sections Affected:
20     AMENDS:
21          11-14-202, as last amended by Laws of Utah 2014, Chapter 325
22          11-14-206, as last amended by Laws of Utah 2010, Chapter 388
23     Utah Code Sections Affected by Coordination Clause:
24          11-14-202, as last amended by Laws of Utah 2014, Chapter 325
25     

26     Be it enacted by the Legislature of the state of Utah:
27          Section 1. Section 11-14-202 is amended to read:
28          11-14-202. Notice of election -- Contents -- Publication -- Mailing.

29          (1) The governing body shall ensure that notice of the election is provided:
30          (a) once per week during three consecutive weeks by publication in a newspaper
31     having general circulation in the local political subdivision in accordance with Section
32     11-14-316, the first publication occurring not less than 21 nor more than 35 days before the
33     election;
34          (b) on a website, if available, in accordance with Section 45-1-101 for the three weeks
35     that immediately precede the election; and
36          (c) in a local political subdivision where there is no newspaper of general circulation,
37     by posting notice of the bond election in at least five public places in the local political
38     subdivision at least 21 days before the election.
39          (2) When the debt service on the bonds [to be issued] the governing body intends to
40     issue will increase the property tax imposed upon the average value of a residence by an
41     amount that is greater than or equal to $15 per year, the governing body shall prepare and mail
42     either a voter information pamphlet or a notification described in Subsection (6):
43          (a) at least 15 days but not more than 45 days before the bond election;
44          (b) to each household containing a registered voter who is eligible to vote on the
45     bonds; and
46          (c) that includes the information required by Subsections (3) and (4).
47          (3) The governing body shall ensure that the notice and voter information pamphlet
48     required by this section [shall] include in the following order:
49          (a) the date and place of the election;
50          (b) the hours during which the polls will be open; and
51          (c) the title and text of the ballot proposition, including the property tax cost of the
52     bond described in Subsection 11-14-206(2)(a).
53          (4) The governing body shall ensure that the voter information pamphlet required by
54     this section [shall include] includes:
55          (a) the information required by Subsection (3); and

56          (b) an explanation of the property tax impact, if any, of the issuance of the bonds,
57     which may be based on information the governing body determines to be useful, including:
58          (i) expected debt service on the bonds to be issued;
59          (ii) a description of the purpose, remaining principal balance, and maturity date of any
60     outstanding general obligation bonds of the issuer;
61          (iii) funds other than property taxes available to pay debt service on general obligation
62     bonds;
63          (iv) timing of expenditures of bond proceeds;
64          (v) property values; and
65          (vi) any additional information that the governing body determines may be useful to
66     explain the property tax impact of issuance of the bonds.
67          (5) The governing body shall pay the costs associated with the notice required by this
68     section.
69          (6) (a) The governing body may mail a notice printed on a postage prepaid,
70     preaddressed return form that a person may use to request delivery of a voter information
71     pamphlet by mail.
72          (b) The governing body shall ensure that the notice described in Subsection (6)(a)
73     [shall include] includes:
74          (i) the website upon which the voter information pamphlet is available; and
75          (ii) the phone number a voter may call to request delivery of a voter information
76     pamphlet by mail.
77          (7) A local school board shall comply with the voter information pamphlet
78     requirements described in Section 53A-18-102.
79          Section 2. Section 11-14-206 is amended to read:
80          11-14-206. Ballots -- Submission of ballot language -- Form and contents.
81          (1) At least 75 days before the election, the governing body shall prepare and submit to
82     the election officer:

83          (a) a ballot title for the bond proposition that includes the name of the local political
84     subdivision issuing the bonds and the word "bond"; and
85          (b) a ballot proposition that meets the requirements of Subsection (2).
86          (2) (a) The governing body shall ensure that the ballot proposition [shall include]
87     includes:
88          (i) the maximum principal amount of the bonds;
89          (ii) the maximum number of years from the issuance of the bonds to final maturity;
90          (iii) the general purpose for which the bonds are to be issued; and
91          (iv) if issuance of the bonds will require the increase of the property tax imposed upon
92     the average value of a residence by an amount that is greater than or equal to $15 per year, the
93     following information in substantially the following form and in the following order:
94          "PROPERTY TAX COST OF BONDS:
95          If the bonds are issued as planned, [if applicable: without regard to the taxes currently
96     levied for outstanding bonds that will reduce over time,] an annual property tax to pay debt
97     service on the bonds will be required over a period of ____ years in the estimated amount of
98     $____ [on a] (insert the average value of a residence in the taxing entity rounded to the nearest
99     thousand dollars) on a residence and in the estimated amount of $____ on a business property
100     having the same value.
101          [If applicable] If there are other outstanding bonds, an otherwise scheduled tax
102     decrease may not occur if these bonds are issued.
103          The foregoing information is only an estimate and is not a limit on the amount of taxes
104     that the governing body may be required to levy in order to pay debt service on the bonds. The
105     governing body is obligated to levy taxes to the extent provided by law in order to pay the
106     bonds."
107          (b) The governing body may state the purpose of the bonds [may be stated] in general
108     terms and need not specify the particular projects for which the governing body intends to issue
109     the bonds [are to be issued] or the specific amount of bond proceeds [to be expended] that the

110     governing body intends to expend for each project.
111          (c) If the governing body intends that the bonds [are to] be payable in part from tax
112     proceeds and in part from the operating revenues of the local political subdivision, or from any
113     combination of tax proceeds and operating revenues, the [bond proposition] governing body
114     may indicate those payment sources on the bond proposition, but need not specify how the
115     governing body intends to divide the bonds [are to be divided] between those sources of
116     payment.
117          (d) (i) The governing body shall ensure that the bond proposition [shall be] is followed
118     by the words, "For the issuance of bonds" and "Against the issuance of bonds," with
119     appropriate boxes in which the voter may indicate [his] the voter's choice.
120          (ii) Nothing in Subsection (2)(d)(i) prohibits the addition of descriptive information
121     about the bonds.
122          (3) If a bond proposition is submitted to a vote on the same day as any other election
123     held in the local political subdivision calling the bond election, the governing body or an
124     election officer may combine the bond proposition [may be combined] with the candidate
125     ballot in a manner consistent with Section 20A-6-301, 20A-6-303, or 20A-6-402.
126          (4) The governing body shall ensure that the ballot form [shall comply] complies with
127     the requirements of Title 20A, Chapter 6, Ballot Form.
128          Section 3. Coordinating S.B. 150 with H.B. 218 -- Technical amendment.
129          If this S.B. 150 and H.B. 218, Poll Location Amendments, both pass and become law,
130     and S.B. 128, Election Day Notification Amendments, does not pass and become law, it is the
131     intent of the Legislature that the Office of Legislative Research and General Counsel prepare
132     the Utah Code database for publication by amending Section 11-14-202 to read:
133          "11-14-202. Notice of election -- Contents -- Publication -- Mailing.
134          (1) The governing body shall ensure that notice of the election is provided:
135          (a) once per week during three consecutive weeks by publication in a newspaper
136     having general circulation in the local political subdivision in accordance with Section

137     11-14-316, the first publication occurring not less than 21 nor more than 35 days before the
138     election;
139          (b) on a website, if available, in accordance with Section 45-1-101 for the three weeks
140     that immediately precede the election; and
141          (c) in a local political subdivision where there is no newspaper of general circulation,
142     by posting notice of the bond election in at least five public places in the local political
143     subdivision at least 21 days before the election.
144          (2) When the debt service on the bonds to be issued will increase the property tax
145     imposed upon the average value of a residence by an amount that is greater than or equal to $15
146     per year, the governing body shall prepare and mail either a voter information pamphlet or a
147     notification described in Subsection (6):
148          (a) at least 15 days but not more than 45 days before the bond election;
149          (b) to each household containing a registered voter who is eligible to vote on the
150     bonds; and
151          (c) that includes the information required by Subsections (3) and (4).
152          [(3) The notice and voter information pamphlet required by this section]
153          (3) (a) Except as provided in Subsection (3)(b), the notice described in Subsection (1)
154     shall include, in the following order:
155          [(a)] (i) the date [and place] of the election;
156          [(b)] (ii) the hours during which the polls will be open; [and]
157          (iii) the location of each polling place or the address of a website that lists the location
158     of each polling place; and
159          [(c)] (iv) the title and text of the ballot proposition, including the property tax cost of
160     the bond described in Subsection 11-14-206(2)(a).
161          (b) The notice described in Subsection (3)(a) is not required to include information
162     regarding an additional:
163          (i) early voting polling place designated, for which notice is provided in accordance

164     with Subsection 20A-3-603(2); or
165          (ii) election day voting center designated for which notice is provided, in accordance
166     with Subsection 20A-3-703(2).
167          (4) The voter information pamphlet required by this section shall include:
168          (a) the information required by Subsection (3); and
169          (b) an explanation of the property tax impact, if any, of the issuance of the bonds,
170     which may be based on information the governing body determines to be useful, including:
171          (i) expected debt service on the bonds to be issued;
172          (ii) a description of the purpose, remaining principal balance, and maturity date of any
173     outstanding general obligation bonds of the issuer;
174          (iii) funds other than property taxes available to pay debt service on general obligation
175     bonds;
176          (iv) timing of expenditures of bond proceeds;
177          (v) property values; and
178          (vi) any additional information that the governing body determines may be useful to
179     explain the property tax impact of issuance of the bonds.
180          (5) The governing body shall pay the costs associated with the notice required by this
181     section.
182          (6) (a) The governing body may mail a notice printed on a postage prepaid,
183     preaddressed return form that a person may use to request delivery of a voter information
184     pamphlet by mail.
185          (b) The notice described in Subsection (6)(a) shall include:
186          (i) the website upon which the voter information pamphlet is available; and
187          (ii) the phone number a voter may call to request delivery of a voter information
188     pamphlet by mail.
189          (7) A local school board shall comply with the voter information pamphlet
190     requirements described in Section 53A-18-102.".

191