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H.B. 446 Enrolled





Chief Sponsor: Mark W. Walker

Senate Sponsor: Carlene M. Walker

             7      LONG TITLE
             8      General Description:
             9          This bill enacts provisions relating to the sale and purchase of school district surplus
             10      lands.
             11      Highlighted Provisions:
             12          This bill:
             13          .    enacts provisions allowing certain counties and municipalities to purchase lands
             14      declared to be surplus by a school district;
             15          .    establishes a process for the purchase of those surplus lands;
             16          .    requires that surplus lands purchased as provided in this bill shall be used only for
             17      certain purposes;
             18          .    requires school districts that sell surplus property under this bill to place the sale
             19      proceeds in a capital facilities fund to be used only for capital facilities or bond debt
             20      reduction; and
             21          .    authorizes the original seller of surplus land to reacquire the land if the acquiring
             22      entity later declares the land to be surplus property.
             23      Monies Appropriated in this Bill:
             24          None
             25      Other Special Clauses:
             26          None
             27      Utah Code Sections Affected:
             28      ENACTS:
             29          53A-2-401, Utah Code Annotated 1953

             30          53A-2-402, Utah Code Annotated 1953
             31          53A-2-403, Utah Code Annotated 1953
             32          53A-2-404, Utah Code Annotated 1953
             34      Be it enacted by the Legislature of the state of Utah:
             35          Section 1. Section 53A-2-401 is enacted to read:
Part 4. School District Surplus Lands Act

             37          53A-2-401. Title.
             38          This part is known as the "School District Surplus Lands Act."
             39          Section 2. Section 53A-2-402 is enacted to read:
             40          53A-2-402. Definitions.
             41          As used in this part:
             42          (1) "Eligible entity" means:
             43          (a) a city or town with a population density of 3,000 or more people per square mile; or
             44          (b) a county whose unincorporated area includes a qualifying township.
             45          (2) "Purchase price" means the greater of:
             46          (a) an amount that is the average of:
             47          (i) the appraised value of the surplus property, based on the predominant zone in the
             48      surrounding area, as indicated in an appraisal obtained by the eligible entity; and
             49          (ii) the appraised value of the surplus property, based on the predominant zone in the
             50      surrounding area, as indicated in an appraisal obtained by the school district; and
             51          (b) the amount the school district paid to acquire the surplus property.
             52          (3) "Qualifying township" means a township under Section 17-27a-306 that has a
             53      population density of 3,000 or more people per square mile within the boundaries of the
             54      township.
             55          (4) "Surplus property" means land owned by a school district that:
             56          (a) was purchased with taxpayer money;
             57          (b) is located within a city or town that is an eligible entity or within a qualifying

             58      township;
             59          (c) consists of one contiguous tract at least three acres in size; and
             60          (d) has been declared by the school district to be surplus.
             61          Section 3. Section 53A-2-403 is enacted to read:
             62          53A-2-403. Purchase of surplus property.
             63          (1) An eligible entity may purchase, and each school district shall sell, surplus property
             64      as provided in this section.
             65          (2) (a) Upon declaring land to be surplus property, each school district shall give
             66      written notice to each eligible entity in which the surplus property is located.
             67          (b) Each notice under Subsection (2)(a) shall:
             68          (i) state that the school district has declared the land to be surplus property; and
             69          (ii) describe the surplus property.
             70          (3) Subject to Subsection (4), an eligible entity may purchase the surplus property by
             71      paying the school district the purchase price.
             72          (4) (a) The legislative body of each eligible entity desiring to purchase surplus property
             73      under this section shall:
             74          (i) within 90 days after the eligible entity receives notice under Subsection (2), adopt a
             75      resolution declaring the intent to purchase the surplus property and deliver a copy of the
             76      resolution to the school district; and
             77          (ii) within 90 days after delivering a copy of the resolution under Subsection (4)(a)(i)
             78      to the school district, deliver to the school district an earnest money offer to purchase the
             79      surplus property at the purchase price.
             80          (b) If an eligible entity fails to comply with either of the requirements under Subsection
             81      (4)(a) within the applicable time period, the eligible entity forfeits the right to purchase the
             82      surplus property.
             83          (5) (a) An eligible entity may waive its right to purchase surplus property under this
             84      part by submitting a written waiver to the school district.
             85          (b) If an eligible entity submits a waiver under Subsection (5)(a), the school district has

             86      no further obligation under this part to sell the surplus property to the eligible entity.
             87          (6) Surplus property acquired by an eligible entity may not be used for any purpose
             88      other than:
             89          (a) a county, city, or town hall;
             90          (b) a park or other open space; or
             91          (c) a cultural center or community center.
             92          (7) (a) A school district that sells surplus property under this part may use proceeds
             93      from the sale only for bond debt reduction or school district capital facilities.
             94          (b) Each school district that sells surplus property under this part shall place all
             95      proceeds from the sale that are not used for bond debt reduction in a capital facilities fund of
             96      the school district for use for school district capital facilities.
             97          Section 4. Section 53A-2-404 is enacted to read:
             98          53A-2-404. Resale of surplus property.
             99          (1) If an eligible entity that has acquired surplus property under Section 53A-2-403
             100      afterwards declares that property to be surplus, the school district from which the eligible entity
             101      acquired the property may purchase, and the eligible entity shall sell, the property as provided
             102      in Section 53A-2-403 , except that the price at which the school district shall be entitled to
             103      reacquire the property shall be the price that the eligible entity paid for the property, plus the
             104      cost of any existing improvements that the eligible entity made to the property after it
             105      purchased the property.
             106          (2) If the school district does not reacquire the surplus property under Subsection (1)
             107      and the eligible entity sells the surplus property to another buyer, the eligible entity and the
             108      school district shall equally share any proceeds of that sale that exceed the amount the eligible
             109      entity paid for the property plus the cost of any existing improvements the eligible entity made
             110      to the property after it purchased the property.

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