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H.B. 295 Enrolled






Chief Sponsor: Kenneth W. Sumsion

Senate Sponsor: Michael G. Waddoups

             7      Cosponsors:
             8      Johnny Anderson
             9      Trisha S. Beck
             10      Jim Bird
             11      Laura Black
             12      James A. DunniganRebecca P. Edwards
Craig A. Frank
Eric K. Hutchings
Don L. Ipson
Brian S. King
Steven R. MascaroMarie H. Poulson
Christine F. Watkins
Ryan D. Wilcox
Larry B. Wiley
Carl Wimmer              13     
             14      LONG TITLE
             15      General Description:
             16          This bill amends provisions related to certain uses of school district property tax
             17      revenue.
             18      Highlighted Provisions:
             19          This bill:
             20          .    allows local school boards to use revenue collected from certain capital property tax
             21      levies for certain general fund purposes for fiscal years 2010-11 and 2011-12;
             22          .    requires a local school board to notify taxpayers of certain uses of property tax
             23      revenue; and
             24          .    makes technical changes.
             25      Monies Appropriated in this Bill:
             26          None
             27      Other Special Clauses:
             28          None
             29      Utah Code Sections Affected:
             30      AMENDS:

             31          53A-16-107, as last amended by Laws of Utah 2008, Chapter 236
             32          53A-19-102, as last amended by Laws of Utah 2009, First Special Session, Chapter 5
             34      Be it enacted by the Legislature of the state of Utah:
             35          Section 1. Section 53A-16-107 is amended to read:
             36           53A-16-107. Capital outlay levy -- Maintenance of school facilities -- Authority
             37      to use proceeds of .0002 tax rate -- Restrictions and procedure -- Limited authority to
             38      use proceeds for general fund purposes -- Notification required when using proceeds for
             39      general fund purposes.
             40          (1) Subject to Subsection (3) and except as provided in Subsection (5), a local school
             41      board may annually impose a capital outlay levy not to exceed .0024 per dollar of taxable
             42      value to be used for:
             43          (a) capital outlay;
             44          (b) debt service; and
             45          (c) subject to Subsection (2), school facility maintenance.
             46          (2) (a) A local school board may utilize the proceeds of a maximum of .0002 per
             47      dollar of taxable value of the local school board's annual capital outlay levy for the
             48      maintenance of school facilities in the school district.
             49          (b) A local school board that uses the option provided under Subsection (2)(a) shall:
             50          (i) maintain the same level of expenditure for maintenance in the current year as it did
             51      in the preceding year, plus the annual average percentage increase applied to the maintenance
             52      and operation budget for the current year; and
             53          (ii) identify the expenditure of capital outlay funds for maintenance by a district
             54      project number to ensure that the funds are expended in the manner intended.
             55          (c) The State Board of Education shall establish by rule the expenditure classification
             56      for maintenance under this program using a standard classification system.
             57          (3) Beginning January 1, 2009, in order to qualify for receipt of the state contribution
             58      toward the minimum school program described in Section 53A-17a-104 , a local school board

             59      in a county of the first class shall impose a capital outlay levy of at least .0006 per dollar of
             60      taxable value.
             61          (4) (a) The county treasurer of a county of the first class shall distribute revenues
             62      generated by the .0006 portion of the capital outlay levy required in Subsection (3) to school
             63      districts within the county in accordance with Section 53A-16-107.1 .
             64          (b) If a school district in a county of the first class imposes a capital outlay levy
             65      pursuant to this section which exceeds .0006 per dollar of taxable value, the county treasurer
             66      of a county of the first class shall distribute revenues generated by the portion of the capital
             67      outlay levy which exceeds .0006 to the school district imposing the levy.
             68          (5) (a) Notwithstanding Subsections (1)(a), (b), and (c) and subject to Subsections
             69      (5)(b) and (c), for fiscal years 2010-11 and 2011-12, a local school board may use the
             70      proceeds of the local school board's capital outlay levy for general fund purposes if the
             71      proceeds are not committed or dedicated to pay debt service or bond payments.
             72          (b) If a local school board uses the proceeds described in Subsection (5)(a) for general
             73      fund purposes, the local school board shall notify the public of the local school board's use of
             74      the capital outlay levy proceeds for general fund purposes:
             75          (i) prior to the board's budget hearing in accordance with the notification requirements
             76      described in Section 53A-19-102 ; and
             77          (ii) at a budget hearing required in Section 53A-19-102 .
             78          (c) A local school board may not use the proceeds described in Subsection (5)(a) to
             79      fund the following accounting function classifications as provided in the Financial Accounting
             80      for Local and State School Systems guidelines developed by the National Center for Education
             81      Statistics:
             82          (i) 2300 Support Services - General District Administration; or
             83          (ii) 2500 Support Services - Central Services.
             84          Section 2. Section 53A-19-102 is amended to read:
             85           53A-19-102. Local school board's budget procedures.
             86          (1) (a) Prior to June 22 of each year, [each] a local school board shall adopt a budget

             87      and make appropriations for the next fiscal year.
             88          (b) If the tax rate in the proposed budget exceeds the certified tax rate defined in
             89      Section 59-2-924 , the local school board shall comply with Section 59-2-919 in adopting the
             90      budget, except as provided by Section 53A-17a-133 .
             91          (2) (a) Prior to the adoption or amendment of a budget containing a tax rate which
             92      does not exceed the certified tax rate, [the] a local school board shall hold a public hearing, as
             93      defined in Section 10-9a-103 , on the proposed budget or budget amendment.
             94          (b) In addition to complying with Title 52, Chapter 4, Open and Public Meetings Act,
             95      in regards to the public hearing described in Subsection (2)(a), the board shall:
             96          (i) publish the required newspaper notice at least 10 days before the day on which the
             97      hearing is held; and
             98          (ii) file a copy of the proposed budget with the local school board's business
             99      administrator for public inspection at least 10 days prior to the hearing.
             100          (3) [The] A local school board shall file a copy of the adopted budget with the state
             101      auditor and the State Board of Education.

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