Download Zipped Introduced WordPerfect HB0199S01.ZIP
[Status][Bill Documents][Fiscal Note][Bills Directory]

First Substitute H.B. 199

Representative Daniel McCay proposes the following substitute bill:


             1     
FISCAL PERIOD FOR POLITICAL SUBDIVISIONS

             2     
2013 GENERAL SESSION

             3     
STATE OF UTAH

             4     
Chief Sponsor: Daniel McCay

             5     
Senate Sponsor: ____________

             6     
             7      LONG TITLE
             8      General Description:
             9          This bill amends provisions related to the fiscal period for a county, local district, and
             10      community development and renewal agency.
             11      Highlighted Provisions:
             12          This bill:
             13          .    requires that a county adopt a budget for an annual fiscal period that begins on July
             14      1 of each year and ends on June 30 of the following year or a biennial fiscal period
             15      that begins on July 1 and ends on June 30 of the second year immediately following;
             16          .    provides language related to the transition of a county from a calendar fiscal period;
             17          .    requires that a local district adopt a budget for a fiscal period that begins on July 1
             18      of each year and ends on June 30 of the following year;
             19          .    provides language related to the transition of a local district calendar year entity to a
             20      fiscal year entity;
             21          .    requires that a community development and renewal agency adopt a budget for a
             22      fiscal period that begins on July 1 of each year and ends on June 30 of the following
             23      year;
             24          .    provides language related to the transition of an agency from a calendar fiscal
             25      period; and


             26          .    makes technical corrections.
             27      Money Appropriated in this Bill:
             28          None
             29      Other Special Clauses:
             30          This bill provides revisor instructions to create future versions for Sections 17-36-3.5,
             31      17-36-26.5, 17B-1-602, and 17C-1-601.
             32      Utah Code Sections Affected:
             33      AMENDS:
             34          17-36-3.5, as enacted by Laws of Utah 1999, Chapter 300
             35          17-36-26.5, as enacted by Laws of Utah 1999, Chapter 300
             36          17B-1-602, as renumbered and amended by Laws of Utah 2007, Chapter 329
             37          17C-1-601, as last amended by Laws of Utah 2010, Chapter 90
             38      ENACTS:
             39          17-36-3.6, Utah Code Annotated 1953
             40          17B-1-602.5, Utah Code Annotated 1953
             41      Utah Code Sections Affected by Revisor Instructions:
             42          17-36-3.5, as enacted by Laws of Utah 1999, Chapter 300
             43          17-36-26.5, as enacted by Laws of Utah 1999, Chapter 300
             44          17B-1-602, as renumbered and amended by Laws of Utah 2007, Chapter 329
             45          17C-1-601, as last amended by Laws of Utah 2010, Chapter 90
             46     
             47      Be it enacted by the Legislature of the state of Utah:
             48          Section 1. Section 17-36-3.5 is amended to read:
             49           17-36-3.5. Fiscal period -- Annual or biennial -- Fiscal year beginning on July 1,
             50      2017.
             51          (1) [Except] (a) Before July 1, 2017, and except as provided in Subsection (2) and
             52      Section 17-36-3.6 , the fiscal period for each county shall be an annual period beginning on
             53      January 1 of each year and ending December 31 of the same calendar year.
             54          (b) On and after July 1, 2017, and except as provided in Subsection (2), the fiscal
             55      period for each county shall be the period beginning on July 1 of each year and ending on June
             56      30 of the following year.


             57          (2) (a) Notwithstanding Subsection (1), the legislative body of a county may, by
             58      ordinance, adopt for the county:
             59          (i) before July 1, 2017, a fiscal period that is a biennial period beginning January 1 and
             60      ending December 31 of the following calendar year[.]; and
             61          (ii) on and after July 1, 2017, a fiscal period that is a biennial period beginning July 1
             62      and ending June 30 of the second year immediately following.
             63          (b) Each county adopting an ordinance under Subsection (2)(a) shall separately specify
             64      in its budget the amount of ad valorem property tax it intends to levy and collect during both
             65      the first half and the second half of the budget period.
             66          (c) Each county that adopts a fiscal period that is a biennial period under Subsection
             67      (2)(a) shall:
             68          (i) comply with Sections 59-2-912 through 59-2-926 as if it had adopted a fiscal period
             69      that is an annual period; and
             70          (ii) allocate budgeted revenues and expenditures to each of the two annual periods in
             71      the biennial budget.
             72          (d) The legislative body of each county that adopts a fiscal period that is a biennial
             73      period under Subsection (2)(a) shall, within 10 days after the adoption of the ordinance
             74      adopting the biennial period, deliver a copy of the ordinance to the state auditor.
             75          Section 2. Section 17-36-3.6 is enacted to read:
             76          17-36-3.6. Transition from calendar fiscal period.
             77          (1) Notwithstanding any other provision of law, a county shall comply, as appropriate,
             78      with the following provisions to transition from a calendar year to a fiscal year budget period in
             79      accordance with Section 17-36-3.5 .
             80          (2) For a county with an annual fiscal period, the county shall adopt:
             81          (a) for the fiscal period that begins on January 1, 2016, an extended budget for the
             82      budget period of January 1, 2016, through June 30, 2017; and
             83          (b) for the fiscal period that begins on July 1, 2017, a budget for the budget period of
             84      July 1, 2017, through June 30, 2018.
             85          (3) For a county with a biennial fiscal period of January 1, 2015, through December 31,
             86      2016, the county shall adopt:
             87          (a) for the fiscal period that begins on January 1, 2017, a truncated budget for the


             88      budget period of January 1, 2017, through June 30, 2017; and
             89          (b) for the fiscal period that begins on July 1, 2017, a budget for the budget period of
             90      July 1, 2017, through June 30, 2019.
             91          (4) For a county with a biennial fiscal period that expires December 31, 2015, the
             92      county shall adopt:
             93          (a) for the fiscal period that begins on January 1, 2016, a truncated budget for the
             94      budget period of January 1, 2016, through June 30, 2017; and
             95          (b) for the fiscal period that begins on July 1, 2017, a budget for the budget period of
             96      July 1, 2017, through June 30, 2019.
             97          (5) A county transitioning from a calendar to a fiscal year fiscal period shall comply
             98      with a date or time period established in this chapter, including a date or time period for the
             99      preparation of a tentative budget under Section 17-36-10 , the notice of a budget hearing under
             100      Section 17-36-12 , the scheduling of a hearing on a tentative budget under Section 17-36-13 , a
             101      meeting or hearing to adopt a resolution to adopt the budget under Section 17-36-15 , and other
             102      applicable dates or time periods in a manner that complies with the fiscal and budget periods
             103      described in this section and Section 17-36-3.5 .
             104          (6) Notwithstanding the requirements of Subsection 51-2a-202 (1)(a), a county that is
             105      required to file an audit, review, compilation, or fiscal report in accordance with Title 51,
             106      Chapter 2a, Accounting Reports From Political Subdivisions, Interlocal Organizations, and
             107      Other Local Entities, shall file the audit, review, compilation, or fiscal report, as appropriate,
             108      and within the time period set forth in Subsection 51-2a-202 (2)(b):
             109          (a) for a county described in Subsection (2):
             110          (i) for the 18 month budget period of January 1, 2016, through June 30, 2017; and
             111          (ii) for a budget period beginning on or after July 1, 2017, at least annually;
             112          (b) for a county described in Subsection (3):
             113          (i) for the 12 month budget period of January 1, 2015, through December 31, 2015;
             114          (ii) for the 18 month budget period of January 1, 2016, through June 30, 2017; and
             115          (iii) for a budget period beginning on or after July 1, 2017, at least annually;
             116          (c) for a county described in Subsection (4):
             117          (i) for the 18 month budget period of January 1, 2016, through June 30, 2017; and
             118          (ii) for a budget period beginning on or after July 1, 2017, at least annually.


             119          Section 3. Section 17-36-26.5 is amended to read:
             120           17-36-26.5. Review of second year's budget for biennial budgets.
             121          (1) In a county that has adopted a fiscal period that is a biennial period under
             122      Subsection 17-36-3.5 (2), the governing body shall[, in a public hearing before December 31 of
             123      the first year of the biennial period,] review the individual budgets of the funds set forth in
             124      Sections 17-36-8 and 17-36-32 for the second year of the biennial period[.] at a public hearing:
             125          (a) for a budget period before July 1, 2017, held before December 31 of the first year of
             126      the biennial period; and
             127          (b) for a budget period on and after July 1, 2017, held before June 30 of the first year of
             128      the biennial period.
             129          (2) In each review under Subsection (1), the governing body shall follow the
             130      procedures of Sections 17-36-12 and 17-36-13 for holding a public hearing.
             131          Section 4. Section 17B-1-602 is amended to read:
             132           17B-1-602. Fiscal year.
             133          The fiscal year of each local district shall be[,]:
             134          (1) before July 1, 2017, as determined by the board of trustees:
             135          [(1)] (a) the calendar year; or
             136          [(2)] (b) the period from July 1 to the following June 30[.]; and
             137          (2) on and after July 1, 2017, the period from July 1 to the following June 30.
             138          Section 5. Section 17B-1-602.5 is enacted to read:
             139          17B-1-602.5. Transition from calendar year entity to fiscal year entity.
             140          (1) Notwithstanding any other provision of law, a local district shall comply with the
             141      following provisions to transition from a calendar year entity to a fiscal year entity in
             142      accordance with Section 17B-1-602 .
             143          (2) (a) For a local district that is a calendar year entity on January 1, 2016, the local
             144      district shall adopt:
             145          (i) for the fiscal year that begins on January 1, 2016, an extended budget for the budget
             146      year of January 1, 2016, through June 30, 2017; and
             147          (ii) for the fiscal year that begins on July 1, 2017, a budget for the budget year of July
             148      1, 2017, through June 30, 2018.
             149          (b) A local district that is a calendar year entity before July 1, 2017, shall comply with


             150      the provisions in this part applicable to:
             151          (i) a calendar year entity during the duration of the budget year described in Subsection
             152      (2)(a)(i); and
             153          (ii) a fiscal year entity in preparation for the budget year described in Subsection
             154      (2)(a)(ii) and after the adoption of the budget for that year.
             155          (c) Notwithstanding the requirements of Subsection 51-2a-202 (1)(a), a local district
             156      that is required to file an audit, review, compilation, or fiscal report in accordance with Title
             157      51, Chapter 2a, Accounting Reports From Political Subdivisions, Interlocal Organizations, and
             158      Other Local Entities, shall file the audit, review, compilation, or fiscal report, as appropriate,
             159      and within the time period set forth in Subsection 51-2a-202 (2)(b):
             160          (i) for the 18 month budget period of January 1, 2016, through June 30, 2017; and
             161          (ii) for a budget period beginning on or after July 1, 2017, at least annually.
             162          (3) A local district transitioning from a calendar year entity to a fiscal year entity shall
             163      comply with a date or time period established in this chapter, including a date or time period
             164      applicable to the preparation of a tentative budget under Section 17B-1-607 , a meeting to
             165      review a tentative budget under Section 17B-1-607 , the notice requirements for a public
             166      hearing under Section 17B-1-609 , the public hearing on a tentative budget under Section
             167      17B-1-610 , the public hearing to consider adoption of the budget under Section 17B-1-614 , and
             168      other applicable dates or time periods in a manner that complies with a fiscal year and budget
             169      year described in this section and Section 17B-1-602 .
             170          Section 6. Section 17C-1-601 is amended to read:
             171           17C-1-601. Annual agency budget -- Fiscal year -- Public hearing required --
             172      Auditor forms -- Requirement to file form.
             173          (1) (a) Each agency shall prepare and its board adopt an annual budget of revenues and
             174      expenditures for the agency for each fiscal year.
             175          (b) Notwithstanding Subsection (1)(a), an agency that is created by a county that
             176      transitions from a calendar year to a fiscal period that begins on July 1 and ends on June 30, in
             177      accordance with Sections 17-36-3.5 and 17-36-3.6 , shall:
             178          (i) for the fiscal year that begins on January 1, 2016, adopt an extended budget for the
             179      budget period of January 1, 2016, through June 30, 2017;
             180          (ii) for the fiscal year that begins on July 1, 2017, adopt a budget for the budget period


             181      of July 1, 2017, through June 30, 2018; and
             182          (iii) adopt a budget for the fiscal period that begins on July 1 and ends on June 30 for
             183      each subsequent fiscal period.
             184          (c) Notwithstanding the requirements of Subsection 51-2a-202 (1)(a), an agency that is
             185      required to file an audit, review, compilation, or fiscal report in accordance with Title 51,
             186      Chapter 2a, Accounting Reports From Political Subdivisions, Interlocal Organizations, and
             187      Other Local Entities, shall file the audit, review, compilation, or fiscal report, as appropriate,
             188      and within the time period set forth in Subsection 51-2a-202 (2)(b):
             189          (i) for the 18 month budget period of January 1, 2016, through June 30, 2017; and
             190          (ii) for a budget period beginning on or after July 1, 2017, at least annually.
             191          (2) Each annual agency budget shall be adopted:
             192          (a) for an agency created by a city or town, before June 22; or
             193          (b) for an agency created by a county[, before December 15.]:
             194          (i) for a budget described in Subsection (1)(b)(i), before December 15, 2015;
             195          (ii) for a budget described in Subsection (1)(b)(ii), before June 22, 2017; and
             196          (iii) for each fiscal period subsequent to June 30, 2018, before June 22.
             197          (3) The agency's fiscal year shall be the same as the fiscal year of the community that
             198      created the agency.
             199          (4) (a) Before adopting an annual budget, each agency board shall hold a public hearing
             200      on the annual budget.
             201          (b) Each agency shall provide notice of the public hearing on the annual budget by:
             202          (i) (A) publishing at least one notice in a newspaper of general circulation within the
             203      agency boundaries, one week before the public hearing; or
             204          (B) if there is no newspaper of general circulation within the agency boundaries,
             205      posting a notice of the public hearing in at least three public places within the agency
             206      boundaries; and
             207          (ii) publishing notice on the Utah Public Notice Website created in Section 63F-1-701 ,
             208      at least one week before the public hearing.
             209          (c) Each agency shall make the annual budget available for public inspection at least
             210      three days before the date of the public hearing.
             211          (5) The state auditor shall prescribe the budget forms and the categories to be contained


             212      in each agency budget, including:
             213          (a) revenues and expenditures for the budget year;
             214          (b) legal fees; and
             215          (c) administrative costs, including rent, supplies, and other materials, and salaries of
             216      agency personnel.
             217          (6) (a) Within 90 days after adopting an annual budget, each agency board shall file a
             218      copy of the annual budget with the auditor of the county in which the agency is located, the
             219      State Tax Commission, the state auditor, the State Board of Education, and each taxing entity
             220      that levies a tax on property from which the agency collects tax increment.
             221          (b) The requirement of Subsection (6)(a) to file a copy of the annual budget with the
             222      state as a taxing entity is met if the agency files a copy with the State Tax Commission and the
             223      state auditor.
             224          Section 7. Revisor instructions to create future versions of Sections 17-36-3.5,
             225      17-36-26.5, 17B-1-602, and 17C-1-601.
             226          The Legislature intends that the Office of Legislative Research and General Counsel, in
             227      preparing the Utah Code database for publication, prepare a future version of the following
             228      sections to take effect on July 1, 2017:
             229          (1) Section 17-36-3.5 to read:
             230          " 17-36-3.5. Fiscal period -- Annual or biennial.
             231          (1) Except as provided in Subsection (2), the fiscal period for each county shall be [an
             232      annual period beginning on January 1 of each year and ending December 31 of the same
             233      calendar year] the period beginning on July 1 of each year and ending on June 30 of the
             234      following year.
             235          (2) (a) Notwithstanding Subsection (1), the legislative body of a county may, by
             236      ordinance, adopt for the county [a fiscal period that is a biennial period beginning January 1
             237      and ending December 31 of the following calendar year.] a fiscal period that is a biennial
             238      period beginning July 1 and ending June 30 of the second year immediately following.
             239          (b) Each county adopting an ordinance under Subsection (2)(a) shall separately specify
             240      in its budget the amount of ad valorem property tax it intends to levy and collect during both
             241      the first half and the second half of the budget period.
             242          (c) Each county that adopts a fiscal period that is a biennial period under Subsection


             243      (2)(a) shall:
             244          (i) comply with Sections 59-2-912 through 59-2-926 as if it had adopted a fiscal period
             245      that is an annual period; and
             246          (ii) allocate budgeted revenues and expenditures to each of the two annual periods in
             247      the biennial budget.
             248          (d) The legislative body of each county that adopts a fiscal period that is a biennial
             249      period under Subsection (2)(a) shall, within 10 days after the adoption of the ordinance
             250      adopting the biennial period, deliver a copy of the ordinance to the state auditor.";
             251          (2) Section 17-36-26.5 to read:
             252          " 17-36-26.5. Review of second year's budget for biennial budgets.
             253          (1) In a county that has adopted a fiscal period that is a biennial period under
             254      Subsection 17-36-3.5 (2), the governing body shall[, in a public hearing before December 31 of
             255      the first year of the biennial period,] review the individual budgets of the funds set forth in
             256      Sections 17-36-8 and 17-36-32 for the second year of the biennial period[.] at a public hearing
             257      held before June 30 of the first year of the biennial period.
             258          (2) In each review under Subsection (1), the governing body shall follow the
             259      procedures of Sections 17-36-12 and 17-36-13 for holding a public hearing.";
             260          (3) Section 17B-1-602 to read:
             261          " 17B-1-602. Fiscal year.
             262          The fiscal year of each local district shall be[, as determined by the board of trustees:]
             263      the period from July 1 to the following June 30.
             264          [(1) the calendar year; or]
             265          [(2) the period from July 1 to the following June 30.]"; and
             266          (4) Section 17C-1-601 to read:
             267          " 17C-1-601. Annual agency budget -- Fiscal year -- Public hearing required --
             268      Auditor forms -- Requirement to file form.
             269          (1) Each agency shall prepare and its board adopt an annual budget of revenues and
             270      expenditures for the agency for each fiscal year.
             271          (2) Each annual agency budget shall be adopted:
             272          (a) for an agency created by a city or town, before June 22; or
             273          (b) for an agency created by a county, [before December 15.] before June 22.


             274          (3) The agency's fiscal year shall be the same as the fiscal year of the community that
             275      created the agency.
             276          (4) (a) Before adopting an annual budget, each agency board shall hold a public hearing
             277      on the annual budget.
             278          (b) Each agency shall provide notice of the public hearing on the annual budget by:
             279          (i) (A) publishing at least one notice in a newspaper of general circulation within the
             280      agency boundaries, one week before the public hearing; or
             281          (B) if there is no newspaper of general circulation within the agency boundaries,
             282      posting a notice of the public hearing in at least three public places within the agency
             283      boundaries; and
             284          (ii) publishing notice on the Utah Public Notice Website created in Section 63F-1-701 ,
             285      at least one week before the public hearing.
             286          (c) Each agency shall make the annual budget available for public inspection at least
             287      three days before the date of the public hearing.
             288          (5) The state auditor shall prescribe the budget forms and the categories to be contained
             289      in each agency budget, including:
             290          (a) revenues and expenditures for the budget year;
             291          (b) legal fees; and
             292          (c) administrative costs, including rent, supplies, and other materials, and salaries of
             293      agency personnel.
             294          (6) (a) Within 90 days after adopting an annual budget, each agency board shall file a
             295      copy of the annual budget with the auditor of the county in which the agency is located, the
             296      State Tax Commission, the state auditor, the State Board of Education, and each taxing entity
             297      that levies a tax on property from which the agency collects tax increment.
             298          (b) The requirement of Subsection (6)(a) to file a copy of the annual budget with the
             299      state as a taxing entity is met if the agency files a copy with the State Tax Commission and the
             300      state auditor."


[Bill Documents][Bills Directory]