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First Substitute H.B. 422

Representative Bradley G. Last proposes the following substitute bill:


             1     
INITIATIVE AND REFERENDUM IMPACT DISCLOSURE

             2     
2014 GENERAL SESSION

             3     
STATE OF UTAH

             4     
Chief Sponsor: Bradley G. Last

             5     
Senate Sponsor: J. Stuart Adams

             6     
             7      LONG TITLE
             8      General Description:
             9          This bill changes the requirements for a financial impact disclosure.
             10      Highlighted Provisions:
             11          This bill:
             12          .    amends definitions;
             13          .    for a local initiative, requires an initial fiscal impact estimate to contain information
             14      regarding the legal impact of the initiative;
             15          .    for a local referendum:
             16              .    establishes requirements for a fiscal impact estimate; and
             17              .    requires a fiscal impact estimate to contain information regarding the legal
             18      impact of the referendum; and
             19          .    makes technical and conforming changes.
             20      Money Appropriated in this Bill:
             21          None
             22      Other Special Clauses:
             23          None
             24      Utah Code Sections Affected:
             25      AMENDS:


             26           20A-7-101 , as last amended by Laws of Utah 2012, Chapters 17 and 72
             27           20A-7-502.5 , as last amended by Laws of Utah 2011, Chapter 17
             28           20A-7-513 , as enacted by Laws of Utah 2005, Chapter 236
             29      ENACTS:
             30           20A-7-602.5 , Utah Code Annotated 1953
             31     
             32      Be it enacted by the Legislature of the state of Utah:
             33          Section 1. Section 20A-7-101 is amended to read:
             34           20A-7-101. Definitions.
             35          As used in this chapter:
             36          (1) "Budget officer" means:
             37          (a) (i) for a county of the first class, the person designated as budget officer in Section
             38      17-19a-203 ; or
             39          (ii) for a county not described in Subsection (1)(a)(i), a person designated as budget
             40      officer in Section 17-19-19 ;
             41          (b) for a city, the person designated as budget officer in Subsection 10-6-106 (5); or
             42          (c) for a town, the town council.
             43          (2) "Certified" means that the county clerk has acknowledged a signature as being the
             44      signature of a registered voter.
             45          (3) "Circulation" means the process of submitting an initiative or referendum petition
             46      to legal voters for their signature.
             47          (4) "Final fiscal impact statement" means a financial statement prepared after voters
             48      approve an initiative that contains the information required by Subsection 20A-7-202.5 (2) or
             49      20A-7-502.5 (2).
             50          (5) "Initial fiscal impact estimate" means:
             51          (a) a financial statement prepared [according to the terms of] under Section
             52      20A-7-202.5 [or 20A-7-502.5 ] after the filing of an application for an initiative petition[.]; or
             53          (b) a financial and legal statement prepared under Section 20A-7-502.5 or 20A-7-602.5
             54      for an initiative or referendum petition.
             55          (6) "Initiative" means a new law proposed for adoption by the public as provided in
             56      this chapter.


             57          (7) "Initiative packet" means a copy of the initiative petition, a copy of the proposed
             58      law, and the signature sheets, all of which have been bound together as a unit.
             59          (8) "Legal signatures" means the number of signatures of legal voters that:
             60          (a) meet the numerical requirements of this chapter; and
             61          (b) have been certified and verified as provided in this chapter.
             62          (9) "Legal voter" means a person who:
             63          (a) is registered to vote; or
             64          (b) becomes registered to vote before the county clerk certifies the signatures on an
             65      initiative or referendum petition.
             66          (10) "Local attorney" means the county attorney, city attorney, or town attorney in
             67      whose jurisdiction a local initiative or referendum petition is circulated.
             68          (11) "Local clerk" means the county clerk, city recorder, or town clerk in whose
             69      jurisdiction a local initiative or referendum petition is circulated.
             70          (12) (a) "Local law" includes an ordinance, resolution, master plan, and any
             71      comprehensive zoning regulation adopted by ordinance or resolution.
             72          (b) "Local law" does not include an individual property zoning decision.
             73          (13) "Local legislative body" means the legislative body of a county, city, or town.
             74          (14) "Local obligation law" means a local law passed by the local legislative body
             75      regarding a bond that was approved by a majority of qualified voters in an election.
             76          (15) "Measure" means a proposed constitutional amendment, an initiative, or
             77      referendum.
             78          (16) "Referendum" means a process by which a law passed by the Legislature or by a
             79      local legislative body is submitted or referred to the voters for their approval or rejection.
             80          (17) "Referendum packet" means a copy of the referendum petition, a copy of the law
             81      being submitted or referred to the voters for their approval or rejection, and the signature
             82      sheets, all of which have been bound together as a unit.
             83          (18) (a) "Signature" means a holographic signature.
             84          (b) "Signature" does not mean an electronic signature.
             85          (19) "Signature sheets" means sheets in the form required by this chapter that are used
             86      to collect signatures in support of an initiative or referendum.
             87          (20) "Sponsors" means the legal voters who support the initiative or referendum and


             88      who sign the application for petition copies.
             89          (21) "Sufficient" means that the signatures submitted in support of an initiative or
             90      referendum petition have been certified and verified as required by this chapter.
             91          (22) "Verified" means acknowledged by the person circulating the petition as required
             92      in Sections 20A-7-205 and 20A-7-305 .
             93          Section 2. Section 20A-7-502.5 is amended to read:
             94           20A-7-502.5. Initial fiscal and legal impact estimate -- Preparation of estimate --
             95      Challenge to estimate.
             96          (1) Within three working days of receipt of an application for an initiative petition, the
             97      local clerk shall submit a copy of the application to the county, city, or town's budget officer.
             98          (2) (a) The budget officer, together with legal counsel, shall prepare an unbiased, good
             99      faith estimate of the fiscal and legal impact of the law proposed by the initiative that contains:
             100          (i) a dollar amount representing the total estimated fiscal impact of the proposed law;
             101          (ii) if the proposed law would increase or decrease taxes, a dollar amount representing
             102      the total estimated increase or decrease for each type of tax affected under the proposed law
             103      and a dollar amount representing the total estimated increase or decrease in taxes under the
             104      proposed law;
             105          (iii) if the proposed law would result in the issuance or a change in the status of bonds,
             106      notes, or other debt instruments, a dollar amount representing the total estimated increase or
             107      decrease in public debt under the proposed law;
             108          (iv) a listing of all sources of funding for the estimated costs associated with the
             109      proposed law showing each source of funding and the percentage of total funding provided
             110      from each source;
             111          (v) a dollar amount representing the estimated costs or savings, if any, to state and
             112      local government entities under the proposed law; [and]
             113          (vi) the proposed law's legal impact, including:
             114          (A) any significant effects on a person's vested property rights;
             115          (B) any significant effects on other laws or ordinances;
             116          (C) any significant legal liability the city, county, or town may incur; and
             117          (D) any other significant legal impact as determined by the budget officer and the legal
             118      counsel; and


             119          [(vi)] (vii) a concise explanation, not exceeding 100 words, of the above information
             120      and of the estimated fiscal impact, if any, under the proposed law.
             121          (b) (i) If the proposed law is estimated to have no fiscal impact, the local budget officer
             122      shall include a summary statement in the initial fiscal impact statement in substantially the
             123      following form:
             124          "The (title of the local budget officer) estimates that the law proposed by this initiative
             125      would have no significant fiscal impact and would not result in either an increase or decrease in
             126      taxes or debt."
             127          (ii) If the proposed law is estimated to have a fiscal impact, the local budget officer
             128      shall include a summary statement in the initial fiscal impact estimate in substantially the
             129      following form:
             130          "The (title of the local budget officer) estimates that the law proposed by this initiative
             131      would result in a total fiscal expense/savings of $______, which includes a (type of tax or
             132      taxes) tax increase/decrease of $______ and a $______ increase/decrease in public debt."
             133          (iii) If the estimated fiscal impact of the proposed law is highly variable or is otherwise
             134      difficult to reasonably express in a summary statement, the local budget officer may include in
             135      the summary statement a brief explanation that identifies those factors affecting the variability
             136      or difficulty of the estimate.
             137          (3) The budget officer shall prepare an unbiased, good faith estimate of the cost of
             138      printing and distributing information related to the initiative petition in the voter information
             139      pamphlet as required by Section 20A-7-402 .
             140          (4) Within 25 calendar days from the date that the local clerk delivers a copy of the
             141      application, the budget officer shall:
             142          (a) deliver a copy of the initial fiscal impact estimate, including the legal impact
             143      estimate, to the local clerk's office; and
             144          (b) mail a copy of the initial fiscal impact estimate, including the legal impact estimate,
             145      to the first five sponsors named in the application.
             146          (5) (a) Three or more of the sponsors of the petition may, within 20 calendar days of
             147      the date of delivery of the initial fiscal impact estimate to the local clerk's office, file a petition
             148      with the Supreme Court, alleging that the initial fiscal impact estimate, including the legal
             149      impact estimate, taken as a whole, is an inaccurate estimate of the fiscal or legal impact of the


             150      initiative.
             151          (b) (i) There is a presumption that the initial fiscal impact estimate, including the legal
             152      impact estimate, prepared by the budget officer and legal counsel is based upon reasonable
             153      assumptions, uses reasonable data, and applies accepted analytical methods to present the
             154      estimated fiscal and legal impact of the initiative.
             155          (ii) The Supreme Court may not revise the contents of, or direct the revision of, the
             156      initial fiscal impact estimate, including the legal impact estimate, unless the plaintiffs rebut the
             157      presumption by clear and convincing evidence that establishes that the fiscal estimate,
             158      including the legal impact estimate, taken as a whole, is an inaccurate statement of the
             159      estimated fiscal or legal impact of the initiative.
             160          (iii) The Supreme Court may refer an issue related to the initial fiscal impact estimate,
             161      including the legal impact estimate, to a master to examine the issue and make a report in
             162      accordance with Utah Rules of Civil Procedure, Rule 53.
             163          (c) The Supreme Court shall certify to the local clerk an initial fiscal impact estimate,
             164      including the legal impact estimate, for the measure that meets the requirements of this section.
             165          Section 3. Section 20A-7-513 is amended to read:
             166           20A-7-513. Fiscal review -- Repeal, amendment, or resubmission.
             167          (1) No later than 60 days after the date of an election in which the voters approve an
             168      initiative petition, the budget officer shall:
             169          (a) for each initiative approved by the voters, prepare a final fiscal impact statement,
             170      using current financial information and containing the information required by Subsection
             171      20A-7-502.5 (2), except for the information required by Subsection 20A-7-502.5 (2)(a)(vi); and
             172          (b) deliver a copy of the final fiscal impact statement to:
             173          (i) the local legislative body of the jurisdiction where the initiative was circulated;
             174          (ii) the local clerk; and
             175          (iii) the first five sponsors listed on the initiative application.
             176          (2) If the final fiscal impact statement exceeds the initial fiscal impact estimate by 25%
             177      or more, the local legislative body shall review the final fiscal impact statement and may, by a
             178      majority vote:
             179          (a) repeal the law established by passage of the initiative;
             180          (b) amend the law established by the passage of the initiative; or


             181          (c) pass a resolution informing the voters that they may file an initiative petition to
             182      repeal the law enacted by the passage of the initiative.
             183          Section 4. Section 20A-7-602.5 is enacted to read:
             184          20A-7-602.5. Initial fiscal and legal impact estimate -- Preparation of estimate --
             185      Challenge to estimate.
             186          (1) Within three working days after the day on which the local clerk receives an
             187      application for a referendum petition, the local clerk shall submit a copy of the application to
             188      the county, city, or town's budget officer.
             189          (2) (a) The budget officer, together with legal counsel, shall prepare an unbiased, good
             190      faith estimate of the fiscal and legal impact of repealing the law the referendum proposes to
             191      repeal that contains:
             192          (i) a dollar amount representing the total estimated fiscal impact of repealing the law;
             193          (ii) if repealing the law would increase or decrease taxes, a dollar amount representing
             194      the total estimated increase or decrease for each type of tax that would be impacted by the law's
             195      repeal and a dollar amount representing the total estimated increase or decrease in taxes that
             196      would result from the law's repeal;
             197          (iii) if repealing the law would result in the issuance or a change in the status of bonds,
             198      notes, or other debt instruments, a dollar amount representing the total estimated increase or
             199      decrease in public debt that would result;
             200          (iv) a listing of all sources of funding for the estimated costs that would be associated
             201      with the law's repeal, showing each source of funding and the percentage of total funding that
             202      would be provided from each source;
             203          (v) a dollar amount representing the estimated costs or savings, if any, to state and
             204      local government entities if the law were repealed;
             205          (vi) the legal impacts that would result from repealing the law, including:
             206          (A) any significant effects on a person's vested property rights;
             207          (B) any significant effects on other laws or ordinances;
             208          (C) any significant legal liability the city, county, or town may incur; and
             209          (D) any other significant legal impact as determined by the budget officer and the legal
             210      counsel; and
             211          (vii) a concise explanation, not exceeding 100 words, of the above information and of


             212      the estimated fiscal impact, if any, if the law were repealed.
             213          (b) (i) If repealing the law would have no fiscal impact, the local budget officer shall
             214      include a summary statement in the initial fiscal impact statement in substantially the following
             215      form:
             216          "The (title of the local budget officer) estimates that repealing the law this referendum
             217      proposes to repeal would have no significant fiscal impact and would not result in either an
             218      increase or decrease in taxes or debt."
             219          (ii) If repealing the law is estimated to have a fiscal impact, the local budget officer
             220      shall include a summary statement describing the fiscal impact.
             221          (iii) If the estimated fiscal impact of repealing the law is highly variable or is otherwise
             222      difficult to reasonably express in a summary statement, the local budget officer may include in
             223      the summary statement a brief explanation that identifies those factors impacting the variability
             224      or difficulty of the estimate.
             225          (3) Within 25 calendar days after the day on which the local clerk submits a copy of the
             226      application under Subsection (1), the budget officer shall:
             227          (a) deliver a copy of the initial fiscal impact estimate, including the legal impact
             228      estimate, to the local clerk's office; and
             229          (b) mail a copy of the initial fiscal impact estimate, including the legal impact estimate,
             230      to the first five sponsors named in the application.


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