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7 LONG TITLE
8 General Description:
9 This bill requires school districts to update information regarding the district's bond
10 debt at certain intervals.
11 Highlighted Provisions:
12 This bill:
13 ▸ requires school districts to update information regarding the district's bond debt at
14 certain intervals; and
15 ▸ makes technical changes.
16 Money Appropriated in this Bill:
17 None
18 Other Special Clauses:
19 None
20 Utah Code Sections Affected:
21 AMENDS:
22 53G-4-603, as renumbered and amended by Laws of Utah 2018, Chapter 3
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24 Be it enacted by the Legislature of the state of Utah:
25 Section 1. Section 53G-4-603 is amended to read:
26 53G-4-603. Additional indebtedness -- Election -- Voter information pamphlet.
27 (1) As used in this section:
28 (a) "Qualifying general obligation bond" means a bond:
29 (i) issued pursuant to Title 11, Chapter 14, Local Government Bonding Act; and
30 (ii) authorized by an election held on or after July 1, 2014.
31 (b) "Voter information pamphlet" means the notification required by Section
32 11-14-202.
33 (2) A local school board may require the qualified electors of the district to vote on a
34 proposition as to whether to incur indebtedness, subject to conditions provided in Title 11,
35 Chapter 14, Local Government Bonding Act, if:
36 (a) the debts of the district are equal to school taxes and other estimated revenues for
37 the school year, and it is necessary to create and incur additional indebtedness in order to
38 maintain and support schools within the district; or
39 (b) the local school board determines it advisable to issue school district bonds to
40 purchase school sites, buildings, or furnishings or to improve existing school property.
41 (3) A local school board shall specify, in the voter information pamphlet for a bond
42 election, a plan of finance, including:
43 (a) the specific project or projects for which a bond is to be issued; and
44 (b) a priority designation for each project.
45 (4) Except as provided in Subsection (5), a local school board shall ensure that
46 qualifying general obligation bond proceeds are used to complete projects in accordance with
47 the plan of finance described in Subsection (3).
48 (5) (a) After distribution to the public of the voter information pamphlet, with
49 two-thirds majority approval of the local school board, a local school board may upon a
50 determination of compelling circumstances adjust the plan of finance described in Subsection
51 (3) by:
52 (i) changing the priority designation of a project;
53 (ii) adding a project that was not listed in the voter information pamphlet; or
54 (iii) removing a project that was listed in the voter information pamphlet.
55 (b) A local school board may not vote on more than one adjustment described in
56 Subsection (5)(a) per meeting.
57 (6) For a qualifying general obligation bond, a local school board shall:
58 (a) in accordance with Subsection (6)(b), post on the local school board's website:
59 [
60 [
61 finance, including:
62 [
63 [
64 [
65 [
66 [
67 (b) update the information described in Subsection (6)(a):
68 (i) before the beginning of each new fiscal year;
69 (ii) upon full repayment of a bond debt;
70 (iii) when the school district issues or proposes a new bond; and
71 (iv) no less than 30 days before any vote on the issuance of a new bond by the local
72 school board or the public.
73 (7) (a) If a local school board violates Subsection (4), a registered voter in the school
74 district may file an action for an extraordinary writ to prohibit the local school board from
75 adjusting the plan of finance without obtaining the necessary local school board approval.
76 (b) If a registered voter prevails in an action under Subsection (7)(a), the court shall
77 award reasonable costs and attorney fees to the registered voter.
78 (c) The action described in Subsection (7)(a) may not be used to challenge the validity
79 of a bond.
80 Section 2. Effective date.
81 This bill takes effect on May 1, 2024.