Rep. Norm Thurston — Voting Record

Bill

Number

S.B. 94 First Substitute (2017GS)

Sponsor

Sen. Fillmore, L.

Final action

Governor Signed 3/25/2017

Outcome

Became law — signed by Gov. Gary R. Herbert

Summary

What it does

• This bill:
• defines terms;
• modifies the circumstances under which a local district may levy or collect a property tax that exceeds the certified tax rate;
• imposes requirements for a member of an appointed board of trustees to report the property tax increase to the legislative body that appointed or nominated the member to the board of trustees; and
• makes technical and conforming changes.

Every vote on this bill

Bill text

LOCAL DISTRICT REVISIONS
GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Lincoln Fillmore
House Sponsor: 
Steve Eliason
Cosponsors:
Curtis S. Bramble
Howard A. Stephenson
LONG TITLE
General Description:
This bill modifies provisions related to property taxes levied by a local district.
Highlighted Provisions:
This bill:
▸ defines terms;
▸ modifies the circumstances under which a local district may levy or collect a
property tax that exceeds the certified tax rate;
▸ imposes requirements for a member of an appointed board of trustees to report the
property tax increase to the legislative body that appointed or nominated the
member to the board of trustees; and
▸ makes technical and conforming changes.
Money Appropriated in this Bill:
None
Other Special Clauses:
This bill provides a special effective date.
Utah Code Sections Affected:
AMENDS:
17B-1-1001
, as last amended by Laws of Utah 2013, Chapter 415
17B-2a-1009
, as last amended by Laws of Utah 2013, Chapter 415
ENACTS:
17B-1-1003
, Utah Code Annotated 1953
Be it enacted by the Legislature of the state of Utah:
Section 1. Section 
17B-1-1001
 is amended to read:
17B-1-1001.
Provisions applicable to property tax levy.
(1) Each local district that levies and collects property taxes shall levy and collect them
according to the provisions of Title 59, Chapter 2, Property Tax Act.
(2) As used in this section[
, "elected official" means a local district board of trustees
member who
]:
[
(a) is elected to the board of trustees by local district voters at an election held for that
purpose, including a member elected under Subsection (4);
]
[
(b) holds, at the time of appointment to the board of trustees, an elected position with
a municipality, county, or another local district that is partially or completely included within
the boundaries of the local district;
]
[
(c) is appointed in accordance with Subsection 
17B-1-303
(5) or 
17B-1-306
(4)(f); or
]
[
(d) is considered to be elected in accordance with Subsection 
17B-1-306
(4)(g).
]
(a) "Appointed board of trustees" means a board of trustees of a local district that
includes a member who is appointed to the board of trustees in accordance with Section
17B-1-304
, Subsection 
17B-1-303
(5), Subsection 
17B-1-306
(4)(f), or any of the applicable
provisions in Title 17B, Chapter 2a, Provisions Applicable to Different Types of Local
Districts.
(b) "Elected board of trustees" means a board of trustees of a local district that consists
entirely of members who are elected to the board of trustees in accordance with Subsection (4),
Section 
17B-1-306
, or any of the applicable provisions in Title 17B, Chapter 2a, Provisions
Applicable to Different Types of Local Districts.
[
(3) (a) Except as provided in Subsection (3)(b), a local district may not levy or collect
property tax revenue that exceeds the certified tax rate during a taxable year that begins on or
after January 1, 2011.
]
[
(b)
] 
(3) (a)
 [
Notwithstanding Subsection (3)(a)
] 
For a taxable year beginning on or
after January 1, 2018
, a local district may 
not
 levy or collect property tax revenue that exceeds
the certified tax rate [
during a taxable year that begins on or after January 1, 2011, if
] 
unless
:
(i) [
and
] to the extent that the revenue from the property tax was pledged before
January 1, [
2011,
] 
2018, the local district pledges the property tax revenue
 to pay for bonds or
other obligations of the local district; 
or
[
(ii) the members of the board of trustees are all elected officials;
]
[
(iii) the majority of the board of trustees are elected officials; or
]
[
(iv)
] 
(ii)
 the proposed tax or increase in the property tax rate has been approved by:
(A) an elected board of trustees;
(B) subject to Subsection (3)(b), an appointed board of trustees;
[
(A)
] 
(C)
 a majority of the registered voters within the local district [
at
] 
who vote in
 an
election held for that purpose on a date specified in Section 
20A-1-204
;
[
(B)
] 
(D)
 the legislative body of the appointing authority; or
[
(C)
] 
(E)
 the legislative body of:
(I) a majority of the municipalities partially or completely included within the
boundary of the specified local district; or
(II) the county in which the specified local district is located, if the county has some or
all of its unincorporated area included within the boundary of the specified local district.
(b) For a local district with an appointed board of trustees, each appointed member of
the board of trustees shall comply with the trustee reporting requirements described in Section
17B-1-1003
 before the local district may impose a property tax levy that exceeds the certified
tax rate.
(4) (a) Notwithstanding provisions to the contrary in Title 17B, Chapter 2a, Provisions
Applicable to Different Types of Local Districts, and [
for purposes of Subsection (3)(b),
]
subject to Subsection (4)(b),
 members of the board of trustees of a local district shall be
elected, if[
, subject to Subsection (4)(b)
]:
(i) two-thirds of all members of the board of trustees of the local district vote in favor
of changing to an elected board 
of trustees
; and
(ii) the legislative body of each municipality or county that appoints a member to the
board of trustees adopts a resolution approving the change to an elected board 
of trustees
.
(b) A change to an elected board of trustees under Subsection (4)(a) may not shorten
the term of any member of the board of trustees serving at the time of the change.
(5) Subsections (2), (3), and (4) do not apply to:
(a) Title 17B, Chapter 2a, Part 6, Metropolitan Water District Act;
(b) Title 17B, Chapter 2a, Part 10, Water Conservancy District Act; or
(c) a local district in which:
(i) the board of trustees consists solely of:
(A) land owners or the land owners' agents; or
(B) as described in Subsection 
17B-1-302
(1)(c), land owners or the land owners' agents
or officers; and
(ii) there are no residents within the local district at the time a property tax is levied.
Section 2. Section 
17B-1-1003
 is enacted to read:
 17B-1-1003.
Trustee reporting requirement.
(1) As used in this section:
(a) "Appointed board of trustees" means a board of trustees of a local district that
includes a member who is appointed to the board of trustees in accordance with Section
17B-1-304
, Subsection 
17B-1-303
(5), Subsection 
17B-1-306
(4)(f), or any of the applicable
provisions in Title 17B, Chapter 2a, Provisions Applicable to Different Types of Local
Districts.
(b) "Legislative entity" means:
(i) the member's appointing authority, if the appointing authority is a legislative body;
or
(ii) the member's nominating entity, if the appointing authority is not a legislative body.
(c) (i) "Member" means an individual who is appointed to a board of trustees for a
local district in accordance with Section 
17B-1-304
, Subsection 
17B-1-303
(5), Subsection
17B-1-306
(4)(f), or any of the applicable provisions in Title 17B, Chapter 2a, Provisions
Applicable to Different Types of Local Districts.
(ii) "Member" includes a member of the board of trustees who holds an elected
position with a municipality, county, or another local district that is partially or completely
included within the boundaries of the local district.
(d) "Nominating entity" means the legislative body that submits nominees for
appointment to the board of trustees to an appointing authority.
(e) "Property tax increase" means a property tax levy that exceeds the certified tax rate
for the taxable year.
(2) (a) If a local district board of trustees adopts a tentative budget that includes a
property tax increase, each member shall report to the member's legislative entity on the
property tax increase.
(b) (i) The local district shall request that each of the legislative entities that appoint or
nominate a member to the local district's board of trustees hear the report required by
Subsection (2)(a) at a public meeting of each legislative entity.
(ii) The request to make a report may be made by:
(A) the member appointed or nominated by the legislative entity; or
(B) another member of the board of trustees.
(c) The member appointed or nominated by the legislative entity shall make the report
required by Subsection (2)(a) at a public meeting that:
(i) complies with Title 52, Chapter 4, Open and Public Meetings Act;
(ii) includes the report as a separate agenda item; and
(iii) is held within 40 days after the day on which the legislative entity receives a
request to hear the report.
(d) (i) If the legislative entity does not have a scheduled meeting within 40 days after
the day on which the legislative entity receives a request to hear the report required by
Subsection (2)(a), the legislative entity shall schedule a meeting for that purpose.
(ii) If the legislative entity fails to hear the report at a public meeting that meets the
criteria described in Subsection (2)(c), the trustee reporting requirements under this section
shall be considered satisfied.
(3) (a) A report on a property tax increase at a legislative entity's public meeting shall
include:
(i) a statement that the local district intends to levy a property tax at a rate that exceeds
the certified tax rate for the taxable year;
(ii) the dollar amount of and purpose for additional ad valorem tax revenue that would
be generated by the proposed increase in the certified tax rate;
(iii) the approximate percentage increase in ad valorem tax revenue for the local
district based on the proposed property tax increase; and
(iv) any other information requested by the legislative entity.
(b) The legislative entity shall allow time during the meeting for comment from the
legislative entity and members of the public on the property tax increase.
(4) (a) If more than one member is appointed to the board of trustees by the same
legislative entity, a majority of the members appointed or nominated by the legislative entity
shall be present to provide the report required by Subsection (2) and described in Subsection
(3).
(b) The chair of the board of trustees shall appoint another member of the board of
trustees to provide the report described in Subsection (3) to the legislative entity if:
(i) the member appointed or nominated by the legislative entity is unable or unwilling
to provide the report at a public meeting that meets the requirements of Subsection (3)(a); and
(ii) the absence of the member appointed or nominated by the legislative entity results
in:
(A) no member who was appointed or nominated by the legislative entity being present
to provide the report; or
(B) an inability to comply with Subsection (4)(a).
(5) A local district board of trustees may approve a property tax increase only after the
conditions of this section have been satisfied or considered satisfied for each member of the
board of trustees.
Section 3. Section 
17B-2a-1009
 is amended to read:
17B-2a-1009.
Limit on property tax authority -- Exceptions.
(1) As used in this section[
, "elected official" means a water conservancy district board
of trustee member who
]:
(a) "Appointed board of trustees" means a board of trustees of a water conservancy
district that includes a member who is appointed to the board of trustees in accordance with
this part.
(b) "Elected board of trustees" means a board of trustees of a water conservancy district
that consists entirely of members who are elected to the board of trustees in accordance with
this part.
[
(a) is elected to the board of trustees by water conservancy district voters at an
election held for that purpose;
]
[
(b) holds, at the time of appointment to the board of trustees, an elected position with
a municipality, county, or local district that is partially or completely included within the
boundaries of the water conservancy district; or
]
[
(c) is appointed in accordance with Subsection 
17B-1-303
(5) or 
17B-1-306
(4)(f) or
(g).
]
(2) 
(a)
 [
The board of trustees of
] 
For a taxable year beginning on or after January 1,
2018,
 a water conservancy district may not collect property tax revenue [
in a tax year beginning
on or after January 1, 2015,
] that would exceed the certified tax rate under Section 
59-2-924
unless 
the proposed tax levy has been previously approved by
:
[
(a) the members of the board of trustees are all elected officials;
]
[
(b) the majority of the board of trustees are elected officials; or
]
[
(c) the proposed tax levy has previously been approved by:
]
(i) an elected board of trustees;
(ii) subject to Subsection (2)(b), an appointed board of trustees;
[
(i)
] 
(iii)
 a majority of the water conservancy district voters [
at
] 
who vote in
 an election
held for that purpose on a date specified in Section 
20A-1-204
; or
[
(ii)
] 
(iv)
 for a district described in Subsection 
17B-2a-1005
(2)(b), the appointing
authority.
(b) For a water conservancy district with an appointed board of trustees, each
appointed member of the board of trustees shall comply with the trustee reporting requirements
described in Section 
17B-1-1003
 before the water conservancy district may impose a property
tax levy that exceeds the certified tax rate.
Section 4. 
Effective date.
This bill takes effect on January 1, 2018.