Bill
School District Use of Property Tax Revenue
- Number
- H.B. 5003 First Substitute (2020S5)
- Sponsor
- Rep. Snow, V. L.
- Final action
- Governor Signed 6/25/2020
- Outcome
- Became law — signed by Gov. Gary R. Herbert
Summary
This bill allows increased flexibility in a local school board's use of revenue from the capital local levy.
What it does
- This bill:
- allows increased flexibility in a local school board's use of revenue from the capital local levy;
- imposes notice, hearing, and approval requirements on the expanded use of capital local levy revenue; and
- makes technical changes.
Every vote on this bill
6/18/2020House/ substituted from # 0 to # 1
House 3rd Reading Calendar for House bills
Voice votenot eligible / no record6/18/2020House/ passed 3rd reading
Senate Secretary
75 0 0YEA6/18/2020Senate/ passed 2nd & 3rd readings/ suspension
Senate President
26 0 3not eligible / no recordBill text
enrolled version · official source
SCHOOL DISTRICT USE OF PROPERTY TAX REVENUE FIFTH SPECIAL SESSION STATE OF UTAH Chief Sponsor: V. Lowry Snow Senate Sponsor: Deidre M. Henderson LONG TITLE General Description: This bill allows increased flexibility in a local school board's use of revenue from the capital local levy. Highlighted Provisions: This bill: ▸ allows increased flexibility in a local school board's use of revenue from the capital local levy; ▸ imposes notice, hearing, and approval requirements on the expanded use of capital local levy revenue; and ▸ makes technical changes. Money Appropriated in this Bill: None Other Special Clauses: This bill provides a special effective date. Utah Code Sections Affected: AMENDS: 53F-8-303 (Contingently Superseded 01/01/21) , as last amended by Laws of Utah 2018, Chapters 281, 288, 456 and renumbered and amended by Laws of Utah 2018, Chapter 2 53F-8-303 (Contingently Effective 01/01/21) , as last amended by Laws of Utah 2020, Chapter 207 Be it enacted by the Legislature of the state of Utah: Section 1. Section 53F-8-303 (Contingently Superseded 01/01/21) is amended to read: 53F-8-303 (Contingently Superseded 01/01/21). Capital local levy. (1) Subject to the other requirements of this section, a local school board may levy a tax to fund the school district's: (a) capital projects; or (b) technology programs or projects. (2) A tax rate imposed by a school district pursuant to this section may not exceed .0030 per dollar of taxable value in any calendar year. (3) (a) For the fiscal years beginning on July 1, 2020, and July 1, 2021, a local school board may transfer revenue derived from a levy under this section from the school district's capital project fund to the school district's general fund for the local school board's school district for operational expenses. (b) If a local school board transfers revenue for operational expenses under Subsection (3)(a), the local school board shall, in a public meeting: (i) notify the public of the local school board's transfer of the funds for operational expenses, including describing how the local school board proposes to use the funds; (ii) for the fiscal year beginning July 1, 2021, allow an opportunity for public comment during the board's budget hearing in accordance with the notice and hearing requirements described in Section 53G-7-303 ; and (iii) approve the proposed use of the funds by majority vote of the local school board. Section 2. Section 53F-8-303 (Contingently Effective 01/01/21) is amended to read: 53F-8-303 (Contingently Effective 01/01/21). Capital local levy. (1) As used in this section: (a) "Cost of the basic program" means the cost of the programs described in Title 53F, Chapter 2, Part 3, Basic Program (Weighted Pupil Units) in a school district. (b) "Low-revenue year" means a fiscal year for which the Legislature appropriates ongoing funding from the Public Education Economic Stabilization Restricted Account under Subsection 53F-9-204 (3)(b). (2) Subject to the other requirements of this section, a local school board may levy a tax to fund the school district's: (a) capital projects; (b) technology programs or projects; or (c) subject to Subsection (4), operational expenses for a low-revenue year. (3) A tax rate imposed by a school district pursuant to this section may not exceed .0030 per dollar of taxable value in any calendar year. (4) [ For ] Except as provided in Subsection (6), for a low-revenue year, a local school board may transfer an amount of revenue from the school district's capital project fund to the school district's general fund for the local school board's school district for operational expenses in an amount equal to: (a) for a local school board in a county of the first, second, or third class, revenue generated by up to .0002 per dollar of taxable value of the capital local levy; or (b) for a local school board in a county of the fourth, fifth, or sixth class, up to the lesser of: (i) 10% of the cost of the basic program; or (ii) 25% of the revenue that the school district's capital local levy generates. (5) The state board shall notify local school boards, school district superintendents, and business administrators in the event of a low-revenue year. (6) (a) For the fiscal years beginning on July 1, 2020, and July 1, 2021, a local school board may transfer revenue derived from a levy under this section from the school district's capital project fund to the school district's general fund for the local school board's school district for operational expenses. (b) If a local school board transfers revenue for operational expenses under Subsection (6)(a), the local school board shall, in a public meeting: (i) notify the public of the local school board's transfer of the funds for operational expenses, including describing how the local school board proposes to use the funds; (ii) for the fiscal year beginning July 1, 2021, allow an opportunity for public comment during the board's budget hearing in accordance with the notice and hearing requirements described in Section 53G-7-303 ; and (iii) approve the proposed use of the funds by majority vote of the local school board. Section 3. Effective date. If approved by two-thirds of all the members elected to each house, this bill takes effect upon approval by the governor, or the day following the constitutional time limit of Utah Constitution, Article VII, Section 8, without the governor's signature, or in the case of a veto, the date of veto override.