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H.B. 446 Enrolled
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SURPLUS LANDS AMENDMENTS
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2006 GENERAL SESSION
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STATE OF UTAH
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Chief Sponsor: Mark W. Walker
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Senate Sponsor:
Carlene M. Walker
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LONG TITLE
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General Description:
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This bill enacts provisions relating to the sale and purchase of school district surplus
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lands.
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Highlighted Provisions:
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This bill:
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. enacts provisions allowing certain counties and municipalities to purchase lands
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declared to be surplus by a school district;
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. establishes a process for the purchase of those surplus lands;
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. requires that surplus lands purchased as provided in this bill shall be used only for
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certain purposes;
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. requires school districts that sell surplus property under this bill to place the sale
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proceeds in a capital facilities fund to be used only for capital facilities or bond debt
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reduction; and
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. authorizes the original seller of surplus land to reacquire the land if the acquiring
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entity later declares the land to be surplus property.
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Monies Appropriated in this Bill:
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None
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Other Special Clauses:
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None
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Utah Code Sections Affected:
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ENACTS:
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53A-2-401, Utah Code Annotated 1953
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53A-2-402, Utah Code Annotated 1953
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53A-2-403, Utah Code Annotated 1953
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53A-2-404, Utah Code Annotated 1953
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Be it enacted by the Legislature of the state of Utah:
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Section 1.
Section
53A-2-401
is enacted to read:
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Part 4. School District Surplus Lands Act
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53A-2-401. Title.
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This part is known as the "School District Surplus Lands Act."
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Section 2.
Section
53A-2-402
is enacted to read:
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53A-2-402. Definitions.
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As used in this part:
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(1) "Eligible entity" means:
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(a) a city or town with a population density of 3,000 or more people per square mile; or
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(b) a county whose unincorporated area includes a qualifying township.
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(2) "Purchase price" means the greater of:
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(a) an amount that is the average of:
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(i) the appraised value of the surplus property, based on the predominant zone in the
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surrounding area, as indicated in an appraisal obtained by the eligible entity; and
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(ii) the appraised value of the surplus property, based on the predominant zone in the
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surrounding area, as indicated in an appraisal obtained by the school district; and
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(b) the amount the school district paid to acquire the surplus property.
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(3) "Qualifying township" means a township under Section
17-27a-306
that has a
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population density of 3,000 or more people per square mile within the boundaries of the
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township.
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(4) "Surplus property" means land owned by a school district that:
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(a) was purchased with taxpayer money;
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(b) is located within a city or town that is an eligible entity or within a qualifying
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township;
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(c) consists of one contiguous tract at least three acres in size; and
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(d) has been declared by the school district to be surplus.
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Section 3.
Section
53A-2-403
is enacted to read:
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53A-2-403. Purchase of surplus property.
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(1) An eligible entity may purchase, and each school district shall sell, surplus property
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as provided in this section.
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(2) (a) Upon declaring land to be surplus property, each school district shall give
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written notice to each eligible entity in which the surplus property is located.
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(b) Each notice under Subsection (2)(a) shall:
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(i) state that the school district has declared the land to be surplus property; and
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(ii) describe the surplus property.
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(3) Subject to Subsection (4), an eligible entity may purchase the surplus property by
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paying the school district the purchase price.
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(4) (a) The legislative body of each eligible entity desiring to purchase surplus property
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under this section shall:
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(i) within 90 days after the eligible entity receives notice under Subsection (2), adopt a
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resolution declaring the intent to purchase the surplus property and deliver a copy of the
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resolution to the school district; and
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(ii) within 90 days after delivering a copy of the resolution under Subsection (4)(a)(i)
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to the school district, deliver to the school district an earnest money offer to purchase the
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surplus property at the purchase price.
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(b) If an eligible entity fails to comply with either of the requirements under Subsection
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(4)(a) within the applicable time period, the eligible entity forfeits the right to purchase the
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surplus property.
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(5) (a) An eligible entity may waive its right to purchase surplus property under this
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part by submitting a written waiver to the school district.
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(b) If an eligible entity submits a waiver under Subsection (5)(a), the school district has
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no further obligation under this part to sell the surplus property to the eligible entity.
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(6) Surplus property acquired by an eligible entity may not be used for any purpose
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other than:
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(a) a county, city, or town hall;
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(b) a park or other open space; or
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(c) a cultural center or community center.
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(7) (a) A school district that sells surplus property under this part may use proceeds
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from the sale only for bond debt reduction or school district capital facilities.
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(b) Each school district that sells surplus property under this part shall place all
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proceeds from the sale that are not used for bond debt reduction in a capital facilities fund of
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the school district for use for school district capital facilities.
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Section 4.
Section
53A-2-404
is enacted to read:
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53A-2-404. Resale of surplus property.
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(1) If an eligible entity that has acquired surplus property under Section
53A-2-403
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afterwards declares that property to be surplus, the school district from which the eligible entity
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acquired the property may purchase, and the eligible entity shall sell, the property as provided
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in Section
53A-2-403
, except that the price at which the school district shall be entitled to
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reacquire the property shall be the price that the eligible entity paid for the property, plus the
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cost of any existing improvements that the eligible entity made to the property after it
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purchased the property.
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(2) If the school district does not reacquire the surplus property under Subsection (1)
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and the eligible entity sells the surplus property to another buyer, the eligible entity and the
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school district shall equally share any proceeds of that sale that exceed the amount the eligible
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entity paid for the property plus the cost of any existing improvements the eligible entity made
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to the property after it purchased the property.
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