Administrative Rules Review Committee

benefit to state employees.
    
    Sen Stephenson added concerns about the use of the state seal. He then requested staff to research: (1) the regulatory authority of the Department of Human Resource Management to grant businesses exclusive access to the state employee mailing list for solicitation; (2) whether the state is paid for providing that access; and (3) the permitted uses of the state seal.

    Sen Stephenson asked Ms. Thorne for an update on the payroll deductions rule. Ms. Thorne indicated that there was a proposed rule filed in 1997, but that due to significant concerns expressed at a public hearing, the rule was allowed to lapse. No further rulemaking has been done. Sen. Stephenson expressed concern with how long the issue has gone unresolved.

    Rep. Stephens asked whether the state charges a fee to businesses who arrange to have state employee payroll deductions made on their behalf. Ms. Thorne said the state does not. At Rep. Stephenson's request, Ms. Thorne agreed to research how much it costs the state to provide payroll deductions. The information would be sent to staff, then relayed to the committee.
    
3.    R277-458 70% Utilization of School Buildings (Sen. Stephenson) - Chair Stephenson asked how the class size specifications in the rule impact other education programs, particularly school choice, which allows for student transfers outside the district. Mr. Doug Bates, State Office of Education, distributed a handout and explained the rule. He then discussed the demographic and political factors which led to the 70% utilization law. He indicated that, though there is a statutory mandate to maintain the utilization level, there is no penalty for noncompliance. Notice of noncompliance is sent, together with a request that a compliance plan be developed. He discussed the class size targets, which were taken from a strategic plan the legislature passed as a resolution. Committee discussion and public comment followed.

    Rep. Stephens said that, when combined with the 70% utilization requirements, the class size targets create a situation in which a kindergarten class could have seven students and be considered utilized to capacity, which is unrealistic and questions the usefulness of the 70% law.

    Ms. Darline Robles, Superintendent, Salt Lake City School District, said the district struggles with 70% capacity. The district supports the amended 70% rule as a target to work toward.

     Mr. Bates said that the statute now gives the State Board authority to define capacity. The original capacity definition was based on square footage. He discussed the marginal costs of bringing in a child from another district and clarified that when a district receives a child from another district, it receives the full state funding plus one-half of the local funding.
        
    Mr. Bates discussed R277-437, Student Enrollment Options. He said if a district sets its

priority to reduce class sizes as much as possible the district is forced, as a result of putting its local funds into reducing class sizes, to accept students from areas where class sizes are higher. This frustrates a district's ability to reduce class sizes to the level that the local board has felt appropriate. If statewide equilibrium is the goal, then statewide funding should be considered.

    Sen. Peterson said if a school district that chooses to focus their financial resources on achieving smaller class sizes receives a student and all funding associated with that student, meaning no retained earnings, the district can maintain its focus. But where there is little or no incentive for the receiving district or school due to partial funding, the district is justified in not wanting to receive transfer students.

    Ms. Carole Lear, State Board of Education, clarified that: (1) The numbers in the school choice rule are the same as when the law was originally passed; and (2) if a school declares itself closed based on those numbers, it can still accept students based on their own criteria.

    Chair Stephenson requested that the agency report in a future meeting additional data on the 70% utilization rule compliance and the student enrollment option so the committee can understand, which schools are required to allow enrollment options based on the rule's standard. He asked staff to research the statutory authority to determine class sizes.

4.    Committee Member Rule Assignments - Chair Stephenson used a rule from the August 15 bulletin to demonstrate ways committee members can streamline their rule review. Rep. Ure referred to R512-25 (p. 26 in the same bulletin), a Division of Child and Family Services rule which defines "substantiation" differently than the courts.

     MOTION:    Rep. Ure moved to place R512-25 on the list of rules to be included in the committee's annual sunset legislation pending further interaction and information from the agency, and to invite the agency to discuss the rule in the next committee meeting. The motion passed unanimously. Rep. Stephens was absent for the vote.

    A draft letter referring matters related to R512-25 to the Child Welfare Legislative Oversight Panel, as discussed in a previous meeting, was distributed. No action was taken on the letter.
        
5.    Committee Business

     Future Meeting Dates:
    September 8, 9:00 a.m., and September 29, 9:00 a.m., Room 305

6.    Adjourn - Rep. Swallow moved to adjourn the meeting at 11:15 a.m.. The motion passed unanimously. Rep. Stephens was absent for the vote.

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