First Substitute S.B. 2

This document includes Senate 2nd Reading Floor Amendments incorporated into the bill on Tue, Mar 4, 2008 at 5:39 PM by rday. --> This document includes House Floor Amendments incorporated into the bill on Wed, Mar 5, 2008 at 2:13 PM by jeyring. --> PLEASE NOTE:
THIS DOCUMENT INCLUDES BOTH THE BILL AND ALSO A TRANSMITTAL LETTER THAT CONTAINS PASSED AMENDMENTS BUT NOT INCORPORATED INTO THE BILL.

March 4, 2008

Mr. Speaker:

The Senate passed, as substituted, and amended 1st Sub. S.B. 2, MINIMUM SCHOOL PROGRAM BUDGET AMENDMENTS, by Senator H. Stephenson, with the following amendments:
1. Page : 2, Lines 34 through 35

34 enhance the academic growth of high-ability students; -

Text Box

{ and Text Box
}

35 . the English Language Learner Family Literacy Centers Program; - Text Box

and

. career and technical education online assessment; Text Box

2. Page 21, Line 631 :

631 (mm) USTAR Centers, - Text Box

{ $6,900,000 Text Box
} H. [ $6,500,000] $6,900,000 .H Text Box
;

3. Page 37, Lines 1112 through 1115 :

1112 as provided in Section 53A-1a-501.6; Text Box

{ and Text Box
}

1113 (d) $4,700,000 from the Uniform School Fund Teacher Salary Supplement Restricted
1114 Account for the Teacher Salary Supplement Program in accordance with the provisions under
1115 Sections 53A-17a-156 and 53A-17a-157- Text Box

{ . Text Box
} - Text Box
; and

(e) $400,000 to the State Board of Education for career and technical education online assessment. Text Box

and it is transmitted for consideration.

Respectfully,

Annette B. Moore
Secretary of the Senate

4 sb0002s01.wpd 5:28 pm DSL/rday

Text Box

House Floor Amendments 3-5-2008 je/dsl Senator Howard A. Stephenson proposes the following substitute bill:

1 MINIMUM SCHOOL PROGRAM BUDGET
2 AMENDMENTS
3 2008 GENERAL SESSION
4 STATE OF UTAH
5 Chief Sponsor: Howard A. Stephenson
6 House Sponsor: Bradley G. Last
7
8 LONG TITLE
9 General Description:
10 This bill provides funding for the Minimum School Program and other education
11 programs.
12 Highlighted Provisions:
13 This bill:
14 . establishes the value of the weighted pupil unit at $2,577;
15 . establishes a ceiling for the state contribution to the maintenance and operations
16 portion of the Minimum School Program for fiscal year 2008-09 of H. [ $2,495,183,979 ]
16a [ $2,496,542,506 ] $2,496,142,369 .H ;
17 . modifies provisions related to the funding of charter schools;
18 . authorizes the use of appropriations for accelerated learning programs for
19 International Baccalaureate programs;
20 . modifies the positions that qualify for educator salary adjustments and increases the
21 salary adjustments for those positions;
22 . establishes and funds the following ongoing programs:
23 . a pilot project using a home-based educational technology program to develop
24 school readiness skills of preschool children;
25 . a financial and economic literacy passport to track student mastery of certain

Text Box
- 2 -

House Floor Amendments 3-5-2008 je/dsl 26

concepts;
27 . the Teacher Salary Supplement Program to provide a salary supplement to an
28 eligible teacher;
29 . stipends for special educators for additional days of work;
30 . an optional grant program to provide an extended year for math and science
31 teachers through the creation of Utah Science Technology and Research
32 Centers;
33 . the High-ability Student Initiative Program to provide resources for educators to
34 enhance the academic growth of high-ability students; and
35 . the English Language Learner Family Literacy Centers Program;
36 . makes one-time appropriations for fiscal year 2008-09 for:
37 . pupil transportation to and from school;
38 . the Beverley Taylor Sorenson Elementary Arts Learning Program to provide
39 grants to integrate arts teaching and learning into selected schools; and
40 . classroom supplies;
41 . provides a repeal date for certain pilot programs;
42 . makes nonlapsing appropriations; and
43 . makes technical corrections.
44 Monies Appropriated in this Bill:
45 This bill appropriates:
46 . the following Minimum School Program Monies:
47 . H. [ $2,436,864,479 ] $2,438,223,006 .H from the Uniform School Fund for fiscal
47a year 2008-09;
48 . $26,499,500 from the Uniform School Fund Restricted - Interest and Dividends
49 Account for fiscal year 2008-09;
50 . $31,820,000 from the Uniform School Fund for fiscal year 2008-09 only; and
51 . $280,000 from the Uniform School Fund for fiscal year 2007-08 only; and
52 . the following other education program monies:
53 . $3,469,580 from the Uniform School Fund for fiscal year 2008-09;
54 . $150,000 from the Uniform School Fund for fiscal year 2008-09 only;
55 . $1,000,000 from the Uniform School Fund for fiscal year 2007-08 only;
56 . $250,000 from the General Fund for fiscal year 2008-09; and

Text Box
- 3 - 57 . $50,000 from the General Fund for fiscal year 2007-08 only.
58 Other Special Clauses:
59 This bill provides an effective date.
60 This bill coordinates with H.B. 1 by providing superseding and substantive
61 amendments.
62 Utah Code Sections Affected:
63 AMENDS:
64 53A-1a-501.6, as last amended by Laws of Utah 2007, Chapter 344
65 53A-1a-502.5, as last amended by Laws of Utah 2007, Chapter 344
66 53A-1a-513, as last amended by Laws of Utah 2005, Chapters 9 and 291
67 53A-17a-103, as last amended by Laws of Utah 2007, Chapters 107 and 372
68 53A-17a-104, as last amended by Laws of Utah 2007, Chapters 2, 344, 368, and 372
69 53A-17a-108, as last amended by Laws of Utah 2007, Chapter 344
70 53A-17a-120, as last amended by Laws of Utah 2007, Chapter 368
71 53A-17a-126, as last amended by Laws of Utah 2003, Chapters 221 and 320
72 53A-17a-127, as last amended by Laws of Utah 2001, Chapter 73
73 53A-17a-153, as enacted by Laws of Utah 2007, Chapter 380
74 63-55b-153, as last amended by Laws of Utah 2007, Chapter 216
75 ENACTS:
76 53A-1a-1001, Utah Code Annotated 1953
77 53A-1a-1002, Utah Code Annotated 1953
78 53A-1a-1003, Utah Code Annotated 1953
79 53A-1a-1004, Utah Code Annotated 1953
80 53A-1a-1005, Utah Code Annotated 1953
81 53A-1a-1006, Utah Code Annotated 1953
82 53A-1a-1007, Utah Code Annotated 1953
83 53A-13-110, Utah Code Annotated 1953
84 53A-17a-156, Utah Code Annotated 1953
85 53A-17a-157, Utah Code Annotated 1953
86 53A-17a-158, Utah Code Annotated 1953
87 53A-17a-159, Utah Code Annotated 1953

Text Box
- 4 - 88 53A-17a-160, Utah Code Annotated 1953
89 53A-17a-161, Utah Code Annotated 1953
90 53A-17a-162, Utah Code Annotated 1953
91
92 Be it enacted by the Legislature of the state of Utah:
93 Section 1. Section 53A-1a-501.6 is amended to read:
94 53A-1a-501.6. Power and duties of State Charter School Board.
95 (1) The State Charter School Board shall:
96 (a) authorize and promote the establishment of charter schools, subject to the
97 provisions in this part;
98 (b) annually review and evaluate the performance of charter schools authorized by the
99 State Charter School Board and hold the schools accountable for their performance;
100 (c) monitor charter schools authorized by the State Charter School Board for
101 compliance with federal and state laws, rules, and regulations;
102 (d) provide technical support to charter schools and persons seeking to establish charter
103 schools by:
104 (i) identifying and promoting successful charter school models;
105 (ii) facilitating the application and approval process for charter school authorization;
106 (iii) directing charter schools and persons seeking to establish charter schools to
107 sources of private funding and support;
108 (iv) reviewing and evaluating proposals to establish charter schools for the purpose of
109 supporting and strengthening proposals before an application for charter school authorization is
110 submitted to the State Charter School Board or a local school board; and
111 (v) assisting charter schools to understand and carry out their charter obligations;
112 (e) provide technical support, as requested, to a local school board relating to charter
113 schools;
114 (f) make recommendations on legislation and rules pertaining to charter schools to the
115 Legislature and State Board of Education, respectively; and
116 (g) make recommendations to the State Board of Education on the funding of charter
117 schools.
118 (2) The State Charter School Board may:

Text Box
- 5 - 119 (a) contract;
120 (b) sue and be sued; and
121 (c) (i) at the discretion of the charter school, provide administrative services to, or
122 perform other school functions for, charter schools authorized by the State Charter School
123 Board; and
124 (ii) charge fees for the provision of services or functions.
125 (3) (a) The State Charter School Board shall provide support services to charter schools
126 from monies appropriated under Subsection (3)(b).
127 (b) Subject to future budget constraints, the Legislature shall annually appropriate
128 money to the State Charter School Board for support services to charter schools in the amount
129 of $30 times the number of students enrolled in charter schools on October 1.
130 Section 2. Section 53A-1a-502.5 is amended to read:
131 53A-1a-502.5. Charter schools -- Maximum authorized students.
132 (1) The State Charter School Board and local school boards may only authorize a
133 combined maximum student capacity of:
134 [(a) 27,921 students for the charter schools in the 2007-08 school year; and]
135 [(b)] (a) 32,921 students for the charter schools in the 2008-09 school year[.]; and
136 (b) an annual increase of 7,500 students for the charter schools beginning in the
137 2009-10 school year.
138 (2) (a) The State Board of Education, in consultation with the State Charter School
139 Board, shall allocate the students under Subsection (1) between the State Charter School Board
140 and local school boards.
141 (b) 2,500 of the student capacity described under Subsection (1)(b) shall be allocated to
142 increase the maximum student capacity of operating charter schools.
143 (c) If the operating charter schools do not use the allocation described under
144 Subsection (2)(b), the remaining student capacity may be used by new charter schools.
145 Section 3. Section 53A-1a-513 is amended to read:
146 53A-1a-513. Funding for charter schools.
147 (1) As used in this section:
148 (a) "Charter school students' average local revenues" means the amount determined as
149 follows:

Text Box
- 6 -

House Floor Amendments 3-5-2008 je/dsl 150

(i) for each student enrolled in a charter school on the previous October 1, calculate the
151 district per pupil local revenues of the school district in which the student resides;
152 (ii) sum the district per pupil local revenues for each student enrolled in a charter
153 school on the previous October 1; and
154 (iii) divide the sum calculated under Subsection (1)(a)(ii) by the number of students
155 enrolled in charter schools on the previous October 1.
156 (b) "District per pupil local revenues" means the amount determined as follows, using
157 data from the most recently published school district annual financial reports and state
158 superintendent's annual report:
159 (i) calculate the sum of a school district's revenue received from:
160 (A) a voted levy imposed under Section 53A-17a-133 ;
161 (B) a board levy imposed under Section 53A-17a-134 ;
162 (C) 10% of the cost of the basic program levy imposed under Section 53A-17a-145 ;
163 (D) a tort liability levy imposed under Section 63-30d-704 ;
164 (E) a capital outlay levy imposed under Section 53A-16-107 ; H. and .H
165 (F) a voted capital outlay levy imposed under Section 53A-16-110 ;
166 H. [ (G) state support for a voted levy program provided under Section 53A-17a-133 ;
167 (H) state support for a board levy program provided under Section 53A-17a-134 ; and
168 (I) state ongoing appropriations to the Capital Outlay Foundation and Enrollment
169 Growth Programs created in Section 53A-21-102 ; ] .H and
170 (ii) divide the sum calculated under Subsection (1)(b)(i) by the sum of:
171 (A) a school district's average daily membership; and
172 (B) the average daily membership of a school district's resident students who attend
173 charter schools.
174 (c) "Resident student" means a student who is considered a resident of the school
175 district under Title 53A,Chapter 2, District of Residency.
176 (d) "Statewide average debt service revenues" means the amount determined as
177 follows, using data from the most recently published state superintendent's annual report:
178 (i) sum the revenues of each school district from the debt service levy imposed under
179 Section 11-14-310 ; and
180 (ii) divide the sum calculated under Subsection (1)(d)(i) by statewide school district

Text Box
- 7 - 181 average daily membership.
182 [(1)] (2) (a) Charter schools shall receive funding as described in this section, except
183 Subsections [(2)] (3) through [(7)] (8) do not apply to charter schools described in Subsection
184 [(1)] (2)(b).
185 (b) Charter schools authorized by local school boards that are converted from district
186 schools or operate in district facilities without paying reasonable rent shall receive funding as
187 prescribed in Section 53A-1a-515 .
188 [(2)] (3) (a) Except as provided in Subsection [(2)] (3)(b), a charter school shall receive
189 state funds, as applicable, on the same basis as a school district receives funds.
190 (b) In distributing funds under Title 53A, Chapter 17a, Minimum School Program Act,
191 to charter schools, charter school pupils shall be weighted, where applicable, as follows:
192 (i) .55 for kindergarten pupils;
193 (ii) .9 for pupils in grades 1-6;
194 (iii) .99 for pupils in grades 7-8; and
195 (iv) 1.2 for pupils in grades 9-12.
196 [(c) The State Board of Education shall make rules in accordance with Title 63,
197 Chapter 46a, Utah Administrative Rulemaking Act, to administer Subsection (2)(b), including
198 hold harmless provisions to maintain a charter elementary school's funding level for a period of
199 two years after the effective date of the distribution formula.]
200 [(d) Subsection (2)(b) does not apply to funds appropriated to charter schools to
201 replace local property tax revenues.]
202 [(3) The State Board of Education shall adopt rules to provide for the distribution of
203 monies to charter schools under this section.]
204 [(4) (a) The Legislature shall provide an appropriation for charter schools for each of
205 their students to replace some of the local property tax revenues that are not available to charter
206 schools. The amount of money provided for each charter school student shall be determined
207 by:]
208 [(i) calculating the sum of:]
209 [(A) school districts' operations and maintenance revenues derived from local property
210 taxes, except revenues from imposing a minimum basic tax rate pursuant to Section
211 53A-17a-135 ;]

Text Box
- 8 -

House Floor Amendments 3-5-2008 je/dsl 212

[(B) school districts' capital projects revenues derived from local property taxes; and]
213 [(C) school districts' expenditures for interest on debt; and]
214 [(ii) dividing the sum by the total average daily membership of the districts' schools.]
215 (4) (a) (i) Except as provided in H. [ Subsections ] Subsection .H (4)(a)(ii)
215a H. [ and (iii) ] .H , a school district shall
216 allocate a portion of school district revenues for each resident student of the school district who
217 is enrolled in a charter school on October 1 as follows:
218 (A) H. [ in fiscal year 2008-09, ] .H the allocation shall equal 25% of the lesser of:
219 (I) district per pupil local revenues; or
220 (II) charter school students' average local revenues;
221 H. [ (B) in fiscal year 2009-10, the allocation shall equal 50% of the lesser of:
222 (I) district per pupil local revenues; or
223 (II) charter school students' average local revenues;
224 (C) in fiscal year 2010-11, the allocation shall equal 75% of the lesser of:
225 (I) district per pupil local revenues; or
226 (II) charter school students' average local revenues; and
227 (D) beginning in fiscal year 2011-12, the allocation shall equal 100% of the lesser of:
228 (I) district per pupil local revenues; or
229 (II) charter school students' average local revenues. ] .H
230 (ii) For the purpose of allocating school district revenues under Subsection (4)(a)(i), a
231 kindergarten student who is enrolled in less than a full-day kindergarten program is weighted as
232 .55 of a student.
233 H. [ (iii) (A) As used in this section, "virtual charter school" means a performance-based
234 charter school that delivers synchronous or asynchronous instruction from a teacher to a
235 student primarily through the use of technology via the Internet in a virtual or remote setting.
236 (B) A school district's allocation of revenues under this Subsection (4)(a) for a student
237 enrolled in a virtual charter school may not exceed $500.
238 (iv) ] (iii) .H Nothing in this Subsection (4)(a) affects the school bond guarantee program
239 established under Chapter 28, Utah School Bond Guaranty Act.
240 (b) The State Board of Education shall:
241 (i) deduct an amount equal to the allocation provided under Subsection (4)(a) from
242 state funds the school district is authorized to receive under Title 53A, Chapter 17a, Minimum

Text Box
- 9 -

House Floor Amendments 3-5-2008 je/dsl 243

School Program Act; and
244 (ii) remit the money to the student's charter school.
245 (c) Notwithstanding the method used to transfer school district revenues to charter
246 schools as provided in Subsection (4)(b), a school district may deduct the allocations to charter
247 schools under this section from:
248 (i) unrestricted revenues available to the school district; or
249 (ii) the revenue sources listed in Subsections (1)(b)(i)(A) through H. [ (I) ] (F) .H based
249a on the
250 portion of the allocations to charter schools attributed to each of the revenue sources listed in
251 Subsections (1)(b)(i)(A) through H. [ (I) ] (F) .H .
252 (d) (i) Subject to future budget constraints, the Legislature shall provide an
253 appropriation for charter schools for each student enrolled on October 1 to supplement the
254 allocation of school district revenues under Subsection (4)(a).
255 (ii) Except as provided in Subsections (4)(d)(iii) and (iv), the amount of money
256 provided by the state for a charter school student shall be the sum of:
257 (A) charter school students' average local revenues minus the allocation of school
258 district revenues under Subsection (4)(a); and
259 (B) statewide average debt service revenues.
260 (iii) If the total of a school district's allocation for a charter school student under
261 Subsection (4)(a) and the amount provided by the state under Subsection (4)(d)(ii) is less than
262 $1427, the state shall provide an additional supplement so that a charter school receives at least
263 $1427 per student under this Subsection (4).
264 (iv) For the purpose of providing state monies for charter school students under this
265 Subsection (4)(d), a kindergarten student who is enrolled in less than a full-day kindergarten
266 program is weighted as .55 of a student.
267 H. [ (v) (A) Subsections (4)(d)(ii) through (iv) do not apply to virtual charter schools.
268 (B) If the total of a school district's allocation for a virtual charter school student under
269 Subsection (4)(a) is less than $500, the state shall provide an additional supplement so that a
270 virtual charter school receives at least $500 per student under this Subsection (4). ] .H
271 [(b)] (e) Of the monies provided to a charter school under this Subsection (4)[(a)], 10%
272 shall be expended for funding school facilities only.
273 [(c) To qualify for money under Subsection (4)(a), a new charter school shall, by

Text Box
- 10 - 274 September 30 of the school year prior to the school year it intends to begin operations:]
275 [(i) obtain approval of its application for a charter from:]
276 [(A) the State Board of Education, pursuant to Section 53A-1a-505 ; or]
277 [(B) a local school board, pursuant to Section 53A-1a-515 ; and]
278 [(ii) submit to the chartering entity an estimate of the charter school's first year
279 enrollment.]
280 [(d) Subsection (4)(c) does not apply to charter schools beginning operations in the
281 2005-06 school year.]
282 [(e) By December 1, the State Charter School Board shall submit to the Governor's
283 Office of Planning and Budget and the Office of the Legislative Fiscal Analyst an estimate of
284 total charter school enrollment in the state for the following school year.]
285 (5) Charter schools are eligible to receive federal funds if they meet all applicable
286 federal requirements and comply with relevant federal regulations.
287 (6) The State Board of Education shall distribute funds for charter school students
288 directly to the charter school.
289 (7) (a) Notwithstanding Subsection [(2)] (3), a charter school is not eligible to receive
290 state transportation funding.
291 (b) The board shall also adopt rules relating to the transportation of students to and
292 from charter schools, taking into account Sections 53A-2-210 and 53A-17a-127 .
293 (c) The governing body of the charter school may provide transportation through an
294 agreement or contract with the local school board, a private provider, or with parents.
295 (8) (a) (i) The state superintendent of public instruction may allocate grants for both
296 start-up and ongoing costs to eligible charter school applicants from monies appropriated for
297 the implementation of this part.
298 (ii) Applications for the grants shall be filed on a form determined by the state
299 superintendent and in conjunction with the application for a charter.
300 (iii) The amount of a grant may vary based upon the size, scope, and special
301 circumstances of the charter school.
302 (iv) The governing board of the charter school shall use the grant to meet the expenses
303 of the school as established in the school's charter.
304 (b) The State Board of Education shall coordinate the distribution of federal monies

Text Box
- 11 - 305 appropriated to help fund costs for establishing and maintaining charter schools within the
306 state.
307 (9) (a) A charter school may receive, hold, manage and use any devise, bequest, grant,
308 endowment, gift, or donation of any property made to the school for any of the purposes of this
309 part.
310 (b) It is unlawful for any person affiliated with a charter school to demand or request
311 any gift, donation, or contribution from a parent, teacher, employee, or other person affiliated
312 with the charter school as a condition for employment or enrollment at the school or continued
313 attendance at the school.
314 [(10) The State Office of Education shall use up to $1,044,000 of funding provided for
315 new growth to fund additional growth needs in charter schools in fiscal year 2005.]
316 Section 4. Section 53A-1a-1001 is enacted to read:
317 Part 10. UPSTART
318 53A-1a-1001. Definitions.
319 As used in this part:
320 (1) "Contractor" means the educational technology provider selected by the State Board
321 of Education under Section 53A-1a-1002 .
322 (2) "Low income" means an income below 200% of the federal poverty guideline.
323 (3) "Preschool children" means children who are:
324 (a) age four or five; and
325 (b) have not entered kindergarten.
326 (4) "UPSTART" means the pilot project established by Section 53A-1a-1002 that uses
327 a home-based educational technology program to develop school readiness skills of preschool
328 children.
329 Section 5. Section 53A-1a-1002 is enacted to read:
330 53A-1a-1002. Pilot project to develop school readiness skills of preschool children.
331 (1) UPSTART, a pilot project that uses a home-based educational technology program
332 to develop school readiness skills of preschool children, is established within the public
333 education system.
334 (2) UPSTART is created to:
335 (a) evaluate the effectiveness of giving preschool children access, at home, to

Text Box
- 12 - 336 interactive individualized instruction delivered by computers and the Internet to prepare them
337 academically for success in school; and
338