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H.B. 301 Enrolled

             1     

SCHOOL DISTRICT PROPERTY TAX REVISIONS

             2     
2011 GENERAL SESSION

             3     
STATE OF UTAH

             4     
Chief Sponsor: Merlynn T. Newbold

             5     
Senate Sponsor: Curtis S. Bramble

             6     
             7      LONG TITLE
             8      General Description:
             9          This bill modifies the authority of a school district to impose certain property tax levies.
             10      Highlighted Provisions:
             11          This bill:
             12          .    repeals the authority of a school district to impose certain property tax levies;
             13          .    authorizes a school district to impose a board local levy and a capital local levy;
             14          .    provides that in setting a board local levy or capital local levy for the calendar year
             15      beginning on January 1, 2012, a school is exempt from truth in taxation notice and
             16      hearing requirements if the school district budgets a certain amount of ad valorem
             17      property tax revenue; and
             18          .    makes technical amendments.
             19      Money Appropriated in this Bill:
             20          None
             21      Other Special Clauses:
             22          This bill provides an effective date.
             23      Utah Code Sections Affected:
             24      AMENDS:
             25          11-2-7, as last amended by Laws of Utah 1961, Chapters 25 and 30
             26          11-13-302, as last amended by Laws of Utah 2008, Chapters 236 and 382
             27          20A-1-203, as last amended by Laws of Utah 2010, Chapter 221
             28          53A-1a-106, as last amended by Laws of Utah 2003, Chapter 221
             29          53A-1a-513, as last amended by Laws of Utah 2010, Chapters 3 and 399


             30          53A-2-114, as last amended by Laws of Utah 2008, Chapter 236
             31          53A-2-115, as last amended by Laws of Utah 2008, Chapter 236
             32          53A-2-118.2, as enacted by Laws of Utah 2007, Chapter 297
             33          53A-2-118.3, as last amended by Laws of Utah 2010, Chapter 3
             34          53A-2-206, as last amended by Laws of Utah 2010, Chapter 349
             35          53A-2-214, as enacted by Laws of Utah 2008, Chapter 233
             36          53A-16-107, as last amended by Laws of Utah 2010, Chapters 3, 135, and 160
             37          53A-16-110, as last amended by Laws of Utah 2008, Chapter 236
             38          53A-17a-103, as last amended by Laws of Utah 2010, Chapter 3
             39          53A-17a-105, as repealed and reenacted by Laws of Utah 2010, Chapter 399
             40          53A-17a-127, as last amended by Laws of Utah 2010, Chapter 305
             41          53A-17a-133, as last amended by Laws of Utah 2010, Chapter 399
             42          53A-17a-134, as last amended by Laws of Utah 2010, Chapter 399
             43          53A-17a-136, as renumbered and amended by Laws of Utah 1991, Chapter 72
             44          53A-17a-143, as last amended by Laws of Utah 1995, Chapter 271
             45          53A-17a-145, as renumbered and amended by Laws of Utah 1991, Chapter 72
             46          53A-17a-146, as last amended by Laws of Utah 2010, Chapters 3 and 399
             47          53A-17a-150, as enacted by Laws of Utah 2004, Chapter 305
             48          53A-17a-151, as enacted by Laws of Utah 2004, Chapter 305
             49          53A-21-101.5, as last amended by Laws of Utah 2010, Chapter 185
             50          59-2-904, as last amended by Laws of Utah 1993, Chapter 4
             51          59-2-924, as last amended by Laws of Utah 2010, Chapter 131
             52          59-2-924.3, as last amended by Laws of Utah 2009, Chapter 204
             53          59-2-924.4, as last amended by Laws of Utah 2009, Chapter 204
             54          63G-7-704, as renumbered and amended by Laws of Utah 2008, Chapter 382
             55          63I-1-253, as last amended by Laws of Utah 2010, Chapters 79, 160, and 319
             56      ENACTS:
             57          53A-16-113, Utah Code Annotated 1953


             58          53A-17a-164, Utah Code Annotated 1953
             59      RENUMBERS AND AMENDS:
             60          53A-16-114, (Renumbered from 53A-16-107.1, as last amended by Laws of Utah 2010,
             61      Chapter 160)
             62      REPEALS:
             63          53A-16-111, as enacted by Laws of Utah 1988, Chapter 2
             64     
             65      Be it enacted by the Legislature of the state of Utah:
             66          Section 1. Section 11-2-7 is amended to read:
             67           11-2-7. Expenses -- Payment of -- Authority to appropriate and tax -- Licensing
             68      of television owners and users -- Collection of license fees.
             69          (1) (a) All expenses incurred in the equipment, operation and maintenance of such
             70      recreational facilities and activities shall be paid from the treasuries of the respective cities,
             71      towns, counties, or school districts[, and].
             72          (b) Except as provided in Subsection (3), the governing bodies of the same may
             73      annually appropriate, and cause to be raised by taxation, money for such purposes.
             74          (2) In areas so remote from regular transmission points of the large television stations
             75      that television reception is impossible without special equipment and adequate, economical and
             76      proper television is not available to the public by private sources, said local authorities may
             77      also, by ordinance, license, for the purpose of raising revenue to equip, operate and maintain
             78      television transmission and relay facilities, all users or owners of television sets within the
             79      jurisdiction of said local authorities, and may provide for the collection of the license fees by
             80      suit or otherwise and may also enforce obedience to such ordinances with such fine and
             81      imprisonment as the local authorities [deem] consider proper; provided that the punishment for
             82      any violation of such ordinances shall be by a fine not exceeding [$50.00] $50 or by
             83      imprisonment not exceeding one day for each [$5.00] $5 of said fine, if the fine is not paid.
             84          (3) Beginning January 1, 2012, a local school board may not levy a tax in accordance
             85      with this section.


             86          Section 2. Section 11-13-302 is amended to read:
             87           11-13-302. Payment of fee in lieu of ad valorem property tax by certain energy
             88      suppliers -- Method of calculating -- Collection -- Extent of tax lien.
             89          (1) (a) Each project entity created under this chapter that owns a project and that sells
             90      any capacity, service, or other benefit from it to an energy supplier or suppliers whose tangible
             91      property is not exempted by Utah Constitution Article XIII, Section 3, from the payment of ad
             92      valorem property tax, shall pay an annual fee in lieu of ad valorem property tax as provided in
             93      this section to each taxing jurisdiction within which the project or any part of it is located.
             94          (b) For purposes of this section, "annual fee" means the annual fee described in
             95      Subsection (1)(a) that is in lieu of ad valorem property tax.
             96          (c) The requirement to pay an annual fee shall commence:
             97          (i) with respect to each taxing jurisdiction that is a candidate receiving the benefit of
             98      impact alleviation payments under contracts or determination orders provided for in Sections
             99      11-13-305 and 11-13-306 , with the fiscal year of the candidate following the fiscal year of the
             100      candidate in which the date of commercial operation of the last generating unit, other than any
             101      generating unit providing additional project capacity, of the project occurs, or, in the case of
             102      any facilities providing additional project capacity, with the fiscal year of the candidate
             103      following the fiscal year of the candidate in which the date of commercial operation of the
             104      generating unit providing the additional project capacity occurs; and
             105          (ii) with respect to any taxing jurisdiction other than a taxing jurisdiction described in
             106      Subsection (1)(c)(i), with the fiscal year of the taxing jurisdiction in which construction of the
             107      project commences, or, in the case of facilities providing additional project capacity, with the
             108      fiscal year of the taxing jurisdiction in which construction of those facilities commences.
             109          (d) The requirement to pay an annual fee shall continue for the period of the useful life
             110      of the project or facilities.
             111          (2) (a) The annual fees due a school district shall be as provided in Subsection (2)(b)
             112      because the ad valorem property tax imposed by a school district and authorized by the
             113      Legislature [under Section 53A-17a-135 ] represents both:


             114          (i) a levy mandated by the state for the state minimum school program under Section
             115      53A-17a-135 ; and
             116          (ii) local levies for capital outlay[, maintenance, transportation,] and other purposes
             117      under Sections [ 11-2-7 , 53A-16-107 , 53A-16-110 , 53A-17a-126 , 53A-17a-127 , 53A-17a-133 ,
             118      53A-17a-134 , 53A-17a-143 , and 53A-17a-145 ] 53A-16-113 , 53A-17a-133 , and 53A-17a-164 .
             119          (b) The annual fees due a school district shall be as follows:
             120          (i) the project entity shall pay to the school district an annual fee for the state minimum
             121      school program at the rate imposed by the school district and authorized by the Legislature
             122      under Subsection 53A-17a-135 (1); and
             123          (ii) for all other local property tax levies authorized to be imposed by a school district,
             124      the project entity shall pay to the school district either:
             125          (A) an annual fee; or
             126          (B) impact alleviation payments under contracts or determination orders provided for
             127      in Sections 11-13-305 and 11-13-306 .
             128          (3) (a) An annual fee due a taxing jurisdiction for a particular year shall be calculated
             129      by multiplying the tax rate or rates of the jurisdiction for that year by the product obtained by
             130      multiplying the fee base or value determined in accordance with Subsection (4) for that year of
             131      the portion of the project located within the jurisdiction by the percentage of the project which
             132      is used to produce the capacity, service, or other benefit sold to the energy supplier or suppliers.
             133          (b) As used in this section, "tax rate," when applied in respect to a school district,
             134      includes any assessment to be made by the school district under Subsection (2) or Section
             135      63M-5-302 .
             136          (c) There is to be credited against the annual fee due a taxing jurisdiction for each year,
             137      an amount equal to the debt service, if any, payable in that year by the project entity on bonds,
             138      the proceeds of which were used to provide public facilities and services for impact alleviation
             139      in the taxing jurisdiction in accordance with Sections 11-13-305 and 11-13-306 .
             140          (d) The tax rate for the taxing jurisdiction for that year shall be computed so as to:
             141          (i) take into account the fee base or value of the percentage of the project located


             142      within the taxing jurisdiction determined in accordance with Subsection (4) used to produce the
             143      capacity, service, or other benefit sold to the supplier or suppliers; and
             144          (ii) reflect any credit to be given in that year.
             145          (4) (a) Except as otherwise provided in this section, the annual fees required by this
             146      section shall be paid, collected, and distributed to the taxing jurisdiction as if:
             147          (i) the annual fees were ad valorem property taxes; and
             148          (ii) the project were assessed at the same rate and upon the same measure of value as
             149      taxable property in the state.
             150          (b) (i) Notwithstanding Subsection (4)(a), for purposes of an annual fee required by
             151      this section, the fee base of a project may be determined in accordance with an agreement
             152      among:
             153          (A) the project entity; and
             154          (B) any county that:
             155          (I) is due an annual fee from the project entity; and
             156          (II) agrees to have the fee base of the project determined in accordance with the
             157      agreement described in this Subsection (4).
             158          (ii) The agreement described in Subsection (4)(b)(i):
             159          (A) shall specify each year for which the fee base determined by the agreement shall be
             160      used for purposes of an annual fee; and
             161          (B) may not modify any provision of this chapter except the method by which the fee
             162      base of a project is determined for purposes of an annual fee.
             163          (iii) For purposes of an annual fee imposed by a taxing jurisdiction within a county
             164      described in Subsection (4)(b)(i)(B), the fee base determined by the agreement described in
             165      Subsection (4)(b)(i) shall be used for purposes of an annual fee imposed by that taxing
             166      jurisdiction.
             167          (iv) (A) If there is not agreement as to the fee base of a portion of a project for any
             168      year, for purposes of an annual fee, the State Tax Commission shall determine the value of that
             169      portion of the project for which there is not an agreement:


             170          (I) for that year; and
             171          (II) using the same measure of value as is used for taxable property in the state.
             172          (B) The valuation required by Subsection (4)(b)(iv)(A) shall be made by the State Tax
             173      Commission in accordance with rules made by the State Tax Commission.
             174          (c) Payments of the annual fees shall be made from:
             175          (i) the proceeds of bonds issued for the project; and
             176          (ii) revenues derived by the project entity from the project.
             177          (d) (i) The contracts of the project entity with the purchasers of the capacity, service, or
             178      other benefits of the project whose tangible property is not exempted by Utah Constitution
             179      Article XIII, Section 3, from the payment of ad valorem property tax shall require each
             180      purchaser, whether or not located in the state, to pay, to the extent not otherwise provided for,
             181      its share, determined in accordance with the terms of the contract, of these fees.
             182          (ii) It is the responsibility of the project entity to enforce the obligations of the
             183      purchasers.
             184          (5) (a) The responsibility of the project entity to make payment of the annual fees is
             185      limited to the extent that there is legally available to the project entity, from bond proceeds or
             186      revenues, money to make these payments, and the obligation to make payments of the annual
             187      fees is not otherwise a general obligation or liability of the project entity.
             188          (b) No tax lien may attach upon any property or money of the project entity by virtue of
             189      any failure to pay all or any part of an annual fee.
             190          (c) The project entity or any purchaser may contest the validity of an annual fee to the
             191      same extent as if the payment was a payment of the ad valorem property tax itself.
             192          (d) The payments of an annual fee shall be reduced to the extent that any contest is
             193      successful.
             194          (6) (a) The annual fee described in Subsection (1):
             195          (i) shall be paid by a public agency that:
             196          (A) is not a project entity; and
             197          (B) owns an interest in a facility providing additional project capacity if the interest is


             198      otherwise exempt from taxation pursuant to Utah Constitution, Article XIII, Section 3; and
             199          (ii) for a public agency described in Subsection (6)(a)(i), shall be calculated in
             200      accordance with Subsection (6)(b).
             201          (b) The annual fee required under Subsection (6)(a) shall be an amount equal to the tax
             202      rate or rates of the applicable taxing jurisdiction multiplied by the product of the following:
             203          (i) the fee base or value of the facility providing additional project capacity located
             204      within the jurisdiction;
             205          (ii) the percentage of the ownership interest of the public agency in the facility; and
             206          (iii) the portion, expressed as a percentage, of the public agency's ownership interest
             207      that is attributable to the capacity, service, or other benefit from the facility that is sold by the
             208      public agency to an energy supplier or suppliers whose tangible property is not exempted by
             209      Utah Constitution, Article XIII, Section 3, from the payment of ad valorem property tax.
             210          (c) A public agency paying the annual fee pursuant to Subsection (6)(a) shall have the
             211      obligations, credits, rights, and protections set forth in Subsections (1) through (5) with respect
             212      to its ownership interest as though it were a project entity.
             213          Section 3. Section 20A-1-203 is amended to read:
             214           20A-1-203. Calling and purpose of special elections -- Two-thirds vote
             215      limitations.
             216          (1) Statewide and local special elections may be held for any purpose authorized by
             217      law.
             218          (2) (a) Statewide special elections shall be conducted using the procedure for regular
             219      general elections.
             220          (b) Except as otherwise provided in this title, local special elections shall be conducted
             221      using the procedures for regular municipal elections.
             222          (3) The governor may call a statewide special election by issuing an executive order
             223      that designates:
             224          (a) the date for the statewide special election; and
             225          (b) the purpose for the statewide special election.


             226          (4) The Legislature may call a statewide special election by passing a joint or
             227      concurrent resolution that designates:
             228          (a) the date for the statewide special election; and
             229          (b) the purpose for the statewide special election.
             230          (5) (a) The legislative body of a local political subdivision may call a local special
             231      election only for:
             232          (i) a vote on a bond or debt issue;
             233          (ii) a vote on a voted [leeway or levy program] local levy authorized by Section
             234      [ 53A-16-110 ,] 53A-17a-133 [, or 53A-17a-134 ];
             235          (iii) an initiative authorized by Chapter 7, Part 5, Local Initiatives - [Procedure]
             236      Procedures;
             237          (iv) a referendum authorized by Chapter 7, Part 6, Local Referenda - Procedures;
             238          (v) if required or authorized by federal law, a vote to determine whether or not Utah's
             239      legal boundaries should be changed;
             240          (vi) a vote authorized or required by Title 59, Chapter 12, Sales and Use Tax Act;
             241          (vii) a vote to elect members to school district boards for a new school district and a
             242      remaining school district, as defined in Section 53A-2-117 , following the creation of a new
             243      school district under Section 53A-2-118.1 ; or
             244          (viii) an election of town officers of a newly incorporated town under Subsection
             245      10-2-125 (9).
             246          (b) The legislative body of a local political subdivision may call a local special election
             247      by adopting an ordinance or resolution that designates:
             248          (i) the date for the local special election; and
             249          (ii) the purpose for the local special election.
             250          (c) A local political subdivision may not call a local special election unless the
             251      ordinance or resolution calling a local special election under Subsection (5)(b) is adopted by a
             252      two-thirds majority of all members of the legislative body, if the local special election is for:
             253          (i) a vote on a bond or debt issue as described in Subsection (5)(a)(I);


             254          (ii) a vote on a voted leeway or levy program as described in Subsection (5)(a)(ii); or
             255          (iii) a vote authorized or required for a sales tax issue as described in Subsection
             256      (5)(a)(vi).
             257          Section 4. Section 53A-1a-106 is amended to read:
             258           53A-1a-106. School district and individual school powers.
             259          (1) In order to acquire and develop the characteristics listed in Section 53A-1a-104 ,
             260      each school district and each public school within its respective district shall implement a
             261      comprehensive system of accountability in which students advance through public schools by
             262      demonstrating competency in required skills and mastery of required knowledge through the
             263      use of diverse assessment instruments such as authentic and criterion referenced tests, projects,
             264      and portfolios.
             265          (2) (a) Each school district and public school shall:
             266          (i) develop and implement programs integrating technology into the curriculum,
             267      instruction, and student assessment;
             268          (ii) provide for teacher and parent involvement in policymaking at the school site;
             269          (iii) implement a public school choice program to give parents, students, and teachers
             270      greater flexibility in designing and choosing among programs with different focuses through
             271      schools within the same district and other districts, subject to space availability, demographics,
             272      and legal and performance criteria;
             273          (iv) establish strategic planning at both the district and school level and site-based
             274      decision making programs at the school level;
             275          (v) provide opportunities for each student to acquire and develop academic and
             276      occupational knowledge, skills, and abilities;
             277          (vi) participate in ongoing research and development projects primarily at the school
             278      level aimed at improving the quality of education within the system; and
             279          (vii) involve business and industry in the education process through the establishment
             280      of partnerships with the business community at the district and school level.
             281          (b) (i) Each local school board, in consultation with school personnel, parents, and


             282      school community councils or similar entities shall establish policies to provide for the
             283      effective implementation of a personalized student education plan (SEP) or student
             284      education/occupation plan (SEOP) for each student at the school site.
             285          (ii) The policies shall include guidelines and expectations for:
             286          (A) recognizing the student's accomplishments, strengths, and progress towards
             287      meeting student achievement standards as defined in U-PASS;
             288          (B) planning, monitoring, and managing education and career development; and
             289          (C) involving students, parents, and school personnel in preparing and implementing
             290      SEPs and SEOPs.
             291          (iii) A parent may request conferences with school personnel in addition to SEP or
             292      SEOP conferences established by local school board policy.
             293          (iv) Time spent during the school day to implement SEPs and SEOPs is considered
             294      part of the school term referred to in Subsection 53A-17a-103 [(5)](4).
             295          (3) A school district or public school may submit proposals to modify or waive rules or
             296      policies of a supervisory authority within the public education system in order to acquire or
             297      develop the characteristics listed in Section 53A-1a-104 .
             298          (4) (a) Each school district and public school shall make an annual report to its patrons
             299      on its activities under this section.
             300          (b) The reporting process shall involve participation from teachers, parents, and the
             301      community at large in determining how well the district or school is performing.
             302          Section 5. Section 53A-1a-513 is amended to read:
             303           53A-1a-513. Funding for charter schools.
             304          (1) As used in this section:
             305          (a) "Charter school students' average local revenues" means the amount determined as
             306      follows:
             307          (i) for each student enrolled in a charter school on the previous October 1, calculate the
             308      district per pupil local revenues of the school district in which the student resides;
             309          (ii) sum the district per pupil local revenues for each student enrolled in a charter


             310      school on the previous October 1; and
             311          (iii) divide the sum calculated under Subsection (1)(a)(ii) by the number of students
             312      enrolled in charter schools on the previous October 1.
             313          (b) "District local property tax revenues" means the sum of a school district's revenue
             314      received from the following levies:
             315          (i) (A) a voted levy imposed under Section 53A-17a-133 ;
             316          (B) a board levy imposed under Section 53A-17a-134 ;
             317          (C) a 10% of basic levy imposed under Section 53A-17a-145 ;
             318          (D) a tort liability levy imposed under Section 63G-7-704 ;
             319          (E) a capital outlay levy imposed under Section 53A-16-107 ; and
             320          (F) a voted capital outlay levy imposed under Section 53A-16-110 ; or
             321          (ii) (A) a voted local levy imposed under Section 53A-17a-133 ;
             322          (B) a board local levy imposed under Section 53A-17a-164 , excluding revenues
             323      expended for:
             324          (I) recreational facilities and activities authorized under Title 11, Chapter 2,
             325      Playgrounds;
             326          (II) pupil transportation, up to the amount of revenue generated by a .0003 per dollar of
             327      taxable value of the school district's board local levy; and
             328          (III) the K-3 Reading Improvement Program, up to the amount of revenue generated by
             329      a .000121 per dollar of taxable value of the school district's board local levy; and
             330          (C) a capital local levy imposed under Section 53A-16-113 .
             331          [(b)] (c) "District per pupil local revenues" means [the] an amount [determined as
             332      follows] equal to the following, using data from the most recently published school district
             333      annual financial reports and state superintendent's annual report:
             334          [(i) calculate the sum of a school district's revenue received from:]
             335          [(A) a voted levy imposed under Section 53A-17a-133 ;]
             336          [(B) a board levy imposed under Section 53A-17a-134 ;]
             337          [(C) 10% of the cost of the basic program levy imposed under Section 53A-17a-145 ;]


             338          [(D) a tort liability levy imposed under Section 63G-7-704 ;]
             339          [(E) a capital outlay levy imposed under Section 53A-16-107 ; and]
             340          [(F) a voted capital outlay levy imposed under Section 53A-16-110 ; and]
             341          [(ii) divide the sum calculated under Subsection (1)(b)(i) by the sum of:]
             342          (i) district local property tax revenues; divided by
             343          (ii) the sum of:
             344          (A) a school district's average daily membership; and
             345          (B) the average daily membership of a school district's resident students who attend
             346      charter schools.
             347          [(c)] (d) "Resident student" means a student who is considered a resident of the school
             348      district under Title 53A, Chapter 2, Part 2, District of Residency.
             349          [(d)] (e) "Statewide average debt service revenues" means the amount determined as
             350      follows, using data from the most recently published state superintendent's annual report:
             351          (i) sum the revenues of each school district from the debt service levy imposed under
             352      Section 11-14-310 ; and
             353          (ii) divide the sum calculated under Subsection (1)[(d)](e)(i) by statewide school
             354      district average daily membership.
             355          (2) (a) Charter schools shall receive funding as described in this section, except
             356      Subsections (3) through (8) do not apply to charter schools described in Subsection (2)(b).
             357          (b) Charter schools authorized by local school boards that are converted from district
             358      schools or operate in district facilities without paying reasonable rent shall receive funding as
             359      prescribed in Section 53A-1a-515 .
             360          (3) (a) Except as provided in Subsection (3)(b), a charter school shall receive state
             361      funds, as applicable, on the same basis as a school district receives funds.
             362          (b) In distributing funds under [Title 53A,] Chapter 17a, Minimum School Program
             363      Act, to charter schools, charter school pupils shall be weighted, where applicable, as follows:
             364          (i) .55 for kindergarten pupils;
             365          (ii) .9 for pupils in grades 1 through 6;


             366          (iii) .99 for pupils in grades 7 through 8; and
             367          (iv) 1.2 for pupils in grades 9 through 12.
             368          (4) (a) (i) A school district shall allocate a portion of school district revenues for each
             369      resident student of the school district who is enrolled in a charter school on October 1 equal to
             370      25% of the lesser of:
             371          (A) district per pupil local revenues; or
             372          (B) charter school students' average local revenues.
             373          (ii) Nothing in this Subsection (4)(a) affects the school bond guarantee program
             374      established under Chapter 28, Utah School Bond Guaranty Act.
             375          (b) The State Board of Education shall:
             376          (i) deduct an amount equal to the allocation provided under Subsection (4)(a) from
             377      state funds the school district is authorized to receive under [Title 53A,] Chapter 17a,
             378      Minimum School Program Act; and
             379          (ii) remit the money to the student's charter school.
             380          (c) Notwithstanding the method used to transfer school district revenues to charter
             381      schools as provided in Subsection (4)(b), a school district may deduct the allocations to charter
             382      schools under this section from:
             383          (i) unrestricted revenues available to the school district; or
             384          (ii) the revenue sources listed in [Subsections (1)(b)(i)(A) through (F)] Subsection
             385      (1)(b) based on the portion of the allocations to charter schools attributed to each of the
             386      revenue sources listed in [Subsections (1)(b)(i)(A) through (F)] Subsection (1)(b).
             387          (d) (i) Subject to future budget constraints, the Legislature shall provide an
             388      appropriation for charter schools for each student enrolled on October 1 to supplement the
             389      allocation of school district revenues under Subsection (4)(a).
             390          (ii) Except as provided in Subsection (4)(d)(iii), the amount of money provided by the
             391      state for a charter school student shall be the sum of:
             392          (A) charter school students' average local revenues minus the allocation of school
             393      district revenues under Subsection (4)(a); and


             394          (B) statewide average debt service revenues.
             395          (iii) If the total of a school district's allocation for a charter school student under
             396      Subsection (4)(a) and the amount provided by the state under Subsection (4)(d)(ii) is less than
             397      $1427, the state shall provide an additional supplement so that a charter school receives at least
             398      $1427 per student under this Subsection (4).
             399          (iv) (A) If the appropriation provided under this Subsection (4)(d) is less than the
             400      amount prescribed by Subsection (4)(d)(ii) or (4)(d)(iii), the appropriation shall be allocated
             401      among charter schools in proportion to each charter school's enrollment as a percentage of the
             402      total enrollment in charter schools.
             403          (B) If the State Board of Education makes adjustments to Minimum School Program
             404      allocations as provided under Section 53A-17a-105 , the allocation provided in Subsection
             405      (4)(d)(iv)(A) shall be determined after adjustments are made under Section 53A-17a-105 .
             406          (e) Of the money provided to a charter school under this Subsection (4), 10% shall be
             407      expended for funding school facilities only.
             408          (5) Charter schools are eligible to receive federal funds if they meet all applicable
             409      federal requirements and comply with relevant federal regulations.
             410          (6) The State Board of Education shall distribute funds for charter school students
             411      directly to the charter school.
             412          (7) (a) Notwithstanding Subsection (3), a charter school is not eligible to receive state
             413      transportation funding.
             414          (b) The board shall also adopt rules relating to the transportation of students to and
             415      from charter schools, taking into account Sections 53A-2-210 and 53A-17a-127 .
             416          (c) The governing body of the charter school may provide transportation through an
             417      agreement or contract with the local school board, a private provider, or with parents.
             418          (8) (a) (i) The state superintendent of public instruction may allocate grants for both
             419      start-up and ongoing costs to eligible charter school applicants from money appropriated for
             420      the implementation of this part.
             421          (ii) Applications for the grants shall be filed on a form determined by the state


             422      superintendent and in conjunction with the application for a charter.
             423          (iii) The amount of a grant may vary based upon the size, scope, and special
             424      circumstances of the charter school.
             425          (iv) The governing board of the charter school shall use the grant to meet the expenses
             426      of the school as established in the school's charter.
             427          (b) The State Board of Education shall coordinate the distribution of federal money
             428      appropriated to help fund costs for establishing and maintaining charter schools within the
             429      state.
             430          (9) (a) A charter school may receive, hold, manage and use any devise, bequest, grant,
             431      endowment, gift, or donation of any property made to the school for any of the purposes of this
             432      part.
             433          (b) It is unlawful for any person affiliated with a charter school to demand or request
             434      any gift, donation, or contribution from a parent, teacher, employee, or other person affiliated
             435      with the charter school as a condition for employment or enrollment at the school or continued
             436      attendance at the school.
             437          Section 6. Section 53A-2-114 is amended to read:
             438           53A-2-114. Additional levies -- School board options to abolish or continue after
             439      consolidation.
             440          (1) If a school district [which] that has approved an additional levy under Section
             441      [ 53A-16-110 , 53A-17a-133 , 53A-17a-134 , or 53A-17a-145 ] 53A-17a-133 is consolidated with
             442      a district which does not have such a levy, the board of education of the consolidated district
             443      may choose to abolish the levy, or apply it in whole or in part to the entire consolidated district.
             444          (2) If the board chooses to apply any part of the levy to the entire district, the levy may
             445      continue in force for no more than three years, unless approved by the electors of the
             446      consolidated district in the manner set forth in Section [ 53A-16-110 ] 53A-17a-133 .
             447          Section 7. Section 53A-2-115 is amended to read:
             448           53A-2-115. Additional levies in transferred territory -- Transferee board option
             449      to abolish or continue.


             450          If two or more districts undergo restructuring that results in a district receiving territory
             451      that increases the population of the district by at least 25%, and if the transferred territory was,
             452      at the time of transfer, subject to an additional levy under Section [ 53A-16-110 , 53A-17a-133 ,
             453      53A-17a-134 , or 53A-17a-145 ] 53A-17a-133 , the board of education of the transferee district
             454      may abolish the levy or apply the levy in whole or in part to the entire restructured district.
             455      Any such levy made applicable to the entire district may continue in force for no more than five
             456      years, unless approved by the electors of the restructured district in the manner set forth in
             457      Section [ 53A-16-110 ] 53A-17a-133 .
             458          Section 8. Section 53A-2-118.2 is amended to read:
             459           53A-2-118.2. New school district property tax -- Limitations.
             460          (1) (a) A new school district created under Section 53A-2-118.1 may not impose a
             461      property tax prior to the fiscal year in which the new school district assumes responsibility for
             462      providing student instruction.
             463          (b) The remaining school district retains authority to impose property taxes on the
             464      existing school district, including the territory of the new school district, until the fiscal year in
             465      which the new school district assumes responsibility for providing student instruction.
             466          (2) (a) If at the time a new school district created pursuant to Section 53A-2-118.1
             467      assumes responsibility for student instruction any portion of the territory within the new school
             468      district was subject to a levy pursuant to Section [ 53A-16-110 or] 53A-17a-133 , the new
             469      school district's board may:
             470          (i) discontinue the levy for the new school district;
             471          (ii) impose a levy on the new school district as provided in Section [ 53A-16-110 or]
             472      53A-17a-133 ; or
             473          (iii) impose the levy on the new school district, subject to Subsection (2)(b).
             474          (b) If the new school district's board applies a levy to the new school district pursuant
             475      to Subsection (2)(a)(iii), the levy may not exceed the maximum duration or rate authorized by
             476      the voters of the existing district or districts at the time of the vote to create the new school
             477      district.


             478          Section 9. Section 53A-2-118.3 is amended to read:
             479           53A-2-118.3. Imposition of the capital outlay levy in qualifying divided school
             480      districts.
             481          (1) For purposes of this section:
             482          (a) "Qualifying divided school district" means a divided school district:
             483          (i) located within a county of the second through sixth class; and
             484          (ii) with a new school district created under Section 53A-2-118.1 that begins to provide
             485      educational services after July 1, 2008.
             486          (b) "Qualifying taxable year" means the calendar year in which a new school district
             487      begins to provide educational services.
             488          (2) Beginning with the qualifying taxable year, in order to qualify for receipt of the
             489      state contribution toward the minimum school program, a school district within a qualifying
             490      divided school district shall impose a capital [outlay] local levy described in Section
             491      [ 53A-16-107 ] 53A-16-113 of at least .0006 per dollar of taxable value.
             492          (3) The county treasurer of a county with a qualifying divided school district shall
             493      distribute revenues generated by the .0006 portion of the capital [outlay] local levy required in
             494      Subsection (2) to the school districts located within the boundaries of the qualifying divided
             495      school district as follows:
             496          (a) 25% of the revenues shall be distributed in proportion to a school district's
             497      percentage of the total enrollment growth in all of the school districts within the qualifying
             498      divided school district that have an increase in enrollment, calculated on the basis of the
             499      average annual enrollment growth over the prior three years in all of the school districts within
             500      the qualifying divided school district that have an increase in enrollment over the prior three
             501      years, as of the October 1 enrollment counts; and
             502          (b) 75% of the revenues shall be distributed in proportion to a school district's
             503      percentage of the total current year enrollment in all of the school districts within the qualifying
             504      divided school district, as of the October 1 enrollment counts.
             505          (4) If a new school district is created or school district boundaries are adjusted, the


             506      enrollment and average annual enrollment growth for each affected school district shall be
             507      calculated on the basis of enrollment in school district schools located within that school
             508      district's newly created or adjusted boundaries, as of October 1 enrollment counts.
             509          (5) On or before December 31 of each year, the State Board of Education shall provide
             510      a county treasurer with audited enrollment information from the fall enrollment audit necessary
             511      to distribute revenues as required by this section.
             512          (6) On or before March 31 of each year, a county treasurer in a county with a
             513      qualifying divided school district shall distribute, in accordance with Subsection (3), the
             514      revenue generated within the qualifying divided school district during the prior calendar year
             515      from the capital [outlay] local levy required in Subsection (2).
             516          Section 10. Section 53A-2-206 is amended to read:
             517           53A-2-206. Interstate compact students -- Inclusion in attendance count --
             518      Funding for foreign exchange students -- Annual report -- Requirements for exchange
             519      student agencies.
             520          (1) A school district or charter school may include the following students in the
             521      district's or school's membership and attendance count for the purpose of apportionment of
             522      state money:
             523          (a) a student enrolled under an interstate compact, established between the State Board
             524      of Education and the state education authority of another state, under which a student from one
             525      compact state would be permitted to enroll in a public school in the other compact state on the
             526      same basis as a resident student of the receiving state; or
             527          (b) a student receiving services under Title 62A, Chapter 4a, Part 7, Interstate Compact
             528      on Placement of Children.
             529          (2) (a) A school district or charter school may include foreign exchange students in the
             530      district's or school's membership and attendance count for the purpose of apportionment of
             531      state money, except as provided in Subsections (2)(b) through (e).
             532          (b) (i) Notwithstanding Section 53A-17a-106 , foreign exchange students may not be
             533      included in average daily membership for the purpose of determining the number of weighted


             534      pupil units in the grades 1-12 basic program.
             535          (ii) Subject to the limitation in Subsection (2)(c), the number of weighted pupil units in
             536      the grades 1-12 basic program attributed to foreign exchange students shall be equal to the
             537      number of foreign exchange students who were:
             538          (A) enrolled in a school district or charter school on October 1 of the previous fiscal
             539      year; and
             540          (B) sponsored by an agency approved by the district's local school board or charter
             541      school's governing board.
             542          (c) (i) The total number of foreign exchange students in the state that may be counted
             543      for the purpose of apportioning state money under Subsection (2)(b) shall be the lesser of:
             544          (A) the number of foreign exchange students enrolled in public schools in the state on
             545      October 1 of the previous fiscal year; or
             546          (B) 328 foreign exchange students.
             547          (ii) The State Board of Education shall make rules in accordance with Title 63G,
             548      Chapter 3, Utah Administrative Rulemaking Act, to administer the cap on the number of
             549      foreign exchange students that may be counted for the purpose of apportioning state money
             550      under Subsection (2)(b).
             551          (d) Notwithstanding Sections 53A-17a-133 and [ 53A-17a-134 ] 53A-17a-164 , weighted
             552      pupil units in the grades 1 through 12 basic program for foreign exchange students, as
             553      determined by Subsections (2)(b) and (c), may not be included for the purposes of determining
             554      a school district's state guarantee money under the voted or board [leeway programs] local
             555      levies.
             556          (e) Notwithstanding Section 53A-17a-125 , foreign exchange students may not be
             557      included in enrollment when calculating student growth for the purpose of adjusting the annual
             558      appropriation for retirement and Social Security.
             559          (3) A school district or charter school may:
             560          (a) enroll foreign exchange students that do not qualify for state money; and
             561          (b) pay for the costs of those students with other funds available to the school district


             562      or charter school.
             563          (4) Due to the benefits to all students of having the opportunity to become familiar
             564      with individuals from diverse backgrounds and cultures, school districts are encouraged to
             565      enroll foreign exchange students, as provided in Subsection (3), particularly in schools with
             566      declining or stable enrollments where the incremental cost of enrolling the foreign exchange
             567      student may be minimal.
             568          (5) The board shall make an annual report to the Legislature on the number of
             569      exchange students and the number of interstate compact students sent to or received from
             570      public schools outside the state.
             571          (6) (a) A local school board or charter school governing board shall require each
             572      approved exchange student agency to provide it with a sworn affidavit of compliance prior to
             573      the beginning of each school year.
             574          (b) The affidavit shall include the following assurances:
             575          (i) that the agency has complied with all applicable policies of the board;
             576          (ii) that a household study, including a background check of all adult residents, has
             577      been made of each household where an exchange student is to reside, and that the study was of
             578      sufficient scope to provide reasonable assurance that the exchange student will receive proper
             579      care and supervision in a safe environment;
             580          (iii) that host parents have received training appropriate to their positions, including
             581      information about enhanced criminal penalties under Subsection 76-5-406 (10) for persons who
             582      are in a position of special trust;
             583          (iv) that a representative of the exchange student agency shall visit each student's place
             584      of residence at least once each month during the student's stay in Utah;
             585          (v) that the agency will cooperate with school and other public authorities to ensure
             586      that no exchange student becomes an unreasonable burden upon the public schools or other
             587      public agencies;
             588          (vi) that each exchange student will be given in the exchange student's native language
             589      names and telephone numbers of agency representatives and others who could be called at any


             590      time if a serious problem occurs; and
             591          (vii) that alternate placements are readily available so that no student is required to
             592      remain in a household if conditions appear to exist which unreasonably endanger the student's
             593      welfare.
             594          (7) (a) A local school board or charter school governing board shall provide each
             595      approved exchange student agency with a list of names and telephone numbers of individuals
             596      not associated with the agency who could be called by an exchange student in the event of a
             597      serious problem.
             598          (b) The agency shall make a copy of the list available to each of its exchange students
             599      in the exchange student's native language.
             600          (8) Notwithstanding Subsection (2)(c)(i), a school district or charter school shall enroll
             601      a foreign exchange student if the foreign exchange student:
             602          (a) is sponsored by an agency approved by the State Board of Education;
             603          (b) attends the same school during the same time period that another student from the
             604      school is:
             605          (i) sponsored by the same agency; and
             606          (ii) enrolled in a school in a foreign country; and
             607          (c) is enrolled in the school for one year or less.
             608          Section 11. Section 53A-2-214 is amended to read:
             609           53A-2-214. Online students' participation in extracurricular activities.
             610          (1) As used in this section:
             611          (a) "Online education" means the use of information and communication technologies
             612      to deliver educational opportunities to a student in a location other than a school.
             613          (b) "Online student" means a student who:
             614          (i) participates in an online education program sponsored or supported by the State
             615      Board of Education, a school district, or charter school; and
             616          (ii) generates funding for the school district or school pursuant to Subsection
             617      53A-17a-103 [(5)](4) and rules of the State Board of Education.


             618          (2) An online student is eligible to participate in extracurricular activities at:
             619          (a) the school within whose attendance boundaries the student's custodial parent or
             620      legal guardian resides; or
             621          (b) the public school from which the student withdrew for the purpose of participating
             622      in an online education program.
             623          (3) A school other than a school described in Subsection (2)(a) or (b) may allow an
             624      online student to participate in extracurricular activities other than:
             625          (a) interschool competitions of athletic teams sponsored and supported by a public
             626      school; or
             627          (b) interschool contests or competitions for music, drama, or forensic groups or teams
             628      sponsored and supported by a public school.
             629          (4) An online student is eligible for extracurricular activities at a public school
             630      consistent with eligibility standards as applied to full-time students of the public school.
             631          (5) A school district or public school may not impose additional requirements on an
             632      online school student to participate in extracurricular activities that are not imposed on
             633      full-time students of the public school.
             634          (6) (a) The State Board of Education shall make rules establishing fees for an online
             635      school student's participation in extracurricular activities at school district schools.
             636          (b) The rules shall provide that:
             637          (i) online school students pay the same fees as other students to participate in
             638      extracurricular activities;
             639          (ii) online school students are eligible for fee waivers pursuant to Section 53A-12-103 ;
             640          (iii) for each online school student who participates in an extracurricular activity at a
             641      school district school, the online school shall pay a share of the school district's costs for the
             642      extracurricular activity; and
             643          (iv) an online school's share of the costs of an extracurricular activity shall reflect state
             644      and local tax revenues expended, except capital facilities expenditures, for an extracurricular
             645      activity in a school district or school divided by total student enrollment of the school district


             646      or school.
             647          (c) In determining an online school's share of the costs of an extracurricular activity
             648      under Subsections (6)(b)(iii) and (iv), the State Board of Education may establish uniform fees
             649      statewide based on average costs statewide or average costs within a sample of school districts.
             650          (7) When selection to participate in an extracurricular activity at a public school is
             651      made on a competitive basis, an online student is eligible to try out for and participate in the
             652      activity as provided in this section.
             653          Section 12. Section 53A-16-107 is amended to read:
             654           53A-16-107. Capital outlay levy -- Maintenance of school facilities -- Authority to
             655      use proceeds of .0002 tax rate -- Restrictions and procedure -- Limited authority to use
             656      proceeds for general fund purposes -- Notification required when using proceeds for
             657      general fund purposes.
             658          (1) Subject to Subsection (3) and except as provided in [Subsection] Subsections (5)
             659      and (6), a local school board may annually impose a capital outlay levy not to exceed .0024 per
             660      dollar of taxable value to be used for:
             661          (a) capital outlay;
             662          (b) debt service; and
             663          (c) subject to Subsection (2), school facility maintenance.
             664          (2) (a) A local school board may utilize the proceeds of a maximum of .0002 per dollar
             665      of taxable value of the local school board's annual capital outlay levy for the maintenance of
             666      school facilities in the school district.
             667          (b) A local school board that uses the option provided under Subsection (2)(a) shall:
             668          (i) maintain the same level of expenditure for maintenance in the current year as it did
             669      in the preceding year, plus the annual average percentage increase applied to the maintenance
             670      and operation budget for the current year; and
             671          (ii) identify the expenditure of capital outlay funds for maintenance by a district project
             672      number to ensure that the funds are expended in the manner intended.
             673          (c) The State Board of Education shall establish by rule the expenditure classification


             674      for maintenance under this program using a standard classification system.
             675          (3) Beginning January 1, 2009, and through the taxable year beginning January 1,
             676      2011, in order to qualify for receipt of the state contribution toward the minimum school
             677      program, a local school board in a county of the first class shall impose a capital outlay levy of
             678      at least .0006 per dollar of taxable value.
             679          (4) (a) The county treasurer of a county of the first class shall distribute revenues
             680      generated by the .0006 portion of the capital outlay levy required in Subsection (3) to school
             681      districts within the county in accordance with Section 53A-16-107.1 .
             682          (b) If a school district in a county of the first class imposes a capital outlay levy
             683      pursuant to this section which exceeds .0006 per dollar of taxable value, the county treasurer of
             684      a county of the first class shall distribute revenues generated by the portion of the capital outlay
             685      levy which exceeds .0006 to the school district imposing the levy.
             686          (5) (a) Notwithstanding Subsections (1)(a), (b), and (c) and subject to Subsections
             687      (5)(b), (c), and (d), for fiscal years 2010-11 and 2011-12, a local school board may use the
             688      proceeds of the local school board's capital outlay levy for general fund purposes if the
             689      proceeds are not committed or dedicated to pay debt service or bond payments.
             690          (b) If a local school board uses the proceeds described in Subsection (5)(a) for general
             691      fund purposes, the local school board shall notify the public of the local school board's use of
             692      the capital outlay levy proceeds for general fund purposes:
             693          (i) prior to the board's budget hearing in accordance with the notification requirements
             694      described in Section 53A-19-102 ; and
             695          (ii) at a budget hearing required in Section 53A-19-102 .
             696          (c) A local school board may not use the proceeds described in Subsection (5)(a) to
             697      fund the following accounting function classifications as provided in the Financial Accounting
             698      for Local and State School Systems guidelines developed by the National Center for Education
             699      Statistics:
             700          (i) 2300 Support Services - General District Administration; or
             701          (ii) 2500 Support Services - Central Services.


             702          (d) A local school board may not use the proceeds from a distribution described in
             703      Section 53A-16-107.1 for general fund purposes.
             704          (6) Beginning January 1, 2012, a local school board may not levy a tax in accordance
             705      with this section.
             706          Section 13. Section 53A-16-110 is amended to read:
             707           53A-16-110. Special tax to buy school building sites, build and furnish
             708      schoolhouses, or improve school property.
             709          (1) (a) [A] Except as provided in Subsection (6), a local school board may, by
             710      following the process for special elections established in Sections 20A-1-203 and 20A-1-204 ,
             711      call a special election to determine whether a special property tax should be levied for one or
             712      more years to buy building sites, build and furnish schoolhouses, or improve the school
             713      property under its control.
             714          (b) The tax may not exceed .2% of the taxable value of all taxable property in the
             715      district in any one year.
             716          (2) The board shall give reasonable notice of the election and follow the same
             717      procedure used in elections for the issuance of bonds.
             718          (3) If a majority of those voting on the proposition vote in favor of the tax, it is levied
             719      in addition to a levy authorized under Section 53A-17a-145 and computed on the valuation of
             720      the county assessment roll for that year.
             721          (4) (a) Within 20 days after the election, the board shall certify the amount of the
             722      approved tax to the governing body of the county in which the school district is located.
             723          (b) The governing body shall acknowledge receipt of the certification and levy and
             724      collect the special tax.
             725          (c) It shall then distribute the collected taxes to the business administrator of the school
             726      district at the end of each calendar month.
             727          (5) The special tax becomes due and delinquent and attaches to and becomes a lien on
             728      real and personal property at the same time as state and county taxes.
             729          (6) Notwithstanding Subsections (3) and (4), beginning January 1, 2012, a local school


             730      board may not levy a tax in accordance with this section.
             731          Section 14. Section 53A-16-113 is enacted to read:
             732          53A-16-113. Capital local levy -- First class county required levy.
             733          (1) (a) Subject to the other requirements of this section, for a calendar year beginning
             734      on or after January 1, 2012, a local school board may levy a tax to fund the school district's
             735      capital projects.
             736          (b) A tax rate imposed by a school district pursuant to this section may not exceed
             737      .0030 per dollar of taxable value in any calendar year.
             738          (2) A school district that imposes a capital local levy in the calendar year beginning on
             739      January 1, 2012, is exempt from the public notice and hearing requirements of Section
             740      59-2-919 if the school district budgets an amount of ad valorem property tax revenue equal to
             741      or less than the sum of the following amounts:
             742          (a) the amount of revenue generated during the calendar year beginning on January 1,
             743      2011, from the sum of the following levies of a school district:
             744          (i) a capital outlay levy imposed under Section 53A-16-107 ; and
             745          (ii) the portion of the 10% of basic levy described in Section 53A-17a-145 that is
             746      budgeted for debt service or capital outlay; and
             747          (b) revenue from new growth as defined in Subsection 59-2-924 (4)(c).
             748          (3) Beginning January 1, 2012, in order to qualify for receipt of the state contribution
             749      toward the Minimum School Program described in Section 53A-17a-103 , a local school board
             750      in a county of the first class shall impose a capital local levy of a least .0006 per dollar of
             751      taxable value.
             752          (4) (a) The county treasurer of a county of the first class shall distribute revenues
             753      generated by the .0006 portion of the capital local levy required in Subsection (2) to school
             754      districts within the county in accordance with Section 53A-16-114 .
             755          (b) If a school district in a county of the first class imposes a capital local levy pursuant
             756      to this section that exceeds .0006 per dollar of taxable value, the county treasurer shall
             757      distribute revenues generated by the portion of the capital local levy that exceeds .0006 to the


             758      school district imposing the levy.
             759          Section 15. Section 53A-16-114 , which is renumbered from Section 53A-16-107.1 is
             760      renumbered and amended to read:
             761           [53A-16-107.1].     53A-16-114. School capital outlay in counties of the first
             762      class -- Allocation -- Report to Education Interim Committee.
             763          (1) For purposes of this section:
             764          (a) "Average annual enrollment growth over the prior three years" means the quotient
             765      of:
             766          (i) (A) enrollment in the current school year, based on October 1 enrollment counts;
             767      minus
             768          (B) enrollment in the year three years prior, based on October 1 enrollment counts;
             769      divided by
             770          (ii) three.
             771          (b) "Capital outlay increment [monies"] money" means the amount of revenue equal to
             772      the difference between:
             773          (i) the amount of revenue generated by a levy of .0006 per dollar of taxable value
             774      within a receiving school district during a fiscal year; and
             775          (ii) the amount of revenue the receiving school district received during the same fiscal
             776      year from the distribution described in Subsection (2).
             777          (c) "Contributing school district" means a school district in a county of the first class
             778      that in a fiscal year receives less revenue from the distribution described in Subsection (2) than
             779      it would have received during the same fiscal year from a levy imposed within the school
             780      district of .0006 per dollar of taxable value.
             781          (d) "Receiving school district" means a school district in a county of the first class that
             782      in a fiscal year receives more revenue from the distribution described in Subsection (2) than it
             783      would have received during the same fiscal year from a levy imposed within the school district
             784      of .0006 per dollar of taxable value.
             785          (2) The county treasurer of a county of the first class shall distribute revenues


             786      generated by the .0006 portion of the capital outlay levy required in Subsection 53A-16-107 (3)
             787      or the capital local levy required in Section 53A-16-113 to school districts located within the
             788      county of the first class as follows:
             789          (a) 25% of the revenues shall be distributed in proportion to a school district's
             790      percentage of the total enrollment growth in all of the school districts within the county that
             791      have an increase in enrollment, calculated on the basis of the average annual enrollment growth
             792      over the prior three years in all of the school districts within the county that have an increase in
             793      enrollment over the prior three years, as of the October 1 enrollment counts; and
             794          (b) 75% of the revenues shall be distributed in proportion to a school district's
             795      percentage of the total current year enrollment in all of the school districts within the county, as
             796      of the October 1 enrollment counts.
             797          (3) If a new school district is created or school district boundaries are adjusted, the
             798      enrollment and average annual enrollment growth for each affected school district shall be
             799      calculated on the basis of enrollment in school district schools located within that school
             800      district's newly created or adjusted boundaries, as of October 1 enrollment counts.
             801          (4) On or before December 31 of each year, the State Board of Education shall provide
             802      a county treasurer with audited enrollment information from the fall enrollment audit necessary
             803      to distribute revenues as required by this section.
             804          (5) On or before March 31 of each year, a county treasurer in a county of the first class
             805      shall distribute the revenue generated within the county of the first class during the prior
             806      calendar year from the capital outlay levy described in Section 53A-16-107 or the capital local
             807      levy described in Section 53A-17a-113 .
             808          (6) On or before the November meeting of the Education Interim Committee of each
             809      year, a receiving school district shall report to the committee:
             810          (a) how the receiving school district spent the district's capital outlay increment
             811      [monies] money during the prior fiscal year; and
             812          (b) the receiving school district's plan to increase student capacity of existing school
             813      buildings within the district.


             814          (7) The Education Interim Committee shall consider the reports of receiving school
             815      districts described in Subsection (6) as part of a review to reauthorize this section and
             816      provisions related to this section, if the committee is directed to conduct a review pursuant to
             817      Title 63I, Chapter 1, Legislative Oversight and Sunset Act.
             818          Section 16. Section 53A-17a-103 is amended to read:
             819           53A-17a-103. Definitions.
             820          As used in this chapter:
             821          (1) "Basic state-supported school program" or "basic program" means public education
             822      programs for kindergarten, elementary, and secondary school students that are operated and
             823      maintained for the amount derived by multiplying the number of weighted pupil units for each
             824      school district or charter school by the value established each year in statute, except as
             825      otherwise provided in this chapter.
             826          (2) (a) "Certified revenue levy" means a property tax levy that provides an amount of
             827      ad valorem property tax revenue equal to the sum of:
             828          (i) the amount of ad valorem property tax revenue to be generated statewide in the
             829      previous year from imposing a minimum basic tax rate, as specified in Subsection
             830      53A-17a-135 (1)(a); and
             831          (ii) the product of:
             832          (A) new growth, as defined in:
             833          (I) Section 59-2-924 ; and
             834          (II) rules of the State Tax Commission; and
             835          (B) the minimum basic tax rate certified by the State Tax Commission for the previous
             836      year.
             837          (b) For purposes of this Subsection (2), "ad valorem property tax revenue" does not
             838      include property tax revenue received statewide from personal property that is:
             839          (i) assessed by a county assessor in accordance with Title 59, Chapter 2, Part 3, County
             840      Assessment; and
             841          (ii) semiconductor manufacturing equipment.


             842          (c) For purposes of calculating the certified revenue levy described in this Subsection
             843      (2), the State Tax Commission shall use:
             844          (i) the taxable value of real property assessed by a county assessor contained on the
             845      assessment roll;
             846          (ii) the taxable value of real and personal property assessed by the State Tax
             847      Commission; and
             848          (iii) the taxable year end value of personal property assessed by a county assessor
             849      contained on the prior year's assessment roll.
             850          [(3) "Leeway program" or "leeway" means a state-supported voted leeway program or
             851      board leeway program authorized under Section 53A-17a-133 or 53A-17a-134 .]
             852          [(4)] (3) "Pupil in average daily membership (ADM)" means a full-day equivalent
             853      pupil.
             854          [(5)] (4) (a) "State-supported minimum school program" or "Minimum School
             855      Program" means public school programs for kindergarten, elementary, and secondary schools
             856      as described in this Subsection [(5)] (4).
             857          (b) The minimum school program established in [the] school districts and charter
             858      schools shall include the equivalent of a school term of nine months as determined by the State
             859      Board of Education.
             860          (c) (i) The board shall establish the number of days or equivalent instructional hours
             861      that school is held for an academic school year.
             862          (ii) Education, enhanced by utilization of technologically enriched delivery systems,
             863      when approved by local school boards or charter school governing boards, shall receive full
             864      support by the State Board of Education as it pertains to fulfilling the attendance requirements,
             865      excluding time spent viewing commercial advertising.
             866          (d) The Minimum School Program includes a program or allocation funded by a line
             867      item appropriation or other appropriation designated as follows:
             868          (i) Basic School Program;
             869          (ii) Related to Basic Programs;


             870          (iii) Voted and Board [Leeway] Levy Programs; or
             871          (iv) Minimum School Program.
             872          [(6)] (5) "Weighted pupil unit or units or WPU or WPUs" means the unit of measure of
             873      factors that is computed in accordance with this chapter for the purpose of determining the
             874      costs of a program on a uniform basis for each district.
             875          Section 17. Section 53A-17a-105 is amended to read:
             876           53A-17a-105. Powers and duties of State Board of Education to adjust Minimum
             877      School Program allocations.
             878          (1) Except as provided in Subsection (2) or (4), if the number of weighted pupil units
             879      in a program is underestimated, the State Board of Education shall reduce the value of the
             880      weighted pupil unit in that program so that the total amount paid for the program does not
             881      exceed the amount appropriated for the program.
             882          (2) If the number of weighted pupil units in a program is overestimated, the State
             883      Board of Education shall spend excess [monies] money appropriated for the following
             884      purposes giving priority to the purpose described in Subsection (2)(a):
             885          (a) to support the value of the weighted pupil unit in a program within the basic
             886      state-supported school program in which the number of weighted pupil units is underestimated;
             887          (b) to support the state guarantee per weighted pupil unit provided under the voted
             888      [leeway] local levy program established in Section 53A-17a-133 or the [board-approved
             889      leeway] board local levy program established in Section [ 53A-17a-134 ] 53A-17a-164 , if:
             890          (i) local contributions to the voted [leeway] local levy program or [board-approved
             891      leeway] board local levy program are overestimated; or
             892          (ii) the number of weighted pupil units within school districts qualifying for a
             893      guarantee is underestimated;
             894          (c) to support the state supplement to local property taxes allocated to charter schools,
             895      if the state supplement is less than the amount prescribed by Subsection 53A-1a-513 (4);
             896          (d) for charter school administrative costs, if the appropriation for charter school
             897      administrative costs is insufficient to provide the amount per student prescribed in Subsection


             898      53A-17a-108 (2)(a); or
             899          (e) to support a school district with a loss in student enrollment as provided in Section
             900      53A-17a-139 .
             901          (3) If local contributions from the minimum basic tax rate imposed under Section
             902      53A-17a-135 are overestimated, the State Board of Education shall reduce the value of the
             903      weighted pupil unit for all programs within the basic state-supported school program so the
             904      total state contribution to the basic state-supported school program does not exceed the amount
             905      of state funds appropriated.
             906          (4) If local contributions from the minimum basic tax rate imposed under Section
             907      53A-17a-135 are underestimated, the State Board of Education shall:
             908          (a) spend the excess local contributions for the purposes specified in Subsection (2),
             909      giving priority to supporting the value of the weighted pupil unit in programs within the basic
             910      state-supported school program in which the number of weighted pupil units is underestimated;
             911      and
             912          (b) reduce the state contribution to the basic state-supported school program so the
             913      total cost of the basic state-supported school program does not exceed the total state and local
             914      funds appropriated to the basic state-supported school program plus the local contributions
             915      necessary to support the value of the weighted pupil unit in programs within the basic
             916      state-supported school program in which the number of weighted pupil units is underestimated.
             917          (5) Except as provided in Subsection (2) or (4), the State Board of Education shall
             918      reduce the guarantee per weighted pupil unit provided under the voted [leeway] local levy
             919      program established in Section 53A-17a-133 or [board-approved leeway] board local levy
             920      program established in Section [ 53A-17a-134 ] 53A-17a-164 , if:
             921          (a) local contributions to the voted [leeway] local levy program or [board-approved
             922      leeway] board local levy program are overestimated; or
             923          (b) the number of weighted pupil units within school districts qualifying for a
             924      guarantee is underestimated.
             925          (6) Monies appropriated to the State Board of Education are nonlapsing.


             926          (7) The State Board of Education shall report actions taken by the board under this
             927      section to the Office of the Legislative Fiscal Analyst and the Governor's Office of Planning
             928      and Budget.
             929          Section 18. Section 53A-17a-127 is amended to read:
             930           53A-17a-127. Eligibility for state-supported transportation -- Approved bus
             931      routes -- Additional local tax.
             932          (1) A student eligible for state-supported transportation means:
             933          (a) a student enrolled in kindergarten through grade six who lives at least 1-1/2 miles
             934      from school;
             935          (b) a student enrolled in grades seven through 12 who lives at least two miles from
             936      school; and
             937          (c) a student enrolled in a special program offered by a school district and approved by
             938      the State Board of Education for trainable, motor, multiple-disabled, or other students with
             939      severe disabilities who are incapable of walking to school or where it is unsafe for students to
             940      walk because of their disabling condition, without reference to distance from school.
             941          (2) If a school district implements double sessions as an alternative to new building
             942      construction, with the approval of the State Board of Education, those affected elementary
             943      school students residing less than 1-1/2 miles from school may be transported one way to or
             944      from school because of safety factors relating to darkness or other hazardous conditions as
             945      determined by the local school board.
             946          (3) (a) The State Board of Education shall distribute transportation money to school
             947      districts based on:
             948          (i) an allowance per mile for approved bus routes;
             949          (ii) an allowance per hour for approved bus routes; and
             950          (iii) a minimum allocation for each school district eligible for transportation funding.
             951          (b) The State Board of Education shall distribute appropriated transportation funds
             952      based on the prior year's eligible transportation costs as legally reported under Subsection
             953      53A-17a-126 (3).


             954          (c) The State Board of Education shall annually review the allowance per mile and the
             955      allowance per hour and adjust the allowances to reflect current economic conditions.
             956          (4) (a) Approved bus routes for funding purposes shall be determined on fall data
             957      collected by October 1.
             958          (b) Approved route funding shall be determined on the basis of the most efficient and
             959      economic routes.
             960          (5) A Transportation Advisory Committee with representation from local school
             961      superintendents, business officials, school district transportation supervisors, and the state
             962      superintendent's staff shall serve as a review committee for addressing school transportation
             963      needs, including recommended approved bus routes.
             964          (6) (a) [A] Except as provided in Subsection (6)(e), a local school board may provide
             965      for the transportation of students regardless of the distance from school, from:
             966          (i) general funds of the district; and
             967          (ii) a tax rate not to exceed .0003 per dollar of taxable value imposed on the district.
             968          (b) A local school board may use revenue from the tax described in Subsection
             969      (6)(a)(ii) to pay for transporting students and for the replacement of school buses.
             970          (c) (i) If a local school board levies a tax under Subsection (6)(a)(ii) of at least .0002,
             971      the state may contribute an amount not to exceed 85% of the state average cost per mile,
             972      contingent upon the Legislature appropriating funds for a state contribution.
             973          (ii) The state superintendent's staff shall distribute the state contribution according to
             974      rules enacted by the State Board of Education.
             975          (d) (i) The amount of state guarantee money which a school district would otherwise be
             976      entitled to receive under Subsection (6)(c) may not be reduced for the sole reason that the
             977      district's levy is reduced as a consequence of changes in the certified tax rate under Section
             978      59-2-924 due to changes in property valuation.
             979          (ii) Subsection (6)(d)(i) applies for a period of two years following the change in the
             980      certified tax rate.
             981          (e) Beginning January 1, 2012, a local school board may not impose a tax in


             982      accordance with this Subsection (6).
             983          (7) (a) (i) If a local school board expends an amount of revenue equal to at least .0002
             984      per dollar of taxable value of the school district's board local levy imposed under Section
             985      53A-17a-164 for the uses described in Subsection (7)(b), the state may contribute an amount
             986      not to exceed 85% of the state average cost per mile, contingent upon the Legislature
             987      appropriating funds for a state contribution.
             988          (ii) The state superintendent's staff shall distribute the state contribution according to
             989      rules enacted by the State Board of Education.
             990          (b) (i) The amount of state guarantee money that a school district would otherwise be
             991      entitled to receive under Subsection (7)(a) may not be reduced for the sole reason that the
             992      district's levy is reduced as a consequence of changes in the certified tax rate under Section
             993      59-2-924 due to changes in property valuation.
             994          (ii) Subsection (7)(b)(i) applies for a period of two years following the change in the
             995      certified tax rate.
             996          Section 19. Section 53A-17a-133 is amended to read:
             997           53A-17a-133. State-supported voted local levy authorized -- Election
             998      requirements -- State guarantee -- Reconsideration of the program.
             999          (1) An election to consider adoption or modification of a voted [leeway program] local
             1000      levy is required if initiative petitions signed by 10% of the number of electors who voted at the
             1001      last preceding general election are presented to the local school board or by action of the board.
             1002          (2) (a) (i) To [establish a voted leeway program] impose a voted local levy, a majority
             1003      of the electors of a district voting at an election in the manner set forth in [Section 53A-16-110 ]
             1004      Subsections (8) and (9) must vote in favor of a special tax.
             1005          (ii) The tax rate may not exceed .002 per dollar of taxable value.
             1006          [(b) The district may maintain a school program which exceeds the cost of the program
             1007      referred to in Section 53A-17a-145 with this voted leeway.]
             1008          [(c) In] (b) Except as provided in Subsection (2)(c), in order to receive state support
             1009      the first year, a district must receive voter approval no later than December 1 of the year prior


             1010      to implementation.
             1011          (c) Beginning on or after January 1, 2012, a school district may receive state support in
             1012      accordance with Subsection (3) without complying with the requirements of Subsection (2)(b)
             1013      if the local school board imposed a tax in accordance with this section during the taxable year
             1014      beginning on January 1, 2011 and ending on December 31, 2011.
             1015          (3) (a) [Under the voted leeway program] In addition to the revenue a school district
             1016      collects from the imposition of a levy pursuant to this section, the state shall contribute an
             1017      amount sufficient to guarantee $25.25 per weighted pupil unit for each .0001 of the first .0016
             1018      per dollar of taxable value.
             1019          (b) The same dollar amount guarantee per weighted pupil unit for the .0016 per dollar
             1020      of taxable value under Subsection (3)(a) shall apply to the [board-approved leeway] portion of
             1021      the board local levy authorized in Section [ 53A-17a-134 ] 53A-17a-164 , so that the guarantee
             1022      shall apply up to a total of .002 per dollar of taxable value if a school district levies a tax rate
             1023      under both programs.
             1024          (c) Beginning July 1, 2011, the $25.25 guarantee under Subsections (3)(a) and (b) shall
             1025      be indexed each year to the value of the weighted pupil unit by making the value of the
             1026      guarantee equal to.010544 times the value of the prior year's weighted pupil unit.
             1027          (d) (i) The amount of state guarantee money to which a school district would otherwise
             1028      be entitled to receive under this Subsection (3) may not be reduced for the sole reason that the
             1029      district's levy is reduced as a consequence of changes in the certified tax rate under Section
             1030      59-2-924 pursuant to changes in property valuation.
             1031          (ii) Subsection (3)(d)(i) applies for a period of five years following any such change in
             1032      the certified tax rate.
             1033          (e) The guarantee provided under this section does not apply to the portion of a voted
             1034      [leeway] local levy rate that exceeds the voted [leeway] local levy rate that was in effect for the
             1035      previous fiscal year, unless an increase in the voted [leeway] local levy rate was authorized in
             1036      an election conducted on or after July 1 of the previous fiscal year and before December 2 of
             1037      the previous fiscal year.


             1038          (4) (a) An election to modify an existing voted [leeway program] local levy is not a
             1039      reconsideration of the existing [program] authority unless the proposition submitted to the
             1040      electors expressly so states.
             1041          (b) A majority vote opposing a modification does not deprive the district of authority to
             1042      continue [an existing program] the levy.
             1043          (c) If adoption of a [leeway program] voted local levy is contingent upon an offset
             1044      reducing other local school board levies, the board must allow the electors, in an election, to
             1045      consider modifying or discontinuing the [program] imposition of the levy prior to a subsequent
             1046      increase in other levies that would increase the total local school board levy.
             1047          (d) Nothing contained in this section terminates, without an election, the authority of a
             1048      school district to continue [an existing voted leeway program] imposing an existing voted local
             1049      levy previously authorized by the voters as a voted leeway program.
             1050          (5) Notwithstanding Section 59-2-919 , a school district may budget an increased
             1051      amount of ad valorem property tax revenue derived from a voted [leeway] local levy imposed
             1052      under this section in addition to revenue from new growth as defined in Subsection
             1053      59-2-924 (4), without having to comply with the notice requirements of Section 59-2-919 , if:
             1054          (a) the voted [leeway] local levy is approved:
             1055          (i) in accordance with [Section 53A-16-110 ] Subsections (8) and (9) on or after
             1056      January 1, 2003; and
             1057          (ii) within the four-year period immediately preceding the year in which the school
             1058      district seeks to budget an increased amount of ad valorem property tax revenue derived from
             1059      the voted [leeway] local levy; and
             1060          (b) for a voted [leeway] local levy approved or modified in accordance with this
             1061      section on or after January 1, 2009, the school district complies with the requirements of
             1062      Subsection (7).
             1063          (6) Notwithstanding Section 59-2-919 , a school district may levy a tax rate under this
             1064      section that exceeds the certified tax rate without having to comply with the notice
             1065      requirements of Section 59-2-919 if:


             1066          (a) the levy exceeds the certified tax rate as the result of a school district budgeting an
             1067      increased amount of ad valorem property tax revenue derived from a voted [leeway] local levy
             1068      imposed under this section;
             1069          (b) the voted [leeway] local levy was approved:
             1070          (i) in accordance with [Section 53A-16-110 ] Subsections (8) and (9) on or after
             1071      January 1, 2003; and
             1072          (ii) within the four-year period immediately preceding the year in which the school
             1073      district seeks to budget an increased amount of ad valorem property tax revenue derived from
             1074      the voted [leeway] local levy; and
             1075          (c) for a voted [leeway] local levy approved or modified in accordance with this
             1076      section on or after January 1, 2009, the school district complies with requirements of
             1077      Subsection (7).
             1078          (7) For purposes of Subsection (5)(b) or (6)(c), the proposition submitted to the
             1079      electors regarding the adoption or modification of a voted [leeway program] local levy shall
             1080      contain the following statement:
             1081          "A vote in favor of this tax means that (name of the school district) may increase
             1082      revenue from this property tax without advertising the increase for the next five years."
             1083          (8) (a) Before imposing a property tax levy pursuant to this section, a school district
             1084      shall submit an opinion question to the school district's registered voters voting on the
             1085      imposition of the tax rate so that each registered voter has the opportunity to express the
             1086      registered voter's opinion on whether the tax rate should be imposed.
             1087          (b) The election required by this Subsection (8) shall be held:
             1088          (i) at a regular general election conducted in accordance with the procedures and
             1089      requirements of Title 20A, Election Code, governing regular elections;
             1090          (ii) at a municipal general election conducted in accordance with the procedures and
             1091      requirements of Section 20A-1-202 ; or
             1092          (iii) at a local special election conducted in accordance with the procedures and
             1093      requirements of Section 20A-1-203 .


             1094          (c) Notwithstanding the requirements of Subsections (8)(a) and (b), beginning on or
             1095      after January 1, 2012, a school district may levy a tax rate in accordance with this section
             1096      without complying with the requirements of Subsections (8)(a) and (b) if the school district
             1097      imposed a tax in accordance with this section at any time during the taxable year beginning on
             1098      January 1, 2011, and ending on December 31, 2011.
             1099          (9) If a school district determines that a majority of the school district's registered
             1100      voters voting on the imposition of the tax rate have voted in favor of the imposition of the tax
             1101      rate in accordance with Subsection (8), the school district may impose the tax rate.
             1102          Section 20. Section 53A-17a-134 is amended to read:
             1103           53A-17a-134. Board-approved leeway -- Purpose -- State support -- Disapproval.
             1104          (1) [Each] Except as provided in Subsection (9), a local school board may levy a tax
             1105      rate of up to .0004 per dollar of taxable value to maintain a school program above the cost of
             1106      the basic school program as follows:
             1107          (a) a local school board shall use the [monies] money generated by the tax for class
             1108      size reduction within the school district;
             1109          (b) if a local school board determines that the average class size in the school district is
             1110      not excessive, it may use the [monies] money for other school purposes but only if the board
             1111      has declared the use for other school purposes in a public meeting prior to levying the tax rate;
             1112      and
             1113          (c) a district may not use the [monies] money for other school purposes under
             1114      Subsection (1)(b) until it has certified in writing that its class size needs are already being met
             1115      and has identified the other school purposes for which the [monies] money will be used to the
             1116      State Board of Education and the state board has approved their use for other school purposes.
             1117          (2) (a) The state shall contribute an amount sufficient to guarantee $25.25 per weighted
             1118      pupil unit for each .0001 per dollar of taxable value.
             1119          (b) The guarantee shall increase in the same manner as provided for the voted [leeway]
             1120      local levy guarantee in Subsection 53A-17a-133 (3)(c).
             1121          (c) (i) The amount of state guarantee money to which a school district would otherwise


             1122      be entitled to under this Subsection (2) may not be reduced for the sole reason that the district's
             1123      levy is reduced as a consequence of changes in the certified tax rate under Section 59-2-924
             1124      pursuant to changes in property valuation.
             1125          (ii) Subsection (2)(c)(i) applies for a period of five years following any such change in
             1126      the certified tax rate.
             1127          (d) The guarantee provided under this section does not apply to:
             1128          (i) a board-authorized leeway in the first fiscal year the leeway is in effect, unless the
             1129      leeway was approved by voters pursuant to Subsections (4) through (6); or
             1130          (ii) the portion of a board-authorized leeway rate that is in excess of the
             1131      board-authorized leeway rate that was in effect for the previous fiscal year.
             1132          (3) The levy authorized under this section is not in addition to the maximum rate of
             1133      .002 authorized in Section 53A-17a-133 , but is a board-authorized component of the total tax
             1134      rate under that section.
             1135          (4) As an exception to Section 53A-17a-133 , the board-authorized levy does not
             1136      require voter approval, but the board may require voter approval if requested by a majority of
             1137      the board.
             1138          (5) An election to consider disapproval of the board-authorized levy is required, if
             1139      within 60 days after the levy is established by the board, referendum petitions signed by the
             1140      number of legal voters required in Section 20A-7-301 , who reside within the school district, are
             1141      filed with the school district.
             1142          (6) (a) A local school board shall establish its board-approved levy by April 1 to have
             1143      the levy apply to the fiscal year beginning July 1 in that same calendar year except that if an
             1144      election is required under this section, the levy applies to the fiscal year beginning July 1 of the
             1145      next calendar year.
             1146          (b) The approval and disapproval votes authorized in Subsections (4) and (5) shall
             1147      occur at a general election in even-numbered years, except that a vote required under this
             1148      section in odd-numbered years shall occur at a special election held on a day in odd-numbered
             1149      years that corresponds to the general election date. The school district shall pay for the cost of


             1150      a special election.
             1151          (7) (a) Modification or termination of a voter-approved leeway rate authorized under
             1152      this section is governed by Section 53A-17a-133 .
             1153          (b) A board-authorized leeway rate may be modified or terminated by a majority vote
             1154      of the board subject to disapproval procedures specified in this section.
             1155          (8) A board levy election does not require publication of a voter information pamphlet.
             1156          (9) Beginning January 1, 2012, a local school board may not levy a tax in accordance
             1157      with this section.
             1158          Section 21. Section 53A-17a-136 is amended to read:
             1159           53A-17a-136. Cost of operation and maintenance of minimum school program --
             1160      Division between state and school districts.
             1161          (1) The total cost of operation and maintenance of the minimum school program in the
             1162      state is divided between the state and school districts as follows:
             1163          (a) Each school district shall impose a minimum basic tax rate on all taxable, tangible
             1164      property in the school district and shall contribute the tax proceeds toward the cost of the basic
             1165      program as provided in this chapter.
             1166          (b) Each school district may also impose a levy for the purpose of participating in the
             1167      [leeway ] levy programs provided in [this chapter] Section 53A-17a-133 or 53A-17a-164 .
             1168          (c) The state shall contribute the balance of the total costs.
             1169          (2) The contributions by the school districts and by the state are computed separately
             1170      for the purpose of determining their respective contributions to the basic program and to the
             1171      [leeway] levy programs provided in [this chapter] Section 53A-17a-133 or 53A-17a-164 .
             1172          Section 22. Section 53A-17a-143 is amended to read:
             1173           53A-17a-143. Federal Impact Aid Program -- Offset for underestimated
             1174      allocations from the Federal Impact Aid Program.
             1175          (1) In addition to the revenues received from the levy imposed by each school district
             1176      and authorized by the Legislature under Section 53A-17a-135 , [a local school board may
             1177      increase its tax rate to] the Legislature shall provide an amount equal to the difference between


             1178      the district's anticipated receipts under the entitlement for the fiscal year from [Public Law
             1179      81-874] the Federal Impact Aid Program and the amount the district actually received from this
             1180      source for the next preceding fiscal year.
             1181          [(2) The tax rate for this purpose may not exceed .0008 per dollar of taxable value in
             1182      any fiscal year.]
             1183          [(3) This authorization terminates for each district at the end of the third year it is
             1184      used.]
             1185          [(4)] (2) If at the end of a fiscal year the sum of the receipts of a school district from
             1186      [this special tax rate plus allocation from Public Law 81-874] a distribution from the
             1187      Legislature pursuant to Subsection (1) plus the school district's allocations from the Federal
             1188      Impact Aid Program for that fiscal year exceeds the amount allocated to the district from
             1189      [Public Law 81-874] the Federal Impact Aid Program for the next preceding fiscal year, the
             1190      excess funds are carried into the next succeeding fiscal year and become in that year a part of
             1191      the district's contribution to its basic program for operation and maintenance under the state
             1192      minimum school finance law.
             1193          [(5)] (3) During that year the district's required tax rate for the basic program shall be
             1194      reduced so that the yield from the reduced tax rate plus the carryover funds equal the district's
             1195      required contribution to its basic program.
             1196          [(6)] (4) A district that reduces its basic tax rate under this section shall receive state
             1197      minimum school program funds as though the reduction in the tax rate had not been made.
             1198          Section 23. Section 53A-17a-145 is amended to read:
             1199           53A-17a-145. Additional levy by district for debt service, school sites, buildings,
             1200      buses, textbooks, and supplies.
             1201          (1) [A] Except as provided in Subsection (5), a school district may elect to increase its
             1202      tax rate by up to 10% of the cost of the basic program.
             1203          (2) The proceeds from the increase may only be used for debt service, the construction
             1204      or remodeling of school buildings, or the purchase of school sites, buses, equipment, textbooks,
             1205      and supplies.


             1206          (3) This section does not prohibit a district from exercising the authority granted by
             1207      other laws relating to tax rates.
             1208          (4) This increase in the tax rate is not included in determining the apportionment of the
             1209      State School Fund, and is in addition to other tax rates authorized by law.
             1210          (5) Beginning January 1, 2012, a school district may not:
             1211          (a) levy a tax rate in accordance with this section; or
             1212          (b) increase its tax rate as described in Subsection (1).
             1213          Section 24. Section 53A-17a-146 is amended to read:
             1214           53A-17a-146. Reduction of district allocation based on insufficient revenues.
             1215          (1) As used in this section, "Minimum School Program funds" means the total of state
             1216      and local funds appropriated for the Minimum School Program, excluding:
             1217          (a) the state-supported [voter leeway] voted local levy program pursuant to Section
             1218      53A-17a-133 ;
             1219          (b) the state-supported board [leeway] local levy program pursuant to Section
             1220      [ 53A-17a-134 ] 53A-17a-164 ; and
             1221          (c) the appropriation to charter schools to replace local property tax revenues pursuant
             1222      to Section 53A-1a-513 .
             1223          (2) If the Legislature reduces appropriations made to support public schools under
             1224      [Title 53A, Chapter 17a, Minimum School Program Act,] this chapter because an Education
             1225      Fund budget deficit, as defined in Section 63J-1-312 , exists, the State Board of Education, after
             1226      consultation with each school district and charter school, shall allocate the reduction among
             1227      school districts and charter schools in proportion to each school district's or charter school's
             1228      percentage share of Minimum School Program funds.
             1229          (3) Except as provided in Subsection (5), a school district or charter school shall
             1230      determine which programs are affected by a reduction pursuant to Subsection (2) and the
             1231      amount each program is reduced.
             1232          (4) Except as provided in Subsections (5) and (6), the requirement to spend a specified
             1233      amount in any particular program is waived if reductions are made pursuant to Subsection (2).


             1234          (5) A school district or charter school may not reduce or reallocate spending of funds
             1235      distributed to the school district or charter school for the following programs:
             1236          (a) educator salary adjustments provided in Section 53A-17a-153 ;
             1237          (b) the Teacher Salary Supplement Program provided in Section 53A-17a-156 ;
             1238          (c) the extended year for special educators provided in Section 53A-17a-158 ;
             1239          (d) USTAR centers provided in Section 53A-17a-159 ;
             1240          (e) the School LAND Trust Program created in Section 53A-16-101.5 ; or
             1241          (f) a special education program within the Basic School Program.
             1242          (6) A school district or charter school may not reallocate spending of funds distributed
             1243      to the school district or charter school to a reserve account.
             1244          Section 25. Section 53A-17a-150 is amended to read:
             1245           53A-17a-150. K-3 Reading Improvement Program.
             1246          (1) As used in this section:
             1247          (a) "Program" means the K-3 Reading Improvement Program[; and].
             1248          (b) "Program [monies"] money" means:
             1249          [(i) school district revenue from the levy authorized under Section 53A-17a-151 ;]
             1250          [(ii)] (i) school district revenue allocated to the program from [other monies] money
             1251      available to the school district, except [monies] money provided by the state, for the purpose of
             1252      receiving state funds under this section; and
             1253          [(iii) monies] (ii) money appropriated by the Legislature to the program.
             1254          (2) The K-3 Reading Improvement Program consists of program [monies] money and
             1255      is created to achieve the state's goal of having third graders reading at or above grade level.
             1256          (3) Subject to future budget constraints, the Legislature may annually appropriate
             1257      money to the K-3 Reading Improvement Program.
             1258          (4) (a) Prior to using program [monies] money, a school district or charter school shall
             1259      submit a plan to the State Board of Education for reading proficiency improvement that
             1260      incorporates the following components:
             1261          (i) assessment;


             1262          (ii) intervention strategies;
             1263          (iii) professional development;
             1264          (iv) reading performance standards; and
             1265          (v) specific measurable goals that are based upon gain scores.
             1266          (b) The State Board of Education shall provide model plans which a school district or
             1267      charter school may use, or the district or school may develop its own plan.
             1268          (c) Plans developed by a school district or charter school shall be approved by the State
             1269      Board of Education.
             1270          (5) There is created within the K-3 Reading Achievement Program three funding
             1271      programs:
             1272          (a) the Base Level Program;
             1273          (b) the Guarantee Program; and
             1274          (c) the Low Income Students Program.
             1275          (6) Monies appropriated to the State Board of Education for the K-3 Reading
             1276      Improvement Program shall be allocated to the three funding programs as follows:
             1277          (a) 8% to the Base Level Program;
             1278          (b) 46% to the Guarantee Program; and
             1279          (c) 46% to the Low Income Students Program.
             1280          (7) (a) To participate in the Base Level Program, a school district or charter school
             1281      shall submit a reading proficiency improvement plan to the State Board of Education as
             1282      provided in Subsection (4) and must receive approval of the plan from the board.
             1283          (b) (i) Each school district qualifying for Base Level Program funds and the qualifying
             1284      elementary charter schools combined shall receive a base amount.
             1285          (ii) The base amount for the qualifying elementary charter schools combined shall be
             1286      allocated among each school in an amount proportionate to:
             1287          (A) each existing charter school's prior year fall enrollment in grades kindergarten
             1288      through grade 3; and
             1289          (B) each new charter school's estimated fall enrollment in grades kindergarten through


             1290      grade 3.
             1291          (8) (a) A school district that applies for program [monies] money in excess of the Base
             1292      Level Program funds shall choose to first participate in either the Guarantee Program or the
             1293      Low Income Students Program.
             1294          (b) A school district must fully participate in either the Guarantee Program or the Low
             1295      Income Students Program before it may elect to either fully or partially participate in the other
             1296      program.
             1297          (c) To fully participate in the Guarantee Program, a school district shall[: (i) levy a tax
             1298      rate of .000056 under Section 53A-17a-151 ; (ii)] allocate to the program [other monies] money
             1299      available to the school district, except [monies] money provided by the state, equal to the
             1300      amount of revenue that would be generated by a tax rate of .000056[; or].
             1301          [(iii) levy a tax under Section 53A-17a-151 and allocate to the program other monies
             1302      available to the school district, except monies provided by the state, so that the total revenue
             1303      from the combined revenue sources equals the amount of revenue that would be generated by a
             1304      tax rate of .000056.]
             1305          (d) To fully participate in the Low Income Students Program, a school district shall[:
             1306      (i) levy a tax rate of .000065 under Section 53A-17a-151 ; (ii)] allocate to the program [other
             1307      monies] money available to the school district, except [monies] money provided by the state,
             1308      equal to the amount of revenue that would be generated by a tax rate of .000065[; or].
             1309          [(iii) levy a tax under Section 53A-17a-151 and allocate to the program other monies
             1310      available to the school district, except monies provided by the state, so that the total revenue
             1311      from the combined revenue sources equals the amount of revenue that would be generated by a
             1312      tax rate of .000065.]
             1313          (e) (i) The State Board of Education shall verify that a school district allocates the
             1314      money required in accordance with Subsections (8)(c) and (d) before it distributes funds in
             1315      accordance with this section.
             1316          (ii) The State Tax Commission shall provide the State Board of Education the
             1317      information the State Board of Education needs to comply with Subsection (8)(e)(I).


             1318          (9) (a) A school district that fully participates in the Guarantee Program shall receive
             1319      state funds in an amount that is:
             1320          (i) equal to the difference between $21 times the district's total WPUs and the revenue
             1321      the school district is required to [generate or] allocate under Subsection (8)(c) to fully
             1322      participate in the Guarantee Program; and
             1323          (ii) not less than $0.
             1324          (b) An elementary charter school shall receive under the Guarantee Program an amount
             1325      equal to $21 times the school's total WPUs.
             1326          (10) The State Board of Education shall distribute Low Income Students Program
             1327      funds in an amount proportionate to the number of students in each school district or charter
             1328      school who qualify for free or reduced price school lunch multiplied by two.
             1329          (11) A school district that partially participates in the Guarantee Program or Low
             1330      Income Students Program shall receive program funds based on the amount of district revenue
             1331      [generated for or] allocated to the program as a percentage of the amount of revenue that could
             1332      have been [generated or] allocated if the district had fully participated in the program.
             1333          (12) (a) Each school district and charter school shall use program [monies] money for
             1334      reading proficiency improvement in grades kindergarten through grade three.
             1335          (b) Program [monies] money may not be used to supplant funds for existing programs,
             1336      but may be used to augment existing programs.
             1337          (13) (a) Each school district and charter school shall annually submit a report to the
             1338      State Board of Education accounting for the expenditure of program [monies] money in
             1339      accordance with its plan for reading proficiency improvement.
             1340          (b) If a school district or charter school uses program [monies] money in a manner that
             1341      is inconsistent with Subsection (12), the school district or charter school is liable for
             1342      reimbursing the State Board of Education for the amount of program [monies] money
             1343      improperly used, up to the amount of program [monies] money received from the State Board
             1344      of Education.
             1345          (14) (a) The State Board of Education shall make rules to implement the program.


             1346          (b) (i) The rules under Subsection (14)(a) shall require each school district or charter
             1347      school to annually report progress in meeting goals stated in the district's or charter school's
             1348      plan for student reading proficiency as measured by gain scores.
             1349          (ii) If a school district or charter school does not meet or exceed the goals, the school
             1350      district or charter school shall prepare a new plan which corrects deficiencies. The new plan
             1351      must be approved by the State Board of Education before the school district or charter school
             1352      receives an allocation for the next year.
             1353          [(15) If after 36 months of program operation, a school district fails to meet goals
             1354      stated in the district's plan for student reading proficiency as measured by gain scores, the
             1355      school district shall terminate any levy imposed under Section 53A-17a-151 .]
             1356          Section 26. Section 53A-17a-151 is amended to read:
             1357           53A-17a-151. Board leeway for reading improvement.
             1358          (1) [Each] Except as provided in Subsection (4), a local school board may levy a tax
             1359      rate of up to .000121 per dollar of taxable value for funding the school district's K-3 Reading
             1360      Improvement Program created under Section 53A-17a-150 .
             1361          (2) The levy authorized under this section:
             1362          (a) is in addition to any other levy or maximum rate;
             1363          (b) does not require voter approval; and
             1364          (c) may be modified or terminated by a majority vote of the board.
             1365          (3) A local school board shall establish its board-approved levy under this section by
             1366      June 1 to have the levy apply to the fiscal year beginning July 1 in that same calendar year.
             1367          (4) Beginning January 1, 2012, a local school board may not levy a tax in accordance
             1368      with this section.
             1369          Section 27. Section 53A-17a-164 is enacted to read:
             1370          53A-17a-164. Board local levy -- State guarantee.
             1371          (1) Subject to the other requirements of this section, for a calendar year beginning on
             1372      or after January 1, 2012, a local school board may levy a tax to fund the school district's
             1373      general fund.


             1374          (2) (a) Except as provided in Subsection (2)(b), a tax rate imposed by a school district
             1375      pursuant to this section may not exceed .0018 per dollar of taxable value in any calendar year.
             1376          (b) A tax rate imposed by a school district pursuant to this section may not exceed
             1377      .0025 per dollar of taxable value in any calendar year if, during the calendar year beginning on
             1378      January 1, 2011, the school district's combined tax rate for the following levies was greater
             1379      than .0018 per dollar of taxable value:
             1380          (i) a recreation levy imposed under Section 11-2-7 ;
             1381          (ii) a transportation levy imposed under Section 53A-17a-127 ;
             1382          (iii) a board-authorized levy imposed under Section 53A-17a-134 ;
             1383          (iv) an impact aid levy imposed under Section 53A-17a-143 ;
             1384          (v) the portion of a 10% of basic levy imposed under Section 53A-17a-145 that is
             1385      budgeted for purposes other than capital outlay or debt service;
             1386          (vi) a reading levy imposed under Section 53A-17a-151 ; and
             1387          (vii) a tort liability levy imposed under Section 63G-1-704 .
             1388          (3) (a) In addition to the revenue a school district collects from the imposition of a levy
             1389      pursuant to this section, the state shall contribute an amount sufficient to guarantee that each
             1390      .0001 of the first .0004 per dollar of taxable value generates an amount equal to .010544 times
             1391      the value of the prior year's weighted pupil unit.
             1392          (b) (i) The amount of state guarantee money to which a school district would otherwise
             1393      be entitled to under this Subsection (3) may not be reduced for the sole reason that the district's
             1394      levy is reduced as a consequence of changes in the certified tax rate under Section 59-2-924
             1395      pursuant to changes in property valuation.
             1396          (ii) Subsection (3)(b)(i) applies for a period of five years following any changes in the
             1397      certified tax rate.
             1398          (4) A school district that imposes a board local levy in the calendar year beginning on
             1399      January 1, 2012, is exempt from the public notice and hearing requirements of Section
             1400      59-2-919 if the school district budgets an amount of ad valorem property tax revenue equal to
             1401      or less than the sum of the following amounts:


             1402          (a) the amount of revenue generated during the calendar year beginning on January 1,
             1403      2011, from the sum of the following levies of a school district:
             1404          (i) a recreation levy imposed under Section 11-2-7 ;
             1405          (ii) a transportation levy imposed under Section 53A-17a-127 ;
             1406          (iii) a board-authorized levy imposed under Section 53A-17a-134 ;
             1407          (iv) an impact aid levy imposed under Section 53A-17a-143 ;
             1408          (v) the portion of a 10% of basic levy imposed under Section 53A-17a-145 that is
             1409      budgeted for purposes other than capital outlay or debt service;
             1410          (vi) a reading levy imposed under Section 53A-17a-151 ; and
             1411          (vii) a tort liability levy imposed under Section 63G-1-704 ; and
             1412          (b) revenue from new growth as defined in Subsection 59-2-924 (4)(c).
             1413          Section 28. Section 53A-21-101.5 is amended to read:
             1414           53A-21-101.5. Definitions.
             1415          As used in this chapter:
             1416          (1) "ADM" or "pupil in average daily membership" is as defined in Section
             1417      53A-17a-103 .
             1418          (2) "Base tax effort rate" means the average of:
             1419          (a) the highest combined capital levy rate; and
             1420          (b) the average combined capital levy rate for the school districts statewide.
             1421          (3) "Combined capital levy rate" means a rate that includes the sum of the following
             1422      property tax levies:
             1423          (a) (i) the capital outlay levy authorized in Section 53A-16-107 ;
             1424          [(b)] (ii) the portion of the 10% of basic levy described in Section 53A-17a-145 that is
             1425      budgeted for debt service or capital outlay;
             1426          [(c)] (iii) the debt service levy authorized in Section 11-14-310 ; and
             1427          [(d)] (iv) the voted capital outlay leeway authorized in Section 53A-16-110 [.]; or
             1428          (b) (i) the capital local levy authorized in Section 53A-16-113 ; and
             1429          (ii) the debt service levy authorized in Section 11-14-310 .


             1430          (4) "Derived net taxable value" means the quotient of:
             1431          (a) the total property tax collections from April 1 through the following March 31 for a
             1432      school district for the calendar year preceding the March 31 date; divided by
             1433          (b) the school district's total tax rate for the calendar year preceding the March 31
             1434      referenced in Subsection (4)(a).
             1435          (5) "Highest combined capital levy rate" means the highest combined capital levy rate
             1436      imposed by a school district within the state for a fiscal year.
             1437          (6) "Property tax base per ADM" means the quotient of:
             1438          (a) a school district's derived net taxable value; divided by
             1439          (b) the school district's ADM.
             1440          (7) "Property tax yield per ADM" means:
             1441          (a) the product of:
             1442          (i) a school district's derived net taxable value; and
             1443          (ii) the base tax effort rate; divided by
             1444          (b) the school district's ADM.
             1445          (8) "Statewide average property tax base per ADM" means the quotient of:
             1446          (a) the sum of all school districts' derived net taxable value; divided by
             1447          (b) the sum of all school districts' ADM.
             1448          Section 29. Section 59-2-904 is amended to read:
             1449           59-2-904. Participation by district in state's contributions to state-supported levy
             1450      program.
             1451          (1) In addition to the basic state contribution provided in Section 59-2-902 , [each] a
             1452      school district may participate in the state's contributions to the state-supported [leeway] levy
             1453      program by conforming to the requirements of the Minimum School Program Act and by
             1454      making the required additional levy. [Each district shall participate]
             1455          (2) A school district that participates in the state-supported [leeway] levy program[,
             1456      and] shall certify to the State Board of Education the results of its determination and the
             1457      amount of [additional levy which] the board or voted local levy that the district will impose.


             1458          Section 30. Section 59-2-924 is amended to read:
             1459           59-2-924. Report of valuation of property to county auditor and commission --
             1460      Transmittal by auditor to governing bodies -- Certified tax rate -- Calculation of certified
             1461      tax rate -- Rulemaking authority -- Adoption of tentative budget.
             1462          (1) Before June 1 of each year, the county assessor of each county shall deliver to the
             1463      county auditor and the commission the following statements:
             1464          (a) a statement containing the aggregate valuation of all taxable real property assessed
             1465      by a county assessor in accordance with Part 3, County Assessment, for each taxing entity; and
             1466          (b) a statement containing the taxable value of all personal property assessed by a
             1467      county assessor in accordance with Part 3, County Assessment, from the prior year end values.
             1468          (2) The county auditor shall, on or before June 8, transmit to the governing body of
             1469      each taxing entity:
             1470          (a) the statements described in Subsections (1)(a) and (b);
             1471          (b) an estimate of the revenue from personal property;
             1472          (c) the certified tax rate; and
             1473          (d) all forms necessary to submit a tax levy request.
             1474          (3) (a) The "certified tax rate" means a tax rate that will provide the same ad valorem
             1475      property tax revenues for a taxing entity as were budgeted by that taxing entity for the prior
             1476      year.
             1477          (b) For purposes of this Subsection (3):
             1478          (i) "Ad valorem property tax revenues" do not include:
             1479          (A) interest;
             1480          (B) penalties; and
             1481          (C) revenue received by a taxing entity from personal property that is:
             1482          (I) assessed by a county assessor in accordance with Part 3, County Assessment; and
             1483          (II) semiconductor manufacturing equipment.
             1484          (ii) "Aggregate taxable value of all property taxed" means:
             1485          (A) the aggregate taxable value of all real property assessed by a county assessor in


             1486      accordance with Part 3, County Assessment, for the current year;
             1487          (B) the aggregate taxable year end value of all personal property assessed by a county
             1488      assessor in accordance with Part 3, County Assessment, for the prior year; and
             1489          (C) the aggregate taxable value of all real and personal property assessed by the
             1490      commission in accordance with Part 2, Assessment of Property, for the current year.
             1491          (c) (i) Except as otherwise provided in this section, the certified tax rate shall be
             1492      calculated by dividing the ad valorem property tax revenues budgeted for the prior year by the
             1493      taxing entity by the amount calculated under Subsection (3)(c)(ii).
             1494          (ii) For purposes of Subsection (3)(c)(i), the legislative body of a taxing entity shall
             1495      calculate an amount as follows:
             1496          (A) calculate for the taxing entity the difference between:
             1497          (I) the aggregate taxable value of all property taxed; and
             1498          (II) any redevelopment adjustments for the current calendar year;
             1499          (B) after making the calculation required by Subsection (3)(c)(ii)(A), calculate an
             1500      amount determined by increasing or decreasing the amount calculated under Subsection
             1501      (3)(c)(ii)(A) by the average of the percentage net change in the value of taxable property for the
             1502      equalization period for the three calendar years immediately preceding the current calendar
             1503      year;
             1504          (C) after making the calculation required by Subsection (3)(c)(ii)(B), calculate the
             1505      product of:
             1506          (I) the amount calculated under Subsection (3)(c)(ii)(B); and
             1507          (II) the percentage of property taxes collected for the five calendar years immediately
             1508      preceding the current calendar year; and
             1509          (D) after making the calculation required by Subsection (3)(c)(ii)(C), calculate an
             1510      amount determined by subtracting from the amount calculated under Subsection (3)(c)(ii)(C)
             1511      any new growth as defined in this section:
             1512          (I) within the taxing entity; and
             1513          (II) for the following calendar year:


             1514          (Aa) for new growth from real property assessed by a county assessor in accordance
             1515      with Part 3, County Assessment and all property assessed by the commission in accordance
             1516      with Section 59-2-201 , the current calendar year; and
             1517          (Bb) for new growth from personal property assessed by a county assessor in
             1518      accordance with Part 3, County Assessment, the prior calendar year.
             1519          (iii) For purposes of Subsection (3)(c)(ii)(A), the aggregate taxable value of all
             1520      property taxed:
             1521          (A) except as provided in Subsection (3)(c)(iii)(B) or (3)(c)(ii)(C), is as defined in
             1522      Subsection (3)(b)(ii);
             1523          (B) does not include the total taxable value of personal property contained on the tax
             1524      rolls of the taxing entity that is:
             1525          (I) assessed by a county assessor in accordance with Part 3, County Assessment; and
             1526          (II) semiconductor manufacturing equipment; and
             1527          (C) for personal property assessed by a county assessor in accordance with Part 3,
             1528      County Assessment, the taxable value of personal property is the year end value of the personal
             1529      property contained on the prior year's tax rolls of the entity.
             1530          (iv) For purposes of Subsection (3)(c)(ii)(B), for calendar years beginning on or after
             1531      January 1, 2007, the value of taxable property does not include the value of personal property
             1532      that is:
             1533          (A) within the taxing entity assessed by a county assessor in accordance with Part 3,
             1534      County Assessment; and
             1535          (B) semiconductor manufacturing equipment.
             1536          (v) For purposes of Subsection (3)(c)(ii)(C)(II), for calendar years beginning on or after
             1537      January 1, 2007, the percentage of property taxes collected does not include property taxes
             1538      collected from personal property that is:
             1539          (A) within the taxing entity assessed by a county assessor in accordance with Part 3,
             1540      County Assessment; and
             1541          (B) semiconductor manufacturing equipment.


             1542          (vi) For purposes of Subsection (3)(c)(ii)(B), for calendar years beginning on or after
             1543      January 1, 2009, the value of taxable property does not include the value of personal property
             1544      that is within the taxing entity assessed by a county assessor in accordance with Part 3, County
             1545      Assessment.
             1546          (vii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
             1547      the commission may prescribe rules for calculating redevelopment adjustments for a calendar
             1548      year.
             1549          (viii) (A) (I) For purposes of Subsection (3)(c)(i), for a calendar year beginning on or
             1550      after January 1, 2010, a taxing entity's ad valorem property tax revenues budgeted for the prior
             1551      year shall be decreased by an amount of revenue equal to the five-year average of the most
             1552      recent prior five years of redemptions as reported on the county treasurer's final annual
             1553      settlement required under Subsection 59-2-1365 (2).
             1554          (II) A decrease under Subsection (3)(c)(viii)(A)(I) does not apply to the multicounty
             1555      assessing and collecting levy authorized in Subsection 59-2-1602 (2)(a), the certified revenue
             1556      levy, or the minimum basic tax rate established in Section 53A-17a-135 .
             1557          (B) For the calendar year beginning on January 1, 2010 and ending on December 31,
             1558      2010, a taxing entity is exempt from the notice and public hearing provisions of Section
             1559      59-2-919 if the taxing entity budgets an increased amount of ad valorem property tax revenue
             1560      equal to or less than the taxing entity's five-year average of the most recent prior five years of
             1561      redemptions as reported on the county treasurer's final annual settlement required under
             1562      Subsection 59-2-1365 (2).
             1563          (d) (i) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
             1564      the commission shall make rules determining the calculation of ad valorem property tax
             1565      revenues budgeted by a taxing entity.
             1566          (ii) For purposes of Subsection (3)(d)(i), ad valorem property tax revenues budgeted by
             1567      a taxing entity shall be calculated in the same manner as budgeted property tax revenues are
             1568      calculated for purposes of Section 59-2-913 .
             1569          (e) The certified tax rates for the taxing entities described in this Subsection (3)(e) shall


             1570      be calculated as follows:
             1571          (i) except as provided in Subsection (3)(e)(ii), for new taxing entities the certified tax
             1572      rate is zero;
             1573          (ii) for each municipality incorporated on or after July 1, 1996, the certified tax rate is:
             1574          (A) in a county of the first, second, or third class, the levy imposed for municipal-type
             1575      services under Sections 17-34-1 and 17-36-9 ; and
             1576          (B) in a county of the fourth, fifth, or sixth class, the levy imposed for general county
             1577      purposes and such other levies imposed solely for the municipal-type services identified in
             1578      Section 17-34-1 and Subsection 17-36-3 (22); and
             1579          (iii) for debt service voted on by the public, the certified tax rate shall be the actual
             1580      levy imposed by that section, except that the certified tax rates for the following levies shall be
             1581      calculated in accordance with Section 59-2-913 and this section:
             1582          (A) school [leeways] levies provided for under Sections [ 11-2-7 , 53A-16-110 ,
             1583      53A-17a-127 , 53A-17a-133 , 53A-17a-134 , 53A-17a-143 , and 53A-17a-145 ] 53A-16-113 ,
             1584      53A-17a-133 , and 53A-17a-164 ; and
             1585          (B) levies to pay for the costs of state legislative mandates or judicial or administrative
             1586      orders under Section 59-2-1604 .
             1587          (f) (i) A judgment levy imposed under Section 59-2-1328 or 59-2-1330 shall be
             1588      established at that rate which is sufficient to generate only the revenue required to satisfy one
             1589      or more eligible judgments, as defined in Section 59-2-102 .
             1590          (ii) The ad valorem property tax revenue generated by the judgment levy shall not be
             1591      considered in establishing the taxing entity's aggregate certified tax rate.
             1592          (g) The ad valorem property tax revenue generated by the capital [outlay] local levy
             1593      described in Section [ 53A-16-107 ] 53A-16-113 within a taxing entity in a county of the first
             1594      class:
             1595          (i) may not be considered in establishing the school district's aggregate certified tax
             1596      rate; and
             1597          (ii) shall be included by the commission in establishing a certified tax rate for that


             1598      capital outlay levy determined in accordance with the calculation described in Subsection
             1599      59-2-913 (3).
             1600          (4) (a) For the purpose of calculating the certified tax rate, the county auditor shall use:
             1601          (i) the taxable value of real property assessed by a county assessor contained on the
             1602      assessment roll;
             1603          (ii) the taxable value of real and personal property assessed by the commission; and
             1604          (iii) the taxable year end value of personal property assessed by a county assessor
             1605      contained on the prior year's assessment roll.
             1606          (b) For purposes of Subsection (4)(a)(i), the taxable value of real property on the
             1607      assessment roll does not include new growth as defined in Subsection (4)(c).
             1608          (c) "New growth" means:
             1609          (i) the difference between the increase in taxable value of the following property of the
             1610      taxing entity from the previous calendar year to the current year:
             1611          (A) real property assessed by a county assessor in accordance with Part 3, County
             1612      Assessment; and
             1613          (B) property assessed by the commission under Section 59-2-201 ; plus
             1614          (ii) the difference between the increase in taxable year end value of personal property
             1615      of the taxing entity from the year prior to the previous calendar year to the previous calendar
             1616      year; minus
             1617          (iii) the amount of an increase in taxable value described in Subsection (4)(e).
             1618          (d) For purposes of Subsection (4)(c)(ii), the taxable value of personal property of the
             1619      taxing entity does not include the taxable value of personal property that is:
             1620          (i) contained on the tax rolls of the taxing entity if that property is assessed by a county
             1621      assessor in accordance with Part 3, County Assessment; and
             1622          (ii) semiconductor manufacturing equipment.
             1623          (e) Subsection (4)(c)(iii) applies to the following increases in taxable value:
             1624          (i) the amount of increase to locally assessed real property taxable values resulting
             1625      from factoring, reappraisal, or any other adjustments; or


             1626          (ii) the amount of an increase in the taxable value of property assessed by the
             1627      commission under Section 59-2-201 resulting from a change in the method of apportioning the
             1628      taxable value prescribed by:
             1629          (A) the Legislature;
             1630          (B) a court;
             1631          (C) the commission in an administrative rule; or
             1632          (D) the commission in an administrative order.
             1633          (f) For purposes of Subsection (4)(a)(ii), the taxable year end value of personal
             1634      property on the prior year's assessment roll does not include:
             1635          (i) new growth as defined in Subsection (4)(c); or
             1636          (ii) the total taxable year end value of personal property contained on the prior year's
             1637      tax rolls of the taxing entity that is:
             1638          (A) assessed by a county assessor in accordance with Part 3, County Assessment; and
             1639          (B) semiconductor manufacturing equipment.
             1640          (5) (a) On or before June 22, each taxing entity shall annually adopt a tentative budget.
             1641          (b) If the taxing entity intends to exceed the certified tax rate, it shall notify the county
             1642      auditor of:
             1643          (i) its intent to exceed the certified tax rate; and
             1644          (ii) the amount by which it proposes to exceed the certified tax rate.
             1645          (c) The county auditor shall notify property owners of any intent to levy a tax rate that
             1646      exceeds the certified tax rate in accordance with Sections 59-2-919 and 59-2-919.1 .
             1647          Section 31. Section 59-2-924.3 is amended to read:
             1648           59-2-924.3. Adjustment of the calculation of the certified tax rate for a school
             1649      district imposing a capital outlay levy in a county of the first class.
             1650          (1) As used in this section:
             1651          (a) "Capital [outlay] local levy increment" means the amount of revenue equal to the
             1652      difference between:
             1653          (i) the amount of revenue generated by a levy of .0006 per dollar of taxable value


             1654      within a school district during a fiscal year; and
             1655          (ii) the amount of revenue the school district received during the same fiscal year from
             1656      the distribution described in [Subsection 53A-16-107.1 (1)] Section 53A-16-114 .
             1657          (b) "Contributing school district" means a school district in a county of the first class
             1658      that in a fiscal year receives less revenue from the distribution described in [Subsection
             1659      53A-16-107.1 (1)] Section 53A-16-114 than it would have received during the same fiscal year
             1660      from a levy imposed within the school district of .0006 per dollar of taxable value.
             1661          (c) "Receiving school district" means a school district in a county of the first class that
             1662      in a fiscal year receives more revenue from the distribution described in [Subsection
             1663      53A-16-107.1 (1)] Section 53A-16-114 than it would have received during the same fiscal year
             1664      from a levy imposed within the school district of .0006 per dollar of taxable value.
             1665          [(2) For fiscal year 2009-10, a receiving school district shall decrease its capital outlay
             1666      certified tax rate under Subsection 59-2-924 (3)(g)(ii) by an amount required to offset the
             1667      receiving school district's estimated capital outlay increment for the current fiscal year.]
             1668          [(3) Beginning with fiscal year 2010-11, a]
             1669          (2) A receiving school district shall decrease its capital [outlay] local levy certified tax
             1670      rate under Subsection 59-2-924 (3)(g)(ii) by the amount required to offset the receiving school
             1671      district's [capital outlay] estimated capital local levy increment for the prior fiscal year.
             1672          [(4) For fiscal year 2009-10, a contributing school district is exempt from the notice
             1673      and public hearing provisions of Section 59-2-919 for the school district's capital outlay levy
             1674      certified tax rate calculated pursuant to Subsection 59-2-924 (3)(g)(ii) if:]
             1675          [(a) the contributing school district budgets an increased amount of ad valorem
             1676      property tax revenue exclusive of new growth as defined in Subsection 59-2-924 (4) for the
             1677      capital outlay levy described in Section 53A-16-107 ; and]
             1678          [(b) the increased amount of ad valorem property tax revenue described in Subsection
             1679      (4)(a) is less than or equal to that contributing school district's estimated capital outlay
             1680      increment for the current fiscal year.]
             1681          [(5) Beginning with fiscal year 2010-11, a contributing school district is exempt from


             1682      the notice and public hearing provisions of Section 59-2-919 for the school district's capital
             1683      outlay levy certified tax rate calculated pursuant to Subsection 59-2-924 (3)(g)(ii) if:]
             1684          [(a) the contributing school district budgets an increased amount of ad valorem
             1685      property tax revenue exclusive of new growth as defined in Subsection 59-2-924 (4) for the
             1686      capital outlay levy described in Section 53A-16-107 ; and]
             1687          [(b) the increased amount of ad valorem property tax revenue described in Subsection
             1688      (5)(a) is less than or equal to that contributing school district's capital outlay increment for the
             1689      prior year.]
             1690          [(6) Beginning with fiscal year 2011-12, a]
             1691          (3) A contributing school district is exempt from the notice and public hearing
             1692      provisions of Section 59-2-919 for the school district's capital [outlay] local levy certified tax
             1693      rate calculated pursuant to Subsection 59-2-924 (3)(g)(ii) if:
             1694          (a) the contributing school district budgets an increased amount of ad valorem property
             1695      tax revenue exclusive of new growth as defined in Subsection 59-2-924 (4) for the capital
             1696      [outlay] local levy described in Section [ 53A-16-107 ] 53A-16-113 ; and
             1697          (b) the increased amount of ad valorem property tax revenue described in Subsection
             1698      [(6)] (3)(a) is less than or equal to the difference between:
             1699          (i) the amount of revenue generated by a levy of .0006 per dollar of taxable value
             1700      imposed within the contributing school district during the current taxable year; and
             1701          (ii) the amount of revenue generated by a levy of .0006 per dollar of taxable value
             1702      imposed within the contributing school district during the prior taxable year.
             1703          [(7)] (4) Regardless of the amount a school district receives from the revenue collected
             1704      from the .0006 portion of the capital [outlay] local levy required in [Subsection
             1705      53A-16-107 (3)] Section 53A-16-113 , the revenue generated within the school district from the
             1706      .0006 portion of the capital [outlay] local levy required in [Subsection 53A-16-107 (3)] Section
             1707      53A-16-113 shall be considered to be budgeted ad valorem property tax revenues of the school
             1708      district that levies the .0006 portion of the capital [outlay] local levy for purposes of calculating
             1709      the school district's certified tax rate in accordance with Subsection 59-2-924 (3)(g)(ii).


             1710          Section 32. Section 59-2-924.4 is amended to read:
             1711           59-2-924.4. Adjustment of the calculation of the certified tax rate for certain
             1712      divided school districts.
             1713          (1) As used in this section:
             1714          (a) "Capital [outlay] local levy increment" means the amount of revenue equal to the
             1715      difference between:
             1716          (i) the amount of revenue generated by a levy of .0006 per dollar of taxable value
             1717      within a qualifying divided school district during a fiscal year; and
             1718          (ii) the amount of revenue the qualifying divided school district received during the
             1719      same fiscal year from the distribution described in Section 53A-2-118.3 .
             1720          (b) "Contributing divided school district" means a school district located within a
             1721      qualifying divided school district that in a fiscal year receives less revenue from the distribution
             1722      described in Section 53A-2-118.3 than it would have received during the same fiscal year from
             1723      a levy imposed within the school district of .0006 per dollar of taxable value.
             1724          (c) "Divided school district" means a school district from which a new school district is
             1725      created.
             1726          (d) "New school district" means a school district:
             1727          (i) created under Section 53A-2-118.1 ;
             1728          (ii) that begins to provide educational services after July 1, 2008; and
             1729          (iii) located in a qualifying divided school district.
             1730          (e) "Qualifying divided school district" means a divided school district:
             1731          (i) located within a county of the second through sixth class; and
             1732          (ii) with a new school district created under Section 53A-2-118.1 that begins to provide
             1733      educational services after July 1, 2008.
             1734          (f) "Qualifying fiscal year" means the first fiscal year that a new school district begins
             1735      to provide educational services.
             1736          (g) "Receiving divided school district" means a school district located within a
             1737      qualifying divided school district that in a fiscal year receives more revenue from the


             1738      distribution described in Section 53A-2-118.3 than it would have received during the same
             1739      fiscal year from a levy imposed within the school district of .0006 per dollar of taxable value.
             1740          (2) A receiving divided school district shall decrease its certified tax rate calculated in
             1741      accordance with Section 59-2-924 by the amount required to offset the receiving divided
             1742      school district's capital [outlay] local levy increment for the prior fiscal year.
             1743          (3) Beginning with the fiscal year after the qualifying fiscal year, a contributing divided
             1744      school district is exempt from the notice and public hearing provisions of Section 59-2-919 for
             1745      the contributing divided school district's certified tax rate calculated pursuant to Section
             1746      59-2-924 if:
             1747          (a) the contributing divided school district budgets an increased amount of ad valorem
             1748      property tax revenue exclusive of new growth as defined in Subsection 59-2-924 (4) for the
             1749      capital [outlay] local levy required in Section 53A-2-118.3 ; and
             1750          (b) the increased amount of ad valorem property tax revenue described in Subsection
             1751      (3)(a) is less than or equal to that contributing divided school district's capital [outlay] local
             1752      levy increment for the prior year.
             1753          (4) Beginning with the fiscal year that is two years after the qualifying fiscal year, a
             1754      contributing divided school district is exempt from the notice and public hearing provisions of
             1755      Section 59-2-919 for the contributing divided school district's certified tax rate calculated
             1756      pursuant to Section 59-2-924 if:
             1757          (a) the contributing divided school district budgets an increased amount of ad valorem
             1758      property tax revenue exclusive of new growth as defined in Subsection 59-2-924 (4) for the
             1759      capital [outlay] local levy described in Section 53A-2-118.3 ; and
             1760          (b) the increased amount of ad valorem property tax revenue described in Subsection
             1761      (4)(a) is less than or equal to the difference between:
             1762          (i) the amount of revenue generated by a levy of .0006 per dollar of taxable value
             1763      imposed within the contributing divided school district during the current taxable year; and
             1764          (ii) the amount of revenue generated by a levy of .0006 per dollar of taxable value
             1765      imposed within the contributing divided school district during the prior taxable year.


             1766          (5) Regardless of the amount a school district receives from the revenue collected from
             1767      the .0006 portion of the capital [outlay] local levy described in Section 53A-2-118.3 , the
             1768      revenue generated within the school district from the .0006 portion of the capital [outlay] local
             1769      levy described in Section 53A-2-118.3 shall be considered to be budgeted ad valorem property
             1770      tax revenues of the school district that levies the .0006 portion of the capital [outlay] local levy
             1771      for purposes of calculating the school district's certified tax rate in accordance with Section
             1772      59-2-924 .
             1773          Section 33. Section 63G-7-704 is amended to read:
             1774           63G-7-704. Tax levy by political subdivisions for payment of claims, judgments,
             1775      or insurance premiums.
             1776          (1) Notwithstanding any provision of law to the contrary, a political subdivision may
             1777      levy an annual property tax sufficient to pay:
             1778          (a) any claim, settlement, or judgment;
             1779          (b) the costs to defend against any claim, settlement, or judgment; or
             1780          (c) for the establishment and maintenance of a reserve fund for the payment of claims,
             1781      settlements, or judgments that may be reasonably anticipated.
             1782          (2) (a) The payments authorized to pay for punitive damages or to pay the premium for
             1783      authorized insurance is money spent for a public purpose within the meaning of this section
             1784      and Article XIII, Sec. 5, Utah Constitution, even though, as a result of the levy, the maximum
             1785      levy as otherwise restricted by law is exceeded.
             1786          (b) No levy under this section may exceed .0001 per dollar of taxable value of taxable
             1787      property.
             1788          (c) The revenues derived from this levy may not be used for any purpose other than
             1789      those specified in this section.
             1790          (3) Beginning January 1, 2012, a local school board may not levy a tax in accordance
             1791      with this section.
             1792          Section 34. Section 63I-1-253 is amended to read:
             1793           63I-1-253. Repeal dates, Titles 53, 53A, and 53B.


             1794          The following provisions are repealed on the following dates:
             1795          (1) Section 53-3-232 , Conditional licenses, is repealed July 1, 2015.
             1796          (2) Title 53A, Chapter 1a, Part 6, Public Education Job Enhancement Program is
             1797      repealed July 1, 2020.
             1798          (3) Title 53A, Chapter 1a, Part 9, Voluntary Extended-day Kindergarten Program, is
             1799      repealed July 1, 2011.
             1800          (4) Section 53A-2-118.3 is repealed December 31, 2016.
             1801          (5) The State Instructional Materials Commission, created in Section 53A-14-101 , is
             1802      repealed July 1, 2011.
             1803          (6) Subsections [ 53A-16-107 (3) and (4)] 53A-16-113 (3) and (4) are repealed
             1804      December 31, 2016.
             1805          (7) Section [ 53A-16-107.1 ] 53A-16-114 is repealed December 31, 2016.
             1806          (8) Section 53A-17a-163 , Performance-based Compensation Pilot Program is repealed
             1807      July 1, 2011.
             1808          (9) Subsection 53C-3-203 (5), which provides for the distribution of money from the
             1809      Land Exchange Distribution Account to the Geological Survey for test wells, other hydrologic
             1810      studies, and air quality monitoring in the West Desert, is repealed July 1, 2020.
             1811          Section 35. Repealer.
             1812          This bill repeals:
             1813          Section 53A-16-111, Payment of judgments and warrants -- Special tax.
             1814          Section 36. Effective date.
             1815          (1) Except as provided in Subsection (2), this bill takes effect on January 1, 2012.
             1816          (2) The amendments to the following sections take effect on July 1, 2012:
             1817          (a) Section 53A-2-206 ;
             1818          (b) Section 53A-17a-105 ;
             1819          (c) Section 53A-17a-146 ; and
             1820          (d) Section 53A-17a-150 .


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