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UTAH STATE SENATE

UTAH STATE CAPITOL COMPLEX * 320 STATE CAPITOL

P.O. BOX 145115 * SALT LAKE CITY, UTAH 84114-5115 * (801) 538-1035

        February 4, 2013

Mr. President:

    The Education Committee reports a favorable recommendation on S.B. 151, AUTHORIZATION OF CHARTER SCHOOLS BY HIGHER EDUCATION INSTITUTIONS, by Senator J. S. Adams, with the following amendments:

1.    Page 1, Line 20 :    

             20      applications;

{   and   }       

    . modifies an annual fee for payment of a board of trustee's costs in providing oversight and technical support to a charter school; and  


2.    Page 1, Line 25 :    

             25          
{   None   }        This bill provides an immediate effective date.      


3.    Page 4, Lines 117 through 120 :    

             117      Subsection (6)(a) may not exceed the product of
{   :

             118          (i)  
}
3% of the revenue the charter school receives from the state in the current fiscal
             119      year
{   ; and

             120          (ii) the October 1 enrollment count of the charter school for the current fiscal

year   } .

4.    Page 5, Lines 122 through 125 :    

             122      described in Subsection (6)(a) may not exceed the product of

{   :

             123          (i)  
}
1% of the revenue a charter school receives from the state in the current fiscal year
{   ;

             124      and
             125          (ii) the October 1 enrollment count of the charter school for the current fiscal year  
}
.

5.    Page 5, Line 151 :    

             151      policy governing the procedures or criteria described in Subsection (8)(a).
 

    Section 3. Effective date.
    If approved by two-thirds of all the members elected to each house, this bill takes effect upon approval by the governor, or the day following the constitutional time limit of Utah Constitution Article VII, Section 8, without the governor's signature, or in the case of a veto, the date of veto override.  


6.    Page 1, Line 17 :    

             17      a charter school;
  and      


7.    Page 1, Lines 20 through 21 :    

             20      applications
{   ; and

             21          .    prohibits a higher education institution from operating a charter school  
}
.

8.    Page 1, Line 28 :    

             28          
{   53A-1a-518, as last amended by Laws of Utah 2010, Chapter 162   }


9.    Page 2, Line 32 through Page 3, Line 80 :    

             32          
{   Section 1. Section 53A-1a-518 is amended to read:

             33          53A-1a-518. Regulated transactions and relationships -- Definitions -- Entities
             34      prohibited from operating a charter school.
             35          (1) As used in this section:
             36          (a) "Charter school officer" means:
             37          (i) a member of a charter school's governing board;
             38          (ii) a member of a board or an officer of a nonprofit corporation under which a charter
             39      school is organized and managed; or
             40          (iii) the chief administrative officer of a charter school.
             41          (b) (i) "Employment" means a position in which a person's salary, wages, pay, or
             42      compensation, whether as an employee or contractor, is paid from charter school funds.
             43          (ii) "Employment" does not include a charter school volunteer.
             44          (c) "Relative" means a father, mother, husband, wife, son, daughter, sister, brother,
             45      uncle, aunt, nephew, niece, first cousin, mother-in-law, father-in-law, brother-in-law,
             46      sister-in-law, son-in-law, or daughter-in-law.
             47          (2) (a) Except as provided in Subsection (2)(b), a relative of a charter school officer
             48      may not be employed at a charter school.
             49          (b) If a relative of a charter school officer is to be considered for employment in a
             50      charter school, the charter school officer shall:
             51          (i) disclose the relationship, in writing, to the other charter school officers;
             52          (ii) submit the employment decision to the charter school's governing board for the
             53      approval, by majority vote, of the charter school's governing board;
             54          (iii) abstain from voting on the issue; and


             55          (iv) be absent from any meeting when the employment is being considered and
             56      determined.
             57          (3) (a) Except as provided in Subsections (3)(b) and (3)(c), a charter school officer or a
             58      relative of a charter school officer may not have a financial interest in a contract or other
             59      transaction involving a charter school in which the charter school officer serves as a charter
             60      school officer.
             61          (b) If a charter school's governing board considers entering into a contract or executing
             62      a transaction in which a charter school officer or a relative of a charter school officer has a
             63      financial interest, the charter school officer shall:
             64          (i) disclose the financial interest, in writing, to the other charter school officers;
             65          (ii) submit the contract or transaction decision to the charter school's governing board
             66      for the approval, by majority vote, of the charter school's governing board;
             67          (iii) abstain from voting on the issue; and
             68          (iv) be absent from any meeting when the contract or transaction is being considered
             69      and determined.
             70          (c) The provisions in Subsection (3)(a) do not apply to a reasonable contract of
             71      employment for:
             72          (i) the chief administrative officer of a charter school; or
             73          (ii) a relative of the chief administrative officer of a charter school whose employment
             74      is approved in accordance with the provisions in Subsection (2).
             75          (4) The [State Board of Education or State Charter School Board] following entities
             76      may not operate a charter school[.]:
             77          (a) the State Board of Education;
             78          (b) the State Charter School Board; and


             79          (c) a higher education institution listed in Section 53B-2-101 .
             80          Section 2  
}
  Section 1       . Section 53A-1a-521 is amended to read:


        Respectfully,

        Stuart C. Reid
        Committee Chair

Voting: 6-0-2
3 SB0151.SC1.wpd anicholson/AMN AOS/CCS 2/4/13 6:11 pm


Bill Number
Action Class
Action Code

*SB0151*
*S*
*SCRAMD*

SB0151
S
SCRAMD