Representative Bradley G. Last proposes the following substitute bill:


1     
FUNDING FOR EDUCATION SYSTEMS AMENDMENTS

2     
2017 GENERAL SESSION

3     
STATE OF UTAH

4     
Chief Sponsor: Howard A. Stephenson

5     
House Sponsor: Bradley G. Last

6     

7     LONG TITLE
8     General Description:
9          This bill amends and enacts provisions related to education funding.
10     Highlighted Provisions:
11          This bill:
12          ▸     defines terms;
13          ▸     directs the Legislature to annually appropriate money to increase the number of
14     guaranteed local levy increments;
15          ▸     directs the State Board of Education to use the appropriation to increase:
16               •     the number of guaranteed local levy increments, giving first priority to
17     guarantee board local levy increments and second priority to guarantee voted
18     local levy increments; and
19               •     the guaranteed amount for each local levy increment per weighted pupil unit
20     after increasing the number of guaranteed local levy increments;
21          ▸     directs a local school board to use funds received from the state local levy guarantee
22     for a public education purpose;
23          ▸     recodifies and enacts language governing:
24               •     a voted local levy;
25               •     the use of guaranteed local levy increments; and

26               •     a board local levy;
27          ▸     amends the calculation of the school minimum basic tax rate;
28          ▸     exempts in certain circumstances the school minimum basic tax rate from certain
29     public notice requirements;
30          ▸     establishes the Local Levy Growth Account; and
31          ▸     makes technical and conforming changes.
32     Money Appropriated in this Bill:
33          This bill appropriates:
34          ▸     to the Education Fund Restricted -- Local Levy Growth Account, as an ongoing
35     appropriation:
36               •     from the Education Fund, $22,000,000;     
37          ▸     to the State Board of Education -- Minimum School Program -- Basic School
38     Program, as an ongoing appropriation:
39               •     from the Education Fund, ($22,000,000); and
40               •     from Local Revenue, $22,000,000; and     
41          ▸     to the State Board of Education -- Minimum School Program -- Voted and Board
42     Local Levy Programs, as an ongoing appropriation:
43               •     from the Education Fund Restricted -- Local Levy Growth Account,
44     $22,000,000.
45     Other Special Clauses:
46          This bill provides retrospective operation.
47     Utah Code Sections Affected:
48     AMENDS:
49          53A-1a-513, as last amended by Laws of Utah 2016, Chapter 229
50          53A-2-206, as last amended by Laws of Utah 2012, Chapter 398
51          53A-17a-105, as last amended by Laws of Utah 2016, Chapter 229
52          53A-17a-133, as last amended by Laws of Utah 2016, Chapters 2, 350, and 367
53          53A-17a-134, as last amended by Laws of Utah 2013, Chapter 178
54          53A-17a-135, as last amended by Laws of Utah 2016, Chapter 2
55          53A-17a-135.1, as enacted by Laws of Utah 2015, Chapter 287
56          53A-17a-136, as last amended by Laws of Utah 2011, Chapter 371

57          53A-17a-146, as last amended by Laws of Utah 2011, Chapters 371 and 381
58          53A-17a-164, as last amended by Laws of Utah 2016, Chapters 229, 350, and 367
59          53A-19-102, as last amended by Laws of Utah 2016, Chapter 363
60     ENACTS:
61          53A-17a-133.5, Utah Code Annotated 1953
62          53A-17a-135.2, Utah Code Annotated 1953
63     

64     Be it enacted by the Legislature of the state of Utah:
65          Section 1. Section 53A-1a-513 is amended to read:
66          53A-1a-513. Funding for charter schools.
67          (1) As used in this section:
68          (a) "Basic program" means the same as that term is defined in Section 53A-17a-103.
69          [(c)] (b) "Charter school levy per pupil revenues" means the same as that term is
70     defined in Section 53A-1a-513.1.
71          [(b)] (c) "Charter school students' average local revenues" means the amount
72     determined as follows:
73          (i) for each student enrolled in a charter school on the previous October 1, calculate the
74     district per pupil local revenues of the school district in which the student resides;
75          (ii) sum the district per pupil local revenues for each student enrolled in a charter
76     school on the previous October 1; and
77          (iii) divide the sum calculated under Subsection (1)(b)(ii) by the number of students
78     enrolled in charter schools on the previous October 1.
79          (d) "District local property tax revenues" means the sum of a school district's revenue
80     received from the following:
81          (i) a voted local levy imposed under Section 53A-17a-133;
82          (ii) a board local levy imposed under Section 53A-17a-164, excluding revenues
83     expended for:
84          (A) pupil transportation, up to the amount of revenue generated by a .0003 per dollar of
85     taxable value of the school district's board local levy; and
86          (B) the K-3 Reading Improvement Program, up to the amount of revenue generated by
87     a .000121 per dollar of taxable value of the school district's board local levy;

88          (iii) a capital local levy imposed under Section 53A-16-113; and
89          (iv) a guarantee described in Section [53A-17a-133, 53A-17a-164] 53A-17a-133.5,
90     53A-21-202, or 53A-21-302.
91          (e) "District per pupil local revenues" means, using data from the most recently
92     published school district annual financial reports and state superintendent's annual report, an
93     amount equal to district local property tax revenues divided by the sum of:
94          (i) a school district's average daily membership; and
95          (ii) the average daily membership of a school district's resident students who attend
96     charter schools.
97          (f) "Resident student" means a student who is considered a resident of the school
98     district under [Title 53A], Chapter 2, Part 2, District of Residency.
99          (g) "Statewide average debt service revenues" means the amount determined as
100     follows, using data from the most recently published state superintendent's annual report:
101          (i) sum the revenues of each school district from the debt service levy imposed under
102     Section 11-14-310; and
103          (ii) divide the sum calculated under Subsection (1)(g)(i) by statewide school district
104     average daily membership.
105          (2) (a) Charter schools shall receive funding as described in this section, except
106     Subsections (3) through (8) do not apply to charter schools described in Subsection (2)(b).
107          (b) Charter schools authorized by local school boards that are converted from district
108     schools or operate in district facilities without paying reasonable rent shall receive funding as
109     prescribed in Section 53A-1a-515.
110          (3) (a) Except as provided in Subsections (3)(b) and (3)(c), a charter school shall
111     receive state funds, as applicable, on the same basis as a school district receives funds.
112          (b) For the 2015-16 school year, the number of weighted pupil units assigned to a
113     charter school for the kindergarten and grades 1 through 12 programs of the Basic School
114     Program shall be:
115          (i) based on the higher of:
116          (A) October 1 enrollment in the current school year; or
117          (B) average daily membership in the prior school year plus growth as determined under
118     Section 53A-17a-106; and

119          (ii) weighted as provided in Subsection (3)(c).
120          (c) In distributing funds under Chapter 17a, Minimum School Program Act, to charter
121     schools, charter school pupils shall be weighted, where applicable, as follows:
122          (i) .55 for kindergarten pupils;
123          (ii) .9 for pupils in grades 1 through 6;
124          (iii) .99 for pupils in grades 7 through 8; and
125          (iv) 1.2 for pupils in grades 9 through 12.
126          (4) (a) (i) A school district shall allocate a portion of school district revenues for each
127     resident student of the school district who is enrolled in a charter school on the previous
128     October 1 equal to 25% of the district per pupil local revenues excluding the amount of
129     revenues:
130          (A) described in Subsection (1)(d)(iv) collected by the district; and
131          (B) expended by the school district for recreational facilities and activities authorized
132     under Title 11, Chapter 2, Playgrounds.
133          (ii) Nothing in this Subsection (4)(a) affects the school bond guarantee program
134     established under Chapter 28, Utah School Bond Guaranty Act.
135          (b) The State Board of Education shall:
136          (i) deduct an amount equal to the allocation provided under Subsection (4)(a) from
137     state funds the school district is authorized to receive under Chapter 17a, Minimum School
138     Program Act; and
139          (ii) remit the money to the student's charter school.
140          (c) Notwithstanding the method used to transfer school district revenues to charter
141     schools as provided in Subsection (4)(b), a school district may deduct the allocations to charter
142     schools under this section from:
143          (i) unrestricted revenues available to the school district; or
144          (ii) the revenue sources listed in Subsection (1)(d) based on the portion of the
145     allocations to charter schools attributed to each of the revenue sources listed in Subsection
146     (1)(d).
147          (d) (i) Subject to future budget constraints, the Legislature shall provide an
148     appropriation for charter schools for each student enrolled on October 1 to supplement the
149     allocation of school district revenues under Subsection (4)(a).

150          (ii) Except as provided in Subsection (4)(d)(iii), the amount of money provided by the
151     state for a charter school student shall be the sum of:
152          (A) charter school students' average local revenues minus the allocation of school
153     district revenues under Subsection (4)(a); and
154          (B) statewide average debt service revenues.
155          (iii) If the total of a school district's allocation for a charter school student under
156     Subsection (4)(a) and the amount provided by the state under Subsection (4)(d)(ii) is less than
157     $1427, the state shall provide an additional supplement so that a charter school receives at least
158     $1427 per student under this Subsection (4).
159          (iv) (A) If the appropriation provided under this Subsection (4)(d) is less than the
160     amount prescribed by Subsection (4)(d)(ii) or (4)(d)(iii), the appropriation shall be allocated
161     among charter schools in proportion to each charter school's enrollment as a percentage of the
162     total enrollment in charter schools.
163          (B) If the State Board of Education makes adjustments to Minimum School Program
164     allocations as provided under Section 53A-17a-105, the allocation provided in Subsection
165     (4)(d)(iv)(A) shall be determined after adjustments are made under Section 53A-17a-105.
166          (e) (i) Except as provided in Subsection (4)(e)(ii), of the money provided to a charter
167     school under this Subsection (4), 10% shall be expended for funding school facilities only.
168          (ii) Subsection (4)(e)(i) does not apply to an online charter school.
169          (f) This Subsection (4) is repealed July 1, 2017.
170          (5) (a) As described in Section 53A-1a-513.1, the State Board of Education shall
171     distribute charter school levy per pupil revenues to charter schools.
172          (b) (i) Subject to future budget constraints, the Legislature shall provide an
173     appropriation for charter schools for each charter school student enrolled on October 1 to
174     supplement the allocation of charter school levy per pupil revenues described in Subsection
175     (5)(a).
176          (ii) Except as provided in Subsection (5)(b)(iii), the amount of money provided by the
177     state for a charter school student shall be the sum of:
178          (A) charter school students' average local revenues minus the charter school levy per
179     pupil revenues; and
180          (B) statewide average debt service revenues.

181          (iii) If the total of charter school levy per pupil revenues and the amount provided by
182     the state under Subsection (5)(b)(ii) is less than $1,427, the state shall provide an additional
183     supplement so that a charter school receives at least $1,427 per student under this Subsection
184     (5).
185          (iv) (A) If the appropriation provided under this Subsection (5)(b) is less than the
186     amount prescribed by Subsection (5)(b)(ii) or (5)(b)(iii), the appropriation shall be allocated
187     among charter schools in proportion to each charter school's enrollment as a percentage of the
188     total enrollment in charter schools.
189          (B) If the State Board of Education makes adjustments to Minimum School Program
190     allocations as provided under Section 53A-17a-105, the allocation provided in Subsection
191     (5)(b)(iv)(A) shall be determined after adjustments are made under Section 53A-17a-105.
192          (c) (i) Of the money provided to a charter school under this Subsection (5), 10% shall
193     be expended for funding school facilities only.
194          (ii) Subsection (5)(c)(i) does not apply to an online charter school.
195          (d) This Subsection (5) is effective July 1, 2017.
196          (6) Charter schools are eligible to receive federal funds if they meet all applicable
197     federal requirements and comply with relevant federal regulations.
198          (7) The State Board of Education shall distribute funds for charter school students
199     directly to the charter school.
200          (8) (a) Notwithstanding Subsection (3), a charter school is not eligible to receive state
201     transportation funding.
202          (b) The board shall also adopt rules relating to the transportation of students to and
203     from charter schools, taking into account Sections 53A-2-210 and 53A-17a-127.
204          (c) The governing board of the charter school may provide transportation through an
205     agreement or contract with the local school board, a private provider, or parents.
206          (9) (a) (i) In accordance with Section 53A-1a-513.5, the State Charter School Board
207     may allocate grants for start-up costs to charter schools from money appropriated for charter
208     school start-up costs.
209          (ii) The governing board of a charter school that receives money from a grant under
210     Section 53A-1a-513.5 shall use the grant for expenses for planning and implementation of the
211     charter school.

212          (b) The State Board of Education shall coordinate the distribution of federal money
213     appropriated to help fund costs for establishing and maintaining charter schools within the
214     state.
215          (10) (a) A charter school may receive, hold, manage and use any devise, bequest, grant,
216     endowment, gift, or donation of any property made to the school for any of the purposes of this
217     part.
218          (b) It is unlawful for any person affiliated with a charter school to demand or request
219     any gift, donation, or contribution from a parent, teacher, employee, or other person affiliated
220     with the charter school as a condition for employment or enrollment at the school or continued
221     attendance at the school.
222          Section 2. Section 53A-2-206 is amended to read:
223          53A-2-206. Interstate compact students -- Inclusion in attendance count --
224     Funding for foreign exchange students -- Annual report -- Requirements for exchange
225     student agencies.
226          (1) A school district or charter school may include the following students in the
227     district's or school's membership and attendance count for the purpose of apportionment of
228     state money:
229          (a) a student enrolled under an interstate compact, established between the State Board
230     of Education and the state education authority of another state, under which a student from one
231     compact state would be permitted to enroll in a public school in the other compact state on the
232     same basis as a resident student of the receiving state; or
233          (b) a student receiving services under Title 62A, Chapter 4a, Part 7, Interstate Compact
234     on Placement of Children.
235          (2) (a) A school district or charter school may include foreign exchange students in the
236     district's or school's membership and attendance count for the purpose of apportionment of
237     state money, except as provided in Subsections (2)(b) through (d).
238          (b) (i) Notwithstanding Section 53A-17a-106, foreign exchange students may not be
239     included in average daily membership for the purpose of determining the number of weighted
240     pupil units in the grades 1-12 basic program.
241          (ii) Subject to the limitation in Subsection (2)(c), the number of weighted pupil units in
242     the grades 1-12 basic program attributed to foreign exchange students shall be equal to the

243     number of foreign exchange students who were:
244          (A) enrolled in a school district or charter school on October 1 of the previous fiscal
245     year; and
246          (B) sponsored by an agency approved by the district's local school board or charter
247     school's governing board.
248          (c) (i) The total number of foreign exchange students in the state that may be counted
249     for the purpose of apportioning state money under Subsection (2)(b) shall be the lesser of:
250          (A) the number of foreign exchange students enrolled in public schools in the state on
251     October 1 of the previous fiscal year; or
252          (B) 328 foreign exchange students.
253          (ii) The State Board of Education shall make rules in accordance with Title 63G,
254     Chapter 3, Utah Administrative Rulemaking Act, to administer the cap on the number of
255     foreign exchange students that may be counted for the purpose of apportioning state money
256     under Subsection (2)(b).
257          (d) Notwithstanding [Sections 53A-17a-133 and 53A-17a-164] Section
258     53A-17a-133.5, weighted pupil units in the grades 1 through 12 basic program for foreign
259     exchange students, as determined by Subsections (2)(b) and (c), may not be included for the
260     purposes of determining a school district's state guarantee money under the voted or board local
261     levies.
262          (3) A school district or charter school may:
263          (a) enroll foreign exchange students that do not qualify for state money; and
264          (b) pay for the costs of those students with other funds available to the school district
265     or charter school.
266          (4) Due to the benefits to all students of having the opportunity to become familiar
267     with individuals from diverse backgrounds and cultures, school districts are encouraged to
268     enroll foreign exchange students, as provided in Subsection (3), particularly in schools with
269     declining or stable enrollments where the incremental cost of enrolling the foreign exchange
270     student may be minimal.
271          (5) The board shall make an annual report to the Legislature on the number of
272     exchange students and the number of interstate compact students sent to or received from
273     public schools outside the state.

274          (6) (a) A local school board or charter school governing board shall require each
275     approved exchange student agency to provide it with a sworn affidavit of compliance prior to
276     the beginning of each school year.
277          (b) The affidavit shall include the following assurances:
278          (i) that the agency has complied with all applicable policies of the board;
279          (ii) that a household study, including a background check of all adult residents, has
280     been made of each household where an exchange student is to reside, and that the study was of
281     sufficient scope to provide reasonable assurance that the exchange student will receive proper
282     care and supervision in a safe environment;
283          (iii) that host parents have received training appropriate to their positions, including
284     information about enhanced criminal penalties under Subsection 76-5-406(10) for persons who
285     are in a position of special trust;
286          (iv) that a representative of the exchange student agency shall visit each student's place
287     of residence at least once each month during the student's stay in Utah;
288          (v) that the agency will cooperate with school and other public authorities to ensure
289     that no exchange student becomes an unreasonable burden upon the public schools or other
290     public agencies;
291          (vi) that each exchange student will be given in the exchange student's native language
292     names and telephone numbers of agency representatives and others who could be called at any
293     time if a serious problem occurs; and
294          (vii) that alternate placements are readily available so that no student is required to
295     remain in a household if conditions appear to exist which unreasonably endanger the student's
296     welfare.
297          (7) (a) A local school board or charter school governing board shall provide each
298     approved exchange student agency with a list of names and telephone numbers of individuals
299     not associated with the agency who could be called by an exchange student in the event of a
300     serious problem.
301          (b) The agency shall make a copy of the list available to each of its exchange students
302     in the exchange student's native language.
303          (8) Notwithstanding Subsection (2)(c)(i), a school district or charter school shall enroll
304     a foreign exchange student if the foreign exchange student:

305          (a) is sponsored by an agency approved by the State Board of Education;
306          (b) attends the same school during the same time period that another student from the
307     school is:
308          (i) sponsored by the same agency; and
309          (ii) enrolled in a school in a foreign country; and
310          (c) is enrolled in the school for one year or less.
311          Section 3. Section 53A-17a-105 is amended to read:
312          53A-17a-105. Powers and duties of State Board of Education to adjust Minimum
313     School Program allocations -- Use of remaining funds at the end of a fiscal year.
314          (1) For purposes of this section:
315          (a) "Board" means the State Board of Education.
316          (b) "ESEA" means the Elementary and Secondary Education Act of 1965, 20 U.S.C.
317     Sec. 6301 et seq.
318          (c) "LEA" means:
319          (i) a school district; or
320          (ii) a charter school.
321          (d) "Program" means a program or allocation funded by a line item appropriation or
322     other appropriation designated as:
323          (i) Basic Program;
324          (ii) Related to Basic Programs;
325          (iii) Voted and Board Levy Programs; or
326          (iv) Minimum School Program.
327          (2) Except as provided in Subsection (3) or (5), if the number of weighted pupil units
328     in a program is underestimated, the board shall reduce the value of the weighted pupil unit in
329     that program so that the total amount paid for the program does not exceed the amount
330     appropriated for the program.
331          (3) If the number of weighted pupil units in a program is overestimated, the board shall
332     spend excess money appropriated for the following purposes giving priority to the purpose
333     described in Subsection (3)(a):
334          (a) to support the value of the weighted pupil unit in a program within the basic
335     state-supported school program in which the number of weighted pupil units is underestimated;

336          (b) to support the state guarantee per weighted pupil unit provided under the voted
337     local levy [program established in Section 53A-17a-133] or the board local levy [program
338     established in Section 53A-17a-164,] in accordance with Section 53A-17a-133.5, if:
339          (i) local contributions to the voted local levy program or board local levy program are
340     overestimated; or
341          (ii) the number of weighted pupil units within school districts qualifying for a
342     guarantee is underestimated;
343          (c) to support the state supplement to local property taxes allocated to charter schools,
344     if the state supplement is less than the amount prescribed by Section 53A-1a-513; or
345          (d) to support a school district with a loss in student enrollment as provided in Section
346     53A-17a-139.
347          (4) If local contributions from the minimum basic tax rate imposed under Section
348     53A-17a-135 are overestimated, the board shall reduce the value of the weighted pupil unit for
349     all programs within the basic state-supported school program so the total state contribution to
350     the basic state-supported school program does not exceed the amount of state funds
351     appropriated.
352          (5) If local contributions from the minimum basic tax rate imposed under Section
353     53A-17a-135 are underestimated, the board shall:
354          (a) spend the excess local contributions for the purposes specified in Subsection (3),
355     giving priority to supporting the value of the weighted pupil unit in programs within the basic
356     state-supported school program in which the number of weighted pupil units is underestimated;
357     and
358          (b) reduce the state contribution to the basic state-supported school program so the
359     total cost of the basic state-supported school program does not exceed the total state and local
360     funds appropriated to the basic state-supported school program plus the local contributions
361     necessary to support the value of the weighted pupil unit in programs within the basic
362     state-supported school program in which the number of weighted pupil units is underestimated.
363          (6) Except as provided in Subsection (3) or (5), the board shall reduce the guarantee
364     per weighted pupil unit as described in Section 53A-17a-133.5 provided under the voted local
365     levy program established in Section 53A-17a-133 or board local levy program established in
366     Section 53A-17a-164, if:

367          (a) local contributions to the voted local levy program or board local levy program are
368     overestimated; or
369          (b) the number of weighted pupil units within school districts qualifying for a
370     guarantee is underestimated.
371          (7) (a) The board may use program funds as described in Subsection (7)(b) if:
372          (i) the state loses flexibility due to the U.S. Department of Education's rejection of the
373     state's renewal application for flexibility under the ESEA; and
374          (ii) the state is required to fully implement the requirements of Title I of the ESEA, as
375     amended by the No Child Left Behind Act of 2001.
376          (b) Subject to the requirements of Subsections (7)(a) and (c), for fiscal year 2016, after
377     any transfers or adjustments described in Subsections (2) through (6) are made, the board may
378     use up to $15,000,000 of excess money appropriated to a program, remaining at the end of
379     fiscal year 2015, to mitigate a budgetary impact to an LEA due to the LEA's loss of flexibility
380     related to implementing the requirements of Title I of the ESEA, as amended by the No Child
381     Left Behind Act of 2001.
382          (c) In addition to the reporting requirement described in Subsection (9), the board shall
383     report actions taken by the board under this Subsection (7) to the Executive Appropriations
384     Committee.
385          (8) Money appropriated to the board is nonlapsing.
386          (9) The board shall report actions taken by the board under this section to the Office of
387     the Legislative Fiscal Analyst and the Governor's Office of Management and Budget.
388          Section 4. Section 53A-17a-133 is amended to read:
389          53A-17a-133. Voted local levy -- Election requirements -- Reconsideration of the
390     program.
391          [(1) As used in this section, "voted and board local levy funding balance" means the
392     difference between:]
393          [(a) the amount appropriated for the voted and board local levy program in a fiscal
394     year; and]
395          [(b) the amount necessary to provide the state guarantee per weighted pupil unit as
396     determined under this section and Section 53A-17a-164 in the same fiscal year.]
397          [(2) An election to consider adoption or modification of a voted local levy is required if

398     initiative petitions signed by 10% of the number of electors who voted at the last preceding
399     general election are presented to the local school board or by action of the board.]
400          [(3) (a) (i) To impose a voted local levy, a majority of the electors of a district voting at
401     an election in the manner set forth in Subsections (9) and (10) must vote in favor of a special
402     tax.]
403          [(ii) The tax rate may not exceed .002 per dollar of taxable value.]
404          [(b) Except as provided in Subsection (3)(c), in order to receive state support the first
405     year, a district must receive voter approval no later than December 1 of the year prior to
406     implementation.]
407          [(c) Beginning on or after January 1, 2012, a school district may receive state support
408     in accordance with Subsection (4) without complying with the requirements of Subsection
409     (3)(b) if the local school board imposed a tax in accordance with this section during the taxable
410     year beginning on January 1, 2011 and ending on December 31, 2011.]
411          [(4) (a) In addition to the revenue a school district collects from the imposition of a
412     levy pursuant to this section, the state shall contribute an amount sufficient to guarantee $35.55
413     per weighted pupil unit for each .0001 of the first .0016 per dollar of taxable value.]
414          [(b) The same dollar amount guarantee per weighted pupil unit for the .0016 per dollar
415     of taxable value under Subsection (4)(a) shall apply to the portion of the board local levy
416     authorized in Section 53A-17a-164, so that the guarantee shall apply up to a total of .002 per
417     dollar of taxable value if a school district levies a tax rate under both programs.]
418          [(c) (i) Beginning July 1, 2015, the $35.55 guarantee under Subsections (4)(a) and (b)
419     shall be indexed each year to the value of the weighted pupil unit for the grades 1 through 12
420     program by making the value of the guarantee equal to .011962 times the value of the prior
421     year's weighted pupil unit for the grades 1 through 12 program.]
422          [(ii) The guarantee shall increase by .0005 times the value of the prior year's weighted
423     pupil unit for the grades 1 through 12 program for each succeeding year subject to the
424     Legislature appropriating funds for an increase in the guarantee.]
425          [(d) (i) The amount of state guarantee money to which a school district would
426     otherwise be entitled to receive under this Subsection (4) may not be reduced for the sole
427     reason that the district's levy is reduced as a consequence of changes in the certified tax rate
428     under Section 59-2-924 pursuant to changes in property valuation.]

429          [(ii) Subsection (4)(d)(i) applies for a period of five years following any such change in
430     the certified tax rate.]
431          [(e) The guarantee provided under this section does not apply to the portion of a voted
432     local levy rate that exceeds the voted local levy rate that was in effect for the previous fiscal
433     year, unless an increase in the voted local levy rate was authorized in an election conducted on
434     or after July 1 of the previous fiscal year and before December 2 of the previous fiscal year.]
435          [(f) (i) If a voted and board local levy funding balance exists for the prior fiscal year,
436     the State Board of Education shall:]
437          [(A) use the voted and board local levy funding balance to increase the value of the
438     state guarantee per weighted pupil unit described in Subsection (4)(c) in the current fiscal year;
439     and]
440          [(B) distribute the state contribution to the voted and board local levy programs to
441     school districts based on the increased value of the state guarantee per weighted pupil unit
442     described in Subsection (4)(f)(i)(A).]
443          [(ii) The State Board of Education shall report action taken under this Subsection (4)(f)
444     to the Office of the Legislative Fiscal Analyst and the Governor's Office of Management and
445     Budget.]
446          (1) As used in this section, "voted local levy" means a local levy imposed in
447     accordance with this section by a local school board.
448          (2) (a) A local school board may impose or modify a voted local levy on property
449     located in the school district of the local school board if a majority of the electors of the school
450     district voting at an election in the manner set forth in Subsections (8) and (9) vote in favor of
451     imposing or modifying the voted local levy.
452          (b) The tax rate of the imposed or modified voted local levy may not exceed .002 per
453     dollar of taxable value.
454          (3) The local school board shall hold an election to consider imposing or modifying the
455     voted local levy if:
456          (a) (i) 10% of the electors of the school district who voted at the last preceding general
457     election sign an initiative petition; and
458          (ii) the initiative petition is presented to the local school board; or
459          (b) a majority of the local school board votes in favor of holding the election.

460          [(5)] (4) (a) An election to modify an existing voted local levy is not a reconsideration
461     of the local school board's existing voted local levy authority unless the proposition submitted
462     to the electors expressly so states.
463          (b) A majority vote opposing a modification does not deprive the [district] local school
464     board of authority to continue the voted local levy.
465          (c) If adoption of a voted local levy is contingent upon an offset reducing other local
466     school board levies, the local school board [must] shall allow the electors, in an election, to
467     consider modifying or discontinuing the imposition of the voted local levy [prior to] before a
468     subsequent increase in other levies that would increase the total local school board [levy]
469     levies.
470          (d) Nothing contained in this section terminates, without an election, the authority of a
471     [school district] local school board to continue imposing an existing voted local levy
472     previously authorized by the voters [as a voted leeway program].
473          [(6)] (5) Notwithstanding Section 59-2-919, a local school [district] board may budget
474     an increased amount of ad valorem property tax revenue derived from a voted local levy
475     imposed under this section in addition to revenue from eligible new growth as defined in
476     Section 59-2-924, without having to comply with the notice requirements of Section 59-2-919,
477     if:
478          (a) the voted local levy is approved:
479          (i) in accordance with Subsections [(9)] (8) and [(10)] (9) on or after January 1, 2003;
480     and
481          (ii) within the four-year period immediately preceding the year in which the local
482     school [district] board seeks to budget an increased amount of ad valorem property tax revenue
483     derived from the voted local levy; and
484          (b) for a voted local levy approved or modified in accordance with this section on or
485     after January 1, 2009, the [school district] local school board complies with the requirements of
486     Subsection [(8)] (7).
487          [(7)] (6) Notwithstanding Section 59-2-919, a local school [district] board may levy a
488     voted local levy tax rate under this section that exceeds the certified tax rate without having to
489     comply with the notice requirements of Section 59-2-919 if:
490          (a) the voted local levy exceeds the certified tax rate as the result of [a school district]

491     the local school board budgeting an increased amount of ad valorem property tax revenue
492     derived from a voted local levy imposed under this section;
493          (b) the voted local levy [was] is approved:
494          (i) in accordance with Subsections [(9)] (8) and [(10)] (9) on or after January 1, 2003;
495     and
496          (ii) within the four-year period immediately preceding the year in which the local
497     school [district] board seeks to budget an increased amount of ad valorem property tax revenue
498     derived from the voted local levy; and
499          (c) for a voted local levy approved or modified in accordance with this section on or
500     after January 1, 2009, the [school district] local school board complies with requirements of
501     Subsection [(8)] (7).
502          [(8)] (7) For purposes of Subsection [(6)] (5)(b) or [(7)] (6)(c), the proposition
503     submitted to the electors regarding the adoption or modification of a voted local levy shall
504     contain the following statement:
505          "A vote in favor of this tax means that (name of the school district) may increase
506     revenue from this property tax without advertising the increase for the next five years."
507          [(9)] (8) (a) Before [imposing a property tax] a local school board may impose a voted
508     local levy pursuant to this section, a local school [district] board shall submit an opinion
509     question to the school district's registered voters voting on the imposition of the voted local
510     levy tax rate so that each registered voter has the opportunity to express the registered voter's
511     opinion on whether the tax rate should be imposed.
512          (b) The election required by this Subsection [(9)] (8) shall be held:
513          (i) at a regular general election conducted in accordance with the procedures and
514     requirements of Title 20A, Election Code, governing regular elections;
515          (ii) at a municipal general election conducted in accordance with the procedures and
516     requirements of Section 20A-1-202; or
517          (iii) at a local special election conducted in accordance with the procedures and
518     requirements of Section 20A-1-203.
519          (c) Notwithstanding the requirements of Subsections [(9)] (8)(a) and (b), beginning on
520     or after January 1, 2012, a local school [district] board may levy a voted local levy tax rate in
521     accordance with this section without complying with the requirements of Subsections [(9)]

522     (8)(a) and (b) if the local school [district] board imposed a tax in accordance with this section
523     at any time during the taxable year beginning on January 1, 2011, and ending on December 31,
524     2011.
525          [(10)] (9) If a local school [district] board determines that a majority of the school
526     district's registered voters voting on the imposition of the voted local levy tax rate have voted
527     in favor of the imposition of the tax rate in accordance with Subsection [(9)] (8), the local
528     school [district may] board may impose the tax rate.
529          (10) In order for a school district to receive a state guarantee described in Section
530     53A-17a-133.5 the first year a voted local levy is imposed, a local school board shall receive
531     voter approval no later than December 1 of the year before implementation.
532          Section 5. Section 53A-17a-133.5 is enacted to read:
533          53A-17a-133.5. State guaranteed local levy increments -- Appropriation to
534     increase number of guaranteed local levy increments -- No effect of change of certified
535     tax rate -- Voted and board local levy funding balance -- Use of guaranteed local levy
536     increment funds.
537          (1) As used in this section:
538          (a) "Board local levy" means a local levy described in Section 53A-17a-164.
539          (b) "Guaranteed local levy increment" means a local levy increment guaranteed by the
540     state:
541          (i) for the board local levy, described in Subsections (2)(a)(ii)(A) and (2)(b)(ii)(A); or
542          (ii) for the voted local levy, described in Subsections (2)(a)(ii)(B) and (2)(b)(ii)(B).
543          (c) "Local levy increment" means .0001 per dollar of taxable value.
544          (d) (i) "Voted and board local levy funding balance" means the difference between:
545          (A) the amount appropriated for the guaranteed local levy increments of the voted local
546     levy and board local levy in a fiscal year; and
547          (B) the amount necessary to fund in the same fiscal year the guaranteed local levy
548     increments as determined under this section.
549          (ii) "Voted and board local levy funding balance" does not include appropriations
550     described in Subsection (2)(b)(i).
551          (e) "Voted local levy" means a local levy described in Section 53A-17a-133.
552          (2) (a) In addition to revenue a school district collects from the imposition of a voted

553     local levy or a board local levy, the state shall guarantee:
554          (i) subject to Subsections (2)(b)(ii)(C) and (3)(a), for each guaranteed local levy
555     increment, an amount sufficient to guarantee $35.55 per weighted pupil unit; and
556          (ii) except as provided in Subsection (2)(b)(ii):
557          (A) for a board local levy, the amount described in Subsection (2)(a)(i) for the first four
558     local levy increments a local school board imposes under the board local levy; and
559          (B) for a voted local levy, the amount described in Subsection (2)(a)(i) for the first 16
560     local levy increments a local school board imposes under the voted local levy.
561          (b) (i) Subject to future budget constraints and Subsection (2)(c), the Legislature shall
562     annually appropriate money from the Local Levy Growth Account established in Section
563     53A-17a-135.2 to increase the number of guaranteed local levy increments and guaranteed
564     amount for weighted pupil units in accordance with Subsection (2)(b)(ii).
565          (ii) The State Board of Education shall, for a fiscal year beginning on or after July 1,
566     2017, and subject to Subsection (2)(c), allocate funds appropriated under Subsection (2)(b)(i)
567     in the following order of priority by increasing:
568          (A) by up to two increments for any given fiscal year the number of board local levy
569     guaranteed local levy increments above four;
570          (B) by up to two increments for any given fiscal year the number of voted local levy
571     guaranteed local levy increments above 16; and
572          (C) the guaranteed amount for each local levy increment per weighted pupil unit
573     described in Subsection (2)(a)(i).
574          (c) The number of guaranteed local levy increments under this Subsection (2) for a
575     school district may not exceed 38 guaranteed local levy increments, regardless of whether the
576     guaranteed local levy increments are from the imposition of a voted local levy, a board local
577     levy, or a combination of the two.
578          (3) (a) Beginning July 1, 2015, the $35.55 guarantee described in Subsection (2)(a)(i)
579     shall be indexed each year to the value of the weighted pupil unit by making the value of the
580     guarantee equal to .011962 times the value of the prior year's weighted pupil unit.
581          (b) The guarantee shall increase by .0005 times the value of the prior year's weighted
582     pupil unit for each succeeding year subject to the Legislature appropriating funds for an
583     increase in the guarantee.

584          (4) (a) The amount of guaranteed local levy increment money that a school district
585     would otherwise be entitled to receive under this section may not be reduced for the sole reason
586     that the school district's board local levy or voted local levy is reduced as a consequence of
587     changes in a certified tax rate under Section 59-2-924 pursuant to changes in property
588     valuation.
589          (b) Subsection (4)(a) applies for a period of five years following a change in the
590     certified tax rate as described in Subsection (4)(a).
591          (5) The guaranteed local levy increments from the imposition of a voted local levy do
592     not apply to the portion of a voted local levy rate that exceeds the voted local levy rate that was
593     in effect for the previous fiscal year, unless an increase in the voted local levy rate was
594     authorized in an election described in Section 53A-17a-133 conducted on or after July 1 of the
595     previous fiscal year and before December 2 of the previous fiscal year.
596          (6) (a) If a voted and board local levy funding balance exists for the prior fiscal year,
597     the State Board of Education shall:
598          (i) use the voted and board local levy funding balance to increase the value of the state
599     guarantee per weighted pupil unit described in Subsection (3)(a) in the current fiscal year; and
600          (ii) distribute guaranteed local levy increment funds to school districts based on the
601     increased value of the state guarantee per weighted pupil unit described in Subsection (6)(a)(i).
602          (b) The State Board of Education shall report action taken under Subsection (6)(a) to
603     the Office of the Legislative Fiscal Analyst and the Governor's Office of Management and
604     Budget.
605          (7) A local school board of a school district that receives funds described in this section
606     shall budget and expend the funds for any public education purpose.
607          (8) (a) Subject to prioritization of the Audit Subcommittee, the Office of the
608     Legislative Auditor General established under Section 36-12-15 shall on or before November
609     1, 2020:
610          (i) conduct an audit of money appropriated and allocated under Subsection (2)(b); and
611          (ii) prepare and submit a written report of the audit in accordance with Subsection
612     36-12-15(4)(b)(ii).
613          (b) The audit shall include:
614          (i) the annual amount of money appropriated under Subsection (2)(b)(i);

615          (ii) (A) which school districts received money under Subsection (2)(b)(ii); and
616          (B) what expenses each school district paid for with the money;
617          (iii) how the appropriation described in Subsection (2)(b)(i) affected differences in per
618     student property tax revenue between school districts within the state; and
619          (iv) what effects, if any, the appropriation described in Subsection (2)(b)(i) has had on
620     statewide education, including any discrepancies between the effect on school districts and
621     charter schools.
622          Section 6. Section 53A-17a-134 is amended to read:
623          53A-17a-134. Board-approved leeway -- Purpose -- State support -- Disapproval.
624          (1) Except as provided in Subsection (9), a local school board may levy a tax rate of up
625     to .0004 per dollar of taxable value to maintain a school program above the cost of the basic
626     school program as follows:
627          (a) a local school board shall use the money generated by the tax for class size
628     reduction within the school district;
629          (b) if a local school board determines that the average class size in the school district is
630     not excessive, it may use the money for other school purposes but only if the board has
631     declared the use for other school purposes in a public meeting prior to levying the tax rate; and
632          (c) a district may not use the money for other school purposes under Subsection (1)(b)
633     until it has certified in writing that its class size needs are already being met and has identified
634     the other school purposes for which the money will be used to the State Board of Education
635     and the state board has approved their use for other school purposes.
636          (2) (a) The state shall contribute an amount sufficient to guarantee $27.36 per weighted
637     pupil unit for each .0001 per dollar of taxable value.
638          (b) The guarantee shall increase in the same manner as provided for the voted local
639     levy guarantee in Subsection [53A-17a-133(4)(c)] 53A-17a-133.5(3)(a).
640          (c) (i) The amount of state guarantee money to which a school district would otherwise
641     be entitled to under this Subsection (2) may not be reduced for the sole reason that the district's
642     levy is reduced as a consequence of changes in the certified tax rate under Section 59-2-924
643     pursuant to changes in property valuation.
644          (ii) Subsection (2)(c)(i) applies for a period of five years following any such change in
645     the certified tax rate.

646          (d) The guarantee provided under this section does not apply to:
647          (i) a board-authorized leeway in the first fiscal year the leeway is in effect, unless the
648     leeway was approved by voters pursuant to Subsections (4) through (6); or
649          (ii) the portion of a board-authorized leeway rate that is in excess of the
650     board-authorized leeway rate that was in effect for the previous fiscal year.
651          (3) The levy authorized under this section is not in addition to the maximum rate of
652     .002 authorized in Section 53A-17a-133, but is a board-authorized component of the total tax
653     rate under that section.
654          (4) As an exception to Section 53A-17a-133, the board-authorized levy does not
655     require voter approval, but the board may require voter approval if requested by a majority of
656     the board.
657          (5) An election to consider disapproval of the board-authorized levy is required, if
658     within 60 days after the levy is established by the board, referendum petitions signed by the
659     number of legal voters required in Section 20A-7-301, who reside within the school district, are
660     filed with the school district.
661          (6) (a) A local school board shall establish its board-approved levy by April 1 to have
662     the levy apply to the fiscal year beginning July 1 in that same calendar year except that if an
663     election is required under this section, the levy applies to the fiscal year beginning July 1 of the
664     next calendar year.
665          (b) The approval and disapproval votes authorized in Subsections (4) and (5) shall
666     occur at a general election in even-numbered years, except that a vote required under this
667     section in odd-numbered years shall occur at a special election held on a day in odd-numbered
668     years that corresponds to the general election date. The school district shall pay for the cost of
669     a special election.
670          (7) (a) Modification or termination of a voter-approved leeway rate authorized under
671     this section is governed by Section 53A-17a-133.
672          (b) A board-authorized leeway rate may be modified or terminated by a majority vote
673     of the board subject to disapproval procedures specified in this section.
674          (8) A board levy election does not require publication of a voter information pamphlet.
675          (9) Beginning January 1, 2012, a local school board may not levy a tax in accordance
676     with this section.

677          Section 7. Section 53A-17a-135 is amended to read:
678          53A-17a-135. Minimum basic tax rate -- Certified revenue levy.
679          (1) As used in this section[,]:
680          (a) "Basic levy increment rate" means a tax rate that will generate an amount of
681     revenue equal to $75,000,000.
682          (b) "Fixed minimum rate" means a tax rate that will generate an amount of revenue
683     equal to:
684          (i) for a fiscal year that begins on July 1, 2017, $22,000,000;
685          (ii) for a fiscal year that begins on July 1, 2018, $44,000,000;
686          (iii) for a fiscal year that begins on July 1, 2019, $66,000,000;
687          (iv) for a fiscal year that begins on July 1, 2020, $88,000,000; or
688          (v) for a fiscal year that begins on or after July 1, 2021, $110,000,000.
689          (2) (a) [In] Except as provided in Subsection (3), in order to qualify for receipt of the
690     state contribution toward the basic program and as [its] the school district's contribution toward
691     [its] the costs of the basic program, each school district shall impose a minimum basic tax rate
692     per dollar of taxable value that generates $392,266,800 in revenues statewide.
693          (b) [The] Except as provided in Subsection (3), the preliminary estimate for the
694     2016-17 minimum basic tax rate is .001695.
695          (c) [The] Except as provided in Subsection (3), the State Tax Commission shall certify
696     on or before June 22 the rate that generates $392,266,800 in revenues statewide.
697          (d) [If] Except as provided in Subsection (3), if the minimum basic tax rate exceeds the
698     certified revenue levy as defined in Section 53A-17a-103, the state is subject to the notice
699     requirements of Section 59-2-926.
700          (3) (a) For a fiscal year that begins on July 1, 2017, 2018, 2019, 2020, or 2021, the
701     minimum basic tax rate is the greater of:
702          (i) the certified revenue levy; or
703          (ii) a tax rate of .001675.
704          (b) On or before June 22, the State Tax Commission shall certify the tax rate to be
705     imposed under Subsection (3)(a), which generates an estimated $421,041,300 in revenues
706     statewide consisting of:
707          (i) the minimum basic tax rate;

708          (ii) the basic levy increment rate; and
709          (iii) the fixed minimum rate.
710          (c) If under this Subsection (3) the minimum basic tax rate exceeds the certified
711     revenue levy, the state is not subject to the notice requirements of Section 59-2-926.
712          [(3)] (4) (a) The state shall contribute to each district toward the cost of the basic
713     program in the district that portion which exceeds the proceeds of the difference between:
714          (i) the minimum basic tax rate to be imposed under Subsection (2) or (3) as applicable;
715     and
716          (ii) the sum of the basic levy increment rate and the fixed minimum rate.
717          (b) In accordance with the state strategic plan for public education and to fulfill its
718     responsibility for the development and implementation of that plan, the Legislature instructs
719     the State Board of Education, the governor, and the Office of Legislative Fiscal Analyst in each
720     of the coming five years to develop budgets that will fully fund student enrollment growth.
721          [(4)] (5) (a) If the difference described in Subsection [(3)] (4)(a) equals or exceeds the
722     cost of the basic program in a school district, no state contribution shall be made to the basic
723     program.
724          (b) The proceeds of the difference described in Subsection [(3)] (4)(a) that exceed the
725     cost of the basic program shall be paid into the Uniform School Fund as provided by law.
726          [(5)] (6) The State Board of Education shall:
727          (a) deduct from state funds that a school district is authorized to receive under this
728     chapter an amount equal to the proceeds generated within the school district by the basic levy
729     increment rate; and
730          (b) deposit the money described in Subsection [(5)] (6)(a) into the Minimum Basic
731     Growth Account created in Section 53A-17a-135.1.
732          (7) The State Board of Education shall:
733          (a) deduct from state funds that a school district is authorized to receive under this
734     chapter an amount equal to the proceeds generated within the school district by the fixed
735     minimum rate; and
736          (b) deposit the money described in Subsection (7)(a) into the Local Levy Growth
737     Account created in Section 53A-17a-135.2.
738          Section 8. Section 53A-17a-135.1 is amended to read:

739          53A-17a-135.1. Minimum Basic Growth Account.
740          (1) As used in this section, "account" means the Minimum Basic Growth Account
741     created in this section.
742          (2) There is created within the Education Fund a restricted account known as the
743     "Minimum Basic Growth Account."
744          (3) The account shall be funded by amounts deposited into the account in accordance
745     with Section 53A-17a-135.
746          (4) The account shall earn interest.
747          (5) Interest earned on the account shall be deposited into the account.
748          (6) Upon appropriation by the Legislature:
749          (a) 75% of the money from the account shall be used to fund the state's contribution to
750     the voted local levy guarantee described in [Subsection 53A-17a-133(4)] Section
751     53A-17a-133.5;
752          (b) 20% of the money from the account shall be used to fund the Capital Outlay
753     Foundation Program as provided in Title 53A, Chapter 21, Part 2, Capital Outlay Foundation
754     Program; and
755          (c) 5% of the money from the account shall be used to fund the Capital Outlay
756     Enrollment Growth Program as provided in Title 53A, Chapter 21, Part 3, Capital Outlay
757     Enrollment Growth Program.
758          Section 9. Section 53A-17a-135.2 is enacted to read:
759          53A-17a-135.2. Local Levy Growth Account.
760          (1) As used in this section, "account" means the Local Levy Growth Account created in
761     this section.
762          (2) There is created within the Education Fund a restricted account known as the
763     "Local Levy Growth Account."
764          (3) The account shall be funded by:
765          (a) amounts deposited into the account in accordance with Section 53A-17a-135; and
766          (b) other legislative appropriations.
767          (4) The account shall earn interest.
768          (5) Interest earned on the account shall be deposited into the account.
769          (6) The Legislature shall appropriate money in the account to the State Board of

770     Education.
771          (7) The State Board of Education shall use money in the account in accordance with
772     Section 53A-17a-133.5.
773          Section 10. Section 53A-17a-136 is amended to read:
774          53A-17a-136. Cost of operation and maintenance of minimum school program --
775     Division between state and school districts.
776          (1) The total cost of operation and maintenance of the minimum school program in the
777     state is divided between the state and school districts as follows:
778          (a) Each school district shall impose a minimum basic tax rate on all taxable, tangible
779     property in the school district and shall contribute the tax proceeds toward the cost of the basic
780     program as provided in this chapter.
781          (b) Each school district may also impose a levy for the purpose of participating in the
782     levy programs provided in Section 53A-17a-133 or 53A-17a-164.
783          (c) The state shall contribute the balance of the total costs.
784          (2) The contributions by the school districts and by the state are computed separately
785     for the purpose of determining their respective contributions to:
786          (a) the basic program; and [to]
787          (b) (i) the levy programs provided in Section 53A-17a-133 or 53A-17a-164[.]; and
788          (ii) the state guarantee of the levy programs as described in Section 53A-17a-133.5.
789          Section 11. Section 53A-17a-146 is amended to read:
790          53A-17a-146. Reduction of district allocation based on insufficient revenues.
791          (1) As used in this section, "Minimum School Program funds" means the total of state
792     and local funds appropriated for the Minimum School Program, excluding:
793          (a) the state-supported voted local levy [program] and board local levy programs
794     pursuant to Section [53A-17a-133; (b) the state-supported board local levy program pursuant
795     to Section 53A-17a-164] 53A-17a-133.5; and
796          [(c)] (b) the appropriation to charter schools to replace local property tax revenues
797     pursuant to Section 53A-1a-513.
798          (2) If the Legislature reduces appropriations made to support public schools under this
799     chapter because an Education Fund budget deficit, as defined in Section 63J-1-312, exists, the
800     State Board of Education, after consultation with each school district and charter school, shall

801     allocate the reduction among school districts and charter schools in proportion to each school
802     district's or charter school's percentage share of Minimum School Program funds.
803          (3) Except as provided in Subsection (5) and subject to the requirements of Subsection
804     (7), a school district or charter school shall determine which programs are affected by a
805     reduction pursuant to Subsection (2) and the amount each program is reduced.
806          (4) Except as provided in Subsections (5) and (6), the requirement to spend a specified
807     amount in any particular program is waived if reductions are made pursuant to Subsection (2).
808          (5) A school district or charter school may not reduce or reallocate spending of funds
809     distributed to the school district or charter school for the following programs:
810          (a) educator salary adjustments provided in Section 53A-17a-153;
811          (b) the Teacher Salary Supplement Program provided in Section 53A-17a-156;
812          (c) the extended year for special educators provided in Section 53A-17a-158;
813          (d) USTAR centers provided in Section 53A-17a-159;
814          (e) the School LAND Trust Program created in Section 53A-16-101.5; or
815          (f) a special education program within the Basic School Program.
816          (6) A school district or charter school may not reallocate spending of funds distributed
817     to the school district or charter school to a reserve account.
818          (7) A school district or charter school that reduces or reallocates funds in accordance
819     with this section shall report all transfers into, or out of, Minimum School Program programs
820     to the State Board of Education as part of the school district or charter school's Annual
821     Financial and Program report.
822          Section 12. Section 53A-17a-164 is amended to read:
823          53A-17a-164. Board local levy.
824          (1) As used in this section, "board local levy" means a local levy imposed in
825     accordance with this section by a local school board.
826          [(1)] (2) Subject to the other requirements of this section, for a calendar year beginning
827     on or after January 1, 2012, a local school board may levy a tax to fund the school district's
828     general fund.
829          [(2)] (3) (a) For purposes of this Subsection [(2)] (3), "combined rate" means the sum
830     of:
831          (i) the rate imposed by a local school board under Subsection [(1)] (2); and

832          (ii) the charter school levy rate, described in Section 53A-1a-513.1, for the local school
833     board's school district.
834          (b) Except as provided in Subsection [(2)] (3)(c), beginning on January 1, 2017, a
835     school district's combined rate may not exceed .0018 per dollar of taxable value in any calendar
836     year.
837           (c) Beginning on January 1, 2017, a school district's combined rate may not exceed
838     .0025 per dollar of taxable value in any calendar year if, during the calendar year beginning on
839     January 1, 2011, the school district's total tax rate for the following levies was greater than
840     .0018 per dollar of taxable value:
841          (i) a recreation levy imposed under Section 11-2-7;
842          (ii) a transportation levy imposed under Section 53A-17a-127;
843          (iii) a board-authorized levy imposed under Section 53A-17a-134;
844          (iv) an impact aid levy imposed under Section 53A-17a-143;
845          (v) the portion of a 10% of basic levy imposed under Section 53A-17a-145 that is
846     budgeted for purposes other than capital outlay or debt service;
847          (vi) a reading levy imposed under Section 53A-17a-151; and
848          (vii) a tort liability levy imposed under Section 63G-7-704.
849          [(3) (a) In addition to the revenue a school district collects from the imposition of a
850     levy pursuant to this section, the state shall contribute an amount sufficient to guarantee that
851     each .0001 of the first .0004 per dollar of taxable value generates an amount equal to the state
852     guarantee per weighted pupil unit described in Subsection 53A-17a-133(4).]
853          [(b) (i) The amount of state guarantee money to which a school district would
854     otherwise be entitled to under this Subsection (3) may not be reduced for the sole reason that
855     the district's levy is reduced as a consequence of changes in the certified tax rate under Section
856     59-2-924 pursuant to changes in property valuation.]
857          [(ii) Subsection (3)(b)(i) applies for a period of five years following any changes in the
858     certified tax rate.]
859          (4) (a) For a calendar year beginning on or after January 1, 2017, the State Tax
860     Commission shall adjust a board local levy rate imposed by a local school board under this
861     section by the amount necessary to offset the change in revenues from the charter school levy
862     imposed under Section 53A-1a-513.1.

863          (b) A local school board is not required to comply with the notice and public hearing
864     requirements of Section 59-2-919 for an offset described in Subsection (4)(a) to the change in
865     revenues from the charter school levy imposed under Section 53A-1a-513.1.
866          (c) A local school board may not increase a board local levy rate under this section
867     before December 31, 2016, if the local school board did not give public notice on or before
868     March 4, 2016, of the local school board's intent to increase the board local levy rate.
869          (d) So long as the charter school levy rate does not exceed 25% of the charter school
870     levy per district revenues, a local school board may not increase a board local levy rate under
871     this section if the purpose of increasing the board local levy rate is to capture the revenues
872     assigned to the charter school levy through the adjustment in a board local levy rate under
873     Subsection (4)(a).
874          (e) Before a local school board takes action to increase a board local levy rate under
875     this section, the local school board shall:
876          (i) prepare a written statement that attests that the local school board is in compliance
877     with Subsection (4)(d);
878          (ii) read the statement described in Subsection (4)(e)(i) during a local school board
879     public meeting where the local school board discusses increasing the board local levy rate; and
880          (iii) send a copy of the statement described in Subsection (4)(e)(i) to the State Tax
881     Commission.
882          Section 13. Section 53A-19-102 is amended to read:
883          53A-19-102. Local governing board budget procedures.
884          (1) As used in this section:
885          (a) "Budget officer" means:
886          (i) for a school district, the school district's superintendent; or
887          (ii) for a charter school, an individual selected by the charter school governing board.
888          (b) "Governing board" means:
889          (i) for a school district, the local school board; or
890          (ii) for a charter school, the charter school governing board.
891          (2) (a) For a school district, before June 22 of each year, a local school board shall
892     adopt a budget and make appropriations for the next fiscal year.
893          (b) For a school district, if the tax rate in the school district's proposed budget exceeds

894     the certified tax rate defined in Section 59-2-924, the local school board shall comply with
895     Section 59-2-919 in adopting the budget, except as provided by Section [53A-17a-133]
896     53A-17a-133.5.
897          (3) (a) For a school district, before the adoption or amendment of a budget, a local
898     school board shall hold a public hearing, as defined in Section 10-9a-103, on the proposed
899     budget or budget amendment.
900          (b) In addition to complying with Title 52, Chapter 4, Open and Public Meetings Act,
901     in regards to the public hearing described in Subsection (3)(a), at least 10 days prior to the
902     public hearing, a local school board shall:
903          (i) publish a notice of the public hearing in a newspaper or combination of newspapers
904     of general circulation in the school district, except as provided in Section 45-1-101;
905          (ii) publish a notice of the public hearing electronically in accordance with Section
906     45-1-101;
907          (iii) file a copy of the proposed budget with the local school board's business
908     administrator for public inspection; and
909          (iv) post the proposed budget on the school district's Internet website.
910          (c) A notice of a public hearing on a school district's proposed budget shall include
911     information on how the public may access the proposed budget as provided in Subsections
912     (3)(b)(iii) and (iv).
913          (4) For a charter school, before June 22 of each year, a charter school governing board
914     shall adopt a budget for the next fiscal year.
915          (5) Within 30 days of adopting a budget, a governing board shall file a copy of the
916     adopted budget with the state auditor and the State Board of Education.
917          Section 14. Appropriation.
918          The following sums of money are appropriated for the fiscal year beginning July 1,
919     2017, and ending June 30, 2018. These are additions to amounts previously appropriated for
920     fiscal year 2018. Under the terms and conditions of Title 63J, Chapter 1, Budgetary Procedures
921     Act, the Legislature appropriates the following sums of money from the funds or accounts
922     indicated for the use and support of the government of the state of Utah.
923     ITEM 1
924          To State Board of Education -- Minimum School Program -- Basic School Program

925               From Education Fund
($22,000,000)

926               From Local Revenue
$22,000,000

927     ITEM 2
928          To State Board of Education -- Minimum School Program -- Voted and
929           Board Local Levy Programs
930               From Education Fund Restricted -- Local Levy Growth Account
$22,000,000

931               Schedule of Programs:
932                    Voted Local Levy Program               $3,442,000
933                    Board Local Levy Program               $18,558,000
934          Section 15. Restricted fund and account transfers.
935          The Legislature authorizes the State Division of Finance to transfer the following
936     amounts among the following funds or accounts as indicated. Expenditures and outlays from
937     the recipient funds must be authorized elsewhere in an appropriations act.
938          To Education Fund Restricted -- Local Levy Growth Account
939               From Education Fund
$22,000,000

940               Schedule of Programs:
941                    Education Fund Restricted -- Local Levy
942                     Growth Account                    $22,000,000
943          Section 16. Retrospective operation.
944          This bill has retrospective operation to January 1, 2017.