MINUTES OF THE

SENATE EDUCATION STANDING COMMITTEE

ROOM 210, SENATE BUILDING

FEBRUARY 4, 2013

Members Present: Sen. Stuart C. Reid, Chair

Sen. Patricia W. Jones

Sen. Mark B. Madsen

Sen. Aaron Osmond

Sen. Jerry W. Stevenson

Sen. Howard A. Stephenson

Sen. Stephen H. Urquhart

Members Excused: Pres. Wayne L. Niederhauser

Staff Present: Ms. Allison Nicholson, Policy Analyst

Ms. Wendy Hill, Secretary

A list of visitors and a copy of handouts are filed with the committee minutes.

Chair Reid called the meeting to order at 4:15 pm.

Approval of Minutes

MOTION: Sen. Osmond moved to approve the minutes of the January 28, 2013 meeting. The motion passed unanimously.

S.B. 51 Higher Education Tuition Waivers (Sen. S. Urquhart)

Sen. Urquhart introduced and explained the bill.

Spoke for the bill: Mr. Dave Buhler, Commissioner, Utah System of Higher Education

Dr. Stan L. Albrecht, President, Utah State University

Dr. James Morales, Vice-President of Student Services, Utah State University

MOTION: Sen. Osmond moved to pass the bill out favorably. The motion passed unanimously.

S.C.R. 5 Concurrent Resolution Endorsing the Utah Education Excellence Commission (Sen. J. Stevenson)

Sen. Stevenson introduced and explained the resolution.

Spoke for the resolution: Mr. Lane Beattie, President and CEO, Salt Lake Chamber of Commerce

Mr. Mark H. Bouchard, Senior Managing Director, CBRE, and Member, Governors Education Excellence Commission

Ms. Christine Kearl, Education Deputy, Governor's Office

Dr. Patti Harrington, Executive Director, Utah School Superintendents Association

Ms. JoDee Sundberg , Utah School Boards Association and Alpine School District Board of Education

Mr. David Hartman, President, Ogden-Weber Chamber of Commerce

Mr. Val Hale, President, Utah Valley Chamber of Commerce

Dr. Martell Menlove, State Superintendent of Public Instruction

Ms. Gainell Rogers, President, Utah Parent Teacher Association

Mr. Kory Holdaway, Government Relations Director, Utah Education Association

Mr. Rob Brems, President, Utah College of Applied Technology

Mr. Dave Buhler, Commissioner, Utah System of Higher Education

MOTION: Sen. Jones moved to pass the resolution out favorably. The motion passed unanimously with Sen. Madsen, and Sen. Urquhart absent for the vote.

S.B. 151 Authorization of Charter Schools by Higher Education Institutions (Sen. J. S. Adams)

Sen. Adams introduced and explained the bill.

MOTION: Sen. Osmond moved to adopt the following amendments:

1. Page 1, Line 20:

20applications;

{

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:

{

None

}

This bill provides an immediate effective date.

3. Page 4, Lines 117 through 120:

117Subsection (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

119year

{

; and

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

}

4. Page 5, Lines 122 through 125:

122described 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

{

;

124and

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

}

5. Page 5, Line 151:

151policy 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:

17a charter school;

and

7. Page 1, Lines 20 through 21:

20applications

{

; and

21 ► prohibits a higher education institution from operating a charter school

}

8. Page 1, Line 28:

{

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

}

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

{

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

33 53A-1a-518. Regulated transactions and relationships -- Definitions -- Entities

34prohibited 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

39school 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

42compensation, 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,

45uncle, aunt, nephew, niece, first cousin, mother-in-law, father-in-law, brother-in-law,

46sister-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

48may 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

50charter 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

53approval, 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

56determined.

57 (3) (a) Except as provided in Subsections (3)(b) and (3)(c), a charter school officer or a

58relative of a charter school officer may not have a financial interest in a contract or other

59transaction involving a charter school in which the charter school officer serves as a charter

60school officer.

61 (b) If a charter school's governing board considers entering into a contract or executing

62a transaction in which a charter school officer or a relative of a charter school officer has a

63financial 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

66for 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

69and determined.

70 (c) The provisions in Subsection (3)(a) do not apply to a reasonable contract of

71employment 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

74is approved in accordance with the provisions in Subsection (2).

75 (4) The [State Board of Education or State Charter School Board] following entities

76may 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:

The motion passed unanimously with Sen. Madsen, and Sen. Urquhart absent for the vote.

Spoke to the bill: Mr. Rob Brems, President, Utah College of Applied Technology

MOTION: Sen. Osmond moved to pass the bill out favorably. The motion passed unanimously with Sen. Madsen absent for the vote.

MOTION: Sen. Jones moved to adjourn. The motion passed unanimously with Sen. Madsen absent for the vote.

Chair Reid adjourned the meeting at 6:07 pm.

Minutes were reported by Ms. Wendy Hill, Secretary.

___________________________________________

Sen. Stuart Reid, Chair