First Substitute H.B. 145

Representative Brian R. Allen proposes to substitute the following bill:

1 SCHOOLS FOR THE 21ST CENTURY
2 1998 GENERAL SESSION
3 STATE OF UTAH
4 Sponsor: Brian R. Allen
5 AN ACT RELATING TO PUBLIC EDUCATION; PROVIDING FOR A THREE-YEAR
6 SCHOOLS FOR THE 21ST CENTURY PROGRAM OF CONTINUOUS IMPROVEMENT;
7 PROVIDING REQUIREMENTS FOR PARTICIPATION IN THE PROGRAM; REQUIRING
8 AN ACTION PLAN; PROVIDING FOR THE SELECTION OF PARTICIPANTS;
9 PROVIDING FOR FUNDING AND INCENTIVE AWARDS; PROVIDING A $2,000,000
10 APPROPRIATION; PROVIDING FOR THE CREATION OF UP TO EIGHT PILOT
11 CHARTER SCHOOLS FOR THREE YEARS AS A COMPONENT OF SCHOOLS FOR THE
12 21ST CENTURY; PROVIDING FOR A CHARTERING PROCESS; DESIGNATING THE
13 STATE BOARD OF EDUCATION AS THE SPONSOR OF CHARTER SCHOOLS;
14 PROVIDING REQUIREMENTS FOR CHARTER SCHOOLS; IDENTIFYING ISSUES TO
15 BE ADDRESSED IN THE SCHOOL'S CHARTER; PROVIDING FOR INPUT FROM THE
16 LOCAL BOARD OF EDUCATION OF THE DISTRICT IN WHICH A PROPOSED
17 CHARTER SCHOOL IS TO BE LOCATED PRIOR TO THE GRANTING OF A CHARTER;
18 PROVIDING FOR AN ACCOUNTABILITY REPORT; PROVIDING FOR TERMINATION
19 OF A CHARTER; PROVIDING FOR WAIVERS; AND PROVIDING AN EFFECTIVE
20 DATE.
21 This act affects sections of Utah Code Annotated 1953 as follows:
22 ENACTS:
23 53A-1a-401, Utah Code Annotated 1953
24 53A-1a-402, Utah Code Annotated 1953
25 53A-1a-403, Utah Code Annotated 1953

1 53A-1a-404, Utah Code Annotated 1953
2 53A-1a-501, Utah Code Annotated 1953
3 53A-1a-502, Utah Code Annotated 1953
4 53A-1a-503, Utah Code Annotated 1953
5 53A-1a-504, Utah Code Annotated 1953
6 53A-1a-505, Utah Code Annotated 1953
7 53A-1a-506, Utah Code Annotated 1953
8 53A-1a-507, Utah Code Annotated 1953
9 53A-1a-508, Utah Code Annotated 1953
10 53A-1a-509, Utah Code Annotated 1953
11 53A-1a-510, Utah Code Annotated 1953
12 53A-1a-511, Utah Code Annotated 1953
13 53A-1a-512, Utah Code Annotated 1953
14 53A-1a-513, Utah Code Annotated 1953
15 53A-1a-514, Utah Code Annotated 1953
16 Be it enacted by the Legislature of the state of Utah:
17 Section 1. Section 53A-1a-401 is enacted to read:
18 Part 4. Schools for the 21st Century
19 53A-1a-401. Purpose.
20 (1) The Legislature recognizes that public schools leading educational reform into the 21st
21 Century will be schools that aggressively pursue the goal of continuous improvement and
22 customize their education programs to address individual needs of students, and that the state's
23 Centennial and Modified Centennial Schools Programs have established a strong foundation for
24 the emergence of just such a program.
25 (2) The Legislature further recognizes that financial incentives can help stimulate and
26 provide opportunities for public schools to discover and implement creative solutions to each
27 school's unique challenges in helping to prepare individual students to compete and succeed in
28 what has become a global society.
29 Section 2. Section 53A-1a-402 is enacted to read:
30 53A-1a-402. Establishment of Schools for the 21st Century Program -- Qualifications
31 for participation.

- 2 -

1 (1) There is established a Schools for the 21st Century Program to allow selected public
2 schools to commit to a challenging course of continuous improvement.
3 (2) Participation in the program is on a voluntary basis and subject to the following
4 requirements:
5 (a) development and implementation of a three-year action plan designed to continue to
6 improve student achievement in targeted academic areas;
7 (b) development and implementation of an accountability program to measure student
8 achievement against targets established in the action plan referred to in Subsection (2)(a);
9 (c) development and implementation of a plan to effectively implement technology into
10 the curriculum in such a way that students have the opportunity to learn using that technology;
11 (d) except as otherwise provided in this part, the qualification requirements listed in
12 Section 53A-1a-302 for a centennial school and the school directors requirements listed in
13 Subsection 53A-1a-303.5(4) for a modified centennial school; and
14 (e) if the applicant is a centennial or modified centennial school, it may not receive
15 centennial or modified centennial moneys if selected to participate in this program.
16 (3) (a) The school's directors shall develop the action plan required under Subsection
17 (2)(a).
18 (b) The plan shall include, at a minimum, the following:
19 (i) identification of three areas of academic performance in which the school shall show
20 improvement in student achievement during the three-year program;
21 (ii) priority given to improvement in reading, writing, and mathematics, unless the school
22 documents a need for improvement in another academic area after having given due consideration
23 to reading, writing, and mathematics skills;
24 (iii) identification of and proposed actions to improve at least two conditions related to
25 teaching and learning, which could include, but not be limited to, conditions such as school safety,
26 increasing the number of parents participating in student education plans or student education -
27 occupation plans, reducing truancy or drop out rates, or enhancing professional development as
28 related to the action plan;
29 (iv) identification of the uses of all improvement funds and programs at the school, both
30 state and federal, and, where appropriate, relating these funds and programs to the action plan;
31 (v) the development and plans for implementation of meaningful student learning goals

- 3 -

1 by teachers, parents, and students;
2 (vi) identification of a means of measuring by objective and quantifiable methods the
3 extent to which the plan has been achieved; and
4 (vii) provisions for the professional development of educators at the school focused on
5 improving student performance, for seeking technical assistance in developing and implementing
6 the plan, and for identifying effective models of school improvement.
7 (4) The school board of the district in which the applicant school is located must have
8 reviewed and approved the school's action plan prior to its submittal to the State Board of
9 Education
10 Section 3. Section 53A-1a-403 is enacted to read:
11 53A-1a-403. Selection of schools -- Funding -- Incentive awards.
12 (1) The State Board of Education and local school boards, in collaboration with the
13 governor's office, shall develop and implement application procedures and a process for the
14 selection of up to 60 schools each year over a three-year period for participation in the Schools for
15 the 21st Century Program authorized under this part.
16 (2) Selected schools shall participate in the program and be eligible for funding for three
17 consecutive years.
18 (3) (a) The Legislature shall provide an annual appropriation to fund the program.
19 (b) The board, through the State Office of Education, shall administer and distribute the
20 appropriation in the following manner:
21 (i) each school selected as a first-year participant shall receive a base amount of between
22 $5,000 to $10,000 depending on the size of the school;
23 (ii) each first-year school shall also receive an additional per student allocation of up to
24 $27, based upon the number of students as of October 1 in the program as related to the amount
25 of appropriation available for distribution after the base amount has been calculated for all the
26 schools participating on a first-year basis under Subsection (3)(b)(i);
27 (iii) each school in its second year shall receive $9 per student and be eligible to receive
28 an incentive award based upon its achievement of second-year goals; and
29 (iv) each school in its third year shall be eligible to receive major incentive awards based
30 upon achievement of third-year goals.
31 (c) (i) The board shall determine the amount of incentive award money given to schools

- 4 -

1 under Subsections (3)(b)(iii) and (iv) on the basis of goal attainment and student enrollment, with
2 a minimum threshold of 50% attainment of goals for second-year schools and a minimum
3 threshold of 60% attainment for third-year schools in order to receive a portion of the award
4 money.
5 (ii) It is estimated that the incentive award money generated for successful second-year
6 schools would be up to $500 per certificated professional staff member at each participating school
7 and increase to up to $2,000 per certificated professional staff member for each successful
8 third-year school.
9 (d) (i) First-year schools shall use their allocations for program development,
10 implementation, and evaluation, technical assistance, and teacher development, including the
11 establishment of performance goals and identification of a system of measurement and evaluation.
12 (ii) (A) Second-year schools shall use their per student allocations for continuing program
13 operation, modification, and evaluation.
14 (B) If participating schools meet the threshold established in Subsection(3)(c)(i), based
15 upon documentation of the school's progress provided to the board by the school, the appropriate
16 share of incentive award money shall be distributed each year at the school level as determined by
17 the school directors.
18 (C) The distribution may include giving award shares to the school as a whole or to
19 individual programs at the school or to professional staff members or any combination of these
20 options.
21 (iii) Third-year schools shall receive all appropriate incentive moneys under the program
22 based on year-end evaluation of goal attainment and shall distribute it on the same basis as
23 second-year schools distribute incentive award money under Subsections (3)(d)(ii)(B) and (C).
24 Section 4. Section 53A-1a-404 is enacted to read:
25 53A-1a-404. Accountability plans -- Reporting and monitoring of program.
26 (1) Each participant school under this part shall develop an accountability plan to measure
27 student achievement against targets established by the school.
28 (2) The accountability plan shall document the progress towards attaining identified
29 performance goals at the school and report the results annually.
30 (3) (a) The accountability plan shall include the following:
31 (i) documentation of present student achievement levels;

- 5 -

1 (ii) norm-referenced tests which can reasonably assess the performance of students in the
2 areas the school has targeted for improvement, including the Stanford Achievement Test required
3 in grades 5, 8, and 11, where applicable;
4 (iii) criterion-referenced tests which can reasonably assess the performance of students in
5 the areas the school has targeted for improvement, to include the state core assessments; and
6 (iv) documentation of progress toward improving conditions for teaching and learning.
7 (b) The plan may include additional measurements of student performance such as writing
8 assessments or student portfolios.
9 (4) (a) The state board, in cooperation with the local school boards of the districts in which
10 the participant schools are located, shall closely monitor the activities of each school participating
11 in the program and provide assistance if requested by the school's directors.
12 (b) The state board, in collaboration with the school directors and the local school board
13 of the district in which the participant school is located, shall require an annual evaluation on each
14 school's achievement of its performance goals established pursuant to this part and provide a
15 summary report on the evaluations to the local school boards, the Legislature and the governor.
16 Section 5. Section 53A-1a-501 is enacted to read:
17 Part 5. Charter Schools
18 53A-1a-501. Short title.
19 This part is known as "The Utah Charter Schools Act."
20 Section 6. Section 53A-1a-502 is enacted to read:
21 53A-1a-502. Authorization - Creation of charter schools.
22 (1) As a second part of the Schools for the 21st Century initiative the Legislature
23 authorizes the creation of up to eight charter schools for a three-year pilot program.
24 (2) Charter schools are considered to be part of the state's public education system.
25 (3) A charter school may be established by creating a new school or converting an existing
26 public school to charter status.
27 Section 7. Section 53A-1a-503 is enacted to read:
28 53A-1a-503. Purpose.
29 The purpose of charter schools is to:
30 (1) continue to improve student learning;
31 (2) encourage the use of different and innovative teaching methods;

- 6 -

1 (3) create new professional opportunities for educators that will allow them to actively
2 participate in designing and implementing the learning program at the school;
3 (4) increase choice of learning opportunities for students;
4 (5) establish new models of public schools and a new form of accountability for schools
5 that emphasizes the measurement of learning outcomes and the creation of innovative
6 measurement tools; and
7 (6) provide opportunities for greater parental involvement in management decisions at the
8 school level.
9 Section 8. Section 53A-1a-504 is enacted to read:
10 53A-1-504. Proposal.
11 (1) A proposal to establish a charter school may be made by an individual or groups of
12 individuals, including teachers and parents or guardians of students who will attend the school, or
13 a not-for-profit legal entity organized under the laws of this state.
14 (2) (a) The principal, teachers, or parents of students at an existing public school may
15 submit a proposal to convert the school or a portion of the school to charter status.
16 (b) (i) At least two-thirds of the certificated educators employed at the school and at least
17 two-thirds of the parents or guardians of students enrolled at the school must have signed a petition
18 approving the proposal prior to its submission to the sponsoring entity if the entire school is
19 applying for charter status.
20 (ii) The percentage is reduced to a simple majority if the conversion is for only a portion
21 of the school.
22 (c) A proposal submitted under Subsection (2)(a) must first be approved by the local
23 school board based on its determination that students opting not to attend the proposed converted
24 school would have access to a comparable public education alternative
25 (3) A parochial school or home school is not eligible for charter school status.
26 Section 9. Section 53A-1a-505 is enacted to read:
27 53A-1-505. Sponsors of charter schools -- Application process.
28 (1) An applicant for a charter school shall seek sponsorship of its charter from the State
29 Board of Education.
30 (2) (a) (i) The applicant shall also provide a copy of the application to the local school
31 board of the school district in which the proposed charter school shall be located either before or

- 7 -

1 at the same time it files its application with the state board.
2 (ii) The local board shall review the application and may offer suggestions or
3 recommendations to the applicant or the state board prior to its acting on the application.
4 (iii) The state board shall give due consideration to suggestions or recommendations made
5 by the local school board under Subsection (2)(a)(ii).
6 (b) The State Board of Education shall review and, by majority vote, either approve or
7 deny the application within 60 days after the application is received by the board.
8 (c) The state board's action under Subsection (2)(b) is final action subject to judicial
9 review.
10 (3) (a) The applicant and the state board shall set forth the terms and conditions for the
11 operation of the charter school in a written contractual agreement.
12 (b) The contract is the school's charter.
13 (4) The State Office of Education and the school district in which the school is to be
14 located may provide technical assistance to an applicant upon written request.
15 Section 10. Section 53A-1a-506 is enacted to read:
16 53A-1a-506. Eligible students.
17 (1) All resident students of the state qualify for admission to a charter school, subject to
18 the limitations set forth in this section.
19 (2) (a) A charter school shall enroll an eligible student who submits a timely application,
20 unless the number of applications exceeds the capacity of a program, class, grade level, or the
21 school.
22 (b) (i) If the number of applications exceeds the capacity of a program, class, grade level,
23 or the school, then students shall be selected on a random basis except that the school may give
24 preference to a student of a parent who has actively participated in the development of the school
25 and to siblings of students presently enrolled in the school, not to exceed 20% of the student
26 population for preferential selection.
27 (ii) The school may give preference to students who reside within the school district in
28 which the school is located.
29 (c) When a public school converts to charter status, the school shall give enrollment
30 preference to students who would have otherwise attended it as a regular public school.
31 (3) A charter school may not discriminate in its admission policies or practices on the

- 8 -

1 same basis as other public schools may not discriminate in their admission policies and practices.
2 Section 11. Section 53A-1a-507 is enacted to read:
3 53A-1a-507. Requirements for charter schools.
4 (1) A charter school shall be nonsectarian in its programs, admission policies, employment
5 practices, and operations.
6 (2) A charter school may not charge tuition or fees, except those fees normally charged
7 by other public schools.
8 (3) A charter school shall meet all applicable state and local health, safety, and civil rights
9 requirements.
10 (4) (a) A charter school shall make the same annual reports required of other public
11 schools under Title 53A, including an annual financial audit report.
12 (b) The school shall make its reports directly to the State Board of Education and provide
13 a copy to the local school board of the district in which the school is located.
14 (5) A charter school shall be accountable to the state board for performance as provided
15 in Section 53A-1a-509.
16 (6) A charter school may not advocate unlawful behavior.
17 Section 12. Section 53A-1a-508 is enacted to read:
18 53A-1a-508. Content of a charter -- Term -- Renewal.
19 (1) The major issues involving the operation of a charter school shall be considered in
20 advance by the applicant for a charter school and written into the school's charter.
21 (2) The governing body of the charter school and the State Board of Education shall sign
22 the charter.
23 (3) The charter shall include:
24 (a) the age or grade levels to be served by the school;
25 (b) the governance structure of the charter school;
26 (c) the financial plan for the school and the provisions which will be made for auditing the
27 school under Subsection 53A-1a-507(4)(a);
28 (d) the mission and education goals of the school, the curriculum offered, and the methods
29 of assessing whether students are meeting educational goals, to include at a minimum participation
30 in the state's public education statewide assessment program and end-of-level core curriculum
31 assessments;

- 9 -

1 (e) admission and dismissal procedures, including suspension procedures;
2 (f) procedures to review complaints of parents regarding the operation of the school;
3 (g) the opportunity for parental involvement at the school;
4 (h) how the school will provide adequate liability and other appropriate insurance for the
5 school, its governing body, and its employees, including its ability to participate in the state's risk
6 management insurance program;
7 (i) the proposed school calendar, including the length of the school day and school year;
8 (j) whether any agreements have been entered into or plans developed with school districts
9 regarding participation of charter school students in extracurricular activities within the school
10 districts;
11 (k) the physical facility in which the school will be located, if known at the time of
12 application, and its address;
13 (l) the qualifications to be required of the teachers; and
14 (m) in the case of an existing public school converting to charter status, alternative
15 arrangements for current students who choose not to attend the charter school and for current
16 teachers who choose not to teach at the school after its conversion to charter status.
17 (4) A charter is for three years and may be modified during the three-year term by mutual
18 agreement of the state board and the governing body of the school.
19 Section 13. Section 53A-1a-509 is enacted to read:
20 53A-1a-509. Accountability report.
21 (1) The governing body of a charter school shall make annual progress reports to the State
22 Board of Education, the local school board of the district in which the school is located, and the
23 Legislature through its Education Interim Committee.
24 (2) The report shall contain at least the following information:
25 (a) the school's progress toward achieving its goals as set out in the charter; and
26 (b) financial records of the school, including revenues, expenditures, and employee salary
27 and benefit levels.
28 Section 14. Section 53A-1a-510 is enacted to read:
29 53A-1a-510. Termination or nonrenewal of a charter.
30 (1) The State Board of Education may terminate a school's charter during the term of the
31 charter for any of the following reasons:

- 10 -

1 (a) failure of the school to meet the requirements for student performance stated in the
2 charter;
3 (b) failure to meet generally accepted standards of fiscal management;
4 (c) violation of law; or
5 (d) other good cause shown.
6 (2) (a) The board shall notify the governing body of the school of the proposed action in
7 writing, state the grounds for the action, and stipulate that the governing body may request an
8 informal hearing before the board.
9 (b) The board shall conduct the hearing within 30 days after receiving a written request
10 under Subsection (2)(a).
11 (3) (a) The board may terminate a charter immediately if good cause has been shown or
12 if the health, safety, or welfare of the students at the school is threatened.
13 (b) If a charter is terminated under Subsection (3)(a), the school district in which the
14 school is located may assume operation of the school.
15 (4) (a) If a charter is terminated, a student who attended the school may apply to and shall
16 be enrolled in another public school under the enrollment provisions of Title 53A, Chapter 2, Part
17 2, subject to space availability.
18 (b) Normal application deadlines shall be disregarded under Subsection (4)(a).
19 Section 15. Section 53A-1a-511 is enacted to read:
20 53A-1a-511. Waivers from state board rules.
21 (1) A charter school shall operate in accordance with its charter and is subject to Title 53A
22 and other state laws applicable to public schools, except as otherwise provided in this part.
23 (2) (a) A charter school or any other public school or school district may apply to the State
24 Board of Education for a waiver of any state board rule that inhibits or hinders the school or the
25 school district from accomplishing its mission or educational goals set out in its strategic plan or
26 charter.
27 (b) The state board shall grant the waiver, unless:
28 (i) the waiver would cause the school district or the school to be in violation of state or
29 federal law; or
30 (ii) the waiver would threaten the health, safety, or welfare of students in the district or at
31 the school.

- 11 -

1 Section 16. Section 53A-1a-512 is enacted to read:
2 53A-11-512. Employees of charter schools.
3 (1) A charter school shall select its own employees.
4 (2) The school's governing body shall determine the level of compensation and all terms
5 and conditions of employment, except as otherwise provided in this part.
6 (3) (a) To accommodate differentiated staffing and better meet student needs, a charter
7 school, under rules adopted by the State Board of Education, shall employ teachers who:
8 (i) are certificated; or
9 (ii) on the basis of demonstrated competency, would qualify to teach under alternative
10 certification or authorization programs.
11 (b) The school's governing body shall disclose the qualifications of its teachers to the
12 parents of its students.
13 (4) (a) An employee of a school district may request a leave of absence in order to work
14 in a charter school upon approval of the local school board.
15 (b) While on leave, the employee may retain seniority accrued in the school district and
16 may continue to be covered by the benefit program of the district if the charter school and the
17 locally elected school board mutually agree.
18 Section 17. Section 53A-1a-513 is enacted to read:
19 53A-1a-513. Funding for charter schools.
20 (1) (a) A student enrolled in a charter school is considered a resident student of the school
21 district in which the school is located for purposes of state funding, including, but not limited to,
22 moneys the student would generate as a result of qualifying for such programs as special
23 education, students at risk, and gifted and talented.
24 (b) (i) The State Board of Education shall adopt rules to provide:
25 (A) that the school district in which a charter school student resides shall pay to the school
26 district in which the charter school is located 1/2 of the amount by which the resident district's per
27 student expenditure exceeds the value of the state funding under Subsection (1)(a); and
28 (B) for the distribution of moneys to charter schools under this section.
29 (ii) The rules adopted pursuant to Subsection (b)(i)(A) that require 1/2 rather than all of
30 the amount take into account state school funding laws that require certain local moneys to remain
31 within the resident district.

- 12 -

1 (c) If a charter school is providing eligible programs or services to eligible students funded
2 by federal moneys, any eligible student enrolled in a charter school in the school district shall
3 receive federal moneys for the same level of service provided students in the schools operated by
4 the local school board.
5 (2) (a) The board shall also adopt rules relating to the transportation of students to and
6 from charter schools, taking into account Sections 53A-2-210 and 53A-17a-127.
7 (b) The governing body of the charter school may provide transportation through an
8 agreement or contract with the local school board, a private provider, or with parents.
9 (3) (a) The State Superintendent of Public Instruction may allocate grants for start-up costs
10 to eligible charter school applicants from monies appropriated for the implementation of this act.
11 (b) Applications for the grants shall be filed on a form determined by the state
12 superintendent and in conjunction with the application for a charter.
13 (c) The amount of a grant may vary based upon the size, scope, and special circumstances
14 of the charter school.
15 (d) The governing board of the charter school shall use the grant to meet the expenses of
16 the school as established in the school's charter.
17 (4) (a) A charter school may receive, hold, manage and use any devise, bequest, grant,
18 endowment, gift, or donation of any property made to the school for any of the purposes of this
19 part.
20 (b) It is unlawful for any person affiliated with a charter school to demand or request any
21 gift, donation, or contribution from a parent, teacher, employee, or other person affiliated with the
22 charter school as a condition for employment or enrollment at the school or continued attendance
23 at the school.
24 (5) (a) The State Office of Education shall publish and make available to charter school
25 applicants a list of vacant and unused portions of buildings that are owned by the state or by school
26 districts in the state and that may be suitable for the operation of a charter school.
27 (b) The locally elected school board of the district in which a district owned building is
28 located must give its approval before the building can be placed on the list under Subsection (5)(a)
29 (c) The list shall include the address and owner of each building and a short description
30 of the building.
31 (d) Nothing in this Subsection (5) requires the owner of a building on the list to sell or

- 13 -

1 lease the building or a portion of the building to a charter school.
2 Section 18. Section 53A-1a-514 is enacted to read:
3 53A-1a-514. Tort liability.
4 (1) An employee of a charter school is a public employee and the governing body is a
5 public employer in the same manner as a local school board for purposes of tort liability.
6 (2) The governing body of a charter school and the school are solely liable for any
7 damages resulting from a legal challenge involving the operation of the school.
8 Section 19. Appropriation.
9 (1) There is appropriated for fiscal year 1998-99, $1,500,000 to the State Board of
10 Education to fund that component of the Schools for the 21st Century established under Title 53A,
11 Chapter 1a, Part 4.
12 (2) It is the intent of the Legislature that this appropriation be ongoing.
13 (3) It is also the intent of the Legislature that the appropriation currently used to fund the
14 Centennial Schools Program shall be a revenue source for the Schools for the 21st Century
15 Program in fiscal years 1999 and 2000 as the Centennial Schools Program is phased out and the
16 Schools for the 21st Century Program is phased in.
17 (4) There is appropriated for fiscal year 1998-99, $500,000 to the State Board of Education
18 to fund the Charter Schools component established under Title 53A, Chapter 1a, Part 5.
19 Section 20. Effective date.
20 This act takes effect on July 1,1998.

- 14 -