H.B. 183 Enrolled

EDUCATION CAPITAL OUTLAY FOUNDATION AMENDMENTS
1999 GENERAL SESSION
STATE OF UTAH
Sponsor: A. Lamont Tyler
AN ACT RELATING TO PUBLIC EDUCATION; PROVIDING THAT A SCHOOL DISTRICT
LEVYING LESS THAN A .0024 TAX RATE FOR CAPITAL OUTLAY AND DEBT
SERVICE SHALL RECEIVE PROPORTIONAL FUNDING UNDER THE CAPITAL
OUTLAY FOUNDATION PROGRAM BASED UPON THE PERCENTAGE OF THE .0024
TAX RATE LEVIED BY THE DISTRICT; AND PROVIDING AN EFFECTIVE DATE.
This act affects sections of Utah Code Annotated 1953 as follows:
AMENDS:
53A-21-103, as repealed and reenacted by Chapter 326, Laws of Utah 1996
Be it enacted by the Legislature of the state of Utah:
Section 1. Section 53A-21-103 is amended to read:
53A-21-103. Qualifications for participation in the foundation program --
Distribution of monies -- Distribution formulas.
(1) In order for a school district to qualify for monies under the capital outlay foundation
program established in Subsection 53A-21-102 (1), a local school board must levy a tax rate of up
to .0024 per dollar of taxable value for capital outlay and debt service.
[(2) If the local school board levies the .0024 tax rate during one year, but due to increased
assessed valuations and a corresponding reduction in the certified tax rate is prevented from
levying the full .0024 tax rate during the subsequent year, the district will considered to be in
compliance with Subsection (1) if it levys the maximum allowable under these circumstances and
shall continue to receive support under the foundation program for a period of up to two years
without loss of state funding.]
(2) (a) The State Board of Education shall adopt a rule in accordance with Title 63,
Chapter 46a, Utah Administrative Rulemaking Act, that allows a school district levying less than
the full .0024 tax rate to receive proportional funding under the foundation program based upon
the percentage of the .0024 tax rate levied by the district.

(b) The rules may include hold harmless provisions for up to two years.
(3) (a) Through June 30, 2001, 20% of the monies in the capital outlay foundation program
shall be used in an emergency school building needs program.
(b) Beginning July 1, 2001, the emergency school building needs program shall be
terminated and the monies otherwise spent in that program shall be used for the general purposes of
the capital outlay foundation program.
(4) The State Board of Education shall distribute monies in the capital outlay foundation
program and the emergency school building needs program in accordance with formulas developed
by the state superintendent of public instruction.
(a) The board shall distribute capital outlay foundation monies on the basis of a minimum
guarantee per average daily membership as computed by the state superintendent of public
instruction using:
(i) available monies; and
(ii) the assessed valuation per average daily membership in each school district.
(b) The formula for the emergency school building needs distribution shall include the
following components:
(i) a school district's ability to raise money for school building needs as related to the
assessed valuation per student for real property within the school district;
(ii) need as reflected by:
(A) the current number of students in the school district who are in alternative housing; and
(B) growth, both within the district and compared to the state as a whole; and
(iii) the school district's effort to raise money based on:
(A) the district's total tax rate; and
(B) the district's bond and bond interest payments compared to its ability to raise revenue.
Section 2. Effective date.
This act takes effect on July 1, 1999.

- 2 -