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S.B. 35 Enrolled





Sponsor: Michael G. Waddoups

                  Lyle W. Hillyard
                  Paula F. Julander
                  David H. Steele
Howard A. Stephenson
Dan R. Eastman
Karen Hale
Ron Allen
Bill Wright

                  This act modifies provisions related to the State System of Public Education to address issues
                  in the capital outlay foundation program. The act deletes provisions regarding an
                  emergency building needs program that terminates on June 30, 2001. It increases the state
                  appropriation for the capital outlay foundation program from $28,358,000 to $38,358,000.
                  This act takes effect July 1, 2001.
                  This act affects sections of Utah Code Annotated 1953 as follows:
                      53A-21-102, as repealed and reenacted by Chapter 326, Laws of Utah 1996
                      53A-21-103, as last amended by Chapter 129, Laws of Utah 1999
                      53A-21-105, as last amended by Chapter 264, Laws of Utah 2000
                  Be it enacted by the Legislature of the state of Utah:
                      Section 1. Section 53A-21-102 is amended to read:
                       53A-21-102. Capital outlay foundation program -- Loan Program.
                      (1) There is established a capital outlay foundation program[, which shall include an
                  emergency school building needs program through June 30, 2001,] to provide revenues to school
                  districts for the purposes of capital outlay bonding, construction, and renovation.
                      (2) There is established a capital outlay loan program to provide short-term help to school
                  districts to meet district needs for school building construction and renovation.
                      (3) School districts shall use the monies provided to them under the foundation and loan
                  programs solely for school district capital outlay and debt service purposes.
                      Section 2. 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) (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)] (3) 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] a formula developed by the state superintendent of public instruction[. (a) The board
                  shall distribute capital outlay foundation monies on the basis of] based on a minimum guarantee per
                  average daily membership as computed by the state superintendent [of public instruction] using:
                      [(i)] (a) available monies; and
                      [(ii)] (b) 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:]

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                      [(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 3. Section 53A-21-105 is amended to read:
                       53A-21-105. State contribution to capital outlay programs.
                      The state contribution toward the cost of the programs established under Section 53A-21-102
                  for the fiscal year beginning July 1, [2000] 2001, shall consist of an appropriation totaling
                  [$28,358,000] $38,358,000 to the State Board of Education from the Uniform School Fund.
                      Section 4. Effective date.
                      This act takes effect on July 1, 2001.

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