First Substitute H.B. 3

This document includes Senate 2nd Reading Floor Amendments incorporated into the bill on Tue, Mar 4, 2003 at 6:46 PM by rday. -->

Senator John L. Valentine proposes the following substitute bill:

1 MINIMUM SCHOOL PROGRAM ACT
2 AMENDMENTS
3 2003 GENERAL SESSION
4 STATE OF UTAH
5 Sponsor: Gordon E. Snow
6 This act modifies the State System of Public Education Code by providing funding for the
7 Minimum School Program and school building aid programs. This act establishes a
8 ceiling for the state contribution to the Minimum School Program for fiscal year 2003-04
9 of $1,611,343,274, which includes a one-time appropriation of $5,000,000 for classroom
10 supplies. This act establishes the value of the weighted pupil unit at $2,150. This act
11 appropriates $27,288,900 for school building aid programs. This act establishes the
12 maximum funding level for the School LAND Trust Program. This act dedicates a
13 portion of the interest and dividends received from the investment of monies in the
14 Permanent State School Fund for teachers' classroom supplies. This act provides an
15 effective date. This act provides a coordination clause.
16 This act affects sections of Utah Code Annotated 1953 as follows:
17 AMENDS:
18 53A-1a-513, as last amended by Chapter 313, Laws of Utah 2002
19 53A-1a-515, as last amended by Chapter 313, Laws of Utah 2002
20 53A-2-206, as last amended by Chapter 9, Laws of Utah 2001
21 53A-16-101.5, as last amended by Chapter 324, Laws of Utah 2002
22 53A-17a-103, as last amended by Chapter 279, Laws of Utah 2002
23 53A-17a-104, as last amended by Chapter 19, Laws of Utah 2002, Fifth Special Session
24 53A-17a-111, as last amended by Chapter 279, Laws of Utah 2002
25 53A-17a-112, as last amended by Chapter 279, Laws of Utah 2002

26 53A-17a-113, as last amended by Chapter 279, Laws of Utah 2002
27 53A-17a-116, as last amended by Chapter 279, Laws of Utah 2002
28 53A-17a-119, as last amended by Chapter 279, Laws of Utah 2002
29 53A-17a-120, as last amended by Chapters 258 and 279, Laws of Utah 2002
30 53A-17a-121, as last amended by Chapters 258, 279 and 299, Laws of Utah 2002
31 53A-17a-123, as last amended by Chapters 258 and 279, Laws of Utah 2002
32 53A-17a-123.5, as enacted by Chapter 279, Laws of Utah 2002
33 53A-17a-124, as last amended by Chapter 19, Laws of Utah 2002, Fifth Special Session
34 53A-17a-124.5, as last amended by Chapter 279, Laws of Utah 2002
35 53A-17a-125, as last amended by Chapters 250 and 279, Laws of Utah 2002
36 53A-17a-126, as last amended by Chapter 279, Laws of Utah 2002
37 53A-17a-131.15, as last amended by Chapter 279, Laws of Utah 2002
38 53A-17a-131.17, as last amended by Chapter 279, Laws of Utah 2002
39 53A-17a-133, as last amended by Chapter 279, Laws of Utah 2002
40 53A-17a-135, as last amended by Chapter 279, Laws of Utah 2002
41 53A-17a-148, as enacted by Chapter 279, Laws of Utah 2002
42 53A-21-102, as last amended by Chapter 234, Laws of Utah 2001
43 53A-21-103, as last amended by Chapter 234, Laws of Utah 2001
44 53A-21-105, as last amended by Chapters 258 and 279, Laws of Utah 2002
45 59-2-906.1, as last amended by Chapter 133, Laws of Utah 2001
46 59-2-926, as enacted by Chapter 271, Laws of Utah 1995
47 ENACTS:
48 53A-17a-149, Utah Code Annotated 1953
49 53A-21-103.5, Utah Code Annotated 1953
50 REPEALS:
51 53A-17a-131.2, as last amended by Chapter 279, Laws of Utah 2002
52 53A-17a-131.13, as last amended by Chapter 279, Laws of Utah 2002
53 53A-17a-131.19, as last amended by Chapters 258 and 279, Laws of Utah 2002
54 53A-17a-132, as last amended by Chapter 279, Laws of Utah 2002
55 This act enacts uncodified material.
56 Be it enacted by the Legislature of the state of Utah:

57 Section 1. Section 53A-1a-513 is amended to read:
58 53A-1a-513. Funding for charter schools.
59 [(1) (a) A student enrolled in a charter school is considered a resident student of the
60 school district in which the school is located for purposes of state funding, including, but not
61 limited to, monies the student would generate as a result of qualifying for such programs as
62 special education, students at risk, and gifted and talented.]
63 (1) (a) Charter schools shall receive funding as described in this section, except
64 Subsections (2) through (7) do not apply to charter schools described in Subsection (1)(b).
65 (b) Charter schools sponsored by local school boards that are converted from district
66 schools or operate in district facilities without paying reasonable rent shall receive funding as
67 prescribed in Section 53A-1a-515 .
68 (2) (a) Except as provided in Subsection (2)(b), a charter school shall receive state
69 funds, as applicable, on the same basis as a school district receives funds.
70 (b) In distributing funds under Title 53A, Chapter 17a, Minimum School Program Act,
71 to charter schools, charter school pupils shall be weighted, where applicable, as follows:
72 (i) .55 for kindergarten pupils;
73 (ii) .9 for pupils in grades 1-6;
74 (iii) .99 for pupils in grades 7-8; and
75 (iv) 1.2 for pupils in grades 9-12.
76 (c) The State Board of Education shall make rules in accordance with Title 63, Chapter
77 46a, Utah Administrative Rulemaking Act, to administer Subsection (2)(b), including hold
78 harmless provisions to maintain a charter elementary school's funding level for a period of two
79 years after the effective date of the distribution formula.
80 (d) Subsection (2)(b) does not apply to funds appropriated to charter schools to replace
81 local property tax revenues.
82 [(b) (i)] (3) The State Board of Education shall adopt rules to provide[: (A) that the
83 school district in which a charter school student resides shall pay to the school district in which
84 the charter school is located 1/2 of the amount by which the resident district's per student
85 expenditure exceeds the value of the state funding under Subsection (1)(a); and (B)] for the
86 distribution of monies to charter schools under this section.
87 [(ii) The rules adopted pursuant to Subsection (1)(b)(i)(A) that require 1/2 rather than

88 all of the amount take into account state school funding laws that require certain local moneys
89 to remain within the resident district.]
90 [(c)] (4) The Legislature shall provide an appropriation for charter schools for each of
91 their students [equal to the lesser of 1/2 of the statewide school district average per student
92 expenditure in excess of state funding under Subsection (1)(a) or 1/2 of the amount by which
93 the resident district's per student expenditure exceeds the value of the state funding under
94 Subsection (1)(a) to supplement the local monies received by a charter school under Subsection
95 (1)(b)(i)(A).] to replace some of the local property tax revenues that are not available to charter
96 schools. The amount of money provided for each charter school student shall be determined
97 by:
98 (a) calculating the sum of:
99 (i) school districts' operations and maintenance revenues derived from local property
100 taxes, except revenues from imposing a minimum basic tax rate pursuant to Section
101 53A-17a-135 ;
102 (ii) school districts' capital projects revenues derived from local property taxes; and
103 (iii) school districts' expenditures for interest on debt; and
104 (b) dividing the sum by the total average daily membership of the districts' schools.
105 [(d) If a charter school is providing eligible programs or services to eligible students
106 funded by federal monies, any eligible student enrolled in a charter school in the school district
107 shall receive federal monies for the same level of service provided students in the schools
108 operated by the local school board.]
109 (5) Charter schools are eligible to receive federal funds if they meet all applicable
110 federal requirements and comply with relevant federal regulations.
111 (6) The State Board of Education shall distribute funds for charter school students
112 directly to the charter school.
113 (7) (a) Notwithstanding Subsection (2), a charter school is not eligible to receive state
114 transportation funding.
115 [(2) (a)] (b) The board shall also adopt rules relating to the transportation of students to
116 and from charter schools, taking into account Sections 53A-2-210 and 53A-17a-127 .
117 [(b)] (c) The governing body of the charter school may provide transportation through
118 an agreement or contract with the local school board, a private provider, or with parents.

119 [(3)] (8) (a) (i) The state superintendent of public instruction may allocate grants for
120 both start-up and ongoing costs to eligible charter school applicants from monies appropriated
121 for the implementation of this part.
122 (ii) Applications for the grants shall be filed on a form determined by the state
123 superintendent and in conjunction with the application for a charter.
124 (iii) The amount of a grant may vary based upon the size, scope, and special
125 circumstances of the charter school.
126 (iv) The governing board of the charter school shall use the grant to meet the expenses
127 of the school as established in the school's charter.
128 (b) The State Board of Education shall coordinate the distribution of federal monies
129 appropriated to help fund costs for establishing and maintaining charter schools within the
130 state.
131 [(4)] (9) (a) A charter school may receive, hold, manage and use any devise, bequest,
132 grant, endowment, gift, or donation of any property made to the school for any of the purposes
133 of this part.
134 (b) It is unlawful for any person affiliated with a charter school to demand or request
135 any gift, donation, or contribution from a parent, teacher, employee, or other person affiliated
136 with the charter school as a condition for employment or enrollment at the school or continued
137 attendance at the school.
138 Section 2. Section 53A-1a-515 is amended to read:
139 53A-1a-515. Charters sponsored by local school boards.
140 (1) Individuals and entities identified in Section 53A-1a-504 may enter into an
141 agreement with a local school board to establish and operate a charter school within the
142 geographical boundaries of the school district administered by the board[, subject to the same
143 requirements established in Sections 53A-1a-504 through 53A-1a-514 , except as otherwise
144 provided in this section].
145 (2) These schools are in addition to the limited number of charter schools authorized
146 under the sponsorship of the State Board of Education in Section 53a-1a-502 .
147 (3) (a) An existing public school that converts to charter status under a charter granted
148 by a local school board may:
149 (i) continue to receive the same services from the school district that it received prior to

150 its conversion; or
151 (ii) contract out for some or all of those services with other public or private providers.
152 (b) Any other charter school sponsored by a local school board may contract with the
153 board to receive some or all of the services referred to in Subsection (3)(a).
154 (4) (a) (i) A public school that converts to a charter school under [Subsection (3)(a)] a
155 charter granted by a local school board shall receive funding:
156 (A) through the school district; and
157 (B) on the same basis as it did prior to its conversion to a charter school.
158 (ii) The school may also receive federal monies designated for charter schools under
159 any federal program.
160 [(b) (i) Any other charter school sponsored by a local school board shall receive
161 funding as provided under Subsection (4)(a), except as otherwise provided in Subsection
162 (4)(b)(ii).]
163 [(ii)] (b) (i) [If the charter school is not operating out of] A local school
164 board-sponsored charter school operating in a facility owned by the school district[, then the
165 funding provisions of Section 53A-1a-513 apply.] and not paying reasonable rent to the school
166 district shall receive funding:
167 (A) through the school district; and
168 (B) on the same basis that other district schools receive funding.
169 (ii) The school may also receive federal monies designated for charter schools under
170 any federal program.
171 (c) Any other charter school sponsored by a local school board shall receive funding as
172 provided in Section 53A-1a-513 .
173 (5) (a) A local school board that receives an application for a charter school under this
174 section shall, within 45 days, either accept or reject the application.
175 (b) If the board rejects the application, it shall notify the applicant in writing of the
176 reason for the rejection.
177 (c) The applicant may submit a revised application for reconsideration by the board.
178 (d) If the local school board refuses to sponsor the applicant, the applicant may seek a
179 charter from the State Board of Education under Section 53A-1a-505 .
180 (e) The local board's action under Subsection (5)(d) is final action subject to judicial

181 review.
182 (6) A local school board is limited in the number of charter schools it may sponsor
183 under this section as follows:
184 (a) there is no limitation on the number of existing public schools within a school
185 district that may convert to charter status under this section; and
186 (b) the number of charter schools not converted from existing public schools is limited
187 to an enrollment equal to 4% of the school district's student population as reported in the most
188 recent annual statistical report required under Section 53A-3-403 .
189 (7) A local school board may terminate a charter school it sponsors under this section
190 for the same reasons and under the same procedures followed by the State Board of Education
191 under Subsection 53A-1a-509 (3).
192 Section 3. Section 53A-2-206 is amended to read:
193 53A-2-206. Exchange and interstate compact students -- Inclusion in attendance
194 count -- Annual report -- Requirements for exchange student agencies.
195 (1) A school district may include membership and attendance of students for the
196 purpose of apportionment of state monies if:
197 (a) (i) the student is [an] a foreign exchange student sponsored by an agency approved
198 by the State Board of Education[, and the enrollment is in compliance with rules and
199 enrollment limits set by the state board; or]; and
200 (ii) the agency sponsoring the foreign exchange student is also sponsoring a resident
201 student of the district who is enrolled in a school in a foreign country;
202 (b) the student is enrolled under an interstate compact, established between the State
203 Board of Education and the state education authority of another state, under which a student
204 from one compact state would be permitted to enroll in a public school in the other compact
205 state on the same basis as a resident student of the receiving state; or
206 (c) the student is receiving services under the Compact on Placement of Children.
207 (2) The board shall make an annual report to the Legislature on the number of
208 exchange students and the number of interstate compact students sent to or received from
209 public schools outside the state.
210 (3) (a) The board shall require each approved exchange student agency to provide it
211 with a sworn affidavit of compliance prior to the beginning of each school year.

212 (b) The affidavit shall include the following assurances:
213 (i) that the agency has complied with all applicable rules of the board;
214 (ii) that a household study, including a background check of all adult residents, has
215 been made of each household where an exchange student is to reside, and that the study was of
216 sufficient scope to provide reasonable assurance that the exchange student will receive proper
217 care and supervision in a safe environment;
218 (iii) that host parents have received training appropriate to their positions, including
219 information about enhanced criminal penalties under Subsection 76-5-406 (10) for persons who
220 are in a position of special trust;
221 (iv) that a representative of the exchange student agency shall visit each student's place
222 of residence at least once each month during the student's stay in Utah;
223 (v) that the agency will cooperate with school and other public authorities to ensure
224 that no exchange student becomes an unreasonable burden upon the public schools or other
225 public agencies;
226 (vi) that each exchange student will be given in the exchange student's native language
227 names and telephone numbers of agency representatives and others who could be called at any
228 time if a serious problem occurs; and
229 (vii) that alternate placements are readily available so that no student is required to
230 remain in a household if conditions appear to exist which unreasonably endanger the student's
231 welfare.
232 (4) (a) The board shall provide each approved exchange student agency with a list of
233 names and telephone numbers of individuals not associated with the agency who could be
234 called by an exchange student in the event of a serious problem.
235 (b) The agency shall make a copy of the list available to each of its exchange students
236 in the exchange student's native language.
237 Section 4. Section 53A-16-101.5 is amended to read:
238 53A-16-101.5. School LAND Trust Program -- Contents -- Purpose --
239 Distribution of funds -- School plans for use of funds.
240 (1) There is established the School LAND (Learning And Nurturing Development)
241 Trust Program for the state's public schools to provide financial resources to enhance or
242 improve student academic achievement and implement a component of the school

243 improvement plan.
244 (2) (a) The program shall be funded each fiscal year from that portion of the Uniform
245 School Fund consisting of [all] the interest and dividends [on the] received in the immediately
246 preceding fiscal year from the investment of monies in the permanent State School Fund
247 [remaining after the deduction of the amount retained in the State School Fund to protect the
248 fund against losses due to inflation as prescribed by the Utah Constitution Article X, Section
249 5].
250 (b) On and after July 1, 2003, the program shall be funded as provided in Subsection
251 (2)(a) up to a maximum of $12,000,000 each fiscal year.
252 (c) The Legislature shall annually allocate, through an appropriation to the State Board
253 of Education, a portion of School LAND Trust Program monies for the administration of the
254 program.
255 (3) (a) The State Board of Education shall allocate [all] the monies referred to in
256 Subsection (2) annually for the fiscal year beginning July 1, 2000, and for each fiscal year
257 thereafter as follows:
258 (i) school districts shall receive 10% of the funds on an equal basis; and
259 (ii) the remaining 90% of the funds shall be distributed on a per student basis, with
260 each district receiving its allocation on the number of students in the district as compared to the
261 state total.
262 (b) Each school district shall distribute its allocation under Subsection (3)(a) to each
263 school within the district on an equal per student basis.
264 (c) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
265 board may make rules regarding the time and manner in which the student count shall be made
266 for allocation of the monies.
267 (4) In order to receive its allocation under Subsection (3), a school shall have
268 established a school community council under Section 53A-1a-108 .
269 (5) (a) The school community council or its subcommittee shall develop a program to
270 use its allocation under Subsection (3) to implement a component of the school's improvement
271 plan, including:
272 (i) the school's identified most critical academic needs;
273 (ii) a recommended course of action to meet the identified academic needs;

274 (iii) a specific listing of any programs, practices, materials, or equipment which the
275 school will need to implement a component of its school improvement plan to have a direct
276 impact on the instruction of students and result in measurable increased student performance;
277 and
278 (iv) how the school intends to spend its allocation of funds under this section to
279 enhance or improve academic excellence at the school.
280 (b) The school may develop a multiyear program, but the program shall be presented
281 and approved by the school community council and the local school board of the district in
282 which the school is located annually and as a prerequisite to receiving program funds allocated
283 under this section.
284 (6) (a) Each school shall:
285 (i) implement the program as approved by the school community council and approved
286 by the local school board;
287 (ii) provide ongoing support for the council's or its subcommittee's program;
288 (iii) meet school board reporting requirements regarding financial and performance
289 accountability of the program; and
290 (iv) publicize to its patrons and the general public on how the funds it received under
291 this section were used to enhance or improve academic excellence at the school and implement
292 a component of the school's improvement plan, including the results of those efforts.
293 (b) (i) Each school through its council or its subcommittee shall prepare and present an
294 annual report of the program to its local school board at the end of the school year.
295 (ii) The report shall detail the use of program funds received by the school under this
296 section and an assessment of the results obtained from the use of the funds.
297 Section 5. Section 53A-17a-103 is amended to read:
298 53A-17a-103. Definitions.
299 As used in this chapter:
300 (1) "Basic state-supported school program" or "basic program" means public education
301 programs for kindergarten, elementary, and secondary school students that are operated and
302 maintained for the amount derived by multiplying the number of weighted pupil units for each
303 district by [$2,132] $2,150, except as otherwise provided in this chapter.
304 (2) "Certified revenue levy" means a property tax levy that provides [the same] an

305 amount of ad valorem property tax revenue [as was collected for the prior year, plus new
306 growth, but exclusive of revenue from collections from redemptions, interest, and penalties.]
307 equal to the sum of:
308 (a) the amount of property tax revenue to be generated statewide in the previous year
309 from imposing a minimum basic tax rate, as specified in Subsection 53A-17a-135 (1)(a); and
310 (b) the product of:
311 (i) new growth, as defined in Section 59-2-924 and rules of the State Tax Commission;
312 and
313 (ii) the minimum basic tax rate certified by the State Tax Commission for the previous
314 year.
315 (3) "Leeway program" or "leeway" means a state-supported voted leeway program or
316 board leeway program authorized under Section 53A-17a-133 or 53A-17a-134 .
317 (4) "Pupil in average daily membership (ADM)" means a full-day equivalent pupil.
318 (5) (a) "State-supported minimum school program" or "minimum school program"
319 means public school programs for kindergarten, elementary, and secondary schools as
320 described in this Subsection (5).
321 (b) The minimum school program established in the districts shall include the
322 equivalent of a school term of nine months as determined by the State Board of Education.
323 (c) (i) The board shall establish the number of days or equivalent instructional hours
324 that school is held for an academic school year.
325 (ii) Education, enhanced by utilization of technologically enriched delivery systems,
326 when approved by local school boards, shall receive full support by the State Board of
327 Education as it pertains to fulfilling the attendance requirements, excluding time spent viewing
328 commercial advertising.
329 (d) The program [shall be operated and maintained for] includes the total of the
330 following annual costs:
331 (i) the cost of a basic state-supported school program; and
332 (ii) other amounts appropriated in this chapter [17a] in addition to the basic program[;
333 and].
334 [(iii) school construction aid programs authorized under Title 53A, Chapter 21, Public
335 Education Capital Outlay Act.]

336 (6) "Weighted pupil unit or units or WPU or WPUs" means the unit of measure of
337 factors that is computed in accordance with this chapter for the purpose of determining the
338 costs of a program on a uniform basis for each district.
339 Section 6. Section 53A-17a-104 is amended to read:
340 53A-17a-104. Amount of state's contribution toward minimum school program.
341 (1) The total contribution of the state toward the cost of the [operation and
342 maintenance portion of the] minimum school program may not exceed the sum of
343 [$1,581,482,794] $1,611,343,274 for the fiscal year beginning July 1, [2002] 2003, except as
344 otherwise provided by the Legislature through supplemental appropriations.
345 (2) [It is intended that the funds provided are] There is appropriated to the State Board
346 of Education for distribution to school districts and charter schools, in accordance with this
347 chapter, monies for the following purposes and in the following amounts:
348 [Estimated State and]
349 [Local Funds at]
350 [Estimated $2,132]
351 [Weighted Purpose Per Weighted]
352 [Pupil Units State Contribution Pupil Unit]
353 [20,097 Basic program - kindergarten. $42,846,804]
354 [429,871 Basic program - grades 1-12. $916,484,972]
355 [41,187 Basic program - professional staff. $87,810,684]
356 [1,655 Basic program - administrative costs. $3,528,460]
357 [7,386 Basic program - necessarily existent small $15,746,952]
358 [schools and units for consolidated schools.]
359 [52,997 Special education - regular program $112,989,604]
360 [- add-on WPUs for students with disabilities.]
361 [6,146 Preschool Special Education Program. $13,103,272]
362 [12,542 Self-contained regular WPUs. $26,739,544]
363 [238 Extended year program for severely disabled. $507,416]
364 [1,358 Special education - state programs. $2,895,256]
365 [23,566 Applied technology and technical education $50,242,712]
366 [district programs.]

367 [995 Applied technology district set-aside. $2,121,340]
368 [29,757 Class size reduction. $63,441,924]
369 [627,795 TOTAL OF ALL ABOVE PROGRAMS $1,338,458,940]
370 [Social Security and retirement programs. $217,072,218]
371 [Pupil Transportation to and from school. $56,164,040]
372 [Guarantee Transportation Levy. $500,000]
373 [Local Discretionary Block Grant Program. $21,824,448]
374 [Interventions for Student Success Block]
375 [Grant Program $15,553,062]
376 [Quality Teaching Block Grant Program $64,178,111]
377 [Math and Science - Beginning]
378 [Teacher Recruitment. $500,000]
379 [Highly Impacted Schools. $5,123,207]
380 [At-risk Programs. $24,324,161]
381 [Adult Education. $8,431,047]
382 [Accelerated Learning Programs. $8,622,674]
383 [Experimental and Developmental Program. $602,369]
384 [Electronic High School. $400,000]
385 [School LAND Trust Program. $6,000,000]
386 [State-supported voted leeway. $141,682,087]
387 [State-supported board leeway. $41,465,445]
388 [Total estimated contributions to $1,950,901,809]
389 [school districts for all programs.]
390 [Less estimated proceeds from $369,419,015]
391 [state-supported local levies.]
392 [TOTAL STATE FUNDS $1,581,482,794]
393 (a) basic program - kindergarten, $43,930,950 (20,433 WPUs);
394 (b) basic program - grades 1-12, $930,195,350 (432,649 WPUs);
395 (c) basic program - professional staff, $89,328,200 (41,548 WPUs);
396 (d) basic program - administrative costs, $3,558,250 (1,655 WPUs);
397 (e) basic program - necessarily existent small schools and units for consolidated

398 schools, $16,193,800 (7,532 WPUs);
399 (f) special education - regular program - add-on WPUs for students with disabilities,
400 $115,001,350 (53,489 WPUs);
401 (g) preschool special education program, $13,478,350 (6,269 WPUs);
402 (h) self-contained regular WPUs, $26,696,550 (12,417 WPUs);
403 (i) extended year program for severely disabled, $690,150 (321 WPUs);
404 (j) special education programs in state institutions and district impact aid, $2,919,700
405 (1,358 WPUs);
406 (k) applied technology and technical education district programs, $50,198,200 (23,348
407 WPUs), including $915,861 for summer applied technology agriculture programs;
408 (l) applied technology district set-aside, $2,139,250 (995 WPUs);
409 (m) class size reduction, $63,977,550 (29,757 WPUs);
410 (n) Social Security and retirement programs, $232,739,964;
411 (o) pupil transportation to and from school, $56,245,567, of which not less than
412 $1,952,878 shall be allocated to the Utah Schools for the Deaf and Blind to pay for
413 transportation costs of the schools' students;
414 (p) guarantee transportation levy, $500,000;
415 (q) Local Discretionary Block Grant Program, $21,824,448;
416 (r) Interventions for Student Success Block Grant Program, $15,308,708, of which
417 $400,000 shall be used for special intervention summer programs;
418 (s) Quality Teaching Block Grant Program, $57,426,623;
419 (t) math and science - beginning teacher recruitment, $600,000;
420 (u) highly impacted schools, $5,123,207;
421 (v) at-risk programs, $24,778,484;
422 (w) adult education, $5,826,865;
423 (x) accelerated learning programs, $8,695,104;
424 (y) electronic high school, $400,000;
425 (z) School LAND Trust Program, $10,050,000;
426 (aa) state-supported voted leeway, $149,234,487;
427 (bb) state-supported board leeway, $43,367,832; and
428 (cc) charter schools, pursuant to Section 53A-1a-513 , $2,377,172.

429 Section 7. Section 53A-17a-111 is amended to read:
430 53A-17a-111. Weighted pupil units for programs for students with disabilities --
431 District allocation.
432 [(1) There is appropriated to the State Board of Education for the fiscal year beginning
433 July 1, 2002, $156,235,092 (73,281 weighted pupil units) for allocation to local school board
434 programs for students with disabilities.]
435 [(2) Included in the appropriation is $112,989,604 for add-on WPUs for students with
436 disabilities enrolled in regular programs.]
437 [(3)] (1) The number of weighted pupil units for students with disabilities shall reflect
438 the direct cost of programs for those students conducted in accordance with rules established by
439 the State Board of Education in accordance with Title 63, Chapter 46a, Utah Administrative
440 Rulemaking Act.
441 [(4)] (2) Disability program monies allocated to districts are restricted and shall be
442 spent for the education of students with disabilities but may include expenditures for approved
443 programs of services conducted for certified instructional personnel who have students with
444 disabilities in their classes.
445 [(5)] (3) The State Board of Education shall establish and strictly interpret definitions
446 and provide standards for determining which students have disabilities and shall assist districts
447 in determining the services that should be provided to students with disabilities.
448 [(6)] (4) Each year the board shall evaluate the standards and guidelines that establish
449 the identifying criteria for disability classifications to assure strict compliance with those
450 standards by the districts.
451 [(7)] (5) (a) [Each district shall receive its allocation of monies] Monies appropriated
452 [in Subsection 53A-17a-111 (2)] to the State Board of Education in Section 53A-17a-104 for
453 add-on WPUs for students with disabilities enrolled in regular programs shall be allocated to
454 school districts as provided in this Subsection (5).
455 [(a) The] (b) Beginning on July 1, 2003, the State Board of Education shall:
456 (i) use [the total] a district's average number of special education add-on weighted
457 pupil units [used to fund fiscal year 1989-90] determined by the previous five year's average
458 daily membership data as a foundation for the special education add-on appropriation[.]; and
459 (ii) implement a hold harmless provision for up to three years as needed to accomplish

460 a phase-in period for school districts to accommodate the change in the special education
461 add-on WPUs foundation formula.
462 [(b)] (c) A district's special education add-on WPUs for the current year may not be
463 less than the foundation special education add-on WPUs.
464 [(8)] (d) [When monies appropriated under this chapter fund the foundation weighted
465 pupil units, as outlined in Subsection (7)(a), growth] Growth WPUs shall be added to the prior
466 year special education add-on WPUs, and growth WPUs shall be determined as follows:
467 [(a)] (i) The special education student growth factor is calculated by comparing S-3
468 total special education ADM of two years previous to the current year to the S-3 total special
469 education ADM three years previous to the current year, not to exceed the official October total
470 district growth factor from the prior year.
471 [(b)] (ii) When calculating and applying the growth factor, a district's S-3 total special
472 education ADM for a given year is limited to 12.18% of the district's S-3 total student ADM
473 for the same year.
474 [(c)] (iii) Growth ADMs are calculated by applying the growth factor [in Subsection
475 (8)(a)] to the S-3 total special education ADM of two years previous to the current year.
476 [(d)] (iv) Growth ADMs for each district [in Subsection (8)(c)] are multiplied by 1.53
477 weighted pupil units and added to the prior year special education add-on WPU to determine
478 each district's total allocation.
479 [(9)] (6) If monies appropriated under this chapter for programs for students with
480 disabilities do not meet the costs of districts for those programs, each district shall first receive
481 the amount generated for each student with a disability under the basic program.
482 Section 8. Section 53A-17a-112 is amended to read:
483 53A-17a-112. Preschool special education appropriation -- Extended year
484 program appropriation -- Appropriation for special education programs in state
485 institutions.
486 [(1) Included in the $156,235,092 appropriation under Section 53A-17a-111 is:]
487 [(a) an amount of $13,103,272 for preschool special education programs;]
488 [(b) an amount of $26,739,544 for self-contained regular WPU special education
489 programs;]
490 [(c) an amount of $507,416 for extended year programs for the severely disabled; and]

491 [(d) an amount of $2,895,256 for special education programs in state institutions and
492 for district impact aid.]
493 [(2)] (1) (a) [The amount designated] Money appropriated to the State Board of
494 Education for the preschool special education program [under Subsection (1)(a) is] in Section
495 53A-17a-104 shall be allocated to school districts to provide a free, appropriate public
496 education to preschool students with a disability, ages three through five.
497 (b) The monies [are] shall be distributed on the basis of a school district's previous year
498 December 1 disabled preschool child count as mandated by federal law.
499 (3) [The] Monies appropriated for the extended school year program for the severely
500 disabled [is] in Section 53A-17a-104 shall be limited to students with severe disabilities with
501 education program goals identifying significant regression and recoupment disability as
502 approved by the State Board of Education.
503 (4) (a) [The monies] Monies appropriated in Section 53A-17a-104 for self-contained
504 regular special education programs may not be used to supplement other school programs.
505 (b) Monies in any of the other restricted line item appropriations may not be reduced
506 more than 2% to be used for purposes other than those specified by the appropriation, unless
507 otherwise provided by law.
508 (5) (a) The State Board of Education shall compute preschool funding by a factor of
509 1.47 times the current December 1 child count of eligible preschool aged three, four, and
510 five-year-olds times the WPU value, limited to 8% growth over the prior year December 1
511 count.
512 (b) The board shall develop guidelines to implement the funding formula for preschool
513 special education, and establish prevalence limits for distribution of the monies.
514 Section 9. Section 53A-17a-113 is amended to read:
515 53A-17a-113. Weighted pupil units for applied technology education programs --
516 Funding of approved programs -- Performance measures -- Qualifying criteria.
517 [(1) (a) There is appropriated to the State Board of Education for the fiscal year
518 beginning July 1, 2002, $50,242,712 (23,566 weighted pupil units) to pay for approved applied
519 technology education programs and the comprehensive guidance program.]
520 [(b) Included in the appropriation is $908,232 (426 weighted pupil units) for summer
521 applied technology agriculture programs.]

522 [(c) The money appropriated in this Subsection (1):]
523 (1) (a) Money appropriated to the State Board of Education in Section 53A-17a-104 for
524 approved applied technology programs and the comprehensive guidance program:
525 (i) shall be allocated to eligible recipients as provided in Subsections (2), (3), and (4);
526 and
527 (ii) may not be used to fund programs below the ninth grade level.
528 (b) Subsection (1)(a)(ii) does not apply to the following programs:
529 (i) comprehensive guidance;
530 (ii) Technology-Life-Careers; and
531 (iii) work-based learning programs.
532 (2) (a) Weighted pupil units are computed for pupils in approved programs.
533 [(a)] (b) (i) The board shall fund approved programs based upon hours of membership
534 of 9th through 12th grade students.
535 (ii) Subsection (2)(b)(i) does not apply to the following programs:
536 (A) comprehensive guidance;
537 (B) Technology-Life-Careers; and
538 (C) work-based learning programs.
539 [(b)] (c) The board shall use an amount not to exceed 20% of the total appropriation
540 under this section to fund approved programs based on performance measures such as
541 placement and competency attainment defined in standards set by the board.
542 [(c)] (d) Leadership organization funds shall constitute an amount not to exceed 1% of
543 the total appropriation under this section, and shall be distributed to each local educational
544 agency sponsoring applied technology student leadership organizations based on the agency's
545 share of the state's total membership in those organizations.
546 [(d)] (e) The board shall make the necessary calculations for distribution of the
547 appropriation to school districts and may revise and recommend changes necessary for
548 achieving equity and ease of administration.
549 (3) (a) Twenty weighted pupil units shall be computed for applied technology
550 education administrative costs for each district, except 25 weighted pupil units may be
551 computed for each district that consolidates applied technology administrative services with
552 one or more other districts.

553 (b) Between 10 and 25 weighted pupil units shall be computed for each high school
554 conducting approved applied technology education programs in a district according to
555 standards established by the board.
556 (c) Forty weighted pupil units shall be computed for each district that operates an
557 approved district applied technology center.
558 (d) Between five and seven weighted pupil units shall be computed for each summer
559 applied technology agriculture program according to standards established by the board.
560 (e) The board shall, by rule, establish qualifying criteria for districts to receive
561 weighted pupil units under this Subsection (3).
562 (4) (a) Monies remaining after the allocations made under Subsections (2) and (3) shall
563 be allocated using average daily membership in approved programs for the previous year.
564 (b) A district that has experienced student growth in grades 9 through 12 for the
565 previous year shall have the growth factor applied to the previous year's weighted pupil units
566 when calculating the allocation of monies under this Subsection (4).
567 (5) (a) The board shall establish rules for the upgrading of high school applied
568 technology education programs.
569 (b) The rules shall reflect technical training and actual marketable job skills in society.
570 (c) The rules shall include procedures to assist school districts to convert existing
571 programs which are not preparing students for the job market into programs that will
572 accomplish that purpose.
573 (6) Programs that do not meet board standards may not be funded under this section.
574 Section 10. Section 53A-17a-116 is amended to read:
575 53A-17a-116. Weighted pupil units for applied technology set-aside programs.
576 [(1) There is appropriated to the State Board of Education for the fiscal year beginning
577 July 1, 2002, $2,121,340 (995 weighted pupil units) for an applied technology set-aside
578 program.]
579 [(2)] (1) Each district shall receive a guaranteed minimum allocation from the monies
580 appropriated [in Subsection (1)] to the State Board of Education in Section 53A-17a-104 for an
581 applied technology set-aside program.
582 [(3)] (2) The set-aside funds remaining after the initial minimum payment allocation
583 are distributed by an RFP process to help pay for equipment costs necessary to initiate new

584 programs and for high priority programs as determined by labor market information.
585 Section 11. Section 53A-17a-119 is amended to read:
586 53A-17a-119. Appropriation for adult education programs.
587 (1) [There is] Money appropriated to the State Board of Education [for the fiscal year
588 beginning July 1, 2002, $8,431,047 for allocation to local school boards] in Section
589 53A-17a-104 for adult education [programs, consisting of] shall be allocated to local school
590 boards for adult high school completion and adult basic skills programs.
591 (2) Each district shall receive its pro rata share of the appropriation for adult high
592 school completion programs based on the number of people listed in the latest official census
593 who are over 18 years of age and who do not have a high school diploma and prior year
594 participation or as approved by board rule.
595 (3) On February 1 of each school year, the State Board of Education shall recapture
596 monies not used for an adult high school completion program for reallocation to districts that
597 have implemented programs based on need and effort as determined by the board.
598 (4) To the extent of monies available, school districts shall provide programs to adults
599 who do not have a diploma and who intend to graduate from high school, with particular
600 emphasis on homeless individuals who are seeking literacy and life skills.
601 (5) Overruns in adult education in any district may not reduce the value of the weighted
602 pupil unit for this program in another district.
603 (6) The board shall provide the Legislature with a recommendation as to if and when
604 any fees should be charged for participation in the adult high school completion programs
605 funded under this section.
606 (7) School districts shall spend money on adult basic skills programs according to
607 standards established by the board.
608 Section 12. Section 53A-17a-120 is amended to read:
609 53A-17a-120. Appropriation for accelerated learning programs.
610 (1) [There is] Money appropriated to the State Board of Education [for the fiscal year
611 beginning July 1, 2002, $8,622,674 for allocation to local school boards] in Section
612 53A-17a-104 for accelerated learning programs [in grades one through 12, which include] shall
613 be allocated to local school boards for the following programs:
614 (a) programs in grades 1-12 for the gifted and talented[,];

615 (b) concurrent enrollment[,]; and
616 (c) advanced placement.
617 (2) (a) A school participating in the concurrent enrollment programs offered under
618 Section 53A-15-101 shall receive on a per student basis up to $33.33 per quarter hour or $50
619 per semester hour for each hour of higher education course work undertaken at the school.
620 (b) Each year the amounts specified in Subsection (2)(a) shall be adjusted in proportion
621 to the increase in the value of the weighted pupil unit from the prior year established in
622 Subsection 53A-17a-103 (1).
623 (3) (a) Districts shall spend monies for these programs according to rules established
624 by the State Board of Education in accordance with Title 63, Chapter 46a, Utah Administrative
625 Rulemaking Act.
626 (b) The State Board of Education shall develop uniform and consistent policies for
627 school districts to follow in utilizing advanced placement and concurrent enrollment monies.
628 Section 13. Section 53A-17a-121 is amended to read:
629 53A-17a-121. Appropriation for at-risk programs.
630 (1) [There is] Money appropriated to the State Board of Education [for the fiscal year
631 beginning July 1, 2002, $24,324,161 for allocation to local school boards] in Section
632 53A-17a-104 for at-risk programs[, including] shall be allocated to local school boards for the
633 following programs:
634 (a) youth in custody;
635 (b) homeless and disadvantaged minority students;
636 (c) mathematics, engineering, and science achievement programs;
637 (d) gang prevention and intervention; and
638 (e) at-risk flow through.
639 (2) Districts shall spend monies for these programs according to rules established by
640 the State Board of Education in accordance with Title 63, Chapter 46a, Utah Administrative
641 Rulemaking Act.
642 (3) (a) From the amount appropriated for youth at risk programs, the board shall
643 allocate moneys to school districts for homeless and disadvantaged minority students.
644 (b) Each district shall receive its allocation on the basis of:
645 (i) the total number of homeless students in the district;

646 (ii) added to 50% of the number of disadvantaged minority students in the district;
647 (iii) multiplying the total of Subsections (3)(b)(i) and (ii) by the value of the weighted
648 pupil unit; and
649 (iv) prorating the amount under Subsection (3)(b)(iii) to the amount in Subsection
650 (3)(a).
651 (4) (a) From the amount appropriated for at-risk programs, the board shall allocate
652 monies for mathematics, engineering, and science achievement programs, MESA programs, in
653 the districts.
654 (b) The board shall make the distribution to school districts on a competitive basis by
655 application under guidelines established by the board.
656 (5) (a) From the amount appropriated for at-risk programs, the board shall distribute
657 moneys for gang prevention and intervention programs at the district or school level.
658 (b) The board shall make the distribution to school districts under guidelines
659 established by the board consistent with Section 53A-15-601 .
660 (6) (a) From the amount appropriated for at-risk programs, the board shall distribute
661 moneys for programs for youth in custody.
662 (b) The board shall allocate these moneys to school districts which operate programs
663 for youth in custody in accordance with standards established by the board.
664 (7) From the amount appropriated for at-risk programs, the board shall allocate monies
665 based on:
666 (a) a formula which takes into account prior year WPU's per district and a district's low
667 income population; and
668 (b) a minimum base of no less than $18,600 for small school districts.
669 Section 14. Section 53A-17a-123 is amended to read:
670 53A-17a-123. Local Discretionary Block Grant Program -- State contribution.
671 [(1) There is appropriated to the State Board of Education for the fiscal year beginning
672 July 1, 2002, $21,824,448 for the Local Discretionary Block Grant Program.]
673 [(2)] (1) The State Board of Education shall distribute [the] money appropriated [in
674 Subsection (1)] for the Local Discretionary Block Grant Program in Section 53A-17a-104 to
675 school districts and charter schools according to a formula adopted by the board, after
676 consultation with school districts and charter schools, that allocates the funding in a fair and

677 equitable manner.
678 [(3)] (2) Schools districts and charter schools shall use Local Discretionary Block
679 Grant monies for:
680 (a) maintenance and operation costs;
681 (b) capital outlay; [and] or
682 (c) debt service.
683 Section 15. Section 53A-17a-123.5 is amended to read:
684 53A-17a-123.5. Interventions for Student Success Block Grant Program -- State
685 contribution.
686 [(1) There is appropriated to the State Board of Education for the fiscal year beginning
687 July 1, 2002, $15,553,062 for the Interventions for Student Success Block Grant Program.]
688 [(2)] (1) The State Board of Education shall distribute [the] money appropriated [in
689 Subsection (1)] for the Interventions for Student Success Block Grant Program in Section
690 53A-17a-104 to school districts and charter schools according to a formula adopted by the
691 board, after consultation with school districts and charter schools, that allocates the funding in
692 a fair and equitable manner.
693 [(3)] (2) Schools districts and charter schools shall use Interventions for Student
694 Success Block Grant monies to improve student academic success, with priority given to
695 interventions on behalf of students not performing to standards as determined by U-PASS test
696 results.
697 [(4)] (3) (a) Each school district shall develop a plan for the expenditure of
698 Interventions for Student Success Block Grant monies.
699 (b) The plan:
700 (i) shall specify anticipated results; and
701 (ii) may include continuing existing programs to improve students' academic success
702 for which funds were appropriated before the establishment of the block grant.
703 (c) The local school board shall approve the plan for the expenditure of the block grant
704 monies in an open public meeting before the monies are spent.
705 Section 16. Section 53A-17a-124 is amended to read:
706 53A-17a-124. Quality Teaching Block Grant Program -- State contributions.
707 [(1) There is appropriated to the State Board of Education for the fiscal year beginning

708 July 1, 2002, $64,178,111 for the Quality Teaching Block Grant Program.]
709 [(2)] (1) The State Board of Education shall distribute [the] money appropriated [in
710 Subsection (1)] for the Quality Teaching Block Grant Program in Section 53A-17a-104 to
711 school districts and charter schools according to a formula adopted by the board, after
712 consultation with school districts and charter schools, that allocates the funding in a fair and
713 equitable manner.
714 [(3)] (2) (a) Schools districts and charter schools shall use Quality Teaching Block
715 Grant monies to implement school and school district comprehensive, long-term professional
716 development plans required by Section 53A-3-701 .
717 (b) In recognition of exceptional quality teaching, Quality Teaching Block Grant
718 monies may be used for the award of individual Quality Teaching Bonuses for Exemplary
719 Teachers to recognize and reward excellence in classrooms as determined by school principals
720 in partnership with their school community councils.
721 [(4)] (3) Each local school board shall:
722 (a) as provided by Section 53A-3-701 , review and either approve or recommend
723 modifications for each school's comprehensive, long-term professional development plan
724 within the district so that each school's plan is compatible with the district's comprehensive,
725 long-term professional development plan; and
726 (b) in an open public meeting, approve a plan to spend Quality Teaching Block Grant
727 monies to implement the school district's comprehensive, long-term professional development
728 plan.
729 Section 17. Section 53A-17a-124.5 is amended to read:
730 53A-17a-124.5. Appropriation for class size reduction.
731 (1) [There is] Money appropriated to the State Board of Education [for the fiscal year
732 beginning July 1, 2002, $63,441,924 (29,757 weighted pupil units)] in Section 53A-17a-104
733 for class size reduction shall be used to reduce the average class size in kindergarten through
734 the eighth grade in the state's public schools.
735 (2) Each district shall receive its allocation based upon prior year average daily
736 membership in kindergarten through grade eight plus growth as determined under Subsection
737 53A-17a-106 (3) as compared to the state total.
738 (3) (a) A district may use its allocation to reduce class size in any one or all of the

739 grades referred to under this section, except as otherwise provided in Subsection (3)(b).
740 (b) (i) Each district shall use 50% of its allocation to reduce class size in any one or all
741 of grades kindergarten through grade two, with an emphasis on improving student reading
742 skills.
743 (ii) If a district's average class size is below 18 in grades kindergarten through two, it
744 may petition the state board for, and the state board may grant, a waiver to use its allocation
745 under Subsection (3)(b)(i) for class size reduction in the other grades.
746 (4) Schools may use nontraditional innovative and creative methods to reduce class
747 sizes with this appropriation and may use part of their allocation to focus on class size
748 reduction for specific groups, such as at risk students, or for specific blocks of time during the
749 school day.
750 (5) (a) A school district may use up to 20% of its allocation under Subsection (1) for
751 capital facilities projects if such projects would help to reduce class size.
752 (b) If a school district's student population increases by 5% or 700 students from the
753 previous school year, the school district may use up to 50% of any allocation it receives under
754 this section for classroom construction.
755 (6) This appropriation is to supplement any other appropriation made for class size
756 reduction.
757 (7) (a) The State Board of Education shall compile information on class size, both in
758 average student-teacher ratios and in actual number of students enrolled in each classroom by
759 grade level for elementary grades and by subject matter for secondary grades.
760 (b) The State Board of Education shall establish uniform class size reporting rules
761 among districts.
762 (c) Provisions may be made for explaining special circumstances where class size
763 exceeds or is below normal distributions.
764 (8) (a) Each school district shall provide annually to the state superintendent of public
765 instruction a summary report on the overall district plan for utilizing class size reduction funds
766 provided by the Legislature.
767 (b) If the district has received new additional class size reduction funds during the
768 previous year, the district shall report data identifying how:
769 (i) the use of the funds complies with legislative intent; and

770 (ii) the use of the funds supplements the district's class size reduction plan.
771 (9) The Legislature shall provide for an annual adjustment in the appropriation
772 authorized under this section in proportion to the increase in the number of students in the state
773 in kindergarten through grade eight.
774 Section 18. Section 53A-17a-125 is amended to read:
775 53A-17a-125. Appropriation for retirement and Social Security.
776 [(1) There is appropriated to the State Board of Education for the fiscal year beginning
777 July 1, 2002, $217,072,218 for retirement and social security costs.]
778 [(2)] (1) The employee's retirement contribution shall be 1% for employees who are
779 under the state's contributory retirement program.
780 [(3)] (2) The employer's contribution under the state's contributory retirement program
781 is determined under Section 49-12-301 , subject to the 1% contribution under Subsection [(2)]
782 (1).
783 [(4)] (3) The employer-employee contribution rate for employees who are under the
784 state's noncontributory retirement program is determined under Section 49-13-301 .
785 [(5)] (4) (a) [Each school district shall receive its share of] Money appropriated to the
786 State Board of Education in Section 53A-17a-104 for retirement and Social Security monies
787 shall be allocated to school districts based on [its] a district's total weighted pupil units
788 compared to the total weighted pupil units for all districts in the state.
789 (b) The monies needed to support retirement and Social Security shall be determined
790 by taking the district's prior year allocation and adjusting it for:
791 (i) student growth;
792 (ii) the percentage increase in the value of the weighted pupil unit; and
793 (iii) the effect of any change in the rates for retirement, Social Security, or both.
794 Section 19. Section 53A-17a-126 is amended to read:
795 53A-17a-126. State support of pupil transportation.
796 (1) [The state's contribution of $56,164,040] Money appropriated to the State Board of
797 Education in Section 53A-17a-104 for state-supported transportation of public school students
798 [for the fiscal year beginning on July 1, 2002, is] shall be apportioned and distributed in
799 accordance with Section 53A-17a-127 , except as otherwise provided in this section.
800 [(2) (a) Included in the appropriation under Subsection (1) is an amount not less than

801 $1,936,610 to be deducted prior to any other distribution under this section to school districts,
802 and allocated to the Utah Schools for the Deaf and the Blind to pay transportation costs of the
803 schools' students.]
804 [(b)] (2) (a) The Utah Schools for the Deaf and the Blind shall [utilize these funds] use
805 money appropriated in Section 53A-17a-104 to pay for transportation of their students based on
806 current valid contractual arrangements and best transportation options and methods as
807 determined by the schools.
808 [(c)] (b) All student transportation costs of the schools shall be paid from the allocation
809 of pupil transportation monies received under [Subsection (2)] Section 53A-17a-104 .
810 (3) Each district shall receive its approved transportation costs, except that if during the
811 fiscal year the total transportation allowance for all districts exceeds the amount appropriated,
812 all allowances shall be reduced pro rata to equal not more than that amount.
813 [(4) Included in the appropriation under Subsection (1) is an amount of $187,000 for
814 transportation of students, as approved by the state board, for school districts that consolidate
815 schools, implement double session programs at the elementary level, or utilize other
816 alternatives to building construction that require additional student transportation.]
817 [(5) (a) Part of the state's contribution for transportation, not to exceed $200,000, may
818 be used as an incentive for districts to increase economy and productivity in student
819 transportation.]
820 [(b) This amount is distributed on a pro rata basis among districts which have achieved
821 the most efficiency according to the state formula.]
822 [(c) Districts receiving the incentive funding may expend the monies at the discretion
823 of the local school board.]
824 [(6)] (4) (a) Local school boards shall provide salary adjustments to employee groups
825 that work with the transportation of students comparable to those of classified employees
826 authorized under Section 53A-17a-137 , when dividing the weighted pupil unit for salary
827 adjustment purposes.
828 (b) The State Board of Education shall conduct a study to evaluate the reimbursement
829 system of funding for pupil transportation with emphasis on looking at methodologies that will
830 provide incentives for districts that will encourage economical practices.
831 Section 20. Section 53A-17a-131.15 is amended to read:

832 53A-17a-131.15. State contribution for the Electronic High School.
833 [The state's contribution of $400,000 for the Electronic High School for the fiscal year
834 beginning July 1, 2002, is] Money appropriated to the State Board of Education [for
835 distribution] in Section 53A-17a-104 for the Electronic High School shall be distributed to the
836 school according to rules established by the board in accordance with Title 63, Chapter 46a,
837 Utah Administrative Rulemaking Act.
838 Section 21. Section 53A-17a-131.17 is amended to read:
839 53A-17a-131.17. State contribution for School LAND Trust Program.
840 (1) (a) Except as provided in Subsection (1)(b), there is appropriated [$6,000,000]
841 $10,050,000 to the State Board of Education as the state's contribution for the School LAND
842 Trust Program for the fiscal year beginning July 1, [2002] 2003.
843 [(b) If the amount of money in the Uniform School Fund described in Subsection
844 53A-16-101.5 (2) is less than or greater than $6,000,000, the appropriation shall be equal to the
845 amount of money in the Uniform School Fund described in Subsection 53A-16-101.5 (2).]
846 (b) If the amount of money in the Uniform School Fund described in Subsection
847 53A-16-101.5( 2) is less than or greater than $10,050,000, the appropriation shall be equal to
848 the amount of money in the Uniform School Fund described in Subsection 53A-16-101.5 (2),
849 up to a maximum of $12,000,000.
850 (2) The State Board of Education shall distribute the money appropriated in Subsection
851 (1) in accordance with Section 53A-16-101.5 and rules established by the board in accordance
852 with Title 63, Chapter 46a, Utah Administrative Rulemaking Act.
853 Section 22. Section 53A-17a-133 is amended to read:
854 53A-17a-133. State-supported voted leeway program authorized -- Election
855 requirements -- State guarantee -- Reconsideration of the program.
856 (1) An election to consider adoption or modification of a voted leeway program is
857 required if initiative petitions signed by 10% of the number of electors who voted at the last
858 preceding general election are presented to the local school board or by action of the board.
859 (2) (a) (i) To establish a voted leeway program, a majority of the electors of a district
860 voting at an election in the manner set forth in Section 53A-16-110 must vote in favor of a
861 special tax.
862 (ii) The tax rate may not exceed .002 per dollar of taxable value.

863 (b) The district may maintain a school program which exceeds the cost of the program
864 referred to in Section 53A-17a-145 with this voted leeway.
865 (c) In order to receive state support the first year, a district must receive voter approval
866 no later than December 1 of the year prior to implementation.
867 [(d) The additional program is the state-supported voted leeway program of the
868 district.]
869 (3) (a) Under the voted leeway program, the state shall contribute an amount sufficient
870 to guarantee $17.14 per weighted pupil unit for each .0001 of the first .0016 per dollar of
871 taxable value.
872 (b) The same dollar amount guarantee per weighted pupil unit for the .0016 per dollar
873 of taxable value under Subsection (3)(a) shall apply to the board-approved leeway authorized
874 in Section 53A-17a-134 , so that the guarantee shall apply up to a total of .002 per dollar of
875 taxable value if a school district levies a tax rate under both programs.
876 (c) (i) Beginning July 1, [2003] 2004, the $17.14 guarantee under Subsections (3)(a)
877 and (b) shall be indexed each year to the value of the weighted pupil unit by making the value
878 of the guarantee equal to .008544 times the value of the prior year's weighted pupil unit.
879 (ii) The guarantee shall increase by .0005 times the value of the prior year's weighted
880 pupil unit for each succeeding year until the guarantee is equal to .010544 times the value of
881 the prior year's weighted pupil unit.
882 (d) (i) The amount of state guarantee money to which a school district would otherwise
883 be entitled to under this Subsection (3) may not be reduced for the sole reason that the district's
884 levy is reduced as a consequence of changes in the certified tax rate under Section 59-2-924
885 pursuant to changes in property valuation.
886 (ii) Subsection (3)(d)(i) applies for a period of two years following any such change in
887 the certified tax rate.
888 (4) (a) An election to modify an existing voted leeway program is not a reconsideration
889 of the existing program unless the proposition submitted to the electors expressly so states.
890 (b) A majority vote opposing a modification does not deprive the district of authority to
891 continue an existing program.
892 (c) If adoption of a leeway program is contingent upon an offset reducing other local
893 school board levies, the board must allow the electors, in an election, to consider modifying or

894 discontinuing the program prior to a subsequent increase in other levies that would increase the
895 total local school board levy.
896 (d) Nothing contained in this section terminates, without an election, the authority of a
897 school district to continue an existing voted leeway program previously authorized by the
898 voters.
899 Section 23. Section 53A-17a-135 is amended to read:
900 53A-17a-135. Minimum basic tax rate -- Certified revenue levy.
901 (1) (a) In order to qualify for receipt of the state contribution toward the basic program
902 and as its contribution toward its costs of the basic program, each school district shall impose a
903 minimum basic tax rate per dollar of taxable value that generates [$206,690,578] $212,110,681
904 in revenues statewide.
905 (b) The preliminary estimate for the [2002-03] 2003-04 minimum basic tax rate is
906 [.001813] .001743.
907 (c) The State Tax Commission shall certify on or before June 22 the rate that generates
908 [$206,690,578] $212,110,681 in revenues statewide.
909 (d) If the minimum basic tax rate exceeds the certified revenue levy as defined in
910 Section [ 59-2-102 ] 53A-17a-103 , the state is subject to the notice requirements of Section
911 59-2-926 .
912 (2) (a) The state shall contribute to each district toward the cost of the basic program in
913 the district that portion which exceeds the proceeds of the levy authorized under Subsection
914 (1).
915 (b) In accord with the state strategic plan for public education and to fulfill its
916 responsibility for the development and implementation of that plan, the Legislature instructs
917 the State Board of Education, the governor, and the Office of Legislative Fiscal Analyst in each
918 of the coming five years to develop budgets that will fully fund student enrollment growth.
919 (3) (a) If the proceeds of the levy authorized under Subsection (1) equal or exceed the
920 cost of the basic program in a school district, no state contribution shall be made to the basic
921 program.
922 (b) The proceeds of the levy authorized under Subsection (1) which exceed the cost of
923 the basic program shall be paid into the Uniform School Fund as provided by law.
924 Section 24. Section 53A-17a-148 is amended to read:

925 53A-17a-148. Use of nonlapsing balances.
926 S (1) s For the fiscal year beginning on July 1, [2002] 2003, the State Board of Education may
927 use up to $300,000 of nonlapsing balances for the following:
928 S [ (1) ] (a) s to stabilize the value of the weighted pupil unit;
929 S [ (2) ] (b) s to maintain program levels in school districts that may experience unanticipated
930 and unforeseen losses of students;
931 S [ (3) ] (c) s to equalize programs in school districts where a strict application of the law
932 provides inequity;
933 S [ (4) ] (d) s to pay the added cost when students attend school out of state;
934 S [ (5) ] (e) s to assist in the operation of the laboratory school at Utah State University, through
935 the allocation of monies for a career ladder program at the school; and
936 S [ (6) ] (f) s other uses approved by the board.
936a S (2) FOR THE FISCAL YEAR BEGINNING ON JULY 1, 2003, THE STATE BOARD OF EDUCATION
936b MAY USE UP TO $2,500,000 OF UNCOMMITTED NONLAPSING BALANCES FOR ADULT HIGH SCHOOL
936c COMPLETION AND ADULT BASIC SKILL PROGRAMS. s
937 Section 25. Section 53A-17a-149 is enacted to read:
938 53A-17a-149. Funds for classroom supplies.
939 (1) If the interest and dividends deposited in the Uniform School Fund from the
940 investment of monies in the Permanent State School Fund are sufficient to provide the
941 maximum amount of funds to the School LAND Trust Program as provided in Section
942 53A-16-101.5 , the balance of the interest and dividends, up to a maximum of $10,000,000,
943 shall be appropriated by the Legislature for teachers' classroom supplies.
944 (2) (a) Money appropriated for classroom supplies pursuant to Subsection (1) shall be
945 distributed to classroom teachers in school districts, the Schools for the Deaf and the Blind, the
946 Edith Bowen Laboratory School, and charter schools on the basis of the number of classroom
947 teachers in each school as compared to the total number of classroom teachers.
948 (b) Each teacher in grades kindergarten through six shall receive up to $225 and each
949 teacher in grades seven through 12 shall receive up to $175 from the appropriation.
950 (c) Teachers shall spend the money for school supplies, materials, or field trips under
951 rules adopted by the State Board of Education.
952 Section 26. Section 53A-21-102 is amended to read:
953 53A-21-102. Capital Outlay Foundation Program -- Enrollment Growth Program
954 -- Loan Program.
955 (1) [There is established a] The Capital Outlay Foundation Program and the

956 Enrollment Growth Program are established to provide revenues to school districts for the
957 purposes of capital outlay bonding, construction, and renovation.
958 (2) [There is established a] The Capital Outlay Loan Program is established to provide
959 short-term help to school districts to meet district needs for school building construction and
960 renovation.
961 (3) School districts shall use the monies provided to them under the [foundation and
962 loan] programs established by this section solely for school district capital outlay and debt
963 service purposes.
964 Section 27. Section 53A-21-103 is amended to read:
965 53A-21-103. Qualifications for participation in the foundation program --
966 Distribution of monies -- Distribution formulas.
967 (1) In order for a school district to qualify for monies under the Capital Outlay
968 Foundation Program established in Subsection 53A-21-102 (1), a local school board must levy a
969 tax rate of up to .0024 per dollar of taxable value for capital outlay and debt service.
970 (2) [(a)] The State Board of Education shall adopt [a rule] rules in accordance with
971 Title 63, Chapter 46a, Utah Administrative Rulemaking Act, that [allows]:
972 (a) allow a school district levying less than the full .0024 tax rate to receive
973 proportional funding under the foundation program based upon the percentage of the .0024 tax
974 rate levied by the district[.]; and
975 [(b) The rules may include hold harmless provisions for up to two years.]
976 (b) maintain a school district's funding under the Capital Outlay Foundation Program
977 for up to two years if the school district's funding would otherwise be reduced as a consequence
978 of changes in the certified tax rate under Section 59-2-924 due to changes in property
979 valuation.
980 (3) The State Board of Education shall distribute monies in the Capital Outlay
981 Foundation Program in accordance with a formula developed by the state superintendent of
982 public instruction [based on a minimum guarantee per average daily membership as computed
983 by the state superintendent using:] which guarantees that a tax rate of up to .0024 per dollar of
984 taxable value for capital outlay and debt service yields a minimum amount per pupil in average
985 daily membership.
986 [(a) available monies; and]

987 [(b) the assessed valuation per average daily membership in each school district.]
988 Section 28. Section 53A-21-103.5 is enacted to read:
989 53A-21-103.5. Qualifications for participation in the Enrollment Growth Program
990 -- State Board of Education rules -- Distribution formula.
991 (1) (a) In order to qualify for monies under the Enrollment Growth Program established
992 in Section 53A-21-102 , a school district must be a recipient of monies distributed under the
993 Capital Outlay Foundation Program, except as provided in Subsection (1)(b).
994 (b) A school district that is not a recipient of Capital Outlay Foundation Program
995 monies in fiscal year 2003-04, fiscal year 2004-05, or both, may qualify for monies under the
996 Enrollment Growth Program if the school district received Capital Outlay Foundation Program
997 monies in fiscal year 2002-03.
998 (2) (a) The State Board of Education shall distribute monies in the Enrollment Growth
999 Program to qualifying school districts whose average net enrollment for the prior three years is
1000 a net increase in enrollment.
1001 (b) A school district that meets the criteria of Subsection (2)(a) shall receive
1002 Enrollment Growth Program monies in the same proportion that the district's three-year
1003 average net enrollment bears to the total three-year net enrollment of all the districts that meet
1004 the criteria of Subsection (2)(a).
1005 (c) The State Board of Education shall make rules in accordance with Title 63, Chapter
1006 46a, Utah Administrative Rulemaking Act, to administer this section.
1007 Section 29. Section 53A-21-105 is amended to read:
1008 53A-21-105. State contribution to capital outlay programs.
1009 (1) The state contribution toward the cost of the programs established under Section
1010 53A-21-102 for the fiscal year beginning July 1, [2002] 2003, shall consist of an appropriation
1011 totaling [$28,358,000] $27,228,900 to the State Board of Education from the Uniform School
1012 Fund.
1013 (2) Of the monies appropriated in Subsection (1), the State Board of Education shall
1014 distribute:
1015 (a) $24,358,000 in accordance with the Capital Outlay Foundation Program described
1016 in Section 53A-21-103 ; and
1017 (b) $2,930,900 in accordance with the Enrollment Growth Program described in

1018 Section 53A-21-103.5 .
1019 Section 30. Section 59-2-906.1 is amended to read:
1020 59-2-906.1. Property Tax Valuation Agency Fund -- Creation -- Statewide levy --
1021 Additional county levy permitted.
1022 (1) (a) There is created the Property Tax Valuation Agency Fund, to be funded by a
1023 multicounty assessing and collecting levy not to exceed .0003 as provided in Subsection (2).
1024 (b) The multicounty assessing and collecting levy under Subsection (1)(a) shall be
1025 imposed annually by each county in the state.
1026 (c) The purpose of the multicounty assessing and collecting levy created under
1027 Subsection (1)(a) and the disbursement formulas established in Section 59-2-906.2 is to
1028 promote the accurate valuation of property, the establishment and maintenance of uniform
1029 assessment levels within and among counties, and the efficient administration of the property
1030 tax system, including the costs of assessment, collection, and distribution of property taxes.
1031 (d) Income derived from the investment of money in the fund created in this
1032 Subsection (1) shall be deposited in and become part of the fund.
1033 (2) (a) Except as authorized in Subsection (2)(b), beginning in fiscal year 1996-97 to
1034 fund the Property Tax Valuation Agency Fund the Legislature shall authorize the amount of the
1035 multicounty assessing and collecting levy, except that the multicounty assessing and collecting
1036 levy may not exceed the certified revenue levy as defined in Section [ 53A-17a-103 ] 59-2-102 .
1037 (b) If the Legislature authorizes a multicounty assessing and collecting levy that
1038 exceeds the certified revenue levy, it is subject to the notice requirements of Section 59-2-926 .
1039 (c) For the calendar year beginning on January 1, 1998, and ending December 31,
1040 1998, the certified revenue levy shall be increased by the amount necessary to offset the
1041 decrease in revenues from uniform fees on tangible personal property under Section 59-2-405
1042 as a result of the decrease in uniform fees on tangible personal property under Section 59-2-405
1043 enacted by the Legislature during the 1997 Annual General Session.
1044 (d) For the calendar year beginning on January 1, 1999, and ending on December 31,
1045 1999, the certified revenue levy shall be adjusted by the amount necessary to offset the
1046 adjustment in revenues from uniform fees on tangible personal property under Section
1047 59-2-405.1 as a result of the adjustment in uniform fees on tangible personal property under
1048 Section 59-2-405.1 enacted by the Legislature during the 1998 Annual General Session.

1049 (3) (a) The multicounty assessing and collecting levy authorized by the Legislature
1050 under Subsection (2) shall be separately stated on the tax notice as a multicounty assessing and
1051 collecting levy.
1052 (b) The multicounty assessing and collecting levy authorized by the Legislature under
1053 Subsection (2) is:
1054 (i) exempt from the redevelopment provisions of Sections 17B-4-1003 and
1055 17B-4-1004 ;
1056 (ii) in addition to and exempt from the maximum levies allowable under Section
1057 59-2-908 ; and
1058 (iii) exempt from the notice requirements of Sections 59-2-918 and 59-2-919 .
1059 (c) Each county shall transmit quarterly to the state treasurer the portion of the .0003
1060 multicounty assessing and collecting levy which is above the amount to which that county is
1061 entitled to under Section 59-2-906.2 .
1062 (i) The revenue shall be transmitted no later than the tenth day of the month following
1063 the end of the quarter in which the revenue is collected.
1064 (ii) If revenue is transmitted after the tenth day of the month following the end of the
1065 quarter in which the revenue is collected, the county shall pay an interest penalty at the rate of
1066 10% each year until the revenue is transmitted.
1067 (d) The state treasurer shall deposit the revenue from the multicounty assessing and
1068 collecting levy, any interest accrued from that levy, and any penalties received under
1069 Subsection (3)(c) in the Property Tax Valuation Agency Fund.
1070 (4) Each county may levy an additional property tax up to .0002 per dollar of taxable
1071 value of taxable property as reported by each county. This levy shall be stated on the tax notice
1072 as a county assessing and collecting levy.
1073 (a) The purpose of the levy established in this Subsection (4) is to promote the accurate
1074 valuation of property, the establishment and maintenance of uniform assessment levels within
1075 and among counties, and the efficient administration of the property tax system, including the
1076 costs of assessment, collection, and distribution of property taxes.
1077 (b) Any levy established in Subsection (4)(a) is:
1078 (i) exempt from the redevelopment provisions of Sections 17B-4-1003 and
1079 17B-4-1004 ;

1080 (ii) in addition to and exempt from the maximum levies allowable under Section
1081 59-2-908 ; and
1082 (iii) is subject to the notice requirements of Sections 59-2-918 and 59-2-919 .
1083 Section 31. Section 59-2-926 is amended to read:
1084 59-2-926. Proposed tax increase by state -- Notice -- Contents -- Dates.
1085 If the state authorizes a levy pursuant to Section 53A-17a-135 that exceeds the certified
1086 revenue levy as defined in Section 53A-17a-103 or authorizes a levy pursuant to Section
1087 59-2-906.1 that exceeds the certified revenue levy as defined in Section 59-2-102 , the state
1088 shall publish a notice no later than ten days after the last day of the annual legislative general
1089 session that meets the following requirements:
1090 (1) The Office of the Legislative Fiscal Analyst shall advertise that the state authorized
1091 a levy that generates revenue in excess of the previous year's ad valorem tax revenue, plus new
1092 growth, but exclusive of revenue from collections from redemptions, interest, and penalties in a
1093 newspaper of general circulation in the state. The advertisement shall be no less than 1/4 page
1094 in size and the type used shall be no smaller than 18 point, and surrounded by a 1/4-inch
1095 border. The advertisement may not be placed in that portion of the newspaper where legal
1096 notices and classified advertisements appear. The advertisement shall be run once.
1097 (2) The form and content of the notice shall be substantially as follows:
1098 "NOTICE OF TAX INCREASE
1099 The state has budgeted an increase in its property tax revenue from $__________ to
1100 $__________ or ____%. The increase in property tax revenues will come from the following
1101 sources (include all of the following provisions):
1102 (a) $__________ of the increase will come from (provide an explanation of the cause
1103 of adjustment or increased revenues, such as reappraisals or factoring orders);
1104 (b) $__________ of the increase will come from natural increases in the value of the
1105 tax base due to (explain cause of new growth, such as new building activity, annexation, etc.);
1106 (c) a home valued at $100,000 in the state of Utah which based on last year's (levy for
1107 the basic state-supported school program, levy for the Property Tax Valuation Agency Fund, or
1108 both) paid $____________ in property taxes would pay the following:
1109 (i) $__________ if the state of Utah did not budget an increase in property tax revenue
1110 exclusive of new growth; and

1111 (ii) $__________ under the increased property tax revenues exclusive of new growth
1112 budgeted by the state of Utah.
1113 Section 32. Repealer.
1114 This act repeals:
1115 Section 53A-17a-131.2, State contribution to highly impacted schools program.
1116 Section 53A-17a-131.13, State contribution to guarantee transportation levy.
1117 Section 53A-17a-131.19, State contribution to math and science beginning teacher
1118 recruitment program.
1119 Section 53A-17a-132, Experimental and developmental programs.
1120 Section 33. One-time appropriation for classroom supplies.
1121 (1) There is appropriated from the Uniform School Fund to the State Board of
1122 Education, for fiscal year 2003-04 only, $5,000,000 for classroom supplies and materials.
1123 (2) (a) The board shall distribute the appropriation to classroom teachers in school
1124 districts, the Schools for the Deaf and the Blind, the Edith Bowen Laboratory School, and
1125 charter schools on the basis of the number of classroom teachers in each school as compared to
1126 the total number of classroom teachers.
1127 (b) Each teacher in grades kindergarten through six shall receive up to $225 and each
1128 teacher in grades seven through 12 shall receive up to $175 from this appropriation.
1129 (c) Teachers shall spend the money for school supplies, materials, or field trips under
1130 rules adopted by the State Board of Education.
1131 Section 34. Appropriation to University of Utah Reading Clinic.
1132 For the fiscal year beginning July 1, 2003, there is appropriated from the Uniform
1133 School Fund $375,000 to the University of Utah for the University of Utah Reading Clinic.
1134 Section 35. Applied technology study -- School LAND Trust Program study --
1135 Capital outlay funding study.
1136 (1) It is the intent of the Legislature that the Office of the Legislative Fiscal Analyst, in
1137 conjunction with the Governor's Office of Planning and Budget, perform a study of overlapping
1138 applied technology education services of the Utah System of Higher Education, State System
1139 of Public Education, and Utah College of Applied Technology. It is further the intent of the
1140 Legislature that a written report be presented to the Executive Appropriations Committee by
1141 October 2003 and to the appropriate legislative appropriations subcommittees during the 2004

1142 General Session.
1143 (2) It is the intent of the Legislature that the Public Education Appropriations
1144 Subcommittee shall study during the interim the administration of the School LAND Trust
1145 Program, how funding is distributed, and the ongoing appropriation level for the program.
1146 (3) It is the intent of the Legislature that the Public Education Appropriations
1147 Subcommittee shall study during the interim the distribution of capital outlay funding.
1148 Section 36. Effective date.
1149 This act takes effect on July 1, 2003.
1150 Section 37. Coordination clause.
1151 If this bill and H.B. 92, School Funds Amendments, both pass, it is the intent of the
1152 Legislature that the amendments made to Section 53A-16-101.5 in this bill shall supercede the
1153 amendments made to Section 53A-16-101.5 in H.B. 92.