H.B. 177

1

USE OF SCHOOL TRUST LAND MONIES
2 2003 GENERAL SESSION
3 STATE OF UTAH
4 Sponsor: David N. Cox
5 This act modifies provisions related to the State System of Public Education by providing
6 that the portion of the Uniform School Fund consisting of the interest and dividends on
7 the State School Fund shall be used for the School LAND Trust Program and the Capital
8 Outlay Foundation Program. This act takes effect on July 1, 2003.
9 This act affects sections of Utah Code Annotated 1953 as follows:
10 AMENDS:
11 53A-16-101.5, as last amended by Chapter 324, Laws of Utah 2002
12 53A-21-102, as last amended by Chapter 234, Laws of Utah 2001
13 Be it enacted by the Legislature of the state of Utah:
14 Section 1. Section 53A-16-101.5 is amended to read:
15 53A-16-101.5. School LAND Trust Program -- Contents -- Purpose --
16 Distribution of funds -- School plans for use of funds.
17 (1) There is established the School LAND (Learning And Nurturing Development)
18 Trust Program for the state's public schools to provide financial resources to enhance or
19 improve student academic achievement and implement a component of the school
20 improvement plan.
21 (2) (a) The program shall be funded from that portion of the Uniform School Fund
22 consisting of [all] the interest and dividends on the State School Fund [remaining after the
23 deduction of the amount retained in the State School Fund to protect the fund against losses
24 due to inflation as prescribed by the Utah Constitution Article X, Section 5], up to a maximum
25 of $6,000,000.
26 [(3) (a) The] (b) If the amount of money in the Uniform School Fund consisting of the
27 interest and dividends on the State School Fund is less than or equal to $6,000,000, the State

28 Board of Education shall allocate all the money as provided in Subsection (3). If the amount of
29 money in the Uniform School Fund consisting of the interest and dividends on the State School
30 Fund exceeds $6,000,000, the State Board of Education shall allocate $6,000,000 as provided
31 in Subsection (3).
32 (3) (a) The State Board of Education shall allocate the monies referred to in Subsection
33 (2) annually [for the fiscal year beginning July 1, 2000, and for each fiscal year thereafter] as
34 follows:
35 (i) school districts shall receive 10% of the funds on an equal basis; and
36 (ii) the remaining 90% of the funds shall be distributed on a per student basis, with
37 each district receiving its allocation on the number of students in the district as compared to the
38 state total.
39 (b) Each school district shall distribute its allocation under Subsection (3)(a) to each
40 school within the district on an equal per student basis.
41 (c) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
42 board may make rules regarding the time and manner in which the student count shall be made
43 for allocation of the monies.
44 (4) In order to receive its allocation under Subsection (3), a school shall have
45 established a school community council under Section 53A-1a-108 .
46 (5) (a) The school community council or its subcommittee shall develop a program to
47 use its allocation under Subsection (3) to implement a component of the school's improvement
48 plan, including:
49 (i) the school's identified most critical academic needs;
50 (ii) a recommended course of action to meet the identified academic needs;
51 (iii) a specific listing of any programs, practices, materials, or equipment which the
52 school will need to implement a component of its school improvement plan to have a direct
53 impact on the instruction of students and result in measurable increased student performance;
54 and
55 (iv) how the school intends to spend its allocation of funds under this section to
56 enhance or improve academic excellence at the school.
57 (b) The school may develop a multiyear program, but the program shall be presented
58 and approved by the school community council and the local school board of the district in

59 which the school is located annually and as a prerequisite to receiving program funds allocated
60 under this section.
61 (6) (a) Each school shall:
62 (i) implement the program as approved by the school community council and approved
63 by the local school board;
64 (ii) provide ongoing support for the council's or its subcommittee's program;
65 (iii) meet school board reporting requirements regarding financial and performance
66 accountability of the program; and
67 (iv) publicize to its patrons and the general public on how the funds it received under
68 this section were used to enhance or improve academic excellence at the school and implement
69 a component of the school's improvement plan, including the results of those efforts.
70 (b) (i) Each school through its council or its subcommittee shall prepare and present an
71 annual report of the program to its local school board at the end of the school year.
72 (ii) The report shall detail the use of program funds received by the school under this
73 section and an assessment of the results obtained from the use of the funds.
74 Section 2. Section 53A-21-102 is amended to read:
75 53A-21-102. Capital Outlay Foundation Program -- Loan Program.
76 (1) (a) There is established [a] the Capital Outlay Foundation Program to provide
77 revenues to school districts for the purposes of capital outlay bonding, construction, and
78 renovation.
79 (b) The Capital Outlay Foundation Program shall be funded from:
80 (i) that portion of the Uniform School Fund consisting of the interest and dividends on
81 the State School Fund remaining after the State Board of Education makes the allocations
82 under the School LAND Trust Program as provided by Section 53A-16-101.5 ; and
83 (ii) other appropriations that may be made by the Legislature.
84 (c) The State Board of Education shall annually allocate, as provided in Section
85 53A-21-103 , all the monies in the Uniform School Fund consisting of the interest and
86 dividends on the State School Fund remaining after the board's allocations under the School
87 LAND Trust Program.
88 (2) There is established [a] the Capital Outlay Loan Program to provide short-term help
89 to school districts to meet district needs for school building construction and renovation.

90 (3) School districts shall use the monies provided to them under the foundation and
91 loan programs solely for school district capital outlay and debt service purposes.
92 Section 3. Effective date.
93 This act takes effect on July 1, 2003.




Legislative Review Note
as of 12-5-02 4:01 PM

A limited legal review of this legislation raises no obvious constitutional or statutory concerns.

Office of Legislative Research and General Counsel