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H.B. 152 Enrolled

                 

CHARTER SCHOOL GOVERNANCE

                 
2004 GENERAL SESSION

                 
STATE OF UTAH

                 
Sponsor: Marda Dillree

                 
                  LONG TITLE
                  General Description:
                      This bill modifies the State System of Public Education Code to create a new entity to
                  authorize charter schools and modify requirements imposed on charter schools.
                  Highlighted Provisions:
                      This bill:
                      .    creates the State Charter School Board consisting of seven members appointed by
                  the governor;
                      .    specifies the powers and duties of the State Charter School Board, including the
                  power to:
                          *    authorize and promote the establishment of charter schools, subject to approval
                  of the State Board of Education; and
                          *    hold charter schools accountable for their performance;
                      .    provides for a staff director for the State Charter School Board appointed by the
                  superintendent of public instruction, with the consent of the State Charter School
                  Board;            
                      .    provides for the dissolution of charters with the State Board of Education and
                  directs the State Charter School Board to grant charters to schools previously
                  chartered by the State Board of Education;
                      .    expands the purposes of charter schools;
                      .    expands the provisions to be addressed in a school's charter;
                      .    exempts charter schools from various state laws and rules of the State Board of
                  Education;
                      .    requires the State Charter School Board to study existing state law and


                  administrative rules for the purpose of determining from which laws and rules charter
                  schools should be exempt, and submit recommendations to the State Board of
                  Education and the Education Interim Committee; and
                      .    clarifies the duties of local school boards in authorizing charter schools.
                  Monies Appropriated in this Bill:
                      None
                  Other Special Clauses:
                      None
                  Utah Code Sections Affected:
                  AMENDS:
                      53A-1a-502, as last amended by Chapter 199, Laws of Utah 2003
                      53A-1a-503, as enacted by Chapter 231, Laws of Utah 1998
                      53A-1a-505, as last amended by Chapter 199, Laws of Utah 2003
                      53A-1a-507, as enacted by Chapter 231, Laws of Utah 1998
                      53A-1a-508, as last amended by Chapter 199, Laws of Utah 2003
                      53A-1a-509, as last amended by Chapter 199, Laws of Utah 2003
                      53A-1a-510, as last amended by Chapter 199, Laws of Utah 2003
                      53A-1a-511, as enacted by Chapter 231, Laws of Utah 1998
                      53A-1a-512, as last amended by Chapter 224, Laws of Utah 2000
                      53A-1a-515, as last amended by Chapters 199 and 320, Laws of Utah 2003
                      53A-16-101.5, as last amended by Chapters 226 and 320, Laws of Utah 2003
                      63-55b-153, as last amended by Chapters 131 and 223, Laws of Utah 2003
                  ENACTS:
                      53A-1a-501.3, Utah Code Annotated 1953
                      53A-1a-501.5, Utah Code Annotated 1953
                      53A-1a-501.6, Utah Code Annotated 1953
                      53A-1a-501.7, Utah Code Annotated 1953
                      53A-1a-501.8, Utah Code Annotated 1953

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                      53A-1a-503.5, Utah Code Annotated 1953
                  REPEALS:
                      53A-1a-516, as enacted by Chapter 313, Laws of Utah 2002
                 
                  Be it enacted by the Legislature of the state of Utah:
                      Section 1. Section 53A-1a-501.3 is enacted to read:
                      53A-1a-501.3. Definitions.
                      As used in this part, "chartering entity" means the entity that authorizes the establishment
                  of a charter school.
                      Section 2. Section 53A-1a-501.5 is enacted to read:
                      53A-1a-501.5. State Charter School Board created.
                      (1) (a) The State Charter School Board is created consisting of the following members
                  appointed by the governor:
                      (i) two members who have expertise in finance or small business management;
                      (ii) three members who are appointed from a slate of at least six candidates nominated by
                  Utah's charter schools; and
                      (iii) two members who are appointed from a slate of at least four candidates nominated by
                  the State Board of Education.
                      (b) Each appointee shall have demonstrated dedication to the purposes of charter schools
                  as outlined in Section 53A-1a-503 .
                      (2) (a) State Charter School Board members shall serve four-year terms, except three of
                  the initial members appointed by the governor shall be appointed for a two-year term.
                      (b) If a vacancy occurs, the governor shall appoint a replacement for the unexpired term.
                      (3) (a) The State Charter School Board shall annually elect a chair from its membership.
                      (b) Four members of the board shall constitute a quorum.
                      (c) Meetings may be called by the chair or upon request of three members of the board.
                      (4) (a) (i) Members who are not state government employees shall receive no
                  compensation or benefits for their services, but may receive per diem and expenses incurred in the

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                  performance of the members's official duties at the rates established by the Division of Finance
                  under Sections 63A-3-106 and 63A-3-107 .
                      (ii) Members may decline to receive per diem and expenses for their service.
                      (b) (i) State government officer and employee members who do not receive salary, per
                  diem, or expenses from their agency for their service may receive per diem and expenses incurred
                  in the performance of their official duties from the State Charter School Board at the rates
                  established by the Division of Finance under Sections 63A-3-106 and 63A-3-107 .
                      (ii) State government officer and employee members may decline to receive per diem and
                  expenses for their service.
                      Section 3. Section 53A-1a-501.6 is enacted to read:
                      53A-1a-501.6. Power and duties of State Charter School Board.
                      (1) The State Charter School Board shall:
                      (a) authorize and promote the establishment of charter schools, subject to the limitations
                  in Sections 53A-1a-502 and 53A-1a-505 ;
                      (b) annually review and evaluate the performance of charter schools authorized by the
                  State Charter School Board and hold the schools accountable for their performance;
                      (c) monitor charter schools authorized by the State Charter School Board for compliance
                  with federal and state laws, rules, and regulations;
                      (d) provide technical support to charter schools and persons seeking to establish charter
                  schools by:
                      (i) identifying and promoting successful charter school models;
                      (ii) facilitating the application and approval process for charter school authorization;
                      (iii) directing charter schools and persons seeking to establish charter schools to sources
                  of private funding and support;
                      (iv) reviewing and evaluating proposals to establish charter schools for the purpose of
                  supporting and strengthening proposals before an application for charter school authorization is
                  submitted to the State Charter School Board or a local school board; and
                      (v) assisting charter schools to understand and carry out their charter obligations;

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                      (e) provide technical support, as requested, to a local school board relating to charter
                  schools;
                      (f) make recommendations on legislation and rules pertaining to charter schools to the
                  Legislature and State Board of Education, respectively; and
                      (g) make recommendations to the State Board of Education on the funding of charter
                  schools.
                      (2) The State Charter School Board may:
                      (a) contract;
                      (b) sue and be sued; and
                      (c) (i) at the discretion of the charter school, provide administrative services to, or
                  perform other school functions for, charter schools authorized by the State Charter School Board;
                  and
                      (ii) charge fees for the provision of services or functions.
                      Section 4. Section 53A-1a-501.7 is enacted to read:
                      53A-1a-501.7. State Charter School Board -- Staff director -- Facilities.
                      (1) (a) The staff director for the State Charter School Board shall be appointed by the
                  superintendent of public instruction, with the consent of the State Charter School Board.
                      (b) If the State Charter School Board withholds consent of an appointment, the board
                  shall state its reasons in writing to the superintendent of public instruction.
                      (c) The State Charter School Board may petition the superintendent of public instruction
                  for removal of the staff director for cause; however, the superintendent of public instruction shall
                  have sole authority to remove the staff director.
                      (d) The position of staff director is exempt from the career service provisions of Title 67,
                  Chapter 19, Utah State Personnel Management Act.
                      (2) The superintendent of public instruction shall provide space for staff of the State
                  Charter School Board in facilities occupied by the Utah State Office of Education, with costs
                  charged for the facilities equal to those charged other sections and divisions within the Utah State
                  Office of Education and Utah State Office of Rehabilitation.

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                      Section 5. Section 53A-1a-501.8 is enacted to read:
                      53A-1a-501.8. Charter schools authorized by the State Board of Education.
                      (1) Effective May 3, 2004, the State Board of Education may not authorize the
                  establishment of new charter schools.
                      (2) (a) The State Board of Education shall dissolve each charter or charter agreement it
                  has with a charter school, and the State Charter School Board shall enter into a charter agreement
                  with each of those schools.
                      (b) The charter agreement made with the State Charter School Board shall contain
                  provisions, consistent with this part, giving the charter school the rights and privileges it had
                  under its charter with the State Board of Education.
                      Section 6. Section 53A-1a-502 is amended to read:
                       53A-1a-502. State Charter School Board to authorize the establishment of charter
                  schools.
                      [(1) (a)] The State [Board of Education] Charter School Board may sponsor:
                      [(i)] (1) effective July 1, 2003, 24 charter schools;
                      [(ii)] (2) effective each subsequent July 1, an additional eight charter schools; and
                      [(iii)] (3) six New Century High Schools, magnet charter schools focused on math,
                  science, and technology.
                      [(b) (i) The charter schools authorized under Subsections (1)(a)(i) and (1)(a)(ii) may be
                  established only after an applicant:]
                      [(A) has sought and been denied sponsorship by a local school board under Section
                  53A-1a-515 ; and]
                      [(B) subsequently seeks and is granted sponsorship by the State Board of Education
                  under Section 53A-1a-505 .]
                      [(ii) (A) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act,
                  the State Board of Education shall make a rule providing a timeline that would allow an applicant
                  denied sponsorship by a local school board to apply for and receive sponsorship approval by the
                  State Board of Education and begin planning or operating in the same school year as anticipated

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                  in its original application to the local school board.]
                      [(B) The timeline shall be consistent with the application and approval process set out in
                  Section 53A-1a-515 .]
                      [(2) Charter schools are considered to be part of the state's public education system.]
                      [(3) A charter school may be established by creating a new school or converting an
                  existing public school to charter status.]
                      Section 7. Section 53A-1a-503 is amended to read:
                       53A-1a-503. Purpose.
                      The [purpose] purposes of charter schools [is] are to:
                      (1) continue to improve student learning;
                      (2) encourage the use of different and innovative teaching methods;
                      (3) create new professional opportunities for educators that will allow them to actively
                  participate in designing and implementing the learning program at the school;
                      (4) increase choice of learning opportunities for students;
                      (5) establish new models of public schools and a new form of accountability for schools
                  that emphasizes the measurement of learning outcomes and the creation of innovative
                  measurement tools; [and]
                      (6) provide opportunities for greater parental involvement in management decisions at the
                  school level[.]; and
                      (7) expand public school choice in areas where schools have been identified for school
                  improvement, corrective action, or restructuring under the No Child Left Behind Act of 2001, 20
                  U.S.C. Sec. 6301 et. seq.
                      Section 8. Section 53A-1a-503.5 is enacted to read:
                      53A-1a-503.5. Status of charter schools.
                      (1) Charter schools are:
                      (a) considered to be public schools within the state's public education system; and
                      (b) subject to Subsection 53A-1-401 (3).
                      (2) A charter school may be established by creating a new school or converting an

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                  existing public school to charter status.
                      Section 9. Section 53A-1a-505 is amended to read:
                       53A-1a-505. Application process -- Contract.
                      [(1) (a) An applicant for a charter school may seek sponsorship of its charter from the
                  State Board of Education only after the applicant has sought and been denied sponsorship by a
                  local school board. ]
                      [(b) Subsection (1)(a) does not apply to an applicant for a New Century High School as
                  described in Section 53A-1a-502 .]
                      [(2) (a) Except as provided in Subsection (2)(b), an applicant seeking sponsorship of a
                  charter from the State Board of Education shall provide notice]
                      (1) (a) An applicant seeking authorization of a charter school, including a New Century
                  High School, from the State Charter School Board shall provide a copy of the application to the
                  local school board of the school district in which the proposed charter school shall be located
                  either before or at the same time it files its application with the [state board] State Charter School
                  Board.
                      [(b) (i) An applicant seeking sponsorship of a New Century High School from the State
                  Board of Education who has not sought and been denied sponsorship by a local school board shall
                  provide a copy of the application to the local school board of the school district in which the
                  proposed New Century High School shall be located either before or at the same time it files its
                  application with the state board.]
                      [(ii)] (b) The local board [shall] may review the application and may offer suggestions or
                  recommendations to the applicant or the [state board] State Charter School Board prior to its
                  acting on the application.
                      [(iii)] (c) The [state board] State Charter School Board shall give due consideration to
                  suggestions or recommendations made by the local school board under Subsection [(2)(b)(ii)]
                  (1)(b).
                      [(c)] (d) The State [Board of Education] Charter School Board shall review and, by
                  majority vote, either approve or deny the application within 60 days after the application is

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                  received by the board.
                      (e) The State Board of Education shall, by majority vote, within 60 days after action by
                  the State Charter School Board under Subsection (1)(d):
                      (i) approve or deny an application approved by the State Charter School Board; or
                      (ii) hear an appeal, if any, of an application denied by the State Charter School Board.
                      [(d)] (f) The [state board's] State Board of Education's action under Subsection [(2)(c)]
                  (1)(d) is final action subject to judicial review.
                      (2) The State Board of Education shall make a rule providing a timeline for the opening
                  of a charter school following the approval of a charter school application by the State Charter
                  School Board.
                      (3) (a) After approval of a charter school application, the applicant and the [state board]
                  State Charter School Board shall set forth the terms and conditions for the operation of the
                  charter school in a written contractual agreement.
                      (b) The [contract] agreement is the school's charter.
                      (4) (a) A school holding a charter granted by a local school board may request a charter
                  from the State Charter School Board.
                      (b) This section shall govern the application and approval of a charter requested under
                  Subsection (4)(a).
                      (c) The restrictions on the number of charter schools authorized by the State Charter
                  School Board in Section 53A-1a-502 do not apply to a school requesting a charter under
                  Subsection (4)(a).
                      Section 10. Section 53A-1a-507 is amended to read:
                       53A-1a-507. Requirements for charter schools.
                      (1) A charter school shall be nonsectarian in its programs, admission policies, employment
                  practices, and operations.
                      (2) A charter school may not charge tuition or fees, except those fees normally charged
                  by other public schools.
                      (3) A charter school shall meet all applicable federal, state, and local health, safety, and

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                  civil rights requirements.
                      (4) (a) A charter school shall make the same annual reports required of other public
                  schools under Title 53A, State System of Public Education, including an annual financial audit
                  report.
                      [(b) The school shall make its reports directly to the State Board of Education and
                  provide a copy to the local school board of the district in which the school is located.]
                      (b) A charter school shall file its annual financial audit report with the Office of the State
                  Auditor within six months of the end of the fiscal year.
                      (5) A charter school shall be accountable to [the state board] its chartering entity for
                  performance as provided in [Section 53A-1a-509 ] the school's charter.
                      (6) A charter school may not advocate unlawful behavior.
                      Section 11. Section 53A-1a-508 is amended to read:
                       53A-1a-508. Content of a charter -- Modification of charter.
                      (1) The major issues involving the operation of a charter school shall be considered in
                  advance by the applicant for a charter school and written into the school's charter.
                      (2) The governing body of the charter school and the [State Board of Education]
                  chartering entity shall sign the charter[, except as otherwise provided under Section 53A-1a-515 ].
                      (3) The charter shall include:
                      (a) the age or grade levels to be served by the school;
                      (b) the projected maximum number of students to be enrolled in the school and the
                  projected enrollment in each of the first three years of operations;
                      (c) the governance structure of the school;
                      (d) the financial plan for the school and the provisions which will be made for auditing the
                  school under Subsection 53A-1a-507 (4)[(a)];
                      (e) the mission and education goals of the school, the curriculum offered, and the
                  methods of assessing whether students are meeting educational goals, to include at a minimum
                  participation in the Utah Performance Assessment System for Students under Chapter 1, Part 6,
                  Achievement Tests;

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                      (f) admission and dismissal procedures, including suspension procedures;
                      (g) procedures to review complaints of parents regarding the operation of the school;
                      (h) the opportunity for parental involvement at the school;
                      (i) how the school will provide adequate liability and other appropriate insurance for the
                  school, its governing body, and its employees[, including whether the school intends to participate
                  in the state's risk management insurance program];
                      (j) the proposed school calendar, including the length of the school day and school year;
                      (k) whether any agreements have been entered into or plans developed with school
                  districts regarding participation of charter school students in extracurricular activities within the
                  school districts;
                      (l) the district within which the school will be located and the address of the school's
                  physical facility, if known at the time the charter is signed;
                      (m) the qualifications to be required of the teachers; [and]
                      (n) in the case of an existing public school converting to charter status, alternative
                  arrangements for current students who choose not to attend the charter school and for current
                  teachers who choose not to teach at the school after its conversion to charter status[.];
                      (o) the school's intention to create a library;
                      (p) a description of school administrative and supervisory services;
                      (q) fiscal procedures to be used by the school; and
                      (r) the school's policies and procedures regarding:
                      (i) employee termination;
                      (ii) employee evaluation; and
                      (iii) employment of relatives.
                      (4) A charter may be modified by mutual agreement of the board and the governing body
                  of the school.
                      Section 12. Section 53A-1a-509 is amended to read:
                       53A-1a-509. Noncompliance -- Rulemaking.
                      (1) (a) (i) If a charter school is found to be out of compliance with the requirements of

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                  Section 53A-1a-507 or the school's charter, the [State Board of Education] chartering entity shall
                  notify the school's governing board in writing that the school has a reasonable time to remedy the
                  deficiency, except as otherwise provided in Subsection 53A-1a-510 (3)(a).
                      [(b) (i) If the school does not remedy the deficiency within the established timeline, the
                  State Board of Education may terminate the school's charter.]
                      (ii) Subsections 53A-1a-510 (2)(a) and (b) do not apply to [an action] a notification of
                  noncompliance taken under [this] Subsection (1)(a)(i).
                      (b) If the school does not remedy the deficiency within the established timeline, the
                  chartering entity may terminate the school's charter.
                      (2) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
                  State Board of Education shall make rules:
                      (a) specifying the timeline for remedying deficiencies under Subsection (1)(a); and
                      (b) ensuring the compliance of a charter school with its approved charter.
                      Section 13. Section 53A-1a-510 is amended to read:
                       53A-1a-510. Termination of a charter.
                      (1) [The State Board of Education] A chartering entity may terminate a school's charter
                  for any of the following reasons:
                      (a) failure of the school to meet the requirements stated in the charter;
                      (b) failure to meet generally accepted standards of fiscal management;
                      (c) subject to Subsection (5), failure to make adequate yearly progress under the No
                  Child Left Behind Act of 2001, [Pub. L. No. 107-110, 115 Stat. 1425] 20 U.S.C. Sec. 6301 et.
                  seq.;
                      (d) violation of law; or
                      (e) other good cause shown.
                      (2) (a) The [board] chartering entity shall notify the governing body of the school of the
                  proposed action in writing, state the grounds for the action, and stipulate that the governing body
                  may request an informal hearing before the [board] chartering entity.
                      (b) The [board] chartering entity shall conduct the hearing in accordance with Title 63,

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                  Chapter 46b, Administrative Procedures Act, within 30 days after receiving a written request
                  under Subsection (2)(a).
                      (3) (a) The [board] chartering entity may terminate a charter immediately if good cause
                  has been shown or if the health, safety, or welfare of the students at the school is threatened.
                      (b) If a charter is terminated under Subsection (3)(a), the school district in which the
                  school is located may assume operation of the school.
                      (4) (a) If a charter is terminated, a student who attended the school may apply to and shall
                  be enrolled in another public school under the enrollment provisions of Title 53A, Chapter 2, Part
                  2, District of Residency, subject to space availability.
                      (b) Normal application deadlines shall be disregarded under Subsection (4)(a).
                      (5) [The State Board of Education] A chartering entity may terminate a charter pursuant
                  to Subsection (1)(c) under the same circumstances that local educational agencies are required to
                  implement alternative governance arrangements under 20 U.S.C. Sec. 6316.
                      Section 14. Section 53A-1a-511 is amended to read:
                       53A-1a-511. Waivers from state board rules -- Application of statutes and rules to
                  charter schools.
                      (1) A charter school shall operate in accordance with its charter and is subject to Title
                  53A, State System of Public Education, and other state laws applicable to public schools, except
                  as otherwise provided in this part.
                      (2) (a) A charter school or any other public school or school district may apply to the
                  State Board of Education for a waiver of any state board rule that inhibits or hinders the school or
                  the school district from accomplishing its mission or educational goals set out in its strategic plan
                  or charter.
                      (b) The state board may grant the waiver, unless:
                      (i) the waiver would cause the school district or the school to be in violation of state or
                  federal law; or
                      (ii) the waiver would threaten the health, safety, or welfare of students in the district or at
                  the school.

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                      (c) If the State Board of Education denies the waiver, the reason for the denial shall be
                  provided in writing to the waiver applicant.
                      (3) (a) Except as provided in Subsection (3)(b), State Board of Education rules governing
                  the following do not apply to a charter school:
                      (i) school libraries;
                      (ii) required school administrative and supervisory services; and
                      (iii) required expenditures for instructional supplies.
                      (b) A charter school shall comply with rules implementing statutes that prescribe how
                  state appropriations may be spent.
                      (4) The following provisions of Title 53A, State System of Public Education, and rules
                  adopted under those provisions, do not apply to a charter school:
                      (a) Sections 53A-1a-108 and 53A-1a-108.5 , requiring the establishment of a school
                  community council and school improvement plan;
                      (b) Sections 53A-3-413 and 53A-3-414 , pertaining to the use of school buildings as civic
                  centers;
                      (c) Section 53A-3-420 , requiring the use of activity disclosure statements;
                      (d) Section 53A-12-207 , requiring notification of intent to dispose of textbooks;
                      (e) Section 53A-13-107 , requiring annual presentations on adoption; and
                      (f) Chapter 19, Part 1, pertaining to fiscal procedures of school districts and local school
                  boards.
                      (5) For the purposes of Title 63, Chapter 56, Utah Procurement Code, a charter school
                  shall be considered a local public procurement unit.
                      (6) Each charter school shall be subject to:
                      (a) Title 52, Chapter 4, Open and Public Meetings; and
                      (b) Title 63, Chapter 2, Government Records Access and Management Act.
                      (7) (a) The State Charter School Board shall, in concert with the charter schools, study
                  existing state law and administrative rules for the purpose of determining from which laws and
                  rules charter schools should be exempt.

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                      (b) (i) The State Charter School Board shall present recommendations for exemption to
                  the State Board of Education for consideration.
                      (ii) The State Board of Education shall consider the recommendations of the State
                  Charter School Board and respond within 60 days.
                      (c) Annually, the State Charter School Board shall report the results of its review of state
                  laws and administrative rules, along with the responses received from the State Board of
                  Education, to the Education Interim Committee by October 1.
                      Section 15. Section 53A-1a-512 is amended to read:
                       53A-1a-512. Employees of charter schools.
                      (1) A charter school shall select its own employees.
                      (2) The school's governing body shall determine the level of compensation and all terms
                  and conditions of employment, except as otherwise provided in this part.
                      (3) The following statutes governing public employees and officers do not apply to
                  charter schools:
                      (a) Chapter 8, Utah Orderly School Termination Procedures Act;
                      (b) Chapter 10, Educator Evaluation; and
                      (c) Title 52, Chapter 3, Prohibiting Employment of Relatives.
                      [(3)] (4) (a) To accommodate differentiated staffing and better meet student needs, a
                  charter school, under rules adopted by the State Board of Education, shall employ teachers who:
                      (i) are licensed; or
                      (ii) on the basis of demonstrated competency, would qualify to teach under alternative
                  certification or authorization programs.
                      (b) The school's governing body shall disclose the qualifications of its teachers to the
                  parents of its students.
                      [(4)] (5) (a) An employee of a school district may request a leave of absence in order to
                  work in a charter school upon approval of the local school board.
                      (b) While on leave, the employee may retain seniority accrued in the school district and
                  may continue to be covered by the benefit program of the district if the charter school and the

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                  locally elected school board mutually agree.
                      Section 16. Section 53A-1a-515 is amended to read:
                       53A-1a-515. Charters authorized by local school boards.
                      (1) Individuals and entities identified in Section 53A-1a-504 may enter into an agreement
                  with a local school board to establish and operate a charter school within the geographical
                  boundaries of the school district administered by the board.
                      (2) These schools are in addition to the limited number of charter schools authorized
                  [under the sponsorship of the State Board of Education] by the State Charter School Board in
                  Section 53a-1a-502 .
                      (3) (a) An existing public school that converts to charter status under a charter granted by
                  a local school board may:
                      (i) continue to receive the same services from the school district that it received prior to
                  its conversion; or
                      (ii) contract out for some or all of those services with other public or private providers.
                      (b) Any other charter school [sponsored] authorized by a local school board may contract
                  with the board to receive some or all of the services referred to in Subsection (3)(a).
                      (4) (a) (i) A public school that converts to a charter school under a charter granted by a
                  local school board shall receive funding:
                      (A) through the school district; and
                      (B) on the same basis as it did prior to its conversion to a charter school.
                      (ii) The school may also receive federal monies designated for charter schools under any
                  federal program.
                      (b) (i) A local school [board-sponsored] board-authorized charter school operating in a
                  facility owned by the school district and not paying reasonable rent to the school district shall
                  receive funding:
                      (A) through the school district; and
                      (B) on the same basis that other district schools receive funding.
                      (ii) The school may also receive federal monies designated for charter schools under any

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                  federal program.
                      (c) Any other charter school [sponsored] authorized by a local school board shall receive
                  funding as provided in Section 53A-1a-513 .
                      (5) (a) A local school board that receives an application for a charter school under this
                  section shall, within 45 days, either accept or reject the application.
                      (b) If the board rejects the application, it shall notify the applicant in writing of the reason
                  for the rejection.
                      (c) The applicant may submit a revised application for reconsideration by the board.
                      (d) If the local school board refuses to [sponsor] authorize the applicant, the applicant
                  may seek a charter from the State [Board of Education] Charter School Board under Section
                  53A-1a-505 .
                      [(e) The local board's action under Subsection (5)(d) is final action subject to judicial
                  review.]
                      (6) The State Board of Education shall make a rule providing for a timeline for the
                  opening of a charter school following the approval of a charter school application by a local
                  school board.
                      (7) (a) After approval of a charter school application, the applicant and the local school
                  board shall set forth the terms and conditions for the operation of the charter school in a written
                  contractual agreement.
                      (b) The agreement is the school's charter.
                      (8) A local school board shall:
                      (a) annually review and evaluate the performance of charter schools authorized by the
                  local school board and hold the schools accountable for their performance;
                      (b) monitor charter schools authorized by the local school board for compliance with
                  federal and state laws, rules, and regulations; and
                      (c) provide technical support to charter schools authorized by the local school board to
                  assist them in understanding and performing their charter obligations.
                      [(6)] (9) A local school board may terminate a charter school it [sponsors under this

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                  section for the same reasons and under the same procedures followed by the State Board of
                  Education under Section 53A-1a-509 ] authorizes as provided in Sections 53A-1a-509 and
                  53A-1a-510 .
                      [(7)] (10) The governing body of a local school [board-sponsored] board-authorized
                  charter school shall be independent of the local school board except as otherwise specifically
                  provided in this chapter.
                      Section 17. Section 53A-16-101.5 is amended to read:
                       53A-16-101.5. School LAND Trust Program -- Contents -- Purpose -- Distribution
                  of funds -- School plans for use of funds.
                      (1) There is established the School LAND (Learning And Nurturing Development) Trust
                  Program for the state's public schools to provide financial resources to enhance or improve
                  student academic achievement and implement a component of the school improvement plan.
                      (2) (a) The program shall be funded each fiscal year from that portion of the Uniform
                  School Fund consisting of the interest and dividends received in the immediately preceding fiscal
                  year from the investment of monies in the permanent State School Fund.
                      (b) On and after July 1, 2003, the program shall be funded as provided in Subsection
                  (2)(a) up to a maximum of $12,000,000 each fiscal year.
                      (c) The Legislature shall annually allocate, through an appropriation to the State Board of
                  Education, a portion of School LAND Trust Program monies for the administration of the
                  program.
                      (3) (a) The State Board of Education shall allocate the monies referred to in Subsection
                  (2) annually for the fiscal year beginning July 1, 2000, and for each fiscal year thereafter as
                  follows:
                      (i) school districts shall receive 10% of the funds on an equal basis; and
                      (ii) the remaining 90% of the funds shall be distributed on a per student basis, with each
                  district receiving its allocation on the number of students in the district as compared to the state
                  total.
                      (b) Each school district shall distribute its allocation under Subsection (3)(a) to each

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                  school within the district on an equal per student basis.
                      (c) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
                  board may make rules regarding the time and manner in which the student count shall be made for
                  allocation of the monies.
                      (4) [In] Except as provided in Subsection (7), in order to receive its allocation under
                  Subsection (3), a school shall have established a school community council under Section
                  53A-1a-108 .
                      (5) (a) The school community council or its subcommittee shall develop a program to use
                  its allocation under Subsection (3) to implement a component of the school's improvement plan,
                  including:
                      (i) the school's identified most critical academic needs;
                      (ii) a recommended course of action to meet the identified academic needs;
                      (iii) a specific listing of any programs, practices, materials, or equipment which the school
                  will need to implement a component of its school improvement plan to have a direct impact on the
                  instruction of students and result in measurable increased student performance; and
                      (iv) how the school intends to spend its allocation of funds under this section to enhance
                  or improve academic excellence at the school.
                      (b) The school may develop a multiyear program, but the program shall be presented and
                  approved by the school community council and the local school board of the district in which the
                  school is located annually and as a prerequisite to receiving program funds allocated under this
                  section.
                      (6) (a) Each school shall:
                      (i) implement the program as approved by the school community council and approved by
                  the local school board;
                      (ii) provide ongoing support for the council's or its subcommittee's program;
                      (iii) meet school board reporting requirements regarding financial and performance
                  accountability of the program; and
                      (iv) publicize to its patrons and the general public on how the funds it received under this

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                  section were used to enhance or improve academic excellence at the school and implement a
                  component of the school's improvement plan, including the results of those efforts.
                      (b) (i) Each school through its council or its subcommittee shall prepare and present an
                  annual report of the program to its local school board at the end of the school year.
                      (ii) The report shall detail the use of program funds received by the school under this
                  section and an assessment of the results obtained from the use of the funds.
                      (7) (a) The governing board of a charter school shall prepare a plan for the use of school
                  trust monies that includes the elements listed in Subsection (5).
                      (b) The plan shall be subject to approval by the entity that authorized the establishment of
                  the charter school.
                      Section 18. Section 63-55b-153 is amended to read:
                       63-55b-153. Repeal dates -- Titles 53, 53A, and 53B.
                      (1) Subsection 53-3-205 (9)(a)(i)(D) is repealed July 1, 2007.
                      (2) Subsection 53-3-804 (2)(g) is repealed July 1, 2007.
                      (3) Title 53, Chapter 12, State Olympic Public Safety Command Act, is repealed July 1,
                  2003.
                      (4) Section 53A-1-403.5 is repealed July 1, 2007.
                      (5) Subsection 53A-1a-511 (7)(c) is repealed July 1, 2007.
                      [(5)] (6) Section 53B-8-104.5 is repealed July 1, 2009.
                      Section 19. Repealer.
                      This bill repeals:
                      Section 53A-1a-516, Technical support for charter schools.

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