First Substitute H.B. 152

Senator Howard A. Stephenson proposes the following substitute bill:

1 CHARTER SCHOOL GOVERNANCE
2 2004 GENERAL SESSION
3 STATE OF UTAH
4 Sponsor: Marda Dillree
5
6 LONG TITLE
7 General Description:
8 This bill modifies the State System of Public Education Code to create a new entity to
9 authorize charter schools and modify requirements imposed on charter schools.
10 Highlighted Provisions:
11 This bill:
12 . creates the State Charter School Board consisting of seven members appointed by
13 the governor;
14 . specifies the powers and duties of the State Charter School Board, including the
15 power to:
16 * authorize and promote the establishment of charter schools, subject to approval
17 of the State Board of Education; and
18 * hold charter schools accountable for their performance;
19 . provides for a staff director for the State Charter School Board appointed by the
20 superintendent of public instruction, with the consent of the State Charter School
21 Board;
22 . provides for the dissolution of charters with the State Board of Education and
23 directs the State Charter School Board to grant charters to schools previously
24 chartered by the State Board of Education;
25 . expands the purposes of charter schools;

26 . expands the provisions to be addressed in a school's charter;
27 . exempts charter schools from various state laws and rules of the State Board of
28 Education;
29 . requires the State Charter School Board to study existing state law and
30 administrative rules for the purpose of determining from which laws and rules
31 charter schools should be exempt, and submit recommendations to the State Board
32 of Education and the Education Interim Committee; and
33 . clarifies the duties of local school boards in authorizing charter schools.
34 Monies Appropriated in this Bill:
35 None
36 Other Special Clauses:
37 None
38 Utah Code Sections Affected:
39 AMENDS:
40 53A-1a-502, as last amended by Chapter 199, Laws of Utah 2003
41 53A-1a-503, as enacted by Chapter 231, Laws of Utah 1998
42 53A-1a-505, as last amended by Chapter 199, Laws of Utah 2003
43 53A-1a-507, as enacted by Chapter 231, Laws of Utah 1998
44 53A-1a-508, as last amended by Chapter 199, Laws of Utah 2003
45 53A-1a-509, as last amended by Chapter 199, Laws of Utah 2003
46 53A-1a-510, as last amended by Chapter 199, Laws of Utah 2003
47 53A-1a-511, as enacted by Chapter 231, Laws of Utah 1998
48 53A-1a-512, as last amended by Chapter 224, Laws of Utah 2000
49 53A-1a-515, as last amended by Chapters 199 and 320, Laws of Utah 2003
50 53A-16-101.5, as last amended by Chapters 226 and 320, Laws of Utah 2003
51 63-55b-153, as last amended by Chapters 131 and 223, Laws of Utah 2003
52 ENACTS:
53 53A-1a-501.3, Utah Code Annotated 1953
54 53A-1a-501.5, Utah Code Annotated 1953
55 53A-1a-501.6, Utah Code Annotated 1953
56 53A-1a-501.7, Utah Code Annotated 1953

57 53A-1a-501.8, Utah Code Annotated 1953
58 53A-1a-503.5, Utah Code Annotated 1953
59 REPEALS:
60 53A-1a-516, as enacted by Chapter 313, Laws of Utah 2002
61
62 Be it enacted by the Legislature of the state of Utah:
63 Section 1. Section 53A-1a-501.3 is enacted to read:
64 53A-1a-501.3. Definitions.
65 As used in this part, "chartering entity" means the entity that authorizes the
66 establishment of a charter school.
67 Section 2. Section 53A-1a-501.5 is enacted to read:
68 53A-1a-501.5. State Charter School Board created.
69 (1) (a) The State Charter School Board is created consisting of the following members
70 appointed by the governor:
71 (i) two members who have expertise in finance or small business management;
72 (ii) three members who are appointed from a slate of at least six candidates nominated
73 by Utah's charter schools; and
74 (iii) two members who are appointed from a slate of at least four candidates nominated
75 by the State Board of Education.
76 (b) Each appointee shall have demonstrated dedication to the purposes of charter
77 schools as outlined in Section 53A-1a-503 .
78 (2) (a) State Charter School Board members shall serve four-year terms, except three of
79 the initial members appointed by the governor shall be appointed for a two-year term.
80 (b) If a vacancy occurs, the governor shall appoint a replacement for the unexpired
81 term.
82 (3) (a) The State Charter School Board shall annually elect a chair from its
83 membership.
84 (b) Four members of the board shall constitute a quorum.
85 (c) Meetings may be called by the chair or upon request of three members of the board.
86 (4) (a) (i) Members who are not state government employees shall receive no
87 compensation or benefits for their services, but may receive per diem and expenses incurred in

88 the performance of the members's official duties at the rates established by the Division of
89 Finance under Sections 63A-3-106 and 63A-3-107 .
90 (ii) Members may decline to receive per diem and expenses for their service.
91 (b) (i) State government officer and employee members who do not receive salary, per
92 diem, or expenses from their agency for their service may receive per diem and expenses
93 incurred in the performance of their official duties from the State Charter School Board at the
94 rates established by the Division of Finance under Sections 63A-3-106 and 63A-3-107 .
95 (ii) State government officer and employee members may decline to receive per diem
96 and expenses for their service.
97 Section 3. Section 53A-1a-501.6 is enacted to read:
98 53A-1a-501.6. Power and duties of State Charter School Board.
99 (1) The State Charter School Board shall:
100 (a) authorize and promote the establishment of charter schools, subject to the
101 limitations in Sections 53A-1a-502 and 53A-1a-505 ;
102 (b) annually review and evaluate the performance of charter schools authorized by the
103 State Charter School Board and hold the schools accountable for their performance;
104 (c) monitor charter schools authorized by the State Charter School Board for
105 compliance with federal and state laws, rules, and regulations;
106 (d) provide technical support to charter schools and persons seeking to establish charter
107 schools by:
108 (i) identifying and promoting successful charter school models;
109 (ii) facilitating the application and approval process for charter school authorization;
110 (iii) directing charter schools and persons seeking to establish charter schools to
111 sources of private funding and support;
112 (iv) reviewing and evaluating proposals to establish charter schools for the purpose of
113 supporting and strengthening proposals before an application for charter school authorization is
114 submitted to the State Charter School Board or a local school board; and
115 (v) assisting charter schools to understand and carry out their charter obligations;
116 (e) provide technical support, as requested, to a local school board relating to charter
117 schools;
118 (f) make recommendations on legislation and rules pertaining to charter schools to the

119 Legislature and State Board of Education, respectively; and
120 (g) make recommendations to the State Board of Education on the funding of charter
121 schools.
122 (2) The State Charter School Board may:
123 (a) contract;
124 (b) sue and be sued; and
125 (c) (i) at the discretion of the charter school, provide administrative services to, or
126 perform other school functions for, charter schools authorized by the State Charter School
127 Board; and
128 (ii) charge fees for the provision of services or functions.
129 Section 4. Section 53A-1a-501.7 is enacted to read:
130 53A-1a-501.7. State Charter School Board -- Staff director -- Facilities.
131 (1) (a) The staff director for the State Charter School Board shall be appointed by the
132 superintendent of public instruction, with the consent of the State Charter School Board.
133 (b) If the State Charter School Board withholds consent of an appointment, the board
134 shall state its reasons in writing to the superintendent of public instruction.
135 (c) The State Charter School Board may petition the superintendent of public
136 instruction for removal of the staff director for cause; however, the superintendent of public
137 instruction shall have sole authority to remove the staff director.
138 (d) The position of staff director is exempt from the career service provisions of Title
139 67, Chapter 19, Utah State Personnel Management Act.
140 (2) The superintendent of public instruction shall provide space for staff of the State
141 Charter School Board in facilities occupied by the Utah State Office of Education, with costs
142 charged for the facilities equal to those charged other sections and divisions within the Utah
143 State Office of Education and Utah State Office of Rehabilitation.
144 Section 5. Section 53A-1a-501.8 is enacted to read:
145 53A-1a-501.8. Charter schools authorized by the State Board of Education.
146 (1) Effective May 3, 2004, the State Board of Education may not authorize the
147 establishment of new charter schools.
148 (2) (a) The State Board of Education shall dissolve each charter or charter agreement it
149 has with a charter school, and the State Charter School Board shall enter into a charter

150 agreement with each of those schools.
151 (b) The charter agreement made with the State Charter School Board shall contain
152 provisions, consistent with this part, giving the charter school the rights and privileges it had
153 under its charter with the State Board of Education.
154 Section 6. Section 53A-1a-502 is amended to read:
155 53A-1a-502. State Charter School Board to authorize the establishment of
156 charter schools.
157 [(1) (a)] The State [Board of Education] Charter School Board may sponsor:
158 [(i)] (1) effective July 1, 2003, 24 charter schools;
159 [(ii)] (2) effective each subsequent July 1, an additional eight charter schools; and
160 [(iii)] (3) six New Century High Schools, magnet charter schools focused on math,
161 science, and technology.
162 [(b) (i) The charter schools authorized under Subsections (1)(a)(i) and (1)(a)(ii) may be
163 established only after an applicant:]
164 [(A) has sought and been denied sponsorship by a local school board under Section
165 53A-1a-515 ; and]
166 [(B) subsequently seeks and is granted sponsorship by the State Board of Education
167 under Section 53A-1a-505 .]
168 [(ii) (A) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking
169 Act, the State Board of Education shall make a rule providing a timeline that would allow an
170 applicant denied sponsorship by a local school board to apply for and receive sponsorship
171 approval by the State Board of Education and begin planning or operating in the same school
172 year as anticipated in its original application to the local school board.]
173 [(B) The timeline shall be consistent with the application and approval process set out
174 in Section 53A-1a-515 .]
175 [(2) Charter schools are considered to be part of the state's public education system.]
176 [(3) A charter school may be established by creating a new school or converting an
177 existing public school to charter status.]
178 Section 7. Section 53A-1a-503 is amended to read:
179 53A-1a-503. Purpose.
180 The [purpose] purposes of charter schools [is] are to:

181 (1) continue to improve student learning;
182 (2) encourage the use of different and innovative teaching methods;
183 (3) create new professional opportunities for educators that will allow them to actively
184 participate in designing and implementing the learning program at the school;
185 (4) increase choice of learning opportunities for students;
186 (5) establish new models of public schools and a new form of accountability for
187 schools that emphasizes the measurement of learning outcomes and the creation of innovative
188 measurement tools; [and]
189 (6) provide opportunities for greater parental involvement in management decisions at
190 the school level[.]; and
191 (7) expand public school choice in areas where schools have been identified for school
192 improvement, corrective action, or restructuring under the No Child Left Behind Act of 2001,
193 20 U.S.C. Sec. 6301 et. seq.
194 Section 8. Section 53A-1a-503.5 is enacted to read:
195 53A-1a-503.5. Status of charter schools.
196 (1) Charter schools are:
197 (a) considered to be public schools within the state's public education system; and
198 (b) subject to Subsection 53A-1-401 (3).
199 (2) A charter school may be established by creating a new school or converting an
200 existing public school to charter status.
201 Section 9. Section 53A-1a-505 is amended to read:
202 53A-1a-505. Application process -- Contract.
203 [(1) (a) An applicant for a charter school may seek sponsorship of its charter from the
204 State Board of Education only after the applicant has sought and been denied sponsorship by a
205 local school board. ]
206 [(b) Subsection (1)(a) does not apply to an applicant for a New Century High School as
207 described in Section 53A-1a-502 .]
208 [(2) (a) Except as provided in Subsection (2)(b), an applicant seeking sponsorship of a
209 charter from the State Board of Education shall provide notice]
210 (1) (a) An applicant seeking authorization of a charter school, including a New Century
211 High School, from the State Charter School Board shall provide a copy of the application to the

212 local school board of the school district in which the proposed charter school shall be located
213 either before or at the same time it files its application with the [state board] State Charter
214 School Board.
215 [(b) (i) An applicant seeking sponsorship of a New Century High School from the State
216 Board of Education who has not sought and been denied sponsorship by a local school board
217 shall provide a copy of the application to the local school board of the school district in which
218 the proposed New Century High School shall be located either before or at the same time it
219 files its application with the state board.]
220 [(ii)] (b) The local board [shall] may review the application and may offer suggestions
221 or recommendations to the applicant or the [state board] State Charter School Board prior to its
222 acting on the application.
223 [(iii)] (c) The [state board] State Charter School Board shall give due consideration to
224 suggestions or recommendations made by the local school board under Subsection [(2)(b)(ii)]
225 (1)(b).
226 [(c)] (d) The State [Board of Education] Charter School Board shall review and, by
227 majority vote, either approve or deny the application within 60 days after the application is
228 received by the board.
229 (e) The State Board of Education shall, by majority vote, within 60 days after action by
230 the State Charter School Board under Subsection (1)(d):
231 (i) approve or deny an application approved by the State Charter School Board; or
232 (ii) hear an appeal, if any, of an application denied by the State Charter School Board.
233 [(d)] (f) The [state board's] State Board of Education's action under Subsection [(2)(c)]
234 (1)(d) is final action subject to judicial review.
235 (2) The State Board of Education shall make a rule providing a timeline for the
236 opening of a charter school following the approval of a charter school application by the State
237 Charter School Board.
238 (3) (a) After approval of a charter school application, the applicant and the [state
239 board] State Charter School Board shall set forth the terms and conditions for the operation of
240 the charter school in a written contractual agreement.
241 (b) The [contract] agreement is the school's charter.
242 (4) (a) A school holding a charter granted by a local school board may request a charter

243 from the State Charter School Board.
244 (b) This section shall govern the application and approval of a charter requested under
245 Subsection (4)(a).
246 (c) The restrictions on the number of charter schools authorized by the State Charter
247 School Board in Section 53A-1a-502 do not apply to a school requesting a charter under
248 Subsection (4)(a).
249 Section 10. Section 53A-1a-507 is amended to read:
250 53A-1a-507. Requirements for charter schools.
251 (1) A charter school shall be nonsectarian in its programs, admission policies,
252 employment practices, and operations.
253 (2) A charter school may not charge tuition or fees, except those fees normally charged
254 by other public schools.
255 (3) A charter school shall meet all applicable federal, state, and local health, safety, and
256 civil rights requirements.
257 (4) (a) A charter school shall make the same annual reports required of other public
258 schools under Title 53A, State System of Public Education, including an annual financial audit
259 report.
260 [(b) The school shall make its reports directly to the State Board of Education and
261 provide a copy to the local school board of the district in which the school is located.]
262 (b) A charter school shall file its annual financial audit report with the Office of the
263 State Auditor within six months of the end of the fiscal year.
264 (5) A charter school shall be accountable to [the state board] its chartering entity for
265 performance as provided in [Section 53A-1a-509 ] the school's charter.
266 (6) A charter school may not advocate unlawful behavior.
267 Section 11. Section 53A-1a-508 is amended to read:
268 53A-1a-508. Content of a charter -- Modification of charter.
269 (1) The major issues involving the operation of a charter school shall be considered in
270 advance by the applicant for a charter school and written into the school's charter.
271 (2) The governing body of the charter school and the [State Board of Education]
272 chartering entity shall sign the charter[, except as otherwise provided under Section
273 53A-1a-515 ].

274 (3) The charter shall include:
275 (a) the age or grade levels to be served by the school;
276 (b) the projected maximum number of students to be enrolled in the school and the
277 projected enrollment in each of the first three years of operations;
278 (c) the governance structure of the school;
279 (d) the financial plan for the school and the provisions which will be made for auditing
280 the school under Subsection 53A-1a-507 (4)[(a)];
281 (e) the mission and education goals of the school, the curriculum offered, and the
282 methods of assessing whether students are meeting educational goals, to include at a minimum
283 participation in the Utah Performance Assessment System for Students under Chapter 1, Part 6,
284 Achievement Tests;
285 (f) admission and dismissal procedures, including suspension procedures;
286 (g) procedures to review complaints of parents regarding the operation of the school;
287 (h) the opportunity for parental involvement at the school;
288 (i) how the school will provide adequate liability and other appropriate insurance for
289 the school, its governing body, and its employees[, including whether the school intends to
290 participate in the state's risk management insurance program];
291 (j) the proposed school calendar, including the length of the school day and school
292 year;
293 (k) whether any agreements have been entered into or plans developed with school
294 districts regarding participation of charter school students in extracurricular activities within
295 the school districts;
296 (l) the district within which the school will be located and the address of the school's
297 physical facility, if known at the time the charter is signed;
298 (m) the qualifications to be required of the teachers; [and]
299 (n) in the case of an existing public school converting to charter status, alternative
300 arrangements for current students who choose not to attend the charter school and for current
301 teachers who choose not to teach at the school after its conversion to charter status[.];
302 (o) the school's intention to create a library;
303 (p) a description of school administrative and supervisory services;
304 (q) fiscal procedures to be used by the school; and

305 (r) the school's policies and procedures regarding:
306 (i) employee termination;
307 (ii) employee evaluation; and
308 (iii) employment of relatives.
309 (4) A charter may be modified by mutual agreement of the board and the governing
310 body of the school.
311 Section 12. Section 53A-1a-509 is amended to read:
312 53A-1a-509. Noncompliance -- Rulemaking.
313 (1) (a) (i) If a charter school is found to be out of compliance with the requirements of
314 Section 53A-1a-507 or the school's charter, the [State Board of Education] chartering entity
315 shall notify the school's governing board in writing that the school has a reasonable time to
316 remedy the deficiency, except as otherwise provided in Subsection 53A-1a-510 (3)(a).
317 [(b) (i) If the school does not remedy the deficiency within the established timeline, the
318 State Board of Education may terminate the school's charter.]
319 (ii) Subsections 53A-1a-510 (2)(a) and (b) do not apply to [an action] a notification of
320 noncompliance taken under [this] Subsection (1)(a)(i).
321 (b) If the school does not remedy the deficiency within the established timeline, the
322 chartering entity may terminate the school's charter.
323 (2) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
324 State Board of Education shall make rules:
325 (a) specifying the timeline for remedying deficiencies under Subsection (1)(a); and
326 (b) ensuring the compliance of a charter school with its approved charter.
327 Section 13. Section 53A-1a-510 is amended to read:
328 53A-1a-510. Termination of a charter.
329 (1) [The State Board of Education] A chartering entity may terminate a school's charter
330 for any of the following reasons:
331 (a) failure of the school to meet the requirements stated in the charter;
332 (b) failure to meet generally accepted standards of fiscal management;
333 (c) subject to Subsection (5), failure to make adequate yearly progress under the No
334 Child Left Behind Act of 2001, [Pub. L. No. 107-110, 115 Stat. 1425] 20 U.S.C. Sec. 6301 et.
335 seq.;

336 (d) violation of law; or
337 (e) other good cause shown.
338 (2) (a) The [board] chartering entity shall notify the governing body of the school of the
339 proposed action in writing, state the grounds for the action, and stipulate that the governing
340 body may request an informal hearing before the [board] chartering entity.
341 (b) The [board] chartering entity shall conduct the hearing in accordance with Title 63,
342 Chapter 46b, Administrative Procedures Act, within 30 days after receiving a written request
343 under Subsection (2)(a).
344 (3) (a) The [board] chartering entity may terminate a charter immediately if good cause
345 has been shown or if the health, safety, or welfare of the students at the school is threatened.
346 (b) If a charter is terminated under Subsection (3)(a), the school district in which the
347 school is located may assume operation of the school.
348 (4) (a) If a charter is terminated, a student who attended the school may apply to and
349 shall be enrolled in another public school under the enrollment provisions of Title 53A,
350 Chapter 2, Part 2, District of Residency, subject to space availability.
351 (b) Normal application deadlines shall be disregarded under Subsection (4)(a).
352 (5) [The State Board of Education] A chartering entity may terminate a charter
353 pursuant to Subsection (1)(c) under the same circumstances that local educational agencies are
354 required to implement alternative governance arrangements under 20 U.S.C. Sec. 6316.
355 Section 14. Section 53A-1a-511 is amended to read:
356 53A-1a-511. Waivers from state board rules -- Application of statutes and rules
357 to charter schools.
358 (1) A charter school shall operate in accordance with its charter and is subject to Title
359 53A, State System of Public Education, and other state laws applicable to public schools,
360 except as otherwise provided in this part.
361 (2) (a) A charter school or any other public school or school district may apply to the
362 State Board of Education for a waiver of any state board rule that inhibits or hinders the school
363 or the school district from accomplishing its mission or educational goals set out in its strategic
364 plan or charter.
365 (b) The state board may grant the waiver, unless:
366 (i) the waiver would cause the school district or the school to be in violation of state or

367 federal law; or
368 (ii) the waiver would threaten the health, safety, or welfare of students in the district or
369 at the school.
370 (c) If the State Board of Education denies the waiver, the reason for the denial shall be
371 provided in writing to the waiver applicant.
372 (3) (a) Except as provided in Subsection (3)(b), State Board of Education rules
373 governing the following do not apply to a charter school:
374 (i) school libraries;
375 (ii) required school administrative and supervisory services; and
376 (iii) required expenditures for instructional supplies.
377 (b) A charter school shall comply with rules implementing statutes that prescribe how
378 state appropriations may be spent.
379 (4) The following provisions of Title 53A, State System of Public Education, and rules
380 adopted under those provisions, do not apply to a charter school;
381 (a) Sections 53A-1a-108 and 53A-1a-108.5 , requiring the establishment of a school
382 community council and school improvement plan;
383 (b) Sections 53A-3-413 and 53A-3-414 , pertaining to the use of school buildings as
384 civic centers;
385 (c) Section 53A-3-420 , requiring the use of activity disclosure statements;
386 (d) Section 53A-12-207 , requiring notification of intent to dispose of textbooks;
387 (e) Section 53A-13-107 , requiring annual presentations on adoption; and
388 (f) Chapter 19, Part 1, pertaining to fiscal procedures of school districts and local
389 school boards.
390 (5) For the purposes of Title 63, Chapter 56, Utah Procurement Code, a charter school
391 shall be considered a local public procurement unit.
392 (6) Each charter school shall be subject to:
393 (a) Title 52, Chapter 4, Open and Public Meetings; and
394 (b) Title 63, Chapter 2, Government Records Access and Management Act.
395 (7) (a) The State Charter School Board shall, in concert with the charter schools, study
396 existing state law and administrative rules for the purpose of determining from which laws and
397 rules charter schools should be exempt.

398 (b) (i) The State Charter School Board shall present recommendations for exemption to
399 the State Board of Education for consideration.
400 (ii) The State Board of Education shall consider the recommendations of the State
401 Charter School Board and respond within 60 days.
402 (c) Annually, the State Charter School Board shall report the results of its review of
403 state laws and administrative rules, along with the responses received from the State Board of
404 Education, to the Education Interim Committee by October 1.
405 Section 15. Section 53A-1a-512 is amended to read:
406 53A-1a-512. Employees of charter schools.
407 (1) A charter school shall select its own employees.
408 (2) The school's governing body shall determine the level of compensation and all
409 terms and conditions of employment, except as otherwise provided in this part.
410 (3) The following statutes governing public employees and officers do not apply to
411 charter schools:
412 (a) Chapter 8, Utah Orderly School Termination Procedures Act;
413 (b) Chapter 10, Educator Evaluation; and
414 (c) Title 52, Chapter 3, Prohibiting Employment of Relatives.
415 [(3)] (4) (a) To accommodate differentiated staffing and better meet student needs, a
416 charter school, under rules adopted by the State Board of Education, shall employ teachers
417 who:
418 (i) are licensed; or
419 (ii) on the basis of demonstrated competency, would qualify to teach under alternative
420 certification or authorization programs.
421 (b) The school's governing body shall disclose the qualifications of its teachers to the
422 parents of its students.
423 [(4)] (5) (a) An employee of a school district may request a leave of absence in order to
424 work in a charter school upon approval of the local school board.
425 (b) While on leave, the employee may retain seniority accrued in the school district and
426 may continue to be covered by the benefit program of the district if the charter school and the
427 locally elected school board mutually agree.
428 Section 16. Section 53A-1a-515 is amended to read:

429 53A-1a-515. Charters authorized by local school boards.
430 (1) Individuals and entities identified in Section 53A-1a-504 may enter into an
431 agreement with a local school board to establish and operate a charter school within the
432 geographical boundaries of the school district administered by the board.
433 (2) These schools are in addition to the limited number of charter schools authorized
434 [under the sponsorship of the State Board of Education] by the State Charter School Board in
435 Section 53a-1a-502 .
436 (3) (a) An existing public school that converts to charter status under a charter granted
437 by a local school board may:
438 (i) continue to receive the same services from the school district that it received prior to
439 its conversion; or
440 (ii) contract out for some or all of those services with other public or private providers.
441 (b) Any other charter school [sponsored] authorized by a local school board may
442 contract with the board to receive some or all of the services referred to in Subsection (3)(a).
443 (4) (a) (i) A public school that converts to a charter school under a charter granted by a
444 local school board shall receive funding:
445 (A) through the school district; and
446 (B) on the same basis as it did prior to its conversion to a charter school.
447 (ii) The school may also receive federal monies designated for charter schools under
448 any federal program.
449 (b) (i) A local school [board-sponsored] board-authorized charter school operating in a
450 facility owned by the school district and not paying reasonable rent to the school district shall
451 receive funding:
452 (A) through the school district; and
453 (B) on the same basis that other district schools receive funding.
454 (ii) The school may also receive federal monies designated for charter schools under
455 any federal program.
456 (c) Any other charter school [sponsored] authorized by a local school board shall
457 receive funding as provided in Section 53A-1a-513 .
458 (5) (a) A local school board that receives an application for a charter school under this
459 section shall, within 45 days, either accept or reject the application.

460 (b) If the board rejects the application, it shall notify the applicant in writing of the
461 reason for the rejection.
462 (c) The applicant may submit a revised application for reconsideration by the board.
463 (d) If the local school board refuses to [sponsor] authorize the applicant, the applicant
464 may seek a charter from the State [Board of Education] Charter School Board under Section
465 53A-1a-505 .
466 [(e) The local board's action under Subsection (5)(d) is final action subject to judicial
467 review.]
468 (6) The State Board of Education shall make a rule providing for a timeline for the
469 opening of a charter school following the approval of a charter school application by a local
470 school board.
471 (7) (a) After approval of a charter school application, the applicant and the local school
472 board shall set forth the terms and conditions for the operation of the charter school in a written
473 contractual agreement.
474 (b) The agreement is the school's charter.
475 (8) A local school board shall:
476 (a) annually review and evaluate the performance of charter schools authorized by the
477 local school board and hold the schools accountable for their performance;
478 (b) monitor charter schools authorized by the local school board for compliance with
479 federal and state laws, rules, and regulations; and
480 (c) provide technical support to charter schools authorized by the local school board to
481 assist them in understanding and performing their charter obligations.
482 [(6)] (9) A local school board may terminate a charter school it [sponsors under this
483 section for the same reasons and under the same procedures followed by the State Board of
484 Education under Section 53A-1a-509 ] authorizes as provided in Sections 53A-1a-509 and
485 53A-1a-510 .
486 [(7)] (10) The governing body of a local school [board-sponsored] board-authorized
487 charter school shall be independent of the local school board except as otherwise specifically
488 provided in this chapter.
489 Section 17. Section 53A-16-101.5 is amended to read:
490 53A-16-101.5. School LAND Trust Program -- Contents -- Purpose --

491 Distribution of funds -- School plans for use of funds.
492 (1) There is established the School LAND (Learning And Nurturing Development)
493 Trust Program for the state's public schools to provide financial resources to enhance or
494 improve student academic achievement and implement a component of the school
495 improvement plan.
496 (2) (a) The program shall be funded each fiscal year from that portion of the Uniform
497 School Fund consisting of the interest and dividends received in the immediately preceding
498 fiscal year from the investment of monies in the permanent State School Fund.
499 (b) On and after July 1, 2003, the program shall be funded as provided in Subsection
500 (2)(a) up to a maximum of $12,000,000 each fiscal year.
501 (c) The Legislature shall annually allocate, through an appropriation to the State Board
502 of Education, a portion of School LAND Trust Program monies for the administration of the
503 program.
504 (3) (a) The State Board of Education shall allocate the monies referred to in Subsection
505 (2) annually for the fiscal year beginning July 1, 2000, and for each fiscal year thereafter as
506 follows:
507 (i) school districts shall receive 10% of the funds on an equal basis; and
508 (ii) the remaining 90% of the funds shall be distributed on a per student basis, with
509 each district receiving its allocation on the number of students in the district as compared to the
510 state total.
511 (b) Each school district shall distribute its allocation under Subsection (3)(a) to each
512 school within the district on an equal per student basis.
513 (c) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
514 board may make rules regarding the time and manner in which the student count shall be made
515 for allocation of the monies.
516 (4) [In] Except as provided in Subsection (7), in order to receive its allocation under
517 Subsection (3), a school shall have established a school community council under Section
518 53A-1a-108 .
519 (5) (a) The school community council or its subcommittee shall develop a program to
520 use its allocation under Subsection (3) to implement a component of the school's improvement
521 plan, including:

522 (i) the school's identified most critical academic needs;
523 (ii) a recommended course of action to meet the identified academic needs;
524 (iii) a specific listing of any programs, practices, materials, or equipment which the
525 school will need to implement a component of its school improvement plan to have a direct
526 impact on the instruction of students and result in measurable increased student performance;
527 and
528 (iv) how the school intends to spend its allocation of funds under this section to
529 enhance or improve academic excellence at the school.
530 (b) The school may develop a multiyear program, but the program shall be presented
531 and approved by the school community council and the local school board of the district in
532 which the school is located annually and as a prerequisite to receiving program funds allocated
533 under this section.
534 (6) (a) Each school shall:
535 (i) implement the program as approved by the school community council and approved
536 by the local school board;
537 (ii) provide ongoing support for the council's or its subcommittee's program;
538 (iii) meet school board reporting requirements regarding financial and performance
539 accountability of the program; and
540 (iv) publicize to its patrons and the general public on how the funds it received under
541 this section were used to enhance or improve academic excellence at the school and implement
542 a component of the school's improvement plan, including the results of those efforts.
543 (b) (i) Each school through its council or its subcommittee shall prepare and present an
544 annual report of the program to its local school board at the end of the school year.
545 (ii) The report shall detail the use of program funds received by the school under this
546 section and an assessment of the results obtained from the use of the funds.
547 (7) (a) The governing board of a charter school shall prepare a plan for the use of
548 school trust monies that includes the elements listed in Subsection (5).
549 (b) The plan shall be subject to approval by the entity that authorized the establishment
550 of the charter school.
551 Section 18. Section 63-55b-153 is amended to read:
552 63-55b-153. Repeal dates -- Titles 53, 53A, and 53B.

553 (1) Subsection 53-3-205 (9)(a)(i)(D) is repealed July 1, 2007.
554 (2) Subsection 53-3-804 (2)(g) is repealed July 1, 2007.
555 (3) Title 53, Chapter 12, State Olympic Public Safety Command Act, is repealed July
556 1, 2003.
557 (4) Section 53A-1-403.5 is repealed July 1, 2007.
558 (5) Subsection 53A-1a-511 (7)(c) is repealed July 1, 2007.
559 [(5)] (6) Section 53B-8-104.5 is repealed July 1, 2009.
560 Section 19. Repealer.
561 This bill repeals:
562 Section 53A-1a-516, Technical support for charter schools.