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First Substitute S.B. 3

Representative Gordon E. Snow proposes the following substitute bill:





Sponsor: Howard A. Stephenson

             7      LONG TITLE
             8      General Description:
             9          This bill provides funding for the Minimum School Program.
             10      Highlighted Provisions:
             11          This bill:
             12          .    establishes a ceiling for the state contribution to the maintenance and operations
             13      portion of the Minimum School Program for fiscal year 2004-05 of $1,698,739,911;
             14          .    establishes the value of the weighted pupil unit at $2,182;
             15          .    appropriates $27,288,900 to the State Board of Education for fiscal year 2004-05 for
             16      school building aid programs for school districts;
             17          .    makes one-time appropriations to the State Board of Education for fiscal year
             18      2003-04 for distribution to charter schools and the Electronic High School;     
             19          .    modifies the state guarantee under the voted leeway and board leeway programs;     
             20          .    requires that a portion of per pupil funding for charter schools shall be used for
             21      funding school facilities;
             22          .    specifies the number of foreign exchange students that may be included in a school
             23      district's or charter school's membership and attendance count for the purpose of
             24      apportioning state monies;
             25          .    transfers the responsibility for approving exchange student agencies from the State

             26      Board of Education to local school boards and charter school governing boards;
             27          .    directs the State Board of Education to make rules providing for fees for adult
             28      education; and
             29          .    requires the State Board of Education to use a portion of nonlapsing balances for
             30      certain purposes.
             31      Monies Appropriated in this Bill:
             32          This bill appropriates from the Uniform School Fund:
             33          .    $1,726,028,811 for fiscal year 2004-05; and
             34          .    $891,000 for fiscal year 2003-04.
             35      Other Special Clauses:
             36          This bill provides an effective date.
             37      Utah Code Sections Affected:
             38      AMENDS:
             39          53A-1a-513, as last amended by Chapter 320, Laws of Utah 2003
             40          53A-2-206, as last amended by Chapter 320, Laws of Utah 2003
             41          53A-15-401, as enacted by Chapter 2, Laws of Utah 1988
             42          53A-15-403, as enacted by Chapter 2, Laws of Utah 1988
             43          53A-17a-103, as last amended by Chapter 320, Laws of Utah 2003
             44          53A-17a-104, as last amended by Chapter 320, Laws of Utah 2003
             45          53A-17a-131.17, as last amended by Chapter 320, Laws of Utah 2003
             46          53A-17a-133, as last amended by Chapter 320, Laws of Utah 2003
             47          53A-17a-134, as last amended by Chapters 335 and 336, Laws of Utah 2001
             48          53A-17a-135, as last amended by Chapter 320, Laws of Utah 2003
             49          53A-17a-148, as last amended by Chapter 320, Laws of Utah 2003
             50          53A-17a-149, as enacted by Chapter 320, Laws of Utah 2003
             51          53A-21-105, as last amended by Chapter 320, Laws of Utah 2003
             52      Uncodified Material Affected:
             55      Be it enacted by the Legislature of the state of Utah:
             56          Section 1. Section 53A-1a-513 is amended to read:

             57           53A-1a-513. Funding for charter schools.
             58          (1) (a) Charter schools shall receive funding as described in this section, except
             59      Subsections (2) through (7) do not apply to charter schools described in Subsection (1)(b).
             60          (b) Charter schools sponsored by local school boards that are converted from district
             61      schools or operate in district facilities without paying reasonable rent shall receive funding as
             62      prescribed in Section 53A-1a-515 .
             63          (2) (a) Except as provided in Subsection (2)(b), a charter school shall receive state
             64      funds, as applicable, on the same basis as a school district receives funds.
             65          (b) In distributing funds under Title 53A, Chapter 17a, Minimum School Program Act,
             66      to charter schools, charter school pupils shall be weighted, where applicable, as follows:
             67          (i) .55 for kindergarten pupils;
             68          (ii) .9 for pupils in grades 1-6;
             69          (iii) .99 for pupils in grades 7-8; and
             70          (iv) 1.2 for pupils in grades 9-12.
             71          (c) The State Board of Education shall make rules in accordance with Title 63, Chapter
             72      46a, Utah Administrative Rulemaking Act, to administer Subsection (2)(b), including hold
             73      harmless provisions to maintain a charter elementary school's funding level for a period of two
             74      years after the effective date of the distribution formula.
             75          (d) Subsection (2)(b) does not apply to funds appropriated to charter schools to replace
             76      local property tax revenues.
             77          (3) The State Board of Education shall adopt rules to provide for the distribution of
             78      monies to charter schools under this section.
             79          (4) (a) The Legislature shall provide an appropriation for charter schools for each of
             80      their students to replace some of the local property tax revenues that are not available to charter
             81      schools. The amount of money provided for each charter school student shall be determined
             82      by:
             83          [(a)] (i) calculating the sum of:
             84          [(i)] (A) school districts' operations and maintenance revenues derived from local
             85      property taxes, except revenues from imposing a minimum basic tax rate pursuant to Section
             86      53A-17a-135 ;
             87          [(ii)] (B) school districts' capital projects revenues derived from local property taxes;

             88      and
             89          [(iii)] (C) school districts' expenditures for interest on debt; and
             90          [(b)] (ii) dividing the sum by the total average daily membership of the districts'
             91      schools.
             92          (b) Of the monies provided to a charter school under Subsection (4)(a), 10% shall be
             93      expended for funding school facilities only.
             94          (5) Charter schools are eligible to receive federal funds if they meet all applicable
             95      federal requirements and comply with relevant federal regulations.
             96          (6) The State Board of Education shall distribute funds for charter school students
             97      directly to the charter school.
             98          (7) (a) Notwithstanding Subsection (2), a charter school is not eligible to receive state
             99      transportation funding.
             100          (b) The board shall also adopt rules relating to the transportation of students to and
             101      from charter schools, taking into account Sections 53A-2-210 and 53A-17a-127 .
             102          (c) The governing body of the charter school may provide transportation through an
             103      agreement or contract with the local school board, a private provider, or with parents.
             104          (8) (a) (i) The state superintendent of public instruction may allocate grants for both
             105      start-up and ongoing costs to eligible charter school applicants from monies appropriated for
             106      the implementation of this part.
             107          (ii) Applications for the grants shall be filed on a form determined by the state
             108      superintendent and in conjunction with the application for a charter.
             109          (iii) The amount of a grant may vary based upon the size, scope, and special
             110      circumstances of the charter school.
             111          (iv) The governing board of the charter school shall use the grant to meet the expenses
             112      of the school as established in the school's charter.
             113          (b) The State Board of Education shall coordinate the distribution of federal monies
             114      appropriated to help fund costs for establishing and maintaining charter schools within the
             115      state.
             116          (9) (a) A charter school may receive, hold, manage and use any devise, bequest, grant,
             117      endowment, gift, or donation of any property made to the school for any of the purposes of this
             118      part.

             119          (b) It is unlawful for any person affiliated with a charter school to demand or request
             120      any gift, donation, or contribution from a parent, teacher, employee, or other person affiliated
             121      with the charter school as a condition for employment or enrollment at the school or continued
             122      attendance at the school.
             123          (10) The State Office of Education shall use up to $1,044,000 of funding provided for
             124      new growth to fund additional growth needs in charter schools in fiscal year 2005.
             125          Section 2. Section 53A-2-206 is amended to read:
             126           53A-2-206. Exchange and interstate compact students -- Inclusion in attendance
             127      count -- Annual report -- Requirements for exchange student agencies.
             128          (1) A school district or charter school may include the following students in the
             129      district's or school's membership and attendance [of students] count for the purpose of
             130      apportionment of state monies [if]:
             131          (a) [(i) the student is] a foreign exchange student sponsored by an agency approved by
             132      the [State Board of Education; and] district's local school board or charter school's governing
             133      board, subject to the limitation of Subsection (2);
             134          [(ii) the agency sponsoring the foreign exchange student is also sponsoring a resident
             135      student of the district who is enrolled in a school in a foreign country;]
             136          (b) [the] a student [is] enrolled under an interstate compact, established between the
             137      State Board of Education and the state education authority of another state, under which a
             138      student from one compact state would be permitted to enroll in a public school in the other
             139      compact state on the same basis as a resident student of the receiving state; or
             140          (c) [the] a student [is] receiving services under the Compact on Placement of Children.
             141          (2) The number of foreign exchange students that may be counted for the purpose of
             142      apportioning state monies shall be the lesser of:
             143          (a) the number of foreign exchange students:
             144          (i) enrolled in the school district or charter school; and
             145          (ii) sponsored by an exchange student agency approved by the district's local school
             146      board or charter school's governing board; or
             147          (b) the number of students that have withdrawn from the school district or charter
             148      school to participate in a foreign exchange program in a foreign country.
             149          (3) A school district or charter school may:

             150          (a) enroll foreign exchange students that do not qualify for state monies; and
             151          (b) pay for the costs of those students with other funds available to the school district
             152      or charter school.
             153          (4) Due to the benefits to all students of having the opportunity to become familiar
             154      with individuals from diverse backgrounds and cultures, school districts are encouraged to
             155      enroll foreign exchange students, as provided in Subsection (3), particularly in schools with
             156      declining or stable enrollments where the incremental cost of enrolling the foreign exchange
             157      student may be minimal.
             158          [(2)] (5) The board shall make an annual report to the Legislature on the number of
             159      exchange students and the number of interstate compact students sent to or received from
             160      public schools outside the state.
             161          [(3)] (6) (a) [The] A local school board or charter school governing board shall require
             162      each approved exchange student agency to provide it with a sworn affidavit of compliance
             163      prior to the beginning of each school year.
             164          (b) The affidavit shall include the following assurances:
             165          (i) that the agency has complied with all applicable [rules] policies of the board;
             166          (ii) that a household study, including a background check of all adult residents, has
             167      been made of each household where an exchange student is to reside, and that the study was of
             168      sufficient scope to provide reasonable assurance that the exchange student will receive proper
             169      care and supervision in a safe environment;
             170          (iii) that host parents have received training appropriate to their positions, including
             171      information about enhanced criminal penalties under Subsection 76-5-406 (10) for persons who
             172      are in a position of special trust;
             173          (iv) that a representative of the exchange student agency shall visit each student's place
             174      of residence at least once each month during the student's stay in Utah;
             175          (v) that the agency will cooperate with school and other public authorities to ensure
             176      that no exchange student becomes an unreasonable burden upon the public schools or other
             177      public agencies;
             178          (vi) that each exchange student will be given in the exchange student's native language
             179      names and telephone numbers of agency representatives and others who could be called at any
             180      time if a serious problem occurs; and

             181          (vii) that alternate placements are readily available so that no student is required to
             182      remain in a household if conditions appear to exist which unreasonably endanger the student's
             183      welfare.
             184          [(4)] (7) (a) [The] A local school board or charter school governing board shall provide
             185      each approved exchange student agency with a list of names and telephone numbers of
             186      individuals not associated with the agency who could be called by an exchange student in the
             187      event of a serious problem.
             188          (b) The agency shall make a copy of the list available to each of its exchange students
             189      in the exchange student's native language.
             190          Section 3. Section 53A-15-401 is amended to read:
             191           53A-15-401. State Board of Education to supervise.
             192          (1) The general control and supervision, but not the direct management, of adult
             193      education is vested in the State Board of Education.
             194          (2) The board has the following powers:
             195          (a) makes and enforces rules to organize, conduct, and supervise adult education;
             196          (b) appoints state staff for the adult education program, establishes their duties, and
             197      fixes their compensation;
             198          (c) determines the qualifications of, and issues teaching certificates to, persons
             199      employed to give adult education instruction; and
             200          (d) determines the basis of apportionment and distributes funds made available for
             201      adult education.
             202          (3) (a) The State Board of Education shall make rules providing for the establishment
             203      of fees which shall be imposed by local school boards for participation in adult education
             204      programs.
             205          (b) A fee structure for adult education shall take into account the ability of a Utah
             206      resident who participates in adult education to pay the fees.
             207          (c) Sections 53A-12-103 and 53A-12-104 pertaining to fees and fee waivers in
             208      secondary schools do not apply to adult education.
             209          Section 4. Section 53A-15-403 is amended to read:
             210           53A-15-403. Local school boards' authority to direct adult education programs.
             211          A local school board may do the following:

             212          (1) establish and maintain classes for adult education, with classes being held at times
             213      and places convenient and accessible to the members of the class;
             214          (2) raise and appropriate funds for an adult education program;
             215          (3) subject to [Section] Sections 53A-12-101 and 53A-15-401 , determine fees for
             216      participation in an adult education program; and
             217          (4) hire persons to instruct adult education classes.
             218          Section 5. Section 53A-17a-103 is amended to read:
             219           53A-17a-103. Definitions.
             220          As used in this chapter:
             221          (1) "Basic state-supported school program" or "basic program" means public education
             222      programs for kindergarten, elementary, and secondary school students that are operated and
             223      maintained for the amount derived by multiplying the number of weighted pupil units for each
             224      district by [$2,150] $2,182, except as otherwise provided in this chapter.
             225          (2) "Certified revenue levy" means a property tax levy that provides an amount of ad
             226      valorem property tax revenue equal to the sum of:
             227          (a) the amount of property tax revenue to be generated statewide in the previous year
             228      from imposing a minimum basic tax rate, as specified in Subsection 53A-17a-135 (1)(a); and
             229          (b) the product of:
             230          (i) new growth, as defined in Section 59-2-924 and rules of the State Tax Commission;
             231      and
             232          (ii) the minimum basic tax rate certified by the State Tax Commission for the previous
             233      year.
             234          (3) "Leeway program" or "leeway" means a state-supported voted leeway program or
             235      board leeway program authorized under Section 53A-17a-133 or 53A-17a-134 .
             236          (4) "Pupil in average daily membership (ADM)" means a full-day equivalent pupil.
             237          (5) (a) "State-supported minimum school program" or "minimum school program"
             238      means public school programs for kindergarten, elementary, and secondary schools as
             239      described in this Subsection (5).
             240          (b) The minimum school program established in the districts shall include the
             241      equivalent of a school term of nine months as determined by the State Board of Education.
             242          (c) (i) The board shall establish the number of days or equivalent instructional hours

             243      that school is held for an academic school year.
             244          (ii) Education, enhanced by utilization of technologically enriched delivery systems,
             245      when approved by local school boards, shall receive full support by the State Board of
             246      Education as it pertains to fulfilling the attendance requirements, excluding time spent viewing
             247      commercial advertising.
             248          (d) The program includes the total of the following annual costs:
             249          (i) the cost of a basic state-supported school program; and
             250          (ii) other amounts appropriated in this chapter in addition to the basic program.
             251          (6) "Weighted pupil unit or units or WPU or WPUs" means the unit of measure of
             252      factors that is computed in accordance with this chapter for the purpose of determining the
             253      costs of a program on a uniform basis for each district.
             254          Section 6. Section 53A-17a-104 is amended to read:
             255           53A-17a-104. Amount of state's contribution toward minimum school program.
             256          (1) The total contribution of the state toward the cost of the minimum school program
             257      may not exceed the sum of [$1,611,343,274] $1,698,739,911 for the fiscal year beginning July
             258      1, [2003] 2004, except as otherwise provided by the Legislature through supplemental
             259      appropriations.
             260          (2) [There] As on ongoing appropriation subject to future budget constraints, there is
             261      appropriated from the Uniform School Fund for fiscal year 2004-05 to the State Board of
             262      Education for distribution to school districts and charter schools, in accordance with this
             263      chapter, monies for the following purposes and in the following amounts:
             264          (a) basic program - kindergarten, [$43,930,950 (20,433 WPUs)] $49,053,542 (22,481
             265      WPUs);
             266          (b) basic program - grades 1-12, [$930,195,350 (432,649 WPUs)] $956,377,146
             267      (438,303 WPUs);
             268          (c) basic program - professional staff, [$89,328,200 (41,548 WPUs)] $93,420,148
             269      (42,814 WPUs);
             270          (d) basic program - administrative costs, [$3,558,250 (1,655 WPUs)] $3,626,484
             271      (1,662 WPUs);
             272          (e) basic program - necessarily existent small schools and units for consolidated
             273      schools, [$16,193,800 (7,532 WPUs)] $16,729,394 (7,667 WPUs);

             274          (f) special education - regular program - add-on WPUs for students with disabilities,
             275      [$115,001,350 (53,489 WPUs)] $117,590,162 (53,891 WPUs);
             276          (g) preschool special education program, [$13,478,350 (6,269 WPUs)] $14,540,848
             277      (6,664 WPUs);
             278          (h) self-contained regular WPUs, [$26,696,550 (12,417 WPUs)] $27,447,378 (12,579
             279      WPUs);
             280          (i) extended year program for severely disabled, [$690,150 (321 WPUs)] $765,882
             281      (351 WPUs);
             282          (j) special education programs in state institutions and district impact aid, [$2,919,700
             283      (1,358 WPUs)] $3,006,796 (1,378 WPUs);
             284          (k) applied technology and technical education district programs, [$50,198,200 (23,348
             285      WPUs)] $51,709,036 (23,698 WPUs), including [$915,861] $943,426 for summer applied
             286      technology agriculture programs;
             287          (l) applied technology district set-aside, [$2,139,250 (995 WPUs)] $2,203,820 (1,010
             288      WPUs);
             289          (m) class size reduction, [$63,977,550 (29,757 WPUs)] $65,902,946 (30,203 WPUs);
             290          (n) Social Security and retirement programs, [$232,739,964] $261,482,231;
             291          (o) pupil transportation to and from school, [$56,245,567] $57,061,128, of which not
             292      less than [$1,952,878] $1,981,195 shall be allocated to the Utah Schools for the Deaf and Blind
             293      to pay for transportation costs of the schools' students;
             294          (p) guarantee transportation levy, $500,000;
             295          (q) Local Discretionary Block Grant Program, $21,824,448;
             296          (r) Interventions for Student Success Block Grant Program, [$15,308,708, of which
             297      $400,000 shall be used for special intervention summer programs] $14,908,708;
             298          (s) Quality Teaching Block Grant Program, $57,426,623;
             299          [(t) math and science - beginning teacher recruitment, $600,000;]
             300          [(u)] (t) highly impacted schools, $5,123,207;
             301          [(v)] (u) at-risk programs, $24,778,484;
             302          [(w)] (v) adult education, $5,826,865;
             303          [(x)] (w) accelerated learning programs, $8,695,104;
             304          [(y)] (x) electronic high school, [$400,000] $700,000;

             305          [(z)] (y) School LAND Trust Program, [$10,050,000] $8,820,000;
             306          [(aa)] (z) state-supported voted leeway, [$149,234,487] $159,084,242;
             307          [(bb)] (aa) state-supported board leeway, [$43,367,832] $45,357,016; and
             308          [(cc)] (bb) charter schools, pursuant to Section 53A-1a-513 , [$2,377,172] $5,002,450.
             309          Section 7. Section 53A-17a-131.17 is amended to read:
             310           53A-17a-131.17. State contribution for School LAND Trust Program.
             311          [(1) (a) Except as provided in Subsection (1)(b), there is appropriated $10,050,000 to
             312      the State Board of Education as the state's contribution for the School LAND Trust Program for
             313      the fiscal year beginning July 1, 2003.]
             314          [(b)] (1) If the amount of money in the Uniform School Fund described in Subsection
             315      53A-16-101.5( 2) is less than or greater than [$10,050,000] the money appropriated in Section
             316      53A-17a-104 for the School LAND Trust Program, the appropriation shall be equal to the
             317      amount of money in the Uniform School Fund described in Subsection 53A-16-101.5 (2), up to
             318      a maximum of $12,000,000.
             319          (2) The State Board of Education shall distribute the money appropriated in Subsection
             320      (1) in accordance with Section 53A-16-101.5 and rules established by the board in accordance
             321      with Title 63, Chapter 46a, Utah Administrative Rulemaking Act.
             322          Section 8. Section 53A-17a-133 is amended to read:
             323           53A-17a-133. State-supported voted leeway program authorized -- Election
             324      requirements -- State guarantee -- Reconsideration of the program.
             325          (1) An election to consider adoption or modification of a voted leeway program is
             326      required if initiative petitions signed by 10% of the number of electors who voted at the last
             327      preceding general election are presented to the local school board or by action of the board.
             328          (2) (a) (i) To establish a voted leeway program, a majority of the electors of a district
             329      voting at an election in the manner set forth in Section 53A-16-110 must vote in favor of a
             330      special tax.
             331          (ii) The tax rate may not exceed .002 per dollar of taxable value.
             332          (b) The district may maintain a school program which exceeds the cost of the program
             333      referred to in Section 53A-17a-145 with this voted leeway.
             334          (c) In order to receive state support the first year, a district must receive voter approval
             335      no later than December 1 of the year prior to implementation.

             336          (3) (a) Under the voted leeway program, the state shall contribute an amount sufficient
             337      to guarantee [$17.14] $17.54 per weighted pupil unit for each .0001 of the first .0016 per dollar
             338      of taxable value.
             339          (b) The same dollar amount guarantee per weighted pupil unit for the .0016 per dollar
             340      of taxable value under Subsection (3)(a) shall apply to the board-approved leeway authorized
             341      in Section 53A-17a-134 , so that the guarantee shall apply up to a total of .002 per dollar of
             342      taxable value if a school district levies a tax rate under both programs.
             343          (c) (i) Beginning July 1, [2004] 2005, the [$17.14] $17.54 guarantee under Subsections
             344      (3)(a) and (b) shall be indexed each year to the value of the weighted pupil unit by making the
             345      value of the guarantee equal to .008544 times the value of the prior year's weighted pupil unit.
             346          (ii) The guarantee shall increase by .0005 times the value of the prior year's weighted
             347      pupil unit for each succeeding year until the guarantee is equal to .010544 times the value of
             348      the prior year's weighted pupil unit.
             349          (d) (i) The amount of state guarantee money to which a school district would otherwise
             350      be entitled to under this Subsection (3) may not be reduced for the sole reason that the district's
             351      levy is reduced as a consequence of changes in the certified tax rate under Section 59-2-924
             352      pursuant to changes in property valuation.
             353          (ii) Subsection (3)(d)(i) applies for a period of two years following any such change in
             354      the certified tax rate.
             355          (4) (a) An election to modify an existing voted leeway program is not a reconsideration
             356      of the existing program unless the proposition submitted to the electors expressly so states.
             357          (b) A majority vote opposing a modification does not deprive the district of authority to
             358      continue an existing program.
             359          (c) If adoption of a leeway program is contingent upon an offset reducing other local
             360      school board levies, the board must allow the electors, in an election, to consider modifying or
             361      discontinuing the program prior to a subsequent increase in other levies that would increase the
             362      total local school board levy.
             363          (d) Nothing contained in this section terminates, without an election, the authority of a
             364      school district to continue an existing voted leeway program previously authorized by the
             365      voters.
             366          Section 9. Section 53A-17a-134 is amended to read:

             367           53A-17a-134. Board-approved leeway -- Purpose -- State support -- Disapproval.
             368          (1) Each local school board may levy a tax rate of up to .0004 per dollar of taxable
             369      value to maintain a school program above the cost of the basic school program as follows:
             370          (a) a local school board shall use the monies generated by the tax for class size
             371      reduction within the school district;
             372          (b) if a local school board determines that the average class size in the school district is
             373      not excessive, it may use the monies for other school purposes but only if the board has
             374      declared the use for other school purposes in a public meeting prior to levying the tax rate; and
             375          (c) a district may not use the monies for other school purposes under Subsection (1)(b)
             376      until it has certified in writing that its class size needs are already being met and has identified
             377      the other school purposes for which the monies will be used to the State Board of Education
             378      and the state board has approved their use for other school purposes.
             379          (2) (a) The state shall contribute an amount sufficient to guarantee [$17.14] $17.54 per
             380      weighted pupil unit for each .0001 per dollar of taxable value.
             381          (b) The guarantee shall increase in the same manner as provided for the voted leeway
             382      guarantee in Subsections 53A-17a-133 (3)(c)(i) and (ii).
             383          (3) The levy authorized under this section is not in addition to the maximum rate of
             384      .002 authorized in Section 53A-17a-133 , but is a board-authorized component of the total tax
             385      rate under that section.
             386          (4) As an exception to Section 53A-17a-133 , the board-authorized levy does not
             387      require voter approval, but the board may require voter approval if requested by a majority of
             388      the board.
             389          (5) An election to consider disapproval of the board-authorized levy is required, if
             390      within 60 days after the levy is established by the board, referendum petitions signed by the
             391      number of legal voters required in Section 20A-7-301 , who reside within the school district, are
             392      filed with the school district.
             393          (6) (a) A local school board shall establish its board-approved levy by April 1 to have
             394      the levy apply to the fiscal year beginning July 1 in that same calendar year except that if an
             395      election is required under this section, the levy applies to the fiscal year beginning July 1 of the
             396      next calendar year.
             397          (b) The approval and disapproval votes authorized in Subsections (4) and (5) shall

             398      occur at a general election in even-numbered years, except that a vote required under this
             399      section in odd-numbered years shall occur at a special election held on a day in odd-numbered
             400      years that corresponds to the general election date. The school district shall pay for the cost of
             401      a special election.
             402          (7) (a) Modification or termination of a voter-approved leeway rate authorized under
             403      this section is governed by Section 53A-17a-133 .
             404          (b) A board-authorized leeway rate may be modified or terminated by a majority vote
             405      of the board subject to disapproval procedures specified in this section.
             406          (8) A board levy election does not require publication of a voter information pamphlet.
             407          Section 10. Section 53A-17a-135 is amended to read:
             408           53A-17a-135. Minimum basic tax rate -- Certified revenue levy.
             409          (1) (a) In order to qualify for receipt of the state contribution toward the basic program
             410      and as its contribution toward its costs of the basic program, each school district shall impose a
             411      minimum basic tax rate per dollar of taxable value that generates [$212,110,681] $217,590,703
             412      in revenues statewide.
             413          (b) The preliminary estimate for the [2003-04] 2004-05 minimum basic tax rate is
             414      [.001743] .001754.
             415          (c) The State Tax Commission shall certify on or before June 22 the rate that generates
             416      [$212,110,681] $217,590,703 in revenues statewide.
             417          (d) If the minimum basic tax rate exceeds the certified revenue levy as defined in
             418      Section 53A-17a-103 , the state is subject to the notice requirements of Section 59-2-926 .
             419          (2) (a) The state shall contribute to each district toward the cost of the basic program in
             420      the district that portion which exceeds the proceeds of the levy authorized under Subsection
             421      (1).
             422          (b) In accord with the state strategic plan for public education and to fulfill its
             423      responsibility for the development and implementation of that plan, the Legislature instructs
             424      the State Board of Education, the governor, and the Office of Legislative Fiscal Analyst in each
             425      of the coming five years to develop budgets that will fully fund student enrollment growth.
             426          (3) (a) If the proceeds of the levy authorized under Subsection (1) equal or exceed the
             427      cost of the basic program in a school district, no state contribution shall be made to the basic
             428      program.

             429          (b) The proceeds of the levy authorized under Subsection (1) which exceed the cost of
             430      the basic program shall be paid into the Uniform School Fund as provided by law.
             431          Section 11. Section 53A-17a-148 is amended to read:
             432           53A-17a-148. Use of nonlapsing balances.
             433          (1) For the fiscal year beginning on July 1, [2003] 2004, the State Board of Education
             434      may use up to $300,000 of nonlapsing balances for the following:
             435          (a) to stabilize the value of the weighted pupil unit;
             436          (b) to maintain program levels in school districts that may experience unanticipated
             437      and unforeseen losses of students;
             438          (c) to equalize programs in school districts where a strict application of the law
             439      provides inequity;
             440          (d) to pay the added cost when students attend school out of state; and
             441          [(e) to assist in the operation of the laboratory school at Utah State University, through
             442      the allocation of monies for a career ladder program at the school; and]
             443          [(f)] (e) other uses approved by the board.
             444          (2) For the fiscal year beginning on July 1, [2003] 2004, the State Board of Education
             445      may use up to [$2,500,000] $1,000,000 of uncommitted nonlapsing balances for adult high
             446      school completion and adult basic skill programs.
             447          (3) For the fiscal year beginning on July 1, 2004, the State Board of Education shall
             448      use Minimum School Program nonlapsing balances to supplement the appropriation to charter
             449      schools for the replacement of local property tax revenues, up to the amount allowed under
             450      their formula detailed in Subsection 53A-1a-513 (4).
             451          Section 12. Section 53A-17a-149 is amended to read:
             452           53A-17a-149. Funds for classroom supplies.
             453          (1) If the interest and dividends deposited in the Uniform School Fund from the
             454      investment of monies in the Permanent State School Fund are sufficient to provide the
             455      maximum amount of funds to the School LAND Trust Program as provided in Section
             456      53A-16-101.5 , the balance of the interest and dividends, up to a maximum of $10,000,000,
             457      shall be appropriated by the Legislature for teachers' classroom supplies.
             458          (2) (a) Money appropriated for classroom supplies pursuant to Subsection (1) shall be
             459      distributed to classroom teachers in school districts, the Schools for the Deaf and the Blind, the

             460      Edith Bowen Laboratory School, and charter schools on the basis of the number of classroom
             461      teachers in each school as compared to the total number of classroom teachers.
             462          (b) Each teacher in grades kindergarten through six shall receive up to $225 and each
             463      teacher in grades seven through 12 shall receive up to $175 from the appropriation.
             464          (c) Teachers shall spend the money for school supplies, materials, or field trips under
             465      rules adopted by the State Board of Education.
             466          (d) As used in this section, "classroom teacher" or "teacher" means permanent teacher
             467      positions filled by one teacher or two or more job-sharing teachers:
             468          (i) who are licensed personnel;
             469          (ii) who are paid on the teacher's salary schedule;
             470          (iii) who are hired for an entire contract period; and
             471          (iv) whose primary function is to provide instructional or a combination of
             472      instructional and counseling services to students in public schools.
             473          Section 13. Section 53A-21-105 is amended to read:
             474           53A-21-105. State contribution to capital outlay programs.
             475          (1) [The state contribution toward the cost of the programs established under Section
             476      53A-21-102 for the fiscal year beginning July 1, 2003, shall consist of an appropriation totaling
             477      $27,228,900 to the State Board of Education] As an ongoing appropriation subject to future
             478      budget constraints, there is appropriated from the Uniform School Fund for fiscal year
             479      2004-05, $27,288,900 to the State Board of Education for the capital outlay programs created
             480      in Section 53A-21-102 .
             481          (2) Of the monies appropriated in Subsection (1), the State Board of Education shall
             482      distribute:
             483          (a) $24,358,000 in accordance with the Capital Outlay Foundation Program described
             484      in Section 53A-21-103 ; and
             485          (b) $2,930,900 in accordance with the Enrollment Growth Program described in
             486      Section 53A-21-103.5 .
             487          Section 14. Appropriation to University of Utah Reading Clinic.
             488          As an ongoing appropriation subject to future budget constraints, there is appropriated
             489      from the Uniform School Fund for fiscal year 2004-05, $375,000 to the University of Utah for
             490      the University of Utah Reading Clinic.

             491          Section 15. One-time appropriation for fiscal year 2004-05.
             492          (1) There is appropriated from the Uniform School Fund to the State Board of
             493      Education, for fiscal year 2004-05 only:
             494          (a) $5,500,000 for classroom supplies and materials to be distributed to, and expended
             495      by, teachers in accordance with Subsection 53A-17a-149 (2);
             496          (b) $1,600,000 for adult education; and
             497          (c) $17,200,400 for a bonus for employees of school districts and charter schools.
             498          (2) It is the intent of the Legislature that the appropriation under Subsection (1)(c)
             499      shall:
             500          (a) fund a 1% cost-of-living allowance for employees of school districts and charter
             501      schools effective June 19, 2004; and
             502          (b) be distributed as a one-time bonus in December 2004 to each school district and
             503      charter school employee, calculated on an FTE equivalent basis.
             504          Section 16. One-time appropriation for fiscal year 2003-04.
             505          (1) There is appropriated from the Uniform School Fund to the State Board of
             506      Education, for fiscal year 2003-04 only:
             507          (a) $716,000 to be distributed to charter schools for the replacement of local property
             508      tax revenues pursuant to Section 53A-1a-513 ; and
             509          (b) $175,000 for the Electronic High School.
             510          (2) It is the intent of the Legislature that the funds appropriated in fiscal year 2003-04
             511      to the Electronic High School be nonlapsing. These funds shall be used to fund growth needs
             512      in the current school year and fund anticipated growth in the 2004-05 school year.
             513          Section 17. Legislative intent.
             514          It is the intent of the Legislature:
             515          (1) to recognize the additional cost of training and or testing related to being
             516      recognized as a "Highly Qualified Teacher" and encourage the state and local school districts to
             517      give consideration to funding through the Quality Teaching Block Grant the additional out of
             518      pocket expense that current certified teachers will be asked to bear a high priority; and
             519          (2) that $2,500,000 for the Performance Plus Reading Initiative is one-time for fiscal
             520      year 2004-05, with the understanding that the Legislature will consider ongoing funding in
             521      subsequent years.

             522          Section 18. Effective date.
             523          This bill takes effect on July 1, 2004, except that uncodified Section 16, One-time
             524      appropriation for fiscal year 2003-04 takes effect on May 4, 2004.

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