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First Substitute S.B. 58

Senator Howard A. Stephenson proposes the following substitute bill:


             1     
LIABILITY PROTECTION OF EDUCATORS

             2     
2005 GENERAL SESSION

             3     
STATE OF UTAH

             4     
Sponsor: Howard A. Stephenson

             5     
             6      LONG TITLE
             7      General Description:
             8          This bill requires school district and charter school employees to acknowledge in
             9      writing receipt of an existing disclosure.
             10      Highlighted Provisions:
             11          This bill:
             12          .    requires school district and charter school employees to acknowledge receipt of an
             13      existing liability protection disclosure; and
             14          .    modifies when school districts and charter schools may provide liability protection
             15      information to employees.
             16      Monies Appropriated in this Bill:
             17          None
             18      Other Special Clauses:
             19          None
             20      Utah Code Sections Affected:
             21      AMENDS:
             22          53A-1a-512, as last amended by Chapters 251 and 330, Laws of Utah 2004
             23          53A-3-411, as last amended by Chapters 284 and 315, Laws of Utah 2003
             24          63A-4-204, as last amended by Chapter 266, Laws of Utah 2001
             25          63A-4-204.5, as last amended by Chapter 266, Laws of Utah 2001


             26     
             27      Be it enacted by the Legislature of the state of Utah:
             28          Section 1. Section 53A-1a-512 is amended to read:
             29           53A-1a-512. Employees of charter schools.
             30          (1) A charter school shall select its own employees.
             31          (2) The school's governing body shall determine the level of compensation and all
             32      terms and conditions of employment, except as otherwise provided in Subsections (6) and (7)
             33      and under this part.
             34          (3) The following statutes governing public employees and officers do not apply to
             35      charter schools:
             36          (a) Chapter 8, Utah Orderly School Termination Procedures Act;
             37          (b) Chapter 10, Educator Evaluation; and
             38          (c) Title 52, Chapter 3, Prohibiting Employment of Relatives.
             39          (4) (a) To accommodate differentiated staffing and better meet student needs, a charter
             40      school, under rules adopted by the State Board of Education, shall employ teachers who:
             41          (i) are licensed; or
             42          (ii) on the basis of demonstrated competency, would qualify to teach under alternative
             43      certification or authorization programs.
             44          (b) The school's governing body shall disclose the qualifications of its teachers to the
             45      parents of its students.
             46          (5) (a) An employee of a school district may request a leave of absence in order to
             47      work in a charter school upon approval of the local school board.
             48          (b) While on leave, the employee may retain seniority accrued in the school district and
             49      may continue to be covered by the benefit program of the district if the charter school and the
             50      locally elected school board mutually agree.
             51          (6) Except as provided under Subsection (7), an employee of a charter school shall be a
             52      member of a retirement system under Title 49, Utah State Retirement and Insurance Act.
             53          (7) (a) At the time of application for a charter school, whether sponsored by the state or
             54      a school district, a proposed charter school may make an election of nonparticipation as an
             55      employer for retirement programs under Title 49, Chapter 12, Public Employees' Contributory
             56      Retirement Act and under Title 49, Chapter 13, Public Employees' Noncontributory Retirement


             57      Act.
             58          (b) A charter school that was approved prior to July 1, 2004 may make an election of
             59      nonparticipation prior to December 31, 2004.
             60          (c) An election provided under this Subsection (7):
             61          (i) is a one-time election made at the time specified under Subsection (7)(a) or (b);
             62          (ii) shall be documented by a resolution adopted by the governing body of the charter
             63      school;
             64          (iii) is irrevocable; and
             65          (iv) applies to the charter school as the employer and to all employees of the charter
             66      school.
             67          (d) The governing body of a charter school may offer employee benefit plans for its
             68      employees:
             69          (i) under Title 49, Chapter 20, Public Employees' Benefit and Insurance Program Act;
             70      or
             71          (ii) under any other program.
             72          (8) The governing body of a charter school shall ensure that, prior to the beginning of
             73      each school year, each of its employees signs a document acknowledging that the employee:
             74          (a) has received:
             75          (i) the disclosure required under Section 63A-4-204.5 if the charter school participates
             76      in the Risk Management Fund; or
             77          (ii) written disclosure similar to the disclosure required under Section 63A-4-204.5 if
             78      the charter school does not participate in the Risk Management Fund; and
             79          (b) understands the legal liability protection provided to the employee and what is not
             80      covered, as explained in the disclosure.
             81          Section 2. Section 53A-3-411 is amended to read:
             82           53A-3-411. Employment of school personnel -- Length of contract -- Termination
             83      for cause -- Individual contract of employment -- Employee acknowledgment of liability
             84      protection.
             85          (1) A local school board may enter into a written employment contract for a term not to
             86      exceed five years.
             87          (2) Nothing in the terms of the contract shall restrict the power of a local school board


             88      to terminate the contract for cause at any time.
             89          (3) (a) A local school board may not enter into a collective bargaining agreement that
             90      prohibits or limits individual contracts of employment.
             91          (b) Subsection (3)(a) does not apply to an agreement that was entered into before May
             92      5, 2003.
             93          (4) Each local school board shall:
             94          (a) ensure that each employment contract complies with the requirements of Section
             95      34-32-1.1 ; [and]
             96          (b) comply with the requirements of Section 34-32-1.1 in employing any personnel,
             97      whether by employment contract or otherwise[.]; and
             98          (c) ensure that at the time an employee enters into an employment contract, the
             99      employee shall sign a separate document acknowledging that the employee:
             100          (i) has received:
             101          (A) the disclosure required under Subsection 63A-4-204 (4)(d) if the school district
             102      participates in the Risk Management Fund; or
             103          (B) written disclosure similar to the disclosure required under Section 63A-4-204 if the
             104      school district does not participate in the Risk Management Fund; and
             105          (ii) understands the legal liability protection provided to the employee and what is not
             106      covered, as explained in the disclosure.
             107          Section 3. Section 63A-4-204 is amended to read:
             108           63A-4-204. School district participation in Risk Management Fund.
             109          (1) (a) For the purpose of this section, action by a public school district shall be taken
             110      upon resolution by a majority of the members of the school district's board of education.
             111          (b) (i) Upon approval by the state risk manager and the board of education of the
             112      school district, a public school district may participate in the Risk Management Fund and may
             113      permit a foundation established under Section 53A-4-205 to participate in the Risk
             114      Management Fund.
             115          (ii) Upon approval by the state risk manager and the State Board of Education, a state
             116      public education foundation may participate in the Risk Management Fund.
             117          (c) Subject to any cancellation or other applicable coverage provisions, either the state
             118      risk manager or the public school district may terminate participation in the fund.


             119          (2) The state risk manager shall contract for all insurance, legal, loss adjustment,
             120      consulting, loss control, safety, and other related services necessary to support the insurance
             121      program provided to a participating public school district, except that all supporting legal
             122      services are subject to the prior approval of the state attorney general.
             123          (3) (a) The state risk manager shall treat each participating public school district as a
             124      state agency when participating in the Risk Management Fund.
             125          (b) Each public school district participating in the fund shall comply with the
             126      provisions of this part that affect state agencies.
             127          (4) (a) By no later than March 31 of each year, the risk manager shall prepare, in
             128      writing, the information required by Subsection (4)(b) regarding the coverage against legal
             129      liability provided a school district employee of this state:
             130          (i) by the Risk Management Fund;
             131          (ii) under Title 63, Chapter [30, Utah] 30d, Governmental Immunity Act of Utah; and
             132          (iii) under Title 63, Chapter 30a, Reimbursement of Legal Fees and Costs to Officers
             133      and Employees.
             134          (b) (i) The information described in Subsection (4)(a) shall include:
             135          (A) the eligibility requirements, if any, to receive the coverage;
             136          (B) the basic nature of the coverage for a school district employee, including what is
             137      not covered; and
             138          (C) whether the coverage is primary or in excess of any other coverage the risk
             139      manager knows is commonly available to a school district employee in this state.
             140          (ii) The information described in Subsection (4)(a) may include:
             141          (A) comparisons the risk manager considers beneficial to a school district employee
             142      between:
             143          (I) the coverage described in Subsection (4)(a); and
             144          (II) other coverage the risk manager knows is commonly available to a school district
             145      employee in this state; and
             146          (B) any other information the risk manager considers appropriate.
             147          (c) The risk manager shall provide the information prepared under this Subsection (4)
             148      to each school district that participates in the Risk Management Fund.
             149          (d) A school district that participates in the Risk Management Fund shall provide a


             150      copy of the information described in Subsection (4)(c) to each school district employee within
             151      the school district:
             152          (i) at the time an employee enters into an employment contract and signs a separate
             153      acknowledgment of legal liability protection in accordance with Section 53A-3-411 ; or
             154          (ii) if the school district does not provide the information to the employee pursuant to
             155      Subsection (4)(d)(i):
             156          [(i)] (A) within 30 days of the day the school district employee is hired by the school
             157      district; and
             158          [(ii)] (B) by no later than April 15 of each calendar year.
             159          Section 4. Section 63A-4-204.5 is amended to read:
             160           63A-4-204.5. Charter school participation in Risk Management Fund.
             161          (1) A charter school established under the authority of Title 53A, Chapter 1a, Part 5,
             162      The Utah Charter Schools Act, may participate in the Risk Management Fund upon the
             163      approval of the state risk manager and the governing body of the charter school.
             164          (2) (a) For purposes of administration, the state risk manager shall treat each charter
             165      school participating in the fund as a state agency.
             166          (b) Each charter school participating in the fund shall comply with the provisions of
             167      this part that affect state agencies.
             168          (3) (a) By no later than March 31 of each year, the risk manager shall prepare, in
             169      writing, the information required by Subsection (3)(b) regarding the coverage against legal
             170      liability provided a charter school employee of this state:
             171          (i) by the Risk Management Fund;
             172          (ii) under Title 63, Chapter [30] 30d, Utah Governmental Immunity Act of Utah; and
             173          (iii) under Title 63, Chapter 30a, Reimbursement of Legal Fees and Costs to Officers
             174      and Employees.
             175          (b) (i) The information described in Subsection (3)(a) shall include:
             176          (A) the eligibility requirements, if any, to receive the coverage;
             177          (B) the basic nature of the coverage for a charter school employee, including what is
             178      not covered; and
             179          (C) whether the coverage is primary or in excess of any other coverage the risk
             180      manager knows is commonly available to a charter school employee in this state.


             181          (ii) The information described in Subsection (3)(a) may include:
             182          (A) comparisons the risk manager considers beneficial to a charter school employee
             183      between:
             184          (I) the coverage described in Subsection (3)(a); and
             185          (II) other coverage the risk manager knows is commonly available to a charter school
             186      employee in this state; and
             187          (B) any other information the risk manager considers appropriate.
             188          (c) The risk manager shall provide the information prepared under this Subsection (3)
             189      to each charter school that participates in the Risk Management Fund.
             190          (d) A charter school that participates in the Risk Management Fund shall provide a
             191      copy of the information described in Subsection (3)(c) to each charter school employee within
             192      the charter school:
             193          (i) within 30 days of the day the charter school employee is hired by the charter school;
             194      and
             195          (ii) by no later than April 15 of each calendar year.


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