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S.B. 281 Enrolled






Chief Sponsor: Howard A. Stephenson

House Sponsor: John Dougall

             8      LONG TITLE
             9      General Description:
             10          This bill requires the State Board of Education to allocate certain Minimum School
             11      Program nonlapsing balances.
             12      Highlighted Provisions:
             13          This bill:
             14          .    requires the State Board of Education to allocate Minimum School Program
             15      nonlapsing balances to provide:
             16              .    one-time signing bonuses for new educators; and
             17              .    one-time performance-based compensation; and
             18          .    makes technical corrections.
             19      Monies Appropriated in this Bill:
             20          This bill appropriates:
             21          .    $25,000,000 from Minimum School Program nonlapsing balances for fiscal year
             22      2008-09 only.
             23      Other Special Clauses:
             24          None
             25      Utah Code Sections Affected:
             26      AMENDS:
             27          53A-17a-148, as last amended by Laws of Utah 2006, Chapter 354
             29      Be it enacted by the Legislature of the state of Utah:

             30          Section 1. Section 53A-17a-148 is amended to read:
             31           53A-17a-148. Use of nonlapsing balances.
             32          (1) As used in this section:
             33          (a) "Education entity" means a school district, charter school, or the Utah Schools for
             34      the Deaf and the Blind.
             35          (b) (i) "New educator" means a person who:
             36          (A) is an educator as defined in Section 53A-17a-153 ;
             37          (B) is hired by an education entity to begin teaching during the 2008-09 school year;
             38          (C) did not work in this state as an educator for an education entity during the 2007-08
             39      school year; and
             40          (D) has never received a signing bonus in this state.
             41          (ii) A new educator may include a person who is returning to education after one or
             42      more years of interrupted service.
             43          (2) The State Board of Education may use Minimum School Program nonlapsing
             44      balances to restore special education funding as follows:
             45          [(1)] (a) up to $902,538 is authorized in fiscal year 2005-06; and
             46          [(2)] (b) up to $902,538 is authorized in fiscal year 2006-07.
             47          (3) The State Board of Education shall use Minimum School Program nonlapsing
             48      balances in fiscal year 2008-09 as follows:
             49          (a) $5,000,000 shall be allocated to education entities to provide one-time signing
             50      bonuses for new educators as provided under Subsection (4), including money for the following
             51      employer-paid benefits:
             52          (i) retirement;
             53          (ii) workers' compensation;
             54          (iii) Social Security; and
             55          (iv) Medicare; and
             56          (b) $20,000,000 shall be allocated to education entities to provide one-time
             57      performance-based compensation as provided under Subsection (5).

             58          (4) (a) Subject to the availability of funding, education entities shall provide a one-time
             59      signing bonus of $1,000 to a new educator.
             60          (b) If the total cost of bonuses and employer-paid benefits under Subsection (4)(a) for
             61      all education entities exceeds $5,000,000, all bonuses shall be reduced pro rata so that the total
             62      cost does not exceed $5,000,000.
             63          (c) To qualify for a bonus, a new educator shall:
             64          (i) be hired prior to October 1, 2008; and
             65          (ii) work for at least 90 days for the education entity.
             66          (5) (a) The $20,000,000 for performance-based compensation shall be allocated to
             67      qualifying education entities on a per pupil basis.
             68          (b) (i) To receive an allocation under Subsection (5)(a), an education entity shall:
             69          (A) submit, prior to July 1, 2008, a written performance-based compensation plan to
             70      the State Board of Education that conforms to guidelines established by the State Board of
             71      Education in rule; and
             72          (B) receive approval of the plan by the State Board of Education.
             73          (ii) The performance-based compensation plan shall provide specific information about
             74      how the education entity intends to spend its allocation, including:
             75          (A) who is eligible for the performance-based compensation;
             76          (B) criteria for awarding performance-based compensation;
             77          (C) the instruments or assessments that may be used to measure or evaluate
             78      performance;
             79          (D) the amount of performance-based compensation that may be awarded; and
             80          (E) whether the performance-based compensation will be based on individual, team, or
             81      school-based performance, or a combination of those.
             82          (iii) The State Board of Education shall send the approved plans to the Executive
             83      Appropriations Committee and the Education Interim Committee by August 1, 2008 for review
             84      and comment.
             85          (c) (i) An education entity shall award performance-based compensation from monies

             86      distributed under this section for employee performance during the 2008-09 school year.
             87          (ii) Performance-based compensation monies may only be used in accordance with an
             88      education entity's performance-based compensation plan.
             89          (iii) If an education entity uses performance-based compensation monies for purposes
             90      other than those stated in this Subsection (5) and its performance-based compensation plan, the
             91      education entity shall reimburse the monies that were improperly used.
             92          (d) An education entity that awards performance-based compensation from monies
             93      distributed under this section shall report the following information to the Executive
             94      Appropriations Committee by June 30, 2009:
             95          (i) the number of employees who received performance-based compensation;
             96          (ii) the total number of employees;
             97          (iii) the average performance-based compensation awarded to employees; and
             98          (iv) the maximum performance-based compensation awarded to an employee.
             99          (6) The State Board of Education may make rules as necessary to administer this
             100      section, in accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act.

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