First Substitute S.B. 219

Senator Michael G. Waddoups proposes the following substitute bill:

1 SCHOOL DISTRICT DIVISION FUNDING
2 2008 GENERAL SESSION
3 STATE OF UTAH
4 Chief Sponsor: Michael G. Waddoups
5 House Sponsor: ____________
6
7 LONG TITLE
8 General Description:
9 This bill allocates funding for school capital outlay under certain circumstances.
10 Highlighted Provisions:
11 This bill:
12 . creates a School District Division Capital Equalization Account;
13 . transfers General Fund monies to the account; and
14 . requires the State Board of Education to make allocations, for a certain period of
15 time, to the remaining portion of a school district that has been divided.
16 Monies Appropriated in this Bill:
17 This bill transfers $5,000,000 annually from the General Fund, under certain
18 circumstances.
19 Other Special Clauses:
20 This bill takes effect on July 1, 2008.
21 This bill coordinates with S.B. 104, State Capital Facility Board - Creation and
22 Oversight, by substantively modifying language.
23 Utah Code Sections Affected:
24 ENACTS:
25 53A-21-601, Utah Code Annotated 1953

26
27 Be it enacted by the Legislature of the state of Utah:
28 Section 1. Section 53A-21-601 is enacted to read:
29 Part 6. School District Division Capital Equalization Account
30 53A-21-601. School District Division Capital Equalization Account -- General
31 Fund transfer -- Allocations.
32 (1) As used in this section:
33 (a) "New school district" and "remaining school district" are as defined in Section
34 53A-2-117 .
35 (b) "Qualifying school district" means a remaining school district with new boundaries
36 created due to a school district division that occurred in the previous ten years pursuant to
37 Section 53A-2-118.1 .
38 (2) (a) There is created a restricted account within the Uniform School Fund known as
39 the School District Division Capital Equalization Account.
40 (b) Any interest earned on the account shall be deposited into the General Fund.
41 (3) (a) When a school district division occurs pursuant to Section 53A-2-118.1 , for the
42 fiscal year in which the new school district assumes responsibility for providing educational
43 services and the following nine years:
44 (i) the Division of Finance shall transfer $5,000,000 from the General Fund by March
45 31 of each of the ten years into the School District Division Capital Equalization Account; and
46 (ii) the State Board of Education shall allocate the funds deposited under Subsection
47 (3)(a) in accordance with Subsection (4).
48 (b) The $5,000,000 transferred under Subsection (3)(a)(i) is the total amount to be
49 transferred, even if more than one school district division has occurred.
50 (4) (a) The State Board of Education shall allocate funds deposited into the School
51 District Division Capital Equalization Account to a qualifying school district or qualifying
52 school districts, to be used only for capital outlay purposes.
53 (b) If more than one qualifying school district is affected by one or more school district
54 divisions that occur pursuant to Section 53A-2-118.1 , the State Board of Education shall
55 allocate funds deposited into the fund pursuant to Subsection (3)(a) by:
56 (i) equally dividing 10% of available funds among each qualifying school district; and

57 (ii) allocating the remaining 90% to the qualifying school district or qualifying school
58 districts most in need, after considering the following factors:
59 (A) student enrollment growth and new building needs;
60 (B) the extent to which the district division has reduced the property tax base available
61 to fund facilities in the qualifying school district;
62 (C) property tax taxable base per student;
63 (D) property tax effort; and
64 (E) capacity and renovation needs in existing facilities.
65 (c) The State Board of Education may only allocate funds pursuant to this section to a
66 qualifying school district for ten years following the school district division pursuant to Section
67 53A-2-118.1 .
68 (5) When a district division pursuant to Section 53A-2-118.1 is approved by voters, the
69 state superintendent shall notify the Division of Finance, the Governor's Office of Planning and
70 Budget, and the Legislative Fiscal Analyst of the date the new school district will assume
71 responsibility for providing educational services.
72 Section 2. Effective date.
73 This bill takes effect on July 1, 2008.
74 Section 3. Coordinating S.B. 219 with S.B. 104 -- Substantive changes.
75 If this S.B. 219 and S.B. 104, State Capital Facility Board - Creation and Oversight,
76 both pass, it is the intent of the Legislature that the Office of Legislative Research and General
77 Counsel, in preparing the Utah Code database for publication, replace the references in Section
78 53A-21-601 to "State Board of Education" with "Utah School Facilities Board".