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H.B. 129
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7 LONG TITLE
8 General Description:
9 This bill amends provisions in the Minimum School Program Act and the Property Tax
10 Act relating to certain property tax levies and the funding of public school programs.
11 Highlighted Provisions:
12 This bill:
13 . repeals the authority of school districts to levy certain property taxes;
14 . sets the statewide minimum basic tax rate at a fixed rate beginning in 2011;
15 . requires the Legislature to increase the value of the weighted pupil unit for purposes
16 of determining school districts' income tax funding by an amount equal to the
17 increased amount of revenue generated statewide by the minimum basic tax rate
18 from the prior year;
19 . creates a board local discretionary levy and a capital discretionary levy for school
20 districts;
21 . sets the tax rates for the board local discretionary levy and the capital discretionary
22 levy for the first taxable year;
23 . provides procedures for setting a school district's certified tax rate after the first
24 taxable year;
25 . adjusts a school district's certified tax rate due to the repeal or amendment of the
26 property taxing authority of the school district;
27 . defines terms; and
28 . makes technical changes.
29 Monies Appropriated in this Bill:
30 None
31 Other Special Clauses:
32 This bill takes effect on January 1, 2011.
33 Utah Code Sections Affected:
34 AMENDS:
35 11-2-7, as last amended by Laws of Utah 1961, Chapters 25 and 30
36 11-13-302, as last amended by Laws of Utah 2008, Chapters 236 and 382
37 20A-1-203, as last amended by Laws of Utah 2008, Chapter 16
38 53A-1a-106, as last amended by Laws of Utah 2003, Chapter 221
39 53A-1a-513, as last amended by Laws of Utah 2009, Chapter 391
40 53A-2-114, as last amended by Laws of Utah 2008, Chapter 236
41 53A-2-115, as last amended by Laws of Utah 2008, Chapter 236
42 53A-2-118.2, as enacted by Laws of Utah 2007, Chapter 297
43 53A-2-118.3, as enacted by Laws of Utah 2008, Chapter 236
44 53A-2-206, as last amended by Laws of Utah 2008, Chapter 382
45 53A-2-214, as enacted by Laws of Utah 2008, Chapter 233
46 53A-3-415, as last amended by Laws of Utah 1991, Chapter 72
47 53A-16-107, as last amended by Laws of Utah 2008, Chapter 236
48 53A-16-110, as last amended by Laws of Utah 2008, Chapter 236
49 53A-17a-103, as last amended by Laws of Utah 2008, Chapters 61 and 397
50 53A-17a-104, as last amended by Laws of Utah 2009, Chapters 4 and 391
51 53A-17a-105, as last amended by Laws of Utah 2009, Chapter 183
52 53A-17a-127, as last amended by Laws of Utah 2009, Chapter 391
53 53A-17a-133, as last amended by Laws of Utah 2009, Chapters 204 and 391
54 53A-17a-134, as last amended by Laws of Utah 2009, Chapter 391
55 53A-17a-135, as last amended by Laws of Utah 2009, Chapter 391
56 53A-17a-136, as renumbered and amended by Laws of Utah 1991, Chapter 72
57 53A-17a-143, as last amended by Laws of Utah 1995, Chapter 271
58 53A-17a-145, as renumbered and amended by Laws of Utah 1991, Chapter 72
59 53A-17a-146, as last amended by Laws of Utah 2009, Chapter 4
60 53A-17a-150, as enacted by Laws of Utah 2004, Chapter 305
61 53A-17a-151, as enacted by Laws of Utah 2004, Chapter 305
62 53A-21-101.5, as enacted by Laws of Utah 2008, Chapter 236
63 59-2-904, as last amended by Laws of Utah 1993, Chapter 4
64 59-2-924, as last amended by Laws of Utah 2009, Chapters 152, 204, 356, and 388
65 59-2-924.3, as last amended by Laws of Utah 2009, Chapter 204
66 59-2-924.4, as last amended by Laws of Utah 2009, Chapter 204
67 59-2-926, as last amended by Laws of Utah 2009, Chapter 388
68 63G-7-704, as renumbered and amended by Laws of Utah 2008, Chapter 382
69 ENACTS:
70 53A-16-113, Utah Code Annotated 1953
71 53A-17a-164, Utah Code Annotated 1953
72 RENUMBERS AND AMENDS:
73 53A-16-114, (Renumbered from 53A-16-107.1, as enacted by Laws of Utah 2008,
74 Chapter 236)
75 REPEALS:
76 53A-16-111, as enacted by Laws of Utah 1988, Chapter 2
77
78 Be it enacted by the Legislature of the state of Utah:
79 Section 1. Section 11-2-7 is amended to read:
80 11-2-7. Expenses -- Payment of -- Authority to appropriate and tax -- Licensing
81 of television owners and users -- Collection of license fees -- Exception for a school
82 district.
83 (1) (a) All expenses incurred in the equipment, operation and maintenance of such
84 recreational facilities and activities shall be paid from the treasuries of the respective cities,
85 towns, counties, or school districts[
86 (b) Except as provided in Subsection (3), the governing bodies of the same may
87 annually appropriate, and cause to be raised by taxation, money for such purposes.
88 (2) In areas so remote from regular transmission points of the large television stations
89 that television reception is impossible without special equipment and adequate, economical and
90 proper television is not available to the public by private sources, said local authorities may
91 also, by ordinance, license, for the purpose of raising revenue to equip, operate and maintain
92 television transmission and relay facilities, all users or owners of television sets within the
93 jurisdiction of said local authorities, and may provide for the collection of the license fees by
94 suit or otherwise and may also enforce obedience to such ordinances with such fine and
95 imprisonment as the local authorities [
96 any violation of such ordinances shall be by a fine not exceeding $50.00 or by imprisonment
97 not exceeding one day for each $5.00 of said fine, if the fine is not paid.
98 (3) Beginning January 1, 2011, a local school board may not levy a tax in accordance
99 with this section.
100 Section 2. Section 11-13-302 is amended to read:
101 11-13-302. Payment of fee in lieu of ad valorem property tax by certain energy
102 suppliers -- Method of calculating -- Collection -- Extent of tax lien.
103 (1) (a) Each project entity created under this chapter that owns a project and that sells
104 any capacity, service, or other benefit from it to an energy supplier or suppliers whose tangible
105 property is not exempted by Utah Constitution Article XIII, Section 3, from the payment of ad
106 valorem property tax, shall pay an annual fee in lieu of ad valorem property tax as provided in
107 this section to each taxing jurisdiction within which the project or any part of it is located.
108 (b) For purposes of this section, "annual fee" means the annual fee described in
109 Subsection (1)(a) that is in lieu of ad valorem property tax.
110 (c) The requirement to pay an annual fee shall commence:
111 (i) with respect to each taxing jurisdiction that is a candidate receiving the benefit of
112 impact alleviation payments under contracts or determination orders provided for in Sections
113 11-13-305 and 11-13-306 , with the fiscal year of the candidate following the fiscal year of the
114 candidate in which the date of commercial operation of the last generating unit, other than any
115 generating unit providing additional project capacity, of the project occurs, or, in the case of
116 any facilities providing additional project capacity, with the fiscal year of the candidate
117 following the fiscal year of the candidate in which the date of commercial operation of the
118 generating unit providing the additional project capacity occurs; and
119 (ii) with respect to any taxing jurisdiction other than a taxing jurisdiction described in
120 Subsection (1)(c)(i), with the fiscal year of the taxing jurisdiction in which construction of the
121 project commences, or, in the case of facilities providing additional project capacity, with the
122 fiscal year of the taxing jurisdiction in which construction of those facilities commences.
123 (d) The requirement to pay an annual fee shall continue for the period of the useful life
124 of the project or facilities.
125 (2) (a) The annual fees due a school district shall be as provided in Subsection (2)(b)
126 because the ad valorem property tax imposed by a school district and authorized by the
127 Legislature under Section 53A-17a-135 represents both:
128 (i) a levy mandated by the state for the state minimum school program under Section
129 53A-17a-135 ; and
130 (ii) local levies for capital outlay, maintenance, transportation, and other purposes
131 under Sections [
132
133 (b) The annual fees due a school district shall be as follows:
134 (i) the project entity shall pay to the school district an annual fee for the state minimum
135 school program at the rate imposed by the school district and authorized by the Legislature
136 under Subsection 53A-17a-135 (1); and
137 (ii) for all other local property tax levies authorized to be imposed by a school district,
138 the project entity shall pay to the school district either:
139 (A) an annual fee; or
140 (B) impact alleviation payments under contracts or determination orders provided for
141 in Sections 11-13-305 and 11-13-306 .
142 (3) (a) An annual fee due a taxing jurisdiction for a particular year shall be calculated
143 by multiplying the tax rate or rates of the jurisdiction for that year by the product obtained by
144 multiplying the fee base or value determined in accordance with Subsection (4) for that year of
145 the portion of the project located within the jurisdiction by the percentage of the project which
146 is used to produce the capacity, service, or other benefit sold to the energy supplier or suppliers.
147 (b) As used in this section, "tax rate," when applied in respect to a school district,
148 includes any assessment to be made by the school district under Subsection (2) or Section
149 63M-5-302 .
150 (c) There is to be credited against the annual fee due a taxing jurisdiction for each year,
151 an amount equal to the debt service, if any, payable in that year by the project entity on bonds,
152 the proceeds of which were used to provide public facilities and services for impact alleviation
153 in the taxing jurisdiction in accordance with Sections 11-13-305 and 11-13-306 .
154 (d) The tax rate for the taxing jurisdiction for that year shall be computed so as to:
155 (i) take into account the fee base or value of the percentage of the project located
156 within the taxing jurisdiction determined in accordance with Subsection (4) used to produce the
157 capacity, service, or other benefit sold to the supplier or suppliers; and
158 (ii) reflect any credit to be given in that year.
159 (4) (a) Except as otherwise provided in this section, the annual fees required by this
160 section shall be paid, collected, and distributed to the taxing jurisdiction as if:
161 (i) the annual fees were ad valorem property taxes; and
162 (ii) the project were assessed at the same rate and upon the same measure of value as
163 taxable property in the state.
164 (b) (i) Notwithstanding Subsection (4)(a), for purposes of an annual fee required by
165 this section, the fee base of a project may be determined in accordance with an agreement
166 among:
167 (A) the project entity; and
168 (B) any county that:
169 (I) is due an annual fee from the project entity; and
170 (II) agrees to have the fee base of the project determined in accordance with the
171 agreement described in this Subsection (4).
172 (ii) The agreement described in Subsection (4)(b)(i):
173 (A) shall specify each year for which the fee base determined by the agreement shall be
174 used for purposes of an annual fee; and
175 (B) may not modify any provision of this chapter except the method by which the fee
176 base of a project is determined for purposes of an annual fee.
177 (iii) For purposes of an annual fee imposed by a taxing jurisdiction within a county
178 described in Subsection (4)(b)(i)(B), the fee base determined by the agreement described in
179 Subsection (4)(b)(i) shall be used for purposes of an annual fee imposed by that taxing
180 jurisdiction.
181 (iv) (A) If there is not agreement as to the fee base of a portion of a project for any
182 year, for purposes of an annual fee, the State Tax Commission shall determine the value of that
183 portion of the project for which there is not an agreement:
184 (I) for that year; and
185 (II) using the same measure of value as is used for taxable property in the state.
186 (B) The valuation required by Subsection (4)(b)(iv)(A) shall be made by the State Tax
187 Commission in accordance with rules made by the State Tax Commission.
188 (c) Payments of the annual fees shall be made from:
189 (i) the proceeds of bonds issued for the project; and
190 (ii) revenues derived by the project entity from the project.
191 (d) (i) The contracts of the project entity with the purchasers of the capacity, service, or
192 other benefits of the project whose tangible property is not exempted by Utah Constitution
193 Article XIII, Section 3, from the payment of ad valorem property tax shall require each
194 purchaser, whether or not located in the state, to pay, to the extent not otherwise provided for,
195 its share, determined in accordance with the terms of the contract, of these fees.
196 (ii) It is the responsibility of the project entity to enforce the obligations of the
197 purchasers.
198 (5) (a) The responsibility of the project entity to make payment of the annual fees is
199 limited to the extent that there is legally available to the project entity, from bond proceeds or
200 revenues, monies to make these payments, and the obligation to make payments of the annual
201 fees is not otherwise a general obligation or liability of the project entity.
202 (b) No tax lien may attach upon any property or money of the project entity by virtue of
203 any failure to pay all or any part of an annual fee.
204 (c) The project entity or any purchaser may contest the validity of an annual fee to the
205 same extent as if the payment was a payment of the ad valorem property tax itself.
206 (d) The payments of an annual fee shall be reduced to the extent that any contest is
207 successful.
208 (6) (a) The annual fee described in Subsection (1):
209 (i) shall be paid by a public agency that:
210 (A) is not a project entity; and
211 (B) owns an interest in a facility providing additional project capacity if the interest is
212 otherwise exempt from taxation pursuant to Utah Constitution, Article XIII, Section 3; and
213 (ii) for a public agency described in Subsection (6)(a)(i), shall be calculated in
214 accordance with Subsection (6)(b).
215 (b) The annual fee required under Subsection (6)(a) shall be an amount equal to the tax
216 rate or rates of the applicable taxing jurisdiction multiplied by the product of the following:
217 (i) the fee base or value of the facility providing additional project capacity located
218 within the jurisdiction;
219 (ii) the percentage of the ownership interest of the public agency in the facility; and
220 (iii) the portion, expressed as a percentage, of the public agency's ownership interest
221 that is attributable to the capacity, service, or other benefit from the facility that is sold by the
222 public agency to an energy supplier or suppliers whose tangible property is not exempted by
223 Utah Constitution, Article XIII, Section 3, from the payment of ad valorem property tax.
224 (c) A public agency paying the annual fee pursuant to Subsection (6)(a) shall have the
225 obligations, credits, rights, and protections set forth in Subsections (1) through (5) with respect
226 to its ownership interest as though it were a project entity.
227 Section 3. Section 20A-1-203 is amended to read:
228 20A-1-203. Calling and purpose of special elections.
229 (1) Statewide and local special elections may be held for any purpose authorized by
230 law.
231 (2) (a) Statewide special elections shall be conducted using the procedure for regular
232 general elections.
233 (b) Except as otherwise provided in this title, local special elections shall be conducted
234 using the procedures for regular municipal elections.
235 (3) The governor may call a statewide special election by issuing an executive order
236 that designates:
237 (a) the date for the statewide special election; and
238 (b) the purpose for the statewide special election.
239 (4) The Legislature may call a statewide special election by passing a joint or
240 concurrent resolution that designates:
241 (a) the date for the statewide special election; and
242 (b) the purpose for the statewide special election.
243 (5) (a) The legislative body of a local political subdivision may call a local special
244 election only for:
245 (i) a vote on a bond or debt issue;
246 (ii) a vote on a [
247 Section 53A-17a-133 [
248 (iii) an initiative authorized by Chapter 7, Part 5, Local Initiatives - [
249 Procedures;
250 (iv) a referendum authorized by Chapter 7, Part 6, Local Referenda - Procedures;
251 (v) if required or authorized by federal law, a vote to determine whether or not Utah's
252 legal boundaries should be changed;
253 (vi) a vote authorized or required by Title 59, Chapter 12, Sales and Use Tax Act;
254 (vii) a vote to elect members to school district boards for a new school district and a
255 remaining school district, as defined in Section 53A-2-117 , following the creation of a new
256 school district under Section 53A-2-118.1 ; or
257 (viii) an election of town officers of a newly incorporated town under Subsection
258 10-2-125 (9).
259 (b) The legislative body of a local political subdivision may call a local special election
260 by adopting an ordinance or resolution that designates:
261 (i) the date for the local special election; and
262 (ii) the purpose for the local special election.
263 Section 4. Section 53A-1a-106 is amended to read:
264 53A-1a-106. School district and individual school powers.
265 (1) In order to acquire and develop the characteristics listed in Section 53A-1a-104 ,
266 each school district and each public school within its respective district shall implement a
267 comprehensive system of accountability in which students advance through public schools by
268 demonstrating competency in required skills and mastery of required knowledge through the
269 use of diverse assessment instruments such as authentic and criterion referenced tests, projects,
270 and portfolios.
271 (2) (a) Each school district and public school shall:
272 (i) develop and implement programs integrating technology into the curriculum,
273 instruction, and student assessment;
274 (ii) provide for teacher and parent involvement in policymaking at the school site;
275 (iii) implement a public school choice program to give parents, students, and teachers
276 greater flexibility in designing and choosing among programs with different focuses through
277 schools within the same district and other districts, subject to space availability, demographics,
278 and legal and performance criteria;
279 (iv) establish strategic planning at both the district and school level and site-based
280 decision making programs at the school level;
281 (v) provide opportunities for each student to acquire and develop academic and
282 occupational knowledge, skills, and abilities;
283 (vi) participate in ongoing research and development projects primarily at the school
284 level aimed at improving the quality of education within the system; and
285 (vii) involve business and industry in the education process through the establishment
286 of partnerships with the business community at the district and school level.
287 (b) (i) Each local school board, in consultation with school personnel, parents, and
288 school community councils or similar entities shall establish policies to provide for the
289 effective implementation of a personalized student education plan (SEP) or student
290 education/occupation plan (SEOP) for each student at the school site.
291 (ii) The policies shall include guidelines and expectations for:
292 (A) recognizing the student's accomplishments, strengths, and progress towards
293 meeting student achievement standards as defined in U-PASS;
294 (B) planning, monitoring, and managing education and career development; and
295 (C) involving students, parents, and school personnel in preparing and implementing
296 SEPs and SEOPs.
297 (iii) A parent may request conferences with school personnel in addition to SEP or
298 SEOP conferences established by local school board policy.
299 (iv) Time spent during the school day to implement SEPs and SEOPs is considered
300 part of the school term referred to in Subsection 53A-17a-103 [
301 (3) A school district or public school may submit proposals to modify or waive rules or
302 policies of a supervisory authority within the public education system in order to acquire or
303 develop the characteristics listed in Section 53A-1a-104 .
304 (4) (a) Each school district and public school shall make an annual report to its patrons
305 on its activities under this section.
306 (b) The reporting process shall involve participation from teachers, parents, and the
307 community at large in determining how well the district or school is performing.
308 Section 5. Section 53A-1a-513 is amended to read:
309 53A-1a-513. Funding for charter schools.
310 (1) As used in this section:
311 (a) "Charter school students' average local revenues" means the amount determined as
312 follows:
313 (i) for each student enrolled in a charter school on the previous October 1, calculate the
314 district per pupil local revenues of the school district in which the student resides;
315 (ii) sum the district per pupil local revenues for each student enrolled in a charter
316 school on the previous October 1; and
317 (iii) divide the sum calculated under Subsection (1)(a)(ii) by the number of students
318 enrolled in charter schools on the previous October 1.
319 (b) "District per pupil local revenues" means:
320 (i) for fiscal year 2011-12, the amount determined as follows, using data from the most
321 recently published school district annual financial reports and state superintendent's annual
322 report:
323 [
324 from:
325 [
326 [
327 [
328 53A-17a-145 ;
329 [
330 [
331 [
332 [
333 [
334 [
335 attend charter schools[
336 (ii) for a fiscal year beginning on or after fiscal year 2012-13;
337 (A) calculate the sum of a school district's revenue received from:
338 (I) a voted local discretionary levy imposed under Section 53A-17a-133 ;
339 (II) a board local discretionary levy imposed under Section 53A-17a-164 ; and
340 (III) a capital discretionary levy imposed under Section 53A-16-113 ;
341 (B) subtract from the sum calculated under Subsection (1)(b)(ii)(A) the following
342 expenditures made from revenue generated by a board local discretionary levy:
343 (I) expenditures for recreational facilities and activities authorized under Title 11,
344 Chapter 2, Playgrounds;
345 (II) expenditures for pupil transportation that are less than or equal to the amount of
346 revenue generated by a .0003 per dollar of taxable value of the school district's board local
347 discretionary levy; and
348 (III) expenditures for the K-3 Reading Improvement Program that are less than or equal
349 to the amount of revenue generated by a .000121 per dollar of taxable value of the school
350 district's board local discretionary levy; and
351 (C) divide the remainder calculated under Subsection (1)(b)(ii)(B) by the sum of:
352 (I) a school district's average daily membership; and
353 (II) the average daily membership of a school district's resident students who attend
354 charter schools.
355 (c) "Resident student" means a student who is considered a resident of the school
356 district under Title 53A, Chapter 2, Part 2, District of Residency.
357 (d) "Statewide average debt service revenues" means the amount determined as
358 follows, using data from the most recently published state superintendent's annual report:
359 (i) sum the revenues of each school district from the debt service levy imposed under
360 Section 11-14-310 ; and
361 (ii) divide the sum calculated under Subsection (1)(d)(i) by statewide school district
362 average daily membership.
363 (2) (a) Charter schools shall receive funding as described in this section, except
364 Subsections (3) through (8) do not apply to charter schools described in Subsection (2)(b).
365 (b) Charter schools authorized by local school boards that are converted from district
366 schools or operate in district facilities without paying reasonable rent shall receive funding as
367 prescribed in Section 53A-1a-515 .
368 (3) (a) Except as provided in Subsection (3)(b), a charter school shall receive state
369 funds, as applicable, on the same basis as a school district receives funds.
370 (b) In distributing funds under Title 53A, Chapter 17a, Minimum School Program Act,
371 to charter schools, charter school pupils shall be weighted, where applicable, as follows:
372 (i) .55 for kindergarten pupils;
373 (ii) .9 for pupils in grades 1-6;
374 (iii) .99 for pupils in grades 7-8; and
375 (iv) 1.2 for pupils in grades 9-12.
376 (4) (a) (i) A school district shall allocate a portion of school district revenues for each
377 resident student of the school district who is enrolled in a charter school on October 1 equal to
378 25% of the lesser of:
379 (A) district per pupil local revenues; or
380 (B) charter school students' average local revenues.
381 (ii) For the purpose of allocating school district revenues under Subsection (4)(a)(i) in
382 fiscal year 2008-09 only, a kindergarten student who is enrolled in less than a full-day
383 kindergarten program is weighted as .55 of a student.
384 (iii) Nothing in this Subsection (4)(a) affects the school bond guarantee program
385 established under Chapter 28, Utah School Bond Guaranty Act.
386 (b) The State Board of Education shall:
387 (i) deduct an amount equal to the allocation provided under Subsection (4)(a) from
388 state funds the school district is authorized to receive under Title 53A, Chapter 17a, Minimum
389 School Program Act; and
390 (ii) remit the money to the student's charter school.
391 (c) Notwithstanding the method used to transfer school district revenues to charter
392 schools as provided in Subsection (4)(b), a school district may deduct the allocations to charter
393 schools under this section from:
394 (i) unrestricted revenues available to the school district; or
395 (ii) the revenue sources listed in [
396 (1)(b)(ii)(A) based on the portion of the allocations to charter schools attributed to each of the
397 revenue sources listed in [
398 (d) (i) Subject to future budget constraints, the Legislature shall provide an
399 appropriation for charter schools for each student enrolled on October 1 to supplement the
400 allocation of school district revenues under Subsection (4)(a).
401 (ii) Except as provided in Subsection (4)(d)(iii), the amount of money provided by the
402 state for a charter school student shall be the sum of:
403 (A) charter school students' average local revenues minus the allocation of school
404 district revenues under Subsection (4)(a); and
405 (B) statewide average debt service revenues.
406 (iii) If the total of a school district's allocation for a charter school student under
407 Subsection (4)(a) and the amount provided by the state under Subsection (4)(d)(ii) is less than
408 $1427, the state shall provide an additional supplement so that a charter school receives at least
409 $1427 per student under this Subsection (4).
410 (e) Of the monies provided to a charter school under this Subsection (4), 10% shall be
411 expended for funding school facilities only.
412 (5) Charter schools are eligible to receive federal funds if they meet all applicable
413 federal requirements and comply with relevant federal regulations.
414 (6) The State Board of Education shall distribute funds for charter school students
415 directly to the charter school.
416 (7) (a) Notwithstanding Subsection (3), a charter school is not eligible to receive state
417 transportation funding.
418 (b) The board shall also adopt rules relating to the transportation of students to and
419 from charter schools, taking into account Sections 53A-2-210 and 53A-17a-127 .
420 (c) The governing body of the charter school may provide transportation through an
421 agreement or contract with the local school board, a private provider, or with parents.
422 (8) (a) (i) The state superintendent of public instruction may allocate grants for both
423 start-up and ongoing costs to eligible charter school applicants from monies appropriated for
424 the implementation of this part.
425 (ii) Applications for the grants shall be filed on a form determined by the state
426 superintendent and in conjunction with the application for a charter.
427 (iii) The amount of a grant may vary based upon the size, scope, and special
428 circumstances of the charter school.
429 (iv) The governing board of the charter school shall use the grant to meet the expenses
430 of the school as established in the school's charter.
431 (b) The State Board of Education shall coordinate the distribution of federal monies
432 appropriated to help fund costs for establishing and maintaining charter schools within the
433 state.
434 (9) (a) A charter school may receive, hold, manage and use any devise, bequest, grant,
435 endowment, gift, or donation of any property made to the school for any of the purposes of this
436 part.
437 (b) It is unlawful for any person affiliated with a charter school to demand or request
438 any gift, donation, or contribution from a parent, teacher, employee, or other person affiliated
439 with the charter school as a condition for employment or enrollment at the school or continued
440 attendance at the school.
441 Section 6. Section 53A-2-114 is amended to read:
442 53A-2-114. Additional levies -- School board options to abolish or continue after
443 consolidation.
444 (1) If a school district which has approved an additional levy under Section
445 [
446 a district which does not have such a levy, the board of education of the consolidated district
447 may choose to abolish the levy, or apply it in whole or in part to the entire consolidated district.
448 (2) If the board chooses to apply any part of the levy to the entire district, the levy may
449 continue in force for no more than three years, unless approved by the electors of the
450 consolidated district in the manner set forth in Section [
451 Section 7. Section 53A-2-115 is amended to read:
452 53A-2-115. Additional levies in transferred territory -- Transferee board option
453 to abolish or continue.
454 If two or more districts undergo restructuring that results in a district receiving territory
455 that increases the population of the district by at least 25%, and if the transferred territory was,
456 at the time of transfer, subject to an additional levy under Section [
457
458 may abolish the levy or apply the levy in whole or in part to the entire restructured district.
459 Any such levy made applicable to the entire district may continue in force for no more than five
460 years, unless approved by the electors of the restructured district in the manner set forth in
461 Section [
462 Section 8. Section 53A-2-118.2 is amended to read:
463 53A-2-118.2. New school district property tax -- Limitations.
464 (1) (a) A new school district created under Section 53A-2-118.1 may not impose a
465 property tax prior to the fiscal year in which the new school district assumes responsibility for
466 providing student instruction.
467 (b) The remaining school district retains authority to impose property taxes on the
468 existing school district, including the territory of the new school district, until the fiscal year in
469 which the new school district assumes responsibility for providing student instruction.
470 (2) (a) If at the time a new school district created pursuant to Section 53A-2-118.1
471 assumes responsibility for student instruction any portion of the territory within the new school
472 district was subject to a levy pursuant to Section [
473 school district's board may:
474 (i) discontinue the levy for the new school district;
475 (ii) impose a levy on the new school district as provided in Section [
476 53A-17a-133 ; or
477 (iii) impose the levy on the new school district, subject to Subsection (2)(b).
478 (b) If the new school district's board applies a levy to the new school district pursuant
479 to Subsection (2)(a)(iii), the levy may not exceed the maximum duration or rate authorized by
480 the voters of the existing district or districts at the time of the vote to create the new school
481 district.
482 Section 9. Section 53A-2-118.3 is amended to read:
483 53A-2-118.3. Imposition of the capital discretionary levy in qualifying divided
484 school districts.
485 (1) For purposes of this section:
486 (a) "Qualifying divided school district" means a divided school district:
487 (i) located within a county of the second through sixth class; and
488 (ii) with a new school district created under Section 53A-2-118.1 that begins to provide
489 educational services after July 1, 2008.
490 (b) "Qualifying taxable year" means the calendar year in which a new school district
491 begins to provide educational services.
492 (2) Beginning with the qualifying taxable year, in order to qualify for receipt of the
493 state contribution toward the minimum school program described in Section 53A-17a-104 , a
494 school district within a qualifying divided school district shall impose a capital [
495 discretionary levy described in Section [
496 taxable value.
497 (3) The county treasurer of a county with a qualifying divided school district shall
498 distribute revenues generated by the .0006 portion of the capital [
499 required in Subsection (2) to the school districts located within the boundaries of the qualifying
500 divided school district as follows:
501 (a) 25% of the revenues shall be distributed in proportion to a school district's
502 percentage of the total enrollment growth in all of the school districts within the qualifying
503 divided school district that have an increase in enrollment, calculated on the basis of the
504 average annual enrollment growth over the prior three years in all of the school districts within
505 the qualifying divided school district that have an increase in enrollment over the prior three
506 years, as of the October 1 enrollment counts; and
507 (b) 75% of the revenues shall be distributed in proportion to a school district's
508 percentage of the total current year enrollment in all of the school districts within the qualifying
509 divided school district, as of the October 1 enrollment counts.
510 (4) If a new school district is created or school district boundaries are adjusted, the
511 enrollment and average annual enrollment growth for each affected school district shall be
512 calculated on the basis of enrollment in school district schools located within that school
513 district's newly created or adjusted boundaries, as of October 1 enrollment counts.
514 (5) On or before December 31 of each year, the State Board of Education shall provide
515 a county treasurer with audited enrollment information from the fall enrollment audit necessary
516 to distribute revenues as required by this section.
517 (6) On or before March 31 of each year, a county treasurer in a county with a
518 qualifying divided school district shall distribute, in accordance with Subsection (3), the
519 revenue generated within the qualifying divided school district during the prior calendar year
520 from the capital [
521 Section 10. Section 53A-2-206 is amended to read:
522 53A-2-206. Interstate compact students -- Inclusion in attendance count --
523 Funding for foreign exchange students -- Annual report -- Requirements for exchange
524 student agencies.
525 (1) A school district or charter school may include the following students in the
526 district's or school's membership and attendance count for the purpose of apportionment of
527 state monies:
528 (a) a student enrolled under an interstate compact, established between the State Board
529 of Education and the state education authority of another state, under which a student from one
530 compact state would be permitted to enroll in a public school in the other compact state on the
531 same basis as a resident student of the receiving state; or
532 (b) a student receiving services under the Compact on Placement of Children.
533 (2) (a) A school district or charter school may include foreign exchange students in the
534 district's or school's membership and attendance count for the purpose of apportionment of
535 state monies, except as provided in Subsections (2)(b) through (e).
536 (b) (i) Notwithstanding Section 53A-17a-106 , foreign exchange students may not be
537 included in average daily membership for the purpose of determining the number of weighted
538 pupil units in the grades 1-12 basic program.
539 (ii) Subject to the limitation in Subsection (2)(c), the number of weighted pupil units in
540 the grades 1-12 basic program attributed to foreign exchange students shall be equal to the
541 number of foreign exchange students who were:
542 (A) enrolled in a school district or charter school on October 1 of the previous fiscal
543 year; and
544 (B) sponsored by an agency approved by the district's local school board or charter
545 school's governing board.
546 (c) (i) The total number of foreign exchange students in the state that may be counted
547 for the purpose of apportioning state monies under Subsection (2)(b) shall be the lesser of:
548 (A) the number of foreign exchange students enrolled in public schools in the state on
549 October 1 of the previous fiscal year; or
550 (B) 328 foreign exchange students.
551 (ii) The State Board of Education shall make rules in accordance with Title 63G,
552 Chapter 3, Utah Administrative Rulemaking Act, to administer the cap on the number of
553 foreign exchange students that may be counted for the purpose of apportioning state monies
554 under Subsection (2)(b).
555 (d) Notwithstanding [
556 53A-17a-164 , weighted pupil units in the grades 1-12 basic program for foreign exchange
557 students, as determined by Subsections (2)(b) and (c), may not be included for the purposes of
558 determining a school district's state guarantee money under the voted or [
559
560 (e) Notwithstanding Section 53A-17a-125 , foreign exchange students may not be
561 included in enrollment when calculating student growth for the purpose of adjusting the annual
562 appropriation for retirement and Social Security.
563 (3) A school district or charter school may:
564 (a) enroll foreign exchange students that do not qualify for state monies; and
565 (b) pay for the costs of those students with other funds available to the school district
566 or charter school.
567 (4) Due to the benefits to all students of having the opportunity to become familiar
568 with individuals from diverse backgrounds and cultures, school districts are encouraged to
569 enroll foreign exchange students, as provided in Subsection (3), particularly in schools with
570 declining or stable enrollments where the incremental cost of enrolling the foreign exchange
571 student may be minimal.
572 (5) The board shall make an annual report to the Legislature on the number of
573 exchange students and the number of interstate compact students sent to or received from
574 public schools outside the state.
575 (6) (a) A local school board or charter school governing board shall require each
576 approved exchange student agency to provide it with a sworn affidavit of compliance prior to
577 the beginning of each school year.
578 (b) The affidavit shall include the following assurances:
579 (i) that the agency has complied with all applicable policies of the board;
580 (ii) that a household study, including a background check of all adult residents, has
581 been made of each household where an exchange student is to reside, and that the study was of
582 sufficient scope to provide reasonable assurance that the exchange student will receive proper
583 care and supervision in a safe environment;
584 (iii) that host parents have received training appropriate to their positions, including
585 information about enhanced criminal penalties under Subsection 76-5-406 (10) for persons who
586 are in a position of special trust;
587 (iv) that a representative of the exchange student agency shall visit each student's place
588 of residence at least once each month during the student's stay in Utah;
589 (v) that the agency will cooperate with school and other public authorities to ensure
590 that no exchange student becomes an unreasonable burden upon the public schools or other
591 public agencies;
592 (vi) that each exchange student will be given in the exchange student's native language
593 names and telephone numbers of agency representatives and others who could be called at any
594 time if a serious problem occurs; and
595 (vii) that alternate placements are readily available so that no student is required to
596 remain in a household if conditions appear to exist which unreasonably endanger the student's
597 welfare.
598 (7) (a) A local school board or charter school governing board shall provide each
599 approved exchange student agency with a list of names and telephone numbers of individuals
600 not associated with the agency who could be called by an exchange student in the event of a
601 serious problem.
602 (b) The agency shall make a copy of the list available to each of its exchange students
603 in the exchange student's native language.
604 Section 11. Section 53A-2-214 is amended to read:
605 53A-2-214. Online students' participation in extracurricular activities.
606 (1) As used in this section:
607 (a) "Online education" means the use of information and communication technologies
608 to deliver educational opportunities to a student in a location other than a school.
609 (b) "Online student" means a student who:
610 (i) participates in an online education program sponsored or supported by the State
611 Board of Education, a school district, or charter school; and
612 (ii) generates funding for the school district or school pursuant to Subsection
613 53A-17a-103 [
614 (2) An online student is eligible to participate in extracurricular activities at:
615 (a) the school within whose attendance boundaries the student's custodial parent or
616 legal guardian resides; or
617 (b) the public school from which the student withdrew for the purpose of participating
618 in an online education program.
619 (3) A school other than a school described in Subsection (2)(a) or (b) may allow an
620 online student to participate in extracurricular activities other than:
621 (a) interschool competitions of athletic teams sponsored and supported by a public
622 school; or
623 (b) interschool contests or competitions for music, drama, or forensic groups or teams
624 sponsored and supported by a public school.
625 (4) An online student is eligible for extracurricular activities at a public school
626 consistent with eligibility standards as applied to full-time students of the public school.
627 (5) A school district or public school may not impose additional requirements on an
628 online school student to participate in extracurricular activities that are not imposed on
629 full-time students of the public school.
630 (6) (a) The State Board of Education shall make rules establishing fees for an online
631 school student's participation in extracurricular activities at school district schools.
632 (b) The rules shall provide that:
633 (i) online school students pay the same fees as other students to participate in
634 extracurricular activities;
635 (ii) online school students are eligible for fee waivers pursuant to Section 53A-12-103 ;
636 (iii) for each online school student who participates in an extracurricular activity at a
637 school district school, the online school shall pay a share of the school district's costs for the
638 extracurricular activity; and
639 (iv) an online school's share of the costs of an extracurricular activity shall reflect state
640 and local tax revenues expended, except capital facilities expenditures, for an extracurricular
641 activity in a school district or school divided by total student enrollment of the school district
642 or school.
643 (c) In determining an online school's share of the costs of an extracurricular activity
644 under Subsections (6)(b)(iii) and (iv), the State Board of Education may establish uniform fees
645 statewide based on average costs statewide or average costs within a sample of school districts.
646 (7) When selection to participate in an extracurricular activity at a public school is
647 made on a competitive basis, an online student is eligible to try out for and participate in the
648 activity as provided in this section.
649 Section 12. Section 53A-3-415 is amended to read:
650 53A-3-415. School board policy on detaining students after school.
651 (1) Each local school board shall establish a policy on detaining students after regular
652 school hours as a part of the districtwide discipline plan required under Section [
653 53A-11-901 .
654 (2) The policy shall apply to elementary school students, grades kindergarten through
655 six. The board shall receive input from teachers, school administrators, and parents and
656 guardians of the affected students before adopting the policy.
657 (3) The policy shall provide for notice to the parent or guardian of a student prior to
658 holding the student after school on a particular day. The policy shall also provide for
659 exceptions to the notice provision if detention is necessary for the student's health or safety.
660 Section 13. Section 53A-16-107 is amended to read:
661 53A-16-107. Capital outlay levy -- Maintenance of school facilities -- Authority to
662 use proceeds of .0002 tax rate -- Restrictions and procedure.
663 (1) [
664 annually impose a capital outlay levy not to exceed .0024 per dollar of taxable value to be used
665 for:
666 (a) capital outlay;
667 (b) debt service; and
668 (c) subject to Subsection (2), school facility maintenance.
669 (2) (a) A local school board may utilize the proceeds of a maximum of .0002 per dollar
670 of taxable value of the local school board's annual capital outlay levy for the maintenance of
671 school facilities in the school district.
672 (b) A local school board that uses the option provided under Subsection (2)(a) shall:
673 (i) maintain the same level of expenditure for maintenance in the current year as it did
674 in the preceding year, plus the annual average percentage increase applied to the maintenance
675 and operation budget for the current year; and
676 (ii) identify the expenditure of capital outlay funds for maintenance by a district project
677 number to ensure that the funds are expended in the manner intended.
678 (c) The State Board of Education shall establish by rule the expenditure classification
679 for maintenance under this program using a standard classification system.
680 [
681
682
683
684 [
685
686
687 [
688
689
690
691 (3) Beginning January 1, 2011, a local school board may not levy a tax in accordance
692 with this section.
693 Section 14. Section 53A-16-110 is amended to read:
694 53A-16-110. Special tax to buy school building sites, build and furnish
695 schoolhouses, or improve school property.
696 (1) (a) [
697 following the process for special elections established in Sections 20A-1-203 and 20A-1-204 ,
698 call a special election to determine whether a special property tax should be levied for one or
699 more years to buy building sites, build and furnish schoolhouses, or improve the school
700 property under its control.
701 (b) The tax may not exceed .2% of the taxable value of all taxable property in the
702 district in any one year.
703 (2) The board shall give reasonable notice of the election and follow the same
704 procedure used in elections for the issuance of bonds.
705 (3) If a majority of those voting on the proposition vote in favor of the tax, it is levied
706 in addition to a levy authorized under Section 53A-17a-145 and computed on the valuation of
707 the county assessment roll for that year.
708 (4) (a) Within 20 days after the election, the board shall certify the amount of the
709 approved tax to the governing body of the county in which the school district is located.
710 (b) The governing body shall acknowledge receipt of the certification and levy and
711 collect the special tax.
712 (c) It shall then distribute the collected taxes to the business administrator of the school
713 district at the end of each calendar month.
714 (5) The special tax becomes due and delinquent and attaches to and becomes a lien on
715 real and personal property at the same time as state and county taxes.
716 (6) Beginning January 1, 2011, a local school board may not levy a tax in accordance
717 with this section.
718 Section 15. Section 53A-16-113 is enacted to read:
719 53A-16-113. Capital discretionary levy -- First class county required levy.
720 (1) (a) Subject to the other requirements of this section, for taxable years beginning on
721 or after January 1, 2011, a local school board may levy a tax to fund the school district's capital
722 projects.
723 (b) A tax rate imposed by a school district pursuant to this section may not exceed
724 .0030 per dollar of taxable value in any fiscal year.
725 (2) For fiscal year 2011-12, a school district is exempt from the public notice and
726 hearing requirements of Section 59-2-919 for the school district's capital discretionary levy
727 imposed under Subsection (1) if the school district budgets an amount of ad valorem property
728 tax revenue equal to or less than the sum of the following:
729 (a) the amount of revenue generated during the taxable year beginning on January 1,
730 2010, from the sum of the following levies of a school district:
731 (i) a capital outlay levy imposed under Section 53A-16-107 ; and
732 (ii) the portion of the 10% of basic levy described in Section 53A-17a-145 that is
733 budgeted for debt service or capital outlay; and
734 (b) revenue from new growth as defined in Subsection 59-2-924 (4)(c).
735 (3) Beginning January 1, 2011, in order to qualify for receipt of the state contribution
736 toward the minimum school program described in Section 53A-17a-104 , a local school board
737 in a county of the first class shall impose a capital discretionary levy of at least .0006 per dollar
738 of taxable value.
739 (4) (a) The county treasurer of a county of the first class shall distribute revenues
740 generated by the .0006 portion of the capital discretionary levy required in Subsection (3) to
741 school districts within the county in accordance with Section 53A-16-114 .
742 (b) If a school district in a county of the first class imposes a capital discretionary levy
743 pursuant to this section which exceeds .0006 per dollar of taxable value, the county treasurer of
744 a county of the first class shall distribute revenues generated by the portion of the capital
745 discretionary levy which exceeds .0006 to the school district imposing the levy.
746 Section 16. Section 53A-16-114 , which is renumbered from Section 53A-16-107.1 is
747 renumbered and amended to read:
748 [
749 class -- Allocation.
750 (1) The county treasurer of a county of the first class shall distribute revenues
751 generated by the .0006 portion of the capital [
752
753 class as follows:
754 (a) 25% of the revenues shall be distributed in proportion to a school district's
755 percentage of the total enrollment growth in all of the school districts within the county that
756 have an increase in enrollment, calculated on the basis of the average annual enrollment growth
757 over the prior three years in all of the school districts within the county that have an increase in
758 enrollment over the prior three years, as of the October 1 enrollment counts; and
759 (b) 75% of the revenues shall be distributed in proportion to a school district's
760 percentage of the total current year enrollment in all of the school districts within the county, as
761 of the October 1 enrollment counts.
762 (2) If a new school district is created or school district boundaries are adjusted, the
763 enrollment and average annual enrollment growth for each affected school district shall be
764 calculated on the basis of enrollment in school district schools located within that school
765 district's newly created or adjusted boundaries, as of October 1 enrollment counts.
766 (3) On or before December 31 of each year, the State Board of Education shall provide
767 a county treasurer with audited enrollment information from the fall enrollment audit necessary
768 to distribute revenues as required by this section.
769 (4) On or before March 31 of each year, a county treasurer in a county of the first class
770 shall distribute the revenue generated within the county of the first class during the prior
771 calendar year from the capital [
772 53A-16-113 .
773 Section 17. Section 53A-17a-103 is amended to read:
774 53A-17a-103. Definitions.
775 As used in this chapter:
776 (1) "Basic state-supported school program" or "basic program" means public education
777 programs for kindergarten, elementary, and secondary school students that are operated and
778 maintained for the amount derived by multiplying the number of weighted pupil units for each
779 district by $2,577, except as otherwise provided in this chapter.
780 (2) (a) "Certified revenue levy" means a property tax levy that provides an amount of
781 ad valorem property tax revenue equal to the sum of:
782 (i) the amount of ad valorem property tax revenue to be generated statewide in the
783 previous year from imposing a minimum basic tax rate, as specified in Subsection
784 53A-17a-135 (1)[
785 (ii) the product of:
786 (A) new growth, as defined in:
787 (I) Section 59-2-924 ; and
788 (II) rules of the State Tax Commission; and
789 (B) the minimum basic tax rate certified by the State Tax Commission for the previous
790 year.
791 (b) For purposes of this Subsection (2), "ad valorem property tax revenue" does not
792 include property tax revenue received statewide from personal property that is:
793 (i) assessed by a county assessor in accordance with Title 59, Chapter 2, Part 3, County
794 Assessment; and
795 (ii) semiconductor manufacturing equipment.
796 (c) For purposes of calculating the certified revenue levy described in this Subsection
797 (2), the State Tax Commission shall use:
798 (i) the taxable value of real property assessed by a county assessor contained on the
799 assessment roll;
800 (ii) the taxable value of real and personal property assessed by the State Tax
801 Commission; and
802 (iii) the taxable year end value of personal property assessed by a county assessor
803 contained on the prior year's assessment roll.
804 [
805
806 [
807 pupil.
808 [
809 program" means public school programs for kindergarten, elementary, and secondary schools
810 as described in this Subsection [
811 (b) The minimum school program established in the districts shall include the
812 equivalent of a school term of nine months as determined by the State Board of Education.
813 (c) (i) The board shall establish the number of days or equivalent instructional hours
814 that school is held for an academic school year.
815 (ii) Education, enhanced by utilization of technologically enriched delivery systems,
816 when approved by local school boards, shall receive full support by the State Board of
817 Education as it pertains to fulfilling the attendance requirements, excluding time spent viewing
818 commercial advertising.
819 (d) The program includes the total of the following annual costs:
820 (i) the cost of a basic state-supported school program; and
821 (ii) other amounts appropriated in this chapter in addition to the basic program.
822 [
823 factors that is computed in accordance with this chapter for the purpose of determining the
824 costs of a program on a uniform basis for each district.
825 Section 18. Section 53A-17a-104 is amended to read:
826 53A-17a-104. Amount of state's contribution toward minimum school program.
827 (1) The total contribution of the state toward the cost of the minimum school program
828 may not exceed the sum of $2,137,352,586 for the fiscal year beginning July 1, 2009, except as
829 otherwise provided by the Legislature through supplemental appropriations.
830 (2) There is appropriated from state and local funds for fiscal year 2009-10 for
831 distribution to school districts and charter schools, in accordance with this chapter, monies for
832 the following purposes and in the following amounts:
833 (a) basic program - kindergarten, $68,424,504 (26,552 WPUs);
834 (b) basic program - grades 1-12, $1,291,316,661 (501,093 WPUs);
835 (c) basic program - professional staff, $118,627,041 (46,033 WPUs);
836 (d) basic program - administrative costs, $4,174,740 (1,620 WPUs);
837 (e) basic program - necessarily existent small schools and units for consolidated
838 schools, $19,711,473 (7,649 WPUs);
839 (f) special education - regular program - add-on WPUs for students with disabilities,
840 $160,029,123 (62,099 WPUs);
841 (g) preschool special education program, $22,623,483 (8,779 WPUs);
842 (h) self-contained regular WPUs, $35,632,179 (13,827 WPUs);
843 (i) extended year program for severely disabled, $992,145 (385 WPUs);
844 (j) special education programs in state institutions and district impact aid, $4,398,939
845 (1,707 WPUs);
846 (k) career and technical education district programs, $68,656,434 (26,642 WPUs),
847 including $1,174,084 for summer career and technical education agriculture programs;
848 (l) class size reduction, $90,537,741 (35,133 WPUs);
849 (m) Social Security and retirement programs, $13,407,831;
850 (n) pupil transportation to and from school, $65,646,865, of which not less than
851 $2,584,435 shall be allocated to the Utah Schools for the Deaf and Blind to pay for
852 transportation costs of the schools' students;
853 (o) guarantee transportation levy, $500,000;
854 (p) Interventions for Student Success Block Grant Program, $15,000,000;
855 (q) highly impacted schools, $4,610,907;
856 (r) at-risk programs, $28,270,141;
857 (s) adult education, $9,266,146;
858 (t) accelerated learning programs, $3,566,081;
859 (u) concurrent enrollment, $8,705,286;
860 (v) High-ability Student Initiative Program, $495,000;
861 (w) English Language Learner Family Literacy Centers, $1,800,000;
862 (x) electronic high school, $2,000,000;
863 (y) School LAND Trust Program, $20,000,000;
864 (z) state supplement to local property taxes for charter schools, pursuant to Section
865 53A-1a-513 , $45,288,446;
866 (aa) charter school administrative costs, $3,677,000;
867 (bb) K-3 Reading Improvement Program, $15,000,000;
868 (cc) Public Education Job Enhancement Program, $2,187,000;
869 (dd) educator salary adjustments, $148,260,200;
870 (ee) Teacher Salary Supplement Restricted Account, $3,700,000;
871 (ff) library books and electronic resources, $500,000;
872 (gg) school nurses, $900,000;
873 (hh) critical languages, $230,000;
874 (ii) extended year for special educators, $2,610,000;
875 (jj) USTAR Centers, $6,210,000;
876 (kk) state-supported [
877 $278,396,150;
878 (ll) state-supported board [
879 (mm) state-supported board leeway for K-3 Reading Improvement Program,
880 $15,000,000.
881 Section 19. Section 53A-17a-105 is amended to read:
882 53A-17a-105. Action required for underestimated or overestimated weighted
883 pupil units -- Action required for underestimating or overestimating local contributions.
884 (1) If the number of weighted pupil units in a program is underestimated in Section
885 53A-17a-104 , the amount per pupil in that program paid under this chapter must be reduced so
886 that the amount paid does not exceed the estimated amount by program.
887 (2) If the number of weighted pupil units in a program is overestimated in Section
888 53A-17a-104 , the state superintendent of public instruction shall either increase the amount
889 paid in that program per weighted pupil unit or transfer the unused amount in that program to
890 another program included in the minimum school program.
891 (3) (a) If surplus funds are transferred to another program, the state superintendent, if
892 the state superintendent determines certain districts have greater need for additional funds, may
893 designate the districts as well as the programs to which the transferred funds will be allocated.
894 (b) Any amounts transferred under Subsection (3)(a) may be spent in addition to the
895 amounts listed in Section 53A-17a-104 .
896 (4) The limitation on the proceeds from local tax rates for [
897 programs under this chapter is subject to modification by local school boards under Sections
898 53A-17a-133 and [
899 chapter, and shall be adjusted accordingly.
900 (5) If local contributions are overestimated, the guarantee per weighted pupil unit is
901 reduced for all programs so the total state contribution [
902
903 (6) (a) If local contributions from the basic tax rate [
904
905 pupil unit as set by the Legislature for total weighted pupil units generated by the districts and
906 those costs of Social Security and retirement, transportation, and the state guarantees for the
907 board and voted [
908 generated weighted pupil units, following internal adjustments by the state superintendent as
909 provided in this section.
910 (b) The state contribution is decreased so the total school program cost [
911
912 for all programs under Subsection 53A-17a-104 (2) plus the amount of local revenue necessary
913 to support the value of the weighted pupil unit for weighted pupil units generated and those
914 costs of Social Security and retirement, transportation, and [
915 guarantees for the board and voted local discretionary levies that occur as a result of the
916 additional generated weighted pupil units.
917 (7) As an exception to Section 63J-1-601 , the state fiscal officer may not close out
918 appropriations from the Uniform School Fund at the end of a fiscal year.
919 Section 20. Section 53A-17a-127 is amended to read:
920 53A-17a-127. Eligibility for state-supported transportation -- Approved bus
921 routes.
922 (1) A student eligible for state-supported transportation means:
923 (a) a student enrolled in kindergarten through grade six who lives at least 1-1/2 miles
924 from school;
925 (b) a student enrolled in grades seven through 12 who lives at least two miles from
926 school; and
927 (c) a student enrolled in a special program offered by a school district and approved by
928 the State Board of Education for trainable, motor, multiple-disabled, or other students with
929 severe disabilities who are incapable of walking to school or where it is unsafe for students to
930 walk because of their disabling condition, without reference to distance from school.
931 (2) If a school district implements double sessions as an alternative to new building
932 construction, with the approval of the State Board of Education, those affected elementary
933 school students residing less than 1-1/2 miles from school may be transported one way to or
934 from school because of safety factors relating to darkness or other hazardous conditions as
935 determined by the local school board.
936 (3) (a) The State Board of Education shall distribute transportation monies to school
937 districts based on:
938 (i) an allowance per mile for approved bus routes;
939 (ii) an allowance per hour for approved bus routes; and
940 (iii) a minimum allocation for each school district eligible for transportation funding.
941 (b) The State Board of Education shall distribute appropriated transportation funds
942 based on the prior year's eligible transportation costs as legally reported under Subsection
943 53A-17a-126 (3).
944 (c) The State Board of Education shall annually review the allowance per mile and the
945 allowance per hour and adjust the allowances to reflect current economic conditions.
946 (4) (a) Approved bus routes for funding purposes shall be determined on fall data
947 collected by October 1.
948 (b) Approved route funding shall be determined on the basis of the most efficient and
949 economic routes.
950 (5) A Transportation Advisory Committee with representation from local school
951 superintendents, business officials, school district transportation supervisors, and the state
952 superintendent's staff shall serve as a review committee for addressing school transportation
953 needs, including recommended approved bus routes.
954 (6) (a) A local school board may provide for the transportation of students who are not
955 eligible under Subsection (1), regardless of the distance from school, from[
956 of the district[
957 [
958 [
959
960
961 [
962
963 (b) (i) If a local school board expends an amount of revenue equal to at least .0002 per
964 dollar of taxable value of the school district's board local discretionary levy for the uses
965 described in Subsection (6)(c), the state may contribute an amount not to exceed 85% of the
966 state average cost per mile, contingent upon the Legislature appropriating funds for a state
967 contribution.
968 (ii) The state superintendent's staff shall distribute the state contribution according to
969 rules enacted by the State Board of Education.
970 (c) In order to receive the guarantee described in Subsection (6)(b), a local school
971 board shall expend the revenue described in Subsection (6)(b)(i) to pay for transporting
972 participating students to interscholastic activities, night activities, and educational field trips
973 approved by the local school board and for the replacement of school buses.
974 (d) (i) The amount of state guarantee money which a school district would otherwise be
975 entitled to receive under Subsection (6)[
976 the district's levy is reduced as a consequence of changes in the certified tax rate under Section
977 59-2-924 due to changes in property valuation.
978 (ii) Subsection (6)(d)(i) applies for a period of two years following the change in the
979 certified tax rate.
980 Section 21. Section 53A-17a-133 is amended to read:
981 53A-17a-133. Voted local discretionary levy -- Election requirements -- State
982 guarantee -- Reconsideration of levy authorization.
983 (1) An election to consider adoption or modification of a voted [
984 discretionary levy is required if initiative petitions signed by 10% of the number of electors
985 who voted at the last preceding general election are presented to the local school board or by
986 action of the board.
987 (2) (a) (i) To [
988 levy, a majority of the electors of a district voting at an election in the manner set forth in
989 [
990 (ii) The tax rate may not exceed .002 per dollar of taxable value.
991 [
992
993 [
994 the first year, a district must receive voter approval no later than December 1 of the year prior
995 to implementation.
996 (c) Notwithstanding the requirements of Subsection (2)(b), beginning on or after
997 January 1, 2011, a school district may receive state support in accordance with Subsection (3)
998 without complying with the requirements of Subsection (2)(b) if the local school board
999 imposed a tax in accordance with this section during the taxable year beginning on January 1,
1000 2010 and ending on December 31, 2010.
1001 (3) (a) [
1002 collects from the imposition of a levy pursuant to this section, the state shall contribute an
1003 amount sufficient to guarantee $25.25 per weighted pupil unit for each .0001 of the first .0016
1004 per dollar of taxable value.
1005 (b) The same dollar amount guarantee per weighted pupil unit for the .0016 per dollar
1006 of taxable value under Subsection (3)(a) shall apply to [
1007 of the board local discretionary levy authorized in Section [
1008 the guarantee shall apply up to a total of .002 per dollar of taxable value if a school district
1009 levies a tax rate under both programs.
1010 (c) (i) Beginning July 1, 2009, the $25.25 guarantee under Subsections (3)(a) and (b)
1011 shall be indexed each year to the value of the weighted pupil unit by making the value of the
1012 guarantee equal to .009798 times the value of the prior year's weighted pupil unit.
1013 (ii) [
1014 .0005 times the value of the prior year's weighted pupil unit for each succeeding year [
1015
1016 (iii) The guarantee described in Subsection (3)(c)(i) may not exceed .010544 times the
1017 value of the prior year's weighted pupil unit.
1018 (d) (i) The amount of state guarantee money to which a school district would otherwise
1019 be entitled to under this Subsection (3) may not be reduced for the sole reason that the district's
1020 levy is reduced as a consequence of changes in the certified tax rate under Section 59-2-924
1021 pursuant to changes in property valuation.
1022 (ii) Subsection (3)(d)(i) applies for a period of five years following any such change in
1023 the certified tax rate.
1024 (4) (a) An election to modify [
1025 a voted local discretionary levy is not a reconsideration of the existing [
1026 unless the proposition submitted to the electors expressly so states.
1027 (b) A majority vote opposing a modification does not deprive the district of authority to
1028 continue [
1029 (c) If adoption of a [
1030 an offset reducing other local school board levies, the board must allow the electors, in an
1031 election, to consider modifying or discontinuing the [
1032 subsequent increase in other levies that would increase the total local school board levy.
1033 (d) Nothing contained in this section terminates, without an election, the authority of a
1034 school district to continue [
1035 discretionary levy previously authorized by the voters as a voted leeway program.
1036 (5) Notwithstanding Section 59-2-919 , a school district may budget an increased
1037 amount of ad valorem property tax revenue derived from a voted [
1038 levy imposed under this section in addition to revenue from new growth as defined in
1039 Subsection 59-2-924 (4), without having to comply with the notice requirements of Section
1040 59-2-919 , if:
1041 (a) the voted [
1042 (i) in accordance with [
1043 January 1, 2003; and
1044 (ii) within the four-year period immediately preceding the year in which the school
1045 district seeks to budget an increased amount of ad valorem property tax revenue derived from
1046 the voted [
1047 (b) for a voted [
1048 with this section on or after January 1, 2009, the school district complies with the requirements
1049 of Subsection (7).
1050 (6) Notwithstanding Section 59-2-919 , a school district may levy a tax rate under this
1051 section that exceeds the certified tax rate without having to comply with the notice
1052 requirements of Section 59-2-919 if:
1053 (a) the levy exceeds the certified tax rate as the result of a school district budgeting an
1054 increased amount of ad valorem property tax revenue derived from a voted [
1055 discretionary levy imposed under this section;
1056 (b) if the voted [
1057 (i) in accordance with [
1058 January 1, 2003; and
1059 (ii) within the four-year period immediately preceding the year in which the school
1060 district seeks to budget an increased amount of ad valorem property tax revenue derived from
1061 the voted [
1062 (c) for a voted [
1063 with this section on or after January 1, 2009, the school district complies with requirements of
1064 Subsection (7).
1065 (7) For purposes of Subsection (5)(b) or (6)(c), the proposition submitted to the
1066 electors regarding the adoption or modification of a voted leeway program shall contain the
1067 following statement:
1068 "A vote in favor of this tax means that (name of the school district) may increase
1069 revenue from this property tax without advertising the increase for the next five years."
1070 (8) (a) Before imposing a property tax levy pursuant to this section, a local school
1071 board shall submit an opinion question to the school district's registered voters voting on the
1072 imposition of the tax rate so that each registered voter has the opportunity to express the
1073 registered voter's opinion on whether the tax rate should be imposed.
1074 (b) The election required by this Subsection (8) shall be held:
1075 (i) at a regular general election conducted in accordance with the procedures and
1076 requirements of Title 20A, Election Code, governing regular elections;
1077 (ii) at a municipal general election conducted in accordance with the procedures and
1078 requirements of Section 20A-1-202 ; or
1079 (iii) at a local special election conducted in accordance with the procedures and
1080 requirements of Section 20A-1-203 .
1081 (c) Notwithstanding the requirements of Subsections (8)(a) and (b), beginning on or
1082 after January 1, 2011, a local school board may levy a tax rate in accordance with this section
1083 without complying with the requirements of Subsections (8)(a) and (b) if the local school board
1084 imposed a tax in accordance with this section at any time during the taxable year beginning on
1085 January 1, 2010 and ending on December 31, 2010.
1086 (9) If a school district determines that a majority of the school district's registered
1087 voters voting on the imposition of the tax rate have voted in favor of the imposition of the tax
1088 rate in accordance with Subsection (8), the local school board may impose the tax rate.
1089 Section 22. Section 53A-17a-134 is amended to read:
1090 53A-17a-134. Board-approved leeway -- Purpose -- State support -- Disapproval.
1091 (1) [
1092 rate of up to .0004 per dollar of taxable value to maintain a school program above the cost of
1093 the basic school program as follows:
1094 (a) a local school board shall use the monies generated by the tax for class size
1095 reduction within the school district;
1096 (b) if a local school board determines that the average class size in the school district is
1097 not excessive, it may use the monies for other school purposes but only if the board has
1098 declared the use for other school purposes in a public meeting prior to levying the tax rate; and
1099 (c) a district may not use the monies for other school purposes under Subsection (1)(b)
1100 until it has certified in writing that its class size needs are already being met and has identified
1101 the other school purposes for which the monies will be used to the State Board of Education
1102 and the state board has approved their use for other school purposes.
1103 (2) (a) The state shall contribute an amount sufficient to guarantee $25.25 per weighted
1104 pupil unit for each .0001 per dollar of taxable value.
1105 (b) The guarantee shall increase in the same manner as provided for the voted leeway
1106 guarantee in Subsections 53A-17a-133 (3)(c)(i) and (ii).
1107 (c) (i) The amount of state guarantee money to which a school district would otherwise
1108 be entitled to under this Subsection (2) may not be reduced for the sole reason that the district's
1109 levy is reduced as a consequence of changes in the certified tax rate under Section 59-2-924
1110 pursuant to changes in property valuation.
1111 (ii) Subsection (2)(c)(i) applies for a period of five years following any such change in
1112 the certified tax rate.
1113 (3) The levy authorized under this section is not in addition to the maximum rate of
1114 .002 authorized in Section 53A-17a-133 , but is a board-authorized component of the total tax
1115 rate under that section.
1116 (4) As an exception to Section 53A-17a-133 , the board-authorized levy does not
1117 require voter approval, but the board may require voter approval if requested by a majority of
1118 the board.
1119 (5) An election to consider disapproval of the board-authorized levy is required, if
1120 within 60 days after the levy is established by the board, referendum petitions signed by the
1121 number of legal voters required in Section 20A-7-301 , who reside within the school district, are
1122 filed with the school district.
1123 (6) (a) A local school board shall establish its board-approved levy by April 1 to have
1124 the levy apply to the fiscal year beginning July 1 in that same calendar year except that if an
1125 election is required under this section, the levy applies to the fiscal year beginning July 1 of the
1126 next calendar year.
1127 (b) The approval and disapproval votes authorized in Subsections (4) and (5) shall
1128 occur at a general election in even-numbered years, except that a vote required under this
1129 section in odd-numbered years shall occur at a special election held on a day in odd-numbered
1130 years that corresponds to the general election date. The school district shall pay for the cost of
1131 a special election.
1132 (7) (a) Modification or termination of a voter-approved leeway rate authorized under
1133 this section is governed by Section 53A-17a-133 .
1134 (b) A board-authorized leeway rate may be modified or terminated by a majority vote
1135 of the board subject to disapproval procedures specified in this section.
1136 (8) A board levy election does not require publication of a voter information pamphlet.
1137 (9) Beginning January 1, 2011, a local school board may not levy a tax in accordance
1138 with this section.
1139 Section 23. Section 53A-17a-135 is amended to read:
1140 53A-17a-135. Minimum basic tax rate.
1141 (1) (a) [
1142 state contribution toward the basic program and as its contribution toward its costs of the basic
1143 program, each school district shall impose a minimum basic tax rate per dollar of taxable value
1144 that generates [
1145 generated by the certified revenue levy for the calendar year beginning on January 1, 2010.
1146 [
1147 [
1148
1149 [
1150
1151 (b) For a calendar year beginning on or after January 1, 2011, the minimum basic tax
1152 rate per dollar of taxable value shall be the greater of:
1153 (i) the tax rate described in Subsection (1)(a); or
1154 (ii) the certified revenue levy for that calendar year as defined in Section 53A-17a-103 .
1155 (2) (a) The state shall contribute to each district toward the cost of the basic program in
1156 the district that portion which exceeds the proceeds of the levy authorized under Subsection
1157 (1).
1158 (b) In accord with the state strategic plan for public education and to fulfill its
1159 responsibility for the development and implementation of that plan, the Legislature instructs
1160 the State Board of Education, the governor, and the Office of Legislative Fiscal Analyst in each
1161 of the coming five years to develop budgets that will fully fund student enrollment growth.
1162 (3) (a) If the proceeds of the levy authorized under Subsection (1) equal or exceed the
1163 cost of the basic program in a school district, no state contribution shall be made to the basic
1164 program.
1165 (b) The proceeds of the levy authorized under Subsection (1) which exceed the cost of
1166 the basic program shall be paid into the Uniform School Fund as provided by law.
1167 (4) For a fiscal year beginning on or after fiscal year 2011-12, the Legislature shall use
1168 the full increase in the minimum basic tax rate to increase the value of the weighted pupil unit.
1169 Section 24. Section 53A-17a-136 is amended to read:
1170 53A-17a-136. Cost of operation and maintenance of minimum school program --
1171 Division between state and school districts.
1172 (1) The total cost of operation and maintenance of the minimum school program in the
1173 state is divided between the state and school districts as follows:
1174 (a) Each school district shall impose a minimum basic tax rate on all taxable, tangible
1175 property in the school district and shall contribute the tax proceeds toward the cost of the basic
1176 program as provided in this chapter.
1177 (b) Each school district may also impose a levy for the purpose of participating in the
1178 [
1179 (c) The state shall contribute the balance of the total costs.
1180 (2) The contributions by the school districts and by the state are computed separately
1181 for the purpose of determining their respective contributions to the basic program and to the
1182 [
1183 Section 25. Section 53A-17a-143 is amended to read:
1184 53A-17a-143. Federal Impact Aid Program -- Offset for underestimated
1185 allocations from the Federal Impact Aid Program.
1186 (1) In addition to the revenues received from the levy imposed by each school district
1187 and authorized by the Legislature under Section 53A-17a-135 , [
1188
1189 the district's anticipated receipts under the entitlement for the fiscal year from [
1190
1191 source for the next preceding fiscal year.
1192 [
1193
1194 [
1195
1196 [
1197 [
1198 Legislature pursuant to Subsection (1) plus the school district's allocations from the Federal
1199 Impact Aid Program for that fiscal year exceeds the amount allocated to the district from
1200 [
1201 excess funds are carried into the next succeeding fiscal year and become in that year a part of
1202 the district's contribution to its basic program for operation and maintenance under the state
1203 minimum school finance law.
1204 [
1205 reduced so that the yield from the reduced tax rate plus the carryover funds equal the district's
1206 required contribution to its basic program.
1207 [
1208 minimum school program funds as though the reduction in the tax rate had not been made.
1209 Section 26. Section 53A-17a-145 is amended to read:
1210 53A-17a-145. Additional levy by district for debt service, school sites, buildings,
1211 buses, textbooks, and supplies.
1212 (1) [
1213 tax rate by up to 10% of the cost of the basic program.
1214 (2) The proceeds from the increase may only be used for debt service, the construction
1215 or remodeling of school buildings, or the purchase of school sites, buses, equipment, textbooks,
1216 and supplies.
1217 (3) This section does not prohibit a district from exercising the authority granted by
1218 other laws relating to tax rates.
1219 (4) This increase in the tax rate is not included in determining the apportionment of the
1220 State School Fund, and is in addition to other tax rates authorized by law.
1221 (5) Beginning January 1, 2011, a school district may not:
1222 (a) levy a tax rate in accordance with this section; or
1223 (b) increase its tax rate as described in Subsection (1).
1224 Section 27. Section 53A-17a-146 is amended to read:
1225 53A-17a-146. Reduction of district allocation based on insufficient revenues.
1226 (1) (a) As used in this section, "Minimum School Program funds" means the total of
1227 state and local funds appropriated under Section 53A-17a-104 , excluding:
1228 (i) the state-supported [
1229 (ii) the state-supported board [
1230 (iii) the appropriation to charter schools to replace local property tax revenues.
1231 (b) The State Board of Education, after consultation with each school district and
1232 charter school, shall allocate the ongoing locally determined reduction provided in Section
1233 53A-17a-104 for fiscal year 2008-09 among school districts and charter schools in proportion
1234 to each school district's or charter school's percentage share of Minimum School Program
1235 funds.
1236 (2) Each district and charter school shall determine which programs are affected by,
1237 and the amount of, the reductions, except as provided in Subsection (4).
1238 (3) The requirement to spend a specified amount in any particular program is waived if
1239 reductions are required under this section, except as provided in Subsection (4).
1240 (4) A school district or charter school may not reduce or reallocate spending of funds
1241 distributed to the school district or charter school for the following programs:
1242 (a) educator salary adjustments provided in Section 53A-17a-153 ;
1243 (b) the Teacher Salary Supplement Program provided in Section 53A-17a-156 ;
1244 (c) the extended year for special educators provided in Section 53A-17a-158 ; and
1245 (d) USTAR centers provided in Section 53A-17a-159 .
1246 Section 28. Section 53A-17a-150 is amended to read:
1247 53A-17a-150. K-3 Reading Improvement Program.
1248 (1) As used in this section:
1249 (a) "Program" means the K-3 Reading Improvement Program[
1250 (b) "Program monies" means:
1251 [
1252 [
1253 to the school district, except monies provided by the state, for the purpose of receiving state
1254 funds under this section; and
1255 [
1256 (2) The K-3 Reading Improvement Program consists of program monies and is created
1257 to achieve the state's goal of having third graders reading at or above grade level.
1258 (3) Subject to future budget constraints, the Legislature may annually appropriate
1259 money to the K-3 Reading Improvement Program.
1260 (4) (a) Prior to using program monies, a school district or charter school shall submit a
1261 plan to the State Board of Education for reading proficiency improvement that incorporates the
1262 following components:
1263 (i) assessment;
1264 (ii) intervention strategies;
1265 (iii) professional development;
1266 (iv) reading performance standards; and
1267 (v) specific measurable goals that are based upon gain scores.
1268 (b) The State Board of Education shall provide model plans which a school district or
1269 charter school may use, or the district or school may develop its own plan.
1270 (c) Plans developed by a school district or charter school shall be approved by the State
1271 Board of Education.
1272 (5) There is created within the K-3 Reading Achievement Program three funding
1273 programs:
1274 (a) the Base Level Program;
1275 (b) the Guarantee Program; and
1276 (c) the Low Income Students Program.
1277 (6) Monies appropriated to the State Board of Education for the K-3 Reading
1278 Improvement Program shall be allocated to the three funding programs as follows:
1279 (a) 8% to the Base Level Program;
1280 (b) 46% to the Guarantee Program; and
1281 (c) 46% to the Low Income Students Program.
1282 (7) (a) To participate in the Base Level Program, a school district or charter school
1283 shall submit a reading proficiency improvement plan to the State Board of Education as
1284 provided in Subsection (4) and must receive approval of the plan from the board.
1285 (b) (i) Each school district qualifying for Base Level Program funds and the qualifying
1286 elementary charter schools combined shall receive a base amount.
1287 (ii) The base amount for the qualifying elementary charter schools combined shall be
1288 allocated among each school in an amount proportionate to:
1289 (A) each existing charter school's prior year fall enrollment in grades kindergarten
1290 through grade 3; and
1291 (B) each new charter school's estimated fall enrollment in grades kindergarten through
1292 grade 3.
1293 (8) (a) A school district that applies for program monies in excess of the Base Level
1294 Program funds shall choose to first participate in either the Guarantee Program or the Low
1295 Income Students Program.
1296 (b) A school district must fully participate in either the Guarantee Program or the Low
1297 Income Students Program before it may elect to either fully or partially participate in the other
1298 program.
1299 (c) To fully participate in the Guarantee Program, a school district shall[
1300
1301 available to the school district, except monies provided by the state, equal to the amount of
1302 revenue that would be generated by a tax rate of .000056[
1303 [
1304
1305
1306
1307 (d) To fully participate in the Low Income Students Program, a school district shall[
1308
1309 monies available to the school district, except monies provided by the state, equal to the
1310 amount of revenue that would be generated by a tax rate of .000065[
1311 [
1312
1313
1314
1315 (e) (i) The State Board of Education shall verify that a school district allocates the
1316 monies required in accordance with Subsections (8)(c) and (d) before it distributes funds in
1317 accordance with this section.
1318 (ii) The State Tax Commission shall provide the State Board of Education the
1319 information the State Board of Education needs to comply with Subsection (8)(e)(i).
1320 (9) (a) A school district that fully participates in the Guarantee Program shall receive
1321 state funds in an amount that is:
1322 (i) equal to the difference between $21 times the district's total WPUs and the revenue
1323 the school district is required to generate or allocate under Subsection (8)(c) to fully participate
1324 in the Guarantee Program; and
1325 (ii) not less than $0.
1326 (b) An elementary charter school shall receive under the Guarantee Program an amount
1327 equal to $21 times the school's total WPUs.
1328 (10) The State Board of Education shall distribute Low Income Students Program
1329 funds in an amount proportionate to the number of students in each school district or charter
1330 school who qualify for free or reduced price school lunch multiplied by two.
1331 (11) A school district that partially participates in the Guarantee Program or Low
1332 Income Students Program shall receive program funds based on the amount of district revenue
1333 generated for or allocated to the program as a percentage of the amount of revenue that could
1334 have been generated or allocated if the district had fully participated in the program.
1335 (12) (a) Each school district and charter school shall use program monies for reading
1336 proficiency improvement in grades kindergarten through grade three.
1337 (b) Program monies may not be used to supplant funds for existing programs, but may
1338 be used to augment existing programs.
1339 (13) (a) Each school district and charter school shall annually submit a report to the
1340 State Board of Education accounting for the expenditure of program monies in accordance with
1341 its plan for reading proficiency improvement.
1342 (b) If a school district or charter school uses program monies in a manner that is
1343 inconsistent with Subsection (12), the school district or charter school is liable for reimbursing
1344 the State Board of Education for the amount of program monies improperly used, up to the
1345 amount of program monies received from the State Board of Education.
1346 (14) (a) The State Board of Education shall make rules to implement the program.
1347 (b) (i) The rules under Subsection (14)(a) shall require each school district or charter
1348 school to annually report progress in meeting goals stated in the district's or charter school's
1349 plan for student reading proficiency as measured by gain scores.
1350 (ii) If a school district or charter school does not meet or exceed the goals, the school
1351 district or charter school shall prepare a new plan which corrects deficiencies. The new plan
1352 must be approved by the State Board of Education before the school district or charter school
1353 receives an allocation for the next year.
1354 [
1355
1356
1357 Section 29. Section 53A-17a-151 is amended to read:
1358 53A-17a-151. Board leeway for reading improvement.
1359 (1) [
1360 rate of up to .000121 per dollar of taxable value for funding the school district's K-3 Reading
1361 Improvement Program created under Section 53A-17a-150 .
1362 (2) The levy authorized under this section:
1363 (a) is in addition to any other levy or maximum rate;
1364 (b) does not require voter approval; and
1365 (c) may be modified or terminated by a majority vote of the board.
1366 (3) A local school board shall establish its board-approved levy under this section by
1367 June 1 to have the levy apply to the fiscal year beginning July 1 in that same calendar year.
1368 (4) Beginning January 1, 2011, a local school board may not levy a tax in accordance
1369 with this section.
1370 Section 30. Section 53A-17a-164 is enacted to read:
1371 53A-17a-164. Board local discretionary levy -- State guarantee.
1372 (1) As used in this section:
1373 (a) "Basic levy increment" means an amount equal to the difference of:
1374 (i) the amount of revenue that would be generated within a school district by the
1375 imposition of the certified revenue levy described in Section 53A-17a-103 for the current
1376 calendar year; and
1377 (ii) the estimated amount of revenue to be generated within the school district by the
1378 imposition of the minimum basic tax rate levied in accordance with Section 53A-17a-135
1379 during the current calendar year.
1380 (b) "Board property tax revenue" means:
1381 (i) for the calendar year beginning on January 1, 2011, an amount equal to the sum of
1382 the following:
1383 (A) the amount of revenue generated during the taxable year beginning on January 1,
1384 2010, from the sum of the following levies of a school district:
1385 (I) Section 11-2-7 ;
1386 (II) Section 53A-17a-127 ;
1387 (III) Section 53A-17a-134 ;
1388 (IV) Section 53A-17a-143 ;
1389 (V) the portion of the 10% of basic levy described in Section 53A-17a-145 that is
1390 budgeted for textbooks, supplies, maintenance, and operations;
1391 (VI) Section 53A-17a-151 ; and
1392 (VII) Section 63G-7-704 ; and
1393 (B) an amount of revenue equal to the product of:
1394 (I) new growth as defined in Subsection 59-2-924 (4)(c); and
1395 (II) Subsection (1)(b)(i)(A); and
1396 (ii) for a calendar year beginning on or after January 1, 2012, an amount equal to the
1397 sum of the following:
1398 (A) the amount of revenue generated during the prior taxable year by the school
1399 district's board local discretionary levy; and
1400 (B) an amount of revenue equal to the product of:
1401 (I) new growth as defined in Subsection 59-2-924 (4)(c); and
1402 (II) Subsection (1)(b)(ii)(A).
1403 (c) "Certified tax rate" means a school district's certified tax rate calculated in
1404 accordance with Section 59-2-924 .
1405 (d) "Increased revenue generated statewide from the minimum basic levy" means an
1406 amount equal to the difference of:
1407 (i) the estimated amount of revenue generated statewide by the imposition of the
1408 minimum basic tax rate levied in accordance with Section 53A-17a-135 during the current
1409 calendar year; and
1410 (ii) the amount of revenue that would be generated statewide by the imposition of the
1411 certified revenue levy during the same calendar year.
1412 (e) "Minimum basic levy rate increase" means the rate equal to the difference of:
1413 (i) the minimum basic tax rate levied during the current year; and
1414 (ii) the certified revenue levy tax rate for the current year.
1415 (f) "WPU distribution from the basic levy increase" means the revenue distributed to a
1416 school district from the minimum school program under Title 53A, Chapter 17a, Part 1,
1417 Minimum School Program, as a result of the increased revenue generated statewide from the
1418 minimum basic levy described in Subsection (1)(d).
1419 (2) (a) Subject to the other requirements of this section, for a taxable year beginning on
1420 or after January 1, 2011, a local school board may levy a tax to fund the school district's
1421 general fund.
1422 (b) Except as provided in Subsection (2)(c), a tax rate imposed by a school district
1423 pursuant to this section may not exceed .0018 per dollar of taxable value in any fiscal year.
1424 (c) Notwithstanding Subsection (2)(b), a tax rate imposed by a school district pursuant
1425 to this section may not exceed .0025 per dollar of taxable value in any fiscal year if, during the
1426 calendar year beginning on January 1, 2010 and ending on December 31, 2010, the school
1427 district's combined tax rate of the following levies was .0018 per dollar of taxable value or
1428 more:
1429 (i) Section 11-2-7 ;
1430 (ii) Section 53A-17a-127 ;
1431 (iii) Section 53A-17a-134 ;
1432 (iv) Section 53A-17a-143 ;
1433 (v) the portion of the 10% of basic levy described in Section 53A-17a-145 that is
1434 budgeted for textbooks, supplies, maintenance, and operations;
1435 (vi) Section 53A-17a-151 ; and
1436 (vii) Section 63-7-704 .
1437 (3) (a) In addition to the revenue a school district collects from the imposition of a levy
1438 pursuant to this section, the state shall contribute an amount sufficient to guarantee $25.25 per
1439 weighted pupil unit for each .0001 of the first .0004 per dollar of taxable value.
1440 (b) (i) Beginning July 1, 2009, the $25.25 guarantee under Subsection (3)(a) shall be
1441 indexed each year to the value of the weighted pupil unit by making the value of the guarantee
1442 equal to .009798 times the value of the prior year's weighted pupil unit.
1443 (ii) Except as provided in Subsection (3)(b)(iii), the guarantee shall increase by .0005
1444 times the value of the prior year's weighted pupil unit for each succeeding year.
1445 (iii) The guarantee described in Subsection (3)(b)(i) may not exceed .010544 times the
1446 value of the prior year's weighted pupil unit.
1447 (c) (i) The amount of state guarantee money to which a school district would otherwise
1448 be entitled to under this Subsection (3) may not be reduced for the sole reason that the district's
1449 levy is reduced as a consequence of changes in the certified tax rate under Section 59-2-924
1450 pursuant to changes in property valuation.
1451 (ii) Subsection (3)(c)(i) applies for a period of five years following any such change in
1452 the certified tax rate.
1453 (4) For a fiscal year beginning on or after fiscal year 2011-12, a school district is
1454 exempt from the public notice and hearing requirements of Section 59-2-919 for the school
1455 district's board local discretionary levy if the local school board budgets an amount of ad
1456 valorem property tax revenue equal to or less than the difference of the following:
1457 (a) the school district's board property tax revenue; minus
1458 (b) the greater of:
1459 (i) the school district's estimated WPU distribution from the basic levy increase
1460 described in Subsection (1)(f) during the current calendar year; or
1461 (ii) the school district's basic levy increment described in Subsection (1)(a) for the
1462 same calendar year.
1463 Section 31. Section 53A-21-101.5 is amended to read:
1464 53A-21-101.5. Definitions.
1465 As used in this chapter:
1466 (1) "ADM" or "pupil in average daily membership" is as defined in Section
1467 53A-17a-103 .
1468 (2) "Combined capital levy rate" means a rate that includes the sum of the following
1469 property tax levies:
1470 (a) the capital [
1471 53A-16-113 ; and
1472 [
1473
1474 [
1475 [
1476 (3) "Derived net taxable value" means the quotient of:
1477 (a) the total current property tax collections from April 1 through the following March
1478 31 for a school district; divided by
1479 (b) the school district's total tax rate for the calendar year preceding the March 31
1480 referenced in Subsection (3)(a).
1481 (4) "Highest combined capital levy rate" means the highest combined capital levy rate
1482 imposed by any school district within the state for a fiscal year.
1483 (5) "Property tax base per ADM" means the quotient of:
1484 (a) a school district's derived net taxable value; divided by
1485 (b) the school district's ADM for the same year.
1486 (6) "Property tax yield per ADM" means:
1487 (a) the product of:
1488 (i) a school district's derived net taxable value; and
1489 (ii) the highest combined capital levy rate for the fiscal year of the March 31 referenced
1490 in Subsection (3)(a); divided by
1491 (b) the school district's ADM for the same fiscal year.
1492 (7) "Statewide average property tax base per ADM" means the quotient of:
1493 (a) the sum of all school districts' derived net taxable value; divided by
1494 (b) the sum of all school districts' ADM statewide for the same year.
1495 Section 32. Section 59-2-904 is amended to read:
1496 59-2-904. Participation by district in state's contributions to state-supported
1497 guarantees.
1498 (1) In addition to the basic state contribution provided in Section 59-2-902 , [
1499 school district may participate in the state's contributions to the state-supported [
1500 program under Section 53A-17a-133 or 53A-17a-164 by conforming to the requirements of the
1501 Minimum School Program Act and by making the required additional levy. [
1502
1503 (2) A school district that participates in [
1504
1505 amount of [
1506 will impose.
1507 Section 33. Section 59-2-924 is amended to read:
1508 59-2-924. Report of valuation of property to county auditor and commission --
1509 Transmittal by auditor to governing bodies -- Certified tax rate -- Calculation of certified
1510 tax rate -- Rulemaking authority -- Adoption of tentative budget.
1511 (1) Before June 1 of each year, the county assessor of each county shall deliver to the
1512 county auditor and the commission the following statements:
1513 (a) a statement containing the aggregate valuation of all taxable real property assessed
1514 by a county assessor in accordance with Part 3, County Assessment, for each taxing entity; and
1515 (b) a statement containing the taxable value of all personal property assessed by a
1516 county assessor in accordance with Part 3, County Assessment, from the prior year end values.
1517 (2) The county auditor shall, on or before June 8, transmit to the governing body of
1518 each taxing entity:
1519 (a) the statements described in Subsections (1)(a) and (b);
1520 (b) an estimate of the revenue from personal property;
1521 (c) the certified tax rate; and
1522 (d) all forms necessary to submit a tax levy request.
1523 (3) (a) The "certified tax rate" means a tax rate that will provide the same ad valorem
1524 property tax revenues for a taxing entity as were budgeted by that taxing entity for the prior
1525 year.
1526 (b) For purposes of this Subsection (3):
1527 (i) "Ad valorem property tax revenues" do not include:
1528 (A) interest;
1529 (B) penalties; and
1530 (C) revenue received by a taxing entity from personal property that is:
1531 (I) assessed by a county assessor in accordance with Part 3, County Assessment; and
1532 (II) semiconductor manufacturing equipment.
1533 (ii) "Aggregate taxable value of all property taxed" means:
1534 (A) the aggregate taxable value of all real property assessed by a county assessor in
1535 accordance with Part 3, County Assessment, for the current year;
1536 (B) the aggregate taxable year end value of all personal property assessed by a county
1537 assessor in accordance with Part 3, County Assessment, for the prior year; and
1538 (C) the aggregate taxable value of all real and personal property assessed by the
1539 commission in accordance with Part 2, Assessment of Property, for the current year.
1540 (c) (i) Except as otherwise provided in this section, the certified tax rate shall be
1541 calculated by dividing the ad valorem property tax revenues budgeted for the prior year by the
1542 taxing entity by the amount calculated under Subsection (3)(c)(ii).
1543 (ii) For purposes of Subsection (3)(c)(i), the legislative body of a taxing entity shall
1544 calculate an amount as follows:
1545 (A) calculate for the taxing entity the difference between:
1546 (I) the aggregate taxable value of all property taxed; and
1547 (II) any redevelopment adjustments for the current calendar year;
1548 (B) after making the calculation required by Subsection (3)(c)(ii)(A), calculate an
1549 amount determined by increasing or decreasing the amount calculated under Subsection
1550 (3)(c)(ii)(A) by the average of the percentage net change in the value of taxable property for the
1551 equalization period for the three calendar years immediately preceding the current calendar
1552 year;
1553 (C) after making the calculation required by Subsection (3)(c)(ii)(B), calculate the
1554 product of:
1555 (I) the amount calculated under Subsection (3)(c)(ii)(B); and
1556 (II) the percentage of property taxes collected for the five calendar years immediately
1557 preceding the current calendar year; and
1558 (D) after making the calculation required by Subsection (3)(c)(ii)(C), calculate an
1559 amount determined by subtracting from the amount calculated under Subsection (3)(c)(ii)(C)
1560 any new growth as defined in this section:
1561 (I) within the taxing entity; and
1562 (II) for the following calendar year:
1563 (Aa) for new growth from real property assessed by a county assessor in accordance
1564 with Part 3, County Assessment and all property assessed by the commission in accordance
1565 with Section 59-2-201 , the current calendar year; and
1566 (Bb) for new growth from personal property assessed by a county assessor in
1567 accordance with Part 3, County Assessment, the prior calendar year.
1568 (iii) For purposes of Subsection (3)(c)(ii)(A), the aggregate taxable value of all
1569 property taxed:
1570 (A) except as provided in Subsection (3)(c)(iii)(B) or (3)(c)(ii)(C), is as defined in
1571 Subsection (3)(b)(ii);
1572 (B) does not include the total taxable value of personal property contained on the tax
1573 rolls of the taxing entity that is:
1574 (I) assessed by a county assessor in accordance with Part 3, County Assessment; and
1575 (II) semiconductor manufacturing equipment; and
1576 (C) for personal property assessed by a county assessor in accordance with Part 3,
1577 County Assessment, the taxable value of personal property is the year end value of the personal
1578 property contained on the prior year's tax rolls of the entity.
1579 (iv) For purposes of Subsection (3)(c)(ii)(B), for calendar years beginning on or after
1580 January 1, 2007, the value of taxable property does not include the value of personal property
1581 that is:
1582 (A) within the taxing entity assessed by a county assessor in accordance with Part 3,
1583 County Assessment; and
1584 (B) semiconductor manufacturing equipment.
1585 (v) For purposes of Subsection (3)(c)(ii)(C)(II), for calendar years beginning on or after
1586 January 1, 2007, the percentage of property taxes collected does not include property taxes
1587 collected from personal property that is:
1588 (A) within the taxing entity assessed by a county assessor in accordance with Part 3,
1589 County Assessment; and
1590 (B) semiconductor manufacturing equipment.
1591 (vi) For purposes of Subsection (3)(c)(ii)(B), for calendar years beginning on or after
1592 January 1, 2009, the value of taxable property does not include the value of personal property
1593 that is within the taxing entity assessed by a county assessor in accordance with Part 3, County
1594 Assessment.
1595 (vii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
1596 the commission may prescribe rules for calculating redevelopment adjustments for a calendar
1597 year.
1598 (viii) (A) For purposes of Subsection (3)(c)(i), for a calendar year beginning on or after
1599 January 1, 2010, a taxing entity's ad valorem property tax revenues budgeted for the prior year
1600 shall be decreased by an amount of revenue equal to the five-year average of the most recent
1601 prior five years of redemptions as reported on the county treasurer's final annual settlement
1602 required under Subsection 59-2-1365 (2).
1603 (B) For the calendar year beginning on January 1, 2010 and ending on December 31,
1604 2010, a taxing entity is exempt from the notice and public hearing provisions of Section
1605 59-2-919 if the taxing entity budgets an increased amount of ad valorem property tax revenue
1606 equal to or less than the taxing entity's five-year average of the most recent prior five years of
1607 redemptions as reported on the county treasurer's final annual settlement required under
1608 Subsection 59-2-1365 (2).
1609 (d) (i) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
1610 the commission shall make rules determining the calculation of ad valorem property tax
1611 revenues budgeted by a taxing entity.
1612 (ii) For purposes of Subsection (3)(d)(i), ad valorem property tax revenues budgeted by
1613 a taxing entity shall be calculated in the same manner as budgeted property tax revenues are
1614 calculated for purposes of Section 59-2-913 .
1615 (e) The certified tax rates for the taxing entities described in this Subsection (3)(e) shall
1616 be calculated as follows:
1617 (i) except as provided in Subsection (3)(e)(ii), for new taxing entities the certified tax
1618 rate is zero;
1619 (ii) for each municipality incorporated on or after July 1, 1996, the certified tax rate is:
1620 (A) in a county of the first, second, or third class, the levy imposed for municipal-type
1621 services under Sections 17-34-1 and 17-36-9 ; and
1622 (B) in a county of the fourth, fifth, or sixth class, the levy imposed for general county
1623 purposes and such other levies imposed solely for the municipal-type services identified in
1624 Section 17-34-1 and Subsection 17-36-3 (22); and
1625 (iii) for debt service voted on by the public, the certified tax rate shall be the actual
1626 levy imposed by that section, except that the certified tax rates for the following levies shall be
1627 calculated in accordance with Section 59-2-913 and this section:
1628 (A) school [
1629
1630 53A-17a-133 , and 53A-17a-164 ; and
1631 (B) levies to pay for the costs of state legislative mandates or judicial or administrative
1632 orders under Section 59-2-1604 .
1633 (f) (i) A judgment levy imposed under Section 59-2-1328 or 59-2-1330 shall be
1634 established at that rate which is sufficient to generate only the revenue required to satisfy one
1635 or more eligible judgments, as defined in Section 59-2-102 .
1636 (ii) The ad valorem property tax revenue generated by the judgment levy shall not be
1637 considered in establishing the taxing entity's aggregate certified tax rate.
1638 (g) The ad valorem property tax revenue generated by the capital [
1639 levy described in Section [
1640 first class:
1641 (i) may not be considered in establishing the school district's aggregate certified tax
1642 rate; and
1643 (ii) shall be included by the commission in establishing a certified tax rate for that
1644 capital [
1645 Subsection 59-2-913 (3).
1646 (4) (a) For the purpose of calculating the certified tax rate, the county auditor shall use:
1647 (i) the taxable value of real property assessed by a county assessor contained on the
1648 assessment roll;
1649 (ii) the taxable value of real and personal property assessed by the commission; and
1650 (iii) the taxable year end value of personal property assessed by a county assessor
1651 contained on the prior year's assessment roll.
1652 (b) For purposes of Subsection (4)(a)(i), the taxable value of real property on the
1653 assessment roll does not include new growth as defined in Subsection (4)(c).
1654 (c) "New growth" means:
1655 (i) the difference between the increase in taxable value of the following property of the
1656 taxing entity from the previous calendar year to the current year:
1657 (A) real property assessed by a county assessor in accordance with Part 3, County
1658 Assessment; and
1659 (B) property assessed by the commission under Section 59-2-201 ; plus
1660 (ii) the difference between the increase in taxable year end value of personal property
1661 of the taxing entity from the year prior to the previous calendar year to the previous calendar
1662 year; minus
1663 (iii) the amount of an increase in taxable value described in Subsection (4)(e).
1664 (d) For purposes of Subsection (4)(c)(ii), the taxable value of personal property of the
1665 taxing entity does not include the taxable value of personal property that is:
1666 (i) contained on the tax rolls of the taxing entity if that property is assessed by a county
1667 assessor in accordance with Part 3, County Assessment; and
1668 (ii) semiconductor manufacturing equipment.
1669 (e) Subsection (4)(c)(iii) applies to the following increases in taxable value:
1670 (i) the amount of increase to locally assessed real property taxable values resulting
1671 from factoring, reappraisal, or any other adjustments; or
1672 (ii) the amount of an increase in the taxable value of property assessed by the
1673 commission under Section 59-2-201 resulting from a change in the method of apportioning the
1674 taxable value prescribed by:
1675 (A) the Legislature;
1676 (B) a court;
1677 (C) the commission in an administrative rule; or
1678 (D) the commission in an administrative order.
1679 (f) For purposes of Subsection (4)(a)(ii), the taxable year end value of personal
1680 property on the prior year's assessment roll does not include:
1681 (i) new growth as defined in Subsection (4)(c); or
1682 (ii) the total taxable year end value of personal property contained on the prior year's
1683 tax rolls of the taxing entity that is:
1684 (A) assessed by a county assessor in accordance with Part 3, County Assessment; and
1685 (B) semiconductor manufacturing equipment.
1686 (5) (a) On or before June 22, each taxing entity shall annually adopt a tentative budget.
1687 (b) If the taxing entity intends to exceed the certified tax rate, it shall notify the county
1688 auditor of:
1689 (i) its intent to exceed the certified tax rate; and
1690 (ii) the amount by which it proposes to exceed the certified tax rate.
1691 (c) The county auditor shall notify property owners of any intent to levy a tax rate that
1692 exceeds the certified tax rate in accordance with Sections 59-2-919 and 59-2-919.1 .
1693 Section 34. Section 59-2-924.3 is amended to read:
1694 59-2-924.3. Adjustment of the calculation of the certified tax rate for a school
1695 district imposing a capital discretionary levy in a county of the first class.
1696 (1) As used in this section:
1697 (a) "Capital [
1698 to the difference between:
1699 (i) the amount of revenue generated by a levy of .0006 per dollar of taxable value
1700 within a school district during a fiscal year; and
1701 (ii) the amount of revenue the school district received during the same fiscal year from
1702 the distribution described in Subsection [
1703 (b) "Contributing school district" means a school district in a county of the first class
1704 that in a fiscal year receives less revenue from the distribution described in Subsection
1705 [
1706 levy imposed within the school district of .0006 per dollar of taxable value.
1707 (c) "Receiving school district" means a school district in a county of the first class that
1708 in a fiscal year receives more revenue from the distribution described in Subsection
1709 [
1710 levy imposed within the school district of .0006 per dollar of taxable value.
1711 [
1712
1713
1714 [
1715 decrease its capital [
1716 59-2-924 (3)(g)(ii) by the amount required to offset the receiving school district's [
1717
1718 [
1719
1720
1721 [
1722
1723
1724 [
1725
1726
1727 [
1728 exempt from the notice and public hearing provisions of Section 59-2-919 for the school
1729 district's capital [
1730 59-2-924 (3)(g)(ii) if:
1731 (a) the contributing school district budgets an increased amount of ad valorem property
1732 tax revenue exclusive of new growth as defined in Subsection 59-2-924 (4) for the capital
1733 [
1734 (b) the increased amount of ad valorem property tax revenue described in Subsection
1735 [
1736 discretionary levy increment for the prior year.
1737 [
1738 from the notice and public hearing provisions of Section 59-2-919 for the school district's
1739 capital [
1740 59-2-924 (3)(g)(ii) if:
1741 (a) the contributing school district budgets an increased amount of ad valorem property
1742 tax revenue exclusive of new growth as defined in Subsection 59-2-924 (4) for the capital
1743 [
1744 (b) the increased amount of ad valorem property tax revenue described in Subsection
1745 [
1746 (i) the amount of revenue generated by a levy of .0006 per dollar of taxable value
1747 imposed within the contributing school district during the current taxable year; and
1748 (ii) the amount of revenue generated by a levy of .0006 per dollar of taxable value
1749 imposed within the contributing school district during the prior taxable year.
1750 [
1751 from the .0006 portion of the capital [
1752 [
1753 .0006 portion of the capital [
1754 53A-16-113 (4) shall be considered to be budgeted ad valorem property tax revenues of the
1755 school district that levies the .0006 portion of the capital [
1756 purposes of calculating the school district's certified tax rate in accordance with Subsection
1757 59-2-924 (3)(g)(ii).
1758 Section 35. Section 59-2-924.4 is amended to read:
1759 59-2-924.4. Adjustment of the calculation of the certified tax rate for certain
1760 divided school districts.
1761 (1) As used in this section:
1762 (a) "Capital [
1763 to the difference between:
1764 (i) the amount of revenue generated by a levy of .0006 per dollar of taxable value
1765 within a qualifying divided school district during a fiscal year; and
1766 (ii) the amount of revenue the qualifying divided school district received during the
1767 same fiscal year from the distribution described in Section 53A-2-118.3 .
1768 (b) "Contributing divided school district" means a school district located within a
1769 qualifying divided school district that in a fiscal year receives less revenue from the distribution
1770 described in Section 53A-2-118.3 than it would have received during the same fiscal year from
1771 a levy imposed within the school district of .0006 per dollar of taxable value.
1772 (c) "Divided school district" means a school district from which a new school district is
1773 created.
1774 (d) "New school district" means a school district:
1775 (i) created under Section 53A-2-118.1 ;
1776 (ii) that begins to provide educational services after July 1, 2008; and
1777 (iii) located in a qualifying divided school district.
1778 (e) "Qualifying divided school district" means a divided school district:
1779 (i) located within a county of the second through sixth class; and
1780 (ii) with a new school district created under Section 53A-2-118.1 that begins to provide
1781 educational services after July 1, 2008.
1782 (f) "Qualifying fiscal year" means the first fiscal year that a new school district begins
1783 to provide educational services.
1784 (g) "Receiving divided school district" means a school district located within a
1785 qualifying divided school district that in a fiscal year receives more revenue from the
1786 distribution described in Section 53A-2-118.3 than it would have received during the same
1787 fiscal year from a levy imposed within the school district of .0006 per dollar of taxable value.
1788 (2) A receiving divided school district shall decrease its certified tax rate calculated in
1789 accordance with Section 59-2-924 by the amount required to offset the receiving divided
1790 school district's capital [
1791 (3) Beginning with the fiscal year after the qualifying fiscal year, a contributing divided
1792 school district is exempt from the notice and public hearing provisions of Section 59-2-919 for
1793 the contributing divided school district's certified tax rate calculated pursuant to Section
1794 59-2-924 if:
1795 (a) the contributing divided school district budgets an increased amount of ad valorem
1796 property tax revenue exclusive of new growth as defined in Subsection 59-2-924 (4) for the
1797 capital [
1798 (b) the increased amount of ad valorem property tax revenue described in Subsection
1799 (3)(a) is less than or equal to that contributing divided school district's capital [
1800 discretionary levy increment for the prior year.
1801 (4) Beginning with the fiscal year after the qualifying fiscal year, a contributing divided
1802 school district is exempt from the notice and public hearing provisions of Section 59-2-919 for
1803 the contributing divided school district's certified tax rate calculated pursuant to Section
1804 59-2-924 if:
1805 (a) the contributing divided school district budgets an increased amount of ad valorem
1806 property tax revenue exclusive of new growth as defined in Subsection 59-2-924 (4) for the
1807 capital [
1808 (b) the increased amount of ad valorem property tax revenue described in Subsection
1809 (4)(a) is less than or equal to the difference between:
1810 (i) the amount of revenue generated by a levy of .0006 per dollar of taxable value
1811 imposed within the contributing divided school district during the current taxable year; and
1812 (ii) the amount of revenue generated by a levy of .0006 per dollar of taxable value
1813 imposed within the contributing divided school district during the prior taxable year.
1814 (5) Regardless of the amount a school district receives from the revenue collected from
1815 the .0006 portion of the capital [
1816 the revenue generated within the school district from the .0006 portion of the capital outlay
1817 levy described in Section 53A-2-118.3 shall be considered to be budgeted ad valorem property
1818 tax revenues of the school district that levies the .0006 portion of the capital [
1819 discretionary levy for purposes of calculating the school district's certified tax rate in
1820 accordance with Section 59-2-924 .
1821 Section 36. Section 59-2-926 is amended to read:
1822 59-2-926. Proposed tax increase by state -- Notice -- Contents -- Dates.
1823 If the state authorizes a levy [
1824
1825 Section 59-2-1602 that exceeds the certified revenue levy as defined in Section 59-2-102 , the
1826 state shall publish a notice no later than 10 days after the last day of the annual legislative
1827 general session that meets the following requirements:
1828 (1) (a) The Office of the Legislative Fiscal Analyst shall advertise that the state
1829 authorized a levy that generates revenue in excess of the previous year's ad valorem tax
1830 revenue, plus new growth, but exclusive of revenue from collections from redemptions,
1831 interest, and penalties:
1832 (i) in a newspaper of general circulation in the state; and
1833 (ii) as required in Section 45-1-101 .
1834 (b) Except an advertisement published on a website, the advertisement described in
1835 Subsection (1)(a):
1836 (i) shall be no less than 1/4 page in size and the type used shall be no smaller than 18
1837 point, and surrounded by a 1/4-inch border[
1838 (ii) may not be placed in that portion of the newspaper where legal notices and
1839 classified advertisements appear; and
1840 (iii) shall be run once.
1841 (2) The form and content of the notice shall be substantially as follows:
1842
1843 The state has budgeted an increase in its property tax revenue from $__________ to
1844 $__________ or ____%. The increase in property tax revenues will come from the following
1845 sources (include all of the following provisions):
1846 (a) $__________ of the increase will come from (provide an explanation of the cause
1847 of adjustment or increased revenues, such as reappraisals or factoring orders);
1848 (b) $__________ of the increase will come from natural increases in the value of the
1849 tax base due to (explain cause of new growth, such as new building activity, annexation, etc.);
1850 (c) a home valued at $100,000 in the state of Utah which based on last year's ([
1851
1852 [
1853 (i) $__________ if the state of Utah did not budget an increase in property tax revenue
1854 exclusive of new growth; and
1855 (ii) $__________ under the increased property tax revenues exclusive of new growth
1856 budgeted by the state of Utah."
1857 Section 37. Section 63G-7-704 is amended to read:
1858 63G-7-704. Tax levy by political subdivisions for payment of claims, judgments,
1859 or insurance premiums.
1860 (1) Notwithstanding any provision of law to the contrary, a political subdivision may
1861 levy an annual property tax sufficient to pay:
1862 (a) any claim, settlement, or judgment;
1863 (b) the costs to defend against any claim, settlement, or judgment; or
1864 (c) for the establishment and maintenance of a reserve fund for the payment of claims,
1865 settlements, or judgments that may be reasonably anticipated.
1866 (2) (a) The payments authorized to pay for punitive damages or to pay the premium for
1867 authorized insurance is money spent for a public purpose within the meaning of this section
1868 and Article XIII, Sec. 5, Utah Constitution, even though, as a result of the levy, the maximum
1869 levy as otherwise restricted by law is exceeded.
1870 (b) No levy under this section may exceed .0001 per dollar of taxable value of taxable
1871 property.
1872 (c) The revenues derived from this levy may not be used for any purpose other than
1873 those specified in this section.
1874 (3) Beginning January 1, 2011, a local school board may not levy a tax in accordance
1875 with this section.
1876 Section 38. Repealer.
1877 This bill repeals:
1878 Section 53A-16-111, Payment of judgments and warrants -- Special tax.
1879 Section 39. Effective date.
1880 This bill takes effect on January 1, 2011.
Legislative Review Note
as of 1-7-10 12:39 PM