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H.B. 83 Enrolled

             1     

CHARTER SCHOOL REVOLVING ACCOUNT

             2     
2011 GENERAL SESSION

             3     
STATE OF UTAH

             4     
Chief Sponsor: Gregory H. Hughes

             5     
Senate Sponsor: Wayne L. Niederhauser

             6     
             7      LONG TITLE
             8      General Description:
             9          This bill reorganizes provisions relating to a revolving loan account for charter schools.
             10      Highlighted Provisions:
             11          This bill:
             12          .    eliminates the Charter School Building Revolving Subaccount within the School
             13      Building Revolving Account and creates the Charter School Revolving Account
             14      within the Uniform School Fund;
             15          .    specifies the permitted uses of funds in the Charter School Revolving Account and
             16      procedures for making loans from the account;
             17          .    provides that the assets of, and loan payments for loans made from, the Charter
             18      School Building Revolving Subaccount shall be deposited into the Charter School
             19      Revolving Account; and
             20          .    makes technical amendments.
             21      Money Appropriated in this Bill:
             22          None
             23      Other Special Clauses:
             24          This bill provides an immediate effective date.
             25          This bill provides revisor instructions.
             26      Utah Code Sections Affected:
             27      AMENDS:
             28          53A-21-401, as last amended by Laws of Utah 2010, Chapter 162
             29          63J-1-602.3, as enacted by Laws of Utah 2010, Chapter 265


             30      ENACTS:
             31          53A-1a-522, Utah Code Annotated 1953
             32     
             33      Be it enacted by the Legislature of the state of Utah:
             34          Section 1. Section 53A-1a-522 is enacted to read:
             35          53A-1a-522. Charter School Revolving Account.
             36          (1) As used in this section, "account" means the Charter School Revolving Account.
             37          (2) (a) There is created within the Uniform School Fund a restricted account known as
             38      the "Charter School Revolving Account" to provide assistance to charter schools to:
             39          (i) meet school building construction and renovation needs; and
             40          (ii) pay for expenses related to the start up of a new charter school or the expansion of
             41      an existing charter school.
             42          (b) The State Board of Education, in consultation with the State Charter School Board,
             43      shall administer the Charter School Revolving Account in accordance with rules adopted by the
             44      State Board of Education.
             45          (3) The Charter School Revolving Account shall consist of:
             46          (a) money appropriated to the account by the Legislature;
             47          (b) money received from the repayment of loans made from the account; and
             48          (c) interest earned on money in the account.
             49          (4) The state superintendent of public instruction shall make loans to charter schools
             50      from the account to pay for the costs of:
             51          (a) planning expenses;
             52          (b) constructing or renovating charter school buildings;
             53          (c) equipment and supplies; or
             54          (d) other start-up or expansion expenses.
             55          (5) Loans to new charter schools or charter schools with urgent facility needs may be
             56      given priority.
             57          (6) (a) The State Board of Education shall establish a committee to:


             58          (i) review requests by charter schools for loans under this section; and
             59          (ii) make recommendations regarding approval or disapproval of the loan applications
             60      to the State Charter School Board and the State Board of Education.
             61          (b) (i) A committee established under Subsection (6)(a) shall include individuals who
             62      have expertise or experience in finance, real estate, or charter school administration.
             63          (ii) Of the members appointed to a committee established under Subsection (6)(a):
             64          (A) one member shall be nominated by the governor; and
             65          (B) the remaining members shall be selected from a list of nominees submitted by the
             66      State Charter School Board.
             67          (c) If the committee recommends approval of a loan application under Subsection
             68      (6)(a)(ii), the committee's recommendation shall include:
             69          (i) the recommended amount of the loan;
             70          (ii) the payback schedule; and
             71          (iii) the interest rate to be charged.
             72          (d) A committee member may not:
             73          (i) be a relative, as defined in Section 53A-1a-518 , of a loan applicant; or
             74          (ii) have a pecuniary interest, directly or indirectly, with a loan applicant or any person
             75      or entity that contracts with a loan applicant.
             76          (7) A loan under this section may not be made unless the State Board of Education, in
             77      consultation with the State Charter School Board, approves the loan.
             78          (8) The term of a loan to a charter school under this section may not exceed five years.
             79          (9) The State Board of Education may not approve loans to charter schools under this
             80      section that exceed a total of $2,000,000 in any fiscal year.
             81          (10) (a) On the effective date of this bill, the assets of the Charter School Building
             82      Subaccount administered by the State Board of Education shall be deposited into the Charter
             83      School Revolving Account.
             84          (b) Beginning on the effective date of this bill, loan payments for loans made from the
             85      Charter School Building Subaccount shall be deposited into the Charter School Revolving


             86      Account.
             87          Section 2. Section 53A-21-401 is amended to read:
             88     
Part 4. School Building Revolving Account

             89           53A-21-401. School Building Revolving Account -- Access to the account.
             90          (1) (a) There is created[: (a) the "Capital Outlay Loan Program" to provide: (i)] within
             91      the Uniform School Fund a restricted account known as the "School Building Revolving
             92      Account" to provide short-term help to school districts to meet district needs for school
             93      building construction and renovation[; and].
             94          [(ii) assistance to charter schools to meet school building construction and renovation
             95      needs; and]
             96          (b) [a nonlapsing "School Building Revolving Account" administered within the
             97      Uniform School Fund by the] The state superintendent of public instruction shall administer
             98      the School Building Revolving Account in accordance with rules adopted by the State Board of
             99      Education.
             100          (2) The State Board of Education may not allocate funds from the School Building
             101      Revolving Account that exceed a school district's bonding limit minus its outstanding bonds.
             102          (3) In order to receive money from the [account] School Building Revolving Account,
             103      a school district shall:
             104          (a) levy a combined capital levy rate of at least .0024;
             105          (b) contract with the state superintendent of public instruction to repay the money, with
             106      interest at a rate established by the state superintendent, within five years of receipt, using
             107      future state capital outlay allocations, local revenues, or both;
             108          (c) levy sufficient ad valorem taxes under Section 11-14-310 to guarantee annual loan
             109      repayments, unless the state superintendent of public instruction alters the payment schedule to
             110      improve a hardship situation; and
             111          (d) meet any other condition established by the State Board of Education pertinent to
             112      the loan.
             113          (4) (a) The state superintendent shall establish a committee, including representatives


             114      from state and local education entities, to:
             115          (i) review requests by school districts for loans under this section; and
             116          (ii) make recommendations regarding approval or disapproval of the loan applications
             117      to the state superintendent.
             118          (b) If the committee recommends approval of a loan application under Subsection
             119      (4)(a)(ii), the committee's recommendation shall include:
             120          (i) the recommended amount of the loan;
             121          (ii) the payback schedule; and
             122          (iii) the interest rate to be charged.
             123          [(5) (a) There is established within the School Building Revolving Account the Charter
             124      School Building Subaccount administered by the State Board of Education, in consultation
             125      with the State Charter School Board, in accordance with rules adopted by the State Board of
             126      Education.]
             127          [(b) The Charter School Building Subaccount shall consist of:]
             128          [(i) money appropriated to the subaccount by the Legislature;]
             129          [(ii) money received from the repayment of loans made from the subaccount; and]
             130          [(iii) interest earned on money in the subaccount.]
             131          [(c) The state superintendent of public instruction shall make loans to charter schools
             132      from the Charter School Building Subaccount to pay for the costs of:]
             133          [(i) planning expenses;]
             134          [(ii) constructing or renovating charter school buildings;]
             135          [(iii) equipment and supplies; or]
             136          [(iv) other start-up or expansion expenses.]
             137          [(d) Loans to new charter schools or charter schools with urgent facility needs may be
             138      given priority.]
             139          [(6) (a) The State Board of Education shall establish a committee to:]
             140          [(i) review requests by charter schools for loans under this section; and]
             141          [(ii) make recommendations regarding approval or disapproval of the loan applications


             142      to the State Charter School Board and the State Board of Education.]
             143          [(b) (i) A committee established under Subsection (6)(a) shall include individuals who
             144      have expertise or experience in finance, real estate, or charter school administration.]
             145          [(ii) Of the members appointed to a committee established under Subsection (6)(a):]
             146          [(A) one member shall be nominated by the governor; and]
             147          [(B) the remaining members shall be selected from a list of nominees submitted by the
             148      State Charter School Board.]
             149          [(c) If the committee recommends approval of a loan application under Subsection
             150      (6)(a)(ii), the committee's recommendation shall include:]
             151          [(i) the recommended amount of the loan;]
             152          [(ii) the payback schedule; and]
             153          [(iii) the interest rate to be charged.]
             154          [(d) The committee members may not:]
             155          [(i) be a relative, as defined in Section 53A-1a-518 , of a loan applicant; or]
             156          [(ii) have a pecuniary interest, directly or indirectly, with a loan applicant or any person
             157      or entity that contracts with a loan applicant.]
             158          [(7) The State Board of Education, in consultation with the State Charter School
             159      Board, shall approve all loans to a charter school under this section.]
             160          [(8) The term of a loan to a charter school under this section may not exceed five
             161      years.]
             162          [(9) The State Board of Education may not approve loans to charter schools under this
             163      section that exceed a total of $2,000,000 in any year.]
             164          Section 3. Section 63J-1-602.3 is amended to read:
             165           63J-1-602.3. List of nonlapsing funds and accounts -- Title 46 through Title 60.
             166          (1) Certain funds associated with the Law Enforcement Operations Account, as
             167      provided in Section 51-9-411 .
             168          (2) The Public Safety Honoring Heroes Restricted Account created in Section
             169      53-1-118 .


             170          (3) Funding for the Search and Rescue Financial Assistance Program, as provided in
             171      Section 53-2-107 .
             172          (4) Appropriations made to the Department of Public Safety from the Department of
             173      Public Safety Restricted Account, as provided in Section 53-3-106 .
             174          (5) Appropriations to the Motorcycle Rider Education Program, as provided in Section
             175      53-3-905 .
             176          (6) The DNA Specimen Restricted Account created in Section 53-10-407 .
             177          (7) Appropriations to the State Board of Education, as provided in Section
             178      53A-17a-105 .
             179          (8) Certain funds appropriated from the Uniform School Fund to the State Board of
             180      Education for new teacher bonus and performance-based compensation plans, as provided in
             181      Section 53A-17a-148 .
             182          [(9) Certain funds appropriated from the Uniform School Fund to the State Board of
             183      Education for implementation of proposals to improve mathematics achievement test scores, as
             184      provided in Section 53A-17a-152 .]
             185          [(10) The School Building Revolving Account created in Section 53A-21-401 .]
             186          [(11)] (9) Money received by the State Office of Rehabilitation for the sale of certain
             187      products or services, as provided in Section 53A-24-105 .
             188          [(12) The State Board of Regents, as provided in Section 53B-6-104 .]
             189          [(13)] (10) Certain funds appropriated from the General Fund to the State Board of
             190      Regents for teacher preparation programs, as provided in Section 53B-6-104 .
             191          [(14)] (11) A certain portion of money collected for administrative costs under the
             192      School Institutional Trust Lands Management Act, as provided under Section 53C-3-202 .
             193          [(15)] (12) Certain surcharges on residence and business telecommunications access
             194      lines imposed by the Public Service Commission, as provided in Section 54-8b-10 .
             195          [(16)] (13) Certain fines collected by the Division of Occupational and Professional
             196      Licensing for violation of unlawful or unprofessional conduct that are used for education and
             197      enforcement purposes, as provided in Section 58-17b-505 .


             198          [(17)] (14) The Nurse Education and Enforcement Account created in Section
             199      58-31b-103 .
             200          [(18)] (15) The Certified Nurse Midwife Education and Enforcement Account created
             201      in Section 58-44a-103 .
             202          [(19)] (16) Certain fines collected by the Division of Occupational and Professional
             203      Licensing for use in education and enforcement of the Security Personnel Licensing Act, as
             204      provided in Section 58-63-103 .
             205          [(20)] (17) The Professional Geologist Education and Enforcement Account created in
             206      Section 58-76-103 .
             207          [(21)] (18) Certain money in the Water Resources Conservation and Development
             208      Fund, as provided in Section 59-12-103 .
             209          Section 4. Effective date.
             210          If approved by two-thirds of all the members elected to each house, this bill takes effect
             211      upon approval by the governor, or the day following the constitutional time limit of Utah
             212      Constitution Article VII, Section 8, without the governor's signature, or in the case of a veto,
             213      the date of veto override.
             214          Section 5. Revisor instructions.
             215          It is the intent of the Legislature, that in preparing the Utah Code database for
             216      publication, the Office of Legislative Research and General Counsel shall replace the phrase
             217      "the effective date of this bill" in Subsections 53A-1a-522 (10)(a) and 53A-1a-522 (10)(b) with
             218      the bill's actual effective date.


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