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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; and
17 . makes technical amendments.
18 Money Appropriated in this Bill:
20 Other Special Clauses:
22 Utah Code Sections Affected:
24 53A-21-401, as last amended by Laws of Utah 2010, Chapter 162
25 63J-1-602.3, as enacted by Laws of Utah 2010, Chapter 265
27 53A-1a-522, Utah Code Annotated 1953
29 Be it enacted by the Legislature of the state of Utah:
30 Section 1. Section 53A-1a-522 is enacted to read:
31 53A-1a-522. Charter School Revolving Account.
32 (1) As used in this section, "account" means the Charter School Revolving Account.
33 (2) (a) There is created within the Uniform School Fund the Charter School Revolving
34 Account to provide assistance to charter schools to:
35 (i) meet school building construction and renovation needs; and
36 (ii) pay for expenses related to the start up of a new charter school or the expansion of
37 an existing charter school.
38 (b) The State Board of Education, in consultation with the State Charter School Board,
39 shall administer the Charter School Revolving Account in accordance with rules adopted by the
40 State Board of Education.
41 (3) The Charter School Revolving Account shall consist of:
42 (a) money appropriated to the account by the Legislature;
43 (b) money received from the repayment of loans made from the account; and
44 (c) interest earned on money in the account.
45 (4) The state superintendent of public instruction shall make loans to charter schools
46 from the account to pay for the costs of:
47 (a) planning expenses;
48 (b) constructing or renovating charter school buildings;
49 (c) equipment and supplies; or
50 (d) other start-up or expansion expenses.
51 (5) Loans to new charter schools or charter schools with urgent facility needs may be
52 given priority.
53 (6) (a) The State Board of Education shall establish a committee to:
54 (i) review requests by charter schools for loans under this section; and
55 (ii) make recommendations regarding approval or disapproval of the loan applications
56 to the State Charter School Board and the State Board of Education.
57 (b) (i) A committee established under Subsection (6)(a) shall include individuals who
58 have expertise or experience in finance, real estate, or charter school administration.
59 (ii) Of the members appointed to a committee established under Subsection (6)(a):
60 (A) one member shall be nominated by the governor; and
61 (B) the remaining members shall be selected from a list of nominees submitted by the
62 State Charter School Board.
63 (c) If the committee recommends approval of a loan application under Subsection
64 (6)(a)(ii), the committee's recommendation shall include:
65 (i) the recommended amount of the loan;
66 (ii) the payback schedule; and
67 (iii) the interest rate to be charged.
68 (d) A committee member may not:
69 (i) be a relative, as defined in Section 53A-1a-518 , of a loan applicant; or
70 (ii) have a pecuniary interest, directly or indirectly, with a loan applicant or any person
71 or entity that contracts with a loan applicant.
72 (7) A loan under this section may not be made unless the State Board of Education, in
73 consultation with the State Charter School Board, approves the loan.
74 (8) The term of a loan to a charter school under this section may not exceed five years.
75 (9) The State Board of Education may not approve loans to charter schools under this
76 section that exceed a total of $2,000,000 in any year.
77 Section 2. Section 53A-21-401 is amended to read:
79 53A-21-401. School Building Revolving Account -- Access to the account.
80 (1) (a) There is created[
81 the Uniform School Fund the School Building Revolving Account to provide short-term help
82 to school districts to meet district needs for school building construction and renovation[
85 (b) [
87 the School Building Revolving Account in accordance with rules adopted by the State Board of
89 (2) The State Board of Education may not allocate funds from the School Building
90 Revolving Account that exceed a school district's bonding limit minus its outstanding bonds.
91 (3) In order to receive money from the [
92 a school district shall:
93 (a) levy a combined capital levy rate of at least .0024;
94 (b) contract with the state superintendent of public instruction to repay the money, with
95 interest at a rate established by the state superintendent, within five years of receipt, using
96 future state capital outlay allocations, local revenues, or both;
97 (c) levy sufficient ad valorem taxes under Section 11-14-310 to guarantee annual loan
98 repayments, unless the state superintendent of public instruction alters the payment schedule to
99 improve a hardship situation; and
100 (d) meet any other condition established by the State Board of Education pertinent to
101 the loan.
102 (4) (a) The state superintendent shall establish a committee, including representatives
103 from state and local education entities, to:
104 (i) review requests by school districts for loans under this section; and
105 (ii) make recommendations regarding approval or disapproval of the loan applications
106 to the state superintendent.
107 (b) If the committee recommends approval of a loan application under Subsection
108 (4)(a)(ii), the committee's recommendation shall include:
109 (i) the recommended amount of the loan;
110 (ii) the payback schedule; and
111 (iii) the interest rate to be charged.
153 Section 3. Section 63J-1-602.3 is amended to read:
154 63J-1-602.3. List of nonlapsing funds and accounts -- Title 46 through Title 60.
155 (1) Certain funds associated with the Law Enforcement Operations Account, as
156 provided in Section 51-9-411 .
157 (2) The Public Safety Honoring Heroes Restricted Account created in Section
158 53-1-118 .
159 (3) Funding for the Search and Rescue Financial Assistance Program, as provided in
160 Section 53-2-107 .
161 (4) Appropriations made to the Department of Public Safety from the Department of
162 Public Safety Restricted Account, as provided in Section 53-3-106 .
163 (5) Appropriations to the Motorcycle Rider Education Program, as provided in Section
164 53-3-905 .
165 (6) The DNA Specimen Restricted Account created in Section 53-10-407 .
166 (7) The Charter School Building Account created in Section 53A-1a-522 .
168 53A-17a-105 .
170 of Education for new teacher bonus and performance-based compensation plans, as provided in
171 Section 53A-17a-148 .
175 (10) The School Building Revolving Account created in Section 53A-21-401 .
176 (11) Money received by the State Office of Rehabilitation for the sale of certain
177 products or services, as provided in Section 53A-24-105 .
180 Regents for teacher preparation programs, as provided in Section 53B-6-104 .
182 School Institutional Trust Lands Management Act, as provided under Section 53C-3-202 .
184 lines imposed by the Public Service Commission, as provided in Section 54-8b-10 .
186 Licensing for violation of unlawful or unprofessional conduct that are used for education and
187 enforcement purposes, as provided in Section 58-17b-505 .
189 58-31b-103 .
191 in Section 58-44a-103 .
193 Licensing for use in education and enforcement of the Security Personnel Licensing Act, as
194 provided in Section 58-63-103 .
196 Section 58-76-103 .
198 Fund, as provided in Section 59-12-103 .
Legislative Review Note
as of 1-13-11 10:18 AM