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MINUTES OF HOUSE EDUCATION
STANDING COMMITTEE

Wednesday, February 2, 2011
Room 445, State Capitol Building


MEMBERS PRESENT:    Rep. Bill Wright, Chair
        Rep. LaVar Christensen, Vice Chair
        Rep. Patrice Arent
        Rep. Becky Edwards
        Rep. Steve Eliason
        Rep. Greg Hughes    
        Rep. John Mathis
        Rep. Kay McIff
        Rep. Carol Spackman Moss
        Rep. Merlynn Newbold
        Rep. Marie Poulson
        Rep. Kraig Powell
        Rep. Holly Richardson
        Rep. Ken Sumsion

MEMBERS ABSENT:    Rep. Rebecca Lockhart            
            
STAFF PRESENT:    Constance C. Steffen, Policy Analyst
        Linda Service, Committee Secretary
        

Note: List of visitors and copy of handouts are filed with committee minutes.


Rep. Wright called the meeting to order at 2:12 p.m.

MOTION:    Rep. Arent moved to approve the minutes of February 1, 2011. The motion passed unanimously. Rep. Christensen, Rep. Hughes, Rep. Mathis, Rep. McIff, and Rep. Poulson were absent for the vote.

H.B. 50    School Termination Procedures Modifications (Rep. R. Menlove)

Rep. Menlove introduced the bill which amends the Utah Orderly School Termination Procedures Act.

The following spoke in support of the bill:
    Ron Wolff, Superintendent, Box Elder School District
    Tani Downing, Director, Division of Risk Management
    Larry Shumway, Superintendent, Utah State Office of Education
    Jodee Sundberg, Utah School Boards Association


MOTION:    Rep. Newbold moved to pass the bill out with a favorable recommendation. The motion passed unanimously. Rep. Christensen and Rep. Mathis were absent for the vote.

H.B. 195    Debt Service Obligations of a Divided School District (Rep. K. Sumsion)

MOTION:
    Rep. Sumsion moved to amend the bill as follows:

1.    Page 3, Lines 71 through 75 :    

             71          (2)
{   The   }        (a) Except as provided in Subsection (2)(b), the       local school board of [the] a      {   remaining   }        new       district        created prior to May 10, 2011       shall      {   continue to   } levy a tax on

             72      property within
{   [   } the      {   ]   }      {   a   } new district      {   created prior to May 10, 2011   } sufficient to pay the new

             73      district's proportionate share of the indebtedness determined under [this section] Subsection
             74      (1)
{   , and shall annually report the amount of the proceeds of the tax to the business

             75      administrator of the new district  
}
.
 

    (b) If a new district has money available to pay the new district's proportionate share of the indebtedness determined under Subsection (1), the new district may abate a property tax to the extent of money available.  


2.    Page 3, Line 81 through Page 4, Line 93 :    

             81          (4) If a new district is created on or after May 10, 2011
{   :   }        ,      

             82          
{   (a)   } property within the new district and the remaining district is subject to the levy of a

             83      tax to pay the divided school district's outstanding bonded indebtedness
{   ; and   }        as provided in Subsection (5).      

             84          
{   (b) the local school board of the remaining district shall:

             85          (i) levy a tax each taxable year on property within the new district and remaining
             86      district until the outstanding bonded indebtedness of the divided school district is retired; and
             87          (ii) annually report the amount of the proceeds of the tax to the business administrator
             88      of the new district.  
}

             89          (5)
{   The   }        (a) Except as provided in Subsection (5)(b), the local school board of the new district and the       local school board of the remaining district shall impose a tax levy      {   under


             90
     Subsection (4)   } at a rate that:
             91          
{   (a)   }        (i)       generates        from the combined districts       the amount of revenue required each year to meet the outstanding bonded

             92      indebtedness of the divided school district; and
             93          
{   (b)   }        (ii)       is uniform within the new district and remaining district.       

    (b) A local school board of a new district may abate a property tax required to be imposed under Subsection (5)(a) to the extent the new district has money available to pay to the remaining district the amount of revenue that would be generated within the new district from the tax rate specified in Subsection (5)(a).  

The motion passed unanimously. Rep. Arent and Rep. Mathis were absent for the vote.

Rep. Sumsion introduced the bill which modifies requirements for the imposition of a tax on property within a new district and remaining district to pay the debt service obligations of a divided school district.

MOTION:    Rep. Newbold moved to pass out H.B. 195 as amended with a favorable recommendation. The motion passed unanimously. Rep. Arent, Rep. Mathis, and Rep. Powell were absent for the vote.

H.B. 83    Charter School Revolving Account (Rep. G. Hughes)

MOTION:    Rep. Hughes moved to amend the bill as follows:

1.    Page 1, Line 16 :    

             16      procedures for making loans from the account;
 

    . provides that the assets of, and loan payments for loans made from, the Charter School Building Revolving Subaccount shall be deposited into the Charter School Revolving Account;  
and


2.    Page 1, Line 21 :    

             21          
{   None   }        This bill provides an immediate effective date .

                This bill provides revisor instructions.
                  


3.    Page 2, Lines 33 through 34 :    

             33          (2) (a) There is created within the Uniform School Fund
  a restricted account known as       the Charter School Revolving

             34      Account to provide assistance to charter schools to:

4.    Page 3, Line 76 :    


             76      section that exceed a total of $2,000,000 in any
  fiscal       year.       

    (10)(a) On the effective date of this bill, the assets of the Charter School Building Subaccount administered by the State Board of Education shall be deposited into the Charter School Revolving Account.
    (b) Beginning on the effective date of this bill, loan payments for loans made from the Charter School Building Subaccount shall be deposited into the Charter School Revolving Account.  


5.    Page 3, Lines 80 through 81 :    

             80          (1) (a) There is created[: (a) the "Capital Outlay Loan Program" to provide: (i)] within
             81      the Uniform School Fund
  a restricted account known as       the School Building Revolving Account to provide short-term help


6.    Page 6, Lines 166 through 167 :    

             166          
{   (7) The Charter School Building Account created in Section 53A-1a-522 .   }

             167          
{   [   } (7)      {   ]   }      {   (8)   } Appropriations to the State Board of Education, as provided in Section


7.    Page 6, Line 169 :    

             169          
{   [   } (8)      {   ]   }      {   (9)   } Certain funds appropriated from the Uniform School Fund to the State Board


8.    Page 6, Lines 175 through 176 :    

             175          
{   (10) The School Building Revolving Account created in Section 53A-21-401 .   }

             176          
{   (11)   }        (9)       Money received by the State Office of Rehabilitation for the sale of certain


9.    Page 6, Line 179 :    

             179          [(13)]
{   (12)   }        (10)       Certain funds appropriated from the General Fund to the State Board of


10.    Page 6, Line 181 :    

             181          [(14)]
{   (13)   }        (11)       A certain portion of money collected for administrative costs under the


11.    Page 7, Line 183 :    


             183          [(15)]
{   (14)   }        (12)       Certain surcharges on residence and business telecommunications access


12.    Page 7, Line 185 :    

             185          [(16)]
{   (15)   }        (13)       Certain fines collected by the Division of Occupational and Professional


13.    Page 7, Line 188 :    

             188          [(17)]
{   (16)   }        (14)       The Nurse Education and Enforcement Account created in Section


14.    Page 7, Line 190 :    

             190          [(18)]
{   (17)   }        (15)       The Certified Nurse Midwife Education and Enforcement Account created


15.    Page 7, Line 192 :    

             192          [(19)]
{   (18)   }        (16)       Certain fines collected by the Division of Occupational and Professional


16.    Page 7, Line 195 :    

             195          [(20)]
{   (19)   }        (17)       The Professional Geologist Education and Enforcement Account created in


17.    Page 7, Lines 197 through 198 :    

             197          [(21)]
{   (20)   }        (18)       Certain money in the Water Resources Conservation and Development

             198      Fund, as provided in Section 59-12-103 .
 

    Section 4. Effective date.
    If approved by two-thirds of all the members elected to each house, this bill takes effect upon approval by the governor, or the day following the constitutional time limit of Utah Constitution Article VII, Section 8, without the governor's signature, or in the case of a veto, the date of veto override.

    Section 5. Revisor Instructions.
    It is the intent of the Legislature, that in preparing the Utah Code database for publication, the Office of Legislative Research and General Counsel shall replace the phrase "the effective date of this bill" in Subsections 53A-1a-522(10)(a) and 53A-1a-522(10)(b) with the bill's actual effective date.  



The motion passed unanimously. Rep. Arent, Rep. Mathis, and Rep. Powell were absent for the vote.    
    
Rep. Hughes introduced the bill which reorganizes provisions relating to a revolving loan account for charter schools.

The following spoke in support of the bill:
    Chris Bleak, Utah Association of Public Charter Schools
    Larry Shumway, Superintendent, Utah State Office of Education

MOTION:    Rep. Newbold moved to pass out H.B. 83 as amended with a favorable recommendation. The motion passed unanimously. Rep. Arent and Rep. Powell were absent for the vote.

H.B. 220    Civics Education Amendments (Rep. M. Morley)

H.B. 220 was not considered.

MOTION:    Rep. Edwards moved to adjourn at 2:45 p.m. The motion passed unanimously. Rep. Arent and Rep. Powell were absent for the vote.







            __________________________________
            Rep. Bill Wright, Chair