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H.B. 398

This document includes House Committee Amendments incorporated into the bill on Fri, Mar 2, 2012 at 11:12 AM by jeyring. -->              1     

ALLOCATION OF SCHOOL TRUST LANDS FUNDS

             2     
2012 GENERAL SESSION

             3     
STATE OF UTAH

             4     
Chief Sponsor: Christopher N. Herrod

             5     
Senate Sponsor: ____________

             6     
             7      LONG TITLE
             8      General Description:
             9          This bill modifies the formula for distributing school trust lands funds to school
             10      districts and charter schools.
             11      Highlighted Provisions:
             12          This bill:
             13          .    modifies the formula for distributing school trust lands funds by providing that:
             14              .    a charter school shall receive a base amount equal to 1/7 of the amount that a
             15      school district receives; and
             16              . H. [     a ] if a school district has an enrollment of fewer than 20,000 students,
             16a      the .H school H. [ district annually may not lose more than $2 ] district's allocation .H per
             16b      student H. may not be less .H than the school
             17      district's per student allocation in the 2011-12 school year as a result of the
             18      change in the formula.
             19      Money Appropriated in this Bill:
             20          None
             21      Other Special Clauses:
             22          This bill takes effect on July 1, 2012
             23      Utah Code Sections Affected:
             24      AMENDS:
             25          53A-16-101.5, as last amended by Laws of Utah 2011, Chapter 293
             26     
             27      Be it enacted by the Legislature of the state of Utah:


             28          Section 1. Section 53A-16-101.5 is amended to read:
             29           53A-16-101.5. School LAND Trust Program -- Purpose -- Distribution of funds --
             30      School plans for use of funds.
             31          (1) There is established the School LAND (Learning And Nurturing Development)
             32      Trust Program for the state's public schools to provide financial resources to enhance or
             33      improve student academic achievement and implement a component of the school
             34      improvement plan.
             35          (2) (a) The program shall be funded each fiscal year:
             36          (i) from the Interest and Dividends Account created in Section 53A-16-101 ; and
             37          (ii) in the amount of the sum of the following:
             38          (A) the interest and dividends from the investment of money in the permanent State
             39      School Fund deposited to the Interest and Dividends Account in the immediately preceding
             40      year; and
             41          (B) interest accrued on money in the Interest and Dividends Account in the
             42      immediately preceding fiscal year.
             43          (b) On and after July 1, 2003, the program shall be funded as provided in Subsection
             44      (2)(a) up to an amount equal to 2% of the funds provided for the Minimum School Program,
             45      pursuant to Title 53A, Chapter 17a, Minimum School Program Act, each fiscal year.
             46          (c) The Legislature shall annually allocate, through an appropriation to the State Board
             47      of Education, a portion of School LAND Trust Program money for the administration of the
             48      program.
             49          (3) (a) [The] Except as provided in Subsection (3)(b), the State Board of Education
             50      shall allocate the money referred to in Subsection (2) annually [for the fiscal year beginning
             51      July 1, 2000, and for each fiscal year thereafter] as follows:
             52          (i) [school districts and the charter schools combined shall receive] 10% of the funds
             53      [on an equal basis] shall be distributed so that each school district shall receive an equal
             54      amount and each charter school shall receive an amount equal to 1/7 of the amount a school
             55      district receives; and
             56          (ii) the remaining 90% of the funds shall be distributed on a per student basis, with
             57      each school district and charter school receiving its allocation based on the number of students
             58      in the school district and charter school as compared to the state total.


             59          (b) (i) The State Board of Education shall annually distribute funds to a school district
             60      so that a school district H. [ does not lose more than $2.00 per student ] with an enrollment of
             60a      fewer than 20,000 students does not receive less money per student .H compared to the school
             61      district's per student allocation under this section in the 2011-12 school year as a result of the
             62      change in the distribution formula under Subsection (3)(a) beginning with the 2012-13 school
             63      year.
             64          (ii) Money distributed under Subsection (3)(b)(i) shall be subtracted from the total
             65      funds made available under Subsection (2) before funds are allocated pursuant to Subsection
             66      (3)(a).
             67          [(b)] (c) A school district shall distribute its allocation under this Subsection (3)[(a)] to
             68      each school within the district on an equal per student basis.
             69          [(c)] (d) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking
             70      Act, the State Board of Education may make rules regarding the time and manner in which the
             71      student count shall be made for allocation of the money.
             72          (4) (a) Except as provided in Subsection (7), in order to receive its allocation under
             73      Subsection (3):
             74          (i) a school shall have established a school community council in accordance with
             75      Section 53A-1a-108 ; and
             76          (ii) the school's principal shall provide a signed, written assurance in accordance with
             77      rules of the State Board of Education that:
             78          (A) the membership of the school community council is consistent with the
             79      membership requirements specified in Section 53A-1a-108 ; and
             80          (B) the members were elected or appointed consistent with selection requirements
             81      specified in 53A-1a-108 .
             82          (b) At the direction of the Legislative Audit Subcommittee, the legislative auditor
             83      general shall:
             84          (i) audit a sample of schools to determine compliance with requirements specified in
             85      Section 53A-1a-108 for school community council membership and the election or
             86      appointment of school community council members; and
             87          (ii) submit an audit report to the Legislative Audit Subcommittee.
             88          (c) The Legislative Audit Subcommittee shall forward the audit report to the Public
             89      Education Appropriations Subcommittee and the State Board of Education.


             90          (d) (i) The State Board of Education may recommend that all or a portion of a school's
             91      allocation of School LAND Trust Program money under Subsection (3) be reduced or
             92      eliminated for a fiscal year if the school has failed to comply with requirements specified in
             93      Section 53A-1a-108 for school community council membership or the election or appointment
             94      of school community council members.
             95          (ii) The State Board of Education shall report to the Public Education Appropriations
             96      Subcommittee on the board's action or decision regarding a school identified in an audit report
             97      as being not in compliance with requirements specified in Section 53A-1a-108 for school
             98      community council membership or the election or appointment of school community council
             99      members.
             100          (5) (a) The school community council or its subcommittee shall create a program to use
             101      its allocation under Subsection (3) to implement a component of the school's improvement
             102      plan, including:
             103          (i) the school's identified most critical academic needs;
             104          (ii) a recommended course of action to meet the identified academic needs;
             105          (iii) a specific listing of any programs, practices, materials, or equipment which the
             106      school will need to implement a component of its school improvement plan to have a direct
             107      impact on the instruction of students and result in measurable increased student performance;
             108      and
             109          (iv) how the school intends to spend its allocation of funds under this section to
             110      enhance or improve academic excellence at the school.
             111          (b) The school may develop a multiyear program, but the program shall be approved by
             112      the school community council and the local school board of the district in which the school is
             113      located annually and as a prerequisite to receiving program funds allocated under this section.
             114          (c) (i) A school community council shall consider the approval of a plan for the use of
             115      School LAND Trust Program money in a meeting of the school community council at which a
             116      quorum is present.
             117          (ii) If a majority of the quorum votes to approve a plan for the use of School LAND
             118      Trust Program money, the plan is approved.
             119          (d) A school community council shall:
             120          (i) submit a plan for the use of School LAND Trust Program money that is approved in


             121      accordance with Subsection (5)(c) to the local school board for the local school board's
             122      approval; and
             123          (ii) include with the plan a report noting the number of school community council
             124      members who voted for or against the approval of the plan and the number of members who
             125      were absent for the vote.
             126          (e) (i) A local school board may approve or disapprove a plan for the use of School
             127      LAND Trust Program money.
             128          (ii) If a local school board disapproves a plan for the use of School LAND Trust
             129      Program money, the local school board shall provide a written explanation of why the plan was
             130      disapproved and request the school community council who submitted the plan to revise the
             131      plan.
             132          (iii) The school community council shall submit a revised plan to the local school
             133      board for approval.
             134          (6) (a) Each school shall:
             135          (i) implement the program as approved by the school community council and approved
             136      by the local school board;
             137          (ii) provide ongoing support for the council's or its subcommittee's program; and
             138          (iii) meet school board reporting requirements regarding financial and performance
             139      accountability of the program.
             140          (b) (i) Each school through its council or its subcommittee shall prepare and present an
             141      annual report of the program to its local school board at the end of the school year.
             142          (ii) The report shall detail the use of program funds received by the school under this
             143      section and an assessment of the results obtained from the use of the funds.
             144          (iii) A summary of the report shall be sent to households in accordance with the
             145      provisions under Subsection 53A-1a-108 (7).
             146          (7) (a) The governing board of a charter school shall prepare a plan for the use of
             147      School LAND Trust Program money that includes the elements listed in Subsection (5).
             148          (b) The plan shall be subject to approval by the entity that authorized the establishment
             149      of the charter school.
             150          (8) (a) A school community council and a governing board of a charter school may not
             151      be required to:


             152          (i) send a letter to legislators or other elected officials on the school's use of School
             153      LAND Trust Program money as a condition of receiving the money; or
             154          (ii) report to the State Board of Education or any local school board on whether any
             155      letters were sent to legislators or other elected officials on the school's use of School LAND
             156      Trust Program money.
             157          (b) Subsection (8)(a)(i) does not apply to the annual report to the local school board
             158      required by Subsection (6)(b).
             159          Section 2. Effective date.
             160          This bill takes effect on July 1, 2012




Legislative Review Note
    as of 2-15-12 3:07 PM


Office of Legislative Research and General Counsel


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