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H.B. 397

             1     

CHARTER SCHOOL START-UP AMENDMENTS

             2     
2012 GENERAL SESSION

             3     
STATE OF UTAH

             4     
Chief Sponsor: Brad L. Dee

             5     
Senate Sponsor: Howard A. Stephenson

             6     
             7      LONG TITLE
             8      General Description:
             9          This bill provides money for charter school start-up costs.
             10      Highlighted Provisions:
             11          This bill:
             12          .    provides for grants to charter schools for expenses for planning and implementation
             13      of a charter school;
             14          .    allows the State Charter School Board to use a portion of the money appropriated
             15      for charter school start-up costs for financial monitoring of new charter schools and
             16      professional development or technical assistance for governing board members and
             17      staff of new charter schools; and
             18          .    directs the State Board of Education to make rules for the award and use of grants
             19      for charter school start-up costs.
             20      Money Appropriated in this Bill:
             21          This bill appropriates:
             22          .    to the State Board of Education - State Charter School Board, as an ongoing
             23      appropriation for fiscal year 2012-13:
             24              .    from the Education Fund, $2,500,000.
             25      Other Special Clauses:
             26          This bill provides an effective date.
             27      Utah Code Sections Affected:


             28      AMENDS:
             29          53A-1a-513, as last amended by Laws of Utah 2011, Chapter 371
             30      ENACTS:
             31          53A-1a-513.5, Utah Code Annotated 1953
             32     
             33      Be it enacted by the Legislature of the state of Utah:
             34          Section 1. Section 53A-1a-513 is amended to read:
             35           53A-1a-513. Funding for charter schools.
             36          (1) As used in this section:
             37          (a) "Charter school students' average local revenues" means the amount determined as
             38      follows:
             39          (i) for each student enrolled in a charter school on the previous October 1, calculate the
             40      district per pupil local revenues of the school district in which the student resides;
             41          (ii) sum the district per pupil local revenues for each student enrolled in a charter
             42      school on the previous October 1; and
             43          (iii) divide the sum calculated under Subsection (1)(a)(ii) by the number of students
             44      enrolled in charter schools on the previous October 1.
             45          (b) "District local property tax revenues" means the sum of a school district's revenue
             46      received from the following levies:
             47          (i) (A) a voted levy imposed under Section 53A-17a-133 ;
             48          (B) a board levy imposed under Section 53A-17a-134 ;
             49          (C) a 10% of basic levy imposed under Section 53A-17a-145 ;
             50          (D) a tort liability levy imposed under Section 63G-7-704 ;
             51          (E) a capital outlay levy imposed under Section 53A-16-107 ; and
             52          (F) a voted capital outlay levy imposed under Section 53A-16-110 ; or
             53          (ii) (A) a voted local levy imposed under Section 53A-17a-133 ;
             54          (B) a board local levy imposed under Section 53A-17a-164 , excluding revenues
             55      expended for:
             56          (I) recreational facilities and activities authorized under Title 11, Chapter 2,
             57      Playgrounds;
             58          (II) pupil transportation, up to the amount of revenue generated by a .0003 per dollar of


             59      taxable value of the school district's board local levy; and
             60          (III) the K-3 Reading Improvement Program, up to the amount of revenue generated by
             61      a .000121 per dollar of taxable value of the school district's board local levy; and
             62          (C) a capital local levy imposed under Section 53A-16-113 .
             63          (c) "District per pupil local revenues" means an amount equal to the following, using
             64      data from the most recently published school district annual financial reports and state
             65      superintendent's annual report:
             66          (i) district local property tax revenues; divided by
             67          (ii) the sum of:
             68          (A) a school district's average daily membership; and
             69          (B) the average daily membership of a school district's resident students who attend
             70      charter schools.
             71          (d) "Resident student" means a student who is considered a resident of the school
             72      district under Title 53A, Chapter 2, Part 2, District of Residency.
             73          (e) "Statewide average debt service revenues" means the amount determined as
             74      follows, using data from the most recently published state superintendent's annual report:
             75          (i) sum the revenues of each school district from the debt service levy imposed under
             76      Section 11-14-310 ; and
             77          (ii) divide the sum calculated under Subsection (1)(e)(i) by statewide school district
             78      average daily membership.
             79          (2) (a) Charter schools shall receive funding as described in this section, except
             80      Subsections (3) through (8) do not apply to charter schools described in Subsection (2)(b).
             81          (b) Charter schools authorized by local school boards that are converted from district
             82      schools or operate in district facilities without paying reasonable rent shall receive funding as
             83      prescribed in Section 53A-1a-515 .
             84          (3) (a) Except as provided in Subsection (3)(b), a charter school shall receive state
             85      funds, as applicable, on the same basis as a school district receives funds.
             86          (b) In distributing funds under Chapter 17a, Minimum School Program Act, to charter
             87      schools, charter school pupils shall be weighted, where applicable, as follows:
             88          (i) .55 for kindergarten pupils;
             89          (ii) .9 for pupils in grades 1 through 6;


             90          (iii) .99 for pupils in grades 7 through 8; and
             91          (iv) 1.2 for pupils in grades 9 through 12.
             92          (4) (a) (i) A school district shall allocate a portion of school district revenues for each
             93      resident student of the school district who is enrolled in a charter school on October 1 equal to
             94      25% of the lesser of:
             95          (A) district per pupil local revenues; or
             96          (B) charter school students' average local revenues.
             97          (ii) Nothing in this Subsection (4)(a) affects the school bond guarantee program
             98      established under Chapter 28, Utah School Bond Guaranty Act.
             99          (b) The State Board of Education shall:
             100          (i) deduct an amount equal to the allocation provided under Subsection (4)(a) from
             101      state funds the school district is authorized to receive under Chapter 17a, Minimum School
             102      Program Act; and
             103          (ii) remit the money to the student's charter school.
             104          (c) Notwithstanding the method used to transfer school district revenues to charter
             105      schools as provided in Subsection (4)(b), a school district may deduct the allocations to charter
             106      schools under this section from:
             107          (i) unrestricted revenues available to the school district; or
             108          (ii) the revenue sources listed in Subsection (1)(b) based on the portion of the
             109      allocations to charter schools attributed to each of the revenue sources listed in Subsection
             110      (1)(b).
             111          (d) (i) Subject to future budget constraints, the Legislature shall provide an
             112      appropriation for charter schools for each student enrolled on October 1 to supplement the
             113      allocation of school district revenues under Subsection (4)(a).
             114          (ii) Except as provided in Subsection (4)(d)(iii), the amount of money provided by the
             115      state for a charter school student shall be the sum of:
             116          (A) charter school students' average local revenues minus the allocation of school
             117      district revenues under Subsection (4)(a); and
             118          (B) statewide average debt service revenues.
             119          (iii) If the total of a school district's allocation for a charter school student under
             120      Subsection (4)(a) and the amount provided by the state under Subsection (4)(d)(ii) is less than


             121      $1427, the state shall provide an additional supplement so that a charter school receives at least
             122      $1427 per student under this Subsection (4).
             123          (iv) (A) If the appropriation provided under this Subsection (4)(d) is less than the
             124      amount prescribed by Subsection (4)(d)(ii) or (4)(d)(iii), the appropriation shall be allocated
             125      among charter schools in proportion to each charter school's enrollment as a percentage of the
             126      total enrollment in charter schools.
             127          (B) If the State Board of Education makes adjustments to Minimum School Program
             128      allocations as provided under Section 53A-17a-105 , the allocation provided in Subsection
             129      (4)(d)(iv)(A) shall be determined after adjustments are made under Section 53A-17a-105 .
             130          (e) Of the money provided to a charter school under this Subsection (4), 10% shall be
             131      expended for funding school facilities only.
             132          (5) Charter schools are eligible to receive federal funds if they meet all applicable
             133      federal requirements and comply with relevant federal regulations.
             134          (6) The State Board of Education shall distribute funds for charter school students
             135      directly to the charter school.
             136          (7) (a) Notwithstanding Subsection (3), a charter school is not eligible to receive state
             137      transportation funding.
             138          (b) The board shall also adopt rules relating to the transportation of students to and
             139      from charter schools, taking into account Sections 53A-2-210 and 53A-17a-127 .
             140          (c) The governing body of the charter school may provide transportation through an
             141      agreement or contract with the local school board, a private provider, or with parents.
             142          (8) (a) (i) [The state superintendent of public instruction] In accordance with Section
             143      53A-1a-513.5 , the State Charter School Board may allocate grants for [both] start-up [and
             144      ongoing] costs to [eligible] charter [school applicants] schools from money appropriated for
             145      [the implementation of this part] charter school start-up costs.
             146          [(ii) Applications for the grants shall be filed on a form determined by the state
             147      superintendent and in conjunction with the application for a charter.]
             148          [(iii) The amount of a grant may vary based upon the size, scope, and special
             149      circumstances of the charter school.]
             150          [(iv)] (ii) The governing board of [the] a charter school that receives money from a
             151      grant under Section 53A-1a-513.5 shall use the grant [to meet the] for expenses [of the school


             152      as established in the school's charter] for planning and implementation of the charter school.
             153          (b) The State Board of Education shall coordinate the distribution of federal money
             154      appropriated to help fund costs for establishing and maintaining charter schools within the
             155      state.
             156          (9) (a) A charter school may receive, hold, manage and use any devise, bequest, grant,
             157      endowment, gift, or donation of any property made to the school for any of the purposes of this
             158      part.
             159          (b) It is unlawful for any person affiliated with a charter school to demand or request
             160      any gift, donation, or contribution from a parent, teacher, employee, or other person affiliated
             161      with the charter school as a condition for employment or enrollment at the school or continued
             162      attendance at the school.
             163          Section 2. Section 53A-1a-513.5 is enacted to read:
             164          53A-1a-513.5. Charter school start-up costs.
             165          (1) (a) The State Charter School Board shall use money appropriated for charter school
             166      start-up costs to provide grants to charter schools to pay for expenses for the planning and
             167      implementation of a charter school.
             168          (b) The State Charter School Board may use up to 8% of the money appropriated for
             169      charter school start-up costs for financial monitoring of new charter schools and to provide
             170      professional development or technical assistance for governing board members and staff of
             171      new charter schools.
             172          (2) The amount of a grant for charter school start-up costs shall be based on the
             173      authorized enrollment of the charter school.
             174          (3) The State Board of Education shall make rules consistent with this section
             175      specifying:
             176          (a) procedures for applying for and awarding grants for charter school start-up costs;
             177          (b) permitted uses of grant money; and
             178          (c) requirements for a charter school to submit the following to the State Charter
             179      School Board:
             180          (i) a budget for the grant money; and
             181          (ii) a final report on the expenditure of the grant money.
             182          Section 3. Appropriation.


             183          Under the terms and conditions of Title 63J, Chapter 1, Budgetary Procedures Act, the
             184      following sums of money are appropriated from resources not otherwise appropriated, out of
             185      the funds or accounts indicated for the fiscal year beginning July 1, 2012 and ending June 30,
             186      2013. These are additions to any amounts previously appropriated for fiscal year 2013.
             187          To State Board of Education - State Charter School Board
             188              From Education Fund                        $2,500,000
             189              Schedule of Programs:                        
             190                  Charter School Start-up Costs        $2,500,000
             191          The Legislature intends that the appropriation under this section:
             192          (1) be used as provided in Section 53A-1a-513.5 ; and
             193          (2) not lapse at the end of fiscal year 2013.
             194          Section 4. Effective date.
             195          (1) Except as provided in Subsection (2), this bill takes effect on May 8, 2012.
             196          (2) Uncodified Section 3, Appropriation, takes effect on July 1, 2012.




Legislative Review Note
    as of 2-21-12 6:59 PM


Office of Legislative Research and General Counsel


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