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MINUTES OF HOUSE EDUCATION
STANDING COMMITTEE
Room 445, State Capitol
February 28, 2012

MEMBERS PRESENT:    Rep. Francis Gibson, Chair
        Rep. Bill Wright, Vice Chair
        Rep. Patrice Arent
        Rep. LaVar Christensen
        Rep. Becky Edwards
        Rep. Steven Eliason    
        Rep. John G. Mathis
        Rep. Kay L. McIff
        Rep. Carol Spackman Moss
        Rep. Merlynn Newbold
        Rep. Marie H. Poulson
        Rep. Kraig Powell
        
MEMBERS EXCUSED:    Rep. Greg H. Hughes
        Rep. Rebecca D. Lockhart

MEMBERS ABSENT:    Ken W. Sumsion            
            
STAFF PRESENT:    Constance C. Steffen, Policy Analyst
        Linda Service, Committee Secretary
        
Note: List of visitors and copy of handouts are filed with committee minutes.


Chair Gibson called the meeting to order at 8:10 a.m.

H.B. 156    Public Education Program Amendments (Rep. M. Newbold)

Rep. Newbold explained the bill eliminates public education programs and requirements.

Supt. Larry Shumway, Utah State Office of Education, addressed committee members' questions.

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

1.    Page 1, Lines 12 through 13 :    

             12          .    
{   eliminates the requirement to take a course in financial literacy to graduate from

             13      high school;  
}
  requires the State Board of Education to provide a general financial literacy test-out option;      


2.    Page 6, Lines 160 through 163 :    

             160          (a) use competency-based standards and assessments;
{   and   }

             161          
{   [   } (b) include instruction that stresses general financial literacy from basic budgeting to

             162      financial investments, including bankruptcy education
  and a general financial literacy test-out option       ; and      {   ]   }

             163          
{   [   } (c)      {   ]   }      {   (b)   } increase graduation requirements in language arts, mathematics, and science to

The motion passed unanimously with Rep. Christensen and Rep. Mathis absent for the vote.

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

    Delete lines 17, 29, 52, 232, and 239.

SUBSTITUTE MOTION:    Rep. Powell moved amend the bill as follows:

1.    Page 1, Line 17 :    

             17          
{   .    eliminates a requirement to assign a mentor to a provisional educator;   }


2.    Page 2, Lines 28 through 29 :    

             28              
{   .    the Quality Teaching Block Grant Program;

             29              .    the retirement and Social Security program;  
}


3.    Page 2, Line 52 :    

             52          
{   53A-10-108, as last amended by Laws of Utah 2009, Chapter 287   }


4.    Page 2, Lines 55 through 56 :    

             55          
{   53A-17a-124, as last amended by Laws of Utah 2010, Chapter 3

             56          53A-17a-125, as last amended by Laws of Utah 2010, Chapter 3  
}


5.    Page 8, Line 232 :    

             232          
{   Section 53A-10-108, Mentor for provisional educator.   }


6.    Page 8, Lines 237 through 239 :    

             237          
{   Section 53A-17a-124, Quality Teaching Block Grant Program -- State


             238
     contributions.
             239          Section 53A-17a-125, Appropriation for retirement and Social Security.  
}


The motion passed with Rep. Eliason, Rep. Newbold, Rep. Gibson, and Rep. Wright voting in opposition. Rep. Christensen was absent for the vote.

MOTION: Rep. Arent moved to pass the bill out as amended with a favorable recommendation. The motion passed unanimously. Rep. Christensen was absent for the vote.

H.B. 392    Charter School Funding Revisions (Rep. S. Sandstrom)

Rep. Sandstrom introduced the bill which modifies provisions pertaining to funding for charter schools.

Ms. Patti Harrington, representing the Utah School Boards Association, Utah School Superintendents Association, and School Business Officials Association, spoke in support of the bill.

The following commented on the bill:
    Supt. Larry Shumway, Utah State Office of Education
    Mr. Peter Cannon, citizen

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

1.    Page 1, Lines 12 through 13 :    

             12          
{   .    modifies a school district's contribution of school district revenues for charter

             13      school students; and  
}


2.    Page 1, Line 22 :    

             22          
{   53A-1a-513, as last amended by Laws of Utah 2011, Chapter 371   }


3.    Page 1, Line 26 through Page 6, Line 155 :    

             26          
{   Section 1. Section 53A-1a-513 is amended to read:

             27          53A-1a-513. Funding for charter schools.
             28          (1) As used in this section:
             29          (a) "Charter school students' average local revenues" means the amount determined as


             30      follows:
             31          (i) for each student enrolled in a charter school on the previous October 1, calculate the
             32      district per pupil local revenues of the school district in which the student resides;
             33          (ii) sum the district per pupil local revenues for each student enrolled in a charter
             34      school on the previous October 1; and
             35          (iii) divide the sum calculated under Subsection (1)(a)(ii) by the number of students
             36      enrolled in charter schools on the previous October 1.
             37          (b) "District local property tax revenues" means the sum of a school district's revenue
             38      received from the following levies:
             39          (i) (A) a voted levy imposed under Section 53A-17a-133 ;
             40          (B) a board levy imposed under Section 53A-17a-134 ;
             41          (C) a 10% of basic levy imposed under Section 53A-17a-145 ;
             42          (D) a tort liability levy imposed under Section 63G-7-704 ;
             43          (E) a capital outlay levy imposed under Section 53A-16-107 ; and
             44          (F) a voted capital outlay levy imposed under Section 53A-16-110 ; or
             45          (ii) (A) a voted local levy imposed under Section 53A-17a-133 ;
             46          (B) a board local levy imposed under Section 53A-17a-164 , excluding revenues
             47      expended for:
             48          (I) recreational facilities and activities authorized under Title 11, Chapter 2,
             49      Playgrounds;
             50          (II) pupil transportation, up to the amount of revenue generated by a .0003 per dollar of
             51      taxable value of the school district's board local levy; and
             52          (III) the K-3 Reading Improvement Program, up to the amount of revenue generated by
             53      a .000121 per dollar of taxable value of the school district's board local levy; and
             54          (C) a capital local levy imposed under Section 53A-16-113 .
             55          (c) "District per pupil local revenues" means an amount equal to the following, using
             56      data from the most recently published school district annual financial reports and state


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


             81          (ii) .9 for pupils in grades 1 through 6;
             82          (iii) .99 for pupils in grades 7 through 8; and
             83          (iv) 1.2 for pupils in grades 9 through 12.
             84          (4) (a) (i) A school district shall allocate a portion of school district revenues for each
             85      resident student of the school district who is enrolled in a charter school on October 1 equal to
             86      [25%] 20.6% of [the lesser of: (A)] district per pupil local revenues[; or].
             87          [(B) charter school students' average local revenues.]
             88          (ii) Nothing in this Subsection (4)(a) affects the school bond guarantee program
             89      established under Chapter 28, Utah School Bond Guaranty Act.
             90          (b) The State Board of Education shall:
             91          (i) deduct an amount equal to the allocation provided under Subsection (4)(a) from
             92      state funds the school district is authorized to receive under Chapter 17a, Minimum School
             93      Program Act; and
             94          [(ii) remit the money to the student's charter school.]
             95          (ii) use the money deducted under Subsection (4)(b)(i), together with money
             96      appropriated under Subsection (4)(d), to provide funds to charter schools in the amount of
             97      charter school students' average local revenues for each student enrolled in a charter school on
             98      October 1.
             99          (c) Notwithstanding the method used to transfer school district revenues to charter
             100      schools as provided in Subsection (4)(b), a school district may deduct the allocations to charter
             101      schools under this section from:
             102          (i) unrestricted revenues available to the school district; or
             103          (ii) the revenue sources listed in Subsection (1)(b) based on the portion of the
             104      allocations to charter schools attributed to each of the revenue sources listed in Subsection
             105      (1)(b).
             106          (d) (i) Subject to future budget constraints, the Legislature shall provide an


             107      appropriation for charter schools for each student enrolled on October 1 to supplement the
             108      allocation of school district revenues under Subsection (4)(a).
             109          (ii) Except as provided in Subsection (4)(d)(iii), the amount of money provided by the
             110      state for a charter school student shall be the sum of:
             111          (A) charter school students' average local revenues minus the allocation of school
             112      district revenues under Subsection (4)(a); and
             113          (B) statewide average debt service revenues.
             114          (iii) If the total of a school district's allocation for a charter school student under
             115      Subsection (4)(a) and the amount provided by the state under Subsection (4)(d)(ii) is less than
             116      $1427, the state shall provide an additional supplement so that a charter school receives at least
             117      $1427 per student under this Subsection (4).
             118          (iv) (A) If the appropriation provided under this Subsection (4)(d) is less than the
             119      amount prescribed by Subsection (4)(d)(ii) or (4)(d)(iii), the appropriation shall be allocated
             120      among charter schools in proportion to each charter school's enrollment as a percentage of the
             121      total enrollment in charter schools.
             122          (B) If the State Board of Education makes adjustments to Minimum School Program
             123      allocations as provided under Section 53A-17a-105 , the allocation provided in Subsection
             124      (4)(d)(iv)(A) shall be determined after adjustments are made under Section 53A-17a-105 .
             125          (e) Of the money provided to a charter school under this Subsection (4), 10% shall be
             126      expended for funding school facilities only.
             127          (5) Charter schools are eligible to receive federal funds if they meet all applicable


             128      federal requirements and comply with relevant federal regulations.
             129          (6) The State Board of Education shall distribute funds for charter school students
             130      directly to the charter school.
             131          (7) (a) Notwithstanding Subsection (3), a charter school is not eligible to receive state
             132      transportation funding.
             133          (b) The board shall also adopt rules relating to the transportation of students to and
             134      from charter schools, taking into account Sections 53A-2-210 and 53A-17a-127 .
             135          (c) The governing body of the charter school may provide transportation through an
136      agreement or contract with the local school board, a private provider, or with parents.
             137          (8) (a) (i) The state superintendent of public instruction may allocate grants for both
             138      start-up and ongoing costs to eligible charter school applicants from money appropriated for
             139      the implementation of this part.
             140          (ii) Applications for the grants shall be filed on a form determined by the state
             141      superintendent and in conjunction with the application for a charter.
             142          (iii) The amount of a grant may vary based upon the size, scope, and special
             143      circumstances of the charter school.
             144          (iv) The governing board of the charter school shall use the grant to meet the expenses
             145      of the school as established in the school's charter.
             146          (b) The State Board of Education shall coordinate the distribution of federal money
             147      appropriated to help fund costs for establishing and maintaining charter schools within the
             148      state.
             149          (9) (a) A charter school may receive, hold, manage and use any devise, bequest, grant,
             150      endowment, gift, or donation of any property made to the school for any of the purposes of this


             151      part.
             152          (b) It is unlawful for any person affiliated with a charter school to demand or request
             153      any gift, donation, or contribution from a parent, teacher, employee, or other person affiliated
             154      with the charter school as a condition for employment or enrollment at the school or continued
             155      attendance at the school.

4.    Page 7, Lines 199 through 200 :    

             199          This bill takes effect on
{   July 1, 2012, except the amendments in this bill to Section

             200      59-2-1317 take effect on  
}
January 1, 2013.

{       

The motion passed unanimously

MOTION:
Rep. Arent moved to pass the bill out as amended with a favorable recommendation. The motion passed unanimously.

H.B. 398    Allocation of School Trust Lands Funds (Rep. C. Herrod)

Rep. Herrod introduced the bill which modifies the formula for distributing school trust lands funds to school districts and charter schools.

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

1.    Page 1, Lines 16 through 18 :    

             16              .    
{   a   }        if a school district has an enrollment of fewer than 20,000 students, the       school      {   district may not lose more than $2   }        district's allocation       per student        may not be less       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.

2.    Page 3, Lines 59 through 63 :    

             59          (b) (i) The State Board of Education shall annually distribute funds to a school

district
             60      so that a school district

{   does not lose more than $2.00 per student   }        with an enrollment of fewer than 20,000 students does not receive less money per student       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.
The motion passed unanimously with Rep. Moss absent for the vote.

The following spoke in support of the bill:
    Ms. Kim Frank, Utah Charter Network
    Ms. Julie Adamic, charter schools
    Mr. Peter Cannon, citizen

The following spoke in opposition to the bill:
    Ms. Dawn Davies, Utah PTA
    Ms. Patti Harrington, Utah School Boards Association, Utah School          Superintendents Association, and School Business Officials Association.
    
MOTION: Rep. Newbold moved to place the bill in interim study. The motion passed with Rep. Gibson and Rep. Mathis voting in opposition. Rep. Christensen and Rep. Wright were absent for the vote.

H.B. 364    School District Financial Reporting Amendments (Rep. J. Dougall)

The Chair announced that H.B. 364 would be on the next agenda.

MOTION:    Rep. Poulson moved to adjourn. The motion passed unanimously. Chair Gibson adjourned the meeting at 9:28 a.m.





            ___________________________________
            Rep. Francis Gibson, Chair