First Substitute S.B. 272

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Senate 2nd & 3rd Reading Amendments 3-11-2013 lp/aos
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This document includes Senate 2nd and 3rd Reading Floor Amendments incorporated into the bill on Mon, Mar 11, 2013 at 5:28 PM by lpoole. --> Senator Curtis S. Bramble proposes the following substitute bill:

1 PUBLIC SCHOOL FUNDING AMENDMENTS
2 2013 GENERAL SESSION
3 STATE OF UTAH
4 Chief Sponsor: Curtis S. Bramble
5 House Sponsor: Bradley G. Last
6
7 LONG TITLE
8 General Description:
9 This bill modifies provisions relating to the funding of public schools.
10 Highlighted Provisions:
11 This bill:
12 . provides that S. , for the 2013-14 and 2014-15 school years, .S the number of
12a weighted pupil units assigned to a charter school for the
13 kindergarten and grades 1 through 12 programs of the Basic School Program shall
14 be based on the greater of the school's:
15 . October 1 enrollment in the current school year; or
16 . average daily membership in the prior school year plus growth.
17 Money Appropriated in this Bill:
18 None
19 Other Special Clauses:
20 None
21 Utah Code Sections Affected:
22 AMENDS:
23 53A-1a-513, as last amended by Laws of Utah 2012, Chapter 318
24
25 Be it enacted by the Legislature of the state of Utah:

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- 2 - 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

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Senate 2nd & 3rd Reading Amendments 3-11-2013 lp/aos
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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] Subsections (3)(b) and (3)(c), a charter
77 school shall receive state funds, as applicable, on the same basis as a school district receives
78 funds.
79 (b) S. [ The ] For the 2013-14 and 2014-15 school years, the .S number of weighted
79a pupil units assigned to a charter school for the
80 kindergarten and grades 1 through 12 programs of the Basic School Program shall be:
81 (i) based on the higher of:
82 (A) October 1 enrollment in the current school year; or
83 (B) average daily membership in the prior school year plus growth as determined under
84 Section 53A-17a-106 ; and
85 (ii) weighted as provided in Subsection (3)(c).
86 [(b)] (c) In distributing funds under Chapter 17a, Minimum School Program Act, to
87 charter schools, charter school pupils shall be weighted, where applicable, as follows:

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- 4 - 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.

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- 5 - 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) In accordance with Section 53A-1a-513.5 , the State Charter School Board
143 may allocate grants for start-up costs to charter schools from money appropriated for charter
144 school start-up costs.
145 (ii) The governing board of a charter school that receives money from a grant under
146 Section 53A-1a-513.5 shall use the grant for expenses for planning and implementation of the
147 charter school.
148 (b) The State Board of Education shall coordinate the distribution of federal money
149 appropriated to help fund costs for establishing and maintaining charter schools within the

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- 6 - 150 state.
151 (9) (a) A charter school may receive, hold, manage and use any devise, bequest, grant,
152 endowment, gift, or donation of any property made to the school for any of the purposes of this
153 part.
154 (b) It is unlawful for any person affiliated with a charter school to demand or request
155 any gift, donation, or contribution from a parent, teacher, employee, or other person affiliated
156 with the charter school as a condition for employment or enrollment at the school or continued
157 attendance at the school.

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