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First Substitute S.B. 272

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 the number of 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:


             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] 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) The number of weighted 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:


             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) 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


             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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