H.B. 419

This document includes House Committee Amendments incorporated into the bill on Wed, Mar 5, 2014 at 12:37 PM by jeyring. -->              1     

CHARTER SCHOOL REVISIONS

             2     
2014 GENERAL SESSION

             3     
STATE OF UTAH

             4     
Chief Sponsor: Steve Eliason

             5     
Senate Sponsor: Howard A. Stephenson

             6     
             7      LONG TITLE
             8      General Description:
             9          This bill modifies provisions related to charter schools.
             10      Highlighted Provisions:
             11          This bill:
             12          .    defines terms;
             13          .    establishes requirements for charter school applications;
             14          .    establishes requirements for charter school agreements;
             15          .    requires the State Charter School Board to establish certain requirements, processes,
             16      and standards relating to charter school applications submitted to the State Charter
             17      School Board;
             18          .    requires a board of trustees of a higher education institution to, before accepting a
             19      charter school application, establish certain requirements, processes, and standards
             20      relating to an application;
             21          .    requires a local school board to, before accepting a charter school application,
             22      establish certain requirements, processes, and standards relating to an application;
             23          .    requires a charter school to obtain attorney review of certain documents relating to
             24      the charter school's facilities or financing the charter school's facilities;
             25          .    allows another charter school to apply for assumption of operation of a charter
             26      school whose charter agreement is terminated;
             27          .    allows a proposed or authorized charter school to elect to participate in state


             28      retirement programs;
             29          .    allows a charter school to weight its lottery to give a slightly better chance of
             30      admission to educationally disadvantaged students; and
             31          .    makes technical changes.
             32      Money Appropriated in this Bill:
             33          None
             34      Other Special Clauses:
             35           H. [ None ] This bill coordinates with S.B. 171, Student-Centered Learning Pilot
             35a      Program, by providing technical amendments. .H
             36      Utah Code Sections Affected:
             37      AMENDS:
             38           10-9a-103 , as last amended by Laws of Utah 2013, Chapters 309 and 334
             39           11-36a-102 , as last amended by Laws of Utah 2013, Chapter 200
             40           17-27a-103 , as last amended by Laws of Utah 2013, Chapters 309, 334, and 476
             41           49-12-202 , as last amended by Laws of Utah 2009, Chapters 51 and 165
             42           49-13-202 , as last amended by Laws of Utah 2012, Chapter 298
             43           49-22-202 , as last amended by Laws of Utah 2012, Chapter 298
             44           52-4-209 , as last amended by Laws of Utah 2012, Chapter 403
             45           53A-1a-501.3 , as last amended by Laws of Utah 2013, Chapter 10
             46           53A-1a-501.6 , as last amended by Laws of Utah 2010, Chapter 353
             47           53A-1a-503.5 , as last amended by Laws of Utah 2008, Chapter 319
             48           53A-1a-505 , as last amended by Laws of Utah 2005, Chapter 291
             49           53A-1a-506 , as last amended by Laws of Utah 2013, Chapter 278
             50           53A-1a-506.5 , as last amended by Laws of Utah 2010, Chapter 162
             51           53A-1a-507 , as last amended by Laws of Utah 2011, Chapter 349
             52           53A-1a-509 , as last amended by Laws of Utah 2012, Chapter 201
             53           53A-1a-510 , as last amended by Laws of Utah 2012, Chapter 201
             54           53A-1a-510.5 , as enacted by Laws of Utah 2007, Chapter 344
             55           53A-1a-512 , as last amended by Laws of Utah 2012, Chapter 425
             56           53A-1a-514 , as last amended by Laws of Utah 2007, Chapter 344
             57           53A-1a-515 , as last amended by Laws of Utah 2010, Chapters 162 and 303
             58           53A-1a-517 , as enacted by Laws of Utah 2007, Chapter 344


             59           53A-1a-520 , as last amended by Laws of Utah 2010, Chapter 353
             60           53A-1a-521 , as last amended by Laws of Utah 2013, Chapter 239
             61           53A-20b-201 , as enacted by Laws of Utah 2012, Chapter 201
             62      REPEALS AND REENACTS:
             63           53A-1a-504 , as last amended by Laws of Utah 2007, Chapter 344
             64           53A-1a-508 , as last amended by Laws of Utah 2011, Chapter 349
             65     
             66      Be it enacted by the Legislature of the state of Utah:
             67          Section 1. Section 10-9a-103 is amended to read:
             68           10-9a-103. Definitions.
             69          As used in this chapter:
             70          (1) "Affected entity" means a county, municipality, local district, special service
             71      district under Title 17D, Chapter 1, Special Service District Act, school district, interlocal
             72      cooperation entity established under Title 11, Chapter 13, Interlocal Cooperation Act, specified
             73      public utility, property owner, property owners association, or the Utah Department of
             74      Transportation, if:
             75          (a) the entity's services or facilities are likely to require expansion or significant
             76      modification because of an intended use of land;
             77          (b) the entity has filed with the municipality a copy of the entity's general or long-range
             78      plan; or
             79          (c) the entity has filed with the municipality a request for notice during the same
             80      calendar year and before the municipality provides notice to an affected entity in compliance
             81      with a requirement imposed under this chapter.
             82          (2) "Appeal authority" means the person, board, commission, agency, or other body
             83      designated by ordinance to decide an appeal of a decision of a land use application or a
             84      variance.
             85          (3) "Billboard" means a freestanding ground sign located on industrial, commercial, or
             86      residential property if the sign is designed or intended to direct attention to a business, product,
             87      or service that is not sold, offered, or existing on the property where the sign is located.
             88          (4) (a) "Charter school" means:
             89          (i) an operating charter school;


             90          (ii) a charter school applicant that has its application approved by a [chartering entity]
             91      charter school authorizer in accordance with Title 53A, Chapter 1a, Part 5, The Utah Charter
             92      Schools Act; or
             93          (iii) an entity that is working on behalf of a charter school or approved charter
             94      applicant to develop or construct a charter school building.
             95          (b) "Charter school" does not include a therapeutic school.
             96          (5) "Conditional use" means a land use that, because of its unique characteristics or
             97      potential impact on the municipality, surrounding neighbors, or adjacent land uses, may not be
             98      compatible in some areas or may be compatible only if certain conditions are required that
             99      mitigate or eliminate the detrimental impacts.
             100          (6) "Constitutional taking" means a governmental action that results in a taking of
             101      private property so that compensation to the owner of the property is required by the:
             102          (a) Fifth or Fourteenth Amendment of the Constitution of the United States; or
             103          (b) Utah Constitution, Article I, Section 22.
             104          (7) "Culinary water authority" means the department, agency, or public entity with
             105      responsibility to review and approve the feasibility of the culinary water system and sources for
             106      the subject property.
             107          (8) "Development activity" means:
             108          (a) any construction or expansion of a building, structure, or use that creates additional
             109      demand and need for public facilities;
             110          (b) any change in use of a building or structure that creates additional demand and need
             111      for public facilities; or
             112          (c) any change in the use of land that creates additional demand and need for public
             113      facilities.
             114          (9) (a) "Disability" means a physical or mental impairment that substantially limits one
             115      or more of a person's major life activities, including a person having a record of such an
             116      impairment or being regarded as having such an impairment.
             117          (b) "Disability" does not include current illegal use of, or addiction to, any federally
             118      controlled substance, as defined in Section 102 of the Controlled Substances Act, 21 U.S.C.
             119      802.
             120          (10) "Educational facility":


             121          (a) means:
             122          (i) a school district's building at which pupils assemble to receive instruction in a
             123      program for any combination of grades from preschool through grade 12, including
             124      kindergarten and a program for children with disabilities;
             125          (ii) a structure or facility:
             126          (A) located on the same property as a building described in Subsection (10)(a)(i); and
             127          (B) used in support of the use of that building; and
             128          (iii) a building to provide office and related space to a school district's administrative
             129      personnel; and
             130          (b) does not include:
             131          (i) land or a structure, including land or a structure for inventory storage, equipment
             132      storage, food processing or preparing, vehicle storage or maintenance, or similar use that is:
             133          (A) not located on the same property as a building described in Subsection (10)(a)(i);
             134      and
             135          (B) used in support of the purposes of a building described in Subsection (10)(a)(i); or
             136          (ii) a therapeutic school.
             137          (11) "Fire authority" means the department, agency, or public entity with responsibility
             138      to review and approve the feasibility of fire protection and suppression services for the subject
             139      property.
             140          (12) "Flood plain" means land that:
             141          (a) is within the 100-year flood plain designated by the Federal Emergency
             142      Management Agency; or
             143          (b) has not been studied or designated by the Federal Emergency Management Agency
             144      but presents a likelihood of experiencing chronic flooding or a catastrophic flood event because
             145      the land has characteristics that are similar to those of a 100-year flood plain designated by the
             146      Federal Emergency Management Agency.
             147          (13) "General plan" means a document that a municipality adopts that sets forth general
             148      guidelines for proposed future development of the land within the municipality.
             149          (14) "Geologic hazard" means:
             150          (a) a surface fault rupture;
             151          (b) shallow groundwater;


             152          (c) liquefaction;
             153          (d) a landslide;
             154          (e) a debris flow;
             155          (f) unstable soil;
             156          (g) a rock fall; or
             157          (h) any other geologic condition that presents a risk:
             158          (i) to life;
             159          (ii) of substantial loss of real property; or
             160          (iii) of substantial damage to real property.
             161          (15) "Hookup fee" means a fee for the installation and inspection of any pipe, line,
             162      meter, or appurtenance that connects to a municipal water, sewer, storm water, power, or other
             163      utility system.
             164          (16) "Identical plans" means building plans submitted to a municipality that:
             165          (a) are clearly marked as "identical plans";
             166          (b) are substantially identical to building plans that were previously submitted to and
             167      reviewed and approved by the municipality; and
             168          (c) describe a building that:
             169          (i) is located on land zoned the same as the land on which the building described in the
             170      previously approved plans is located;
             171          (ii) is subject to the same geological and meteorological conditions and the same law
             172      as the building described in the previously approved plans;
             173          (iii) has a floor plan identical to the building plan previously submitted to and reviewed
             174      and approved by the municipality; and
             175          (iv) does not require any additional engineering or analysis.
             176          (17) "Impact fee" means a payment of money imposed under Title 11, Chapter 36a,
             177      Impact Fees Act.
             178          (18) "Improvement completion assurance" means a surety bond, letter of credit, cash,
             179      or other security required by a municipality to guaranty the proper completion of landscaping
             180      or infrastructure that the land use authority has required as a condition precedent to:
             181          (a) recording a subdivision plat; or
             182          (b) beginning development activity.


             183          (19) "Improvement warranty" means an applicant's unconditional warranty that the
             184      accepted landscaping or infrastructure:
             185          (a) complies with the municipality's written standards for design, materials, and
             186      workmanship; and
             187          (b) will not fail in any material respect, as a result of poor workmanship or materials,
             188      within the improvement warranty period.
             189          (20) "Improvement warranty period" means a period:
             190          (a) no later than one year after a municipality's acceptance of required landscaping; or
             191          (b) no later than one year after a municipality's acceptance of required infrastructure,
             192      unless the municipality:
             193          (i) determines for good cause that a one-year period would be inadequate to protect the
             194      public health, safety, and welfare; and
             195          (ii) has substantial evidence, on record:
             196          (A) of prior poor performance by the applicant; or
             197          (B) that the area upon which the infrastructure will be constructed contains suspect soil
             198      and the municipality has not otherwise required the applicant to mitigate the suspect soil.
             199          (21) "Internal lot restriction" means a platted note, platted demarcation, or platted
             200      designation that:
             201          (a) runs with the land; and
             202          (b) (i) creates a restriction that is enclosed within the perimeter of a lot described on
             203      the plat; or
             204          (ii) designates a development condition that is enclosed within the perimeter of a lot
             205      described on the plat.
             206          (22) "Land use application" means an application required by a municipality's land use
             207      ordinance.
             208          (23) "Land use authority" means a person, board, commission, agency, or other body
             209      designated by the local legislative body to act upon a land use application.
             210          (24) "Land use ordinance" means a planning, zoning, development, or subdivision
             211      ordinance of the municipality, but does not include the general plan.
             212          (25) "Land use permit" means a permit issued by a land use authority.
             213          (26) "Legislative body" means the municipal council.


             214          (27) "Local district" means an entity under Title 17B, Limited Purpose Local
             215      Government Entities - Local Districts, and any other governmental or quasi-governmental
             216      entity that is not a county, municipality, school district, or the state.
             217          (28) "Lot line adjustment" means the relocation of the property boundary line in a
             218      subdivision between two adjoining lots with the consent of the owners of record.
             219          (29) "Moderate income housing" means housing occupied or reserved for occupancy
             220      by households with a gross household income equal to or less than 80% of the median gross
             221      income for households of the same size in the county in which the city is located.
             222          (30) "Nominal fee" means a fee that reasonably reimburses a municipality only for time
             223      spent and expenses incurred in:
             224          (a) verifying that building plans are identical plans; and
             225          (b) reviewing and approving those minor aspects of identical plans that differ from the
             226      previously reviewed and approved building plans.
             227          (31) "Noncomplying structure" means a structure that:
             228          (a) legally existed before its current land use designation; and
             229          (b) because of one or more subsequent land use ordinance changes, does not conform
             230      to the setback, height restrictions, or other regulations, excluding those regulations, which
             231      govern the use of land.
             232          (32) "Nonconforming use" means a use of land that:
             233          (a) legally existed before its current land use designation;
             234          (b) has been maintained continuously since the time the land use ordinance governing
             235      the land changed; and
             236          (c) because of one or more subsequent land use ordinance changes, does not conform
             237      to the regulations that now govern the use of the land.
             238          (33) "Official map" means a map drawn by municipal authorities and recorded in a
             239      county recorder's office that:
             240          (a) shows actual and proposed rights-of-way, centerline alignments, and setbacks for
             241      highways and other transportation facilities;
             242          (b) provides a basis for restricting development in designated rights-of-way or between
             243      designated setbacks to allow the government authorities time to purchase or otherwise reserve
             244      the land; and


             245          (c) has been adopted as an element of the municipality's general plan.
             246          (34) "Parcel boundary adjustment" means a recorded agreement between owners of
             247      adjoining properties adjusting their mutual boundary if:
             248          (a) no additional parcel is created; and
             249          (b) each property identified in the agreement is unsubdivided land, including a
             250      remainder of subdivided land.
             251          (35) "Person" means an individual, corporation, partnership, organization, association,
             252      trust, governmental agency, or any other legal entity.
             253          (36) "Plan for moderate income housing" means a written document adopted by a city
             254      legislative body that includes:
             255          (a) an estimate of the existing supply of moderate income housing located within the
             256      city;
             257          (b) an estimate of the need for moderate income housing in the city for the next five
             258      years as revised biennially;
             259          (c) a survey of total residential land use;
             260          (d) an evaluation of how existing land uses and zones affect opportunities for moderate
             261      income housing; and
             262          (e) a description of the city's program to encourage an adequate supply of moderate
             263      income housing.
             264          (37) "Plat" means a map or other graphical representation of lands being laid out and
             265      prepared in accordance with Section 10-9a-603 , 17-23-17 , or 57-8-13 .
             266          (38) "Potential geologic hazard area" means an area that:
             267          (a) is designated by a Utah Geological Survey map, county geologist map, or other
             268      relevant map or report as needing further study to determine the area's potential for geologic
             269      hazard; or
             270          (b) has not been studied by the Utah Geological Survey or a county geologist but
             271      presents the potential of geologic hazard because the area has characteristics similar to those of
             272      a designated geologic hazard area.
             273          (39) "Public agency" means:
             274          (a) the federal government;
             275          (b) the state;


             276          (c) a county, municipality, school district, local district, special service district, or other
             277      political subdivision of the state; or
             278          (d) a charter school.
             279          (40) "Public hearing" means a hearing at which members of the public are provided a
             280      reasonable opportunity to comment on the subject of the hearing.
             281          (41) "Public meeting" means a meeting that is required to be open to the public under
             282      Title 52, Chapter 4, Open and Public Meetings Act.
             283          (42) "Receiving zone" means an area of a municipality that the municipality
             284      designates, by ordinance, as an area in which an owner of land may receive a transferable
             285      development right.
             286          (43) "Record of survey map" means a map of a survey of land prepared in accordance
             287      with Section 17-23-17 .
             288          (44) "Residential facility for persons with a disability" means a residence:
             289          (a) in which more than one person with a disability resides; and
             290          (b) (i) which is licensed or certified by the Department of Human Services under Title
             291      62A, Chapter 2, Licensure of Programs and Facilities; or
             292          (ii) which is licensed or certified by the Department of Health under Title 26, Chapter
             293      21, Health Care Facility Licensing and Inspection Act.
             294          (45) "Rules of order and procedure" means a set of rules that govern and prescribe in a
             295      public meeting:
             296          (a) parliamentary order and procedure;
             297          (b) ethical behavior; and
             298          (c) civil discourse.
             299          (46) "Sanitary sewer authority" means the department, agency, or public entity with
             300      responsibility to review and approve the feasibility of sanitary sewer services or onsite
             301      wastewater systems.
             302          (47) "Sending zone" means an area of a municipality that the municipality designates,
             303      by ordinance, as an area from which an owner of land may transfer a transferable development
             304      right.
             305          (48) "Specified public agency" means:
             306          (a) the state;


             307          (b) a school district; or
             308          (c) a charter school.
             309          (49) "Specified public utility" means an electrical corporation, gas corporation, or
             310      telephone corporation, as those terms are defined in Section 54-2-1 .
             311          (50) "State" includes any department, division, or agency of the state.
             312          (51) "Street" means a public right-of-way, including a highway, avenue, boulevard,
             313      parkway, road, lane, walk, alley, viaduct, subway, tunnel, bridge, public easement, or other
             314      way.
             315          (52) (a) "Subdivision" means any land that is divided, resubdivided or proposed to be
             316      divided into two or more lots, parcels, sites, units, plots, or other division of land for the
             317      purpose, whether immediate or future, for offer, sale, lease, or development either on the
             318      installment plan or upon any and all other plans, terms, and conditions.
             319          (b) "Subdivision" includes:
             320          (i) the division or development of land whether by deed, metes and bounds description,
             321      devise and testacy, map, plat, or other recorded instrument; and
             322          (ii) except as provided in Subsection (52)(c), divisions of land for residential and
             323      nonresidential uses, including land used or to be used for commercial, agricultural, and
             324      industrial purposes.
             325          (c) "Subdivision" does not include:
             326          (i) a bona fide division or partition of agricultural land for the purpose of joining one of
             327      the resulting separate parcels to a contiguous parcel of unsubdivided agricultural land, if
             328      neither the resulting combined parcel nor the parcel remaining from the division or partition
             329      violates an applicable land use ordinance;
             330          (ii) a recorded agreement between owners of adjoining unsubdivided properties
             331      adjusting their mutual boundary if:
             332          (A) no new lot is created; and
             333          (B) the adjustment does not violate applicable land use ordinances;
             334          (iii) a recorded document, executed by the owner of record:
             335          (A) revising the legal description of more than one contiguous unsubdivided parcel of
             336      property into one legal description encompassing all such parcels of property; or
             337          (B) joining a subdivided parcel of property to another parcel of property that has not


             338      been subdivided, if the joinder does not violate applicable land use ordinances;
             339          (iv) a recorded agreement between owners of adjoining subdivided properties adjusting
             340      their mutual boundary if:
             341          (A) no new dwelling lot or housing unit will result from the adjustment; and
             342          (B) the adjustment will not violate any applicable land use ordinance;
             343          (v) a bona fide division or partition of land by deed or other instrument where the land
             344      use authority expressly approves in writing the division in anticipation of further land use
             345      approvals on the parcel or parcels; or
             346          (vi) a parcel boundary adjustment.
             347          (d) The joining of a subdivided parcel of property to another parcel of property that has
             348      not been subdivided does not constitute a subdivision under this Subsection (52) as to the
             349      unsubdivided parcel of property or subject the unsubdivided parcel to the municipality's
             350      subdivision ordinance.
             351          (53) "Suspect soil" means soil that has:
             352          (a) a high susceptibility for volumetric change, typically clay rich, having more than a
             353      3% swell potential;
             354          (b) bedrock units with high shrink or swell susceptibility; or
             355          (c) gypsiferous silt and clay, gypsum, or bedrock units containing abundant gypsum
             356      commonly associated with dissolution and collapse features.
             357          (54) "Therapeutic school" means a residential group living facility:
             358          (a) for four or more individuals who are not related to:
             359          (i) the owner of the facility; or
             360          (ii) the primary service provider of the facility;
             361          (b) that serves students who have a history of failing to function:
             362          (i) at home;
             363          (ii) in a public school; or
             364          (iii) in a nonresidential private school; and
             365          (c) that offers:
             366          (i) room and board; and
             367          (ii) an academic education integrated with:
             368          (A) specialized structure and supervision; or


             369          (B) services or treatment related to a disability, an emotional development, a
             370      behavioral development, a familial development, or a social development.
             371          (55) "Transferable development right" means a right to develop and use land that
             372      originates by an ordinance that authorizes a land owner in a designated sending zone to transfer
             373      land use rights from a designated sending zone to a designated receiving zone.
             374          (56) "Unincorporated" means the area outside of the incorporated area of a city or
             375      town.
             376          (57) "Water interest" means any right to the beneficial use of water, including:
             377          (a) each of the rights listed in Section 73-1-11 ; and
             378          (b) an ownership interest in the right to the beneficial use of water represented by:
             379          (i) a contract; or
             380          (ii) a share in a water company, as defined in Section 73-3-3.5 .
             381          (58) "Zoning map" means a map, adopted as part of a land use ordinance, that depicts
             382      land use zones, overlays, or districts.
             383          Section 2. Section 11-36a-102 is amended to read:
             384           11-36a-102. Definitions.
             385          As used in this chapter:
             386          (1) (a) "Affected entity" means each county, municipality, local district under Title
             387      17B, Limited Purpose Local Government Entities - Local Districts, special service district
             388      under Title 17D, Chapter 1, Special Service District Act, school district, interlocal cooperation
             389      entity established under Chapter 13, Interlocal Cooperation Act, and specified public utility:
             390          (i) whose services or facilities are likely to require expansion or significant
             391      modification because of the facilities proposed in the proposed impact fee facilities plan; or
             392          (ii) that has filed with the local political subdivision or private entity a copy of the
             393      general or long-range plan of the county, municipality, local district, special service district,
             394      school district, interlocal cooperation entity, or specified public utility.
             395          (b) "Affected entity" does not include the local political subdivision or private entity
             396      that is required under Section 11-36a-501 to provide notice.
             397          (2) "Charter school" includes:
             398          (a) an operating charter school;
             399          (b) an applicant for a charter school whose application has been approved by a


             400      [chartering entity] charter school authorizer as provided in Title 53A, Chapter 1a, Part 5, The
             401      Utah Charter Schools Act; and
             402          (c) an entity that is working on behalf of a charter school or approved charter applicant
             403      to develop or construct a charter school building.
             404          (3) "Development activity" means any construction or expansion of a building,
             405      structure, or use, any change in use of a building or structure, or any changes in the use of land
             406      that creates additional demand and need for public facilities.
             407          (4) "Development approval" means:
             408          (a) except as provided in Subsection (4)(b), any written authorization from a local
             409      political subdivision that authorizes the commencement of development activity;
             410          (b) development activity, for a public entity that may develop without written
             411      authorization from a local political subdivision;
             412          (c) a written authorization from a public water supplier, as defined in Section 73-1-4 ,
             413      or a private water company:
             414          (i) to reserve or provide:
             415          (A) a water right;
             416          (B) a system capacity; or
             417          (C) a distribution facility; or
             418          (ii) to deliver for a development activity:
             419          (A) culinary water; or
             420          (B) irrigation water; or
             421          (d) a written authorization from a sanitary sewer authority, as defined in Section
             422      10-9a-103 :
             423          (i) to reserve or provide:
             424          (A) sewer collection capacity; or
             425          (B) treatment capacity; or
             426          (ii) to provide sewer service for a development activity.
             427          (5) "Enactment" means:
             428          (a) a municipal ordinance, for a municipality;
             429          (b) a county ordinance, for a county; and
             430          (c) a governing board resolution, for a local district, special service district, or private


             431      entity.
             432          (6) "Encumber" means:
             433          (a) a pledge to retire a debt; or
             434          (b) an allocation to a current purchase order or contract.
             435          (7) "Hookup fee" means a fee for the installation and inspection of any pipe, line,
             436      meter, or appurtenance to connect to a gas, water, sewer, storm water, power, or other utility
             437      system of a municipality, county, local district, special service district, or private entity.
             438          (8) (a) "Impact fee" means a payment of money imposed upon new development
             439      activity as a condition of development approval to mitigate the impact of the new development
             440      on public infrastructure.
             441          (b) "Impact fee" does not mean a tax, a special assessment, a building permit fee, a
             442      hookup fee, a fee for project improvements, or other reasonable permit or application fee.
             443          (9) "Impact fee analysis" means the written analysis of each impact fee required by
             444      Section 11-36a-303 .
             445          (10) "Impact fee facilities plan" means the plan required by Section 11-36a-301 .
             446          (11) "Level of service" means the defined performance standard or unit of demand for
             447      each capital component of a public facility within a service area.
             448          (12) (a) "Local political subdivision" means a county, a municipality, a local district
             449      under Title 17B, Limited Purpose Local Government Entities - Local Districts, or a special
             450      service district under Title 17D, Chapter 1, Special Service District Act.
             451          (b) "Local political subdivision" does not mean a school district, whose impact fee
             452      activity is governed by Section 53A-20-100.5 .
             453          (13) "Private entity" means an entity in private ownership with at least 100 individual
             454      shareholders, customers, or connections, that is located in a first, second, third, or fourth class
             455      county and provides water to an applicant for development approval who is required to obtain
             456      water from the private entity either as a:
             457          (a) specific condition of development approval by a local political subdivision acting
             458      pursuant to a prior agreement, whether written or unwritten, with the private entity; or
             459          (b) functional condition of development approval because the private entity:
             460          (i) has no reasonably equivalent competition in the immediate market; and
             461          (ii) is the only realistic source of water for the applicant's development.


             462          (14) (a) "Project improvements" means site improvements and facilities that are:
             463          (i) planned and designed to provide service for development resulting from a
             464      development activity;
             465          (ii) necessary for the use and convenience of the occupants or users of development
             466      resulting from a development activity; and
             467          (iii) not identified or reimbursed as a system improvement.
             468          (b) "Project improvements" does not mean system improvements.
             469          (15) "Proportionate share" means the cost of public facility improvements that are
             470      roughly proportionate and reasonably related to the service demands and needs of any
             471      development activity.
             472          (16) "Public facilities" means only the following impact fee facilities that have a life
             473      expectancy of 10 or more years and are owned or operated by or on behalf of a local political
             474      subdivision or private entity:
             475          (a) water rights and water supply, treatment, storage, and distribution facilities;
             476          (b) wastewater collection and treatment facilities;
             477          (c) storm water, drainage, and flood control facilities;
             478          (d) municipal power facilities;
             479          (e) roadway facilities;
             480          (f) parks, recreation facilities, open space, and trails;
             481          (g) public safety facilities; or
             482          (h) environmental mitigation as provided in Section 11-36a-205 .
             483          (17) (a) "Public safety facility" means:
             484          (i) a building constructed or leased to house police, fire, or other public safety entities;
             485      or
             486          (ii) a fire suppression vehicle costing in excess of $500,000.
             487          (b) "Public safety facility" does not mean a jail, prison, or other place of involuntary
             488      incarceration.
             489          (18) (a) "Roadway facilities" means a street or road that has been designated on an
             490      officially adopted subdivision plat, roadway plan, or general plan of a political subdivision,
             491      together with all necessary appurtenances.
             492          (b) "Roadway facilities" includes associated improvements to a federal or state


             493      roadway only when the associated improvements:
             494          (i) are necessitated by the new development; and
             495          (ii) are not funded by the state or federal government.
             496          (c) "Roadway facilities" does not mean federal or state roadways.
             497          (19) (a) "Service area" means a geographic area designated by an entity that imposes an
             498      impact fee on the basis of sound planning or engineering principles in which a public facility,
             499      or a defined set of public facilities, provides service within the area.
             500          (b) "Service area" may include the entire local political subdivision or an entire area
             501      served by a private entity.
             502          (20) "Specified public agency" means:
             503          (a) the state;
             504          (b) a school district; or
             505          (c) a charter school.
             506          (21) (a) "System improvements" means:
             507          (i) existing public facilities that are:
             508          (A) identified in the impact fee analysis under Section 11-36a-304 ; and
             509          (B) designed to provide services to service areas within the community at large; and
             510          (ii) future public facilities identified in the impact fee analysis under Section
             511      11-36a-304 that are intended to provide services to service areas within the community at large.
             512          (b) "System improvements" does not mean project improvements.
             513          Section 3. Section 17-27a-103 is amended to read:
             514           17-27a-103. Definitions.
             515          As used in this chapter:
             516          (1) "Affected entity" means a county, municipality, local district, special service
             517      district under Title 17D, Chapter 1, Special Service District Act, school district, interlocal
             518      cooperation entity established under Title 11, Chapter 13, Interlocal Cooperation Act, specified
             519      property owner, property owners association, public utility, or the Utah Department of
             520      Transportation, if:
             521          (a) the entity's services or facilities are likely to require expansion or significant
             522      modification because of an intended use of land;
             523          (b) the entity has filed with the county a copy of the entity's general or long-range plan;


             524      or
             525          (c) the entity has filed with the county a request for notice during the same calendar
             526      year and before the county provides notice to an affected entity in compliance with a
             527      requirement imposed under this chapter.
             528          (2) "Appeal authority" means the person, board, commission, agency, or other body
             529      designated by ordinance to decide an appeal of a decision of a land use application or a
             530      variance.
             531          (3) "Billboard" means a freestanding ground sign located on industrial, commercial, or
             532      residential property if the sign is designed or intended to direct attention to a business, product,
             533      or service that is not sold, offered, or existing on the property where the sign is located.
             534          (4) (a) "Charter school" means:
             535          (i) an operating charter school;
             536          (ii) a charter school applicant that has its application approved by a [chartering entity]
             537      charter school authorizer in accordance with Title 53A, Chapter 1a, Part 5, The Utah Charter
             538      Schools Act; or
             539          (iii) an entity that is working on behalf of a charter school or approved charter
             540      applicant to develop or construct a charter school building.
             541          (b) "Charter school" does not include a therapeutic school.
             542          (5) "Chief executive officer" means the person or body that exercises the executive
             543      powers of the county.
             544          (6) "Conditional use" means a land use that, because of its unique characteristics or
             545      potential impact on the county, surrounding neighbors, or adjacent land uses, may not be
             546      compatible in some areas or may be compatible only if certain conditions are required that
             547      mitigate or eliminate the detrimental impacts.
             548          (7) "Constitutional taking" means a governmental action that results in a taking of
             549      private property so that compensation to the owner of the property is required by the:
             550          (a) Fifth or Fourteenth Amendment of the Constitution of the United States; or
             551          (b) Utah Constitution, Article I, Section 22.
             552          (8) "Culinary water authority" means the department, agency, or public entity with
             553      responsibility to review and approve the feasibility of the culinary water system and sources for
             554      the subject property.


             555          (9) "Development activity" means:
             556          (a) any construction or expansion of a building, structure, or use that creates additional
             557      demand and need for public facilities;
             558          (b) any change in use of a building or structure that creates additional demand and need
             559      for public facilities; or
             560          (c) any change in the use of land that creates additional demand and need for public
             561      facilities.
             562          (10) (a) "Disability" means a physical or mental impairment that substantially limits
             563      one or more of a person's major life activities, including a person having a record of such an
             564      impairment or being regarded as having such an impairment.
             565          (b) "Disability" does not include current illegal use of, or addiction to, any federally
             566      controlled substance, as defined in Section 102 of the Controlled Substances Act, 21 U.S.C.
             567      802.
             568          (11) "Educational facility":
             569          (a) means:
             570          (i) a school district's building at which pupils assemble to receive instruction in a
             571      program for any combination of grades from preschool through grade 12, including
             572      kindergarten and a program for children with disabilities;
             573          (ii) a structure or facility:
             574          (A) located on the same property as a building described in Subsection (11)(a)(i); and
             575          (B) used in support of the use of that building; and
             576          (iii) a building to provide office and related space to a school district's administrative
             577      personnel; and
             578          (b) does not include:
             579          (i) land or a structure, including land or a structure for inventory storage, equipment
             580      storage, food processing or preparing, vehicle storage or maintenance, or similar use that is:
             581          (A) not located on the same property as a building described in Subsection (11)(a)(i);
             582      and
             583          (B) used in support of the purposes of a building described in Subsection (11)(a)(i); or
             584          (ii) a therapeutic school.
             585          (12) "Fire authority" means the department, agency, or public entity with responsibility


             586      to review and approve the feasibility of fire protection and suppression services for the subject
             587      property.
             588          (13) "Flood plain" means land that:
             589          (a) is within the 100-year flood plain designated by the Federal Emergency
             590      Management Agency; or
             591          (b) has not been studied or designated by the Federal Emergency Management Agency
             592      but presents a likelihood of experiencing chronic flooding or a catastrophic flood event because
             593      the land has characteristics that are similar to those of a 100-year flood plain designated by the
             594      Federal Emergency Management Agency.
             595          (14) "Gas corporation" has the same meaning as defined in Section 54-2-1 .
             596          (15) "General plan" means a document that a county adopts that sets forth general
             597      guidelines for proposed future development of the unincorporated land within the county.
             598          (16) "Geologic hazard" means:
             599          (a) a surface fault rupture;
             600          (b) shallow groundwater;
             601          (c) liquefaction;
             602          (d) a landslide;
             603          (e) a debris flow;
             604          (f) unstable soil;
             605          (g) a rock fall; or
             606          (h) any other geologic condition that presents a risk:
             607          (i) to life;
             608          (ii) of substantial loss of real property; or
             609          (iii) of substantial damage to real property.
             610          (17) "Internal lot restriction" means a platted note, platted demarcation, or platted
             611      designation that:
             612          (a) runs with the land; and
             613          (b) (i) creates a restriction that is enclosed within the perimeter of a lot described on
             614      the plat; or
             615          (ii) designates a development condition that is enclosed within the perimeter of a lot
             616      described on the plat.


             617          (18) "Hookup fee" means a fee for the installation and inspection of any pipe, line,
             618      meter, or appurtenance to connect to a county water, sewer, storm water, power, or other utility
             619      system.
             620          (19) "Identical plans" means building plans submitted to a county that:
             621          (a) are clearly marked as "identical plans";
             622          (b) are substantially identical building plans that were previously submitted to and
             623      reviewed and approved by the county; and
             624          (c) describe a building that:
             625          (i) is located on land zoned the same as the land on which the building described in the
             626      previously approved plans is located;
             627          (ii) is subject to the same geological and meteorological conditions and the same law
             628      as the building described in the previously approved plans;
             629          (iii) has a floor plan identical to the building plan previously submitted to and reviewed
             630      and approved by the county; and
             631          (iv) does not require any additional engineering or analysis.
             632          (20) "Impact fee" means a payment of money imposed under Title 11, Chapter 36a,
             633      Impact Fees Act.
             634          (21) "Improvement completion assurance" means a surety bond, letter of credit, cash,
             635      or other security required by a county to guaranty the proper completion of landscaping or
             636      infrastructure that the land use authority has required as a condition precedent to:
             637          (a) recording a subdivision plat; or
             638          (b) beginning development activity.
             639          (22) "Improvement warranty" means an applicant's unconditional warranty that the
             640      accepted landscaping or infrastructure:
             641          (a) complies with the county's written standards for design, materials, and
             642      workmanship; and
             643          (b) will not fail in any material respect, as a result of poor workmanship or materials,
             644      within the improvement warranty period.
             645          (23) "Improvement warranty period" means a period:
             646          (a) no later than one year after a county's acceptance of required landscaping; or
             647          (b) no later than one year after a county's acceptance of required infrastructure, unless


             648      the county:
             649          (i) determines for good cause that a one-year period would be inadequate to protect the
             650      public health, safety, and welfare; and
             651          (ii) has substantial evidence, on record:
             652          (A) of prior poor performance by the applicant; or
             653          (B) that the area upon which the infrastructure will be constructed contains suspect soil
             654      and the county has not otherwise required the applicant to mitigate the suspect soil.
             655          (24) "Interstate pipeline company" means a person or entity engaged in natural gas
             656      transportation subject to the jurisdiction of the Federal Energy Regulatory Commission under
             657      the Natural Gas Act, 15 U.S.C. Sec. 717 et seq.
             658          (25) "Intrastate pipeline company" means a person or entity engaged in natural gas
             659      transportation that is not subject to the jurisdiction of the Federal Energy Regulatory
             660      Commission under the Natural Gas Act, 15 U.S.C. Sec. 717 et seq.
             661          (26) "Land use application" means an application required by a county's land use
             662      ordinance.
             663          (27) "Land use authority" means a person, board, commission, agency, or other body
             664      designated by the local legislative body to act upon a land use application.
             665          (28) "Land use ordinance" means a planning, zoning, development, or subdivision
             666      ordinance of the county, but does not include the general plan.
             667          (29) "Land use permit" means a permit issued by a land use authority.
             668          (30) "Legislative body" means the county legislative body, or for a county that has
             669      adopted an alternative form of government, the body exercising legislative powers.
             670          (31) "Local district" means any entity under Title 17B, Limited Purpose Local
             671      Government Entities - Local Districts, and any other governmental or quasi-governmental
             672      entity that is not a county, municipality, school district, or the state.
             673          (32) "Lot line adjustment" means the relocation of the property boundary line in a
             674      subdivision between two adjoining lots with the consent of the owners of record.
             675          (33) "Moderate income housing" means housing occupied or reserved for occupancy
             676      by households with a gross household income equal to or less than 80% of the median gross
             677      income for households of the same size in the county in which the housing is located.
             678          (34) "Nominal fee" means a fee that reasonably reimburses a county only for time spent


             679      and expenses incurred in:
             680          (a) verifying that building plans are identical plans; and
             681          (b) reviewing and approving those minor aspects of identical plans that differ from the
             682      previously reviewed and approved building plans.
             683          (35) "Noncomplying structure" means a structure that:
             684          (a) legally existed before its current land use designation; and
             685          (b) because of one or more subsequent land use ordinance changes, does not conform
             686      to the setback, height restrictions, or other regulations, excluding those regulations that govern
             687      the use of land.
             688          (36) "Nonconforming use" means a use of land that:
             689          (a) legally existed before its current land use designation;
             690          (b) has been maintained continuously since the time the land use ordinance regulation
             691      governing the land changed; and
             692          (c) because of one or more subsequent land use ordinance changes, does not conform
             693      to the regulations that now govern the use of the land.
             694          (37) "Official map" means a map drawn by county authorities and recorded in the
             695      county recorder's office that:
             696          (a) shows actual and proposed rights-of-way, centerline alignments, and setbacks for
             697      highways and other transportation facilities;
             698          (b) provides a basis for restricting development in designated rights-of-way or between
             699      designated setbacks to allow the government authorities time to purchase or otherwise reserve
             700      the land; and
             701          (c) has been adopted as an element of the county's general plan.
             702          (38) "Parcel boundary adjustment" means a recorded agreement between owners of
             703      adjoining properties adjusting their mutual boundary if:
             704          (a) no additional parcel is created; and
             705          (b) each property identified in the agreement is unsubdivided land, including a
             706      remainder of subdivided land.
             707          (39) "Person" means an individual, corporation, partnership, organization, association,
             708      trust, governmental agency, or any other legal entity.
             709          (40) "Plan for moderate income housing" means a written document adopted by a


             710      county legislative body that includes:
             711          (a) an estimate of the existing supply of moderate income housing located within the
             712      county;
             713          (b) an estimate of the need for moderate income housing in the county for the next five
             714      years as revised biennially;
             715          (c) a survey of total residential land use;
             716          (d) an evaluation of how existing land uses and zones affect opportunities for moderate
             717      income housing; and
             718          (e) a description of the county's program to encourage an adequate supply of moderate
             719      income housing.
             720          (41) "Plat" means a map or other graphical representation of lands being laid out and
             721      prepared in accordance with Section 17-27a-603 , 17-23-17 , or 57-8-13 .
             722          (42) "Potential geologic hazard area" means an area that:
             723          (a) is designated by a Utah Geological Survey map, county geologist map, or other
             724      relevant map or report as needing further study to determine the area's potential for geologic
             725      hazard; or
             726          (b) has not been studied by the Utah Geological Survey or a county geologist but
             727      presents the potential of geologic hazard because the area has characteristics similar to those of
             728      a designated geologic hazard area.
             729          (43) "Public agency" means:
             730          (a) the federal government;
             731          (b) the state;
             732          (c) a county, municipality, school district, local district, special service district, or other
             733      political subdivision of the state; or
             734          (d) a charter school.
             735          (44) "Public hearing" means a hearing at which members of the public are provided a
             736      reasonable opportunity to comment on the subject of the hearing.
             737          (45) "Public meeting" means a meeting that is required to be open to the public under
             738      Title 52, Chapter 4, Open and Public Meetings Act.
             739          (46) "Receiving zone" means an unincorporated area of a county that the county
             740      designates, by ordinance, as an area in which an owner of land may receive a transferable


             741      development right.
             742          (47) "Record of survey map" means a map of a survey of land prepared in accordance
             743      with Section 17-23-17 .
             744          (48) "Residential facility for persons with a disability" means a residence:
             745          (a) in which more than one person with a disability resides; and
             746          (b) (i) which is licensed or certified by the Department of Human Services under Title
             747      62A, Chapter 2, Licensure of Programs and Facilities; or
             748          (ii) which is licensed or certified by the Department of Health under Title 26, Chapter
             749      21, Health Care Facility Licensing and Inspection Act.
             750          (49) "Rules of order and procedure" means a set of rules that govern and prescribe in a
             751      public meeting:
             752          (a) parliamentary order and procedure;
             753          (b) ethical behavior; and
             754          (c) civil discourse.
             755          (50) "Sanitary sewer authority" means the department, agency, or public entity with
             756      responsibility to review and approve the feasibility of sanitary sewer services or onsite
             757      wastewater systems.
             758          (51) "Sending zone" means an unincorporated area of a county that the county
             759      designates, by ordinance, as an area from which an owner of land may transfer a transferable
             760      development right.
             761          (52) "Site plan" means a document or map that may be required by a county during a
             762      preliminary review preceding the issuance of a building permit to demonstrate that an owner's
             763      or developer's proposed development activity meets a land use requirement.
             764          (53) "Specified public agency" means:
             765          (a) the state;
             766          (b) a school district; or
             767          (c) a charter school.
             768          (54) "Specified public utility" means an electrical corporation, gas corporation, or
             769      telephone corporation, as those terms are defined in Section 54-2-1 .
             770          (55) "State" includes any department, division, or agency of the state.
             771          (56) "Street" means a public right-of-way, including a highway, avenue, boulevard,


             772      parkway, road, lane, walk, alley, viaduct, subway, tunnel, bridge, public easement, or other
             773      way.
             774          (57) (a) "Subdivision" means any land that is divided, resubdivided or proposed to be
             775      divided into two or more lots, parcels, sites, units, plots, or other division of land for the
             776      purpose, whether immediate or future, for offer, sale, lease, or development either on the
             777      installment plan or upon any and all other plans, terms, and conditions.
             778          (b) "Subdivision" includes:
             779          (i) the division or development of land whether by deed, metes and bounds description,
             780      devise and testacy, map, plat, or other recorded instrument; and
             781          (ii) except as provided in Subsection (57)(c), divisions of land for residential and
             782      nonresidential uses, including land used or to be used for commercial, agricultural, and
             783      industrial purposes.
             784          (c) "Subdivision" does not include:
             785          (i) a bona fide division or partition of agricultural land for agricultural purposes;
             786          (ii) a recorded agreement between owners of adjoining properties adjusting their
             787      mutual boundary if:
             788          (A) no new lot is created; and
             789          (B) the adjustment does not violate applicable land use ordinances;
             790          (iii) a recorded document, executed by the owner of record:
             791          (A) revising the legal description of more than one contiguous unsubdivided parcel of
             792      property into one legal description encompassing all such parcels of property; or
             793          (B) joining a subdivided parcel of property to another parcel of property that has not
             794      been subdivided, if the joinder does not violate applicable land use ordinances;
             795          (iv) a bona fide division or partition of land in a county other than a first class county
             796      for the purpose of siting, on one or more of the resulting separate parcels:
             797          (A) an electrical transmission line or a substation;
             798          (B) a natural gas pipeline or a regulation station; or
             799          (C) an unmanned telecommunications, microwave, fiber optic, electrical, or other
             800      utility service regeneration, transformation, retransmission, or amplification facility;
             801          (v) a recorded agreement between owners of adjoining subdivided properties adjusting
             802      their mutual boundary if:


             803          (A) no new dwelling lot or housing unit will result from the adjustment; and
             804          (B) the adjustment will not violate any applicable land use ordinance;
             805          (vi) a bona fide division or partition of land by deed or other instrument where the land
             806      use authority expressly approves in writing the division in anticipation of further land use
             807      approvals on the parcel or parcels; or
             808          (vii) a parcel boundary adjustment.
             809          (d) The joining of a subdivided parcel of property to another parcel of property that has
             810      not been subdivided does not constitute a subdivision under this Subsection (57) as to the
             811      unsubdivided parcel of property or subject the unsubdivided parcel to the county's subdivision
             812      ordinance.
             813          (58) "Suspect soil" means soil that has:
             814          (a) a high susceptibility for volumetric change, typically clay rich, having more than a
             815      3% swell potential;
             816          (b) bedrock units with high shrink or swell susceptibility; or
             817          (c) gypsiferous silt and clay, gypsum, or bedrock units containing abundant gypsum
             818      commonly associated with dissolution and collapse features.
             819          (59) "Therapeutic school" means a residential group living facility:
             820          (a) for four or more individuals who are not related to:
             821          (i) the owner of the facility; or
             822          (ii) the primary service provider of the facility;
             823          (b) that serves students who have a history of failing to function:
             824          (i) at home;
             825          (ii) in a public school; or
             826          (iii) in a nonresidential private school; and
             827          (c) that offers:
             828          (i) room and board; and
             829          (ii) an academic education integrated with:
             830          (A) specialized structure and supervision; or
             831          (B) services or treatment related to a disability, an emotional development, a
             832      behavioral development, a familial development, or a social development.
             833          (60) "Township" means a contiguous, geographically defined portion of the


             834      unincorporated area of a county, established under this part or reconstituted or reinstated under
             835      Section 17-27a-306 , with planning and zoning functions as exercised through the township
             836      planning commission, as provided in this chapter, but with no legal or political identity
             837      separate from the county and no taxing authority, except that "township" means a former
             838      township under Laws of Utah 1996, Chapter 308, where the context so indicates.
             839          (61) "Transferable development right" means a right to develop and use land that
             840      originates by an ordinance that authorizes a land owner in a designated sending zone to transfer
             841      land use rights from a designated sending zone to a designated receiving zone.
             842          (62) "Unincorporated" means the area outside of the incorporated area of a
             843      municipality.
             844          (63) "Water interest" means any right to the beneficial use of water, including:
             845          (a) each of the rights listed in Section 73-1-11 ; and
             846          (b) an ownership interest in the right to the beneficial use of water represented by:
             847          (i) a contract; or
             848          (ii) a share in a water company, as defined in Section 73-3-3.5 .
             849          (64) "Zoning map" means a map, adopted as part of a land use ordinance, that depicts
             850      land use zones, overlays, or districts.
             851          Section 4. Section 49-12-202 is amended to read:
             852           49-12-202. Participation of employers -- Limitations -- Exclusions -- Admission
             853      requirements -- Exceptions -- Nondiscrimination requirements.
             854          (1) (a) Unless excluded under Subsection (2), an employer is a participating employer
             855      and may not withdraw from participation in this system.
             856          (b) In addition to their participation in this system, participating employers may
             857      provide or participate in public or private retirement, supplemental or defined contribution
             858      plan, either directly or indirectly, for their employees.
             859          (2) The following employers may be excluded from participation in this system:
             860          (a) an employer not initially admitted or included as a participating employer in this
             861      system prior to January 1, 1982 if:
             862          (i) the employer elects not to provide or participate in any type of private or public
             863      retirement, supplemental or defined contribution plan, either directly or indirectly, for its
             864      employees, except for Social Security; or


             865          (ii) the employer offers another collectively bargained retirement benefit and has
             866      continued to do so on an uninterrupted basis since that date;
             867          [(b) an employer that is a charter school sponsored by the State Board of Education or
             868      a school district that makes an election of nonparticipation in accordance with Section
             869      53A-1a-512 unless the charter school makes a one-time, irrevocable retraction of the election
             870      of nonparticipation in accordance with Subsection 53A-1a-512 (9); or]
             871          (b) an employer that is a charter school authorized under Title 53A, Chapter 1a, Part 5,
             872      The Utah Charter Schools Act, and does not elect to participate in accordance with Section
             873      53A-1a-512 ; or
             874          (c) an employer that is a hospital created as a special service district under Title 17D,
             875      Chapter 1, Special Service District Act, that makes an election of nonparticipation in
             876      accordance with Subsection (4).
             877          (3) An employer who did not become a participating employer in this system prior to
             878      July 1, 1986, may not participate in this system.
             879          (4) (a) Until June 30, 2009, a employer that is a hospital created as a special service
             880      district under Title 17D, Chapter 1, Special Service District Act, may make an election of
             881      nonparticipation as an employer for retirement programs under this chapter.
             882          (b) An election provided under Subsection (4)(a):
             883          (i) is a one-time election made no later than the time specified under Subsection (4)(a);
             884          (ii) shall be documented by a resolution adopted by the governing body of the special
             885      service district;
             886          (iii) is irrevocable; and
             887          (iv) applies to the special service district as the employer and to all employees of the
             888      special service district.
             889          (c) The governing body of the special service district may offer employee benefit plans
             890      for its employees:
             891          (i) under Title 49, Chapter 20, Public Employees' Benefit and Insurance Program Act;
             892      or
             893          (ii) under any other program.
             894          (5) If a participating employer purchases service credit on behalf of regular full-time
             895      employees for service rendered prior to the participating employer's admission to this system,


             896      the service credit shall be purchased in a nondiscriminatory manner on behalf of all current and
             897      former regular full-time employees who were eligible for service credit at the time service was
             898      rendered.
             899          Section 5. Section 49-13-202 is amended to read:
             900           49-13-202. Participation of employers -- Limitations -- Exclusions -- Admission
             901      requirements -- Nondiscrimination requirements -- Service credit purchases.
             902          (1) (a) Unless excluded under Subsection (2), an employer is a participating employer
             903      and may not withdraw from participation in this system.
             904          (b) In addition to their participation in this system, participating employers may
             905      provide or participate in any additional public or private retirement, supplemental or defined
             906      contribution plan, either directly or indirectly, for their employees.
             907          (2) The following employers may be excluded from participation in this system:
             908          (a) an employer not initially admitted or included as a participating employer in this
             909      system before January 1, 1982, if:
             910          (i) the employer elects not to provide or participate in any type of private or public
             911      retirement, supplemental or defined contribution plan, either directly or indirectly, for its
             912      employees, except for Social Security; or
             913          (ii) the employer offers another collectively bargained retirement benefit and has
             914      continued to do so on an uninterrupted basis since that date;
             915          [(b) an employer that is a charter school sponsored by the State Board of Education or
             916      a school district that makes an election of nonparticipation in accordance with Section
             917      53A-1a-512 unless the charter school makes a one-time, irrevocable retraction of the election
             918      of nonparticipation in accordance with Subsection 53A-1a-512 (9);]
             919          (b) an employer that is a charter school authorized under Title 53A, Chapter 1a, Part 5,
             920      The Utah Charter Schools Act, and does not elect to participate in accordance with Section
             921      53A-1a-512 ;
             922          (c) an employer that is a hospital created as a special service district under Title 17D,
             923      Chapter 1, Special Service District Act, that makes an election of nonparticipation in
             924      accordance with Subsection (5); or
             925          (d) an employer that is a risk management association initially created by interlocal
             926      agreement before 1986 for the purpose of implementing a self-insurance joint protection


             927      program for the benefit of member municipalities of the association.
             928          (3) If an employer that may be excluded under Subsection (2)(a)(i) elects at any time to
             929      provide or participate in any type of public or private retirement, supplemental or defined
             930      contribution plan, either directly or indirectly, except for Social Security, the employer shall be
             931      a participating employer in this system regardless of whether the employer has applied for
             932      admission under Subsection (4).
             933          (4) (a) An employer may, by resolution of its governing body, apply for admission to
             934      this system.
             935          (b) Upon approval of the resolution by the board, the employer is a participating
             936      employer in this system and is subject to this title.
             937          (5) (a) (i) Until June 30, 2009, a employer that is a hospital created as a special service
             938      district under Title 17D, Chapter 1, Special Service District Act, may make an election of
             939      nonparticipation as an employer for retirement programs under this chapter.
             940          (ii) On or before July 1, 2010, an employer described in Subsection (2)(d) may make
             941      an election of nonparticipation as an employer for retirement programs under this chapter.
             942          (b) An election provided under Subsection (5)(a):
             943          (i) is a one-time election made no later than the time specified under Subsection (5)(a);
             944          (ii) shall be documented by a resolution adopted by the governing body of the
             945      employer;
             946          (iii) is irrevocable; and
             947          (iv) applies to the employer described in Subsection (5)(a) and to all employees of that
             948      employer.
             949          (c) The employer making an election under Subsection (5)(a) may offer employee
             950      benefit plans for its employees:
             951          (i) under Title 49, Chapter 20, Public Employees' Benefit and Insurance Program Act;
             952      or
             953          (ii) under any other program.
             954          (6) If a participating employer purchases service credit on behalf of regular full-time
             955      employees for service rendered prior to the participating employer's admission to this system,
             956      the service credit shall be purchased in a nondiscriminatory manner on behalf of all current and
             957      former regular full-time employees who were eligible for service credit at the time service was


             958      rendered.
             959          Section 6. Section 49-22-202 is amended to read:
             960           49-22-202. Participation of employers -- Limitations -- Exclusions -- Admission
             961      requirements.
             962          (1) Unless excluded under Subsection (2), an employer is a participating employer and
             963      may not withdraw from participation in this system.
             964          (2) The following employers may be excluded from participation in this system:
             965          (a) an employer not initially admitted or included as a participating employer in this
             966      system before January 1, 1982, if:
             967          (i) the employer elects not to provide or participate in any type of private or public
             968      retirement, supplemental or defined contribution plan, either directly or indirectly, for its
             969      employees, except for Social Security; or
             970          (ii) the employer offers another collectively bargained retirement benefit and has
             971      continued to do so on an uninterrupted basis since that date;
             972          [(b) an employer that is a charter school sponsored by the State Board of Education or
             973      a school district that makes an election of nonparticipation in accordance with Section
             974      53A-1a-512 unless the charter school makes a one-time, irrevocable retraction of the election
             975      of nonparticipation in accordance with Subsection 53A-1a-512 (9); or]
             976          (b) an employer that is a charter school authorized under Title 53A, Chapter 1a, Part 5,
             977      The Utah Charter Schools Act, and does not elect to participate in accordance with Section
             978      53A-1a-512 ; or
             979          (c) an employer that is a risk management association initially created by interlocal
             980      agreement before 1986 for the purpose of implementing a self-insurance joint protection
             981      program for the benefit of member municipalities of the association.
             982          (3) If an employer that may be excluded under Subsection (2)(a)(i) elects at any time to
             983      provide or participate in any type of public or private retirement, supplemental or defined
             984      contribution plan, either directly or indirectly, except for Social Security, the employer shall be
             985      a participating employer in this system regardless of whether the employer has applied for
             986      admission under Subsection (4).
             987          (4) (a) An employer may, by resolution of its governing body, apply for admission to
             988      this system.


             989          (b) Upon approval of the resolution by the board, the employer is a participating
             990      employer in this system and is subject to this title.
             991          (5) If a participating employer purchases service credit on behalf of a regular full-time
             992      employee for service rendered prior to the participating employer's admission to this system,
             993      the participating employer:
             994          (a) shall purchase credit in a nondiscriminatory manner on behalf of all current and
             995      former regular full-time employees who were eligible for service credit at the time service was
             996      rendered; and
             997          (b) shall comply with the provisions of Section 49-11-403 .
             998          Section 7. Section 52-4-209 is amended to read:
             999           52-4-209. Electronic meetings for charter school board.
             1000          (1) Notwithstanding the definitions provided in Section 52-4-103 for this chapter, as
             1001      used in this section:
             1002          (a) "Anchor location" means a physical location where:
             1003          (i) the charter school board would normally meet if the charter school board were not
             1004      holding an electronic meeting; and
             1005          (ii) space, a facility, and technology are provided to the public to monitor and, if public
             1006      comment is allowed, to participate in an electronic meeting during regular business hours.
             1007          (b) "Charter school board" means the governing [body] board of a school created under
             1008      Title 53A, Chapter 1a, Part 5, The Utah Charter Schools Act.
             1009          (c) "Meeting" means the convening of a charter school board:
             1010          (i) with a quorum who:
             1011          (A) monitors a website at least once during the electronic meeting; and
             1012          (B) casts a vote on a website, if a vote is taken; and
             1013          (ii) for the purpose of discussing, receiving comments from the public about, or acting
             1014      upon a matter over which the charter school board has jurisdiction or advisory power.
             1015          (d) "Monitor" means to:
             1016          (i) read all the content added to a website by the public or a charter school board
             1017      member; and
             1018          (ii) view a vote cast by a charter school board member on a website.
             1019          (e) "Participate" means to add content to a website.


             1020          (2) (a) A charter school board may convene and conduct an electronic meeting in
             1021      accordance with Section 52-4-207 .
             1022          (b) A charter school board may convene and conduct an electronic meeting in
             1023      accordance with this section that is in writing on a website if:
             1024          (i) the chair verifies that a quorum monitors the website;
             1025          (ii) the content of the website is available to the public;
             1026          (iii) the chair controls the times in which a charter school board member or the public
             1027      participates; and
             1028          (iv) the chair requires a person to identify himself or herself if the person:
             1029          (A) participates; or
             1030          (B) casts a vote as a charter school board member.
             1031          (3) A charter school that conducts an electronic meeting under this section shall:
             1032          (a) give public notice of the electronic meeting:
             1033          (i) in accordance with Section 52-4-202 ; and
             1034          (ii) by posting written notice at the anchor location as required under Section 52-4-207 ;
             1035          (b) in addition to giving public notice required by Subsection (3)(a), provide:
             1036          (i) notice of the electronic meeting to the members of the charter school board at least
             1037      24 hours before the meeting so that they may participate in and be counted as present for all
             1038      purposes, including the determination that a quorum is present;
             1039          (ii) a description of how the members and the public may be connected to the
             1040      electronic meeting;
             1041          (iii) a start and end time for the meeting, which shall be no longer than 5 days; and
             1042          (iv) a start and end time for when a vote will be taken in an electronic meeting, which
             1043      shall be no longer than four hours; and
             1044          (c) provide an anchor location.
             1045          (4) The chair shall:
             1046          (a) not allow anyone to participate from the time the notice described in Subsection
             1047      (3)(b)(iv) is given until the end time for when a vote will be taken; and
             1048          (b) allow a charter school board member to change a vote until the end time for when a
             1049      vote will be taken.
             1050          (5) During the time in which a vote may be taken, a charter school board member may


             1051      not communicate in any way with any person regarding an issue over which the charter school
             1052      board has jurisdiction.
             1053          (6) A charter school conducting an electronic meeting under this section may not close
             1054      a meeting as otherwise allowed under this part.
             1055          (7) (a) Written minutes shall be kept of an electronic meeting conducted as required in
             1056      Section 52-4-203 .
             1057          (b) (i) Notwithstanding Section 52-4-203 , a recording is not required of an electronic
             1058      meeting described in Subsection (2)(b).
             1059          (ii) All of the content of the website shall be kept for an electronic meeting conducted
             1060      under this section.
             1061          (c) Written minutes are the official record of action taken at an electronic meeting as
             1062      required in Section 52-4-203 .
             1063          (8) (a) A charter school board shall ensure that the website used to conduct an
             1064      electronic meeting:
             1065          (i) is secure; and
             1066          (ii) provides with reasonably certainty the identity of a charter school board member
             1067      who logs on, adds content, or casts a vote on the website.
             1068          (b) A person is guilty of a class B misdemeanor if the person falsely identifies himself
             1069      or herself as required by Subsection (2)(b)(iv).
             1070          (9) Compliance with the provisions of this section by a charter school constitutes full
             1071      and complete compliance by the public body with the corresponding provisions of Sections
             1072      52-4-201 and 52-4-202 .
             1073          Section 8. Section 53A-1a-501.3 is amended to read:
             1074           53A-1a-501.3. Definitions.
             1075          As used in this part:
             1076          (1) "Asset" means property of all kinds, real and personal, tangible and intangible, and
             1077      includes:
             1078          (a) cash;
             1079          (b) stock or other investments;
             1080          (c) real property;
             1081          (d) equipment and supplies;


             1082          (e) an ownership interest;
             1083          (f) a license;
             1084          (g) a cause of action; and
             1085          (h) any similar property.
             1086          (2) "Board of trustees of a higher education institution" or "board of trustees" means:
             1087          (a) the board of trustees of:
             1088          (i) the University of Utah;
             1089          (ii) Utah State University;
             1090          (iii) Weber State University;
             1091          (iv) Southern Utah University;
             1092          (v) Snow College;
             1093          (vi) Dixie State University;
             1094          (vii) Utah Valley University; or
             1095          (viii) Salt Lake Community College; or
             1096          (b) the campus board of directors of a college campus within the Utah College of
             1097      Applied Technology.
             1098          (3) "Charter agreement" or "charter" means an agreement made in accordance with
             1099      Section 53A-1a-508 , that authorizes the operation of a charter school.
             1100          [(3)] (4) ["Chartering entity"] "Charter school authorizer" or "authorizer" means the
             1101      [entity] State Charter School Board, local school board, or board of trustees of a higher
             1102      education institution that authorizes the establishment of a charter school.
             1103          (5) "Governing board" means the board that operates a charter school.
             1104          Section 9. Section 53A-1a-501.6 is amended to read:
             1105           53A-1a-501.6. Power and duties of State Charter School Board.
             1106          (1) The State Charter School Board shall:
             1107          (a) authorize and promote the establishment of charter schools, subject to the
             1108      provisions in this part;
             1109          (b) annually review and evaluate the performance of charter schools authorized by the
             1110      State Charter School Board and hold the schools accountable for their performance;
             1111          (c) monitor charter schools authorized by the State Charter School Board for
             1112      compliance with federal and state laws, rules, and regulations;


             1113          (d) provide technical support to charter schools and persons seeking to establish charter
             1114      schools by:
             1115          (i) identifying and promoting successful charter school models;
             1116          (ii) facilitating the application and approval process for charter school authorization;
             1117          (iii) directing charter schools and persons seeking to establish charter schools to
             1118      sources of private funding and support;
             1119          (iv) reviewing and evaluating proposals to establish charter schools for the purpose of
             1120      supporting and strengthening proposals before an application for charter school authorization is
             1121      submitted to a [chartering entity] charter school authorizer; and
             1122          (v) assisting charter schools to understand and carry out their charter obligations;
             1123          (e) provide technical support, as requested, to a [chartering entity] charter school
             1124      authorizer relating to charter schools;
             1125          (f) make recommendations on legislation and rules pertaining to charter schools to the
             1126      Legislature and State Board of Education, respectively; and
             1127          (g) make recommendations to the State Board of Education on the funding of charter
             1128      schools.
             1129          (2) The State Charter School Board may:
             1130          (a) contract;
             1131          (b) sue and be sued; and
             1132          (c) (i) at the discretion of the charter school, provide administrative services to, or
             1133      perform other school functions for, charter schools authorized by the State Charter School
             1134      Board; and
             1135          (ii) charge fees for the provision of services or functions.
             1136          Section 10. Section 53A-1a-503.5 is amended to read:
             1137           53A-1a-503.5. Status of charter schools.
             1138          (1) Charter schools are:
             1139          (a) considered to be public schools within the state's public education system;
             1140          (b) subject to Subsection 53A-1-401 (3); and
             1141          (c) governed by independent boards and held accountable to a legally binding written
             1142      contractual agreement.
             1143          (2) A charter school may be established by:


             1144          (a) creating a new school; or
             1145          (b) converting an existing public school to charter status.
             1146          (3) A parochial school or home school is not eligible for charter school status.
             1147          Section 11. Section 53A-1a-504 is repealed and reenacted to read:
             1148          53A-1a-504. Charter school application -- Applicants -- Contents -- Expansion.
             1149          (1) (a) An application to establish a charter school may be submitted by:
             1150          (i) an individual;
             1151          (ii) a group of individuals; or
             1152          (iii) a nonprofit legal entity organized under Utah law.
             1153          (b) An authorized charter school may apply under this chapter for a charter from
             1154      another charter school authorizer.
             1155          (2) A charter school application shall include:
             1156          (a) the purpose and mission of the school;
             1157          (b) except for a charter school authorized by a local school board, a statement that,
             1158      after entering into a charter agreement, the charter school will be organized and managed under
             1159      Title 16, Chapter 6a, Utah Revised Nonprofit Corporation Act;
             1160          (c) a description of the governance structure of the school, including:
             1161          (i) a list of the governing board members that describes the qualifications of each
             1162      member; and
             1163          (ii) an assurance that the applicant shall, within 30 days of authorization, provide the
             1164      authorizer with the results of a background check for each member;
             1165          (d) a description of the target population of the school that includes:
             1166          (i) the projected maximum number of students the school proposes to enroll;
             1167          (ii) the projected school enrollment for each of the first three years of school operation;
             1168      and
             1169          (iii) the ages or grade levels the school proposes to serve;
             1170          (e) academic goals;
             1171          (f) qualifications and policies for school employees, including policies that:
             1172          (i) require completion of a criminal background check for teachers;
             1173          (ii) require employee evaluations; and
             1174          (iii) address employment of relatives within the charter school;


             1175          (g) a description of how the charter school will provide, as required by state and federal
             1176      law, special education and related services;
             1177          (h) for a public school converting to charter status, arrangements for:
             1178          (i) students who choose not to continue attending the charter school; and
             1179          (ii) teachers who choose not to continue teaching at the charter school;
             1180          (i) a statement that describes the charter school's plan for establishing the charter
             1181      school's facilities, including:
             1182          (i) whether the charter school intends to lease or purchase the charter school's facilities;
             1183      and
             1184          (ii) financing arrangements;
             1185          (j) a market analysis of the community the school plans to serve;
             1186          (k) a capital facility plan;
             1187          (l) a business plan;
             1188          (m) other major issues involving the establishment and operation of the charter school;
             1189      and
             1190          (n) the signatures of the governing board members of the charter school.
             1191          (3) A charter school authorizer may require a charter school application to include:
             1192          (a) the charter school's proposed:
             1193          (i) curriculum;
             1194          (ii) instructional program; or
             1195          (iii) delivery methods;
             1196          (b) a method for assessing whether students are reaching academic goals, including, at
             1197      a minimum, participation in the Utah Performance Assessment System for Students under
             1198      Chapter 1, Part 6, Achievement Tests;
             1199          (c) a proposed calendar;
             1200          (d) sample policies;
             1201          (e) a description of opportunities for parental involvement;
             1202          (f) a description of the school's administrative, supervisory, or other proposed services
             1203      that may be obtained through service providers; or
             1204          (g) other information that demonstrates an applicant's ability to establish and operate a
             1205      charter school.


             1206          (4) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             1207      State Board of Education shall make rules regarding the expansion of a charter school,
             1208      including establishing a satellite campus, that provide:
             1209          (a) requirements for a charter school to apply and qualify for expansion; and
             1210          (b) procedures and deadlines for the application process.
             1211          Section 12. Section 53A-1a-505 is amended to read:
             1212           53A-1a-505. Charter schools authorized by the State Charter School Board --
             1213      Application process -- Prohibited bases of application denial.
             1214          (1) (a) An applicant seeking authorization of a charter school from the State Charter
             1215      School Board shall provide a copy of the application to the local school board of the school
             1216      district in which the proposed charter school shall be located either before or at the same time it
             1217      files its application with the State Charter School Board.
             1218          (b) The local board may review the application and may offer suggestions or
             1219      recommendations to the applicant or the State Charter School Board prior to its acting on the
             1220      application.
             1221          (c) The State Charter School Board shall give due consideration to suggestions or
             1222      recommendations made by the local school board under Subsection (1)(b).
             1223          (d) The State Charter School Board shall review and, by majority vote, either approve
             1224      or deny the application.
             1225          (e) The State Board of Education shall, by majority vote, within 60 days after action by
             1226      the State Charter School Board under Subsection (1)(d):
             1227          (i) approve or deny an application approved by the State Charter School Board; or
             1228          (ii) hear an appeal, if any, of an application denied by the State Charter School Board.
             1229          (f) The State Board of Education's action under Subsection (1)(d) is final action subject
             1230      to judicial review.
             1231          (g) A charter school application may not be denied on the basis that the establishment
             1232      of the charter school will have any or all of the following impacts on a public school, including
             1233      another charter school:
             1234          (i) an enrollment decline;
             1235          (ii) a decrease in funding; or
             1236          (iii) a modification of programs or services.


             1237          (2) The State Board of Education shall make a rule providing a timeline for the
             1238      opening of a charter school following the approval of a charter school application by the State
             1239      Charter School Board.
             1240          (3) [(a)] After approval of a charter school application[,] and in accordance with
             1241      Section 53A-1a-508 , the applicant and the State Charter School Board shall set forth the terms
             1242      and conditions for the operation of the charter school in a written [contractual] charter
             1243      agreement.
             1244          [(b) The agreement is the school's charter.]
             1245          [(4) (a) A school holding a charter granted by a local school board may request a
             1246      charter from the State Charter School Board.]
             1247          [(b) This section shall govern the application and approval of a charter requested under
             1248      Subsection (4)(a).]
             1249          (4) The State Charter School Board shall, in accordance with State Board of Education
             1250      rules, establish and make public the State Charter School Board's:
             1251          (a) application requirements, in accordance with Section 53A-1a-504 ;
             1252          (b) application process, including timelines, in accordance with this section; and
             1253          (c) minimum academic, financial, and enrollment standards.
             1254          Section 13. Section 53A-1a-506 is amended to read:
             1255           53A-1a-506. Eligible students.
             1256          (1) As used in this section:
             1257          (a) "District school" means a public school under the control of a local school board
             1258      elected pursuant to Title 20A, Chapter 14, Nomination and Election of State and Local School
             1259      Boards.
             1260          (b) "Refugee" means a person who is eligible to receive benefits and services from the
             1261      federal Office of Refugee Resettlement.
             1262          (2) All resident students of the state qualify for admission to a charter school, subject
             1263      to the limitations set forth in this section and Section 53A-1a-506.5 .
             1264          (3) (a) A charter school shall enroll an eligible student who submits a timely
             1265      application, unless the number of applications exceeds the capacity of a program, class, grade
             1266      level, or the charter school.
             1267          (b) If the number of applications exceeds the capacity of a program, class, grade level,


             1268      or the charter school, students shall be selected on a random basis, except as provided in
             1269      Subsections (4) through (6).
             1270          (4) A charter school may give an enrollment preference to:
             1271          (a) a student of a parent who has actively participated in the development of the charter
             1272      school;
             1273          (b) siblings of students presently enrolled in the charter school;
             1274          (c) a student of a parent who is employed by the charter school;
             1275          (d) students articulating between charter schools offering similar programs that are
             1276      governed by the same governing [body] board;
             1277          (e) students articulating from one charter school to another pursuant to an articulation
             1278      agreement between the charter schools that is approved by the State Charter School Board; or
             1279          (f) students who reside within:
             1280          (i) the school district in which the charter school is located;
             1281          (ii) the municipality in which the charter school is located; or
             1282          (iii) a two-mile radius from the charter school.
             1283          (5) If a district school converts to charter status, the charter school shall give an
             1284      enrollment preference to students who would have otherwise attended it as a district school.
             1285          (6) (a) A charter school whose mission is to enhance learning opportunities for
             1286      refugees or children of refugee families may give an enrollment preference to refugees or
             1287      children of refugee families.
             1288          (b) A charter school whose mission is to enhance learning opportunities for English
             1289      language learners may give an enrollment preference to English language learners.
             1290          (7) A charter school may weight its lottery to give a slightly better chance of admission
             1291      to educationally disadvantaged students, including:
             1292          (a) low-income students;
             1293          (b) students with disabilities;
             1294          (c) English language learners;
             1295          (d) neglected or delinquent students; and
             1296          (e) homeless students.
             1297          [(7)] (8) A charter school may not discriminate in its admission policies or practices on
             1298      the same basis as other public schools may not discriminate in their admission policies and


             1299      practices.
             1300          Section 14. Section 53A-1a-506.5 is amended to read:
             1301           53A-1a-506.5. Charter school students -- Admissions procedures -- Transfers.
             1302          (1) As used in this section:
             1303          (a) "District school" means a public school under the control of a local school board
             1304      elected pursuant to Title 20A, Chapter 14, Nomination and Election of State and Local School
             1305      Boards.
             1306          (b) "Nonresident school district" means a school district other than a student's school
             1307      district of residence.
             1308          (c) "School district of residence" means a student's school district of residence as
             1309      determined under Section 53A-2-201 .
             1310          (d) "School of residence" means the school to which a student is assigned to attend
             1311      based on the student's place of residence.
             1312          (2) (a) The State School Board, in consultation with the State Charter School Board,
             1313      shall make rules describing procedures for students to follow in applying for entry into, or
             1314      exiting, a charter school.
             1315          (b) The rules under Subsection (2)(a) shall, at a minimum, provide for:
             1316          (i) posting on a charter school's Internet website, beginning no later than 60 days before
             1317      the school's initial period of applications:
             1318          (A) procedures for applying for admission to the charter school;
             1319          (B) [(I)] the school's opening date, if the school has not yet opened[;], or [(II)] the
             1320      school calendar; and
             1321          (C) information on how a student may transfer from a charter school to another charter
             1322      school or a district school;
             1323          [(ii) use of standard application forms prescribed by the State Board of Education;]
             1324          [(iii)] (ii) written notification to a student's parent or legal guardian of an offer of
             1325      admission;
             1326          [(iv)] (iii) written acceptance of an offer of admission by a student's parent or legal
             1327      guardian;
             1328          [(v)] (iv) written notification to a student's current charter school or school district of
             1329      residence upon acceptance of the student for enrollment in a charter school; and


             1330          [(vi)] (v) the admission of students[, provided that the admission does not disqualify
             1331      the charter school from federal funding,] at:
             1332          (A) any time to protect the health or safety of a student; or
             1333          (B) times other than those permitted under standard policies if there are other
             1334      conditions of special need that warrant consideration.
             1335          (c) The rules under Subsection (2)(a) shall prevent the parent of a student who is
             1336      enrolled in a charter school or who has accepted an offer of admission to a charter school from
             1337      duplicating enrollment for the student in another charter school or a school district without
             1338      following the withdrawal procedures described in Subsection (3).
             1339          (3) The parent of a student enrolled in a charter school may withdraw the student from
             1340      the charter school for enrollment in another charter school or a school district by submitting to
             1341      the charter school:
             1342          (a) on or before June 30, a notice of intent to enroll the student in the student's school
             1343      of residence for the following school year;
             1344          (b) after June 30, a letter of acceptance for enrollment in the student's school district of
             1345      residence for the following year;
             1346          (c) a letter of acceptance for enrollment in the student's school district of residence in
             1347      the current school year;
             1348          (d) a letter of acceptance for enrollment in a nonresident school district; or
             1349          (e) a letter of acceptance for enrollment in a charter school.
             1350          (4) (a) A charter school shall report to a school district, by the last business day of each
             1351      month the aggregate number of new students, sorted by their school of residence and grade
             1352      level, who have accepted enrollment in the charter school for the following school year.
             1353          (b) A school district shall report to a charter school, by the last business day of each
             1354      month, the aggregate number of students enrolled in the charter school who have accepted
             1355      enrollment in the school district in the following school year, sorted by grade level.
             1356          (5) When a vacancy occurs because a student has withdrawn from a charter school, the
             1357      charter school may immediately enroll a new student from its list of applicants.
             1358          (6) Unless provisions have previously been made for enrollment in another school, a
             1359      charter school releasing a student from enrollment during a school year shall immediately
             1360      notify the school district of residence, which shall enroll the student in the school district of


             1361      residence and take additional steps as may be necessary to ensure compliance with laws
             1362      governing school attendance.
             1363          (7) (a) The parent of a student enrolled in a charter school may withdraw the student
             1364      from the charter school for enrollment in the student's school of residence in the following
             1365      school year if an application of admission is submitted to the school district of residence by
             1366      June 30.
             1367          (b) If the parent of a student enrolled in a charter school submits an application of
             1368      admission to the student's school district of residence after June 30 for the student's enrollment
             1369      in the school district of residence in the following school year, or an application of admission is
             1370      submitted for enrollment during the current school year, the student may enroll in a school of
             1371      the school district of residence that has adequate capacity in:
             1372          (i) the student's grade level, if the student is an elementary school student; or
             1373          (ii) the core classes that the student needs to take, if the student is a secondary school
             1374      student.
             1375          (c) State Board of Education rules made under Subsection (2)(a) shall specify how
             1376      adequate capacity in a grade level or core classes is determined for the purposes of Subsection
             1377      (7)(b).
             1378          (8) Notwithstanding Subsection (7), a school district may enroll a student at any time
             1379      to protect the health and safety of the student.
             1380          (9) A school district or charter school may charge secondary students a one-time $5
             1381      processing fee, to be paid at the time of application.
             1382          Section 15. Section 53A-1a-507 is amended to read:
             1383           53A-1a-507. Requirements for charter schools.
             1384          (1) A charter school shall be nonsectarian in its programs, admission policies,
             1385      employment practices, and operations.
             1386          (2) A charter school may not charge tuition or fees, except those fees normally charged
             1387      by other public schools.
             1388          (3) A charter school shall meet all applicable federal, state, and local health, safety, and
             1389      civil rights requirements.
             1390          (4) (a) A charter school shall make the same annual reports required of other public
             1391      schools under this title, including an annual financial audit report.


             1392          (b) A charter school shall file its annual financial audit report with the Office of the
             1393      State Auditor within six months of the end of the fiscal year.
             1394          (5) (a) A charter school shall be accountable to [its chartering entity] the charter
             1395      school's authorizer for performance as provided in the school's charter.
             1396          (b) To measure the performance of a charter school, [a chartering entity] an authorizer
             1397      may use data contained in:
             1398          (i) the charter school's annual financial audit report;
             1399          (ii) a report submitted by the charter school as required by statute; or
             1400          (iii) a report submitted by the charter school as required by its charter.
             1401          (c) A [chartering entity] charter school authorizer may not impose performance
             1402      standards, except as permitted by statute, that limit, infringe, or prohibit a charter school's
             1403      ability to successfully accomplish the purposes of charter schools as provided in Section
             1404      53A-1a-503 or as otherwise provided in law.
             1405          (6) A charter school may not advocate unlawful behavior.
             1406          (7) Except as provided in Section 53A-1a-515 , a charter school shall be organized and
             1407      managed under Title 16, Chapter 6a, Utah Revised Nonprofit Corporation Act, after its
             1408      authorization.
             1409          (8) A charter school shall provide adequate liability and other appropriate insurance.
             1410          (9) Beginning on July 1, [2007] 2014, a charter school shall submit any lease,
             1411      lease-purchase agreement, or other contract or agreement relating to the charter school's
             1412      facilities or financing of the charter [school] school's facilities to [its chartering entity] the
             1413      school's authorizer and an attorney for review and advice prior to the charter school entering
             1414      into the lease, agreement, or contract.
             1415          (10) A charter school may not employ an educator whose license has been suspended
             1416      or revoked by the State Board of Education [as provided in] under Section 53A-6-501 .
             1417          Section 16. Section 53A-1a-508 is repealed and reenacted to read:
             1418          53A-1a-508. Charter agreement -- Content -- Modification.
             1419          (1) A charter agreement:
             1420          (a) is a contract between the charter school applicant and the charter school authorizer;
             1421          (b) shall describe the rights and responsibilities of each party; and
             1422          (c) shall allow for the operation of the applicant's proposed charter school.


             1423          (2) A charter agreement shall include:
             1424          (a) the name of:
             1425          (i) the charter school; and
             1426          (ii) the charter school applicant;
             1427          (b) the mission statement and purpose of the charter school;
             1428          (c) the charter school's opening date;
             1429          (d) the grade levels and number of students the charter school will serve;
             1430          (e) a description of the structure of the charter school's governing board, including:
             1431          (i) the number of board members;
             1432          (ii) how members of the board are appointed; and
             1433          (iii) board members' terms of office;
             1434          (f) assurances that:
             1435          (i) the governing board shall comply with:
             1436          (A) the charter school's bylaws;
             1437          (B) the charter school's articles of incorporation; and
             1438          (C) applicable federal law, state law, and State Board of Education rules;
             1439          (ii) the governing board will meet all reporting requirements described in Section
             1440      53A-1b-115 ; and
             1441          (iii) except as provided in Title 53A, Chapter 20b, Part 2, Charter School Credit
             1442      Enhancement Program, neither the authorizer nor the state, including an agency of the state, is
             1443      liable for the debts or financial obligations of the charter school or a person who operates the
             1444      charter school;
             1445          (g) which administrative rules the State Board of Education will waive for the charter
             1446      school;
             1447          (h) minimum financial standards for operating the charter school;
             1448          (i) minimum standards for student achievement; and
             1449          (j) signatures of the charter school authorizer and the charter school's governing board
             1450      members.
             1451          (3) A charter agreement may not be modified except by mutual agreement between the
             1452      charter school authorizer and the governing board of the charter school.
             1453          Section 17. Section 53A-1a-509 is amended to read:


             1454           53A-1a-509. Noncompliance -- Rulemaking.
             1455          (1) If a charter school is found to be out of compliance with the requirements of
             1456      Section 53A-1a-507 or the school's charter, the [chartering entity] charter school authorizer
             1457      shall notify the following in writing that the charter school has a reasonable time to remedy the
             1458      deficiency, except as otherwise provided in Subsection 53A-1a-510(4):
             1459          (a) the governing [body] board of the charter school; and
             1460          (b) if the charter school is a qualifying charter school with outstanding bonds issued in
             1461      accordance with Chapter 20b, Part 2, Charter School Credit Enhancement Program, the Utah
             1462      Charter School Finance Authority.
             1463          (2) If the charter school does not remedy the deficiency within the established timeline,
             1464      the [chartering entity] authorizer may:
             1465          (a) subject to the requirements of Subsection (4), take one or more of the following
             1466      actions:
             1467          (i) remove a charter school director or finance officer;
             1468          (ii) remove a governing board member; or
             1469          (iii) appoint an interim director or mentor to work with the charter school; or
             1470          (b) subject to the requirements of Section 53A-1a-510 , terminate the school's charter.
             1471          (3) The costs of an interim director or mentor appointed pursuant to Subsection (2)(a)
             1472      shall be paid from the funds of the charter school for which the interim director or mentor is
             1473      working.
             1474          (4) The [chartering entity] authorizer shall notify the Utah Charter School Finance
             1475      Authority before the [chartering entity] authorizer takes an action described in Subsections
             1476      (2)(a)(i) through (iii) if the charter school is a qualifying charter school with outstanding bonds
             1477      issued in accordance with Chapter 20b, Part 2, Charter School Credit Enhancement Program.
             1478          (5) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             1479      State Board of Education shall make rules:
             1480          (a) specifying the timeline for remedying deficiencies under Subsection (1); and
             1481          (b) ensuring the compliance of a charter school with its approved charter.
             1482          Section 18. Section 53A-1a-510 is amended to read:
             1483           53A-1a-510. Termination of a charter.
             1484          (1) Subject to the requirements of Subsection (3), a [chartering entity] charter school


             1485      authorizer may terminate a school's charter for any of the following reasons:
             1486          (a) failure of the charter school to meet the requirements stated in the charter;
             1487          (b) failure to meet generally accepted standards of fiscal management;
             1488          (c) subject to Subsection (8), failure to make adequate yearly progress under the No
             1489      Child Left Behind Act of 2001, 20 U.S.C. Sec. 6301 et seq.;
             1490          (d) violation of requirements under this part or another law; or
             1491          (e) other good cause shown.
             1492          (2) (a) The [chartering entity] authorizer shall notify the following of the proposed
             1493      termination in writing, state the grounds for the termination, and stipulate that the governing
             1494      [body] board may request an informal hearing before the [chartering entity] authorizer:
             1495          (i) the governing [body] board of the charter school; and
             1496          (ii) if the charter school is a qualifying charter school with outstanding bonds issued in
             1497      accordance with Chapter 20b, Part 2, Charter School Credit Enhancement Program, the Utah
             1498      Charter School Finance Authority.
             1499          (b) Except as provided in Subsection (2)(e), the [chartering entity] authorizer shall
             1500      conduct the hearing in accordance with Title 63G, Chapter 4, Administrative Procedures Act,
             1501      within 30 days after receiving a written request under Subsection (2)(a).
             1502          (c) If the [chartering entity] authorizer, by majority vote, approves a motion to
             1503      terminate a charter school, the governing [body] board of the charter school may appeal the
             1504      decision to the State Board of Education.
             1505          (d) (i) The State Board of Education shall hear an appeal of a termination made
             1506      pursuant to Subsection (2)(c).
             1507          (ii) The State Board of Education's action is final action subject to judicial review.
             1508          (e) (i) If the [chartering entity] authorizer proposes to terminate the charter of a
             1509      qualifying charter school with outstanding bonds issued in accordance with Chapter 20b, Part
             1510      2, Charter School Credit Enhancement Program, the [chartering entity] authorizer shall conduct
             1511      a hearing described in Subsection (2)(b) 120 days or more after notifying the following of the
             1512      proposed termination:
             1513          (A) the governing [body] board of the qualifying charter school; and
             1514          (B) the Utah Charter School Finance Authority.
             1515          (ii) Prior to the hearing described in Subsection (2)(e)(i), the Utah Charter School


             1516      Finance Authority shall meet with the [chartering entity] authorizer to determine whether the
             1517      deficiency may be remedied in lieu of termination of the qualifying charter school's charter.
             1518          (3) [A chartering entity] An authorizer may not terminate the charter of a qualifying
             1519      charter school with outstanding bonds issued in accordance with Chapter 20b, Part 2, Charter
             1520      School Credit Enhancement Program, without mutual agreement of the Utah Charter School
             1521      Finance Authority and the [chartering entity] authorizer.
             1522          (4) (a) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
             1523      the State Board of Education shall make rules that require a charter school to report any threats
             1524      to the health, safety, or welfare of its students to the State Charter School Board in a timely
             1525      manner.
             1526          (b) The rules under Subsection (4)(a) shall also require the charter school report to
             1527      include what steps the charter school has taken to remedy the threat.
             1528          (5) Subject to the requirements of Subsection (3), the [chartering entity] authorizer may
             1529      terminate a charter immediately if good cause has been shown or if the health, safety, or
             1530      welfare of the students at the school is threatened.
             1531          (6) If a charter is terminated during a school year, the following entities may apply to
             1532      the charter school's authorizer to assume operation of the school:
             1533          (a) the school district [in which] where the charter school is located [may assume
             1534      operation of the school; or];
             1535          (b) the governing board of another charter school; or
             1536          [(b)] (c) a private management company [may be hired to operate the charter school].
             1537          (7) (a) If a charter is terminated, a student who attended the school may apply to and
             1538      shall be enrolled in another public school under the enrollment provisions of [Title 53A,]
             1539      Chapter 2, Part 2, District of Residency, subject to space availability.
             1540          (b) Normal application deadlines shall be disregarded under Subsection (7)(a).
             1541          (8) Subject to the requirements of Subsection (3), [a chartering entity] an authorizer
             1542      may terminate a charter pursuant to Subsection (1)(c) under the same circumstances that local
             1543      educational agencies are required to implement alternative governance arrangements under 20
             1544      U.S.C. Sec. 6316.
             1545          Section 19. Section 53A-1a-510.5 is amended to read:
             1546           53A-1a-510.5. Charter school closure.


             1547          (1) If a charter school is closed for any reason, including the termination of a charter in
             1548      accordance with Section 53A-1a-510 or the conversion of a charter school to a private school,
             1549      the provisions of this section apply.
             1550          (2) (a) As soon as possible after the decision is made to close a charter school,
             1551      notification of the decision, in writing, shall be provided by the charter school to:
             1552          (i) its [chartering entity] charter school authorizer;
             1553          (ii) the State Charter School Board;
             1554          (iii) the State Board of Education;
             1555          (iv) parents of its students;
             1556          (v) its creditors; and
             1557          (vi) the school district in which the charter school is located and other charter schools
             1558      located in that school district.
             1559          (b) The notification under Subsection (2)(a) shall include:
             1560          (i) the proposed date of school closure;
             1561          (ii) the school's plans to help students identify and transition into a new school; and
             1562          (iii) contact information for the charter school during the transition.
             1563          (3) A closing charter school shall:
             1564          (a) present a school closure plan to its [chartering entity] authorizer as soon as possible
             1565      after the decision to close is made;
             1566          (b) designate a custodian for the protection of student files and school business records;
             1567          (c) maintain a base of operation throughout the charter school closing, including:
             1568          (i) an office;
             1569          (ii) hours of operation; and
             1570          (iii) operational telephone service with voice messaging stating the hours of operation;
             1571          (d) maintain insurance coverage and risk management coverage throughout the
             1572      transition to closure and for a period following closure of the charter school as specified by the
             1573      [chartering entity] authorizer;
             1574          (e) complete a financial audit immediately after the decision to close is made;
             1575          (f) inventory all assets of the charter school;
             1576          (g) list all creditors of the charter school and specifically identify secured creditors and
             1577      assets that are security interests; and


             1578          (h) protect all school assets against theft, misappropriation, and deterioration.
             1579          (4) (a) Any assets held subject to written conditions or limitations in accordance with
             1580      Section 53A-1a-517 shall be disposed of in accordance with those conditions or limitations.
             1581          (b) All liabilities and obligations of the closing charter school shall be paid and
             1582      discharged or adequate provisions shall be made to discharge the liabilities and obligations to
             1583      the extent of the closing school's assets.
             1584          (c) (i) The remaining assets shall be returned to the closing charter school's [chartering
             1585      entity] authorizer.
             1586          (ii) The [chartering entity] authorizer may liquidate assets at fair market value or assign
             1587      the assets to another public school.
             1588          (5) To the extent possible, all leases, service agreements, and other contracts not
             1589      necessary for the transition of the closing charter school should be terminated.
             1590          (6) The closing charter school shall submit all documentation required by its
             1591      [chartering entity] authorizer, including documents to verify its compliance with procedural
             1592      requirements as well as satisfaction of all financial issues.
             1593          (7) When the closing charter school's financial affairs are closed out and dissolution is
             1594      complete, the [chartering entity] authorizer shall ensure that a final audit of the charter school
             1595      is completed.
             1596          (8) The State Board of Education may make rules that provide additional closure
             1597      requirements upon charter schools or that specify elements of charter school closure plans.
             1598          Section 20. Section 53A-1a-512 is amended to read:
             1599           53A-1a-512. Employees of charter schools.
             1600          (1) A charter school shall select its own employees.
             1601          (2) The school's governing [body] board shall determine the level of compensation and
             1602      all terms and conditions of employment, except as otherwise provided in Subsections (7) and
             1603      (8) and under this part.
             1604          (3) The following statutes governing public employees and officers do not apply to a
             1605      charter school:
             1606          (a) Chapter 8a, Public Education Human Resource Management Act; and
             1607          (b) Title 52, Chapter 3, Prohibiting Employment of Relatives.
             1608          (4) (a) To accommodate differentiated staffing and better meet student needs, a charter


             1609      school, under rules adopted by the State Board of Education, shall employ teachers who:
             1610          (i) are licensed; or
             1611          (ii) on the basis of demonstrated competency, would qualify to teach under alternative
             1612      certification or authorization programs.
             1613          (b) The school's governing [body] board shall disclose the qualifications of its teachers
             1614      to the parents of its students.
             1615          (5) State Board of Education rules governing the licensing or certification of
             1616      administrative and supervisory personnel do not apply to charter schools.
             1617          (6) (a) An employee of a school district may request a leave of absence in order to
             1618      work in a charter school upon approval of the local school board.
             1619          (b) While on leave, the employee may retain seniority accrued in the school district and
             1620      may continue to be covered by the benefit program of the district if the charter school and the
             1621      locally elected school board mutually agree.
             1622          [(7) Except as provided under Subsection (8), an employee of a charter school shall be
             1623      a member of a retirement system or plan under Title 49, Utah State Retirement and Insurance
             1624      Benefit Act.]
             1625          [(8)] (7) (a) [At the time of application for a charter school, whether the chartering
             1626      entity is the State Charter School Board, a local school board, or a board of trustees of a higher
             1627      education institution, a proposed charter] A proposed or authorized charter school may [make
             1628      an election of nonparticipation] elect to participate as an employer for retirement programs
             1629      under:
             1630          (i) Title 49, Chapter 12, Public Employees' Contributory Retirement Act;
             1631          (ii) Title 49, Chapter 13, Public Employees' Noncontributory Retirement Act; and
             1632          (iii) Title 49, Chapter 22, New Public Employees' Tier II Contributory Retirement Act.
             1633          [(b) A charter school that was approved prior to July 1, 2004, may make an election of
             1634      nonparticipation prior to December 31, 2004.]
             1635          [(c)] (b) An election [provided] under this Subsection [(8)] (7):
             1636          [(i) shall be made at the time specified under Subsection (8)(a) or (b);]
             1637          [(ii)] (i) shall be documented by a resolution adopted by the governing [body] board of
             1638      the charter school; and
             1639          [(iii) is in effect unless the charter school makes an irrevocable retraction of the


             1640      election of nonparticipation in accordance with Subsection (9); and]
             1641          [(iv)] (ii) applies to the charter school as the employer and to all employees of the
             1642      charter school.
             1643          [(d)] (c) The governing [body] board of a charter school may offer employee benefit
             1644      plans for its employees:
             1645          (i) under Title 49, Chapter 20, Public Employees' Benefit and Insurance Program Act;
             1646      or
             1647          (ii) under any other program.
             1648          [(9) (a) A charter school that made an election of nonparticipation as an employer for
             1649      the following retirement programs may subsequently make an irrevocable retraction of the
             1650      election of nonparticipation:]
             1651          [(i) Title 49, Chapter 12, Public Employees' Contributory Retirement Act;]
             1652          [(ii) Title 49, Chapter 13, Public Employees' Noncontributory Retirement Act; or]
             1653          [(iii) Title 49, Chapter 22, New Public Employees' Tier II Contributory Retirement
             1654      Act.]
             1655          [(b) A retraction provided under this Subsection (9):]
             1656          [(i) shall be documented by a resolution adopted by the governing body of the charter
             1657      school;]
             1658          [(ii) is a one-time election;]
             1659          [(iii) is irrevocable; and]
             1660          [(iv) applies to the charter school as the employer and to all employees of the charter
             1661      school.]
             1662          (8) A charter school may not revoke an election to participate made under Subsection
             1663      (7).
             1664          [(10)] (9) The governing [body] board of a charter school shall ensure that, prior to the
             1665      beginning of each school year, each of its employees signs a document acknowledging that the
             1666      employee:
             1667          (a) has received:
             1668          (i) the disclosure required under Section 63A-4-204.5 if the charter school participates
             1669      in the Risk Management Fund; or
             1670          (ii) written disclosure similar to the disclosure required under Section 63A-4-204.5 if


             1671      the charter school does not participate in the Risk Management Fund; and
             1672          (b) understands the legal liability protection provided to the employee and what is not
             1673      covered, as explained in the disclosure.
             1674          Section 21. Section 53A-1a-514 is amended to read:
             1675           53A-1a-514. Tort liability.
             1676          (1) An employee of a charter school is a public employee and the governing [body]
             1677      board is a public employer in the same manner as a local school board for purposes of tort
             1678      liability.
             1679          (2) The governing [body] board of a charter school, the nonprofit corporation under
             1680      which the charter school is organized and managed, and the school are solely liable for any
             1681      damages resulting from a legal challenge involving the operation of the school.
             1682          Section 22. Section 53A-1a-515 is amended to read:
             1683           53A-1a-515. Charters authorized by local school boards -- Application process --
             1684      Local school board responsibilities.
             1685          (1) (a) [Individuals and entities] An applicant identified in Section 53A-1a-504 may
             1686      [enter into an agreement with] submit an application to a local school board to establish and
             1687      operate a charter school within the geographical boundaries of the school district administered
             1688      by the local school board.
             1689          (b) (i) The principal, teachers, or parents of students at an existing public school may
             1690      submit an application to the local school board to convert the school or a portion of the school
             1691      to charter status.
             1692          (A) If the entire school is applying for charter status, at least two-thirds of the licensed
             1693      educators employed at the school and at least two-thirds of the parents or guardians of students
             1694      enrolled at the school must have signed a petition approving the application prior to its
             1695      submission to the charter school authorizer.
             1696          (B) If only a portion of the school is applying for charter status, the percentage is
             1697      reduced to a simple majority.
             1698          (ii) The local school board may not approve an application submitted under Subsection
             1699      (1)(b)(i) unless the local school board determines that:
             1700          (A) students opting not to attend the proposed converted school would have access to a
             1701      comparable public education alternative; and


             1702          (B) current teachers who choose not to teach at the converted charter school or who are
             1703      not retained by the school at the time of its conversion would receive a first preference for
             1704      transfer to open teaching positions for which they qualify within the school district, and, if no
             1705      positions are open, contract provisions or board policy regarding reduction in staff would
             1706      apply.
             1707          (2) (a) An existing public school that converts to charter status under a charter granted
             1708      by a local school board may:
             1709          (i) continue to receive the same services from the school district that it received prior to
             1710      its conversion; or
             1711          (ii) contract out for some or all of those services with other public or private providers.
             1712          (b) Any other charter school authorized by a local school board may contract with the
             1713      board to receive some or all of the services referred to in Subsection (3)(a).
             1713a      H. (c) Except as specified in a charter agreement, local school board assets do not transfer
             1713b      to an existing public school that converts to charter status under a charter granted by a local
             1713c      school board under this section. .H
             1714          (3) (a) (i) A public school that converts to a charter school under a charter granted by a
             1715      local school board shall receive funding:
             1716          (A) through the school district; and
             1717          (B) on the same basis as it did prior to its conversion to a charter school.
             1718          (ii) The school may also receive federal money designated for charter schools under
             1719      any federal program.
             1720          (b) (i) A local school board-authorized charter school operating in a facility owned by
             1721      the school district and not paying reasonable rent to the school district shall receive funding:
             1722          (A) through the school district; and
             1723          (B) on the same basis that other district schools receive funding.
             1724          (ii) The school may also receive federal money designated for charter schools under
             1725      any federal program.
             1726          (c) Subject to the provisions in Section 53A-1a-502.5 , a charter school authorized by a
             1727      local school board shall receive funding as provided in Section 53A-1a-513 .
             1728          (d) (i) A charter school authorized by a local school board, but not described in
             1729      Subsection (3)(a), (b), or (c) shall receive funding:
             1730          (A) through the school district; and
             1731          (B) on the same basis that other district schools receive funding.
             1732          (ii) The school may also receive federal money designated for charter schools under


             1733      any federal program.
             1734          (4) (a) A local school board that receives an application for a charter school under this
             1735      section shall, within 45 days, either accept or reject the application.
             1736          (b) If the board rejects the application, it shall notify the applicant in writing of the
             1737      reason for the rejection.
             1738          (c) The applicant may submit a revised application for reconsideration by the board.
             1739          (d) If the local school board refuses to authorize the applicant, the applicant may seek a
             1740      charter from the State Charter School Board under Section 53A-1a-505 .
             1741          (5) The State Board of Education shall make a rule providing for a timeline for the
             1742      opening of a charter school following the approval of a charter school application by a local
             1743      school board.
             1744          (6) [(a)] After approval of a charter school application[,] and in accordance with
             1745      Section 53A-1a-508 , the applicant and the local school board shall set forth the terms and
             1746      conditions for the operation of the charter school in a written [contractual] charter agreement.
             1747          [(b) The agreement is the school's charter.]
             1748          (7) A local school board shall:
             1749          (a) annually review and evaluate the performance of charter schools authorized by the
             1750      local school board and hold the schools accountable for their performance;
             1751          (b) monitor charter schools authorized by the local school board for compliance with
             1752      federal and state laws, rules, and regulations; and
             1753          (c) provide technical support to charter schools authorized by the local school board to
             1754      assist them in understanding and performing their charter obligations.
             1755          (8) A local school board may terminate a charter school it authorizes as provided in
             1756      Sections 53A-1a-509 and 53A-1a-510 .
             1757          (9) In addition to the exemptions described in Sections 53A-1a-511 and 53A-1a-512 , a
             1758      charter school authorized by a local school board is:
             1759          (a) not required to separately submit a report or information required under this title to
             1760      the State Board of Education if the information is included in a report or information that is
             1761      submitted by the local school board or school district; and
             1762          (b) exempt from the requirement under Section 53A-1a-507 that a charter school shall
             1763      be organized and managed under Title 16, Chapter 6a, Utah Revised Nonprofit Corporation


             1764      Act.
             1765          (10) Before a local school board accepts a charter school application, the local school
             1766      board shall, in accordance with State Board of Education rules, establish and make public the
             1767      local school board's:
             1768          (a) application requirements, in accordance with Section 53A-1a-504 ;
             1769          (b) application process, including timelines, in accordance with this section; and
             1770          (c) minimum academic, financial, and enrollment standards.
             1771          Section 23. Section 53A-1a-517 is amended to read:
             1772           53A-1a-517. Charter school assets.
             1773          (1) (a) A charter school may receive, hold, manage, and use any devise, bequest, grant,
             1774      endowment, gift, or donation of any asset made to the school for any of the purposes of this
             1775      part.
             1776          (b) Unless a donor or grantor specifically provides otherwise in writing, all assets
             1777      described in Subsection (1) shall be presumed to be made to the charter school and shall be
             1778      included in the charter school's assets.
             1779          (2) It is unlawful for any person affiliated with a charter school to demand or request
             1780      any gift, donation, or contribution from a parent, teacher, employee, or other person affiliated
             1781      with the charter school as a condition for employment or enrollment at the school or continued
             1782      attendance at the school.
             1783          (3) All assets purchased with charter school funds shall be included in the charter
             1784      school's assets.
             1785          (4) A charter school may not dispose of its assets in violation of the provisions of this
             1786      part, state board rules, policies of its [chartering entity] charter school authorizer, or its charter,
             1787      including the provisions governing the closure of a charter school under Section 53A-1a-510.5 .
             1788          Section 24. Section 53A-1a-520 is amended to read:
             1789           53A-1a-520. Accountability -- Rules.
             1790          In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, and
             1791      after consultation with chartering entities, the State Board of Education shall make rules that:
             1792          (1) require a charter school to develop an accountability plan, approved by its
             1793      [chartering entity] charter school authorizer, during its first year of operation;
             1794          (2) require [a chartering entity] an authorizer to:


             1795          (a) visit a charter school at least once during:
             1796          (i) its first year of operation; and
             1797          (ii) the review period described under Subsection (3); and
             1798          (b) provide written reports to its charter schools after the visits; and
             1799          (3) establish a review process that is required of a charter school once every five years
             1800      by its [chartering entity] authorizer.
             1801          Section 25. Section 53A-1a-521 is amended to read:
             1802           53A-1a-521. Charter schools authorized by a board of trustees of a higher
             1803      education institution -- Application process -- Board of trustees responsibilities.
             1804          (1) Subject to the approval of the State Board of Education and except as provided in
             1805      Subsection (8), an [individual or entity] applicant identified in Section 53A-1a-504 may enter
             1806      into an agreement with a board of trustees of a higher education institution authorizing the
             1807      [individual or entity] applicant to establish and operate a charter school.
             1808          (2) (a) An [individual or entity identified in Section 53A-1a-504 ] applicant applying
             1809      for authorization from a board of trustees [of a higher education institution] to establish and
             1810      operate a charter school shall provide a copy of the application to the State Charter School
             1811      Board and the local school board of the school district in which the proposed charter school
             1812      shall be located either before or at the same time [it files its] the applicant files the application
             1813      with the board of trustees.
             1814          (b) The State Charter School Board and the local school board may review the
             1815      application and [may] offer suggestions or recommendations to the applicant or the board of
             1816      trustees [of a higher education institution prior to its] before acting on the application.
             1817          (c) The board of trustees [of a higher education institution] shall give due consideration
             1818      to suggestions or recommendations made by the State Charter School Board or the local school
             1819      board under Subsection (2)(b).
             1820          (3) (a) If a board of trustees [of a higher education institution] approves an application
             1821      to establish and operate a charter school, the board of trustees shall submit the application to
             1822      the State Board of Education.
             1823          (b) The State Board of Education shall, by majority vote, within 60 days of receipt of
             1824      the application, approve or deny an application approved by a board of trustees [of a higher
             1825      education institution].


             1826          (c) The State Board of Education's action under Subsection (3)(b) is final action subject
             1827      to judicial review.
             1828          (4) The State Board of Education shall make a rule providing a timeline for the
             1829      opening of a charter school following the approval of a charter school application by a board of
             1830      trustees [of a higher education institution].
             1831          (5) [(a)] After approval of a charter school application, the applicant and the board of
             1832      trustees [of a higher education institution] shall set forth the terms and conditions for the
             1833      operation of the charter school in a written [contractual] charter agreement.
             1834          [(b) The agreement is the school's charter.]
             1835          (6) (a) The school's charter may include a provision that the charter school pay an
             1836      annual fee for the board of trustees' costs in providing oversight of, and technical support to,
             1837      the charter school in accordance with Subsection (7).
             1838          (b) In the first two years that a charter school is in operation, an annual fee described in
             1839      Subsection (6)(a) may not exceed the product of 3% of the revenue the charter school receives
             1840      from the state in the current fiscal year.
             1841          (c) Beginning with the third year that a charter school is in operation, an annual fee
             1842      described in Subsection (6)(a) may not exceed the product of 1% of the revenue a charter
             1843      school receives from the state in the current fiscal year.
             1844          (d) An annual fee described in Subsection (6)(a) shall be:
             1845          (i) paid to the board of trustees' higher education institution; and
             1846          (ii) expended as directed by the board of trustees.
             1847          (7) A board of trustees [of a higher education institution] shall:
             1848          (a) annually review and evaluate the performance of charter schools authorized by the
             1849      board of trustees and hold the schools accountable for their performance;
             1850          (b) monitor charter schools authorized by the board of trustees for compliance with
             1851      federal and state laws, rules, and regulations; and
             1852          (c) provide technical support to charter schools authorized by the board of trustees to
             1853      assist them in understanding and performing their charter obligations.
             1854          (8) (a) In addition to complying with the requirements of this section, a campus board
             1855      of directors of a college campus within the Utah College of Applied Technology shall obtain
             1856      the approval of the Utah College of Applied Technology Board of Trustees before entering into


             1857      an agreement to establish and operate a charter school.
             1858          (b) If a campus board of directors of a college campus with the Utah College of
             1859      Applied Technology approves an application to establish and operate a charter school, the
             1860      campus board of directors of the college campus shall submit the application to the Utah
             1861      College of Applied Technology Board of Trustees.
             1862          (c) The Utah College of Applied Technology Board of Trustees shall, by majority vote,
             1863      within 60 days [or] of receipt of the application, approve or deny the application approved by
             1864      the campus board of directors.
             1865          (d) The Utah College of Applied Technology Board of Trustees may deny an
             1866      application approved by a campus board of directors if the proposed charter school does not
             1867      accomplish a purpose of charter schools as provided in Section 53A-1a-503 .
             1868          (e) A charter school application may not be denied on the basis that the establishment
             1869      of the charter school will have any or all of the following impacts on a public school, including
             1870      another charter school:
             1871          (i) an enrollment decline;
             1872          (ii) a decrease in funding; or
             1873          (iii) a modification of programs or services.
             1874          (9) (a) Subject to the requirements of this part, a campus board of directors of a college
             1875      campus within the Utah College of Applied Technology may establish:
             1876          (i) procedures for submitting applications to establish and operate a charter school to a
             1877      campus board of directors of a college campus within the Utah College of Applied Technology;
             1878      and
             1879          (ii) criteria for a campus board of directors' approval of an application to establish and
             1880      operate a charter school.
             1881          (b) The Utah College of Applied Technology Board of Trustees may not establish
             1882      policy governing the procedures or criteria described in Subsection (9)(a).
             1883          (10) Before a board of trustees accepts a charter school application, the board of
             1884      trustees shall, in accordance with State Board of Education rules, establish and make public the
             1885      board of trustees':
             1886          (a) application requirements, in accordance with Section 53A-1a-504 ;
             1887          (b) application process, including timelines, in accordance with this section; and


             1888          (c) minimum academic, financial, and enrollment standards.
             1889          Section 26. Section 53A-20b-201 is amended to read:
             1890           53A-20b-201. Charter School Credit Enhancement Program -- Standards for the
             1891      designation of qualifying charter schools -- Debt service reserve fund requirements.
             1892          (1) There is created the Charter School Credit Enhancement Program to assist
             1893      qualifying charter schools in obtaining favorable financing by providing a means of
             1894      replenishing a qualifying charter school's debt service reserve fund.
             1895          (2) The authority shall establish standards for a charter school to be designated as a
             1896      qualifying charter school.
             1897          (3) In establishing the standards described in Subsection (2) the authority shall
             1898      consider:
             1899          (a) whether a charter school has received an investment grade rating, independent of
             1900      any rating enhancement resulting from the issuance of bonds pursuant to the credit
             1901      enhancement program;
             1902          (b) the location of the charter school's project;
             1903          (c) the operating history of the charter school;
             1904          (d) the financial strength of the charter school; and
             1905          (e) any other criteria the authority determines are relevant.
             1906          (4) The bonds issued by the authority for a qualifying charter school are not an
             1907      indebtedness of the state or of the authority but are special obligations payable solely from:
             1908          (a) the revenues or other funds pledged by the qualifying charter school; and
             1909          (b) amounts appropriated by the Legislature pursuant to Subsection (9).
             1910          (5) The authority shall notify the [chartering entity] authorizer of a charter school that
             1911      the charter school is participating in the credit enhancement program if the authority:
             1912          (a) designates the charter school as a qualifying charter school; and
             1913          (b) issues bonds for the qualifying charter school under the credit enhancement
             1914      program.
             1915          (6) One or more debt service reserve funds shall be established for a qualifying charter
             1916      school with respect to bonds issued pursuant to the credit enhancement program.
             1917          (7) (a) Except as provided in Subsection (7)(b), money in a debt service reserve fund
             1918      may not be withdrawn from the debt service reserve fund if the amount withdrawn would


             1919      reduce the level of money in the debt service reserve fund to less than the debt service reserve
             1920      fund requirement.
             1921          (b) So long as the applicable bonds issued under the credit enhancement program
             1922      remain outstanding, money in a debt service reserve fund may be withdrawn in an amount that
             1923      would reduce the level of money in the debt service reserve fund to less than the debt service
             1924      reserve fund requirement if the money is withdrawn for the purpose of:
             1925          (i) paying the principal of, redemption price of, or interest on a bond when due and if
             1926      no other money of the qualifying charter school is available to make the payment, as
             1927      determined by the authority; or
             1928          (ii) paying any redemption premium required to be paid when the bonds are redeemed
             1929      prior to maturity if no bonds will remain outstanding upon payment from the funds in the
             1930      qualifying charter school's debt service reserve fund.
             1931          (8) Money in a qualifying charter school's debt service reserve fund that exceeds the
             1932      debt service reserve fund requirement may be withdrawn by the qualifying charter school.
             1933          (9) (a) The authority shall annually, on or before December 1, certify to the governor
             1934      the amount, if any, required to restore amounts on deposit in the debt service reserve funds of
             1935      qualifying charter schools to the respective debt service reserve fund requirements.
             1936          (b) The governor shall request from the Legislature an appropriation of the certified
             1937      amount to restore amounts on deposit in the debt service reserve funds of qualifying charter
             1938      schools to the respective debt service reserve fund requirements.
             1939          (c) The Legislature may appropriate money to the authority to restore amounts on
             1940      deposit in the debt service reserve funds of qualifying charter schools to the respective debt
             1941      service reserve fund requirements.
             1942          (d) A qualifying charter school that receives money from an appropriation to restore
             1943      amounts on deposit in a debt service reserve fund to the debt service reserve fund requirement,
             1944      shall repay the state at the time and in the manner as the authority shall require.
             1945          (10) The authority may create and establish other funds for its purposes.
             1945a      H. Section 27. Coordinating H.B. 419 with S.B. 171--Technical amendments.
             1945b      If this H.B. 419 and S.B. 171, Student-Centered Learning Pilot Program, both pass and
             1945c      become law, it is the intent of the Legislature that the Office of Legislative Research and
             1945d      General Counsel in preparing the Utah Code database for publication, modify
             1945e      Subsection 53A-1a-508(3) to read:
             1945f          "(3) (a) Except as provided in Subsection (3)(b), a charter agreement may not be
             1945g      modified except by mutual agreement between the charter school authorizer and the


             1945h      governing board of the charter school.
             1945i           (b) (i) Subject to Subsection (3)(c), at the request of the governing board of a charter
             1945j      school that is selected to participate in the Student-Centered Learning Pilot Program created
             1945k      in Section 53A-15-1403, the charter school's authorizer shall attach an addendum to the
             1945l      school's charter indicating the charter is modified to be consistent with the requirements of the
             1945m      Student-Centered Learning Pilot Program and describing those modifications.
             1945n          (ii) A charter school authorizer shall make the modifications described in Subsection
             1945o      (3)(b)(i) without requiring the charter school to participate in a charter amendment process.
             1945p          (c) (i) If an increase in a charter school's enrollment capacity is required to participate
             1945q      in the Student-Centered Learning Pilot Program, the charter school shall submit a request for
             1945r      an increase in enrollment capacity to the State Board of Education.
             1945s          (ii) The State Board of Education may approve an increase in enrollment capacity for
             1945t      the charter school subject to the availability of sufficient funds appropriated under Section
             1945u      53A-1a-513." .H





Legislative Review Note
    as of 2-26-14 7:59 AM


Office of Legislative Research and General Counsel


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