1     
EDUCATION MODIFICATIONS

2     
2015 GENERAL SESSION

3     
STATE OF UTAH

4     
Chief Sponsor: Wayne L. Niederhauser

5     
House Sponsor: Bradley G. Last

6     

7     LONG TITLE
8     General Description:
9          This bill enacts and amends provisions related to public education.
10     Highlighted Provisions:
11          This bill:
12          ▸     defines terms;
13          ▸     requires the State Board of Education to designate low performing schools, subject
14     to certain conditions;
15          ▸     requires a local school board to take certain actions to turn around a low performing
16     district school;
17          ▸     requires a charter school authorizer and a charter school governing board to take
18     certain actions to turn around a low performing charter school;
19          ▸     directs the State Board of Education to:
20               •     select independent school turnaround experts, through a request for proposals
21     process;
22               •     review and approve school turnaround plans submitted by a local school board
23     or charter school governing board; and
24               •     make rules imposing certain consequences on a school district or charter school
25     that fails to improve the school grade of a low performing school within a
26     certain amount of time;
27          ▸     creates the School Recognition and Reward Program to provide incentives to
28     schools and educators to improve the school grade of a low performing school;
29          ▸     creates the School Leadership Development Program to increase the number of

30     highly effective school leaders capable of initiating, achieving, and sustaining school
31     improvement efforts;
32          ▸     requires the State Board of Education to annually report to the Education Interim
33     Committee;
34          ▸     allows the State Board of Education to use certain nonlapsing funds, remaining at
35     the end of fiscal year 2015, for certain purposes; and
36          ▸     makes technical and conforming changes.
37     Money Appropriated in this Bill:
38          This bill appropriates in fiscal year 2016:
39          ▸     to the State Board of Education - State Office of Education - Initiative Programs, as
40     an ongoing appropriation:
41               •     from the Education Fund, $7,000,000; and
42          ▸     to the State Board of Education - State Office of Education - Initiative Programs, as
43     a one-time appropriation:
44               •     from the Education Fund, $1,000,000.
45     Other Special Clauses:
46          This bill provides a special effective date.
47     Utah Code Sections Affected:
48     AMENDS:
49          53A-1a-108.5, as enacted by Laws of Utah 2002, Chapter 324
50          53A-1a-510, as last amended by Laws of Utah 2014, Chapter 363
51          53A-17a-105, as last amended by Laws of Utah 2013, Chapter 310
52     ENACTS:
53          53A-1-1201, Utah Code Annotated 1953
54          53A-1-1202, Utah Code Annotated 1953
55          53A-1-1203, Utah Code Annotated 1953
56          53A-1-1204, Utah Code Annotated 1953
57          53A-1-1205, Utah Code Annotated 1953

58          53A-1-1206, Utah Code Annotated 1953
59          53A-1-1207, Utah Code Annotated 1953
60          53A-1-1208, Utah Code Annotated 1953
61          53A-1-1209, Utah Code Annotated 1953
62          53A-1-1210, Utah Code Annotated 1953
63     

64     Be it enacted by the Legislature of the state of Utah:
65          Section 1. Section 53A-1-1201 is enacted to read:
66     
Part 12. School Turnaround and Leadership Development Act

67          53A-1-1201. Title.
68          This part is known as the "School Turnaround and Leadership Development Act."
69          Section 2. Section 53A-1-1202 is enacted to read:
70          53A-1-1202. Definitions.
71          As used in this part:
72          (1) "Board" means the State Board of Education.
73          (2) "Charter school authorizer" means the same as that term is defined in Section
74     53A-1a-501.3.
75          (3) "District school" means a public school under the control of a local school board
76     elected under Title 20A, Chapter 14, Nomination and Election of State and Local School
77     Boards.
78          (4) "Educator" means the same as that term is defined in Section 53A-6-103.
79          (5) "Initial remedial year" means the year in which a district school or charter school is
80     designated as a low performing school under Section 53A-1-1203.
81          (6) "Low performing school" means a district school or charter school that has been
82     designated a low performing school by the board because the school is:
83          (a) in the lowest performing 3% of schools statewide according to the percentage of
84     possible points earned under the school grading system; and
85          (b) a low performing school according to other outcome-based measures as may be

86     defined in rules made by the board in accordance with Title 63G, Chapter 3, Utah
87     Administrative Rulemaking Act.
88          (7) "School grade" or "grade" means the letter grade assigned to a school under the
89     school grading system.
90          (8) "School grading system" means the system established under Part 11, School
91     Grading Act, of assigning letter grades to schools.
92          (9) "Statewide assessment" means a test of student achievement in English language
93     arts, mathematics, or science, including a test administered in a computer adaptive format that
94     is administered statewide under Part 6, Achievement Tests.
95          Section 3. Section 53A-1-1203 is enacted to read:
96          53A-1-1203. State Board of Education to designate low performing schools.
97          On or before August 15, the board shall annually designate a school as a low
98     performing school if the school is:
99          (1) in the lowest performing 3% of schools statewide according to the percentage of
100     possible points earned under the school grading system; and
101          (2) a low performing school according to other outcome-based measures as may be
102     defined in rules made by the board in accordance with Title 63G, Chapter 3, Utah
103     Administrative Rulemaking Act.
104          Section 4. Section 53A-1-1204 is enacted to read:
105          53A-1-1204. Required action to turn around a low performing district school.
106          (1) On or before October 1 of an initial remedial year, a local school board of a low
107     performing school shall establish a school turnaround committee composed of the following
108     members:
109          (a) the local school board member who represents the voting district where the low
110     performing school is located;
111          (b) the school principal;
112          (c) three parents of students enrolled in the low performing school appointed by the
113     chair of the school community council;

114          (d) one teacher at the low performing school appointed by the principal; and
115          (e) one teacher at the low performing school appointed by the school district
116     superintendent.
117          (2) (a) Subject to Subsection (2)(b), on or before October 15 of an initial remedial year,
118     a local school board of a low performing school shall partner with the school turnaround
119     committee to select an independent school turnaround expert from the experts identified by the
120     board under Section 53A-1-1206.
121          (b) A local school board may not select an independent school turnaround expert that
122     is:
123          (i) the school district; or
124          (ii) an employee of the school district.
125          (3) A school turnaround committee shall partner with the independent school
126     turnaround expert selected under Subsection (2) to develop and implement a school turnaround
127     plan that includes:
128          (a) the findings of the analysis conducted by the independent school turnaround expert
129     described in Subsection 53A-1-1206(1)(a);
130          (b) recommendations regarding changes to the low performing school's personnel,
131     culture, curriculum, assessments, instructional practices, governance, leadership, finances,
132     policies, or other areas that may be necessary to implement the school turnaround plan;
133          (c) measurable student achievement goals and objectives;
134          (d) a professional development plan that identifies a strategy to address problems of
135     instructional practice;
136          (e) a detailed budget specifying how the school turnaround plan will be funded;
137          (f) a plan to assess and monitor progress;
138          (g) a plan to communicate and report data on progress to stakeholders; and
139          (h) a timeline for implementation.
140          (4) A local school board of a low performing school shall:
141          (a) prioritize school district funding and resources to the low performing school; and

142          (b) grant the low performing school streamlined authority over staff, schedule, policies,
143     budget, and academic programs to implement the school turnaround plan.
144          (5) (a) On or before March 1 of an initial remedial year, a school turnaround committee
145     shall submit the school turnaround plan to the local school board for approval.
146          (b) Except as provided in Subsection (5)(c), on or before April 1 of an initial remedial
147     year, a local school board of a low performing school shall submit the school turnaround plan
148     to the board for approval.
149          (c) If the local school board does not approve the school turnaround plan submitted
150     under Subsection (5)(a), the school turnaround committee may appeal the disapproval in
151     accordance with rules made by the board as described in Subsection 53A-1-1206(5).
152          Section 5. Section 53A-1-1205 is enacted to read:
153          53A-1-1205. Required action to terminate or turn around a low performing
154     charter school.
155          (1) On or before August 20 of an initial remedial year, a charter school authorizer of a
156     low performing school shall initiate a review to determine whether the charter school is in
157     compliance with the school's charter agreement described in Section 53A-1a-508, including the
158     school's established minimum standards for student achievement.
159          (2) If a low performing school is found to be out of compliance with the school's
160     charter agreement, the charter school authorizer may terminate the school's charter in
161     accordance with Section 53A-1a-510.
162          (3) A charter school authorizer shall make a determination on the status of a low
163     performing school's charter under Subsection (2) on or before September 15 of an initial
164     remedial year.
165          (4) If a charter school authorizer does not terminate a low performing school's charter
166     under Subsection (2), a charter school governing board of a low performing school shall:
167          (a) on or before October 1 of an initial remedial year, establish a school turnaround
168     committee composed of the following members:
169          (i) a member of the charter school governing board, appointed by the chair of the

170     charter school governing board;
171          (ii) the school principal;
172          (iii) three parents of students enrolled in the low performing school, appointed by the
173     chair of the charter school governing board; and
174          (iv) two teachers at the low performing school, appointed by the school principal; and
175          (b) subject to Subsection (5), on or before October 15 of an initial remedial year, in
176     partnership with the school turnaround committee, select an independent school turnaround
177     expert from the experts identified by the board under Section 53A-1-1206.
178          (5) A charter school governing board may not select a school turnaround expert that:
179          (a) is a member of the charter school governing board;
180          (b) is an employee of the charter school; or
181          (c) has a contract to operate the charter school.
182          (6) A school turnaround committee shall partner with the independent school
183     turnaround expert selected under Subsection (4)(b) to develop and implement a school
184     turnaround plan that includes the elements described in Subsection 53A-1-1204(3).
185          (7) (a) On or before March 1 of an initial remedial year, a school turnaround committee
186     shall submit the school turnaround plan to the charter school governing board for approval.
187          (b) Except as provided in Subsection (7)(c), on or before April 1 of an initial remedial
188     year, a charter school governing board of a low performing school shall submit the school
189     turnaround plan to the board for approval.
190          (c) If the charter school governing board does not approve the school turnaround plan
191     submitted under Subsection (7)(a), the school turnaround committee may appeal the
192     disapproval in accordance with rules made by the board as described in Subsection
193     53A-1-1206(5).
194          Section 6. Section 53A-1-1206 is enacted to read:
195          53A-1-1206. State Board of Education to identify independent school turnaround
196     experts -- Review and approval of school turnaround plans -- Appeals process.
197          (1) On or before August 30, the board shall identify two or more approved independent

198     school turnaround experts, through a request for proposals process, that a low performing
199     school may select from to partner with to:
200          (a) collect and analyze data on the low performing school's student achievement,
201     personnel, culture, curriculum, assessments, instructional practices, governance, leadership,
202     finances, and policies;
203          (b) recommend changes to the low performing school's culture, curriculum,
204     assessments, instructional practices, governance, finances, policies, or other areas based on
205     data collected under Subsection (1)(a);
206          (c) develop and implement, in partnership with the school turnaround committee, a
207     school turnaround plan that meets the criteria described in Subsection 53A-1-1204(3);
208          (d) monitor the effectiveness of a school turnaround plan through reliable means of
209     evaluation, including on-site visits, observations, surveys, analysis of student achievement data,
210     and interviews;
211          (e) provide ongoing implementation support and project management for a school
212     turnaround plan;
213          (f) provide high-quality professional development personalized for school staff that is
214     designed to build the:
215          (i) leadership capacity of the school principal; and
216          (ii) instructional capacity of school staff; and
217          (g) leverage support from community partners to coordinate an efficient delivery of
218     supports to students both inside and outside the classroom.
219          (2) In identifying independent school turnaround experts under Subsection (1), the
220     board shall identify experts that:
221          (a) have a credible track record of improving student academic achievement in public
222     schools with various demographic characteristics, as measured by statewide assessments;
223          (b) have experience designing, implementing, and evaluating data-driven instructional
224     systems in public schools;
225          (c) have experience coaching public school administrators and teachers on designing

226     data-driven school improvement plans;
227          (d) have experience working with the various education entities that govern public
228     schools;
229          (e) have experience delivering high-quality professional development in instructional
230     effectiveness to public school administrators and teachers;
231          (f) are willing to be compensated for professional services based on performance as
232     described in Subsection (3); and
233          (g) are willing to partner with any low performing school in the state, regardless of
234     location.
235          (3) (a) When awarding a contract to an independent school turnaround expert selected
236     by a local school board under Subsection 53A-1-1204(2) or by a charter school governing
237     board under Subsection 53A-1-1205(4)(b), the board shall ensure that a contract between the
238     board and the independent school turnaround expert specifies that the board will:
239          (i) pay an independent school turnaround expert no more than 50% of the expert's
240     professional fees at the beginning of the independent school turnaround expert's work for the
241     low performing school; and
242          (ii) pay the remainder of the independent school turnaround expert's professional fees
243     upon the independent school turnaround expert successfully helping a low performing school
244     improve the low performing school's grade within three school years after a school is
245     designated a low performing school.
246          (b) In negotiating a contract with an independent school turnaround expert, the board
247     shall offer:
248          (i) differentiated amounts of funding based on student enrollment; and
249          (ii) a higher amount of funding for schools that are in the lowest performing 1% of
250     schools statewide according to the percentage of possible points earned under the school
251     grading system.
252          (4) The board shall:
253          (a) review a school turnaround plan submitted for approval under Subsection

254     53A-1-1204(5)(b) or under Subsection 53A-1-1205(7)(b) within 30 days of submission;
255          (b) approve a school turnaround plan that:
256          (i) is timely;
257          (ii) is well-developed; and
258          (iii) meets the criteria described in Subsection 53A-1-1204(3); and
259          (c) subject to legislative appropriations, provide funding to a low performing school for
260     interventions identified in an approved school turnaround plan if the local school board or
261     charter school governing board provides matching funds or an in-kind contribution of goods or
262     services in an amount equal to the funding the low performing school would receive from the
263     board.
264          (5) (a) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
265     the board shall make rules to establish an appeals process for:
266          (i) a low performing district school that is not granted approval from the district
267     school's local school board under Subsection 53A-1-1204(5)(b);
268          (ii) a low performing charter school that is not granted approval from the charter
269     school's charter school governing board under Subsection 53A-1-1205(7)(b); and
270          (iii) a local school board or charter school governing board that is not granted approval
271     from the board under Subsection (4)(b).
272          (b) The board shall ensure that rules made under Subsection (5)(a) require an appeals
273     process described in:
274          (i) Subsections (5)(a)(i) and (ii) to be resolved on or before April 1 of the initial
275     remedial year; and
276          (ii) Subsection (5)(a)(iii) to be resolved on or before May 15 of the initial remedial
277     year.
278          (6) The board shall balance the need to prioritize funding appropriated by the
279     Legislature to contract with highly qualified independent school turnaround experts with the
280     need to set aside funding for:
281          (a) interventions to facilitate the implementation of a school turnaround plan under

282     Subsection (4)(c); and
283          (b) the School Recognition and Reward Program created under Section 53A-1-1208.
284          Section 7. Section 53A-1-1207 is enacted to read:
285          53A-1-1207. Consequences for failing to improve the school grade of a low
286     performing school.
287          (1) As used in this section, "high performing charter school" means a charter school
288     that:
289          (a) satisfies all requirements of state law and board rules;
290          (b) meets or exceeds standards for student achievement established by the charter
291     school's charter school authorizer; and
292          (c) has received at least a "B" grade under the school grading system in the previous
293     two school years.
294          (2) (a) A low performing school that does not improve the low performing school's
295     grade by at least one letter grade within three school years after the day on which the school is
296     designated a low performing school may petition the board for an extension to continue school
297     improvement efforts for up to two years.
298          (b) The board may only grant an extension under Subsection (2)(a) if the low
299     performing school has increased the number of points awarded under the school grading
300     system by at least:
301          (i) 25% for a school that is not a high school; and
302          (ii) 10% for a high school.
303          (c) The board may extend the contract of an independent school turnaround expert of a
304     low performing school that is granted an extension under this Subsection (2).
305          (d) A school that has been granted an extension under this Subsection (2) is eligible
306     for:
307          (i) continued funding under Subsection 53A-1-1206(4)(c); and
308          (ii) the School Recognition and Reward Program under Section 53A-1-1208.
309          (3) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the

310     board shall make rules establishing consequences for a low performing school that:
311          (a) (i) does not improve the school's grade within three school years after the day on
312     which the school is designated a low performing school; and
313          (ii) is not granted an extension under Subsection (2); or
314          (b) (i) is granted an extension under Subsection (2); and
315          (ii) does not improve the school's grade within two school years after the day on which
316     the low performing school is granted an extension.
317          (4) The board shall ensure that the rules established under Subsection (3) include a
318     mechanism for:
319          (a) restructuring a district school that may include:
320          (i) contract management;
321          (ii) conversion to a charter school; or
322          (iii) state takeover; and
323          (b) restructuring a charter school that may include:
324          (i) termination of a school's charter;
325          (ii) closure of a charter school; or
326          (iii) transferring operation and control of the charter school to:
327          (A) a high performing charter school; or
328          (B) the school district in which the charter school is located.
329          Section 8. Section 53A-1-1208 is enacted to read:
330          53A-1-1208. School Recognition and Reward Program.
331          (1) As used in this section, "eligible school" means a low performing school that:
332          (a) improves the school's grade by at least one grade level within three school years
333     after the day on which the school is designated a low performing school; or
334          (b) (i) has been granted an extension under Subsection 53A-1-1207(2); and
335          (ii) improves the school's grade by at least one grade level within the extension period.
336          (2) The School Recognition and Reward Program is created to provide incentives to
337     schools and educators to improve the school grade of a low performing school.

338          (3) Subject to appropriations by the Legislature, upon the annual release of school
339     grades by the board, the board shall distribute a reward equal to:
340          (a) for an eligible school that improves the eligible school's grade one grade level:
341          (i) $100 per tested student; and
342          (ii) $1,000 per educator;
343          (b) for an eligible school that improves the eligible school's grade two grade levels:
344          (i) $200 per tested student; and
345          (ii) $2,000 per educator;
346          (c) for an eligible school that improves the eligible school's grade three grade levels:
347          (i) $300 per tested student; and
348          (ii) $3,000 per educator; and
349          (d) for an eligible school that improves the eligible school's grade four grade levels:
350          (i) $500 per tested student; and
351          (ii) $5,000 per educator.
352          (4) The principal of an eligible school that receives a reward under Subsection (3), in
353     consultation with the educators at the eligible school, may determine how to use the money in
354     the best interest of the school, including providing bonuses to educators.
355          (5) If the number of qualifying eligible schools exceeds available funds, the board may
356     reduce the amounts specified in Subsection (3).
357          Section 9. Section 53A-1-1209 is enacted to read:
358          53A-1-1209. School Leadership Development Program.
359          (1) As used in this section, "school leader" means a school principal or assistant
360     principal.
361          (2) There is created the School Leadership Development Program to increase the
362     number of highly effective school leaders capable of initiating, achieving, and sustaining
363     school improvement efforts.
364          (3) The board shall identify one or more providers, through a request for proposals
365     process, to develop or provide leadership development training for school leaders that:

366          (a) may provide in-depth training in proven strategies to turn around low performing
367     schools;
368          (b) may emphasize hands-on and job-embedded learning;
369          (c) aligns with the state's leadership standards established by board rule;
370          (d) reflects the needs of a school district or charter school where a school leader serves;
371          (e) may include training on using student achievement data to drive decisions;
372          (f) may develop skills in implementing and evaluating evidence-based instructional
373     practices; and
374          (g) may develop skills in leading collaborative school improvement structures,
375     including professional learning communities.
376          (4) Subject to legislative appropriations, the State Board of Education shall provide
377     incentive pay to a school leader who:
378          (a) completes leadership development training under this section; and
379          (b) agrees to work, for at least five years, in a school that received an "F" grade or "D"
380     grade under the school grading system in the school year previous to the first year the school
381     leader:
382          (i) completes leadership development training; and
383          (ii) begins to work, or continues to work, in a school described in this Subsection
384     (4)(b).
385          (5) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
386     board shall make rules specifying:
387          (a) eligibility criteria for a school leader to participate in the School Leadership
388     Development Program;
389          (b) application procedures for the School Leadership Development Program;
390          (c) criteria for selecting school leaders from the application pool; and
391          (d) procedures for awarding incentive pay under Subsection (4).
392          Section 10. Section 53A-1-1210 is enacted to read:
393          53A-1-1210. Reporting requirement.

394          On or before November 30 of each year, the board shall report to the Education Interim
395     Committee on the provisions of this part.
396          Section 11. Section 53A-1a-108.5 is amended to read:
397          53A-1a-108.5. School improvement plan.
398          (1) (a) Each school community council shall annually evaluate the school's [U-PASS]
399     statewide achievement test results and use the evaluations in developing a school improvement
400     plan.
401          (b) In evaluating [U-PASS] statewide achievement test results and developing a school
402     improvement plan, a school community council may not have access to data that reveal the
403     identity of students.
404          (2) [Each] A school community council shall develop a school improvement plan
405     [shall] that:
406          (a) [identify] identifies the school's most critical academic needs;
407          (b) [recommend] recommends a course of action to meet the identified needs;
408          (c) [list] lists any programs, practices, materials, or equipment that the school will need
409     to implement its action plan to have a direct impact on the instruction of students and result in
410     measurable increased student performance; and
411          (d) [describe] describes how the school intends to enhance or improve academic
412     achievement, including how financial resources available to the school, such as School LAND
413     Trust Program money received under Section 53A-16-101.5 and state and federal grants, will
414     be used to enhance or improve academic achievement.
415          (3) [The] Although a school improvement plan [shall focus] focuses on the school's
416     most critical academic needs [but], the plan may include other actions to enhance or improve
417     academic achievement and the community environment for students.
418          (4) The school principal shall make available to the school community council the
419     school budget and other data needed to develop the school improvement plan.
420          (5) The school improvement plan [shall be] is subject to the approval of the local
421     school board of the school district in which the school is located.

422          (6) A school community council may develop a multiyear school improvement plan,
423     but the plan must be presented to and approved annually by the local school board.
424          (7) Each school shall:
425          (a) implement the school improvement plan as developed by the school community
426     council and approved by the local school board;
427          (b) provide ongoing support for the council's plan; and
428          (c) meet local school board reporting requirements regarding performance and
429     accountability.
430          (8) The school community council of a low performing school, as defined in Section
431     53A-1-1202, shall develop a school improvement plan that is consistent with the school
432     turnaround plan developed by the school turnaround committee under Chapter 1, Part 12,
433     School Turnaround and Leadership Development Act.
434          Section 12. Section 53A-1a-510 is amended to read:
435          53A-1a-510. Termination of a charter.
436          (1) Subject to the requirements of Subsection (3), a charter school authorizer may
437     terminate a school's charter for any of the following reasons:
438          (a) failure of the charter school to meet the requirements stated in the charter;
439          (b) failure to meet generally accepted standards of fiscal management;
440          (c) subject to Subsection (8), failure to make adequate yearly progress under the No
441     Child Left Behind Act of 2001, 20 U.S.C. Sec. 6301 et seq.;
442          (d) (i) designation as a low performing school under Chapter 1, Part 11, School
443     Grading Act; and
444          (ii) failure to improve the school's grade under the conditions described in Chapter 1,
445     Part 12, School Turnaround and Leadership Development Act;
446          [(d)] (e) violation of requirements under this part or another law; or
447          [(e)] (f) other good cause shown.
448          (2) (a) The authorizer shall notify the following of the proposed termination in writing,
449     state the grounds for the termination, and stipulate that the governing board may request an

450     informal hearing before the authorizer:
451          (i) the governing board of the charter school; and
452          (ii) if the charter school is a qualifying charter school with outstanding bonds issued in
453     accordance with Chapter 20b, Part 2, Charter School Credit Enhancement Program, the Utah
454     Charter School Finance Authority.
455          (b) Except as provided in Subsection (2)(e), the authorizer shall conduct the hearing in
456     accordance with Title 63G, Chapter 4, Administrative Procedures Act, within 30 days after
457     receiving a written request under Subsection (2)(a).
458          (c) If the authorizer, by majority vote, approves a motion to terminate a charter school,
459     the governing board of the charter school may appeal the decision to the State Board of
460     Education.
461          (d) (i) The State Board of Education shall hear an appeal of a termination made
462     pursuant to Subsection (2)(c).
463          (ii) The State Board of Education's action is final action subject to judicial review.
464          (e) (i) If the authorizer proposes to terminate the charter of a qualifying charter school
465     with outstanding bonds issued in accordance with Chapter 20b, Part 2, Charter School Credit
466     Enhancement Program, the authorizer shall conduct a hearing described in Subsection (2)(b)
467     120 days or more after notifying the following of the proposed termination:
468          (A) the governing board of the qualifying charter school; and
469          (B) the Utah Charter School Finance Authority.
470          (ii) Prior to the hearing described in Subsection (2)(e)(i), the Utah Charter School
471     Finance Authority shall meet with the authorizer to determine whether the deficiency may be
472     remedied in lieu of termination of the qualifying charter school's charter.
473          (3) An authorizer may not terminate the charter of a qualifying charter school with
474     outstanding bonds issued in accordance with Chapter 20b, Part 2, Charter School Credit
475     Enhancement Program, without mutual agreement of the Utah Charter School Finance
476     Authority and the authorizer.
477          (4) (a) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,

478     the State Board of Education shall make rules that require a charter school to report any threats
479     to the health, safety, or welfare of its students to the State Charter School Board in a timely
480     manner.
481          (b) The rules under Subsection (4)(a) shall also require the charter school report to
482     include what steps the charter school has taken to remedy the threat.
483          (5) Subject to the requirements of Subsection (3), the authorizer may terminate a
484     charter immediately if good cause has been shown or if the health, safety, or welfare of the
485     students at the school is threatened.
486          (6) If a charter is terminated during a school year, the following entities may apply to
487     the charter school's authorizer to assume operation of the school:
488          (a) the school district where the charter school is located;
489          (b) the governing board of another charter school; or
490          (c) a private management company.
491          (7) (a) If a charter is terminated, a student who attended the school may apply to and
492     shall be enrolled in another public school under the enrollment provisions of Chapter 2, Part 2,
493     District of Residency, subject to space availability.
494          (b) Normal application deadlines shall be disregarded under Subsection (7)(a).
495          (8) Subject to the requirements of Subsection (3), an authorizer may terminate a charter
496     pursuant to Subsection (1)(c) under the same circumstances that local educational agencies are
497     required to implement alternative governance arrangements under 20 U.S.C. Sec. 6316.
498          Section 13. Section 53A-17a-105 is amended to read:
499          53A-17a-105. Powers and duties of State Board of Education to adjust Minimum
500     School Program allocations -- Use of remaining funds at the end of a fiscal year.
501          (1) For purposes of this section:
502          (a) "Board" means the State Board of Education.
503          (b) "ESEA" means the Elementary and Secondary Education Act of 1965, 20 U.S.C.
504     Sec. 6301 et seq.
505          (c) "LEA" means:

506          (i) a school district; or
507          (ii) a charter school.
508          (d) "Program" means a program or allocation funded by a line item appropriation or
509     other appropriation designated as:
510          (i) Basic Program;
511          (ii) Related to Basic Programs;
512          (iii) Voted and Board Levy Programs; or
513          (iv) Minimum School Program.
514          [(1)] (2) Except as provided in Subsection [(2)] (3) or [(4)] (5), if the number of
515     weighted pupil units in a program is underestimated, the [State Board of Education] board shall
516     reduce the value of the weighted pupil unit in that program so that the total amount paid for the
517     program does not exceed the amount appropriated for the program.
518          [(2)] (3) If the number of weighted pupil units in a program is overestimated, the [State
519     Board of Education] board shall spend excess money appropriated for the following purposes
520     giving priority to the purpose described in Subsection [(2)] (3)(a):
521          (a) to support the value of the weighted pupil unit in a program within the basic
522     state-supported school program in which the number of weighted pupil units is underestimated;
523          (b) to support the state guarantee per weighted pupil unit provided under the voted
524     local levy program established in Section 53A-17a-133 or the board local levy program
525     established in Section 53A-17a-164, if:
526          (i) local contributions to the voted local levy program or board local levy program are
527     overestimated; or
528          (ii) the number of weighted pupil units within school districts qualifying for a
529     guarantee is underestimated;
530          (c) to support the state supplement to local property taxes allocated to charter schools,
531     if the state supplement is less than the amount prescribed by Subsection 53A-1a-513(4); or
532          (d) to support a school district with a loss in student enrollment as provided in Section
533     53A-17a-139.

534          [(3)] (4) If local contributions from the minimum basic tax rate imposed under Section
535     53A-17a-135 are overestimated, the [State Board of Education] board shall reduce the value of
536     the weighted pupil unit for all programs within the basic state-supported school program so the
537     total state contribution to the basic state-supported school program does not exceed the amount
538     of state funds appropriated.
539          [(4)] (5) If local contributions from the minimum basic tax rate imposed under Section
540     53A-17a-135 are underestimated, the [State Board of Education] board shall:
541          (a) spend the excess local contributions for the purposes specified in Subsection [(2)]
542     (3), giving priority to supporting the value of the weighted pupil unit in programs within the
543     basic state-supported school program in which the number of weighted pupil units is
544     underestimated; and
545          (b) reduce the state contribution to the basic state-supported school program so the
546     total cost of the basic state-supported school program does not exceed the total state and local
547     funds appropriated to the basic state-supported school program plus the local contributions
548     necessary to support the value of the weighted pupil unit in programs within the basic
549     state-supported school program in which the number of weighted pupil units is underestimated.
550          [(5)] (6) Except as provided in Subsection [(2)] (3) or [(4)] (5), the [State Board of
551     Education] board shall reduce the guarantee per weighted pupil unit provided under the voted
552     local levy program established in Section 53A-17a-133 or board local levy program established
553     in Section 53A-17a-164, if:
554          (a) local contributions to the voted local levy program or board local levy program are
555     overestimated; or
556          (b) the number of weighted pupil units within school districts qualifying for a
557     guarantee is underestimated.
558          (7) (a) The board may use program funds as described in Subsection (7)(b) if:
559          (i) the state loses flexibility due to the U.S. Department of Education's rejection of the
560     state's renewal application for flexibility under the ESEA; and
561          (ii) the state is required to fully implement the requirements of Title I of the ESEA, as

562     amended by the No Child Left Behind Act of 2001.
563          (b) Subject to the requirements of Subsections (7)(a) and (c), for fiscal year 2016, after
564     any transfers or adjustments described in Subsections (2) through (6) are made, the board may
565     use up to $15,000,000 of excess money appropriated to a program, remaining at the end of
566     fiscal year 2015, to mitigate a budgetary impact to an LEA due to the LEA's loss of flexibility
567     related to implementing the requirements of Title I of the ESEA, as amended by the No Child
568     Left Behind Act of 2001.
569          (c) In addition to the reporting requirement described in Subsection (9), the board shall
570     report actions taken by the board under this Subsection (7) to the Executive Appropriations
571     Committee.
572          [(6)] (8) Money appropriated to the [State Board of Education] board is nonlapsing.
573          [(7)] (9) The [State Board of Education] board shall report actions taken by the board
574     under this section to the Office of the Legislative Fiscal Analyst and the Governor's Office of
575     Management and Budget.
576          Section 14. Appropriation.
577          Under the terms and conditions of Title 63J, Chapter 1, Budgetary Procedures Act, for
578     the fiscal year beginning July 1, 2015, and ending June 30, 2016, the following sums of money
579     are appropriated from resources not otherwise appropriated, or reduced from amounts
580     previously appropriated, out of the funds or accounts indicated. These sums of money are in
581     addition to any amounts previously appropriated for fiscal year 2016.
582          To State Board of Education - State Office of Education - Initiative Programs
583               From Education Fund
$7,000,000

584               From Education Fund, One-time
$1,000,000

585               Schedule of Programs:
586                    Contracts and Grants - Low Performing Schools     $8,000,000
587          The Legislature intends that:
588          (1) the State Board of Education:
589          (a) may use up to $500,000 of the appropriation under this section for the School

590     Leadership Development Program created under Section 53A-1-1209;
591          (b) shall use, or set aside for future use, at least $1,000,000 of the appropriation under
592     this section for the School Recognition and Reward Program created under Section
593     53A-1-1208; and
594          (c) shall use the remaining funds in accordance with the direction provided in
595     Subsection 53A-1-1206(6); and
596          (2) $7,000,000 of the appropriation under this section is:
597          (a) ongoing; and
598          (b) non-lapsing.
599          Section 15. Effective date.
600          Uncodified Section 14, Appropriation, takes effect on July 1, 2015.