1     
LOCAL SCHOOL ENTITY AMENDMENTS

2     
2017 GENERAL SESSION

3     
STATE OF UTAH

4     
Chief Sponsor: Bruce R. Cutler

5     
Senate Sponsor: Jacob L. Anderegg

6     

7     LONG TITLE
8     General Description:
9          This bill modifies provisions relating to the Minimum School Program Act.
10     Highlighted Provisions:
11          This bill:
12          ▸     amends certain references to education entities in Title 53A, Chapter 17a, Minimum
13     School Program Act;
14          ▸     repeals outdated language; and
15          ▸     makes technical changes.
16     Money Appropriated in this Bill:
17          None
18     Other Special Clauses:
19          None
20     Utah Code Sections Affected:
21     AMENDS:
22          53A-1a-106, as last amended by Laws of Utah 2012, Chapter 315
23          53A-2-214, as last amended by Laws of Utah 2011, Chapter 371
24          53A-17a-103, as last amended by Laws of Utah 2016, Chapter 367
25          53A-17a-105, as last amended by Laws of Utah 2016, Chapter 229
26          53A-17a-105.5, as last amended by Laws of Utah 2016, Chapter 200
27          53A-17a-106, as last amended by Laws of Utah 2001, Chapter 73
28          53A-17a-107, as last amended by Laws of Utah 2008, Chapter 382

29          53A-17a-108, as last amended by Laws of Utah 2010, Chapters 3 and 399
30          53A-17a-109, as last amended by Laws of Utah 2013, Chapter 106
31          53A-17a-111, as last amended by Laws of Utah 2011, Chapter 342
32          53A-17a-111.5, as last amended by Laws of Utah 2003, Chapter 221
33          53A-17a-112, as last amended by Laws of Utah 2011, Chapters 359 and 366
34          53A-17a-113, as last amended by Laws of Utah 2010, Chapter 3
35          53A-17a-116, as last amended by Laws of Utah 2010, Chapter 3
36          53A-17a-119, as last amended by Laws of Utah 2010, Chapter 3
37          53A-17a-124, as last amended by Laws of Utah 2014, Chapter 346
38          53A-17a-124.5, as last amended by Laws of Utah 2016, Chapter 188
39          53A-17a-125, as last amended by Laws of Utah 2010, Chapter 3
40          53A-17a-126, as last amended by Laws of Utah 2016, Chapter 214
41          53A-17a-127, as last amended by Laws of Utah 2011, Chapters 366 and 371
42          53A-17a-133, as last amended by Laws of Utah 2016, Chapters 2, 350, and 367
43          53A-17a-134, as last amended by Laws of Utah 2013, Chapter 178
44          53A-17a-135, as last amended by Laws of Utah 2016, Chapter 2
45          53A-17a-139, as enacted by Laws of Utah 1991, Chapter 72
46          53A-17a-140, as enacted by Laws of Utah 1991, Chapter 72
47          53A-17a-141, as enacted by Laws of Utah 1991, Chapter 72
48          53A-17a-143, as last amended by Laws of Utah 2011, Chapter 371
49          53A-17a-144, as last amended by Laws of Utah 2011, Chapter 342
50          53A-17a-145, as last amended by Laws of Utah 2011, Chapter 371
51          53A-17a-146, as last amended by Laws of Utah 2011, Chapters 371 and 381
52          53A-17a-150, as last amended by Laws of Utah 2016, Chapter 188
53          53A-17a-151, as last amended by Laws of Utah 2011, Chapter 371
54          53A-17a-153, as last amended by Laws of Utah 2010, Chapter 3
55          53A-17a-159, as enacted by Laws of Utah 2008, Chapter 397

56          53A-17a-165, as last amended by Laws of Utah 2015, Chapter 258
57          53A-17a-166, as enacted by Laws of Utah 2011, Chapter 359
58          53A-17a-167, as last amended by Laws of Utah 2015, Chapter 372
59          53A-17a-171, as last amended by Laws of Utah 2016, Chapter 188
60          63J-1-220, as enacted by Laws of Utah 2015, Chapter 407
61     

62     Be it enacted by the Legislature of the state of Utah:
63          Section 1. Section 53A-1a-106 is amended to read:
64          53A-1a-106. School district and individual school powers -- Student
65     education/occupation plan (SEOP) definition.
66          (1) In order to acquire and develop the characteristics listed in Section 53A-1a-104,
67     each school district and each public school within its respective district shall implement a
68     comprehensive system of accountability in which students advance through public schools by
69     demonstrating competency in required skills and mastery of required knowledge through the use
70     of diverse assessment instruments such as authentic and criterion referenced tests, projects, and
71     portfolios.
72          (2) (a) Each school district and public school shall:
73          (i) develop and implement programs integrating technology into the curriculum,
74     instruction, and student assessment;
75          (ii) provide for teacher and parent involvement in policymaking at the school site;
76          (iii) implement a public school choice program to give parents, students, and teachers
77     greater flexibility in designing and choosing among programs with different focuses through
78     schools within the same district and other districts, subject to space availability, demographics,
79     and legal and performance criteria;
80          (iv) establish strategic planning at both the district and school level and site-based
81     decision making programs at the school level;
82          (v) provide opportunities for each student to acquire and develop academic and

83     occupational knowledge, skills, and abilities;
84          (vi) participate in ongoing research and development projects primarily at the school
85     level aimed at improving the quality of education within the system; and
86          (vii) involve business and industry in the education process through the establishment of
87     partnerships with the business community at the district and school level.
88          (b) (i) As used in this title, "student education/occupation plan" or "SEOP" means a
89     plan developed by a student and the student's parent or guardian, in consultation with school
90     counselors, teachers, and administrators that:
91          (A) is initiated at the beginning of grade 7;
92          (B) identifies a student's skills and objectives;
93          (C) maps out a strategy to guide a student's course selection; and
94          (D) links a student to post-secondary options, including higher education and careers.
95          (ii) Each local school board, in consultation with school personnel, parents, and school
96     community councils or similar entities shall establish policies to provide for the effective
97     implementation of a personalized student education plan (SEP) or student education/occupation
98     plan (SEOP) for each student at the school site.
99          (iii) The policies shall include guidelines and expectations for:
100          (A) recognizing the student's accomplishments, strengths, and progress towards
101     meeting student achievement standards as defined in U-PASS;
102          (B) planning, monitoring, and managing education and career development; and
103          (C) involving students, parents, and school personnel in preparing and implementing
104     SEPs and SEOPs.
105          (iv) A parent may request conferences with school personnel in addition to SEP or
106     SEOP conferences established by local school board policy.
107          (v) Time spent during the school day to implement SEPs and SEOPs is considered part
108     of the school term referred to in Subsection 53A-17a-103[(4)](7).
109          (3) A school district or public school may submit proposals to modify or waive rules or

110     policies of a supervisory authority within the public education system in order to acquire or
111     develop the characteristics listed in Section 53A-1a-104.
112          (4) (a) Each school district and public school shall make an annual report to its patrons
113     on its activities under this section.
114          (b) The reporting process shall involve participation from teachers, parents, and the
115     community at large in determining how well the district or school is performing.
116          Section 2. Section 53A-2-214 is amended to read:
117          53A-2-214. Online students' participation in extracurricular activities.
118          (1) As used in this section:
119          (a) "Online education" means the use of information and communication technologies
120     to deliver educational opportunities to a student in a location other than a school.
121          (b) "Online student" means a student who:
122          (i) participates in an online education program sponsored or supported by the State
123     Board of Education, a school district, or charter school; and
124          (ii) generates funding for the school district or school pursuant to Subsection
125     53A-17a-103[(4)](7) and rules of the State Board of Education.
126          (2) An online student is eligible to participate in extracurricular activities at:
127          (a) the school within whose attendance boundaries the student's custodial parent or
128     legal guardian resides; or
129          (b) the public school from which the student withdrew for the purpose of participating
130     in an online education program.
131          (3) A school other than a school described in Subsection (2)(a) or (b) may allow an
132     online student to participate in extracurricular activities other than:
133          (a) interschool competitions of athletic teams sponsored and supported by a public
134     school; or
135          (b) interschool contests or competitions for music, drama, or forensic groups or teams
136     sponsored and supported by a public school.

137          (4) An online student is eligible for extracurricular activities at a public school
138     consistent with eligibility standards as applied to full-time students of the public school.
139          (5) A school district or public school may not impose additional requirements on an
140     online school student to participate in extracurricular activities that are not imposed on full-time
141     students of the public school.
142          (6) (a) The State Board of Education shall make rules establishing fees for an online
143     school student's participation in extracurricular activities at school district schools.
144          (b) The rules shall provide that:
145          (i) online school students pay the same fees as other students to participate in
146     extracurricular activities;
147          (ii) online school students are eligible for fee waivers pursuant to Section 53A-12-103;
148          (iii) for each online school student who participates in an extracurricular activity at a
149     school district school, the online school shall pay a share of the school district's costs for the
150     extracurricular activity; and
151          (iv) an online school's share of the costs of an extracurricular activity shall reflect state
152     and local tax revenues expended, except capital facilities expenditures, for an extracurricular
153     activity in a school district or school divided by total student enrollment of the school district or
154     school.
155          (c) In determining an online school's share of the costs of an extracurricular activity
156     under Subsections (6)(b)(iii) and (iv), the State Board of Education may establish uniform fees
157     statewide based on average costs statewide or average costs within a sample of school districts.
158          (7) When selection to participate in an extracurricular activity at a public school is made
159     on a competitive basis, an online student is eligible to try out for and participate in the activity
160     as provided in this section.
161          Section 3. Section 53A-17a-103 is amended to read:
162          53A-17a-103. Definitions.
163          As used in this chapter:

164          (1) "Basic state-supported school program" or "basic program" means public education
165     programs for kindergarten, elementary, and secondary school students that are operated and
166     maintained for the amount derived by multiplying the number of weighted pupil units for each
167     school district or charter school by the value established each year in statute, except as
168     otherwise provided in this chapter.
169          (2) (a) "Certified revenue levy" means a property tax levy that provides an amount of ad
170     valorem property tax revenue equal to the sum of:
171          (i) the amount of ad valorem property tax revenue to be generated statewide in the
172     previous year from imposing a minimum basic tax rate, as specified in Section 53A-17a-135;
173     and
174          (ii) the product of:
175          (A) eligible new growth, as defined in Section 59-2-924 and rules of the State Tax
176     Commission; and
177          (B) the minimum basic tax rate certified by the State Tax Commission for the previous
178     year.
179          (b) For purposes of this Subsection (2), "ad valorem property tax revenue" does not
180     include property tax revenue received statewide from personal property that is:
181          (i) assessed by a county assessor in accordance with Title 59, Chapter 2, Part 3, County
182     Assessment; and
183          (ii) semiconductor manufacturing equipment.
184          (c) For purposes of calculating the certified revenue levy described in this Subsection
185     (2), the State Tax Commission shall use:
186          (i) the taxable value of real property assessed by a county assessor contained on the
187     assessment roll;
188          (ii) the taxable value of real and personal property assessed by the State Tax
189     Commission; and
190          (iii) the taxable year end value of personal property assessed by a county assessor

191     contained on the prior year's assessment roll.
192          (3) "Charter school governing board" means the governing board, as defined in Section
193     53A-1a-501.3, that governs a charter school.
194          (4) "Local education board" means a local school board or charter school governing
195     board.
196          (5) "Local school board" means a board elected under Title 20A, Chapter 14, Part 2,
197     Election of Members of Local Boards of Education.
198          [(3)] (6) "Pupil in average daily membership (ADM)" means a full-day equivalent pupil.
199          [(4)] (7) (a) "State-supported minimum school program" or "Minimum School
200     Program" means public school programs for kindergarten, elementary, and secondary schools as
201     described in this Subsection [(4)] (7).
202          (b) The minimum school program established in school districts and charter schools
203     shall include the equivalent of a school term of nine months as determined by the State Board of
204     Education.
205          (c) (i) The board shall establish the number of days or equivalent instructional hours
206     that school is held for an academic school year.
207          (ii) Education, enhanced by utilization of technologically enriched delivery systems,
208     when approved by [local school boards or charter school governing boards] a local education
209     board, shall receive full support by the State Board of Education as it pertains to fulfilling the
210     attendance requirements, excluding time spent viewing commercial advertising.
211          (d) (i) A local [school board or charter school governing] education board may
212     reallocate up to 32 instructional hours or four school days established under Subsection [(4)]
213     (7)(c) for teacher preparation time or teacher professional development.
214          (ii) A reallocation of instructional hours or school days under Subsection [(4)] (7)(d)(i)
215     is subject to the approval of two-thirds of the members of a local [school board or charter
216     school governing] education board voting in a regularly scheduled meeting:
217          (A) at which a quorum of the local [school board or charter school governing]

218     education board is present; and
219          (B) held in compliance with Title 52, Chapter 4, Open and Public Meetings Act.
220          (iii) If a local [school board or charter school governing] education board reallocates
221     instructional hours or school days as provided by this Subsection [(4)] (7)(d), the school district
222     or charter school shall notify students' parents and guardians of the school calendar at least 90
223     days before the beginning of the school year.
224          (iv) Instructional hours or school days reallocated for teacher preparation time or
225     teacher professional development pursuant to this Subsection [(4)] (7)(d) is considered part of a
226     school term referred to in Subsection [(4)] (7)(b).
227          (e) The Minimum School Program includes a program or allocation funded by a line
228     item appropriation or other appropriation designated as follows:
229          (i) Basic School Program;
230          (ii) Related to Basic Programs;
231          (iii) Voted and Board Levy Programs; or
232          (iv) Minimum School Program.
233          [(5)] (8) "Weighted pupil unit or units or WPU or WPUs" means the unit of measure of
234     factors that is computed in accordance with this chapter for the purpose of determining the
235     costs of a program on a uniform basis for each school district or charter school.
236          Section 4. Section 53A-17a-105 is amended to read:
237          53A-17a-105. Powers and duties of State Board of Education to adjust Minimum
238     School Program allocations -- Use of remaining funds at the end of a fiscal year.
239          (1) For purposes of this section:
240          (a) "Board" means the State Board of Education.
241          (b) "ESEA" means the Elementary and Secondary Education Act of 1965, 20 U.S.C.
242     Sec. 6301 et seq.
243          [(c) "LEA" means:]
244          [(i) a school district; or]

245          [(ii) a charter school.]
246          [(d)] (c) "Program" means a program or allocation funded by a line item appropriation
247     or other appropriation designated as:
248          (i) Basic Program;
249          (ii) Related to Basic Programs;
250          (iii) Voted and Board Levy Programs; or
251          (iv) Minimum School Program.
252          (2) Except as provided in Subsection (3) or (5), if the number of weighted pupil units in
253     a program is underestimated, the board shall reduce the value of the weighted pupil unit in that
254     program so that the total amount paid for the program does not exceed the amount
255     appropriated for the program.
256          (3) If the number of weighted pupil units in a program is overestimated, the board shall
257     spend excess money appropriated for the following purposes giving priority to the purpose
258     described in Subsection (3)(a):
259          (a) to support the value of the weighted pupil unit in a program within the basic
260     state-supported school program in which the number of weighted pupil units is underestimated;
261          (b) to support the state guarantee per weighted pupil unit provided under the voted
262     local levy program established in Section 53A-17a-133 or the board local levy program
263     established in Section 53A-17a-164, if:
264          (i) local contributions to the voted local levy program or board local levy program are
265     overestimated; or
266          (ii) the number of weighted pupil units within school districts qualifying for a guarantee
267     is underestimated;
268          (c) to support the state supplement to local property taxes allocated to charter schools,
269     if the state supplement is less than the amount prescribed by Section 53A-1a-513; or
270          (d) to support a school district with a loss in student enrollment as provided in Section
271     53A-17a-139.

272          (4) If local contributions from the minimum basic tax rate imposed under Section
273     53A-17a-135 are overestimated, the board shall reduce the value of the weighted pupil unit for
274     all programs within the basic state-supported school program so the total state contribution to
275     the basic state-supported school program does not exceed the amount of state funds
276     appropriated.
277          (5) If local contributions from the minimum basic tax rate imposed under Section
278     53A-17a-135 are underestimated, the board shall:
279          (a) spend the excess local contributions for the purposes specified in Subsection (3),
280     giving priority to supporting the value of the weighted pupil unit in programs within the basic
281     state-supported school program in which the number of weighted pupil units is underestimated;
282     and
283          (b) reduce the state contribution to the basic state-supported school program so the
284     total cost of the basic state-supported school program does not exceed the total state and local
285     funds appropriated to the basic state-supported school program plus the local contributions
286     necessary to support the value of the weighted pupil unit in programs within the basic
287     state-supported school program in which the number of weighted pupil units is underestimated.
288          (6) Except as provided in Subsection (3) or (5), the board shall reduce the guarantee
289     per weighted pupil unit provided under the voted local levy program established in Section
290     53A-17a-133 or board local levy program established in Section 53A-17a-164, if:
291          (a) local contributions to the voted local levy program or board local levy program are
292     overestimated; or
293          (b) the number of weighted pupil units within school districts qualifying for a guarantee
294     is underestimated.
295          [(7) (a) The board may use program funds as described in Subsection (7)(b) if:]
296          [(i) the state loses flexibility due to the U.S. Department of Education's rejection of the
297     state's renewal application for flexibility under the ESEA; and]
298          [(ii) the state is required to fully implement the requirements of Title I of the ESEA, as

299     amended by the No Child Left Behind Act of 2001.]
300          [(b) Subject to the requirements of Subsections (7)(a) and (c), for fiscal year 2016, after
301     any transfers or adjustments described in Subsections (2) through (6) are made, the board may
302     use up to $15,000,000 of excess money appropriated to a program, remaining at the end of
303     fiscal year 2015, to mitigate a budgetary impact to an LEA due to the LEA's loss of flexibility
304     related to implementing the requirements of Title I of the ESEA, as amended by the No Child
305     Left Behind Act of 2001.]
306          [(c) In addition to the reporting requirement described in Subsection (9), the board shall
307     report actions taken by the board under this Subsection (7) to the Executive Appropriations
308     Committee.]
309          [(8)] (7) Money appropriated to the board is nonlapsing.
310          [(9)] (8) The board shall report actions taken by the board under this section to the
311     Office of the Legislative Fiscal Analyst and the Governor's Office of Management and Budget.
312          Section 5. Section 53A-17a-105.5 is amended to read:
313          53A-17a-105.5. Flexibility in the use of program funds.
314          (1) As used in this section, "qualifying program" means:
315          (a) the Enhancement for At-Risk Students Program created in Section 53A-17a-166;
316          (b) the Enhancement for Accelerated Students Program created in Section
317     53A-17a-165; and
318          (c) the concurrent enrollment program established in Section 53A-15-1703.
319          (2) If a school district or charter school receives an allocation of state funds for a
320     qualifying program that is less than $10,000, the [school district or charter school] local
321     education board of the receiving school district or charter school may:
322          (a) (i) combine the funds with one or more qualifying program fund allocations each of
323     which is less than $10,000; and
324          (ii) use the combined funds in accordance with the program requirements for any of the
325     qualifying programs that are combined; or

326          (b) (i) transfer the funds to a qualifying program for which the school district or charter
327     school received an allocation of funds that is greater than or equal to $10,000; and
328          (ii) use the combined funds in accordance with the program requirements for the
329     qualifying program to which the funds are transferred.
330          Section 6. Section 53A-17a-106 is amended to read:
331          53A-17a-106. Determination of weighted pupil units.
332          The number of weighted pupil units in the minimum school program for each year is the
333     total of the units for each school district and, subject to Section 53A-1a-513, charter school,
334     determined as follows:
335          (1) The number of units is computed by adding the average daily membership of all
336     pupils of the school district or charter school attending schools, other than kindergarten and
337     self-contained classes for children with a disability.
338          (2) The number of units is computed by adding the average daily membership of all
339     pupils of the school district or charter school enrolled in kindergarten and multiplying the total
340     by .55.
341          (a) In those school districts or charter schools that do not [elect to] hold kindergarten
342     for a full nine-month term, the local school board or charter school governing board may
343     approve a shorter term of nine weeks' duration.
344          (b) Upon local education board approval, the number of pupils in average daily
345     membership at the short-term kindergarten shall be counted for the purpose of determining the
346     number of units allowed in the same ratio as the number of days the short-term kindergarten is
347     held, not exceeding nine weeks, compared to the total number of days schools are held in that
348     school district or charter school in the regular school year.
349          (3) (a) The State Board of Education shall use prior year plus growth to determine
350     average daily membership in distributing money under the minimum school program where the
351     distribution is based on kindergarten through grade 12 ADMs or weighted pupil units.
352          (b) Under prior year plus growth, kindergarten through grade 12 average daily

353     membership for the current year is based on the actual kindergarten through grade 12 average
354     daily membership for the previous year plus an estimated percentage growth factor.
355          (c) The growth factor is the percentage increase in total average daily membership on
356     the first school day of October in the current year as compared to the total average daily
357     membership on the first school day of October of the previous year.
358          Section 7. Section 53A-17a-107 is amended to read:
359          53A-17a-107. Professional staff weighted pupil units.
360          (1) Professional staff weighted pupil units are computed and distributed in accordance
361     with the following schedule:
362          (a) Professional Staff Cost Formula
363     
Years of
Experience

Bachelor's
Degree

Bachelor's
+30 Qt. Hr.

Master's
Degree
Master's
Degree
+45 Qt. Hr.


Doctorate
364      11.001.051.101.151.20
365      21.051.101.151.201.25
366      31.101.151.201.251.30
367      41.151.201.251.301.35
368      51.201.251.301.351.40
369      61.251.301.351.401.45
370      71.301.351.401.451.50
371      81.351.401.451.501.55
372      91.501.551.60
373      101.601.65
374      111.70
375          (b) Multiply the number of full-time or equivalent professional personnel in each
376     applicable experience category in Subsection (1)(a) by the applicable weighting factor.

377          (c) Divide the total of Subsection (1)(b) by the number of professional personnel
378     included in Subsection (1)(b) and reduce the quotient by 1.00.
379          (d) Multiply the result of Subsection (1)(c) by 1/4 of the weighted pupil units computed
380     in accordance with Sections 53A-17a-106 and 53A-17a-109.
381          (2) The State Board of Education shall enact rules in accordance with Title 63G,
382     Chapter 3, Utah Administrative Rulemaking Act, [which] that require a certain percentage of a
383     school district's or charter school's professional staff to be certified in the area in which [they
384     teach] the staff teaches in order for the school district or charter school to receive full funding
385     under the schedule.
386          (3) If an individual's teaching experience is a factor in negotiating a contract of
387     employment to teach in the state's public schools, then the local [school] education board is
388     encouraged to accept as credited experience all of the years the individual has taught in the
389     state's public schools.
390          Section 8. Section 53A-17a-108 is amended to read:
391          53A-17a-108. Weighted pupil units for small school district administrative costs
392     -- Appropriation for charter school administrative costs.
393          (1) Administrative costs weighted pupil units are computed [and distributed to small
394     school districts] for a small school district and distributed to the small school district in
395     accordance with the following schedule:
396     
Administrative Costs Schedule
397      School District Enrollment as of October 1Weighted Pupil Units
398      1 - 500 students95
399      501 - 1,000 students80
400      1,001 - 2,000 students70
401      2,001 - 5,000 students60
402          (2) (a) Except as provided in Subsection (2)(b), money appropriated to the State Board

403     of Education for charter school administrative costs shall be distributed to charter schools in the
404     amount of $100 for each charter school student in enrollment.
405          (b) (i) If money appropriated for charter school administrative costs is insufficient to
406     provide the amount per student prescribed in Subsection (2)(a), the appropriation shall be
407     allocated among charter schools in proportion to each charter school's enrollment as a
408     percentage of the total enrollment in charter schools.
409          (ii) If the State Board of Education makes adjustments to Minimum School Program
410     allocations under Section 53A-17a-105, the allocation provided in Subsection (2)(b)(i) shall be
411     determined after adjustments are made under Section 53A-17a-105.
412          (c) Charter [schools] school governing boards are encouraged to identify and use
413     cost-effective methods of performing administrative functions, including contracting for
414     administrative services with the State Charter School Board as provided in Section
415     53A-1a-501.6.
416          (3) Charter schools are not eligible for funds for administrative costs under Subsection
417     (1).
418          Section 9. Section 53A-17a-109 is amended to read:
419          53A-17a-109. Necessarily existent small schools -- Computing additional weighted
420     pupil units -- Consolidation of small schools.
421          (1) As used in this section:
422          (a) "Board" means the State Board of Education.
423          (b) "Necessarily existent small schools funding balance" means the difference between:
424          (i) the amount appropriated for the necessarily existent small schools program in a fiscal
425     year; and
426          (ii) the amount distributed to school districts for the necessarily existent small schools
427     program in the same fiscal year.
428          (2) (a) Upon application by a [school district] local school board, the board shall, in
429     consultation with the local school board, classify schools in the school district as necessarily

430     existent small schools, in accordance with this section and board rules adopted under [this
431     section] Subsection (3).
432          (b) An application must be submitted to the board before April 2, and the board must
433     report a decision to a [school district] local school board before June 2.
434          (3) The board shall adopt standards and make rules, in accordance with Title 63G,
435     Chapter 3, Utah Administrative Rulemaking Act, to:
436          (a) govern the approval of necessarily existent small schools consistent with principles
437     of efficiency and economy [and which shall] that serve the purpose of eliminating schools where
438     consolidation is feasible by participation in special school units; and
439          (b) ensure that school districts are not building secondary schools in close proximity to
440     one another where economy and efficiency would be better served by one school meeting the
441     needs of secondary students in a designated geographical area.
442          (4) A one or two-year secondary school that has received necessarily existent small
443     school money under this section prior to July 1, 2000, may continue to receive such money in
444     subsequent years [under board rule].
445          (5) The board shall prepare and publish objective standards and guidelines for
446     determining which small schools are necessarily existent after consultation with local school
447     boards.
448          (6) (a) Additional weighted pupil units for schools classified as necessarily existent
449     small schools shall be computed using regression formulas adopted by the board.
450          (b) The regression formulas establish the following maximum sizes for funding under
451     the necessarily existent small school program:
452          (i) an elementary school                    160
453          (ii) a one or two-year secondary school          300
454          (iii) a three-year secondary school               450
455          (iv) a four-year secondary school               500
456          (v) a six-year secondary school               600

457          (c) Schools with fewer than 10 students shall receive the same add-on weighted pupil
458     units as schools with 10 students.
459          (d) The board shall prepare and distribute an allocation table based on the regression
460     formula to each school district.
461          (7) (a) To avoid penalizing a school district financially for consolidating [its] the school
462     district's small schools, additional weighted pupil units may be allowed a school district each
463     year, not to exceed two years.
464          (b) The additional weighted pupil units may not exceed the difference between what the
465     school district receives for a consolidated school and what [it] the school district would have
466     received for the small schools had [they] the small schools not been consolidated.
467          (8) (a) Subject to Subsection (8)(b), the board may distribute a portion of necessarily
468     existent small schools funding in accordance with a formula adopted by the board that considers
469     the tax effort of a local school board.
470          (b) The amount distributed in accordance with Subsection (8)(a) may not exceed the
471     necessarily existent small schools fund in balance of the prior fiscal year.
472          (9) A [district] local school board may use the money allocated under this section for
473     maintenance and operation of school programs or for other school purposes as approved by the
474     board.
475          Section 10. Section 53A-17a-111 is amended to read:
476          53A-17a-111. Weighted pupil units for programs for students with disabilities --
477     Local school board allocation.
478          (1) The number of weighted pupil units for students with disabilities shall reflect the
479     direct cost of programs for those students conducted in accordance with rules established by the
480     State Board of Education in accordance with Title 63G, Chapter 3, Utah Administrative
481     Rulemaking Act.
482          (2) Disability program money allocated to school districts or charter schools is
483     restricted and shall be spent for the education of students with disabilities but may include

484     expenditures for approved programs of services conducted for certified instructional personnel
485     who have students with disabilities in their classes.
486          (3) The State Board of Education shall establish and strictly interpret definitions and
487     provide standards for determining which students have disabilities and shall assist school
488     districts and charter schools in determining the services that should be provided to students with
489     disabilities.
490          (4) Each year the [board] State Board of Education shall evaluate the standards and
491     guidelines that establish the identifying criteria for disability classifications to assure strict
492     compliance with those standards by the school districts and charter schools.
493          (5) (a) Money appropriated to the State Board of Education for add-on WPUs for
494     students with disabilities enrolled in regular programs shall be allocated to school districts and
495     charter schools as provided in this Subsection (5).
496          (b) [Beginning on July 1, 2003, the] The State Board of Education shall[:(i)] use a
497     school district's or charter school's average number of special education add-on weighted pupil
498     units determined by the previous five year's average daily membership data as a foundation for
499     the special education add-on appropriation[; and].
500          [(ii) implement a hold harmless provision for up to three years as needed to accomplish
501     a phase-in period for school districts to accommodate the change in the special education
502     add-on WPUs foundation formula.]
503          (c) A school district's or charter school's special education add-on WPUs for the current
504     year may not be less than the foundation special education add-on WPUs.
505          (d) Growth WPUs shall be added to the prior year special education add-on WPUs, and
506     growth WPUs shall be determined as follows:
507          (i) The special education student growth factor is calculated by comparing S-3 total
508     special education ADM of two years previous to the current year to the S-3 total special
509     education ADM three years previous to the current year, not to exceed the official October total
510     school district growth factor from the prior year.

511          (ii) When calculating and applying the growth factor, a school district's S-3 total special
512     education ADM for a given year is limited to 12.18% of the school district's S-3 total student
513     ADM for the same year.
514          (iii) Growth ADMs are calculated by applying the growth factor to the S-3 total special
515     education ADM of two years previous to the current year.
516          (iv) Growth ADMs for each school district or each charter school are multiplied by 1.53
517     weighted pupil units and added to the prior year special education add-on WPU to determine
518     each school district's or each charter school's total allocation.
519          (6) If money appropriated under this chapter for programs for students with disabilities
520     does not meet the costs of school districts and charter schools for those programs, each school
521     district and each charter school shall first receive the amount generated for each student with a
522     disability under the basic program.
523          Section 11. Section 53A-17a-111.5 is amended to read:
524          53A-17a-111.5. School districts to provide class space for deaf and blind
525     programs.
526          (1) [School districts] A school district with students who reside within [their] the school
527     district's boundaries and are served by the Schools for the Deaf and the Blind shall:
528          (a) furnish the schools with space required for their programs; or
529          (b) help pay for the cost of leasing classroom space in other school districts.
530          (2) A [district's] school district's participation in the program under Subsection (1) is
531     based upon the number of students who are served by the Schools for the Deaf and the Blind
532     and who reside within the school district as compared to the state total of students who are
533     served by the schools.
534          Section 12. Section 53A-17a-112 is amended to read:
535          53A-17a-112. Preschool special education appropriation -- Extended year
536     program appropriation -- Appropriation for special education programs in state
537     institutions -- Appropriations for stipends for special educators.

538          (1) (a) Money appropriated to the State Board of Education for the preschool special
539     education program shall be allocated to school districts to provide a free, appropriate public
540     education to preschool students with a disability, ages three through five.
541          (b) The money shall be distributed on the basis of the school district's count of
542     preschool children with a disability for December 1 of the previous year, as mandated by federal
543     law.
544          (2) Money appropriated for the extended school year program for children with a
545     severe disability shall be limited to students with severe disabilities with education program
546     goals identifying significant regression and recoupment disability as approved by the State
547     Board of Education.
548          (3) (a) Money appropriated for self-contained regular special education programs may
549     not be used to supplement other school programs.
550          (b) Money in any of the other restricted line item appropriations may not be reduced
551     more than 2% to be used for purposes other than those specified by the appropriation, unless
552     otherwise provided by law.
553          (4) (a) The State Board of Education shall compute preschool funding by a factor of
554     1.47 times the current December 1 child count of eligible preschool aged three, four, and
555     five-year-olds times the WPU value, limited to 8% growth over the prior year December 1
556     count.
557          (b) The [board] State Board of Education shall develop guidelines to implement the
558     funding formula for preschool special education, and establish prevalence limits for distribution
559     of the money.
560          (5) Of the money appropriated for Special Education - State Programming, the State
561     Board of Education shall distribute the revenue generated from 909 WPUs to school districts,
562     charter schools, and the Utah Schools for the Deaf and the Blind for stipends to special
563     educators for additional days of work pursuant to the requirements of Section 53A-17a-158.
564          Section 13. Section 53A-17a-113 is amended to read:

565          53A-17a-113. Weighted pupil units for career and technical education programs
566     -- Funding of approved programs -- Performance measures -- Qualifying criteria.
567          (1) (a) Money appropriated to the State Board of Education for approved career and
568     technical education programs and the comprehensive guidance program:
569          (i) shall be allocated to eligible recipients as provided in Subsections (2), (3), (4), and
570     (5); and
571          (ii) may not be used to fund programs below [the ninth grade level] grade 9.
572          (b) Subsection (1)(a)(ii) does not apply to the following programs:
573          (i) comprehensive guidance;
574          (ii) Technology-Life-Careers; and
575          (iii) work-based learning programs.
576          (2) (a) Weighted pupil units are computed for pupils in approved programs.
577          (b) (i) The [board] State Board of Education shall fund approved programs based upon
578     hours of membership of [9th] grades 9 through [12th grade] 12 students.
579          (ii) Subsection (2)(b)(i) does not apply to the following programs:
580          (A) comprehensive guidance;
581          (B) Technology-Life-Careers; and
582          (C) work-based learning programs.
583          (c) The [board] State Board of Education shall use an amount not to exceed 20% of the
584     total appropriation under this section to fund approved programs based on performance
585     measures such as placement and competency attainment defined in standards set by the [board]
586     State Board of Education.
587          (d) Leadership organization funds shall constitute an amount not to exceed 1% of the
588     total appropriation under this section, and shall be distributed to each [local educational agency]
589     school district or each charter school sponsoring career and technical education student
590     leadership organizations based on the agency's share of the state's total membership in those
591     organizations.

592          (e) The [board] State Board of Education shall make the necessary calculations for
593     distribution of the appropriation to a school [districts] district and charter school and may revise
594     and recommend changes necessary for achieving equity and ease of administration.
595          (3) (a) Twenty weighted pupil units shall be computed for career and technical
596     education administrative costs for each school district, except 25 weighted pupil units may be
597     computed for each school district that consolidates career and technical education
598     administrative services with one or more other school districts.
599          (b) Between 10 and 25 weighted pupil units shall be computed for each high school
600     conducting approved career and technical education programs in a school district according to
601     standards established by the [board] State Board of Education.
602          (c) Forty weighted pupil units shall be computed for each school district that operates
603     an approved career and technical education center.
604          (d) Between five and seven weighted pupil units shall be computed for each summer
605     career and technical education agriculture program according to standards established by the
606     [board] State Board of Education.
607          (e) The [board] State Board of Education shall, by rule, establish qualifying criteria for
608     [districts] a school district or charter school to receive weighted pupil units under this
609     Subsection (3).
610          (4) (a) Money remaining after the allocations made under Subsections (2) and (3) shall
611     be allocated using average daily membership in approved programs for the previous year.
612          (b) A school district or charter school that has experienced student growth in grades 9
613     through 12 for the previous year shall have the growth factor applied to the previous year's
614     weighted pupil units when calculating the allocation of money under this Subsection (4).
615          (5) Of the money allocated to comprehensive guidance programs pursuant to [board
616     rules] State Board of Education rule, $1,000,000 in grants shall be awarded to school districts
617     or charter schools that:
618          (a) provide an equal amount of matching funds; and

619          (b) do not supplant other funds used for comprehensive guidance programs.
620          (6) (a) The [board] State Board of Education shall establish rules for [the] upgrading
621     [of] high school career and technical education programs.
622          (b) The rules shall reflect career and technical training and actual marketable job skills
623     in society.
624          (c) The rules shall include procedures to assist school districts and charter schools to
625     convert existing programs [which] that are not preparing students for the job market into
626     programs that will accomplish that purpose.
627          (7) Programs that do not meet [board] State Board of Education standards may not be
628     funded under this section.
629          Section 14. Section 53A-17a-116 is amended to read:
630          53A-17a-116. Weighted pupil units for career and technical education set-aside
631     programs.
632          (1) Each school district and charter school shall receive a guaranteed minimum
633     allocation from the money appropriated to the State Board of Education for a career and
634     technical education set-aside program.
635          (2) The set-aside funds remaining after the initial minimum payment allocation are
636     distributed by [an RFP] a request for proposals process to help pay for equipment costs
637     necessary to initiate new programs and for high priority programs as determined by labor
638     market information.
639          Section 15. Section 53A-17a-119 is amended to read:
640          53A-17a-119. Appropriation for adult education programs.
641          (1) Money appropriated to the State Board of Education for adult education shall be
642     allocated to [local school boards] school districts for adult high school completion and adult
643     basic skills programs.
644          (2) Each school district shall receive [its] a pro rata share of the appropriation for adult
645     high school completion programs based on the number of people in the school district listed in

646     the latest official census who are over 18 years of age and who do not have a high school
647     diploma and prior year participation or as approved by [board] State Board of Education rule.
648          (3) On February 1 of each school year, the State Board of Education shall recapture
649     money not used for an adult high school completion program for reallocation to school districts
650     that have implemented programs based on need and effort as determined by the [board] State
651     Board of Education.
652          (4) To the extent of money available, school districts shall provide [programs] program
653     services to adults who do not have a diploma and who intend to graduate from high school,
654     with particular emphasis on homeless individuals who are seeking literacy and life skills.
655          (5) Overruns in adult education in any school district may not reduce the value of the
656     weighted pupil unit for this program in another school district.
657          (6) School districts shall spend money on adult basic skills programs according to
658     standards established by the [board] State Board of Education.
659          Section 16. Section 53A-17a-124 is amended to read:
660          53A-17a-124. Quality Teaching Block Grant Program -- State contributions.
661          (1) The State Board of Education shall distribute money appropriated for the Quality
662     Teaching Block Grant Program to school districts and charter schools according to a formula
663     adopted by the [board] State Board of Education, after consultation with [school districts and
664     charter schools] local education boards, that allocates the funding in a fair and equitable manner.
665          (2) [School districts and charter schools] Local education boards shall use Quality
666     Teaching Block Grant money to implement professional learning that meets the standards
667     specified in Section 53A-3-701.
668          Section 17. Section 53A-17a-124.5 is amended to read:
669          53A-17a-124.5. Appropriation for class size reduction.
670          (1) Money appropriated to the State Board of Education for class size reduction shall
671     be used to reduce the average class size in kindergarten through the eighth grade in the state's
672     public schools.

673          (2) Each school district or charter school shall receive [its] an allocation based upon the
674     school district or charter school's prior year average daily membership in kindergarten through
675     grade 8 plus growth as determined under Subsection 53A-17a-106(3) as compared to the total
676     prior year average daily membership in kindergarten through grade 8 plus growth of school
677     districts and charter schools that qualify for an allocation pursuant to Subsection (8).
678          (3) (a) A [district] local education board may use [its] an allocation to reduce class size
679     in any one or all of the grades referred to under this section, except as otherwise provided in
680     Subsection (3)(b).
681          (b) (i) Each [district or charter school] local education board shall use 50% of [its] an
682     allocation to reduce class size in any one or all of grades kindergarten through grade 2, with an
683     emphasis on improving student reading skills.
684          (ii) If a school district's or charter school's average class size is below 18 in grades
685     kindergarten through grade 2, [it] a local education board may petition the [state board] State
686     Board of Education for, and the [state board] State Board of Education may grant, a waiver to
687     use [its] an allocation under Subsection (3)(b)(i) for class size reduction in the other grades.
688          (4) Schools may use nontraditional innovative and creative methods to reduce class
689     sizes with this appropriation and may use part of [their] an allocation to focus on class size
690     reduction for specific groups, such as at risk students, or for specific blocks of time during the
691     school day.
692          (5) (a) A [school district or charter school] local education board may use up to 20% of
693     [its] an allocation under Subsection (1) for capital facilities projects if such projects would help
694     to reduce class size.
695          (b) If a school district's or charter school's student population increases by 5% or 700
696     students from the previous school year, the [school district or charter school] local education
697     board may use up to 50% of any allocation [it receives] received by the respective school
698     district or charter school under this section for classroom construction.
699          (6) This appropriation is to supplement any other appropriation made for class size

700     reduction.
701          (7) The Legislature shall provide for an annual adjustment in the appropriation
702     authorized under this section in proportion to the increase in the number of students in the state
703     in kindergarten through grade eight.
704          (8) (a) [To] For a school district or charter school to qualify for class size reduction
705     money, a [school district or charter school] local education board shall submit:
706          (i) a plan for the use of the [school district's or charter school's] allocation of class size
707     reduction money to the State Board of Education; and
708          (ii) beginning with the 2014-15 school year, a report on the [school district's or charter
709     school's] local education board's use of class size reduction money in the prior school year.
710          (b) The plan and report required pursuant to Subsection (8)(a) shall include the
711     following information:
712          (i) (A) the number of teachers employed using class size reduction money;
713          (B) the amount of class size reduction money expended for teachers; and
714          (C) if supplemental school district or charter school funds are expended to pay for
715     teachers employed using class size reduction money, the amount of the supplemental money;
716          (ii) (A) the number of paraprofessionals employed using class size reduction money;
717          (B) the amount of class size reduction money expended for paraprofessionals; and
718          (C) if supplemental school district or charter school funds are expended to pay for
719     paraprofessionals employed using class size reduction money, the amount of the supplemental
720     money; and
721          (iii) the amount of class size reduction money expended for capital facilities.
722          (c) In addition to submitting a plan and report on the use of class size reduction money,
723     a [school district or charter school] local education board shall annually submit a report to the
724     State Board of Education that includes the following information:
725          (i) the number of teachers employed using K-3 Reading Improvement Program money
726     received pursuant to Sections 53A-17a-150 and 53A-17a-151;

727          (ii) the amount of K-3 Reading Improvement Program money expended for teachers;
728          (iii) the number of teachers employed in kindergarten through grade 8 using Title I
729     money;
730          (iv) the amount of Title I money expended for teachers in kindergarten through grade 8;
731     and
732          (v) a comparison of actual average class size by grade in grades kindergarten through 8
733     in the school district or charter school with what the average class size would be without the
734     expenditure of class size reduction, K-3 Reading Improvement Program, and Title I money.
735          (d) The information required to be reported in Subsections (8)(b)(i)(A) through (C),
736     (8)(b)(ii)(A) through (C), and (8)(c) shall be categorized by a teacher's or paraprofessional's
737     teaching assignment, such as the grade level, course, or subject taught.
738          (e) The State Board of Education may make rules specifying procedures and standards
739     for the submission of:
740          (i) a plan and a report on the use of class size reduction money as required by this
741     section; and
742          (ii) a report required under Subsection (8)(c).
743          (f) Based on the data contained in the class size reduction plans and reports submitted
744     by [school districts and charter schools] local education boards, and data on average class size,
745     the State Board of Education shall annually report to the Public Education Appropriations
746     Subcommittee on the impact of class size reduction, K-3 Reading Improvement Program, and
747     Title I money on class size.
748          Section 18. Section 53A-17a-125 is amended to read:
749          53A-17a-125. Appropriation for retirement and social security.
750          (1) The employee's retirement contribution shall be 1% for employees who are under
751     the state's contributory retirement program.
752          (2) The employer's contribution under the state's contributory retirement program is
753     determined under Section 49-12-301, subject to the 1% contribution under Subsection (1).

754          (3) (a) The employer-employee contribution rate for employees who are under the
755     state's noncontributory retirement program is determined under Section 49-13-301.
756          (b) The same contribution rate used under Subsection (3)(a) shall be used to calculate
757     the appropriation for charter schools described under Subsection (5).
758          (4) (a) Money appropriated to the State Board of Education for retirement and social
759     security money shall be allocated to school districts and charter schools based on a [district's]
760     school district's or charter school's total weighted pupil units compared to the total weighted
761     pupil units for all school districts and charter schools in the state.
762          (b) Subject to budget constraints, money needed to support retirement and social
763     security shall be determined by taking [the] a school district's or charter school's prior year
764     allocation and adjusting it for:
765          (i) student growth;
766          (ii) the percentage increase in the value of the weighted pupil unit; and
767          (iii) the effect of any change in the rates for retirement, social security, or both.
768          (5) A charter school governing board that [has made] makes an election of
769     nonparticipation in the Utah State Retirement Systems in accordance with Section 53A-1a-512
770     and Title 49, Utah State Retirement and Insurance Benefit Act, shall use the funds described
771     under this section for retirement to provide [its] the charter school's own compensation, benefit,
772     and retirement programs.
773          Section 19. Section 53A-17a-126 is amended to read:
774          53A-17a-126. State support of pupil transportation.
775          (1) Money appropriated to the State Board of Education for state-supported
776     transportation of public school students shall be apportioned and distributed in accordance with
777     Section 53A-17a-127, except as otherwise provided in this section or Section 53A-17a-126.5.
778          (2) (a) The Utah Schools for the Deaf and the Blind shall use [its] an allocation of pupil
779     transportation money to pay for transportation of [their] students based on current valid
780     contractual arrangements and best transportation options and methods as determined by the

781     schools.
782          (b) All student transportation costs of the schools shall be paid from the allocation of
783     pupil transportation money specified in statute.
784          (3) (a) A [school district] local school board may only claim eligible transportation
785     costs as legally reported on the prior year's annual financial report submitted under Section
786     53A-3-404.
787          (b) The state shall contribute 85% of approved transportation costs, subject to budget
788     constraints.
789          (c) If in a fiscal year the total transportation allowance for all school districts exceeds
790     the amount appropriated for that purpose, all allowances shall be reduced pro rata to equal not
791     more than the amount appropriated.
792          Section 20. Section 53A-17a-127 is amended to read:
793          53A-17a-127. Eligibility for state-supported transportation -- Approved bus
794     routes -- Additional local tax.
795          (1) A student eligible for state-supported transportation means:
796          (a) a student enrolled in kindergarten through grade six who lives at least 1-1/2 miles
797     from school;
798          (b) a student enrolled in grades seven through 12 who lives at least two miles from
799     school; and
800          (c) a student enrolled in a special program offered by a school district and approved by
801     the State Board of Education for trainable, motor, multiple-disability, or other students with
802     severe disabilities who are incapable of walking to school or where it is unsafe for students to
803     walk because of their disabling condition, without reference to distance from school.
804          (2) If a school district implements double sessions as an alternative to new building
805     construction, with the approval of the State Board of Education, those affected elementary
806     school students residing less than 1-1/2 miles from school may be transported one way to or
807     from school because of safety factors relating to darkness or other hazardous conditions as

808     determined by the local school board.
809          (3) (a) The State Board of Education shall distribute transportation money to school
810     districts based on:
811          (i) an allowance per mile for approved bus routes;
812          (ii) an allowance per hour for approved bus routes; and
813          (iii) a minimum allocation for each school district eligible for transportation funding.
814          (b) The State Board of Education shall distribute appropriated transportation funds
815     based on the prior year's eligible transportation costs as legally reported under Subsection
816     53A-17a-126(3).
817          (c) The State Board of Education shall annually review the allowance per mile and the
818     allowance per hour and adjust the allowances to reflect current economic conditions.
819          (4) (a) Approved bus routes for funding purposes shall be determined on fall data
820     collected by October 1.
821          (b) Approved route funding shall be determined on the basis of the most efficient and
822     economic routes.
823          (5) A Transportation Advisory Committee with representation from [local] school
824     district superintendents, business officials, school district transportation supervisors, and [the
825     state superintendent's staff] State Board of Education employees shall serve as a review
826     committee for addressing school transportation needs, including recommended approved bus
827     routes.
828          (6) (a) Except as provided in Subsection (6)(e), a local school board may provide for the
829     transportation of students regardless of the distance from school, from:
830          (i) general funds of the school district; and
831          (ii) a tax rate not to exceed .0003 per dollar of taxable value [imposed on the district.]
832     levied by the local school board.
833          (b) A local school board may use revenue from the tax described in Subsection (6)(a)(ii)
834     to pay for transporting students and for the replacement of school buses.

835          (c) (i) If a local school board levies a tax under Subsection (6)(a)(ii) of at least .0002,
836     the state may contribute an amount not to exceed 85% of the state average cost per mile,
837     contingent upon the Legislature appropriating funds for a state contribution.
838          (ii) The [state superintendent's staff] State Board of Education's employees shall
839     distribute the state contribution according to rules enacted by the State Board of Education.
840          (d) (i) The amount of state guarantee money [which] that a school district would
841     otherwise be entitled to receive under Subsection (6)(c) may not be reduced for the sole reason
842     that the school district's levy is reduced as a consequence of changes in the certified tax rate
843     under Section 59-2-924 due to changes in property valuation.
844          (ii) Subsection (6)(d)(i) applies for a period of two years following the change in the
845     certified tax rate.
846          (e) Beginning January 1, 2012, a local school board may not impose a tax in accordance
847     with this Subsection (6).
848          (7) (a) (i) If a local school board expends an amount of revenue equal to at least .0002
849     per dollar of taxable value of the school district's board local levy imposed under Section
850     53A-17a-164 for the uses described in Subsection (6)(b), the state may contribute an amount
851     not to exceed 85% of the state average cost per mile, contingent upon the Legislature
852     appropriating funds for a state contribution.
853          (ii) The [state superintendent's staff] State Board of Education's employees shall
854     distribute the state contribution according to rules enacted by the State Board of Education.
855          (b) (i) The amount of state guarantee money that a school district would otherwise be
856     entitled to receive under Subsection (7)(a) may not be reduced for the sole reason that the
857     school district's levy is reduced as a consequence of changes in the certified tax rate under
858     Section 59-2-924 due to changes in property valuation.
859          (ii) Subsection (7)(b)(i) applies for a period of two years following the change in the
860     certified tax rate.
861          Section 21. Section 53A-17a-133 is amended to read:

862          53A-17a-133. State-supported voted local levy authorized -- Election
863     requirements -- State guarantee -- Reconsideration of the program.
864          (1) As used in this section, "voted and board local levy funding balance" means the
865     difference between:
866          (a) the amount appropriated for the voted and board local levy program in a fiscal year;
867     and
868          (b) the amount necessary to provide the state guarantee per weighted pupil unit as
869     determined under this section and Section 53A-17a-164 in the same fiscal year.
870          (2) An election to consider adoption or modification of a voted local levy is required if
871     initiative petitions signed by 10% of the number of electors who voted at the last preceding
872     general election are presented to the local school board or by action of the local school board.
873          (3) (a) (i) To impose a voted local levy, a majority of the electors of a school district
874     voting at an election in the manner set forth in Subsections (9) and (10) must vote in favor of a
875     special tax.
876          (ii) The tax rate may not exceed .002 per dollar of taxable value.
877          (b) Except as provided in Subsection (3)(c), in order to receive state support the first
878     year, a school district [must] shall receive voter approval no later than December 1 of the year
879     prior to implementation.
880          (c) Beginning on or after January 1, 2012, a school district may receive state support in
881     accordance with Subsection (4) without complying with the requirements of Subsection (3)(b) if
882     the local school board imposed a tax in accordance with this section during the taxable year
883     beginning on January 1, 2011 and ending on December 31, 2011.
884          (4) (a) In addition to the revenue [a school district collects] collected from the
885     imposition of a levy pursuant to this section, the state shall contribute an amount sufficient to
886     guarantee $35.55 per weighted pupil unit for each .0001 of the first .0016 per dollar of taxable
887     value.
888          (b) The same dollar amount guarantee per weighted pupil unit for the .0016 per dollar

889     of taxable value under Subsection (4)(a) shall apply to the portion of the board local levy
890     authorized in Section 53A-17a-164, so that the guarantee shall apply up to a total of .002 per
891     dollar of taxable value if a [school district] local school board levies a tax rate under both
892     programs.
893          (c) (i) Beginning July 1, 2015, the $35.55 guarantee under Subsections (4)(a) and (b)
894     shall be indexed each year to the value of the weighted pupil unit for the grades 1 through 12
895     program by making the value of the guarantee equal to .011962 times the value of the prior
896     year's weighted pupil unit for the grades 1 through 12 program.
897          (ii) The guarantee shall increase by .0005 times the value of the prior year's weighted
898     pupil unit for the grades 1 through 12 program for each succeeding year subject to the
899     Legislature appropriating funds for an increase in the guarantee.
900          (d) (i) The amount of state guarantee money to which a school district would otherwise
901     be entitled to receive under this Subsection (4) may not be reduced for the sole reason that the
902     school district's levy is reduced as a consequence of changes in the certified tax rate under
903     Section 59-2-924 pursuant to changes in property valuation.
904          (ii) Subsection (4)(d)(i) applies for a period of five years following any such change in
905     the certified tax rate.
906          (e) The guarantee provided under this section does not apply to the portion of a voted
907     local levy rate that exceeds the voted local levy rate that was in effect for the previous fiscal
908     year, unless an increase in the voted local levy rate was authorized in an election conducted on
909     or after July 1 of the previous fiscal year and before December 2 of the previous fiscal year.
910          (f) (i) If a voted and board local levy funding balance exists for the prior fiscal year, the
911     State Board of Education shall:
912          (A) use the voted and board local levy funding balance to increase the value of the state
913     guarantee per weighted pupil unit described in Subsection (4)(c) in the current fiscal year; and
914          (B) distribute the state contribution to the voted and board local levy programs to
915     school districts based on the increased value of the state guarantee per weighted pupil unit

916     described in Subsection (4)(f)(i)(A).
917          (ii) The State Board of Education shall report action taken under this Subsection (4)(f)
918     to the Office of the Legislative Fiscal Analyst and the Governor's Office of Management and
919     Budget.
920          (5) (a) An election to modify an existing voted local levy is not a reconsideration of the
921     existing authority unless the proposition submitted to the electors expressly so states.
922          (b) A majority vote opposing a modification does not deprive the [district] local school
923     board of authority to continue the levy.
924          (c) If adoption of a voted local levy is contingent upon an offset reducing other local
925     school board levies, the local school board [must] shall allow the electors, in an election, to
926     consider modifying or discontinuing the imposition of the levy prior to a subsequent increase in
927     other levies that would increase the total local school board levy.
928          (d) Nothing contained in this section terminates, without an election, the authority of a
929     [school district] local school board to continue imposing an existing voted local levy previously
930     authorized by the voters as a voted leeway program.
931          (6) Notwithstanding Section 59-2-919, a [school district] local school board may
932     budget an increased amount of ad valorem property tax revenue derived from a voted local levy
933     imposed under this section in addition to revenue from eligible new growth as defined in Section
934     59-2-924, without having to comply with the notice requirements of Section 59-2-919, if:
935          (a) the voted local levy is approved:
936          (i) in accordance with Subsections (9) and (10) on or after January 1, 2003; and
937          (ii) within the four-year period immediately preceding the year in which the [school
938     district] local school board seeks to budget an increased amount of ad valorem property tax
939     revenue derived from the voted local levy; and
940          (b) for a voted local levy approved or modified in accordance with this section on or
941     after January 1, 2009, the [school district] local school board complies with the requirements of
942     Subsection (8).

943          (7) Notwithstanding Section 59-2-919, a [school district] local school board may levy a
944     tax rate under this section that exceeds the certified tax rate without having to comply with the
945     notice requirements of Section 59-2-919 if:
946          (a) the levy exceeds the certified tax rate as the result of a [school district] local school
947     board budgeting an increased amount of ad valorem property tax revenue derived from a voted
948     local levy imposed under this section;
949          (b) the voted local levy was approved:
950          (i) in accordance with Subsections (9) and (10) on or after January 1, 2003; and
951          (ii) within the four-year period immediately preceding the year in which the [school
952     district] local school board seeks to budget an increased amount of ad valorem property tax
953     revenue derived from the voted local levy; and
954          (c) for a voted local levy approved or modified in accordance with this section on or
955     after January 1, 2009, the [school district] local school board complies with requirements of
956     Subsection (8).
957          (8) For purposes of Subsection (6)(b) or (7)(c), the proposition submitted to the
958     electors regarding the adoption or modification of a voted local levy shall contain the following
959     statement:
960          "A vote in favor of this tax means that [(name of the school district)] the local school
961     board of [name of the school district] may increase revenue from this property tax without
962     advertising the increase for the next five years."
963          (9) (a) Before [imposing] a local school board may impose a property tax levy pursuant
964     to this section, a [school district] local school board shall submit an opinion question to the
965     school district's registered voters voting on the imposition of the tax rate so that each registered
966     voter has the opportunity to express the registered voter's opinion on whether the tax rate
967     should be imposed.
968          (b) The election required by this Subsection (9) shall be held:
969          (i) at a regular general election conducted in accordance with the procedures and

970     requirements of Title 20A, Election Code, governing regular elections;
971          (ii) at a municipal general election conducted in accordance with the procedures and
972     requirements of Section 20A-1-202; or
973          (iii) at a local special election conducted in accordance with the procedures and
974     requirements of Section 20A-1-203.
975          (c) Notwithstanding the requirements of Subsections (9)(a) and (b), beginning on or
976     after January 1, 2012, a [school district] local school board may levy a tax rate in accordance
977     with this section without complying with the requirements of Subsections (9)(a) and (b) if the
978     [school district] local school board imposed a tax in accordance with this section at any time
979     during the taxable year beginning on January 1, 2011, and ending on December 31, 2011.
980          (10) If a [school district] local school board determines that a majority of the school
981     district's registered voters voting on the imposition of the tax rate have voted in favor of the
982     imposition of the tax rate in accordance with Subsection (9), the [school district] local school
983     board may impose the tax rate.
984          Section 22. Section 53A-17a-134 is amended to read:
985          53A-17a-134. Board-approved leeway -- Purpose -- State support -- Disapproval.
986          (1) Except as provided in Subsection (9), a local school board may levy a tax rate of up
987     to .0004 per dollar of taxable value to maintain a school program above the cost of the basic
988     school program as follows:
989          (a) a local school board shall use the money generated by the tax for class size
990     reduction within the school district;
991          (b) if a local school board determines that the average class size in the school district is
992     not excessive, [it] the local school board may use the money for other school purposes but only
993     if the local school board has declared the use for other school purposes in a public meeting prior
994     to levying the tax rate; and
995          (c) a [district] local school board may not use the money for other school purposes
996     under Subsection (1)(b) until [it] the local school board has certified in writing that [its] the

997     local school board's class size needs are already being met and the local school board has
998     identified the other school purposes for which the money will be used to the State Board of
999     Education and the [state board] State Board of Education has approved [their] the local school
1000     board's use for other school purposes.
1001          (2) (a) The state shall contribute an amount sufficient to guarantee $27.36 per weighted
1002     pupil unit for each .0001 per dollar of taxable value.
1003          (b) The guarantee shall increase in the same manner as provided for the voted local levy
1004     guarantee in Subsection 53A-17a-133(4)(c).
1005          (c) (i) The amount of state guarantee money to which a school district would otherwise
1006     be entitled to under this Subsection (2) may not be reduced for the sole reason that the school
1007     district's levy is reduced as a consequence of changes in the certified tax rate under Section
1008     59-2-924 pursuant to changes in property valuation.
1009          (ii) Subsection (2)(c)(i) applies for a period of five years following any such change in
1010     the certified tax rate.
1011          (d) The guarantee provided under this section does not apply to:
1012          (i) a board-authorized leeway in the first fiscal year the [leeway] levy is in effect, unless
1013     the [leeway] levy was approved by voters pursuant to Subsections (4) through (6); or
1014          (ii) the portion of a board-authorized [leeway] levy rate that is in excess of the
1015     board-authorized leeway rate that was in effect for the previous fiscal year.
1016          (3) The levy authorized under this section is not in addition to the maximum rate of
1017     .002 authorized in Section 53A-17a-133, but is a board-authorized component of the total tax
1018     rate under that section.
1019          (4) As an exception to Section 53A-17a-133, the board-authorized levy does not
1020     require voter approval, but the local school board may require voter approval if requested by a
1021     majority of the local school board.
1022          (5) An election to consider disapproval of the board-authorized levy is required, if
1023     within 60 days after the levy is established by the local school board, referendum petitions

1024     signed by the number of legal voters required in Section 20A-7-301, who reside within the
1025     school district, are filed with the [school district] local school board.
1026          (6) (a) A local school board shall establish its board-approved levy by April 1 to have
1027     the levy apply to the fiscal year beginning July 1 in that same calendar year except that if an
1028     election is required under this section, the levy applies to the fiscal year beginning July 1 of the
1029     next calendar year.
1030          (b) (i) The approval and disapproval votes authorized in Subsections (4) and (5) shall
1031     occur at a general election in even-numbered years, except that a vote required under this
1032     section in odd-numbered years shall occur at a special election held on a day in odd-numbered
1033     years that corresponds to the general election date.
1034          (ii) The school district shall pay for the cost of a special election.
1035          (7) (a) Modification or termination of a voter-approved leeway rate authorized under
1036     this section is governed by Section 53A-17a-133.
1037          (b) A board-authorized [leeway] levy rate may be modified or terminated by a majority
1038     vote of the local school board subject to disapproval procedures specified in this section.
1039          (8) A board-authorized levy election does not require publication of a voter information
1040     pamphlet.
1041          (9) Beginning January 1, 2012, a local school board may not levy a tax in accordance
1042     with this section.
1043          Section 23. Section 53A-17a-135 is amended to read:
1044          53A-17a-135. Minimum basic tax rate -- Certified revenue levy.
1045          (1) As used in this section, "basic levy increment rate" means a tax rate that will
1046     generate an amount of revenue equal to $75,000,000.
1047          (2) (a) [In order to] To qualify for receipt of the state contribution toward the basic
1048     program and as [its] a school district's contribution toward [its] the school district's costs of the
1049     basic program, each [school district] local school board shall impose a minimum basic tax rate
1050     per dollar of taxable value that generates $392,266,800 in revenues statewide.

1051          (b) The preliminary estimate for the 2016-17 minimum basic tax rate is .001695.
1052          (c) The State Tax Commission shall certify on or before June 22 the rate that generates
1053     $392,266,800 in revenues statewide.
1054          (d) If the minimum basic tax rate exceeds the certified revenue levy as defined in
1055     Section 53A-17a-103, the state is subject to the notice requirements of Section 59-2-926.
1056          (3) [(a)] The state shall contribute to each school district toward the cost of the basic
1057     program in the school district that portion [which] that exceeds the proceeds of the difference
1058     between:
1059          [(i)] (a) the minimum basic tax rate to be imposed under Subsection (2); and
1060          [(ii)] (b) the basic levy increment rate.
1061          [(b) In accordance with the state strategic plan for public education and to fulfill its
1062     responsibility for the development and implementation of that plan, the Legislature instructs the
1063     State Board of Education, the governor, and the Office of Legislative Fiscal Analyst in each of
1064     the coming five years to develop budgets that will fully fund student enrollment growth.]
1065          (4) (a) If the difference described in Subsection (3)[(a)] equals or exceeds the cost of
1066     the basic program in a school district, no state contribution shall be made to the basic program.
1067          (b) The proceeds of the difference described in Subsection (3)[(a)] that exceed the cost
1068     of the basic program shall be paid into the Uniform School Fund as provided by law.
1069          (5) The State Board of Education shall:
1070          (a) deduct from state funds that a school district is authorized to receive under this
1071     chapter an amount equal to the proceeds generated within the school district by the basic levy
1072     increment rate; and
1073          (b) deposit the money described in Subsection (5)(a) into the Minimum Basic Growth
1074     Account created in Section 53A-17a-135.1.
1075          Section 24. Section 53A-17a-139 is amended to read:
1076          53A-17a-139. Loss in student enrollment -- Board action.
1077          To avoid penalizing a school district financially for an excessive loss in student

1078     enrollment due to factors beyond its control, the State Board of Education may allow a
1079     percentage increase in units otherwise allowable during any year when a school district's
1080     average daily membership drops more than 4% below the average for the highest two of the
1081     preceding three years in the school district.
1082          Section 25. Section 53A-17a-140 is amended to read:
1083          53A-17a-140. Contracts with teachers.
1084          A school district may not enter into contracts with teachers that would prevent the
1085     school district from paying differential salaries or putting limitations on an individual salary paid
1086     in order to fill a shortage in specific teaching areas.
1087          Section 26. Section 53A-17a-141 is amended to read:
1088          53A-17a-141. Alternative programs.
1089          (1) Since the State Board of Education has adopted a policy that requires school
1090     districts and charter schools to grant credit for proficiency through alternative programs, school
1091     districts and charter schools are encouraged to continue and expand [their] school district and
1092     charter school cooperation with accredited institutions through performance contracts for
1093     educational services, particularly where it is beneficial to students whose progress could be
1094     better served through alternative programs.
1095          (2) School districts and charter schools are encouraged to participate in programs that
1096     focus on increasing the number of ethnic minority and female students in the secondary schools
1097     who will go on to study mathematics, engineering, or related sciences at an institution of higher
1098     education.
1099          Section 27. Section 53A-17a-143 is amended to read:
1100          53A-17a-143. Federal Impact Aid Program -- Offset for underestimated
1101     allocations from the Federal Impact Aid Program.
1102          (1) In addition to the revenues received from the levy imposed by [each school district]
1103     a local school board and authorized by the Legislature under Section 53A-17a-135, the
1104     Legislature shall provide an amount equal to the difference between the school district's

1105     anticipated receipts under the entitlement for the fiscal year from the Federal Impact Aid
1106     Program and the amount the school district actually received from this source for the next
1107     preceding fiscal year.
1108          (2) If at the end of a fiscal year the sum of the receipts of a school district from a
1109     distribution from the Legislature pursuant to Subsection (1) plus the school district's allocations
1110     from the Federal Impact Aid Program for that fiscal year exceeds the amount allocated to the
1111     school district from the Federal Impact Aid Program for the next preceding fiscal year, the
1112     excess funds are carried into the next succeeding fiscal year and become in that year a part of
1113     the school district's contribution to [its] the school district's basic program for operation and
1114     maintenance under the state minimum school finance law.
1115          (3) During [that year] the next succeeding fiscal year described in Subsection (2), the
1116     school district's required tax rate for the basic program shall be reduced so that the yield from
1117     the reduced tax rate plus the carryover funds equal the school district's required contribution to
1118     [its] the school district's basic program.
1119          (4) [A district that reduces its] For the school district of a local school board that is
1120     required to reduce the school district's basic tax rate under this section, the school district shall
1121     receive state minimum school program funds as though the reduction in the tax rate had not
1122     been made.
1123          Section 28. Section 53A-17a-144 is amended to read:
1124          53A-17a-144. Contribution of state to cost of minimum school program --
1125     Determination of amounts -- Levy on taxable property -- Disbursal -- Deficiency.
1126          The state's contribution to the total cost of the minimum school program is determined
1127     and distributed as follows:
1128          (1) The State Tax Commission shall levy an amount determined by the Legislature on
1129     all taxable property of the state.
1130          (a) This amount, together with other funds provided by law, is the state's contribution
1131     to the minimum school program.

1132          (b) The statewide levy is set at zero until changed by the Legislature.
1133          (2) During the first week in November, the State Tax Commission shall certify to the
1134     State Board of Education the amounts designated as state aid for each school district under
1135     Section 59-2-902.
1136          (3) (a) The actual amounts computed under Section 59-2-902 are the state's
1137     contribution to the minimum school program of each school district.
1138          (b) The [state board] State Board of Education shall provide each [district] local
1139     education board with a statement of the amount of state aid.
1140          (4) [Prior to] Before the first day of each month, the state treasurer and the Division of
1141     Finance, with the approval of the State Board of Education, shall disburse 1/12 of the state's
1142     contribution to the cost of the minimum school program to each school district and each charter
1143     school.
1144          (a) [A disbursement may not be made to a district] The State Board of Education may
1145     not make a disbursement to a school district or charter school whose payments have been
1146     interrupted under Subsection (4)(d).
1147          (b) Discrepancies between the monthly disbursements and the actual cost of the
1148     program shall be adjusted in the final settlement under Subsection (5).
1149          (c) If the monthly distributions overdraw the money in the Uniform School Fund, the
1150     Division of Finance is authorized to run this fund in a deficit position.
1151          (d) The [state board] State Board of Education may interrupt disbursements to a school
1152     district or charter school if, in the judgment of the [board] State Board of Education, the school
1153     district or charter school is failing to comply with the minimum school program, is operating
1154     programs that are not approved by the [state board] State Board of Education, or has not
1155     submitted reports required by law or the [state board] State Board of Education.
1156          (i) Disbursements shall be resumed upon request of the [state board] State Board of
1157     Education.
1158          (ii) Back disbursements shall be included in the next regular disbursement, and the

1159     amount disbursed certified to the State Division of Finance and state treasurer by the [state
1160     board] State Board of Education.
1161          (e) The State Board of Education may authorize exceptions to the 1/12 per month
1162     disbursement formula for grant funds if the [board] State Board of Education determines that a
1163     different disbursement formula would better serve the purposes of the grant.
1164          (5) (a) If money in the Uniform School Fund is insufficient to meet the state's
1165     contribution to the minimum school program as appropriated, the amount of the deficiency thus
1166     created shall be carried as a deficiency in the Uniform School Fund until the next session of the
1167     Legislature, at which time the Legislature shall appropriate funds to cover the deficiency.
1168          (b) If there is an operating deficit in public education Uniform School Fund
1169     appropriations, the Legislature shall eliminate the deficit by:
1170          (i) budget transfers or other legal means;
1171          (ii) appropriating money from the Education Budget Reserve Account;
1172          (iii) appropriating up to 25% of the balance in the General Fund Budget Reserve
1173     Account; or
1174          (iv) some combination of Subsections (5)(b)(i), (ii), and (iii).
1175          (c) Nothing in Subsection (5)(b) precludes the Legislature from appropriating more
1176     than 25% of the balance in the General Fund Budget Reserve Account to fund operating deficits
1177     in public education appropriations.
1178          Section 29. Section 53A-17a-145 is amended to read:
1179          53A-17a-145. Additional levy by local school board for debt service, school sites,
1180     buildings, buses, textbooks, and supplies.
1181          (1) Except as provided in Subsection (5), a [school district] local school board may
1182     elect to increase [its] the school district's tax rate by up to 10% of the cost of the basic program.
1183          (2) The proceeds from the increase may only be used for debt service, the construction
1184     or remodeling of school buildings, or the purchase of school sites, buses, equipment, textbooks,
1185     and supplies.

1186          (3) This section does not prohibit a school district or local school board from exercising
1187     the authority granted by other laws relating to tax rates.
1188          (4) This increase in the tax rate is not included in determining the apportionment of the
1189     State School Fund, and is in addition to other tax rates authorized by law.
1190          (5) Beginning January 1, 2012, a local school [district] board may not:
1191          (a) levy a tax rate in accordance with this section; or
1192          (b) increase its tax rate as described in Subsection (1).
1193          Section 30. Section 53A-17a-146 is amended to read:
1194          53A-17a-146. Reduction of local education board allocation based on insufficient
1195     revenues.
1196          (1) As used in this section, "Minimum School Program funds" means the total of state
1197     and local funds appropriated for the minimum school program, excluding:
1198          (a) the state-supported voted local levy program pursuant to Section 53A-17a-133;
1199          (b) the state-supported board local levy program pursuant to Section 53A-17a-164; and
1200          (c) the appropriation to charter schools to replace local property tax revenues pursuant
1201     to Section 53A-1a-513.
1202          (2) If the Legislature reduces appropriations made to support public schools under this
1203     chapter because an Education Fund budget deficit, as defined in Section 63J-1-312, exists, the
1204     State Board of Education, after consultation with each [school district and charter school] local
1205     education board, shall allocate the reduction among school districts and charter schools in
1206     proportion to each school district's or charter school's percentage share of Minimum School
1207     Program funds.
1208          (3) Except as provided in Subsection (5) and subject to the requirements of Subsection
1209     (7), a [school district or charter school] local education board shall determine which programs
1210     are affected by a reduction pursuant to Subsection (2) and the amount each program is reduced.
1211          (4) Except as provided in Subsections (5) and (6), the requirement to spend a specified
1212     amount in any particular program is waived if reductions are made pursuant to Subsection (2).

1213          (5) A [school district or charter school] local education board may not reduce or
1214     reallocate spending of funds distributed to the school district or charter school for the following
1215     programs:
1216          (a) educator salary adjustments provided in Section 53A-17a-153;
1217          (b) the Teacher Salary Supplement Program provided in Section 53A-17a-156;
1218          (c) the extended year for special educators provided in Section 53A-17a-158;
1219          (d) USTAR centers provided in Section 53A-17a-159;
1220          (e) the School LAND Trust Program created in Section 53A-16-101.5; or
1221          (f) a special education program within the Basic School Program.
1222          (6) A [school district or charter school] local education board may not reallocate
1223     spending of funds distributed to the school district or charter school to a reserve account.
1224          (7) A [school district or charter school] local education board that reduces or
1225     reallocates funds in accordance with this section shall report all transfers into, or out of,
1226     Minimum School Program programs to the State Board of Education as part of the school
1227     district or charter school's Annual Financial and Program report.
1228          Section 31. Section 53A-17a-150 is amended to read:
1229          53A-17a-150. K-3 Reading Improvement Program.
1230          (1) As used in this section:
1231          (a) "Board" means the State Board of Education.
1232          (b) "Five domains of reading" include phonological awareness, phonics, fluency,
1233     comprehension, and vocabulary.
1234          (c) "Program" means the K-3 Reading Improvement Program.
1235          (d) "Program money" means:
1236          (i) school district revenue allocated to the program from other money available to the
1237     school district, except money provided by the state, for the purpose of receiving state funds
1238     under this section; and
1239          (ii) money appropriated by the Legislature to the program.

1240          (2) The K-3 Reading Improvement Program consists of program money and is created
1241     to supplement other school resources to achieve the state's goal of having third graders reading
1242     at or above grade level.
1243          (3) Subject to future budget constraints, the Legislature may annually appropriate
1244     money to the K-3 Reading Improvement Program.
1245          (4) (a) [To] For a school district or charter school to receive program money, a [school
1246     district or charter school must] local education board shall submit a plan to the board for
1247     reading proficiency improvement that incorporates the following components:
1248          (i) assessment;
1249          (ii) intervention strategies;
1250          (iii) professional development for classroom teachers in kindergarten through grade
1251     three;
1252          (iv) reading performance standards; and
1253          (v) specific measurable goals that include the following:
1254          (A) a growth goal for each school within a school district and each charter school based
1255     upon student learning gains as measured by benchmark assessments administered pursuant to
1256     Section 53A-1-606.6; and
1257          (B) a growth goal for each school district and charter school to increase the percentage
1258     of third grade students who read on grade level from year to year as measured by the third
1259     grade reading test administered pursuant to Section 53A-1-603.
1260          (b) The board shall provide model plans [which a school district or charter school] that
1261     a local education board may use, or the [school district or charter school] local education board
1262     may develop [its] the local education board's own plan.
1263          (c) Plans developed by a [school district or charter school] local education board shall
1264     be approved by the board.
1265          (d) The board shall develop uniform standards for acceptable growth goals that a
1266     [school district or charter school] local education board adopts for a school district or charter

1267     school as described in this Subsection (4).
1268          (5) (a) There is created within the K-3 Reading Achievement Program three funding
1269     programs:
1270          (i) the Base Level Program;
1271          (ii) the Guarantee Program; and
1272          (iii) the Low Income Students Program.
1273          (b) The board may use no more than $7,500,000 from an appropriation described in
1274     Subsection (3) for computer-assisted instructional learning and assessment programs.
1275          (6) Money appropriated to the board for the K-3 Reading Improvement Program and
1276     not used by the board for computer-assisted instructional learning and assessments as described
1277     in Subsection (5)(b), shall be allocated to the three funding programs as follows:
1278          (a) 8% to the Base Level Program;
1279          (b) 46% to the Guarantee Program; and
1280          (c) 46% to the Low Income Students Program.
1281          (7) (a) [To] For a school district or charter school to participate in the Base Level
1282     Program, [a school district or charter school] the local education board shall submit a reading
1283     proficiency improvement plan to the board as provided in Subsection (4) and must receive
1284     approval of the plan from the board.
1285          (b) (i) [Each] The local school board of a school district qualifying for Base Level
1286     Program funds and the governing boards of qualifying elementary charter schools combined
1287     shall receive a base amount.
1288          (ii) The base amount for the qualifying elementary charter schools combined shall be
1289     allocated among each charter school in an amount proportionate to:
1290          (A) each existing charter school's prior year fall enrollment in grades kindergarten
1291     through grade three; and
1292          (B) each new charter school's estimated fall enrollment in grades kindergarten through
1293     grade three.

1294          (8) (a) A [school district] local school board that applies for program money in excess
1295     of the Base Level Program funds shall choose to first participate in either the Guarantee
1296     Program or the Low Income Students Program.
1297          (b) A school district must fully participate in either the Guarantee Program or the Low
1298     Income Students Program before [it] the local school board may elect for the school district to
1299     either fully or partially participate in the other program.
1300          (c) [To] For a school district to fully participate in the Guarantee Program, [a school
1301     district] the local school board shall allocate to the program money available to the school
1302     district, except money provided by the state, equal to the amount of revenue that would be
1303     generated by a tax rate of .000056.
1304          (d) [To] For a school district to fully participate in the Low Income Students Program,
1305     [a school district] the local school board shall allocate to the program money available to the
1306     school district, except money provided by the state, equal to the amount of revenue that would
1307     be generated by a tax rate of .000065.
1308          (e) (i) The board shall verify that a [school district] local school board allocates the
1309     money required in accordance with Subsections (8)(c) and (d) before [it] the local school board
1310     distributes funds in accordance with this section.
1311          (ii) The State Tax Commission shall provide the board the information the board needs
1312     in order to comply with Subsection (8)(e)(i).
1313          (9) (a) Except as provided in Subsection (9)(c), the local school board of a school
1314     district that fully participates in the Guarantee Program shall receive state funds in an amount
1315     that is:
1316          (i) equal to the difference between $21 [times the] multiplied by the school district's
1317     total WPUs and the revenue the [school district] local school board is required to allocate under
1318     Subsection (8)(c) for the school district to fully participate in the Guarantee Program; and
1319          (ii) not less than $0.
1320          (b) Except as provided in Subsection (9)(c), an elementary charter school shall receive

1321     under the Guarantee Program an amount equal to $21 times the elementary charter school's
1322     total WPUs.
1323          (c) The board may adjust the $21 guarantee amount described in Subsections (9)(a) and
1324     (b) to account for actual appropriations and money used by the board for computer-assisted
1325     instructional learning and assessments.
1326          (10) The board shall distribute Low Income Students Program funds in an amount
1327     proportionate to the number of students in each school district or charter school who qualify for
1328     free or reduced price school lunch multiplied by two.
1329          (11) A school district that partially participates in the Guarantee Program or Low
1330     Income Students Program shall receive program funds based on the amount of school district
1331     revenue allocated to the program as a percentage of the amount of revenue that could have been
1332     allocated if the school district had fully participated in the program.
1333          (12) (a) A [school district or charter school] local education board shall use program
1334     money for reading proficiency improvement interventions in grades kindergarten through grade
1335     3 that have proven to significantly increase the percentage of students reading at grade level,
1336     including:
1337          (i) reading assessments; and
1338          (ii) focused reading remediations that may include:
1339          (A) the use of reading specialists;
1340          (B) tutoring;
1341          (C) before or after school programs;
1342          (D) summer school programs; or
1343          (E) the use of reading software; or
1344          (F) the use of interactive computer software programs for literacy instruction and
1345     assessments for students.
1346          (b) A [school district or charter school] local education board may use program money
1347     for portable technology devices used to administer reading assessments.

1348          (c) Program money may not be used to supplant funds for existing programs, but may
1349     be used to augment existing programs.
1350          (13) (a) Each [school district and charter school] local education board shall annually
1351     submit a report to the board accounting for the expenditure of program money in accordance
1352     with its plan for reading proficiency improvement.
1353          (b) If a [school district or charter school] local education board uses program money in
1354     a manner that is inconsistent with Subsection (12), the school district or charter school is liable
1355     for reimbursing the board for the amount of program money improperly used, up to the amount
1356     of program money received from the board.
1357          (14) (a) The board shall make rules to implement the program.
1358          (b) (i) The rules under Subsection (14)(a) shall require each [school district or charter
1359     school] local education board to annually report progress in meeting [school and school district]
1360     goals stated in the school district's or charter school's plan for student reading proficiency.
1361          (ii) If a school does not meet or exceed the school's goals, the [school district or charter
1362     school] local education board shall prepare a new plan which corrects deficiencies.
1363          (iii) The new plan [must] described in Subsection (14)(b)(ii) shall be approved by the
1364     board before the [school district or charter school] local education board receives an allocation
1365     for the next year.
1366          (15) (a) If for two consecutive school years, a school district fails to meet [its] the
1367     school district's goal to increase the percentage of third grade students who read on grade level
1368     as measured by the third grade reading test administered pursuant to Section 53A-1-603, the
1369     school district shall terminate any levy imposed under Section 53A-17a-151 and may not
1370     receive money appropriated by the Legislature for the K-3 Reading Improvement Program.
1371          (b) If for two consecutive school years, a charter school fails to meet [its] the charter
1372     school's goal to increase the percentage of third grade students who read on grade level as
1373     measured by the third grade reading test administered pursuant to Section 53A-1-603, the
1374     charter school may not receive money appropriated by the Legislature for the K-3 Reading

1375     Improvement Program.
1376          (16) The board shall make an annual report to the Public Education Appropriations
1377     Subcommittee that:
1378          (a) includes information on:
1379          (i) student learning gains in reading for the past school year and the five-year trend;
1380          (ii) the percentage of third grade students reading on grade level in the past school year
1381     and the five-year trend;
1382          (iii) the progress of schools and school districts in meeting goals stated in a school
1383     district's or charter school's plan for student reading proficiency; and
1384          (iv) the correlation between third grade students reading on grade level and results of
1385     third grade language arts scores on a criterion-referenced test or computer adaptive test; and
1386          (b) may include recommendations on how to increase the percentage of third grade
1387     students who read on grade level.
1388          Section 32. Section 53A-17a-151 is amended to read:
1389          53A-17a-151. Board leeway for reading improvement.
1390          (1) Except as provided in Subsection (4), a local school board may levy a tax rate of up
1391     to .000121 per dollar of taxable value for funding the school district's K-3 Reading
1392     Improvement Program created under Section 53A-17a-150.
1393          (2) The levy authorized under this section:
1394          (a) is in addition to any other levy or maximum rate;
1395          (b) does not require voter approval; and
1396          (c) may be modified or terminated by a majority vote of the local school board.
1397          (3) A local school board shall establish [its] a local school board-approved levy under
1398     this section by June 1 to have the levy apply to the fiscal year beginning July 1 in that same
1399     calendar year.
1400          (4) Beginning January 1, 2012, a local school board may not levy a tax in accordance
1401     with this section.

1402          Section 33. Section 53A-17a-153 is amended to read:
1403          53A-17a-153. Educator salary adjustments.
1404          (1) As used in this section, "educator" means a person employed by a school district,
1405     charter school, or the Utah Schools for the Deaf and the Blind who holds:
1406          (a) a license issued under Title 53A, Chapter 6, Educator Licensing and Professional
1407     Practices Act; and
1408          (b) a position as a:
1409          (i) classroom teacher;
1410          (ii) speech pathologist;
1411          (iii) librarian or media specialist;
1412          (iv) preschool teacher;
1413          (v) mentor teacher;
1414          (vi) teacher specialist or teacher leader;
1415          (vii) guidance counselor;
1416          (viii) audiologist;
1417          (ix) psychologist; or
1418          (x) social worker.
1419          (2) In recognition of the need to attract and retain highly skilled and dedicated
1420     educators, the Legislature shall annually appropriate money for educator salary adjustments,
1421     subject to future budget constraints.
1422          (3) Money appropriated to the State Board of Education for educator salary
1423     adjustments shall be distributed to school districts, charter schools, and the Utah Schools for the
1424     Deaf and the Blind in proportion to the number of full-time-equivalent educator positions in a
1425     school district, a charter school, or the Utah Schools for the Deaf and the Blind as compared to
1426     the total number of full-time-equivalent educator positions in school districts, charter schools,
1427     and the Utah Schools for the Deaf and the Blind.
1428          (4) School districts, charter schools, and the Utah Schools for the Deaf and the Blind

1429     shall award bonuses to educators as follows:
1430          (a) the amount of the salary adjustment shall be the same for each full-time-equivalent
1431     educator position in the school district, charter school, or the Utah Schools for the Deaf and the
1432     Blind;
1433          (b) a person who is not a full-time educator shall receive a partial salary adjustment
1434     based on the number of hours the person works as an educator; and
1435          (c) salary adjustments may be awarded only to educators who have received a
1436     satisfactory rating or above on their most recent evaluation.
1437          (5) (a) Each [school district and charter school] local education board and the Utah
1438     Schools for the Deaf and the Blind shall submit a report to the State Board of Education on
1439     how the money for salary adjustments was spent, including the amount of the salary adjustment
1440     and the number of full and partial salary adjustments awarded.
1441          (b) The State Board of Education shall compile the information reported under
1442     Subsection (5) and submit it to the Public Education Appropriations Subcommittee by
1443     November 30 each year.
1444          (6) The State Board of Education may make rules as necessary to administer this
1445     section, in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act.
1446          (7) (a) Subject to future budget constraints, the Legislature shall appropriate sufficient
1447     money each year to:
1448          (i) maintain educator salary adjustments provided in prior years; and
1449          (ii) provide educator salary adjustments to new employees.
1450          (b) Money appropriated for educator salary adjustments shall include money for the
1451     following employer-paid benefits:
1452          (i) retirement;
1453          (ii) worker's compensation;
1454          (iii) Social Security; and
1455          (iv) Medicare.

1456          (8) (a) Subject to future budget constraints, the Legislature shall:
1457          (i) maintain the salary adjustments provided to school administrators in the 2007-08
1458     school year; and
1459          (ii) provide salary adjustments for new school administrators in the same amount as
1460     provided for existing school administrators.
1461          (b) The appropriation provided for educator salary adjustments shall include salary
1462     adjustments for school administrators as specified in Subsection (8)(a).
1463          (c) In distributing and awarding salary adjustments for school administrators, the State
1464     Board of Education, school districts, charter schools, and the Utah Schools for the Deaf and the
1465     Blind shall comply with the requirements for the distribution and award of educator salary
1466     adjustments as provided in Subsections (3) and (4).
1467          Section 34. Section 53A-17a-159 is amended to read:
1468          53A-17a-159. Utah Science Technology and Research Initiative Centers
1469     Program.
1470          (1) (a) The Utah Science Technology and Research Initiative (USTAR) Centers
1471     Program is created to provide a financial incentive for [charter schools and school districts]
1472     local education boards to adopt programs in respective charter schools and school districts that
1473     result in a more efficient use of human resources and capital facilities.
1474          (b) The potential benefits of the program include:
1475          (i) increased compensation for math and science teachers by providing opportunities for
1476     an expanded contract year which will enhance school districts' and charter schools' ability to
1477     attract and retain talented and highly qualified math and science teachers;
1478          (ii) increased capacity of school buildings by using buildings more hours of the day or
1479     more days of the year, resulting in reduced capital facilities costs;
1480          (iii) decreased class sizes created by expanding the number of instructional
1481     opportunities in a year;
1482          (iv) opportunities for earlier high school graduation;

1483          (v) improved student college preparation;
1484          (vi) increased opportunities to offer additional remedial and advanced courses in math
1485     and science;
1486          (vii) opportunities to coordinate high school and post-secondary math and science
1487     education; and
1488          (viii) the creation or improvement of science, technology, engineering, and math centers
1489     (STEM Centers).
1490          (2) From money appropriated for the USTAR Centers Program, the State Board of
1491     Education shall award grants to charter schools and school districts to pay for costs related to
1492     the adoption and implementation of the program.
1493          (3) The State Board of Education shall:
1494          (a) solicit proposals from the State Charter School Board and [school districts] local
1495     school boards for the use of grant money to facilitate the adoption and implementation of the
1496     program; and
1497          (b) award grants on a competitive basis.
1498          (4) The State Charter School Board shall:
1499          (a) solicit proposals from charter [schools] school governing boards that may be
1500     interested in participating in the USTAR Centers Program;
1501          (b) prioritize [the charter school proposals and consolidate them] and consolidate the
1502     proposals into the equivalent of a single school district request; and
1503          (c) submit the consolidated request to the State Board of Education.
1504          (5) In selecting a grant recipient, the State Board of Education shall consider:
1505          (a) the degree to which a charter school or school district's proposed adoption and
1506     implementation of an extended year for math and science teachers achieves the benefits
1507     described in Subsection (1);
1508          (b) the unique circumstances of different urban, rural, large, small, growing, and
1509     declining charter schools and school districts; and

1510          (c) providing pilot programs in as many different school districts and charter schools as
1511     possible.
1512          (6) (a) Except as provided in Subsection (6)(b), a school district or charter school may
1513     only use grant money to provide full year teacher contracts, part-time teacher contract
1514     extensions, or combinations of both, for math and science teachers.
1515          (b) Up to 5% of the grant money may be used to fund math and science field trips,
1516     textbooks, and supplies.
1517          (7) Participation in the USTAR Centers Program shall be:
1518          (a) voluntary for an individual teacher; and
1519          (b) voluntary for a charter school or school district.
1520          [(8) The State Board of Education shall make an annual report during the 2009, 2010,
1521     and 2011 interims to the Public Education Appropriations Subcommittee describing the
1522     program's impact on students and its effectiveness at achieving the benefits described in
1523     Subsection (1).]
1524          Section 35. Section 53A-17a-165 is amended to read:
1525          53A-17a-165. Enhancement for Accelerated Students Program.
1526          (1) As used in this section, "eligible low-income student" means a student who:
1527          (a) takes an Advanced Placement test;
1528          (b) has applied for an Advanced Placement test fee reduction; and
1529          (c) qualifies for a free lunch or a lunch provided at reduced cost.
1530          (2) The State Board of Education shall distribute money appropriated for the
1531     Enhancement for Accelerated Students Program to school districts and charter schools
1532     according to a formula adopted by the State Board of Education, after consultation with [school
1533     districts and charter schools] local education boards.
1534          (3) A distribution formula adopted under Subsection (2) may include an allocation of
1535     money for:
1536          (a) Advanced Placement courses;

1537          (b) Advanced Placement test fees of eligible low-income students;
1538          (c) gifted and talented programs, including professional development for teachers of
1539     high ability students; and
1540          (d) International Baccalaureate programs.
1541          (4) The greater of 1.5% or $100,000 of the appropriation for the Enhancement for
1542     Accelerated Students Program may be allowed for International Baccalaureate programs.
1543          (5) A school district or charter school shall use money distributed under this section to
1544     enhance the academic growth of students whose academic achievement is accelerated.
1545          (6) (a) The State Board of Education shall develop performance criteria to measure the
1546     effectiveness of the Enhancement for Accelerated Students Program and make an annual report
1547     to the Public Education Appropriations Subcommittee on the effectiveness of the program.
1548          (b) In the report required by Subsection (6)(a), the State Board of Education shall
1549     include data showing the use and impact of money allocated for Advanced Placement test fees
1550     of eligible low-income students.
1551          Section 36. Section 53A-17a-166 is amended to read:
1552          53A-17a-166. Enhancement for At-Risk Students Program.
1553          (1) (a) Subject to the requirements of Subsection (1)(b), the State Board of Education
1554     shall distribute money appropriated for the Enhancement for At-Risk Students Program to
1555     school districts and charter schools according to a formula adopted by the State Board of
1556     Education, after consultation with [school districts and charter schools] local education boards.
1557          (b) (i) The State Board of Education shall appropriate $1,200,000 from the
1558     appropriation for Enhancement for At-Risk Students for a gang prevention and intervention
1559     program designed to help students at-risk for gang involvement stay in school.
1560          (ii) Money for the gang prevention and intervention program shall be distributed to
1561     school districts and charter schools through a request for proposals process.
1562          (2) In establishing a distribution formula under Subsection (1)(a), the State Board of
1563     Education shall use the following criteria:

1564          (a) low performance on U-PASS tests;
1565          (b) poverty;
1566          (c) mobility; and
1567          (d) limited English proficiency.
1568          (3) A [school district or charter school] local education board shall use money
1569     distributed under this section to improve the academic achievement of students who are at risk
1570     of academic failure.
1571          (4) The State Board of Education shall develop performance criteria to measure the
1572     effectiveness of the Enhancement for At-Risk Students Program and make an annual report to
1573     the Public Education Appropriations Subcommittee on the effectiveness of the program.
1574          Section 37. Section 53A-17a-167 is amended to read:
1575          53A-17a-167. Early intervention program -- Enhanced kindergarten program --
1576     Educational technology.
1577          (1) The State Board of Education shall, as described in Subsection (4), distribute funds
1578     appropriated under this section for an enhanced kindergarten program described in Subsection
1579     (2), to school districts and charter schools that apply for the funds.
1580          (2) A [school district or charter school] local education board shall use funds
1581     appropriated in this section for a school district or charter school to offer an early intervention
1582     program, delivered through an enhanced kindergarten program that:
1583          (a) is an academic program focused on building age-appropriate literacy and numeracy
1584     skills;
1585          (b) uses an evidence-based early intervention model;
1586          (c) is targeted to at-risk students; and
1587          (d) is delivered through additional hours or other means.
1588          (3) A [school district or charter school] local education board may not require a student
1589     to participate in an enhanced kindergarten program described in Subsection (2).
1590          (4) The State Board of Education shall distribute funds appropriated under this section

1591     for an enhanced kindergarten program described in Subsection (2) as follows:
1592          (a) (i) the total allocation for charter schools shall be calculated by:
1593          (A) dividing the number of charter school students by the total number of students in
1594     the public education system in the prior school year; and
1595          (B) multiplying the resulting percentage by the total amount of available funds; and
1596          (ii) the amount calculated under Subsection (4)(a) shall be distributed to charter schools
1597     with the greatest need for an enhanced kindergarten program, as determined by the State Board
1598     of Education in consultation with the State Charter School Board;
1599          (b) each school district shall receive the amount calculated by:
1600          (i) multiplying the value of the weighted pupil unit by 0.45; and
1601          (ii) multiplying the result by 20; and
1602          (c) the remaining funds, after the allocations described in Subsections (4)(a) and (4)(b)
1603     are made, shall be distributed to applicant school districts by:
1604          (i) determining the number of students eligible to receive free lunch in the prior school
1605     year for each school district; and
1606          (ii) prorating the remaining funds based on the number of students eligible to receive
1607     free lunch in each school district.
1608          (5) In addition to an enhanced kindergarten program described in Subsection (2), the
1609     early intervention program includes a component to address early reading through the use of
1610     early interactive reading software.
1611          (6) (a) Subject to legislative appropriations, the State Board of Education shall select
1612     and contract with one or more technology providers, through a request for proposals process,
1613     to provide early interactive reading software for literacy instruction and assessments for
1614     students in kindergarten through grade 3.
1615          (b) By August 1 of each year, the State Board of Education shall distribute licenses for
1616     early interactive reading software described in Subsection (6)(a) to the school districts and
1617     charter schools of local education boards that apply for the licenses.

1618          (c) Except as provided in Subsection (7)(c), a school district or charter school that
1619     received a license described in Subsection (6)(b) during the prior year shall be given first priority
1620     to receive an equivalent license during the current year.
1621          (d) Licenses distributed to school districts and charter schools in addition to the licenses
1622     described in Subsection (6)(c) shall be distributed through a competitive process.
1623          (7) (a) As used in this Subsection (7), "dosage" means amount of instructional time.
1624          (b) A public school that receives a license described in Subsection (6)(b) shall use the
1625     license:
1626          (i) for a student in kindergarten or grade 1:
1627          (A) for intervention for the student if the student is reading below grade level; or
1628          (B) for advancement beyond grade level for the student if the student is reading at or
1629     above grade level;
1630          (ii) for a student in grade 2 or 3, for intervention for the student if the student is reading
1631     below grade level; and
1632          (iii) in accordance with the technology provider's dosage recommendations.
1633          (c) A public school that does not use the early interactive reading software in
1634     accordance with the technology provider's dosage recommendations for two consecutive years
1635     may not continue to receive a license.
1636          (8) (a) On or before August 1 of each year, the State Board of Education shall select
1637     and contract with an independent evaluator, through a request for proposals process, to act as
1638     an independent contractor to evaluate early interactive reading software provided under this
1639     section.
1640          (b) The State Board of Education shall ensure that a contract with an independent
1641     evaluator requires the independent evaluator to:
1642          (i) evaluate a student's learning gains as a result of using early interactive reading
1643     software provided under Subsection (6);
1644          (ii) for the evaluation under Subsection (8)(b)(i), use an assessment that is not

1645     developed by a provider of early interactive reading software; and
1646          (iii) determine the extent to which a public school uses the early interactive reading
1647     software in accordance with a technology provider's dosage recommendations under Subsection
1648     (7).
1649          (c) The State Board of Education and the independent evaluator selected under
1650     Subsection (8)(a) shall report annually on the results of the evaluation to the Education Interim
1651     Committee and the governor.
1652          (d) The State Board of Education may use up to 4% of the appropriation provided
1653     under Subsection (6)(a) to contract with an independent evaluator selected under Subsection
1654     (8)(a).
1655          Section 38. Section 53A-17a-171 is amended to read:
1656          53A-17a-171. Intergenerational Poverty Interventions Grant Program --
1657     Definitions -- Grant requirements -- Reporting requirements.
1658          (1) As used in this section:
1659          (a) "Board" means the State Board of Education.
1660          (b) "Eligible student" means a student who is classified as a child affected by
1661     intergenerational poverty.
1662          (c) "Intergenerational poverty" has the same meaning as in Section 35A-9-102.
1663          (d) "Local Education Agency" or "LEA" means a school district or charter school.
1664          (e) "Program" means the Intergenerational Poverty Interventions Grant Program
1665     created in Subsection (2).
1666          (2) The Intergenerational Poverty Interventions Grant Program is created to provide
1667     grants to eligible LEAs to fund additional educational opportunities at eligible LEAs, for eligible
1668     students, outside of the regular school day offerings.
1669          (3) Subject to future budget constraints, the board shall distribute to LEAs money
1670     appropriated for the program in accordance with this section.
1671          (4) The board shall:

1672          (a) solicit proposals from [LEAs] local education boards to receive money under the
1673     program; and
1674          (b) award grants to [LEAs] a local education board on behalf of an LEA based on
1675     criteria described in Subsection (5).
1676          (5) In awarding a grant under Subsection (4), the board shall consider:
1677          (a) the percentage of an LEA's students that are classified as children affected by
1678     intergenerational poverty;
1679          (b) the level of administrative support and leadership at an eligible LEA to effectively
1680     implement, monitor, and evaluate the program; and
1681          (c) an LEA's commitment and ability to work with the Department of Workforce
1682     Services, the Department of Health, the Department of Human Services, and the juvenile courts
1683     to provide services to the LEA's eligible students.
1684          (6) To receive a grant under the program[, an LEA] on behalf of an LEA, a local
1685     education board shall submit a proposal to the board detailing:
1686          (a) the LEA's strategy to implement the program, including the LEA's strategy to
1687     improve the academic achievement of children affected by intergenerational poverty;
1688          (b) the LEA's strategy for coordinating with and engaging the Department of
1689     Workforce Services to provide services for the LEA's eligible students;
1690          (c) the number of students the LEA plans to serve, categorized by age and
1691     intergenerational poverty status;
1692          (d) the number of students, eligible students, and schools the LEA plans to fund with
1693     the grant money; and
1694          (e) the estimated cost per student.
1695          (7) (a) The board shall annually report to the Utah Intergenerational Welfare Reform
1696     Commission, created in Section 35A-9-301, by November 30 of each year, on:
1697          (i) the progress of LEA programs using grant money;
1698          (ii) the progress of LEA programs in improving the academic achievement of children

1699     affected by intergenerational poverty; and
1700          (iii) the LEA's coordination efforts with the Department of Workforce Services, the
1701     Department of Health, the Department of Human Services, and the juvenile courts.
1702          (b) The board shall provide the report described in Subsection (7)(a) to the Education
1703     Interim Committee upon request.
1704          (c) [LEAs that receive] An LEA that receives grant money pursuant to this section shall
1705     provide to the board information that is necessary for the board's report described in Subsection
1706     (7)(a).
1707          Section 39. Section 63J-1-220 is amended to read:
1708          63J-1-220. Reporting related to pass through money distributed by state
1709     agencies.
1710          (1) As used in this section:
1711          (a) "Local government entity" means a county, municipality, school district, local
1712     district under Title 17B, Limited Purpose Local Government Entities - Local Districts, special
1713     service district under Title 17D, Chapter 1, Special Service District Act, or any other political
1714     subdivision of the state.
1715          (b) (i) "Pass through funding" means money appropriated by the Legislature to a state
1716     agency that is intended to be passed through the state agency to one or more:
1717          (A) local government entities;
1718          (B) private organizations, including not-for-profit organizations; or
1719          (C) persons in the form of a loan or grant.
1720          (ii) "Pass through funding" may be:
1721          (A) general funds, dedicated credits, or any combination of state funding sources; and
1722          (B) ongoing or one-time.
1723          (c) "Recipient entity" means a local government entity or private entity, including a
1724     nonprofit entity, that receives money by way of pass through funding from a state agency.
1725          (d) "State agency" means a department, commission, board, council, agency, institution,

1726     officer, corporation, fund, division, office, committee, authority, laboratory, library, unit,
1727     bureau, panel, or other administrative unit of the executive branch of the state.
1728          (e) (i) "State money" means money that is owned, held, or administered by a state
1729     agency and derived from state fees or tax revenues.
1730          (ii) "State money" does not include contributions or donations received by a state
1731     agency.
1732          (2) A state agency may not provide a recipient entity state money through pass through
1733     funding unless:
1734          (a) the state agency enters into a written agreement with the recipient entity; and
1735          (b) the written agreement described in Subsection (2)(a) requires the recipient entity to
1736     provide the state agency:
1737          (i) a written description and an itemized report at least annually detailing the
1738     expenditure of the state money, or the intended expenditure of any state money that has not
1739     been spent; and
1740          (ii) a final written itemized report when all the state money is spent.
1741          (3) A state agency shall provide to the Governor's Office of Management and Budget a
1742     copy of a written description or itemized report received by the state agency under Subsection
1743     (2).
1744          (4) Notwithstanding Subsection (2), a state agency is not required to comply with this
1745     section to the extent that the pass through funding is issued:
1746          (a) under a competitive award process;
1747          (b) in accordance with a formula enacted in statute;
1748          (c) in accordance with a state program under parameters in statute or rule that guides
1749     the distribution of the pass through funding; or
1750          (d) under the authority of the minimum school program, as defined in Subsection
1751     53A-17a-103[(4)](7)(e).