Representative Norman K Thurston proposes the following substitute bill:


1     
BLOCK GRANT FUNDING AND STATUTORY EXEMPTION

2     
PROGRAM FOR PUBLIC EDUCATION

3     
2017 GENERAL SESSION

4     
STATE OF UTAH

5     
Chief Sponsor: Norman K Thurston

6     
Senate Sponsor: ____________

7     

8     LONG TITLE
9     General Description:
10          This bill requires the State Board of Education to design a block grant and statutory
11     exemption program for local education agencies.
12     Highlighted Provisions:
13          This bill:
14          ▸     defines terms;
15          ▸     authorizes a local education agency that participates in a block grant program to
16     comply with provisions related to block grant funding in place of other statutory
17     requirements;
18          ▸     requires the board to design a block grant program;
19          ▸     specifies the otherwise restricted money and statutory provisions that the board may
20     include in a block grant program;
21          ▸     requires the board to report to the Legislature;
22          ▸     requires the board to make rules;
23          ▸     requires the board to, beginning in the 2018-2019 school year, distribute certain
24     money to a participating LEA as a block grant; and
25          ▸     requires the board to, beginning in the 2018-2019 school year, grant a participating

26     LEA an exemption from certain requirements related to employee evaluations.
27     Money Appropriated in this Bill:
28          None
29     Other Special Clauses:
30          None
31     Utah Code Sections Affected:
32     AMENDS:
33          53A-17a-105, as last amended by Laws of Utah 2016, Chapter 229
34     ENACTS:
35          53A-8a-103, Utah Code Annotated 1953
36          53A-17a-301, Utah Code Annotated 1953
37          53A-17a-302, Utah Code Annotated 1953
38          53A-17a-303, Utah Code Annotated 1953
39          53A-17a-304, Utah Code Annotated 1953
40          53A-17a-305, Utah Code Annotated 1953
41     

42     Be it enacted by the Legislature of the state of Utah:
43          Section 1. Section 53A-8a-103 is enacted to read:
44          53A-8a-103. Applicability of part.
45          (1) Except as provided in Subsection (2), a local school board shall comply with the
46     provisions of this part.
47          (2) In accordance with Chapter 17a, Part 3, Block Grant Program, a school district that
48     participates in a block grant program may receive an exemption from:
49          (a) Chapter 8a, Part 3, Employee Evaluations;
50          (b) Chapter 8a, Part 4, Educator Evaluations;
51          (c) Chapter 8a, Part 6, Performance Compensation; or
52          (d) Chapter 8a, Part 7, Evaluation and Compensation of Administrators.
53          Section 2. Section 53A-17a-105 is amended to read:
54          53A-17a-105. Powers and duties of State Board of Education to adjust Minimum
55     School Program allocations -- Use of remaining funds at the end of a fiscal year --
56     Applicability of statutory requirements.

57          (1) For purposes of this section:
58          (a) "Board" means the State Board of Education.
59          (b) "ESEA" means the Elementary and Secondary Education Act of 1965, 20 U.S.C.
60     Sec. 6301 et seq.
61          (c) "LEA" means:
62          (i) a school district; or
63          (ii) a charter school.
64          (d) "Program" means a program or allocation funded by a line item appropriation or
65     other appropriation designated as:
66          (i) Basic Program;
67          (ii) Related to Basic Programs;
68          (iii) Voted and Board Levy Programs; or
69          (iv) Minimum School Program.
70          (2) Except as provided in Subsection (3) or (5), if the number of weighted pupil units
71     in a program is underestimated, the board shall reduce the value of the weighted pupil unit in
72     that program so that the total amount paid for the program does not exceed the amount
73     appropriated for the program.
74          (3) If the number of weighted pupil units in a program is overestimated, the board shall
75     spend excess money appropriated for the following purposes giving priority to the purpose
76     described in Subsection (3)(a):
77          (a) to support the value of the weighted pupil unit in a program within the basic
78     state-supported school program in which the number of weighted pupil units is underestimated;
79          (b) to support the state guarantee per weighted pupil unit provided under the voted
80     local levy program established in Section 53A-17a-133 or the board local levy program
81     established in Section 53A-17a-164, if:
82          (i) local contributions to the voted local levy program or board local levy program are
83     overestimated; or
84          (ii) the number of weighted pupil units within school districts qualifying for a
85     guarantee is underestimated;
86          (c) to support the state supplement to local property taxes allocated to charter schools,
87     if the state supplement is less than the amount prescribed by Section 53A-1a-513; or

88          (d) to support a school district with a loss in student enrollment as provided in Section
89     53A-17a-139.
90          (4) If local contributions from the minimum basic tax rate imposed under Section
91     53A-17a-135 are overestimated, the board shall reduce the value of the weighted pupil unit for
92     all programs within the basic state-supported school program so the total state contribution to
93     the basic state-supported school program does not exceed the amount of state funds
94     appropriated.
95          (5) If local contributions from the minimum basic tax rate imposed under Section
96     53A-17a-135 are underestimated, the board shall:
97          (a) spend the excess local contributions for the purposes specified in Subsection (3),
98     giving priority to supporting the value of the weighted pupil unit in programs within the basic
99     state-supported school program in which the number of weighted pupil units is underestimated;
100     and
101          (b) reduce the state contribution to the basic state-supported school program so the
102     total cost of the basic state-supported school program does not exceed the total state and local
103     funds appropriated to the basic state-supported school program plus the local contributions
104     necessary to support the value of the weighted pupil unit in programs within the basic
105     state-supported school program in which the number of weighted pupil units is underestimated.
106          (6) Except as provided in Subsection (3) or (5), the board shall reduce the guarantee
107     per weighted pupil unit provided under the voted local levy program established in Section
108     53A-17a-133 or board local levy program established in Section 53A-17a-164, if:
109          (a) local contributions to the voted local levy program or board local levy program are
110     overestimated; or
111          (b) the number of weighted pupil units within school districts qualifying for a
112     guarantee is underestimated.
113          (7) (a) The board may use program funds as described in Subsection (7)(b) if:
114          (i) the state loses flexibility due to the U.S. Department of Education's rejection of the
115     state's renewal application for flexibility under the ESEA; and
116          (ii) the state is required to fully implement the requirements of Title I of the ESEA, as
117     amended by the No Child Left Behind Act of 2001.
118          (b) Subject to the requirements of Subsections (7)(a) and (c), for fiscal year 2016, after

119     any transfers or adjustments described in Subsections (2) through (6) are made, the board may
120     use up to $15,000,000 of excess money appropriated to a program, remaining at the end of
121     fiscal year 2015, to mitigate a budgetary impact to an LEA due to the LEA's loss of flexibility
122     related to implementing the requirements of Title I of the ESEA, as amended by the No Child
123     Left Behind Act of 2001.
124          (c) In addition to the reporting requirement described in Subsection [(9)] (10), the
125     board shall report actions taken by the board under this Subsection (7) to the Executive
126     Appropriations Committee.
127          (8) Money appropriated to the board is nonlapsing.
128          (9) (a) Except as provided in Subsection (9)(b), an LEA shall comply with statutory
129     restrictions on the use of money received for a program described in this title.
130          (b) For money that an LEA receives as a block grant under Part 3, Block Grant
131     Program, the LEA shall comply with the requirements placed on the block grant under Part 3,
132     Block Grant Program, in place of the requirements otherwise described in this title.
133          [(9)] (10) The board shall report actions taken by the board under [this section]
134     Subsections (2) through (7) to the Office of the Legislative Fiscal Analyst and the Governor's
135     Office of Management and Budget.
136          Section 3. Section 53A-17a-301 is enacted to read:
137     
Part 3. Block Grant Program

138          53A-17a-301. Definitions.
139          As used in this part:
140          (1) "Block grant program" means a program designed by the board under Section
141     53A-17a-302 to:
142          (a) distribute otherwise restricted money to an LEA as a block grant; or
143          (b) allow an LEA to be exempt from provisions related to employee evaluations.
144          (2) "Board" means the State Board of Education.
145          (3) "Local education agency" or "LEA" means:
146          (a) a school district; or
147          (b) a charter school.
148          (4) "Participating LEA" means an LEA that qualifies to receive:
149          (a) a block grant described in this part; or

150          (b) an exemption from statutory provisions described in Subsection
151     53A-17a-302(2)(b).
152          Section 4. Section 53A-17a-302 is enacted to read:
153          53A-17a-302. Board to design a block grant program -- Report to Legislature on
154     block grant program design.
155          (1) The board shall design a block grant program that provides an LEA the opportunity
156     to:
157          (a) receive certain money, which is otherwise restricted, as a block grant; and
158          (b) be exempted from certain statutory provisions related to employee evaluations.
159          (2) (a) In designing a block grant program, the board may only include in the program
160     design money appropriated for:
161          (i) within the state-supported Minimum School Program described in Part 1, Minimum
162     School Program Act, the purposes described in:
163          (A) Section 53A-17a-124.5;
164          (B) Section 53A-17a-127;
165          (C) Section 53A-17a-150;
166          (D) Section 53A-17a-154;
167          (E) Section 53A-17a-155;
168          (F) Section 53A-17a-159;
169          (G) Section 53A-17a-162;
170          (H) Section 53A-17a-165;
171          (I) Section 53A-17a-166;
172          (J) Section 53A-17a-167;
173          (K) Section 53A-17a-168; or
174          (L) Section 53A-17a-170;
175          (ii) the Critical Languages Program described in Section 53A-15-104;
176          (iii) the Dual Language Immersion Program described in Section 53A-15-105;
177          (iv) the Digital Teaching and Learning Program described in Chapter 1, Part 15, Digital
178     Teaching and Learning Grant Program; or
179          (v) the concurrent enrollment program described in Chapter 15, Part 17, Concurrent
180     Enrollment.

181          (b) In the design of the block grant program, the board may include a provision for a
182     participating LEA to receive an exemption from:
183          (i) Chapter 8a, Part 3, Employee Evaluations;
184          (ii) Chapter 8a, Part 4, Educator Evaluations;
185          (iii) Chapter 8a, Part 6, Performance Compensation; or
186          (iv) Chapter 8a, Part 7, Evaluation and Compensation of Administrators.
187          (3) On or before the Education Interim Committee's November 2017 meeting, the
188     board shall report to the Education Interim Committee and the Public Education
189     Appropriations Subcommittee on the design of the block grant program, including:
190          (a) subject to Subsection (2):
191          (i) the specific otherwise restricted money that an LEA may apply to the board to
192     receive as a block grant; and
193          (ii) statutory restrictions from which an LEA may apply to the board for an exemption
194     as part of the block grant program;
195          (b) requirements for an LEA's application to participate in the block grant program;
196          (c) the objective criteria the board will use to determine if an LEA qualifies to receive
197     money as a block grant;
198          (d) how the board will determine the amount of money to distribute to a participating
199     LEA as a block grant;
200          (e) the potential administrative cost to the board of distributing money to a
201     participating LEA as a block grant;
202          (f) the outcome measures the board will use to evaluate the block grant program; and
203          (g) the number of years an LEA may participate in the block grant program and the
204     conditions under which an LEA's participation in the block grant program ends.
205          Section 5. Section 53A-17a-303 is enacted to read:
206          53A-17a-303. Rulemaking.
207          After reporting to the Legislature as described in Section 53A-1a-302, in accordance
208     with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the board shall make rules
209     that:
210          (1) establish the block grant program;
211          (2) describe the specific otherwise restricted money an LEA may request to have

212     included in a block grant;
213          (3) describe the process for an LEA to apply for a block grant or statutory exemption;
214          (4) establish objective criteria for the board to use in determining if an LEA qualifies
215     for a block grant; and
216          (5) establish goals, outcome measures, and reporting requirements for a participating
217     LEA.
218          Section 6. Section 53A-17a-304 is enacted to read:
219          53A-17a-304. Selection of participating LEAs.
220          Beginning in the 2018-2019 school year, the board shall select participating LEAs and
221     implement the block grant program designed by the board under Section 53A-17a-302.
222          Section 7. Section 53A-17a-305 is enacted to read:
223          53A-17a-305. Reporting requirements.
224          (1) Each year that an LEA participates in the block grant program, the board shall
225     report to the Education Interim Committee about the block grant program on or before
226     November 1.
227          (2) The board shall ensure that the report includes:
228          (a) a summary of accounting for each participating LEA, if applicable;
229          (b) an evaluation of how well each participating LEA is meeting the participating
230     LEA's goals and outcome measures;
231          (c) problems or difficulties with the program that the board identifies;
232          (d) recommendations for statutory changes; and
233          (e) a recommendation about whether the block grant program should be maintained,
234     eliminated, or expanded.