Chief Sponsor: Jefferson Moss

Senate Sponsor: Ann Millner


9     General Description:
10          This bill amends provisions related to funding for public schools and educators and
11     provisions related to enrollment in district and charter schools.
12     Highlighted Provisions:
13          This bill:
14          ▸     defines terms;
15          ▸     permits the State Board of Education (state board) to use a different date or dates for
16     counting average daily membership when calculating the growth factor for the
17     2020-2021 school year;
18          ▸     amends the distribution of small district base funding for necessarily existent small
19     schools;
20          ▸     creates a salary supplement for teachers who hold a certification from the National
21     Board for Professional Teaching Standards;
22          ▸     appropriates money to the state board to allocate to local education agencies to pay
23     for software licenses for English language learner student instruction;
24          ▸     allows a charter school to give enrollment preference for the 2021-2022 school year
25     to a student who withdrew from the charter school to attend an online school or
26     home school in the 2020-2021 school year due to the COVID-19 emergency; and
27          ▸     allows the state board to use federal Elementary and Secondary School Emergency
28     funds and nonlapsing Minimum School Program funds for charter school local
29     replacement funding in the 2020-2021 school year.

30     Money Appropriated in this Bill:
31          This bill appropriates:
32          ▸     to the State Board of Education - Minimum School Program - Related to Basic
33     School Programs:
34               •     from the Education Fund, $246,300; and
35          ▸     to the State Board of Education - Minimum School Program - Related to Basic
36     School Programs:
37               •     from the Education Fund, One-time, $3,000,000.
38     Other Special Clauses:
39          This bill provides a special effective date.
40     Utah Code Sections Affected:
41     AMENDS:
42          53F-2-302, as last amended by Laws of Utah 2019, Chapter 186
43          53F-2-304, as last amended by Laws of Utah 2020, Fifth Special Session, Chapter 14
44          53F-2-312, as last amended by Laws of Utah 2019, Chapter 186
45          53G-6-502, as last amended by Laws of Utah 2019, Chapters 151 and 293
46          53G-6-504, as last amended by Laws of Utah 2020, Chapter 408
47     ENACTS:
48          53F-2-523, Utah Code Annotated 1953

50     Be it enacted by the Legislature of the state of Utah:
51          Section 1. Section 53F-2-302 is amended to read:
52          53F-2-302. Determination of weighted pupil units.
53          The number of weighted pupil units in the Minimum School Program for each year is
54     the total of the units for each school district and, subject to Subsection (4), charter school,
55     determined as follows:
56          (1) The number of units is computed by adding the average daily membership of all
57     pupils of the school district or charter school attending schools, other than kindergarten and

58     self-contained classes for children with a disability.
59          (2) The number of units is computed by adding the average daily membership of all
60     pupils of the school district or charter school enrolled in kindergarten and multiplying the total
61     by .55.
62          (a) In those school districts or charter schools that do not hold kindergarten for a full
63     nine-month term, the local school board or charter school governing board may approve a
64     shorter term of nine weeks' duration.
65          (b) Upon LEA governing board approval, the number of pupils in average daily
66     membership at the short-term kindergarten shall be counted for the purpose of determining the
67     number of units allowed in the same ratio as the number of days the short-term kindergarten is
68     held, not exceeding nine weeks, compared to the total number of days schools are held in that
69     school district or charter school in the regular school year.
70          (3) (a) The state board shall use prior year plus growth to determine average daily
71     membership in distributing money under the Minimum School Program where the distribution
72     is based on kindergarten through grade 12 ADMs or weighted pupil units.
73          (b) Under prior year plus growth, kindergarten through grade 12 average daily
74     membership for the current year is based on the actual kindergarten through grade 12 average
75     daily membership for the previous year plus an estimated percentage growth factor.
76          (c) The growth factor is the percentage increase in total average daily membership on
77     the first school day of October in the current year as compared to the total average daily
78     membership on the first school day of October of the previous year.
79          (4) In distributing funds to charter schools under this section, charter school pupils
80     shall be weighted, where applicable, as follows:
81          (a) .55 for kindergarten pupils;
82          (b) .9 for pupils in grades 1 through 6;
83          (c) .99 for pupils in grades 7 through 8; and
84          (d) 1.2 for pupils in grades 9 through 12.
85          (5) Notwithstanding Subsection (3)(c):

86          (a) for the 2020-2021 school year the state board may use a count of average daily
87     membership on any day or days of the current school year in 2020 to calculate a growth factor
88     for the 2020-2021 school year; and
89          (b) when calculating the growth factor as described in Subsection (5)(a), the state board
90     shall comply with all applicable federal requirements.
91          Section 2. Section 53F-2-304 is amended to read:
92          53F-2-304. Necessarily existent small schools -- Computing additional weighted
93     pupil units -- Consolidation of small schools.
94          (1) As used in this section, "necessarily existent small schools funding balance" means
95     the difference between:
96          (a) the amount appropriated for the necessarily existent small schools program in a
97     fiscal year; and
98          (b) the amount distributed to school districts for the necessarily existent small schools
99     program in the same fiscal year.
100          (2) (a) Upon application by a local school board, the state board shall, in consultation
101     with the local school board, classify schools in the school district as necessarily existent small
102     schools, in accordance with this section and state board rules adopted under Subsection (3).
103          (b) An application must be submitted to the state board before April 2, and the state
104     board must report a decision to a local school board before June 2.
105          (3) The state board shall adopt standards and make rules, in accordance with Title 63G,
106     Chapter 3, Utah Administrative Rulemaking Act, to:
107          (a) govern the approval of necessarily existent small schools consistent with principles
108     of efficiency and economy that serve the purpose of eliminating schools where consolidation is
109     feasible by participation in special school units; and
110          (b) ensure that school districts are not building secondary schools in close proximity to
111     one another where economy and efficiency would be better served by one school meeting the
112     needs of secondary students in a designated geographical area.
113          (4) The state board shall prepare and publish objective standards and guidelines for

114     determining which small schools are necessarily existent after consultation with local school
115     boards.
116          (5) (a) Additional weighted pupil units for schools classified as necessarily existent
117     small schools shall be computed using distribution formulas adopted by the state board.
118          (b) The distribution formulas establish the following maximum sizes for funding under
119     the necessarily existent small school program:
120          (i) an elementary school                    160
121          (ii) a one or two-year secondary school          300
122          (iii) a three-year secondary school               450
123          (iv) a four-year secondary school               500
124          (v) a six-year secondary school               600
125          (c) An elementary school with fewer than 10 students shall receive the same add-on
126     weighted pupil units as an elementary school with 10 students.
127          (d) A secondary school with fewer than 15 students shall receive the same add-on
128     weighted pupil units as a secondary school with 15 students.
129          (e) If a necessarily existent small school generates ADM in both elementary and
130     secondary grades, the state board may divide the school's ADM between an elementary and
131     secondary distribution formula.
132          (f) The state board shall prepare and distribute an allocation table based on the
133     distribution formula to each school district.
134          (6) (a) To avoid penalizing a school district financially for consolidating the school
135     district's small schools, additional weighted pupil units may be allowed a school district each
136     year, not to exceed two years.
137          (b) The additional weighted pupil units may not exceed the difference between what
138     the school district receives for a consolidated school and what the school district would have
139     received for the small schools had the small schools not been consolidated.
140          (7) (a) The state board may allocate up to 208 weighted pupil units to support schools
141     that:

142          (i) have isolating conditions, as defined by the state board, including geographic
143     isolation; and
144          (ii) do not qualify for necessarily existent small schools funding due to formula
145     limitations.
146          (b) The state board shall review funding allocations under this Subsection (7) at least
147     once every five calendar years.
148          (8) If the state board classifies a school as a necessarily existent small school in
149     accordance with this section, the state board shall, subject to legislative appropriation,
150     distribute small district base funding to the relevant school district in the following amounts:
151          (a) for a district with [250] 500 students or less, 83 additional weighted pupil units;
152          [(b) for a district with 251 to 500 students, 56 additional weighted pupil units;]
153          [(c)] (b) for a district with 501 to 1,000 students, 28 additional weighted pupil units;
154     and
155          [(d)] (c) for a district with 1,001 to 2,000 students, 14 additional weighted pupil units.
156          (9) Subject to legislative appropriation, the state board shall give first priority from an
157     appropriation made under this section to funding an expense approved by the state board as
158     described in Subsection 53G-6-305(3)(a).
159          (10) (a) Subject to Subsection (10)(b) and after a distribution made under Subsection
160     (9), the state board may distribute a portion of necessarily existent small schools funding:
161          (i) in accordance with a formula adopted by the state board that considers the tax effort
162     of a local school board; or
163          (ii) to isolated small schools, as identified by the state board.
164          (b) The amount distributed in accordance with Subsection (10)(a) may not exceed the
165     necessarily existent small schools fund in balance of the prior fiscal year.
166          (11) A local school board may use the money allocated under this section for
167     maintenance and operation of school programs or for other school purposes as approved by the
168     state board.
169          Section 3. Section 53F-2-312 is amended to read:

170          53F-2-312. Appropriation for class size reduction.
171          (1) Money appropriated to the state board for class size reduction shall be used to
172     reduce the average class size in kindergarten through grade 8 in the state's public schools.
173          (2) A school district or charter school shall receive an allocation for class size
174     reduction based on the school district or charter school's prior year average daily membership
175     plus growth in kindergarten through grade 8 as determined under [Subsection] Section
176     53F-2-302[(3)] compared to the total prior year average daily membership plus growth in
177     kindergarten through grade 8 statewide.
178          (3) (a) An LEA governing board may use an allocation to reduce class size in any one
179     or all of the grades referred to under this section, except as otherwise provided in Subsection
180     (3)(b).
181          (b) (i) An LEA governing board shall use 50% of an allocation to reduce class size in
182     any one or all of grades kindergarten through grade 2, with an emphasis on improving student
183     reading skills.
184          (ii) If a school district's or charter school's average class size is below 18 students in
185     kindergarten through grade 2, an LEA governing board may petition the state board for, and the
186     state board may grant, a waiver of the requirement described in Subsection (3)(b)(i).
187          (4) A school may use nontraditional innovative and creative methods to reduce class
188     sizes with this appropriation and may use part of an allocation to focus on class size reduction
189     for specific groups, such as at risk students, or for specific blocks of time during the school
190     day.
191          (5) (a) An LEA governing board may use up to 20% of an allocation under this section
192     for capital facilities projects if such projects would help to reduce class size.
193          (b) If a school district's or charter school's student population increases by at least 5%
194     or at least 700 students from the previous school year, the LEA governing board may use up to
195     50% of an allocation received by the school district or charter school under this section for
196     classroom construction.
197          (6) This appropriation is to supplement any other appropriation made for class size

198     reduction.
199          (7) The Legislature shall provide for an annual adjustment in the appropriation
200     authorized under this section in proportion to the increase in the number of students in the state
201     in kindergarten through grade 8.
202          Section 4. Section 53F-2-523 is enacted to read:
203          53F-2-523. Salary supplement for National Board-certified teachers.
204          (1) As used in this section:
205          (a) "National Board certification" means the same as that term is defined in Section
206     53E-6-102.
207          (b) "National Board-certified teacher" or "board-certified teacher" means a teacher
208     who:
209          (i) holds a National Board certification; and
210          (ii) has an assignment to teach in an LEA.
211          (c) "Salary supplement" means a salary supplement for a board-certified or Title I
212     school board-certified teacher described in this section.
213          (d) "Title I school" means a school that receives funds under Title I of the Elementary
214     and Secondary Education Act of 1965, 20 U.S.C. Sec. 6301 et seq.
215          (e) "Title I school board-certified teacher" means a board-certified teacher who is
216     assigned to teach at a Title I school.
217          (2) (a) Subject to future budget constraints, the Legislature shall:
218          (i) annually appropriate money to maintain annual salary supplements provided in
219     previous years; and
220          (ii) provide salary supplements to new recipients.
221          (b) Money appropriated for salary supplements shall include money for the following
222     employer-paid benefits:
223          (i) retirement;
224          (ii) workers' compensation;
225          (iii) Social Security; and

226          (iv) Medicare.
227          (3) (a) The annual salary supplement for a board-certified teacher is $1,000.
228          (b) The annual salary supplement for a Title I school board-certified teacher is $2,000.
229          (c) A board-certified teacher who qualifies for a salary supplement under Subsections
230     (3)(a) and (b) may only receive the salary supplement that is greater in value.
231          (d) The employer paid benefits described in Subsection (2)(b) are in addition to an
232     amount described in this Subsection (3).
233          (4) The state board shall:
234          (a) create an online application system for a teacher to apply to receive a salary
235     supplement;
236          (b) establish a deadline by which a teacher is required to apply in order to receive a
237     salary supplement;
238          (c) determine whether a teacher who applies for a salary supplement is a
239     board-certified teacher or a Title I school board-certified teacher;
240          (d) verify, as needed, a determination made under Subsection (4)(c) with LEA or
241     school administrators; and
242          (e) certify a list of board-certified teachers and Title I school board-certified teachers.
243          (5) To receive a salary supplement, a board-certified teacher or a Title I school
244     board-certified teacher shall apply to the state board before the deadline described in
245     Subsection (4)(b).
246          (6) The state board shall establish and administer an appeal process for a teacher who
247     applies for but does not receive a salary supplement that allows the teacher to appeal eligibility
248     by providing evidence to the state board:
249          (a) of the teacher's National Board certification; or
250          (b) (i) of the teacher's National Board certification; and
251          (ii) that the teacher is assigned to teach in a Title I school.
252          (7) The state board shall:
253          (a) distribute money appropriated for salary supplements to LEAs in accordance with

254     the provisions of this section; and
255          (b) include the cost of employer-paid benefits described in Subsection (2)(b) in the
256     amount distributed to an LEA for each salary supplement.
257          (8) (a) An LEA shall use money received under this section to provide a salary
258     supplement to each board-certified teacher and Title I school board-certified teacher in an
259     amount equal to the amount described in Subsection (3).
260          (b) A salary supplement is part of a teacher's base pay, subject to the teacher's
261     qualification as a board-certified teacher or Title I school board-certified teacher every year,
262     semester, or trimester.
263          (9) Notwithstanding the provisions of this section, if an annual appropriation for salary
264     supplements is not sufficient to cover the costs associated with salary supplements, the state
265     board shall distribute the funds on a pro rata basis.
266          Section 5. Section 53G-6-502 is amended to read:
267          53G-6-502. Eligible students.
268          (1) As used in this section:
269          (a) "At capacity" means operating above the school's open enrollment threshold.
270          (b) "COVID-19 emergency" means the spread of COVID-19 that the World Health
271     Organization declared a pandemic on March 11, 2020.
272          [(b)] (c) "Open enrollment threshold" means the same as that term is defined in Section
273     53G-6-401.
274          [(c)] (d) "Refugee" means a person who is eligible to receive benefits and services
275     from the federal Office of Refugee Resettlement.
276          [(d)] (e) "School of residence" means the same as that term is defined in Section
277     53G-6-401.
278          (2) All resident students of the state qualify for admission to a charter school, subject
279     to the limitations set forth in this section and Section 53G-6-503.
280          (3) (a) A charter school shall enroll an eligible student who submits a timely
281     application, unless the number of applications exceeds the capacity of a program, class, grade

282     level, or the charter school.
283          (b) If the number of applications exceeds the capacity of a program, class, grade level,
284     or the charter school, the charter school shall select students on a random basis, except as
285     provided in Subsections (4) through (8).
286          (4) A charter school may give an enrollment preference to:
287          (a) a child or grandchild of an individual who has actively participated in the
288     development of the charter school;
289          (b) a child or grandchild of a member of the charter school governing board;
290          (c) a sibling of an individual who was previously or is presently enrolled in the charter
291     school;
292          (d) a child of an employee of the charter school;
293          (e) a student articulating between charter schools offering similar programs that are
294     governed by the same charter school governing board;
295          (f) a student articulating from one charter school to another pursuant to an articulation
296     agreement between the charter schools that is approved by the State Charter School Board;
297          (g) a student who resides within up to a two-mile radius of the charter school and
298     whose school of residence is at capacity; [or]
299          (h) a child of a military servicemember as defined in Section 53B-8-102[.]; or
300          (i) for the 2021-2022 school year, a student who withdraws from the charter school to
301     attend an online school or home school for the 2020-2021 school year due to the COVID-19
302     emergency.
303          (5) (a) Except as provided in Subsection (5)(b), and notwithstanding Subsection (4)(g),
304     a charter school that is approved by the state board after May 13, 2014, and is located in a high
305     growth area as defined in Section 53G-6-504 shall give an enrollment preference to a student
306     who resides within a two-mile radius of the charter school.
307          (b) The requirement to give an enrollment preference under Subsection (5)(a) does not
308     apply to a charter school that was approved without a high priority status pursuant to
309     Subsection 53G-6-504(7)(b).

310          (6) If a district school converts to charter status, the charter school shall give an
311     enrollment preference to students who would have otherwise attended it as a district school.
312          (7) (a) A charter school whose mission is to enhance learning opportunities for
313     refugees or children of refugee families may give an enrollment preference to refugees or
314     children of refugee families.
315          (b) A charter school whose mission is to enhance learning opportunities for English
316     language learners may give an enrollment preference to English language learners.
317          (8) A charter school may weight the charter school's lottery to give a slightly better
318     chance of admission to educationally disadvantaged students, including:
319          (a) low-income students;
320          (b) students with disabilities;
321          (c) English language learners;
322          (d) migrant students;
323          (e) neglected or delinquent students; and
324          (f) homeless students.
325          (9) A charter school may not discriminate in the charter school's admission policies or
326     practices on the same basis as other public schools may not discriminate in admission policies
327     and practices.
328          Section 6. Section 53G-6-504 is amended to read:
329          53G-6-504. Approval of increase in charter school enrollment capacity --
330     Expansion.
331          (1) For the purposes of this section:
332          (a) "High growth area" means an area of the state where school enrollment is
333     significantly increasing or projected to significantly increase.
334          (b) "Next school year" means the school year that begins on or after the July 1
335     immediately following the end of a general session of the Legislature.
336          (2) The state board may approve an increase in charter school enrollment capacity
337     subject to the Legislature:

338          (a) appropriating funds for an increase in charter school enrollment capacity in the next
339     school year; or
340          (b) authorizing an increase in charter school enrollment capacity in the school year
341     immediately following the next school year.
342          (3) In appropriating funds for, or authorizing, an increase in charter school enrollment
343     capacity, the Legislature shall provide a separate appropriation or authorization of enrollment
344     capacity for a charter school proposed and approved in response to a request for applications
345     issued under Section 53G-5-301.
346          (4) (a) A charter school may annually submit a request to the state board for an increase
347     in enrollment capacity in the amount of .25 times the number of students in grades 9 through
348     12 enrolled in an online course in the previous school year through the Statewide Online
349     Education Program.
350          (b) A charter school shall submit a request for an increase in enrollment capacity
351     pursuant to Subsection (4)(a) on or before October 1 of the school year for which the increase
352     in enrollment capacity is requested.
353          (c) The state board shall approve a request for an increase in enrollment capacity made
354     under Subsection (4)(a) subject to the availability of sufficient funds appropriated under Title
355     53F, Chapter 2, Part 7, Charter School Funding, to provide the full amount of the per student
356     allocation for each charter school student in the state to supplement school district property tax
357     revenues.
358          (d) An increase in enrollment capacity approved under Subsection (4)(c) shall be a
359     permanent increase in the charter school's enrollment capacity.
360          (e) For the 2021-2022 school year, the previous school year described in Subsection
361     (4)(a) is the 2019-2020 school year.
362          (5) (a) On or before January 1, 2017, the state board shall, in accordance with Title
363     63G, Chapter 3, Utah Administrative Rulemaking Act, and after considering suggestions from
364     charter school authorizers, make rules establishing requirements, procedures, and deadlines for
365     an expansion of a charter school.

366          (b) The rules described in Subsection (5)(a) shall include rules related to:
367          (i) an expansion of a charter school when another charter school issues a notice of
368     closure; and
369          (ii) the establishment of a satellite campus.
370          (6) (a) If the Legislature does not appropriate funds for an increase in charter school
371     enrollment capacity that is tentatively approved by the state board, the state board shall
372     prioritize the tentatively approved schools and expansions based on approved funds.
373          (b) A charter school or expansion that is tentatively approved, but not funded, shall be
374     considered to be tentatively approved for the next application year and receive priority status
375     for available funding.
376          (7) (a) Except as provided in Subsection (6)(b) or (7)(b), in approving an increase in
377     charter school enrollment capacity for new charter schools and expanding charter schools, the
378     state board shall give:
379          (i) high priority to approving a new charter school or a charter school expansion in a
380     high growth area; and
381          (ii) low priority to approving a new charter school or a charter school expansion in an
382     area where student enrollment is stable or declining.
383          (b) An applicant seeking to establish a charter school in a high growth area may elect
384     to not receive high priority status as provided in Subsection (7)(a)(i).
385          (8) For fiscal year 2021, in addition to an appropriation described in Subsection
386     53F-2-704(2)(a), for the guarantee described in Section 53F-2-704, the state board may use up
387     to $8,000,000 from the following sources in priority order:
388          (a) funds from the federal Elementary and Secondary School Emergency Relief Fund
389     described in the Coronavirus Aid, Relief, and Economic Security Act, Pub. L. 116-136; and
390          (b) notwithstanding anything to the contrary in Subsection 53F-2-205(3)(b), nonlapsing
391     Minimum School Program funds.
392          Section 7. Appropriation.
393          The following sums of money are appropriated for the fiscal year beginning July 1,

394     2020, and ending June 30, 2021. These are additions to amounts previously appropriated for
395     fiscal year 2021. Under the terms and conditions of Title 63J, Chapter 1, Budgetary Procedures
396     Act, the Legislature appropriates the following sums of money from the funds or accounts
397     indicated for the use and support of the government of the state of Utah.
398     ITEM 1
399          To State Board of Education - Minimum School Program - Related to Basic School
400     Programs
401               From Education Fund

402               Schedule of Programs:
403                    National Board-Certified Teacher Program          $246,300
404     ITEM 2
405          To State Board of Education - Minimum School Program - Related to Basic School
406     Programs
407               From Education Fund, One-time

408               Schedule of Programs:
409                    English Language Learner Software Support     $3,000,000
410          The Legislature intends that:
411          (1) the State Board of Education allocate the appropriation under this section to a local
412     education agency in proportion to the local education agency's share of statewide English
413     language learner students; and
414          (2) a local education agency select a vendor and use an allocation of money allocated
415     under Subsection (1) to pay for software licenses for software used for English language
416     learner student instruction.
417          Section 8. Effective date.
418          If approved by two-thirds of all the members elected to each house, this bill takes effect
419     upon approval by the governor, or the day following the constitutional time limit of Utah
420     Constitution, Article VII, Section 8, without the governor's signature, or in the case of a veto,
421     the date of veto override.