Rep. Norm Thurston — Voting Record

Bill

Number

H.B. 193 First Substitute (2016GS)

Sponsor

Rep. Powell, K.

Final action

House/ filed 3/10/2016

Outcome

Failed / filed without passage

Summary

What it does

• This bill:
• repeals provisions that require a school district to allocate a certain portion of school district tax revenues for charter schools;
• defines terms;
• creates a property tax for charter school funding;
• provides for the distribution of revenues from the property tax for charter school funding;
• establishes the Charter School Tax Account; and
• makes technical changes.

Every vote on this bill

Bill text

CHARTER SCHOOL PROPERTY TAX AMENDMENTS
GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Kraig Powell
Senate Sponsor: 
____________
LONG TITLE
General Description:
This bill establishes a property tax for charter school funding.
Highlighted Provisions:
This bill:
▸ repeals provisions that require a school district to allocate a certain portion of school
district tax revenues for charter schools;
▸ defines terms;
▸ creates a property tax for charter school funding;
▸ provides for the distribution of revenues from the property tax for charter school
funding;
▸ establishes the Charter School Tax Account; and
▸ makes technical changes.
Money Appropriated in this Bill:
None
Other Special Clauses:
None
Utah Code Sections Affected:
AMENDS:
53A-1a-513
, as last amended by Laws of Utah 2015, Chapters 64 and 380
ENACTS:
53A-1a-513.1
, Utah Code Annotated 1953
53A-1a-513.2
, Utah Code Annotated 1953
Be it enacted by the Legislature of the state of Utah:
Section 1. Section 
53A-1a-513
 is amended to read:
53A-1a-513.
Funding for charter schools.
(1) As used in this section:
(a) "Charter school students' average local revenues" means the amount determined as
follows:
(i) for each student enrolled in a charter school on the previous October 1, calculate the
district per pupil local revenues of the school district in which the student resides;
(ii) sum the district per pupil local revenues for each student enrolled in a charter
school on the previous October 1; and
(iii) divide the sum calculated under Subsection (1)(a)(ii) by the number of students
enrolled in charter schools on the previous October 1.
(b) "Charter school tax per pupil revenues" means the same as that term is defined in
Section 
53A-1a-513.1
.
[
(b)
] 
(c)
 "District local property tax revenues" means the sum of a school district's
revenue received from the following levies:
(i) a voted local levy imposed under Section 
53A-17a-133
;
(ii) a board local levy imposed under Section 
53A-17a-164
, excluding revenues
expended for:
(A) recreational facilities and activities authorized under Title 11, Chapter 2,
Playgrounds;
(B) pupil transportation, up to the amount of revenue generated by a .0003 per dollar of
taxable value of the school district's board local levy; and
(C) the K-3 Reading Improvement Program, up to the amount of revenue generated by
a .000121 per dollar of taxable value of the school district's board local levy; and
(iii) a capital local levy imposed under Section 
53A-16-113
.
[
(c)
] 
(d)
 "District per pupil local revenues" means an amount equal to the following,
using data from the most recently published school district annual financial reports and state
superintendent's annual report:
(i) district local property tax revenues; divided by
(ii) the sum of:
(A) a school district's average daily membership; and
(B) the average daily membership of a school district's resident students who attend
charter schools.
[
(d)
] 
(e)
 "Resident student" means a student who is considered a resident of the school
district under Title 53A, Chapter 2, Part 2, District of Residency.
[
(e)
] 
(f)
 "Statewide average debt service revenues" means the amount determined as
follows, using data from the most recently published state superintendent's annual report:
(i) sum the revenues of each school district from the debt service levy imposed under
Section 
11-14-310
; and
(ii) divide the sum calculated under Subsection (1)[
(e)
]
(f)
(i) by statewide school
district average daily membership.
(2) (a) Charter schools shall receive funding as described in this section, except
Subsections (3) through (8) do not apply to charter schools described in Subsection (2)(b).
(b) Charter schools authorized by local school boards that are converted from district
schools or operate in district facilities without paying reasonable rent shall receive funding as
prescribed in Section 
53A-1a-515
.
(3) (a) Except as provided in Subsections (3)(b) and (3)(c), a charter school shall
receive state funds, as applicable, on the same basis as a school district receives funds.
(b) For the 2015-16 school year, the number of weighted pupil units assigned to a
charter school for the kindergarten and grades 1 through 12 programs of the Basic School
Program shall be:
(i) based on the higher of:
(A) October 1 enrollment in the current school year; or
(B) average daily membership in the prior school year plus growth as determined under
Section 
53A-17a-106
; and
(ii) weighted as provided in Subsection (3)(c).
(c) In distributing funds under Chapter 17a, Minimum School Program Act, to charter
schools, charter school pupils shall be weighted, where applicable, as follows:
(i) .55 for kindergarten pupils;
(ii) .9 for pupils in grades 1 through 6;
(iii) .99 for pupils in grades 7 through 8; and
(iv) 1.2 for pupils in grades 9 through 12.
[
(4) (a) (i) A school district shall allocate a portion of school district revenues for each
resident student of the school district who is enrolled in a charter school on October 1 equal to
25% of the district per pupil local revenues.
]
[
(ii) Nothing in this Subsection (4)(a) affects the school bond guarantee program
established under Chapter 28, Utah School Bond Guaranty Act.
]
[
(b) The State Board of Education shall:
]
[
(i) deduct an amount equal to the allocation provided under Subsection (4)(a) from
state funds the school district is authorized to receive under Chapter 17a, Minimum School
Program Act; and
]
[
(ii) remit the money to the student's charter school.
]
[
(c) Notwithstanding the method used to transfer school district revenues to charter
schools as provided in Subsection (4)(b), a school district may deduct the allocations to charter
schools under this section from:
]
[
(i) unrestricted revenues available to the school district; or
]
[
(ii) the revenue sources listed in Subsection (1)(b) based on the portion of the
allocations to charter schools attributed to each of the revenue sources listed in Subsection
(1)(b).
]
(4) (a) As described in Section 
53A-1a-513.1
, the State Board of Education shall
distribute charter school tax per pupil revenues to charter schools.
[
(d)
] 
(b)
 (i) Subject to future budget constraints, the Legislature shall provide an
appropriation for charter schools for each 
charter school
 student enrolled on October 1
,
 to
supplement the allocation of [
school district revenues under
] 
charter school tax per pupil
revenues described in
 Subsection (4)(a).
(ii) Except as provided in Subsection (4)[
(d)
]
(b)
(iii), the amount of money provided by
the state for a charter school student shall be the sum of:
(A) charter school students' average local revenues minus the [
allocation of school
district revenues under Subsection (4)(a);
] 
charter school tax per pupil revenues;
 and
(B) statewide average debt service revenues.
(iii) If the total of [
a school district's allocation for a charter school student under
Subsection (4)(a)
] 
charter school tax per pupil revenues
 and the amount provided by the state
under Subsection (4)[
(d)
]
(b)
(ii) is less than $1427, the state shall provide an additional
supplement so that a charter school receives at least $1427 per student under this Subsection
(4).
(iv) (A) If the appropriation provided under this Subsection (4)[
(d)
]
(b)
 is less than the
amount prescribed by Subsection (4)[
(d)
]
(b)
(ii) or (4)[
(d)
]
(b)
(iii), the appropriation shall be
allocated among charter schools in proportion to each charter school's enrollment as a
percentage of the total enrollment in charter schools.
(B) If the State Board of Education makes adjustments to Minimum School Program
allocations as provided under Section 
53A-17a-105
, the allocation provided in Subsection
(4)[
(d)
]
(b)
(iv)(A) shall be determined after adjustments are made under Section 
53A-17a-105
.
[
(e)
] 
(c)
 Of the money provided to a charter school under this Subsection (4), 10% shall
be expended for funding school facilities only.
(5) Charter schools are eligible to receive federal funds if they meet all applicable
federal requirements and comply with relevant federal regulations.
(6) The State Board of Education shall distribute funds for charter school students
directly to the charter school.
(7) (a) Notwithstanding Subsection (3), a charter school is not eligible to receive state
transportation funding.
(b) The board shall also adopt rules relating to the transportation of students to and
from charter schools, taking into account Sections 
53A-2-210
 and 
53A-17a-127
.
(c) The governing [
body
] 
board
 of the charter school may provide transportation
through an agreement or contract with the local school board, a private provider, or with
parents.
(8) (a) (i) In accordance with Section 
53A-1a-513.5
, the State Charter School Board
may allocate grants for start-up costs to charter schools from money appropriated for charter
school start-up costs.
(ii) The governing board of a charter school that receives money from a grant under
Section 
53A-1a-513.5
 shall use the grant for expenses for planning and implementation of the
charter school.
(b) The State Board of Education shall coordinate the distribution of federal money
appropriated to help fund costs for establishing and maintaining charter schools within the
state.
(9) (a) A charter school may receive, hold, manage and use any devise, bequest, grant,
endowment, gift, or donation of any property made to the school for any of the purposes of this
part.
(b) It is unlawful for any person affiliated with a charter school to demand or request
any gift, donation, or contribution from a parent, teacher, employee, or other person affiliated
with the charter school as a condition for employment or enrollment at the school or continued
attendance at the school.
Section 2. Section 
53A-1a-513.1
 is enacted to read:
 53A-1a-513.1.
Charter school tax.
(1) As used in this section:
(a) "Board" means the State Board of Education.
(b) "Charter School Tax Account" means the Charter School Tax Account created in
Section 
53A-1a-513.2
.
(c) "Charter school tax per district revenues" means the product of:
(i) a school district's district per pupil local revenues; and
(ii) the number of charter school students in the school district who are resident
students.
(d) "Charter school tax per pupil revenues" means an amount equal to the following:
(i) charter school tax total local revenues for a given fiscal year, adjusted if necessary
as described in Subsection (4); divided by
(ii) the number of students enrolled in a charter school on October 1 of the prior school
year.
(e) "Charter school tax revenues" means the charter school tax revenues generated by a
charter school tax rate described in Subsection (2)(b)(i).
(f) "Charter school tax total local revenues" means the sum of charter school tax per
district revenues for every school district in the state for the same given fiscal year.
(g) "District per pupil local revenues" means the same as that term is defined in Section
53A-1a-513
.
(h) "Resident student" means the same as that term is defined in Section 
53A-1a-513
.
(2) (a) Beginning with the taxable year beginning on January 1, 2017, the state shall
annually impose a charter school tax as described in this Subsection (2).
(b) (i) For each school district, on or before June 22, the State Tax Commission shall
certify a rate for the charter school tax described in Subsection (2)(a) to generate an amount of
revenue within a school district equal to 25% of the charter school tax per district revenues.
(ii) To calculate a charter school tax rate for a school district, the State Tax
Commission shall use the calculation method described in Subsection 
59-2-924
(3)(c)(ii).
(3) (a) A county treasurer shall collect the charter school tax revenues for all school
districts located within the county treasurer's county and remit the money monthly to the state
treasurer.
(b) The state treasurer shall deposit the charter school tax revenues received from a
county treasurer in the Charter School Tax Account.
(4) (a) For each charter school student, the board shall distribute the charter school per
pupil tax revenues from the charter school tax account to the student's charter school in
accordance with this Subsection (4).
(b) For a given fiscal year, if the actual charter school tax total local revenues are more
than the estimated charter school tax total local revenues the board shall:
(i) deduct the amount of revenue that exceeds the estimated charter school tax total
local revenues from the actual charter school tax total local revenues; and
(ii) use the difference to calculate the charter school per pupil tax revenues.
(c) For a given fiscal year, if the actual charter school total local revenues are less than
the estimated charter school tax total local revenues, the board shall:
(i) if sufficient funds are available in the Charter School Tax Account, add an amount
of funds from the Charter School Tax Account to the charter school tax total local revenues to
equal the estimated charter school tax total local revenues; and
(ii) if sufficient funds are not available in the Charter School Tax Account, calculate
the charter school per pupil tax revenues using the actual amount of the charter school tax total
local revenues.
Section 3. Section 
53A-1a-513.2
 is enacted to read:
 53A-1a-513.2.
Charter School Tax Account.
(1) As used in this section, "account" means the Charter School Tax Account created in
this section.
(2) There is created within the Education Fund a restricted account known as the
"Charter School Tax Account."
(3) The account shall be funded by amounts deposited into the account in accordance
with Section 
53A-1a-513.1
.
(4) Upon appropriation from the Legislature, the State Board of Education shall
distribute funds from the account as described in Section 
53A-1a-513.1
.
(5) The account shall earn interest.
(6) Interest earned on the account shall be deposited into the account.
(7) Funds in the account are nonlapsing.
Legislative Review Note
Office of Legislative Research and General Counsel