Rep. Norm Thurston — Voting Record

Bill

Number

S.B. 239 (2016GS)

Sponsor

Sen. Stephenson, H.

Final action

Governor Signed 3/28/2016

Outcome

Became law — signed by Gov. Gary R. Herbert

Summary

What it does

• This bill:
• requires a charter school authorizer to make certain reports regarding the school improvement process;
• enacts language related to a school district or charter school budget and budget procedures;
• amends provisions authorizing a governing board to make an appropriation;
• amends provisions governing a warrant drawn by a school budget officer;
• amends provisions related to monthly budget reports; and
• makes technical and conforming amendments.

Every vote on this bill

Bill text

SCHOOL GOVERNANCE AMENDMENTS
GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Howard A. Stephenson
House Sponsor: 
Steve Eliason
LONG TITLE
General Description:
This bill amends provisions related to the governance of school districts and charter
schools.
Highlighted Provisions:
This bill:
▸ requires a charter school authorizer to make certain reports regarding the school
improvement process;
▸ enacts language related to a school district or charter school budget and budget
procedures;
▸ amends provisions authorizing a governing board to make an appropriation;
▸ amends provisions governing a warrant drawn by a school budget officer;
▸ amends provisions related to monthly budget reports; and
▸ makes technical and conforming amendments.
Money Appropriated in this Bill:
None
Other Special Clauses:
None
Utah Code Sections Affected:
AMENDS:
53A-1a-509.5
, as enacted by Laws of Utah 2015, Chapter 299
53A-1a-511
, as last amended by Laws of Utah 2015, Chapters 138, 150, and 232
53A-19-101
, as enacted by Laws of Utah 1988, Chapter 2
53A-19-102
, as last amended by Laws of Utah 2010, Chapters 84, 135, and 160
53A-19-104
, as last amended by Laws of Utah 2009, Chapter 388
53A-19-106
, as enacted by Laws of Utah 1988, Chapter 2
53A-19-108
, as enacted by Laws of Utah 1988, Chapter 2
Be it enacted by the Legislature of the state of Utah:
Section 1. Section 
53A-1a-509.5
 is amended to read:
53A-1a-509.5.
Voluntary school improvement process.
(1) As used in this section, "high performing charter school" means a charter school
that:
(a) satisfies all requirements of state law and State Board of Education rules;
(b) has operated for at least three years meeting the terms of the school's charter
agreement; and
(c) has students performing at or above the academic performance standard in the
school's charter agreement.
(2) (a) Subject to Subsection (2)(b), a governing board may voluntarily request the
charter school's authorizer to place the school in a school improvement process.
(b) A governing board shall provide notice and a hearing on the governing board's
intent to make a request under Subsection (2)(a) to parents and guardians of students enrolled
in the charter school.
(3) An authorizer may grant a governing board's request to be placed in a school
improvement process if the governing board has provided notice and a hearing under
Subsection (2)(b).
(4) An authorizer that has entered into a school improvement process with a governing
board shall:
(a) enter into a contract with the governing board on the terms of the school
improvement process;
(b) notify the State Board of Education that the authorizer has entered into a school
improvement process with the governing board; [
and
]
(c) make a report to a committee of the State Board of Education regarding the school
improvement process; and
[
(c)
] 
(d)
 notify the Utah Charter School Finance Authority that the authorizer has
entered into a school improvement process with the governing board if the charter school is a
qualifying charter school with outstanding bonds issued in accordance with Chapter 20b, Part
2, Charter School Credit Enhancement Program.
(5) Upon notification under Subsection (4)(b), 
and after the report described in
Subsection (4)(c),
 the State Board of Education shall notify charter schools and the school
district in which the charter school is located that the governing board has entered into a school
improvement process with the charter school's authorizer.
(6) A high performing charter school or the school district in which the charter school
is located may apply to the governing board to assume operation and control of the charter
school that has been placed in a school improvement process.
(7) A governing board that has entered into a school improvement process shall review
applications submitted under Subsection (6) and submit a proposal to the charter school's
authorizer to:
(a) terminate the school's charter, notwithstanding the requirements of Section
53A-1a-510
; and
(b) transfer operation and control of the charter school to:
(i) the school district in which the charter school is located; or
(ii) a high performing charter school.
(8) Except as provided in Subsection (9) and subject to Subsection (10), an authorizer
may:
(a) approve a governing board's proposal under Subsection (7); or
(b) (i) deny a governing board's proposal under Subsection (7); and
(ii) (A) terminate the school's charter in accordance with Section 
53A-1a-510
;
(B) allow the governing board to submit a revised proposal; or
(C) take no action.
(9) An authorizer may not take an action under Subsection (8) for a qualifying charter
school with outstanding bonds issued in accordance with Chapter 20b, Part 2, Charter School
Credit Enhancement Program
,
 without mutual agreement of the Utah Charter School Finance
Authority and the authorizer.
(10) (a) An authorizer that intends to transfer operation and control of a charter school
as described in Subsection (7)(b) shall request approval from the State Board of Education.
(b) (i) The State Board of Education shall consider an authorizer's request under
Subsection (10)(a) within 30 days of receiving the request.
(ii) If the State Board of Education denies an authorizer's request under Subsection
(10)(a), the authorizer may not transfer operation and control of the charter school as described
in Subsection (7)(b).
(iii) If the State Board of Education does not take action on an authorizer's request
under Subsection (10)(a) within 30 days of receiving the request, an authorizer may proceed to
transfer operation and control of the charter school as described in Subsection (7)(b).
Section 2. Section 
53A-1a-511
 is amended to read:
53A-1a-511.
Waivers from state board rules -- Application of statutes and rules
to charter schools.
(1) A charter school shall operate in accordance with its charter and is subject to Title
53A, State System of Public Education, and other state laws applicable to public schools,
except as otherwise provided in this part.
(2) (a) A charter school or any other public school or school district may apply to the
State Board of Education for a waiver of any state board rule that inhibits or hinders the school
or the school district from accomplishing its mission or educational goals set out in its strategic
plan or charter.
(b) The state board may grant the waiver, unless:
(i) the waiver would cause the school district or the school to be in violation of state or
federal law; or
(ii) the waiver would threaten the health, safety, or welfare of students in the district or
at the school.
(c) If the State Board of Education denies the waiver, the reason for the denial shall be
provided in writing to the waiver applicant.
(3) (a) Except as provided in Subsection (3)(b), State Board of Education rules
governing the following do not apply to a charter school:
(i) school libraries;
(ii) required school administrative and supervisory services; and
(iii) required expenditures for instructional supplies.
(b) A charter school shall comply with rules implementing statutes that prescribe how
state appropriations may be spent.
(4) The following provisions of Title 53A, State System of Public Education, and rules
adopted under those provisions, do not apply to a charter school:
(a) Sections 
53A-1a-108
 and 
53A-1a-108.5
, requiring the establishment of a school
community council and school improvement plan;
(b) Section 
53A-3-420
, requiring the use of activity disclosure statements;
(c) Section 
53A-12-207
, requiring notification of intent to dispose of textbooks;
(d) Section 
53A-13-107
, requiring annual presentations on adoption;
(e) [
Chapter 19, Part 1, Fiscal Procedures,
] 
Sections 
53A-19-103
 and 
53A-19-105
pertaining to fiscal procedures of school districts and local school boards; and
(f) Section 
53A-14-107
, requiring an independent evaluation of instructional materials.
(5) For the purposes of Title 63G, Chapter 6a, Utah Procurement Code, a charter
school is considered an educational procurement unit as defined in Subsection 
63G-6a-104
(7).
(6) Each charter school shall be subject to:
(a) Title 52, Chapter 4, Open and Public Meetings Act; and
(b) Title 63G, Chapter 2, Government Records Access and Management Act.
(7) A charter school is exempt from Section 
51-2a-201.5
, requiring accounting reports
of certain nonprofit corporations. A charter school is subject to the requirements of Section
53A-1a-507
.
(8) (a) The State Charter School Board shall, in concert with the charter schools, study
existing state law and administrative rules for the purpose of determining from which laws and
rules charter schools should be exempt.
(b) (i) The State Charter School Board shall present recommendations for exemption to
the State Board of Education for consideration.
(ii) The State Board of Education shall consider the recommendations of the State
Charter School Board and respond within 60 days.
Section 3. Section 
53A-19-101
 is amended to read:
53A-19-101.
School district and charter school budgets.
[
(1) The superintendent of each school district is the budget officer of the district.
]
(1) As used in this section:
(a) "Budget officer" means:
(i) for a school district, the school district's superintendent; or
(ii) for a charter school, an individual selected by the charter school governing board.
(b) "Governing board" means:
(i) for a school district, the local school board; or
(ii) for a charter school, the charter school governing board.
(2) [
Prior to
] 
Before
 June 1 of each year, the [
superintendent
] 
budget officer
 shall
prepare [
and file with the local school board
] a tentative budget[
.
]
, with supporting
documentation, to be submitted to the budget officer's governing board.
(3)
 The tentative budget and supporting documents shall include the following items:
(a) the revenues and expenditures of the preceding fiscal year;
(b) the estimated revenues and expenditures of the current fiscal year;
(c) 
for a school district,
 an estimate of the revenues for the succeeding fiscal year based
upon the lowest tax levy that will raise the required revenue, using the current year's taxable
value as the basis for this calculation;
(d) a detailed estimate of the essential expenditures for all purposes for the next
succeeding fiscal year; and
(e) the estimated financial condition of the 
school
 district 
or charter school
 by funds at
the close of the current fiscal year.
[
(3)
] 
(4)
 The tentative budget shall be filed with the district business administrator 
or
charter school executive director
 for public inspection at least 15 days [
prior to
] 
before
 the date
of [
its
] 
the tentative budget's
 proposed adoption by the [
local school
] 
governing
 board.
Section 4. Section 
53A-19-102
 is amended to read:
53A-19-102.
Local governing board budget procedures.
(1) As used in this section:
(a) "Budget officer" means:
(i) for a school district, the school district's superintendent; or
(ii) for a charter school, an individual selected by the charter school governing board.
(b) "Governing board" means:
(i) for a school district, the local school board; or
(ii) for a charter school, the charter school governing board.
[
(1)
] 
(2)
 (a) [
Prior to
] 
For a school district, before
 June 22 of each year, a local school
board shall adopt a budget and make appropriations for the next fiscal year.
(b) [
If
] 
For a school district, if
 the tax rate in the 
school district's
 proposed budget
exceeds the certified tax rate defined in Section 
59-2-924
, the local school board shall comply
with Section 
59-2-919
 in adopting the budget, except as provided by Section 
53A-17a-133
.
[
(2)
] 
(3)
 (a) [
Prior to
] 
For a school district, before
 the adoption or amendment of a
budget, a local school board shall hold a public hearing, as defined in Section 
10-9a-103
, on
the proposed budget or budget amendment.
(b) In addition to complying with Title 52, Chapter 4, Open and Public Meetings Act,
in regards to the public hearing described in Subsection [
(2)
] 
(3)
(a), at least 10 days prior to the
public hearing, a local school board shall:
(i) publish a notice of the public hearing in a newspaper or combination of newspapers
of general circulation in the school district, except as provided in Section 
45-1-101
;
(ii) publish a notice of the public hearing electronically in accordance with Section
45-1-101
;
(iii) file a copy of the proposed budget with the local school board's business
administrator for public inspection; and
(iv) post the proposed budget on the school district's Internet website.
(c) A notice of a public hearing on a school district's proposed budget shall include
information on how the public may access the proposed budget as provided in Subsections
[
(2)
] 
(3)
(b)(iii) and [
(2)(b)
] (iv).
(4) For a charter school, before June 22 of each year, a charter school governing board
shall adopt a budget for the next fiscal year.
[
(3)
 A local school
] 
(5) Within 30 days of adopting a budget, a governing
 board shall
file a copy of the adopted budget with the state auditor and the State Board of Education.
Section 5. Section 
53A-19-104
 is amended to read:
53A-19-104.
Limits on appropriations -- Estimated expendable revenue.
(1) As used in this section:
(a) "Budget officer" means:
(i) for a school district, the school district's superintendent; or
(ii) for a charter school, an individual selected by the charter school governing board.
(b) "Governing board" means:
(i) for a school district, the local school board; or
(ii) for a charter school, the charter school governing board.
[
(1)
] 
(2)
 A [
local school
] 
governing
 board may not make [
any
] 
an
 appropriation in
excess of its estimated expendable revenue, including undistributed reserves, for the following
fiscal year.
(3) A governing board may reduce a budget appropriation at the governing board's
regular meeting if notice of the proposed action is given to all governing board members and to
the district superintendent or charter school executive director, as applicable, at least one week
before the meeting.
[
(2) In
] 
(4) For a school district, in
 determining the estimated expendable revenue, any
existing deficits arising through excessive expenditures from former years are deducted from
the estimated revenue for the ensuing year to the extent of at least 10% of the entire tax revenue
of the district for the previous year.
[
(3) In
] 
(5) For a school district, in
 the event of financial hardships, the 
local school
board may deduct from the estimated expendable revenue for the ensuing year, by fund, at least
25% of the deficit amount.
[
(4) All
] 
(6) For a school district, all
 estimated balances available for appropriations at
the end of the fiscal year shall revert to the funds from which they were appropriated and shall
be fund balances available for appropriation in the budget of the following year.
[
(5) A local school board may reduce a budget appropriation at its regular meeting if
notice of the proposed action is given to all board members and the district superintendent at
least one week prior to the meeting.
]
[
(6) An
] 
(7) For a school district, an
 increase in an appropriation may not be made by
the 
local school
 board unless the following steps are taken:
(a) the 
local school
 board receives a written request from the district superintendent
that sets forth the reasons for the proposed increase;
(b) notice of the request is published:
(i) in a newspaper of general circulation within the school district at least one week
[
prior to
] 
before
 the 
local school
 board meeting at which the request will be considered; and
(ii) in accordance with Section 
45-1-101
, at least one week [
prior to
] 
before
 the 
local
school
 board meeting at which the request will be considered; and
(c) the 
local school
 board holds a public hearing on the request [
prior to
] 
before
 the
local school
 board's acting on the request.
Section 6. Section 
53A-19-106
 is amended to read:
53A-19-106.
Warrants drawn by budget officer.
(1) As used in this section:
(a) "Budget officer" means:
(i) for a school district, the school district's superintendent; or
(ii) for a charter school, an individual selected by the charter school governing board.
(b) "Governing board" means:
(i) for a school district, the local school board; or
(ii) for a charter school, the charter school governing board.
(2)
 The [
business administrator
] 
budget officer
 of a [
local school
] 
governing
 board may
not draw warrants on school district 
or charter school
 funds except in accordance with and
within the limits of the budget passed by the [
local school
] 
governing
 board.
Section 7. Section 
53A-19-108
 is amended to read:
53A-19-108.
Monthly budget reports.
(1) As used in this section:
(a) "Budget officer" means:
(i) for a school district, the school district's superintendent; or
(ii) for a charter school, an individual selected by the charter school governing board.
(b) "Governing board" means:
(i) for a school district, the local school board; or
(ii) for a charter school, the charter school governing board.
[
(1)
] 
(2)
 The business administrator 
or budget officer
 of [
each local school
] 
a
governing
 board shall provide each board member with a report, on a monthly basis, that
includes the following information:
(a) the amounts of all budget appropriations;
(b) the disbursements from the appropriations as of the date of the report; and
(c) the percentage of the disbursements as of the date of the report.
[
(2) A
] 
(3) Within five days of providing the monthly report described in Subsection
(2) to a governing board, the business administrator or budget officer shall make a
 copy of the
report [
shall be
] available for public review.