Rep. Norm Thurston — Voting Record

Bill

Number

H.B. 475 First Substitute (2022GS)

Sponsor

Rep. Last, B.

Final action

Governor Signed 3/24/2022

Outcome

Became law — signed by Gov. Spencer J. Cox

Summary

What it does

• This bill:
• defines terms;
• creates a capital projects fund known as the Small School District Capital Projects Fund (fund) to provide state funding for certain local capital development projects;
• requires the Executive Appropriations Committee, in preparing budget bills, to use one-time appropriations in the Public Education Economic Stabilization Restricted Account for:
• a general distribution to school districts and charter schools for local one-time funding priorities; and
• the Small School District Capital Projects Fund to a certain limit;
• establishes the Capital Projects Evaluation Panel (panel) under the State Board of Education (state board);
• provides the membership and duties of the panel;
• provides state funding for local capital development projects through grants and low-interest or no-interest loans;
• grants rulemaking authority to the state board regarding the capital development project proposal and approval process; and
• makes technical and conforming changes.

Every vote on this bill

Bill text

USE OF PUBLIC EDUCATION STABILIZATION ACCOUNT
ONE-TIME FUNDING
GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Bradley G. Last
Senate Sponsor: 
____________
LONG TITLE
General Description:
This bill provides for the use of certain recurring one-time funding from the Public
Education Economic Stabilization Restricted Account within the public education
system.
Highlighted Provisions:
This bill:
▸ defines terms;
▸ creates a capital projects fund known as the Small School District Capital Projects
Fund (fund) to provide state funding for certain local capital development projects;
▸ requires the Executive Appropriations Committee, in preparing budget bills, to use
one-time appropriations in the Public Education Economic Stabilization Restricted
Account for:
• a general distribution to school districts and charter schools for local one-time
funding priorities; and
• the Small School District Capital Projects Fund to a certain limit;
▸ establishes the Capital Projects Evaluation Panel (panel) under the State Board of
Education (state board);
▸ provides the membership and duties of the panel;
▸ provides state funding for local capital development projects through grants and
low-interest or no-interest loans;
▸ grants rulemaking authority to the state board regarding the capital development
project proposal and approval process; and
▸ makes technical and conforming changes.
Money Appropriated in this Bill:
This bill appropriates in fiscal year 2023:
▸ to State Board of Education - School Building Programs - Capital Outlay Programs,
as a one-time appropriation:
• from the Uniform School Fund Restricted - Public Education Economic
Stabilization Restricted Account, One-time, $50,000,000;
▸ to Department of Administrative Services - Finance Mandated - Utah Schools for
the Deaf and the Blind Capital Facilities, as a one-time appropriation:
• from Uniform School Fund Restricted - Public Education Economic
Stabilization Restricted Account, One-time, $30,000,000; and
▸ to State Board of Education - Minimum School Program - Related to Basic School
Program, as a one-time appropriation:
• from Uniform School Fund Restricted - Public Education Economic
Stabilization Restricted Account, One-time, $128,100,000.
Other Special Clauses:
This bill provides a special effective date.
This bill provides revisor instructions.
Utah Code Sections Affected:
ENACTS:
53F-7-202
, Utah Code Annotated 1953
53F-9-601
, Utah Code Annotated 1953
53F-10-101
, Utah Code Annotated 1953
53F-10-102
, Utah Code Annotated 1953
53F-10-201
, Utah Code Annotated 1953
53F-10-202
, Utah Code Annotated 1953
53F-10-301
, Utah Code Annotated 1953
53F-10-302
, Utah Code Annotated 1953
Utah Code Sections Affected by Revisor Instructions:
53F-10-301
, Utah Code Annotated 1953
Be it enacted by the Legislature of the state of Utah:
Section 1. Section 
53F-7-202
 is enacted to read:
 53F-7-202.
Distribution of one-time funding for student and school support.
(1) Subject to legislative appropriations, the state board shall allocate one-time funding
appropriated for student and school support in accordance with this section by:
(a) for charter schools:
(i) distributing an amount that is equal to the product of:
(A) charter school enrollment on October 1 in the prior year, or projected enrollment
for a charter school in the charter school's first year of operations, divided by enrollment on
October 1 in public schools statewide in the prior year; and
(B) the total amount available for distribution; and
(ii) allocating to each charter school:
(A) an equally divided portion of 20% of the amount described in Subsection (1)(a)(i);
and
(B) 80% of the amount described in Subsection (1)(a)(i) on a per-student basis; and
(b) for school districts, distributing the remainder of funds available for distribution
after the distribution to charter schools under Subsection (1)(a) by allocating to each school
district:
(i) a base allocation relative to student enrollment as follows:
(A) for a school district with enrollment less than 1% of total state enrollment,
$500,000;
(B) for a school district with enrollment of between 1% and 5% of total state
enrollment, $350,000; and
(C) for a school district with enrollment greater than 5% of total state enrollment,
$200,000; and
(ii) after the base allocation described in Subsection (1)(b)(i), the remainder on a
per-student basis.
(2) (a) An LEA shall:
(i) use funds that the state board distributes under this section to support students and
schools through one-time priorities that the relevant local governing board approves, including
student safety, technology, instructional materials, and capital facility improvements; and
(ii) submit to the state board an accounting of the use of the LEA's use of the funds that
the state board distributes under this section.
(b) Subsection (2)(a) does not require state board authorization or approval of an LEA
expenditure.
Section 2. Section 
53F-9-601
 is enacted to read:
 53F-9-601.
Small School District Capital Projects Fund.
(1) As used in this section:
(a) "Capital development project" means the same as that term is defined in Section
63A-5b-401
.
(b) "Fund" means the Small School District Capital Projects Fund created in this
section.
(2) (a) There is created a capital projects fund known as the Small School District
Capital Projects Fund.
(b) Subject to legislative appropriations, and except as provided in Subsection (4),
money in the fund shall be used for a capital development project in accordance with this
section and Title 53F, Chapter 10, State Funding -- Capital Projects.
(c) The fund shall:
(i) be funded by:
(A) one-time appropriations; and
(B) repayment and interest on loans described in Section 
53F-10-303
; and
(ii) accrue interest, which shall be deposited into the fund.
(3) The state board shall authorize disbursements from the fund.
(4) The state board shall administer the fund in accordance with this section.
Section 3. Section 
53F-10-101
 is enacted to read:
CHAPTER 10. STATE FUNDING -- CAPITAL PROJECTS
Part 1. General Provisions
 53F-10-101.
Definitions.
As used in this section:
(1) "Capital development project" means the same as that term is defined in Section
63A-5b-401
, including new construction, capital expansion, and renovation.
(2) "Capital local levy" means the levy that a local school board imposes under Section
53F-8-303
.
(3) "Capital Projects Evaluation Panel" or "panel" means the panel established in
Section 
53F-10-201
.
(4) "Capital projects funding" means funds distributed from the Small School District
Capital Projects Fund.
(5) "Division" means the Division of Facilities Construction and Management.
(6) "Eligible school district" means a school district:
(a) in a county of the fourth, fifth, or sixth class; and
(b) that qualifies for state guarantee funding related to local levies under Section
53F-2-601
.
(7) "Small School District Capital Projects Fund" or "fund" means the capital projects
fund created in Section 
53F-9-601
.
Section 4. Section 
53F-10-102
 is enacted to read:
 53F-10-102.
Capital development project proposal process -- State board role.
(1) The state board shall make rules, in accordance with Title 63G, Chapter 3, Utah
Administrative Rulemaking Act, to establish a process for school districts to submit to the
panel proposals for funding for capital development projects under this chapter, including:
(a) the panel's review, prioritization, and recommendation to the state board;
(b) the state board's consideration and approval, if applicable, of proposed capital
development projects; and
(c) management of panel processes and administration.
(2) The state board may fund direct costs and administration of the panel, not to exceed
$200,000.
(3) The state board shall:
(a) evaluate recommendations of the panel regarding proposed capital development
projects;
(b) approve proposed capital development projects, subject to the availability of capital
development funding; and
(c) oversee the disbursement of capital development funding.
Section 5. Section 
53F-10-201
 is enacted to read:
Part 2. Capital Projects Evaluation Panel
 53F-10-201.
Capital Projects Evaluation Panel.
(1) There is created the Capital Projects Evaluation Panel to review, prioritize, and
approve proposals for state funding of capital projects under this chapter.
(2) The panel consists of the following members:
(a) the state superintendent of public instruction or the state superintendent's designee,
who serves as chair of the panel;
(b) the deputy superintendent for financial operations or the deputy superintendent's
designee;
(c) two individuals with expertise in school construction whom the state superintendent
appoints;
(d) two individuals with construction and construction financing experience, at least
one of whom being an employee of the division, whom the governor appoints; and
(e) the state treasurer or the state treasurer's designee, only in the case of panel action
regarding a loan under Section 
53F-10-302
.
(3) (a) (i) Except as provided under Subsection (3)(a)(ii), an appointed member of the
panel shall serve a term of two years.
(ii) Notwithstanding Subsection (3)(a)(i), a panel member's term ends on the day on
which the member's position allowing the member to serve on the panel under Subsection (2)
ends.
(b) The state superintendent and governor shall make the respective appointments:
(i) for the initial appointments, before July 1, 2022;
(ii) for subsequent terms, before July 1 of each even-numbered year, by:
(A) reappointing the panel member whose term expires under Subsection (3)(a)(i); or
(B) appointing a new panel member; and
(iii) in the case of a vacancy created under Subsection (3)(a)(ii), for the remainder of
the vacated term.
(c) The state superintendent and governor may change the relevant appointment
described in Subsection (2) at any time for the remainder of the existing term.
(4) A panel member:
(a) may not receive compensation or benefits for the member's service on the panel
other than a member who is an existing state employee receiving the employee's existing
compensation and benefits related to the employee's state employment; and
(b) may receive per diem and reimbursement for travel expenses that the member
incurs as a panel member at the rates that the Division of Finance establishes under:
(i) Sections 
63A-3-106
 and 
63A-3-107
; and
(ii) rules that the Division of Finance makes under Sections 
63A-3-106
 and 
63A-3-107
.
(5) (a) A majority of the panel members constitutes a quorum.
(b) The action of a majority of a quorum constitutes an action of the panel.
(6) (a) The state board shall provide staff support to the panel.
(b) The division shall provide technical expertise to the panel as requested by the
panel.
Section 6. Section 
53F-10-202
 is enacted to read:
 53F-10-202.
Panel duties.
(1) The panel shall:
(a) determine criteria for:
(i) the allowed uses of capital project fund resources described in Sections 
53F-10-301
and 
53F-10-302
 and the prioritization of proposed capital development projects, including the
extent to which a proposed project:
(A) eliminates risks to student life and safety through renewal or replacement;
(B) enhances efficiency of use, including combining necessarily existent small schools,
described in Section 
53F-2-304
;
(C) addresses essential program growth and capacity;
(D) provides a cost effective solution that is appropriate for the facility's need; and
(E) comports with the school district's provision of matching funds and sufficient
revenues for ongoing operation and maintenance;
(b) evaluate capital development project proposals to ensure viability, efficiency, and
adherence to education and construction standards;
(c) prioritize capital development projects;
(d) recommend that the state board distribute capital project funding to school districts;
(e) if necessary based on the circumstances of the capital development project, in
partnership with the division, oversee the capital development project; and
(f) report to the state board regarding the panel's actions.
(2) The panel may:
(a) determine that a technical assistance liaison is necessary for an eligible school
district applying for capital project funding under this chapter to efficiently complete the
project; and
(b) facilitate engagement with the division or a willing school district partner having
the required technical expertise in similar capital development projects.
Section 7. Section 
53F-10-301
 is enacted to read:
Part 3. Local Capital Development Project Funding
 53F-10-301.
Capital development project grants.
(1) (a) Except as provided in Subsection (1)(b), after reviewing an eligible school
district's ability to independently generate project funding, the panel may recommend to the
state board, and the state board may authorize a distribution of capital project funding in the
following amounts to an eligible school district for a capital development project that the panel
has prioritized:
(i) for an eligible school district with a capital local levy rate of at least 0.00105, up to
50% of the total cost of the capital development project as a 1:1 matching grant;
(ii) for an eligible school district with a capital local levy rate of at least 0.0015, up to
66.67% of the total cost of the capital development project as a 2:1 matching grant;
(iii) for an eligible school district with a capital local levy rate of at least 0.0018, up to
75% of the total cost of the capital development project as a 3:1 matching grant;
(iv) for an eligible school district with a capital local levy rate of at least 0.00225, up to
80% of the total cost of the capital development project as a 4:1 matching grant; and
(v) up to 100% of the total cost of the capital development project as a non-matching
grant for an eligible school district that:
(A) has incurred debt equal to 90% of the debt limit imposed by Utah Constitution,
Article XIV, Section 4; and
(B) unless the school district's capital local levy rate is at least 0.00225, increases the
school district's capital local levy by 10% after the effective date of this bill.
(b) Notwithstanding Subsection (1)(a), if increasing a capital local levy to a threshold
described in Subsection (1)(a) would result in a per-household property tax that, based on
county property tax data in the State Tax Commission's annual report, is higher than 125% of
the statewide average of property tax as a percentage of household income, based on census
household income data, the threshold necessary to qualify for the relevant level of grant
funding shall be the capital local levy rate that would result in an overall per-household
property tax that is equal to 125% of the statewide average of property tax as a percentage of
household income.
(2) The panel shall determine the terms of a grant described in Subsection (1), subject
to approval by the state board.
(3) A school district that receives grant funding under this section shall demonstrate the
ability to provide sufficient ongoing funding to support the operation and maintenance of the
new or renovated facility resulting from the capital development project based on standards
that the panel establishes.
Section 8. Section 
53F-10-302
 is enacted to read:
 53F-10-302.
Capital development project loans.
(1) The panel may recommend and the state board may distribute capital project
funding for a loan to an eligible school district to provide the required match amount described
in Section 
53F-10-301
 for a capital development project that the panel has prioritized:
(a) at an interest rate that the state treasurer establishes that is equal to the state's most
recent general obligation bond rate; or
(b) at no interest for a school district:
(i) with a per-household property tax that is higher than 125% of the statewide average
of property tax as a percentage of household income, based on the data sets described in
Subsection 
53F-10-302
(1)(b); and
(ii) that has incurred debt equal to 90% of the debt limit imposed by Utah Constitution,
Article XIV, Section 4.
(2) The panel shall determine the repayment terms of a loan described in Subsection
(1), subject to state board approval, based on established standards.
(3) Repayment of a loan described in Subsection (1) and associated interest shall be
deposited into the Small School District Capital Projects Fund.
(4) An LEA that receives loan funding under this section shall demonstrate the ability
to provide sufficient ongoing funding to support the operation and maintenance of the new or
renovated facility resulting from the capital development project based on standards that the
panel establishes.
Section 9. 
Appropriation.
The following sums of money are appropriated for the fiscal year beginning July 1,
2022, and ending June 30, 2023. These are additions to amounts previously appropriated for
fiscal year 2023. Under the terms and conditions of Title 63J, Chapter 1, Budgetary Procedures
Act, the Legislature appropriates the following sums of money from the funds or accounts
indicated for the use and support of the government of the state of Utah.
ITEM 1
To State Board of Education - School Building Programs - Capital Outlay Programs
From Uniform School Fund Restricted - Public Education Economic
Stabilization Restricted Account, One-time
$50,000,000
Schedule of Programs:
Small School District Capital Projects Fund $50,000,000
The Legislature intends that the State Board of Education distribute appropriated funds
from the Small School District Capital Projects Fund, in accordance with Title 53F, Chapter
10, State Funding -- Local Capital Development Projects.
ITEM 2
To Department of Administrative Services - Finance Mandated - Utah Schools for the
Deaf and the Blind Capital Facilities
From Uniform School Fund Restricted - Public Education Economic
Stabilization Restricted Account, One-time
$30,000,000
Schedule of Programs:
Utah Schools for the Deaf and the Blind
Capital Facilities $30,000,000
The Legislature intends that:
(1) the State Board of Education in consultation with the Division of Facilities
Construction and Management, evaluate the provision of capital facilities for the Utah Schools
for the Deaf and the Blind in southwestern Utah and Salt Lake County to address student
academic needs of direct instruction and support services, efficiency of use, and maximizing
student capacity, impact of delivering services to students in each region, cost effectiveness,
and priority of construction;
(2) the State Board of Education report the findings of the evaluation to the Executive
Appropriations Committee by October 1, 2022; and
(3) that the Division of Finance release appropriated funds to the Division of Facilities
Construction and Management to construct facilities as recommended in the report.
ITEM 3
To State Board of Education - Minimum School Program - Related to Basic
School Program
From Uniform School Fund Restricted - Public Education Economic
Stabilization Restricted Account, One-time
$128,100,000
Schedule of Programs:
Student and School Support, One-time $128,000,000
The Legislature intends that:
(1) the State Board of Education distribute funds under this item in accordance with
Section 
53F-7-202
; and
(2) the Public Education Appropriations Subcommittee:
(a) receive input from the State Board of Education, governor, and local education
agencies regarding the distribution of one-time allocations from the Public Education
Economic Stabilization Restricted Account to school districts and charter schools in
accordance with Section 
53F-7-202
; and
(b) report the subcommittee's recommendations to the Executive Appropriations
Committee by December 1, 2022.
Section 10. 
Effective date.
If approved by two-thirds of all the members elected to each house, this bill takes effect
upon approval by the governor, or the day following the constitutional time limit of Utah
Constitution, Article VII, Section 8, without the governor's signature, or in the case of a veto,
the date of veto override.
Section 11. 
Revisor instructions.
The Legislature intends that the Office of Legislative Research and General Counsel, in
preparing the Utah Code database for publication, replace the reference in Section 
53F-10-301
from "the effective date of this bill" to the bill's actual effective date.