Education, Administration

Rule R277-477

Distribution of Funds from the Interest and Dividend Account (School LAND Trust Funds) and Administration of the School LAND Trust Program

Notice of Proposed Rule

(Amendment)

DAR File No.: 36664
Filed: 08/15/2012 07:31:51 PM

RULE ANALYSIS

Purpose of the rule or reason for the change:

This rule is amended to reflect changes in H.B. 367, 2012 General Session and from a legislative audit.

Summary of the rule or change:

Definitions are added, amended and removed; additional requirements regarding assurance forms, school community council and charter trust land committee forms, and ineligible programs or activities are added or revised in Section R277-477-3; and new and amended language regarding the governance and administration of the School LAND Trust Program is provided for in Section R277-477-4.

State statutory or constitutional authorization for this rule:

• Subsection 53A-16-101.5(3)(c)
• Subsection 53A-1-401(3)

Anticipated cost or savings to:

the state budget:

There is no anticipated cost or savings to the state budget. Changes to the rule that apply to the state regarding administration of the School LAND Trust Program do not require any additional funding or expenditures.

local governments:

There is no anticipated cost or savings to local government. Changes to the requirements of specific forms and ineligible programs or activities do not result in a cost or savings to public schools.

small businesses:

There is no anticipated cost or savings to small businesses. This rule and the amendments apply to public education and do not affect businesses.

persons other than small businesses, businesses, or local governmental entities:

There is no anticipated cost or savings to persons other than small businesses, businesses, or local government entities. The changes affect public schools.

Compliance costs for affected persons:

There are no compliance costs for affected persons resulting from the amendments to this rule. Although there are compliance consequences within this rule, there are no direct costs.

Comments by the department head on the fiscal impact the rule may have on businesses:

I have reviewed this rule and I see no fiscal impact on businesses.

Larry K. Shumway, State Superintendent

The full text of this rule may be inspected, during regular business hours, at the Division of Administrative Rules, or at:

Education
Administration
250 E 500 S
SALT LAKE CITY, UT 84111-3272

Direct questions regarding this rule to:

• Carol Lear at the above address, by phone at 801-538-7835, by FAX at 801-538-7768, or by Internet E-mail at [email protected]

Interested persons may present their views on this rule by submitting written comments to the address above no later than 5:00 p.m. on:

10/01/2012

This rule may become effective on:

10/08/2012

Authorized by:

Carol Lear, Director, School Law and Legislation

R277. Education, Administration.

R277-477. Distribution of Funds from the Interest and Dividend Account (School LAND Trust Funds) and Administration of the School LAND Trust Program.

R277-477-1. Definitions.

A. "Board" means the Utah State Board of Education. The Board is the primary beneficiary representative and advocate for beneficiaries of the School Trust corpus and the School LAND Trust Program.

B. "Charter Trust Land Committee" means the governing board of the charter school consistent with Section 53A-16-101.5.

[B]C. "Fall Enrollment Report" means the audited census of students registered in Utah public schools as reported in the audited October 1 Fall Enrollment Report from the previous year.

[C]D. "Funds" means interest and dividend income as defined under Section 53A-16-101.5(2).

[D]E. "Interest and Dividends Account" means a[n] restricted account within the Uniform School Fund created under Section 53A-16-101 established to collect interest and dividends from the permanent State School Fund until the end of the fiscal year at which time the funds are distributed to school districts , charter schools and the USDB through the School LAND Trust Program.

[E]F. "Local board of education" means the locally-elected board designated in Section 53A-3-101 that makes decisions and directs the actions of local school districts and is directed in Section 53A-16-101.5(5)(b) to approve School LAND Trust plans for schools under the local board's authority.

[F]G. "Most critical academic needs" for purposes of this rule means academic needs identified in the school improvement plan developed in accordance with Section 53A-1a-108.5.

[G]H. "School Children's Trust Section" means employees [designated by] who report to the Superintendent or Superintendent's designee and [who] have responsibilit[y]ies [for overseeing the use of School LAND Trust Program funds]as outlined in Sections 53A-16-101.5 and 53A-16-101.6.

[H]I. "School community council" means the [geographic area designated by the school district as the attendance area with reasonable inclusion of the parents or legal guardians of additional students who are attending the school]council organized at each school district public school as established in Section 53A-1a-108 and R277-491. The council includes the principal, school employee members and parent members. There shall be at least a two parent member majority.

[I]J. "State Charter School Board (SCSB)" means the board designated under Section 53A-1a-501.5 that has responsibility for making recommendations regarding the welfare of charter schools to the Board and the board that has responsibility to approve School LAND Trust plans for charter schools. The SCSB has primary responsibility to provide training and oversight for charter school School LAND Trust plans.

[J]K. "State Superintendent of Public Instruction (Superintendent)" means the individual appointed by the Board as provided for in Section 53A-1-301(1) to administer all programs assigned to the Board in accordance with the policies and the standards established by the Board.

[K]L. "Student" means a child in public school grades kindergarten through twelve counted on the audited October 1 Fall Enrollment Report of the school district, charter school, or USDB.

[L]M. "USDB" means the Utah Schools for the Deaf and the Blind.

[M]N. "USOE" means the Utah State Office of Education.

 

R277-477-2. Authority and Purpose.

A. This rule is authorized by Utah Constitution Article X, Section 3 which places general control and supervision of the public school system under the Board, by Section 53A-16-101.5(3)(c) which allows the Board to adopt rules regarding the time and manner in which the student count shall be made for allocation of school trust land funds, and by Section 53A-1-401(3) which allows the Board to adopt rules in accordance with its responsibilities.

B. The purpose of this rule is to:

(1) provide direction in the distribution of interest and dividends from the Interest and Dividends Account created in Section 53A-16-101 and funded in Section 53A-16-101.5(2) through school districts;

(2) provide for appropriate and adequate oversight of the expenditure and use of School LAND Trust monies by designated local boards of education, the SCSB, and the Board;

(3) provide for:

(a) review and monitoring of funds and revenue generated by school trust lands;

(b) compliance by councils with requirements in statute and Board rule; and

(c) allocation of the monies as provided in Section 53A-16-101.5(3)(c) based on student count.

(4) define the roles, duties, and responsibilities of the School Children's Trust Section within the USOE.

 

R277-477-3. Distribution of Funds - Determination of Proportionate Share.

A. Funds shall be distributed to school districts and charter schools as provided under Section 53A-16-101.5(3)(a). The distribution shall be based on the state's total fall enrollment as reflected in the audited October 1 Fall Enrollment Report from the previous school year.

B. Each school district and the USOE, with regard to charter schools and the USDB, shall distribute funds received under R277-477-3A to each school within each school district or to each charter school and USDB on an equal per student basis within a school district.

C. Local boards of education and the USOE may adjust distributions, maintaining an equal per student distribution within a school district for school openings and closures and for boundary changes occurring after the audited October 1 Fall Enrollment Report of the prior year.

D. All school district public [non-charter ]schools receiving funds shall have a school community council as required by Sections 53A-1a-108 and R277-491; funds shall be used to enhance or improve a school's academic excellence consistent with Section 53A-16-101.5. Plans shall be approved by the local board of education. Required school community council-generated plans or programs include:

(1) School Improvement Plan;

(2) School LAND Trust Program;

(3) Reading Achievement Plan (for elementary schools)

(4) Professional Development Plan;

(5) Child Access Routing Plan (for elementary, junior high and middle schools); and

(6) Recommendations regarding school/school district programs and community environment.

E. All charter schools that elect to receive School LAND Trust funds shall have a charter trust lands committee[ consisting of a majority of parents elected from parents of students currently attending the charter school that is designated to make decisions about the School LAND Trust funds, and a current school plan for enhancing or improving academic excellence consistent with Section 53A-16-101.5 approved by the SCSB for state chartered schools].

F. The plan shall be electronically submitted to the USOE on the School LAND Trust Program website.

G. All charter schools shall be considered collectively as a school district to receive a base amount under Section 53A-16-101.5(3)(a)(i).

H. The USDB shall receive the average statewide per pupil amount, multiplied by the audited fall enrollment total, as the USDB annual allocation.

I. In order to receive its allocation, a school shall satisfy the requirements of Section 53A-16-101.5(4-7).

J. Plans shall include [specific]measurable academic goals, specific steps to meet those goals, measurements to assess improvement and specific expenditures to implement plans[that may include purchase of workbooks, textbooks, professional development, computer hardware and software, library and media supplies, or supplement funding for aides, teachers and specialists, and other tools] for student academic improvement consistent with Section 53A-16-101.5(5).

K. As part of the school plan submission:

(1) principals shall provide a signed assurance form affirming that the membership of the school community council and the process used for election and appointment of members to the council was made consistent with Sections 53A-1a-108,[ and] 53A-16-101.5, and R277-491; and

(a) The form shall be scanned and uploaded by principals or school districts to the School LAND Trust website database.

(b) The school district shall review the signed principal assurance forms for the schools in their school district and certify that the correct form has been entered, signed and displays the required completed information for each school in the school district. Any school that does not comply shall be noted in the school district certification. The certification shall be completed on the school district page of the School LAND Trust website before school districts may approve school plans for the upcoming school year.

(2) [A]The School LAND Trust plan shall include a record of the vote by the school community council when the school plan was approved including the date of the vote, vote[r]s for, against, and absent[ voters], consistent with Section 53A-16-101.5.

(3) A form that includes the names of members of the school community or charter trust land committee shall be signed by members of the council or committee to indicate their involvement in implementing the current School LAND Trust plan and developing the school plan for the upcoming year. The form shall be uploaded to the database by the principal or school district employee.

L. In accordance with R277-477-3D, income from the Interest and Dividends Account shall be distributed to school districts, USDB, and charter schools beginning in July each fiscal year based on deposits to the Interest and Dividends Account within the Uniform School Fund from the prior fiscal year.

M. If a school chooses not to apply for School LAND Trust Program funds and meet the requirements for receiving funds, the funds allocated for that school shall be retained at USOE and included with the statewide distribution for the following school year.

N. Local boards of education or the SCSB shall consider plans annually and may approve or disapprove a school plan. If a plan is not approved, the local board or the chartering entity shall provide a written explanation of [necessary amendments prior to resubmission of the plan]why the plan was not approved and request a revised plan for reconsideration, consistent with Section 53A-16-101.5.

O. Local boards shall ensure timely distribution of the funds to schools with approved plans.

P. When approving school plans on the School LAND Trust Program website, school district and charter school personnel shall report the meeting date(s) when the local board of education or the SCSB approved the plans.

Q. Funds not used in the school approved plan may be carried over by the school to the next school year and added to the School LAND Trust Program funds available for expenditure in that school the following year. Schools shall provide an explanation for any carry over that exceeds one-tenth of the school's allocation in the school plan or report.

R. School LAND Trust Program funds shall be focused on the school's most critical academic needs.

S. School LAND Trust Program funds shall be focused on implementing a recommended course of action to enhance or improve student academic achievement and implement a component of the school improvement plan focused on the school's identified most critical academic needs, as explained in Section 53A-1a-108.5 and Section 53A-16-101.5(5).

T. Examples of successful programs using School LAND Trust Program monies include activities such as:

(1) credit recovery courses and programs;

(2) study skills classes;

(3) college entrance exam preparation classes;

(4) academic field trips;

(5) classroom equipment and materials such as flashcards, math manipulatives, calculators, microscopes, maps, books, or student planners;

(6) teachers and teacher aides;

(7) professional development directly tied to school academic goals;

(8) student focused educational technology;

(9) books and textbooks.

U. Examples of programs or activities [not ]ineligible for[ funding using] School LAND Trust Program [monies]funding include[ plans to improve] school climate,[ provide] security,[ address] behavior[al issues],[prevent] bullying prevention,[ install permanent auditorium] audio -visual systems in non-classroom locations, non-academic field trips, food and drink for council meetings or parent nights, printing and mailing costs for notices to parents, office administrative costs, athletic or intermural programs, and programs that initiate or support other non-academic school [needs]purposes.

V. Schools serving students with disabilities may use funds as needed to directly influence and improve student performance according to the student Individual Education Plans (IEPs), consistent with R277-491-6E.

W. The School Children's Trust Section of the USOE shall create and electronically post training and support materials for school community councils, charter[ school] trust land committees and local school boards.

X. Funds from the School LAND Trust Program that are expended inconsistent with the requirements and academic intent of the law, inconsistent with R277-477 or R277-491[, or] and inconsistent with the school board/charter board approved plan [may]shall be reduced or eliminated by the Board in subsequent years[ until the misappropriated funds have been restored].

Y. The Board may recommend that School LAND Trust Program funds be reduced or eliminated if the school has failed to comply with Section 53A-1a-108 in the election or appointment of school community council members.

Z. Public [S]schools [serving only youth in custody may form committees and submit plans to the district serving the students. Youth in custody schools shall receive the same per pupil distribution as other schools in the district providing services]that are secure facilities, juvenile detention facilities, hospital program schools, and other small special programs may receive School LAND Trust funds available to schools with a school community council if they demonstrate and document a good faith effort to recruit council members, have meetings and publicize results as recognized and affirmed by local boards of education.

AA. Plans submitted by charter schools shall be prepared, submitted and approved by the charter [school]trust land committee established in R277-470-11, [requiring a majority of elected parents to serve on the committee,] and then submitted first to the local charter school board, then to the local board of education for approval, if the school is chartered by the school district, or to the SCSB if the school is chartered by the Board.

BB. Plans submitted by the USDB governing board shall be reviewed and approved by the State Superintendent or designee.

CC. A designated amount [approved by the Board of]appropriated by the Legislature from the Interest and Dividends Account [may]shall be used to fund the administration of the program [by]and other duties outlined in this rule, Sections 53A-16-101.5 and 53A-16-101.6 of the School Children's Trust Section.

DD. Any unused balance initially allocated for School LAND Trust Program administration shall be deposited in the Interest and Dividends Account for future distribution to schools in the School LAND Trust Program.

 

R277-477-4. Administration of School LAND Trust Program.

[A. The School Children's Trust Section of the USOE shall provide support to local boards of education, to the SCSB and to local charter trust land committees, as directed by the Superintendent.

B. The School Children's Trust Section shall report directly to the Superintendent or the Superintendent's designee. Staff in the School Children's Trust Section may include individuals who:

(1) possess professional qualifications and expertise pertinent to the purposes and activities of the trust;

(2) possess professional qualifications in areas specifically related to the trust such as trust law, finance, real estate, and energy development;

(3) may or may not have experience in public schools and may or may not hold an educator license.

C. The School Children's Trust Section shall advise and assist the Board and the Superintendent in:

(1) representing the current and future beneficiaries of the common school trust, Institution for the Blind trust, and School for the Deaf trust to the School and Institutional Trust Lands Administration (SITLA), the State Treasurer, and the Utah Attorney General by providing oversight as directed by the Superintendent or the Superintendent's designee.]A. There is established a School Children's Trust Section within the USOE. The Section staff shall protect current and future beneficiary rights and interests in the trust consistent with the state's perpetual obligations under the Utah Enabling Act, the Utah Constitution, state statute and standard trust principles described in Section 53C-1-102.

B. The Board appoints the director of the School Children's Trust Section, in accordance with Section 53A-16-101.6.

C. Under the direction of the Superintendent, the Section staff shall:

(1) promote productive use of school and institutional trust lands;

(2) provide representation, advocacy, and information:

(a) on behalf of current and future beneficiaries of the trust, school community councils, schools, and school districts;

(b) on federal, state and local land decisions and policies that affect the trust;

(c) to the School and Institutional Trust Lands Administration, the School and Institutional Trust Lands Board of Trustees, the Legislature, the state treasurer, the attorney general, the public, and other entities as determined by the section.

(3) provide independent oversight on the prudent and profitable management of the trust and report annually to the Board and the Legislature;

(4) provide information requested by a person or entity described in R277-477-4B(2)(c);

(5) provide support to local boards of education, to the SCSB and to local charter trust land committees, as direct by the Superintendent;

(6) advise and assist the Board and the Superintendent, as requested, in[

(2)] informing and providing support or support services to school community councils, schools, school districts, and other education groups to advocate on behalf of public education on federal, state, and local land decisions and policies as they affect school funding and the long term growth of the permanent State School Fund as directed by the Superintendent or the Superintendent's designee.

D. Support services shall include:

(1) Regional training and, as requested and to the extent of resources available, school district or school training for school community councils;

(2) Training materials to support school community councils in creating and reviewing school improvement plans, School LAND Trust plans, reading achievement plans, professional development plans, and child access routing plans for both elementary and secondary schools.

(3) Providing [M]materials, suggested practices and plans for use by community councils and charter[ school] trust land committees to:

(a) increase community and parent awareness and knowledge of community councils;

(b) increase community and parent knowledge about school trust lands and their history and purpose in generating funds for public schools;

(c) encourage parent participation in developing plans for local board approval for the use of School LAND Trust allotments.

[E.](4) [The School Children's Trust Section shall m]Monitoring development of School LAND Trust plans and assist local community councils and charter[ school] trust land committees with plan development as requested, and monitor expenditures and compliance with statutory requirements. Assistance/monitoring may include providing:

([1]a) timely notification of annual School LAND Trust allotments to public schools;

([2]b) clear and timely notification of required timelines for plan submission;

([3]c) periodic, cost-effective and scheduled review of submitted school plan consistency and plan expenditures and results;

([4]d) [verifying] web postings and other information regarding school community council and charter[ school] trust land committees[ compliance with the Utah Public and Open Meetings Act].

[F.](5) [The School Children's Trust Section shall] receiv[e]ing direction from the Superintendent as it provides monitoring and review.

[G.](6) Monitoring and review shall be accomplished primarily through :

(a) written/electronic assurances from school community councils and charter school trust land committees[,];

(b) written/electronic submission of information from local school boards and charter schools and random and selective compliance reviews of School LAND Trust expenditures[,];

(c) the execution of School LAND Trust plans[,]; and

(d) other school community council requirements.

[H.](7) [The School Children's Trust Section shall]A report annually to the Board on compliance review findings and other compliance issues. The Board shall make determinations regarding reduction or elimination of all or a portion of a school's School LAND Trust Program funding in subsequent years, following review and consideration of compliance and financial reviews conducted by the School Children's Trust Section and results of a Legislative Auditor's school community council election review process, and make a report to the Public Education Appropriation Subcommittee.

[I.](8) [The School Children's Trust Section shall, under the direction of the Superintendent,]Receiving direction from the Superintendent to provide oversight and expertise regarding the School LAND Trust account and all related activities. Oversight and activities may include:

([1]a) attending meetings where school trust land, permanent fund, and school community council issues are discussed and voted on;

([2]b) providing information to federal, state and local government agencies, the general public, Congress, and the Legislature regarding school trust lands, the trust revenues and expenditure of revenues;

([3]c) reviewing and providing information as representatives of the Superintendent to the Congress, Legislature, boards, state and federal agencies and employees that have responsibility for managing school trust lands, maximizing trust land revenues, and investing the permanent State School Fund prudently;

([4]d) increas[e]ing and strengthening beneficiary monitoring; and

([5]e) other activities or assignments as directed by the Superintendent.

[J]E. The president of each local board of education or of each local charter board shall ensure that the members of the board are provided with annual training on the requirements of the School LAND Trust Program. Notice of training shall be provided to the USOE School Children's Trust Section [via email of board minutes identifying training information]before school districts mark plans as approved on the School LAND Trust website following local board approval.

[K]F. A local school board shall comply with Section 53A-1a-108(10) and provide required copies of the Utah Code to school community council members.

 

R277-477-5. Information to USOE.

A. Information on each school's plan to address most critical academic needs shall be completed via the School LAND Trust Program website maintained through the USOE for accurate and uniform reporting.

B. To facilitate submission of information by schools, each school board shall establish a [timeline for timely submission of information and a]school district submission date for the school district schools not later than May 15 of each year.

C. Timelines shall allow for school committee reconsideration and editing of the school plan following local board of education or SCSB requested changes.

D. USOE staff may visit schools receiving funds from the School LAND Trust Program as directed by the Superintendent to discuss the program, receive information and suggestions, provide training, and answer questions.

E. School districts and charter schools wishing to submit information to the School LAND Trust website through a comprehensive electronic plan shall meet the parameters for programming and data entry required by the USOE. They shall review School LAND Trust plans on the USOE website prior to local board of education or SCSB approval to ensure information consistent with the law has been downloaded by individual schools into the electronic plan visible on the School LAND Trust Program website.

F. Charter school and school district business administrators shall enter financial data relating to the School LAND Trust Program on the School LAND Trust Program website at the time they prepare and submit Annual Program Report (APR) data to the USOE. The appropriate data shall appear in the final reports submitted online by school community councils for reporting to parents as required in Section 53A-1a-108.

G. The financial data shall include:

(1) the annual distribution received by each school (the sum of the distributions to schools within a school district equals the total distributed to the school district by the USOE);

(2) expenditures by category made by each school from revenues received from the School LAND Trust in the prior fiscal year.

H. Expenditures made after the close of the fiscal year shall be accounted for as expenditures in the following fiscal year.

I. The financial report in each school final report shall be consistent with the narrative submitted by that school community council or charter committee.

 

KEY: schools, trust lands funds

Date of Enactment or Last Substantive Amendment: [December 8, 2011]2012

Notice of Continuation: November 10, 2010

Authorizing, and Implemented or Interpreted Law: Art X Sec 3; 53A-16-101.5(3)(c); 53A-1-401(3)