Charter School Amendments

33
53F-9-203
53F-9-203.1
53G-4-901
53G-4-902
53G-4-904
53G-5-104
53G-5-401
53G-5-406.5
3
Charter School Amendments
2026 GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Candice B. Pierucci
Senate Sponsor: Heidi Balderree
LONG TITLE
General Description:
This bill modifies provisions related to charter schools, including property disposition,
governance requirements, and the Charter School Revolving F
und.
Highlighted Provisions:
This bill:
gives charter schools parity with eligible entities to purchase decommissioned school
property;
establishes restrictions on charter school resale of acquired property;
requires charter school governing board members to take an oath of office;
clarifies that charter schools are public schools;
replaces the Charter School Revolving Account with the Charter School Revolving Fund;
and
makes technical changes.
Money Appropriated in this Bill:
None
Other Special Clauses:
None
Utah Code Sections Affected:
AMENDS:
53F-9-203
, as last amended by Laws of Utah 2024, Chapter 507
53G-4-901
, as last amended by Laws of Utah 2025, First Special Session, Chapter 16
53G-4-902
, as last amended by Laws of Utah 2025, Chapter 391
53G-5-104
, as last amended by Laws of Utah 2024, Chapter 63
53G-5-401
, as last amended by Laws of Utah 2024, Chapter 63
ENACTS:
53F-9-203.1
, Utah Code Annotated 1953
53G-4-904
, Utah Code Annotated 1953
53G-5-406.5
, Utah Code Annotated 1953
Be it enacted by the Legislature of the state of Utah:
Section 1. Section
53F-9-203
is amended to read:
53F-9-203
. Charter School Revolving Account.
(1)
(a)
The terms defined in Section
53G-5-102
apply to this section.
(b)
As used in this section, "account" means the Charter School Revolving Account.
(2)
(a)
There is created within the Uniform School Fund a restricted account known as
the "Charter School Revolving Account" to provide assistance to charter schools to:
(i)
meet school building construction and renovation needs; and
(ii)
pay for expenses related to the start

up of a new charter school or the expansion
of an existing charter school.
(b)
The state board, in consultation with the State Charter School Board, shall administer
the Charter School Revolving Account in accordance with rules adopted by the state
board.
(3)
The Charter School Revolving Account shall consist of:
(a)
money appropriated to the account by the Legislature;
(b)
money received from the repayment of loans made from the account; and
(c)
interest earned on money in the account.
(4)
The state superintendent shall make loans to charter schools from the account to pay for
the costs of:
(a)
planning expenses;
(b)
constructing or renovating charter school buildings;
(c)
equipment and supplies; or
(d)
other start-up or expansion expenses.
(5)
Loans to new charter schools or charter schools with urgent facility needs may be given
priority.
(6)
The state board shall:
(a)
review requests by charter schools for loans under this section; and
(b)
in consultation with the State Charter School Board, approve or reject each request.
(7)
A loan under this section may not be made unless the state board, in consultation with
the State Charter School Board, approves the loan.
(8)
The term of a loan to a charter school under this section may not exceed five years.
(9)
The state board may not approve loans to charter schools under this section that exceed
a total of $2,000,000 in any fiscal year.
(10)
(a)
On March 16, 2011, the assets of the Charter School Building Subaccount
administered by the state board shall be deposited into the Charter School Revolving
Account.
(b)
Beginning on March 16, 2011, loan payments for loans made from the Charter
School Building Subaccount shall be deposited into the Charter School Revolving
Account.
(11)
(a)
On July 1, 2026, the state board shall transfer into the Charter School Revolving
Fund created in Section 53F-9-203.1 the assets, unused money, and obligations of the
Charter School Revolving Account administered under this section.
(b)
Beginning July 1, 2026, the state board shall deposit loan payments received for
loans made under this section into the Charter School Revolving Fund established in
Section 53F-9-203.1.
Section 2. Section
53F-9-203.1
is enacted to read:
53F-9-203.1
. Charter School Revolving Fund.
(1)
As used in this section:
(a)
The definitions in Section
53G-5-102
apply to this section.
(b)
"Fund" means the Charter School Revolving Fund.
(2)
(a)
There is created within the Uniform School Fund a restricted account known as
the Charter School Revolving Fund to provide assistance to charter schools to:
(i)
meet school building construction and renovation needs; and
(ii)
pay for expenses related to the startup of a new charter school or the expansion of
an existing charter school.
(b)
In accordance with
Title 63G, Chapter 3, Utah Administrative Rulemaking Act
, the
Utah Charter Finance Authority shall make rules to administer the fund including:
(i)
establishing the interest rates of loans;
(ii)
amortization schedules for loans; and
(iii)
other terms of repayment.
(3)
The fund shall consist of:
(a)
assets and money deposited in accordance with Subsection
(9)
;
(b)
money the Legislature appropriates to the fund;
(c)
money received from the repayment of loans made from the fund; and
(d)
interest earned on money in the fund.
(4)
The Utah Charter Finance Authority shall make loans to charter schools from the fund
for a loan of:
(a)
up to $1,000,000 to a charter school for a school facility addition or expansion; or
(b)
up to 25% of a requested loan amount to a charter school for the acquisition or
construction of a school facility.
(5)
The Utah Charter Finance Authority shall:
(a)
review requests by charter schools for loans under this section; and
(b)
approve or reject each request.
(6)
The Utah Charter Finance Authority:
(a)
shall:
(i)
make a loan that is secured by a promissory note and a deed of trust from the
charter school; and
(ii)
require a recipient charter school to repay the funds if the recipient charter school
sells or refinances any collateral associated with the loan; and
(b)
may make a loan that is subordinate to senior debt.
(7)
A loan under this section may not be made unless the Utah Charter Finance Authority
approves the loan.
(8)
The Utah Charter Finance Authority shall set the term of a loan to a charter school
under this section.
(9)
(a)
On July 1, 2026, the state board shall transfer into the fund the assets, unused
money, and obligations of the Charter School Revolving Account administered under
Section 53F-9-203.
(b)
Beginning on July 1, 2026, the state board shall deposit loan payments for loans
made from the Charter School Revolving Account into the fund.
Section 3. Section
53G-4-901
is amended to read:
53G-4-901
. Definitions.
As used in this part:
(1)
"Eligible entity" means
:
a city, town, or county.
(a)
a city or town with a population density of 3,000 or more people per square mile; or
(b)
a county whose unincorporated area includes a qualifying planning advisory area.
(2)
"Purchase price" means the greater of:
(a)
an amount that is the average of:
(i)
the appraised value of the surplus property, based on the predominant zone in the
surrounding area, as indicated in an appraisal obtained by the eligible entity; and
(ii)
the appraised value of the surplus property, based on the predominant zone in the
surrounding area, as indicated in an appraisal obtained by the school district; and
(b)
the amount the school district paid to acquire the surplus property.
(3)
"Qualifying planning advisory area" means a planning advisory area under Section
17-79-303
that has a population density of 3,000 or more people per square mile within
the boundaries of the planning advisory area.
(4)
(3)
"Surplus property" means land owned by a school district that:
(a)
was purchased with taxpayer money;
(b)
is located within
an eligible entity
a city or town that is an eligible entity or within a
qualifying planning advisory area
;
(c)
consists of one contiguous tract at least three acres in size; and
(d)
has been declared by the school district to be surplus.
Section 4. Section
53G-4-902
is amended to read:
53G-4-902
. Purchase of surplus property.
(1)
An
Subject to Subsection
(9)
, an
eligible entity
or charter school
may purchase, and
each school district shall sell, surplus property as provided in this section.
(2)
(a)
Upon declaring land to be surplus property, each school district shall give written
notice to each eligible entity in which the surplus property is located.
(b)
Each notice under Subsection
(2)(a)
shall:
(i)
state that the school district has declared the land to be surplus property; and
(ii)
describe the surplus property.
(3)
Subject to Subsection
(4)
, an eligible entity may purchase the surplus property by
paying the school district the purchase price.
(4)
(a)
The legislative body of each eligible entity desiring to purchase surplus property
under this section shall:
(i)
within 90 days after the eligible entity receives notice under Subsection
(2)
, adopt
a resolution declaring the intent to purchase the surplus property and deliver a
copy of the resolution to the school district; and
(ii)
within 90 days after delivering a copy of the resolution under Subsection
(4)(a)(i)

to the school district, deliver to the school district an earnest money offer to
purchase the surplus property at the purchase price.
(b)
If an eligible entity fails to comply with either of the requirements under Subsection
(4)(a)
within the applicable time period, the eligible entity forfeits the right to
purchase the surplus property.
(5)
(a)
An eligible entity may waive the eligible entity's right to purchase surplus
property under this part by submitting a written waiver to the school district.
(b)
If an eligible entity submits a waiver under Subsection
(5)(a)
, the school district has
no further obligation under this part to sell the surplus property to the eligible entity.
(6)
Surplus property acquired by an eligible entity may not be used for any purpose other
than:
(a)
a county, city, or town hall;
(b)
a park or other open space;
(c)
a cultural center or community center;
(d)
a facility for the promotion, creation, or retention of public or private jobs within the
state through planning, design, development, construction, rehabilitation, business
relocation, or any combination of these, within a county, city, or town;
(e)
office, industrial, manufacturing, warehousing, distribution, parking, or other public
or private facilities, or other improvements that benefit the state or a county, city, or
town;
(f)
a facility for a charter school under
Chapter 5, Charter Schools
; or
(g)
the sale, use, or lease for moderate income housing, as defined in Section
63L-12-101
.
(7)
(a)
A school district that sells surplus property under this part may use proceeds from
the sale only for bond debt reduction or school district capital facilities.
(b)
Each school district that sells surplus property under this part shall place all proceeds
from the sale that are not used for bond debt reduction in a capital facilities fund of
the school district for use for school district capital facilities.
(8)
(a)
If both a charter school and one or more eligible entities express interest in
purchasing the same surplus property under this section, the school district may select
among applicants based on factors including:
(i)
educational program fit;
(ii)
financial capacity;
(iii)
community benefit
;

a
n
d
(iv)
the intended use of the property as described in Subsection
(6)
.
(b)
The school district shall provide a written explanation of the
school district's

decision

that identifies which factors under Subsection
(8)(a)
were determinative.
(9)
Charter schools and eligible entities have equal rights to purchase property under this
section and Section
53G-4-904
, with neither having priority over the other.
Section 5. Section
53G-4-904
is enacted to read:
53G-4-904
. Charter school eligible entity option to purchase decommissioned
school buildings and property -- Restrictions on resale.
(1)
As used in this section:
(a)
"Originating LEA" means the LEA that owns the school building to be disposed of or
deco
m
missioned
.
(b)
"School building and associated real property" means:
(i)
a building that has been used as a school facility and the real property on which
the building is located; and
(ii)
does not include portable or modular classrooms that are not permanently affixed
to the real property.
(2)
Before an LEA may dispose of a school building and associated real property through
the sale of the property, the LEA shall provide charter schools and eligible entities, as
defined in Section
53G-4-902
, with the option to purchase the school building and
associated real property.
(3)
In accordance with Subsections
(5)
and
(9)
, the LEA shall provide written notice of the
intended disposition to all charter schools authorized within the state and all eligible
entities at least 90 days before any proposed sale.
(4)
The LEA shall set the price of the sale using an independent appraisal assessing fair
market value, which may be conducted by the Division of Facilities and Construction
Management.
(5)
The LEA shall ensure the notice includes:
(a)
a description of the property;
(b)
the proposed terms of sale including the price determined in accordance with
Subsection
(4)
; and
(c)
a deadline for charter schools and eligible entities to submit written expressions of
interest, which shall be no less than 45 days from the date of notice.
(6)
If multiple charter schools or eligible entities express interest, the LEA may select
among applicants based on factors including educational program fit, financial capacity,
and community benefit.
(7)
(a)
A charter school that purchases a school building and associated real property
under this section may not dispose of the property through a sale without first
complying with the requirements of
this subsection
.
(b)
If a charter school that purchased property under this section intends to sell the
property, the originating LEA may purchase, and the charter school shall sell, the
property at a price equal to the price the charter school paid for the property plus the
cost of any existing improvements that the charter school made to the property after it
purchased the property.
(c)
If the originating LEA does not reacquire the property under Subsection
(7)(b)
, the
charter school shall:
(i)
provide all charter schools authorized within the state and all eligible entities with
the option to purchase in accordance with the procedures established in this
section; and
(ii)
after charter schools and eligible entities have exercised or waived the right,
the
charter school may
offer the property for sale to any other entity.
(d)
If the originating LEA does not reacquire the property under Subsection
(7)(b)
and
the charter school sells the property to another buyer under Subsection
(7)(c)
, the
charter school and the originating LEA shall equally share any proceeds of that sale
that exceed the amount the charter school paid for the property plus the cost of any
existing improvements the charter school made to the property after it purchased the
property.
(8)
This section does not apply to property dispositions resulting from condemnation
proceedings or where federal or state law requires a different disposition process.
(9)
(a)
When written notice is required under this section, the originating LEA shall
notify the state board and charter school authorizers.
(b)
Upon receiving notice under Subsection
(9)(a)
:
(i)
each charter school authorizer shall distribute the notice to all charter schools
authorized by that authorizer; and
(ii)
the state board shall distribute the notice to all school districts and eligible entities
in the state.
Section 6. Section
53G-5-104
is amended to read:
53G-5-104
. Purpose of charter schools -- Charter schools are public schools.
(1)
The purposes of the state's charter schools are to enhance school choice, meet the
unique needs of Utah families, and encourage innovation within the public education
system by:
(1)
(a)
continuing to improve student learning;
(2)
(b)
encouraging the use of different and innovative teaching methods;
(3)
(c)
creating new professional opportunities for educators that allow educators to
actively participate in designing and implementing learning programs at the school;
(4)
(d)
increasing choice of learning opportunities for students;
(5)
(e)
establishing new educational models and new forms of accountability that
emphasize unique performance measures and innovative measurement tools to
measure education outcomes;
(6)
(f)
providing opportunities for greater parental involvement in governance decisions
at the school level;
(7)
(g)
expanding public school choice in areas where there is a lack of school choice or
where schools have been identified for school improvement, corrective action, or
restructuring; and
(8)
(h)
collaborating within the public education system.
(2)
As described in Section
53G-5-401
, a charter school is a public school for all purposes
under Utah law, including:
(a)
the Legislature's authority under Utah Constitution, Article X, Section 3, to designate
schools and educational programs, including charter schools, as part of the public
education system;
(b)
eligibility for public funding and resources;
(c)
access to public facilities and property;
(d)
participation in public school programs and initiatives; and
(e)
application of laws governing an LEA.
Section 7. Section
53G-5-401
is amended to read:
53G-5-401
. Status of charter schools.
(1)
Charter schools
are
:
(a)
are
considered to be public schools within the state's public education system;
(b)
are
subject to Subsection
53E-3-401(8)
; and
(c)
shall be
governed by
an
independent
boards
board whose members have taken the
oath of office as described in Section
53G-5-406.5
,
and held accountable to a legally
binding written contractual agreement.
(2)
A charter school may be established by:
(a)
creating a new school; or
(b)
converting an existing district school to charter status.
(3)
A parochial school or home school is not eligible for charter school status.
Section 8. Section
53G-5-406.5
is enacted to read:
53G-5-406.5
. Oath of office for charter school governing board members.
(1)
Before entering upon the duties of office, each charter school governing board member
shall take and subscribe to the following oath: "I do solemnly swear that I will support,
obey, and defend the Constitution of the United States and the Constitution of the State
of Utah, and that I will discharge the duties of my office as a charter school governing
board member with fidelity."
(2)
The charter school's authorizer shall ensure the oath is administered by:
(a)
in accordance with Section
78B-1-142
, any person authorized to administer oaths;
(b)
for a newly authorized charter school, a representative of the charter school's
authorizer; or
(c)
after the initial board is sworn in, the chair or another member of the charter school
governing board.
(3)
The charter school shall:
(a)
in accordance with Subsection
51-1-2(2)
, maintain a record of each governing board
member's oath; and
(b)
provide proof of compliance to the charter school's authorizer upon request.
Section 9.
Effective Date.
This bill takes effect on
May 6, 2026
.
2-10-26 2:37 PM