53F-10 - State Funding — Capital Projects
Title 53F > 53F-10
Sections (7)
General Provisions
53F-10-101 - Definitions.
As used in this section: 53F-10-101(1) “Capital development project” means the same as that term is defined in Section 63A-5b-401, including new construction, capital expansion, and renovation. 53F-10-101(2) “Capital local levy” means the levy that a local school board imposes under Section 53F-8-303. 53F-10-101(3) “Capital Projects Evaluation Panel” or “panel” means the panel established in Section 53F-10-201. 53F-10-101(4) “Capital projects funding” means funds distributed from the Small School District Capital Projects Fund. 53F-10-101(5) “Division” means the Division of Facilities Construction and Management. 53F-10-101(6) “Eligible school district” means a school district:
in a county of the fourth, fifth, or sixth class; and that qualifies for state guarantee funding related to local levies under Section 53F-2-601; or that has a project that the panel has approved; and that the state board approves, upon the state superintendent’s recommendation. 53F-10-101(7) “Small School District Capital Projects Fund” or “fund” means the capital projects fund created in Section 53F-9-601.
53F-10-102 - Capital development project proposal process — State board role.
53F-10-102(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:
the panel’s review, prioritization, and recommendation to the state board; the state board’s consideration and approval, if applicable, of proposed capital development projects; and management of panel processes and administration. 53F-10-102(2) The state board may fund direct costs and administration of the panel, not to exceed $200,000. 53F-10-102(3) The state board shall:
evaluate recommendations of the panel regarding proposed capital development projects; approve proposed capital development projects, subject to the availability of capital development funding; and oversee the disbursement of capital development funding.
Capital Projects Evaluation Panel
53F-10-201 - Capital Projects Evaluation Panel.
53F-10-201(1) There is created the Capital Projects Evaluation Panel to review, prioritize, and approve proposals for state funding of capital projects under this chapter. 53F-10-201(2) The panel consists of the following members:
the state superintendent of public instruction or the state superintendent’s designee, who serves as chair of the panel; the deputy superintendent for financial operations or the deputy superintendent’s designee; two individuals with expertise in school construction whom the state superintendent appoints; two individuals with construction and construction financing experience, at least one of whom being an employee of the division, whom the governor appoints; and the state treasurer or the state treasurer’s designee, only in the case of panel action regarding a loan under Section 53F-10-302. 53F-10-201(3) Except as provided under Subsection (3)(a)(ii), an appointed member of the panel shall serve a term of two years. 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. The state superintendent and governor shall make the respective appointments: for the initial appointments, before July 1, 2022; for subsequent terms, before July 1 of each even-numbered year, by:
reappointing the panel member whose term expires under Subsection (3)(a)(i); or appointing a new panel member; and in the case of a vacancy created under Subsection (3)(a)(ii), for the remainder of the vacated term. The state superintendent and governor may change the relevant appointment described in Subsection (2) at any time for the remainder of the existing term. 53F-10-201(4) A panel member:
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 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: Sections 63A-3-106 and 63A-3-107; and rules that the Division of Finance makes under Sections 63A-3-106 and 63A-3-107. 53F-10-201(5) A majority of the panel members constitutes a quorum. The action of a majority of a quorum constitutes an action of the panel. 53F-10-201(6) The state board shall provide staff support to the panel. The division shall provide technical expertise to the panel as requested by the panel.
53F-10-202 - Panel duties.
53F-10-202(1) The panel shall:
determine criteria for: 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:
eliminates risks to student life and safety through renewal or replacement; enhances efficiency of use, including combining necessarily existent small schools, described in Section 53F-2-304; addresses essential program growth and capacity; provides a cost effective solution that is appropriate for the facility’s need; and comports with the school district’s provision of matching funds and sufficient revenues for ongoing operation and maintenance; evaluate capital development project proposals to ensure viability, efficiency, and adherence to education and construction standards; prioritize capital development projects; recommend that the state board distribute capital project funding to school districts; if necessary based on the circumstances of the capital development project, in partnership with the division, oversee the capital development project; and report to the state board regarding the panel’s actions. 53F-10-202(2) The panel may:
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 facilitate engagement with the division or a willing school district partner having the required technical expertise in similar capital development projects.
Local Capital Development Project Funding
53F-10-301 - Capital development project grants.
53F-10-301(1) 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: 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; 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; 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; 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 up to 100% of the total cost of the capital development project as a non-matching grant for an eligible school district that:
has incurred debt equal to 90% of the debt limit imposed by Utah Constitution, Article XIV, Section 4; and 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 March 24, 2022. 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. 53F-10-301(2) The panel shall determine the terms of a grant described in Subsection (1), subject to approval by the state board. 53F-10-301(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.
53F-10-302 - Capital development project loans.
53F-10-302(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:
at an interest rate that the state treasurer establishes that is equal to the state’s most recent general obligation bond rate; or at no interest for a school district: 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 that has incurred debt equal to 90% of the debt limit imposed by Utah Constitution, Article XIV, Section 4. 53F-10-302(2) The panel shall determine the repayment terms of a loan described in Subsection (1), subject to state board approval, based on established standards. 53F-10-302(3) Repayment of a loan described in Subsection (1) and associated interest shall be deposited into the Small School District Capital Projects Fund. 53F-10-302(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.
53F-10-303 - Rural School Sports Facilities Grant Program.
53F-10-303(1) As used in this section:“Eligible school” means a public school within a school district:located in a county of the fourth, fifth, or sixth class, as defined in Section 17-60-104; orwith fewer than 3,000 students enrolled in the school district.”Program” means the Rural School Sports Facilities Grant Program created in Subsection (2).”Sports facility” means an indoor or outdoor facility primarily designed and used for athletic activities, physical education, or school-sponsored sports programs. 53F-10-303(2) There is created the Rural School Sports Facilities Grant Program to provide funding to an eligible school for the construction or refurbishment of a sports facility. 53F-10-303(3) The state board shall:in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, make rules to:create an application process for a school district to apply for program funds;select a school to receive program funds in accordance with Subsection (3)(b); andestablish a system to distribute program funds to a school the state board selects to receive program funds through the program; andsubject to legislative appropriations, prioritize applications and distribute program funds to an eligible school based on:the greatest need for program funds;the financial feasibility of a sports facility construction or refurbishment project; andthe potential benefit program funds may have on the community. 53F-10-303(4) A school district with jurisdiction over an eligible school may submit an application to receive program funds under this section.In the school district’s application, the school district shall:identify an eligible school within the school district that wishes to receive program funds;evidence the need for construction or refurbishment of a sports facility;describe the proposed sports facility project; andestimate a budget and timeline for the completion of the sports facility project. 53F-10-303(5) A school district to which the state board awards program funds shall submit a report to the state board, by December 31 each year while construction is ongoing, detailing:how a school is using program funds to complete the sports facility project;budget and timeline updates related to the construction or refurbishment of the sports facility; andthe progress of the construction or refurbishment of a sports facility. 53F-10-303(6) Subject to legislative appropriations, the state board may award up to $500,000 to each eligible school the state board selects under the program. 53F-10-303(7) Upon request of the Education Interim Committee, the state board shall report to the Education Interim Committee on:the number of applications the state board accepts;the dollar amount of program funds the state board awards under this section;the implementation of the program; andthe use of program funds.