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(1) As used in this section:
(a) "Account" means the Charter School Closure Reserve Account created in this section.
(b) "Charter school authorizer" or "authorizer" means an entity listed in Section 53G-5-205 that authorizes a charter school.
(2) There is created within the Education Fund a special revenue fund known as the "Charter School Closure Reserve Account."
(3) The account consists of:
(a) appropriations of the Legislature;
(b) amounts deposited into the account in accordance with this section; and
(c) interest earned on money in the account.
(4)
(a) The account shall earn interest.
(b) Interest earned on the account shall be deposited into the account.
(5)
(a) In a fiscal year that begins on or after July 1, 2021, a charter school shall annually contribute to the account $2 per student enrolled in the charter school until the account balance reaches $3,000,000.
(b)
(i) Beginning with the fiscal year following the first fiscal year in which the account balance reaches $3,000,000, except as provided in Subsections (5)(b)(ii) and (iii), in any fiscal year in which the account balance is less than $3,000,000, a charter school shall contribute to the account a prorated amount, not to exceed $2 per student enrolled in a charter school, in accordance with Subsection (6).
(ii) Except as provided in Subsection (5)(b)(iii), if no funds have been withdrawn from the account due to a charter school closure, in a fiscal year that begins on or after July 1, 2024, in which the account balance is less than $2,500,000, a charter school shall contribute to the account a prorated amount, not to exceed $2 per student enrolled in a charter school, in accordance with Subsection (6).
(iii) If no funds have been withdrawn from the account due to a charter school closure, in a fiscal year that begins on or after July 1, 2026, in which the account balance is less than $2,000,000, a charter school shall contribute to the account a prorated amount, not to exceed $2 per student enrolled in a charter school, in accordance with Subsection (6).
(c) The state board shall ensure that the total contribution from charter schools described in Subsection (5)(b) equals the lesser of:
(i)
(A) in a fiscal year after the first fiscal year in which the account balance reaches $3,000,000, an amount sufficient to maintain an account balance of $3,000,000;
(B) in a fiscal year that begins on or after July 1, 2024, if no funds have been withdrawn from the account due to charter school closure, an amount sufficient to maintain an account balance of $2,500,000; or
(C) in a fiscal year that begins on or after July 1, 2026, if no funds have been withdrawn from the account due to charter school closure, an amount sufficient to maintain an account balance of $2,000,000; and
(ii) $2 per student enrolled in a charter school.
(6) The state board of education shall make rules in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, for:
(a) calculating the amounts described in Subsections (5)(b) and (c);
(b) a process for collecting charter school contributions to the account described in this section; and
(c) a process for depositing charter school contributions to the account described in this section into the account.
(7) Money in the account may only be used upon closure of a charter school that closes on or after January 1, 2021:
(a) to pay debts that the charter school owes to:
(i) the state board; or
(ii) the state or federal government;
(b) after the charter school has made other reasonable attempts to resolve debts the charter school owes to:
(i) the state board; or
(ii) the state or federal government; and
(c) after a charter school liquidates all of the charter school's assets.
(8) Money in the account may not be used to pay bond debt.
(9) The state board, in partnership with a charter school authorizer:
(a) may authorize the use of money in the account, subject to the restrictions described in Subsections (7) and (8); and
(b) before authorizing the use of funds in the account as described in Subsection (9)(a), shall investigate all reasonable alternatives for a charter school to pay debt that the charter school owes to: