1. (1) An innovation school with an approved innovation plan may apply to the Board for budgetary flexibility as described in Section 53G-7-222.

2. (2) The application for budgetary flexibility shall be created by the Superintendent and include:

   1. (a) an itemized budget detailing the expenditures needed to fund the innovation plan;
   2. (b) the current restricted funds that will be used including how much of each fund will be used for the innovation plan; and
   3. (c) a plan for annually reporting to the Superintendent regarding budgetary expenditures from restricted funds to ensure compliance.
3. (3) The Board shall approve an application for budgetary flexibility unless the application is in violation of state law on budget and funding matters.
4. (4) If an approved innovation school receives approval from the Board for budgetary flexibility, the approved innovation school shall report expenditures and evidence in form prescribed by the Superintendent including any unlawfully adverse effect on an originating program.

5. (5) The Board may terminate an innovation plan for violation of the approved budget including:

   1. (a) the failure of any originating program from which restricted funds have been diverted as defined by state law;
   2. (b) failure to match expenditures with approved budget; and
   3. (c) failure to provide evidence of expenditures in the format required by the Superintendent.

KEY: innovation; regulatory sandbox; restricted funds

Date of Last Change: December 22, 2022

Authorizing, and Implemented, or Interpreted Law: Art X Sec 3; 53G-7-221(9); 53G-7-222(4); 53E-3-401(4)