1. (1) Notwithstanding any other provision of the Utah Code:

   1. (a) except as provided in Subsection (1)(b), an LEA may:

      1. (i) use up to 35% of the LEA's state restricted funding for each formula-based program to flexibly and without restriction respond to changing circumstances and student needs;
      2. (ii) transfer fund balances between funds as necessary to flexibly expend funds as described in Subsection (1)(a)(i); and

   2. (b) an LEA may not:

      1. (i) transfer funds under Subsection (1)(a)(i) related to the school LAND Trust Program, established in Section 53G-7-1206, or a qualified grant program; or
      2. (ii) expend the transferred funds for capital projects or improvements.
2. (2) The state board shall make rules, in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, regarding LEA record-keeping of flexible uses of restricted funds under this section.

3. (3)

   1. (a) Nothing in this section authorizes an LEA to violate federal law or federal restrictions on the LEA's funds.
   2. (b) An LEA that takes an action that this section authorizes shall ensure that the LEA continues to meet federal maintenance of effort requirements.

Amended by Chapter 467, 2023 General Session