House adopts third substitute on charter school property, revolving fund and governance changes

Utah House of Representatives · February 10, 2026

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Summary

Third substitute HB 241 was adopted after stakeholder negotiations to expand charter access to closed district buildings under defined rules, broaden the Charter School Revolving Fund for limited capital projects, and require charter board members to take an oath; the substitute passed 46–22.

Representative Perucci presented a third substitute to HB 241 that merges two bills and contains several changes negotiated with stakeholders. Key provisions include updating right-of-first-refusal rules so cities and charter entities can bid to purchase closed district school buildings (the district retains discretion); expanding the Charter School Revolving Fund to support small capital projects (under $1,000,000) and allowing limited loans; and adding an oath-of-office requirement for charter-school board members.

Representative Walter described revisions to the revolving fund to permit small capital-improvement loans to charters with defined repayment expectations. The sponsor said districts retain discretion over sale decisions, that sales would be occasional, and that the bill is intended to increase student opportunity and choice.

After floor discussion and questions, the House recorded third-substitute passage, 46 yes and 22 no, and transmitted the bill to the Senate.