H.B. 232

1

PUBLIC EDUCATION FOUNDATION
2 AMENDMENTS
3 1999 GENERAL SESSION
4 STATE OF UTAH
5 Sponsor: Sheryl L. Allen
6 Lloyd W. Frandsen
7 Ron Bigelow
David L. Hogue
A. Lamont Tyler
Afton B. Bradshaw
Judy Ann Buffmire

8 AN ACT RELATING TO EDUCATION FOUNDATIONS; EXPANDING THE POWERS OF
9 PUBLIC EDUCATION FOUNDATIONS; AND ALLOWING PUBLIC EDUCATION
10 FOUNDATIONS TO PARTICIPATE IN THE RISK MANAGEMENT FUND UPON
11 APPROVAL BY THE STATE RISK MANAGER AND THE RESPECTIVE BOARD OF
12 EDUCATION.
13 This act affects sections of Utah Code Annotated 1953 as follows:
14 AMENDS:
15 53A-4-205, as enacted by Chapter 2, Laws of Utah 1988
16 63A-4-204, as last amended by Chapter 55, Laws of Utah 1997
17 Be it enacted by the Legislature of the state of Utah:
18 Section 1. Section 53A-4-205 is amended to read:
19 53A-4-205. Establishment of public education foundations -- Powers and duties --
20 Tax exempt status.
21 (1) [School districts] State and local school boards may establish foundations to:
22 (a) assist in the development and implementation of the programs authorized under this
23 part to promote educational excellence; and
24 (b) assist in the accomplishment of other education-related objectives.
25 (2) A foundation established under Subsection (1):
26 (a) may solicit and receive contributions from private enterprises for the purpose of this
27 part;

28 (b) may deposit funds in financial institutions in accounts which are guaranteed against
29 loss by an agency of the federal government;
30 (c) may invest funds in other ways in accordance with rules made by the State Board of
31 Education in consultation with the state treasurer and school foundation boards;
32 [(b)] (d) has no power or authority to incur contractual obligations or liabilities that
33 constitute a claim against public funds except as provided in this section;
34 [(c)] (e) may not exercise executive, administrative, or rulemaking authority over the
35 programs referred to in this part, except to the extent specifically authorized by the [local]
36 responsible school board; [and]
37 [(d)] (f) is exempt from all taxes levied by the state or any of its political subdivisions with
38 respect to activities conducted under this part; and
39 (g) upon approval by the state risk manager and the respective board of education, may
40 participate in the Risk Management Fund under Section 63A-4-204 as if it were a part of the
41 school district or under Section 63A-4-101 as if it were a part of the State Office of Education.
42 Section 2. Section 63A-4-204 is amended to read:
43 63A-4-204. School district participation in Risk Management Fund.
44 (1) (a) For the purpose of this section, action by a public school district shall be taken upon
45 resolution by a majority of the members of its board of education.
46 (b) Upon [the] approval [of] by the state risk manager and the board of education of the
47 school district, a public school district may participate in the Risk Management Fund and may
48 permit a school district foundation established under Section 53A-4-205 to participate in the Risk
49 Management Fund through the school district.
50 (c) Subject to any cancellation or other applicable coverage provisions, either the state risk
51 manager or the public school district may terminate participation in the fund.
52 (2) The state risk manager shall contract for all insurance, legal, loss adjustment,
53 consulting, loss control, safety, and other related services necessary to support the insurance
54 program provided to a participating public school district, except that all supporting legal services
55 are subject to the prior approval of the state attorney general.
56 (3) (a) The state risk manager shall treat each participating public school district as a state
57 agency when participating in the Risk Management Fund.
58 (b) Each public school district participating in the fund shall comply with the provisions

59 of this part that affect state agencies.
60 (4) (a) The risk manager shall at least annually:
61 (i) prepare information summarizing the coverage provided to school teachers by the Risk
62 Management Fund; and
63 (ii) provide that information to participating school districts.
64 (b) Each participating school district shall provide the coverage information to each school
65 teacher.




Legislative Review Note
as of 1-14-99 8:15 AM

A limited legal review of this legislation raises no obvious constitutional or statutory concerns.

Office of Legislative Research and General Counsel