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H.B. 92





Sponsor: Bradley G. Last

             5      This act modifies provisions relating to the State System of Public Education and School
             6      and Institutional Trust Lands by conforming statutes on the permanent State School
             7      Fund and Uniform School Fund with the Utah Constitution. This act prescribes what
             8      revenues shall be used to fund the School LAND Trust Program. This act has an
             9      immediate effective date.
             10      This act affects sections of Utah Code Annotated 1953 as follows:
             11      AMENDS:
             12          53A-16-101, as amended by Statewide Initiative B, Nov. 7, 2000, Laws of Utah 2000
             13          53A-16-101.5, as last amended by Chapter 324, Laws of Utah 2002
             14          53C-3-103, as last amended by Chapters 13 and 42, Laws of Utah 1998
             15      Be it enacted by the Legislature of the state of Utah:
             16          Section 1. Section 53A-16-101 is amended to read:
             17           53A-16-101. Uniform School Fund -- Contents.
             18          The Uniform School Fund established by Utah Constitution, Article X, Section 5,
             19      consists of [money received in the state treasury from the following sources]:
             20          (1) interest [on] and dividends derived from the investment of monies in the permanent
             21      State School Fund established by Utah Constitution, Article X, Section 5;
             22          [(2) escheats and forfeitures and proceeds from the sale or other disposition of property
             23      that may accrue to the state by escheat or forfeiture;]
             24          [(3) unclaimed shares and proceeds from the sale or other disposition of those shares
             25      and unclaimed dividends of any corporation incorporated under Utah law;]
             26          [(4) all revenues derived from renewable resources on school and state lands, other
             27      than those granted for specific purposes;]

             28          [(5) the proceeds derived from the leasing or renting of school lands and other state
             29      lands, including all forfeitures, penalties, and grazing and other fees received in connection
             30      with the leases and rentals;]
             31          [(6) money received from leases or rentals of land acquired by the state through
             32      foreclosure of mortgages securing common school fund or through deeds from mortgagors or
             33      owners of those lands; and]
             34          (2) money transferred to the fund pursuant to Title 67, Chapter 4a, Unclaimed Property
             35      Act;
             36          (3) revenue from the sale of forfeited property as provided by Title 24, Chapter 1, Utah
             37      Uniform Forfeiture Procedures Act; and
             38          [(7)] (4) all other constitutional or legislative allocations to the fund, including
             39      revenues received under Utah Constitution, Article XIII, Section 12(3), from taxes on income
             40      or intangible property, except for those income tax revenues appropriated to the state's higher
             41      education system.
             42          Section 2. Section 53A-16-101.5 is amended to read:
             43           53A-16-101.5. School LAND Trust Program -- Contents -- Purpose --
             44      Distribution of funds -- School plans for use of funds.
             45          (1) There is established the School LAND (Learning And Nurturing Development)
             46      Trust Program for the state's public schools to provide financial resources to enhance or
             47      improve student academic achievement and implement a component of the school
             48      improvement plan.
             49          (2) The program shall be funded each fiscal year from that portion of the Uniform
             50      School Fund consisting of [all] the interest and dividends [on] received in the immediately
             51      proceeding fiscal year from the investment of monies in the permanent State School Fund
             52      [remaining after the deduction of the amount retained in the State School Fund to protect the
             53      fund against losses due to inflation as prescribed by the Utah Constitution Article X, Section
             54      5].
             55          (3) (a) The State Board of Education shall allocate all the monies referred to in
             56      Subsection (2) annually for the fiscal year beginning July 1, 2000, and for each fiscal year
             57      thereafter as follows:
             58          (i) school districts shall receive 10% of the funds on an equal basis; and

             59          (ii) the remaining 90% of the funds shall be distributed on a per student basis, with
             60      each district receiving its allocation on the number of students in the district as compared to the
             61      state total.
             62          (b) Each school district shall distribute its allocation under Subsection (3)(a) to each
             63      school within the district on an equal per student basis.
             64          (c) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
             65      board may make rules regarding the time and manner in which the student count shall be made
             66      for allocation of the monies.
             67          (4) In order to receive its allocation under Subsection (3), a school shall have
             68      established a school community council under Section 53A-1a-108 .
             69          (5) (a) The school community council or its subcommittee shall develop a program to
             70      use its allocation under Subsection (3) to implement a component of the school's improvement
             71      plan, including:
             72          (i) the school's identified most critical academic needs;
             73          (ii) a recommended course of action to meet the identified academic needs;
             74          (iii) a specific listing of any programs, practices, materials, or equipment which the
             75      school will need to implement a component of its school improvement plan to have a direct
             76      impact on the instruction of students and result in measurable increased student performance;
             77      and
             78          (iv) how the school intends to spend its allocation of funds under this section to
             79      enhance or improve academic excellence at the school.
             80          (b) The school may develop a multiyear program, but the program shall be presented
             81      and approved by the school community council and the local school board of the district in
             82      which the school is located annually and as a prerequisite to receiving program funds allocated
             83      under this section.
             84          (6) (a) Each school shall:
             85          (i) implement the program as approved by the school community council and approved
             86      by the local school board;
             87          (ii) provide ongoing support for the council's or its subcommittee's program;
             88          (iii) meet school board reporting requirements regarding financial and performance
             89      accountability of the program; and

             90          (iv) publicize to its patrons and the general public on how the funds it received under
             91      this section were used to enhance or improve academic excellence at the school and implement
             92      a component of the school's improvement plan, including the results of those efforts.
             93          (b) (i) Each school through its council or its subcommittee shall prepare and present an
             94      annual report of the program to its local school board at the end of the school year.
             95          (ii) The report shall detail the use of program funds received by the school under this
             96      section and an assessment of the results obtained from the use of the funds.
             97          Section 3. Section 53C-3-103 is amended to read:
             98           53C-3-103. Disposition of interest on permanent funds.
             99          (1) The interest[, including] and dividends[,] derived from the investment of funds
             100      belonging to the [Permanent] permanent State School Fund[, less the amount required to be
             101      retained in the State School Fund pursuant to the Utah Constitution Article X, Section 5,] and
             102      the interest, [including] dividends, and other income of the permanent funds of the respective
             103      state institutions shall be distributed for use for the maintenance of public elementary and
             104      secondary schools or the state institutions in accordance with Title 51, Chapter 7, State Money
             105      Management Act.
             106          (2) Realized and unrealized gains shall be retained in the Permanent State School
             107      Fund.
             108          Section 4. Effective date.
             109          If approved by two-thirds of all the members elected to each house, this act takes effect
             110      upon approval by the governor, or the day following the constitutional time limit of Utah
             111      Constitution Article VII, Section 8, without the governor's signature, or in the case of a veto,
             112      the date of veto override.

Legislative Review Note
    as of 1-2-03 12:53 PM

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

Office of Legislative Research and General Counsel

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