H.B. 78 Enrolled

SCHOOL LAND TRUST PROGRAM
RESTRICTED ACCOUNT
2004 GENERAL SESSION
STATE OF UTAH
Sponsor: David Clark

LONG TITLE
General Description:
This bill creates a restricted account for the deposit of the earnings derived from the
investment of the permanent State School Fund.
Highlighted Provisions:
This bill:
. creates within the Uniform School Fund a restricted account that consists of:
. interest and dividends derived from the investment of the permanent State
School Fund; and
. interest on the account monies; and
. provides for the use of monies in the restricted account.
Monies Appropriated in this Bill:
None
Other Special Clauses:
This bill takes effect on July 1, 2004.
Utah Code Sections Affected:
AMENDS:
53A-16-101, as last amended by Chapter 226, Laws of Utah 2003
53A-16-101.5, as last amended by Chapters 226 and 320, Laws of Utah 2003
53A-17a-131.17, as last amended by Chapter 320, Laws of Utah 2003
53A-17a-149, as enacted by Chapter 320, Laws of Utah 2003

Be it enacted by the Legislature of the state of Utah:

Section 1. Section 53A-16-101 is amended to read:
53A-16-101. Uniform School Fund -- Contents -- Interest and Dividends Account.
(1) The Uniform School Fund established by Utah Constitution, Article X, Section 5,
consists of:
[(1)] (a) interest and dividends derived from the investment of monies in the permanent
State School Fund established by Utah Constitution, Article X, Section 5;
[(2)] (b) money transferred to the fund pursuant to Title 67, Chapter 4a, Unclaimed
Property Act;
[(3)] (c) revenue from the sale of forfeited property as provided by Title 24, Chapter 1,
Utah Uniform Forfeiture Procedures Act; and
[(4)] (d) all other constitutional or legislative allocations to the fund, including revenues
received under Utah Constitution, Article XIII, Section [12(3)] 5, from taxes on income or
intangible property, except for those income tax revenues appropriated to the state's higher
education system.
(2) (a) There is created within the Uniform School Fund a restricted account known as
the Interest and Dividends Account.
(b) The Interest and Dividends Account consists of:
(i) interest and dividends derived from the investment of monies in the permanent State
School Fund referred to in Subsection (1)(a); and
(ii) interest on account monies.
(3) (a) Upon appropriation by the Legislature, monies from the Interest and Dividends
Account shall be used for:
(i) the School LAND Trust Program as provided in Section 53A-16-101.5 ; and
(ii) teachers' classroom supplies as provided in Section 53A-17a-149 .
(b) The Legislature may appropriate any remaining balance for the support of the public
education system.
Section 2. Section 53A-16-101.5 is amended to read:
53A-16-101.5. School LAND Trust Program -- Purpose -- Distribution of funds _

- 2 -

School plans for use of funds.
(1) There is established the School LAND (Learning And Nurturing Development) Trust
Program for the state's public schools to provide financial resources to enhance or improve
student academic achievement and implement a component of the school improvement plan.
(2) (a) The program shall be funded each fiscal year [from that portion of the Uniform
School Fund consisting of the interest and dividends received in the immediately preceding fiscal
year from the investment of monies in the permanent State School Fund.]:
(i) from the Interest and Dividends Account created in Section 53A-16-101 ; and
(ii) in the amount of the sum of the following:
(A) the interest and dividends from the investment of monies in the permanent State
School Fund deposited to the Interest and Dividends Account in the immediately preceding year;
and
(B) interest accrued on monies in the Interest and Dividends Account in the immediately
preceding fiscal year.
(b) On and after July 1, 2003, the program shall be funded as provided in Subsection
(2)(a) up to a maximum of $12,000,000 each fiscal year.
(c) The Legislature shall annually allocate, through an appropriation to the State Board of
Education, a portion of School LAND Trust Program monies for the administration of the
program.
(3) (a) The State Board of Education shall allocate the monies referred to in Subsection
(2) annually for the fiscal year beginning July 1, 2000, and for each fiscal year thereafter as
follows:
(i) school districts shall receive 10% of the funds on an equal basis; and
(ii) the remaining 90% of the funds shall be distributed on a per student basis, with each
district receiving its allocation on the number of students in the district as compared to the state
total.
(b) Each school district shall distribute its allocation under Subsection (3)(a) to each
school within the district on an equal per student basis.

- 3 -

(c) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
board may make rules regarding the time and manner in which the student count shall be made for
allocation of the monies.
(4) In order to receive its allocation under Subsection (3), a school shall have established
a school community council under Section 53A-1a-108 .
(5) (a) The school community council or its subcommittee shall develop a program to use
its allocation under Subsection (3) to implement a component of the school's improvement plan,
including:
(i) the school's identified most critical academic needs;
(ii) a recommended course of action to meet the identified academic needs;
(iii) a specific listing of any programs, practices, materials, or equipment which the school
will need to implement a component of its school improvement plan to have a direct impact on the
instruction of students and result in measurable increased student performance; and
(iv) how the school intends to spend its allocation of funds under this section to enhance
or improve academic excellence at the school.
(b) The school may develop a multiyear program, but the program shall be presented and
approved by the school community council and the local school board of the district in which the
school is located annually and as a prerequisite to receiving program funds allocated under this
section.
(6) (a) Each school shall:
(i) implement the program as approved by the school community council and approved by
the local school board;
(ii) provide ongoing support for the council's or its subcommittee's program;
(iii) meet school board reporting requirements regarding financial and performance
accountability of the program; and
(iv) publicize to its patrons and the general public on how the funds it received under this
section were used to enhance or improve academic excellence at the school and implement a
component of the school's improvement plan, including the results of those efforts.

- 4 -

(b) (i) Each school through its council or its subcommittee shall prepare and present an
annual report of the program to its local school board at the end of the school year.
(ii) The report shall detail the use of program funds received by the school under this
section and an assessment of the results obtained from the use of the funds.
Section 3. Section 53A-17a-131.17 is amended to read:
53A-17a-131.17. State contribution for School LAND Trust Program.
(1) (a) Except as provided in Subsection (1)(b), there is appropriated $10,050,000 to the
State Board of Education as the state's contribution for the School LAND Trust Program for the
fiscal year beginning July 1, 2003.
(b) If the amount of money [in the Uniform School Fund described in Subsection
53A-16-101.5( 2)] prescribed for funding the School LAND Trust Program in Section
53A-16-101.5 is less than or greater than $10,050,000, the appropriation shall be equal to the
amount of money [in the Uniform School Fund described in Subsection 53A-16-101.5 (2)]
prescribed for funding the School LAND Trust Program in Section 53A-16-101.5 , up to a
maximum of $12,000,000.
(2) The State Board of Education shall distribute the money appropriated in Subsection
(1) in accordance with Section 53A-16-101.5 and rules established by the board in accordance
with Title 63, Chapter 46a, Utah Administrative Rulemaking Act.
Section 4. Section 53A-17a-149 is amended to read:
53A-17a-149. Funds for classroom supplies.
(1) If [the interest and dividends deposited in the Uniform School Fund from the
investment of] monies in the [Permanent State School Fund] Interest and Dividends Account
created in Section 53A-16-101 are sufficient to provide the maximum amount of funds to the
School LAND Trust Program as provided in Section 53A-16-101.5 , the balance of the [interest
and dividends,] account monies up to a maximum of $10,000,000, shall be appropriated by the
Legislature for teachers' classroom supplies.
(2) (a) Money appropriated for classroom supplies pursuant to Subsection (1) shall be
distributed to classroom teachers in school districts, the Schools for the Deaf and the Blind, the

- 5 -

Edith Bowen Laboratory School, and charter schools on the basis of the number of classroom
teachers in each school as compared to the total number of classroom teachers.
(b) Each teacher in grades kindergarten through six shall receive up to $225 and each
teacher in grades seven through 12 shall receive up to $175 from the appropriation.
(c) Teachers shall spend the money for school supplies, materials, or field trips under
rules adopted by the State Board of Education.
Section 5. Effective date.
This bill takes effect on July 1, 2004.

- 6 -