H.B. 43 Enrolled

SCHOOL LAND TRUST PROGRAM FUNDING
AMENDMENTS
2005 GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Stephen H. Urquhart
Senate Sponsor: Thomas V. Hatch
Douglas C. Aagard
J. Stuart Adams
Sheryl L. Allen
Roger E. Barrus
Ralph Becker
Ron Bigelow
Jackie Biskupski
Duane E. Bourdeaux
DeMar Bud Bowman
Craig W. Buttars
D. Gregg Buxton
LaVar Christensen
David Clark
David N. Cox
Bradley M. Daw
Margaret Dayton
Brad L. Dee
Glenn A. Donnelson
Carl W. Duckworth
James A. Dunnigan
Julie FisherLorie D. Fowlke
Craig A. Frank
Kerry W. Gibson
Brent H. Goodfellow
James R. Gowans
Neil A. Hansen
Ann W. Hardy
Neal B. Hendrickson
David L. Hogue
Kory M. Holdaway
Gregory H. Hughes
Fred R. Hunsaker
Eric K. Hutchings
Patricia W. Jones
Brad King
Todd E. Kiser
Bradley G. Last
M. Susan Lawrence
David Litvack
Rebecca D. LockhartSteven R. Mascaro
Rosalind J. McGee
Ronda Rudd Menlove
Karen W. Morgan
Michael T. Morley
Carol Spackman Moss
Joseph G. Murray
Merlynn T. Newbold
Michael E. Noel
Curtis Oda
Patrick Painter
Paul Ray
Ross I. Romero
LaWanna Lou Shurtliff
Aaron Tilton
David Ure
Mark W. Walker
Peggy Wallace
Richard W. Wheeler
Scott L Wyatt
LONG TITLE
General Description:
This bill modifies the use of interest and dividends from the investment of monies in
the permanent State School Fund.
Highlighted Provisions:
This bill:
. increases the cap on the amount of interest and dividends earned on the permanent

State School Fund that may be appropriated for the School LAND Trust Program; and
. eliminates a requirement that a portion of interest and dividends earned on the
permanent State School Fund be used for teachers' classroom supplies.
Monies Appropriated in this Bill:
None
Other Special Clauses:
This bill takes effect on July 1, 2005.
Utah Code Sections Affected:
AMENDS:
53A-16-101, as last amended by Chapter 183, Laws of Utah 2004
53A-16-101.5, as last amended by Chapters 183 and 251, Laws of Utah 2004
53A-17a-131.17, as last amended by Chapters 183 and 257, Laws of Utah 2004
REPEALS:
53A-17a-149, as last amended by Chapters 183 and 257, Laws of Utah 2004

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:
(a) interest and dividends derived from the investment of monies in the permanent State
School Fund established by Utah Constitution, Article X, Section 5;
(b) money transferred to the fund pursuant to Title 67, Chapter 4a, Unclaimed Property
Act;
(c) revenue from the sale of forfeited property as provided by Title 24, Chapter 1, Utah
Uniform Forfeiture Procedures Act; and
(d) all other constitutional or legislative allocations to the fund, including revenues
received under Utah Constitution, Article XIII, Section 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 --
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:
(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] an amount equal to 2% of the funds provided for the
Minimum School Program, pursuant to Title 53A, Chapter 17a, Minimum School Program Act,
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 based 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.
(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) Except as provided in Subsection (7), 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.
(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.
(7) (a) The governing board of a charter school shall prepare a plan for the use of school
trust monies that includes the elements listed in Subsection (5).
(b) The plan shall be subject to approval by the entity that authorized the establishment
of the charter school.
(8) (a) A school community council and a governing board of a charter school may not
be required to:
(i) send a letter to legislators or other elected officials on the school's use of School

LAND Trust Program monies as a condition of receiving the monies; or
(ii) report to the State Board of Education or any local school board on whether any
letters were sent to legislators or other elected officials on the school's use of School LAND
Trust Program monies.
(b) Subsection (8)(a)(i) does not apply to the annual report to the local school board
required by Subsection (6)(b).
Section 3. Section 53A-17a-131.17 is amended to read:
53A-17a-131.17. State contribution for School LAND Trust Program.
(1) If the amount of money prescribed for funding the School LAND Trust Program in
Section 53A-16-101.5 is less than or greater than the money appropriated in Section
53A-17a-104 for the School LAND Trust Program, the appropriation shall be equal to the
amount of money prescribed for funding the School LAND Trust Program in Section
53A-16-101.5, up to a maximum of [$12,000,000] an amount equal to 2% of the funds provided
for the Minimum School Program, pursuant to Title 53A, Chapter 17a, Minimum School
Program Act.
(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. Repealer.
This bill repeals:
Section 53A-17a-149, Funds for classroom supplies.
Section 5. Effective date.
This bill takes effect on July 1, 2005.