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S.B. 22






Chief Sponsor: Peter C. Knudson

House Sponsor: Sheryl L. Allen

             7      Cosponsors:
             8      Dan R. EastmanKaren HaleJohn W. Hickman              9     
             10      LONG TITLE
             11      General Description:
             12          This bill modifies provisions of the Department of Community and Culture related to
             13      the composition of the Utah Housing Corporation's board of trustees and the
             14      distribution formula for Community Services Block Grant funds received by the State
             15      Community Services Office.
             16      Highlighted Provisions:
             17          This bill:
             18          .    provides that one of the three ex officio trustees on the Utah Housing Corporation's
             19      board of trustees shall be the executive director of the Department of Community
             20      and Culture or the executive director's designee;
             21          .    modifies the distribution formula for federal Community Services Block Grant
             22      funds received by the State Community Services Office; and
             23          .    makes certain technical changes.
             24      Monies Appropriated in this Bill:
             25          None
             26      Other Special Clauses:
             27          None

             28      Utah Code Sections Affected:
             29      AMENDS:
             30          9-4-904, as last amended by Chapter 148, Laws of Utah 2005
             31          9-4-1405, as enacted by Chapter 286, Laws of Utah 2000
             33      Be it enacted by the Legislature of the state of Utah:
             34          Section 1. Section 9-4-904 is amended to read:
             35           9-4-904. Creation -- Trustees -- Terms -- Vacancies -- Chair -- Powers -- Quorum
             36      -- Per diem and expenses.
             37          (1) (a) There is created an independent body politic and corporate, constituting a public
             38      corporation, known as the "Utah Housing Corporation."
             39          (b) The corporation may also be known and do business as the:
             40          (i) Utah Housing Finance Association; and
             41          (ii) Utah Housing Finance Agency in connection with any contract entered into when
             42      that was the corporation's legal name.
             43          (c) Any other entity may not use the names described in Subsections (1)(a) and (b)
             44      without the express approval of the corporation.
             45          (2) The corporation shall be governed by a board of trustees composed of the following
             46      nine trustees:
             47          (a) three ex officio trustees who shall be:
             48          (i) the executive director of the Department of Community and Culture or the
             49      executive director's designee;
             50          (ii) the commissioner of the Department of Financial Institutions or [his] the
             51      commissioner's designee; and
             52          (iii) the state treasurer or [his] the treasurer's designee; and
             53          (b) six public trustees, being private citizens of the state, as follows:
             54          (i) two people representing the mortgage lending industry;
             55          (ii) two people representing the home building and real estate industry; and
             56          (iii) two people representing the public at large.
             57          (3) The governor shall:
             58          (a) appoint the six public trustees of the corporation with the consent of the Senate; and

             59          (b) ensure that:
             60          (i) the six public trustees are from different counties and are residents of Utah; and
             61          (ii) not more than three of the public trustees belong to the same political party.
             62          (4) (a) Except as required by Subsection (4)(b), the six public trustees shall be
             63      appointed to terms of office of four years each.
             64          (b) Notwithstanding the requirements of Subsection (4)(a), the governor shall, at the
             65      time of appointment or reappointment, adjust the length of terms to ensure that the terms of
             66      corporation trustees are staggered so that approximately half of the board is appointed every
             67      two years.
             68          (5) (a) Any of the six public trustees of the corporation may be removed from office for
             69      cause either by the governor or by an affirmative vote of any six trustees of the corporation.
             70          (b) When a vacancy occurs in the board of trustees for any reason, the replacement
             71      shall be appointed for the unexpired term.
             72          (c) Each public trustee shall hold office for the term of [his] appointment and until
             73      [his] the trustee's successor has been appointed and qualified.
             74          (d) Any public trustee is eligible for reappointment but may not serve more than two
             75      full consecutive terms.
             76          (6) (a) The governor shall select the chair of the corporation.
             77          (b) The trustees shall elect from among their number a vice chair and other officers
             78      they may determine.
             79          (7) (a) Five trustees of the corporation constitute a quorum for transaction of business.
             80          (b) An affirmative vote of at least five trustees is necessary for any action to be taken
             81      by the corporation.
             82          [(b)] (c) A vacancy in the board of trustees may not impair the right of a quorum to
             83      exercise all rights and perform all duties of the corporation.
             84          (8) (a) (i) Trustees who are not government employees may not receive compensation
             85      or benefits for their services, but may receive a reasonable per diem and reimbursement
             86      expenses incurred in the performance of the trustee's official duties at the rates established by
             87      the board of trustees.
             88          (ii) Trustees may decline to receive per diem and expenses for their service.
             89          (b) (i) State government officer and employee trustees who do not receive salary, per

             90      diem, or expenses from their agency for their service may receive per diem and expenses
             91      incurred in the performance of their official duties from the corporation at the rates established
             92      by the Division of Finance under Sections 63A-3-106 and 63A-3-107 .
             93          (ii) State government officer and employee trustees may decline to receive per diem
             94      and expenses for their service.
             95          Section 2. Section 9-4-1405 is amended to read:
             96           9-4-1405. Distribution of Community Services Block Grant funds.
             97          Community Services Block Grant funds received by the office shall be distributed as
             98      follows:
             99          (1) 90% to community action agencies;
             100          (2) 5% to:
             101          (a) organizations with a statewide focus to accomplish specific objectives that
             102      complement the Community Services Block Grant poverty programs; [and]
             103          (b) provide training and technical assistance for grantees of Community Block Grant
             104      funds; or
             105          (c) supplement anti-poverty projects; and
             106          (3) 5% to[: (a)] reimburse costs incurred by the office in administration of this part[;].
             107          [(b) provide training and technical assistance to grantees of Community Services Block
             108      Grant funds; or]
             109          [(c) supplement anti-poverty projects.]

Legislative Review Note
    as of 11-10-05 9:49 AM

Based on a limited legal review, this legislation has not been determined to have a high
probability of being held unconstitutional.

Office of Legislative Research and General Counsel

Interim Committee Note
    as of 12-21-05 11:00 AM

The Workforce Services and Community and Economic Development Interim Committee
recommended this bill.

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