H.B. 112

1

PUBLIC EDUCATION FOUNDATION
2 AMENDMENTS
3 2008 GENERAL SESSION
4 STATE OF UTAH
5 Chief Sponsor: Sheryl L. Allen
6 Senate Sponsor: Dan R. Eastman
7
8 LONG TITLE
9 General Description:
10 This bill modifies provisions of the State System of Public Education relating to the
11 financial accountability of school district foundations.
12 Highlighted Provisions:
13 This bill:
14 . requires school district foundations to report certain financial information to
15 schools;
16 . requires a local school board that establishes a foundation to require the foundation
17 to follow certain accounting, purchasing, and check issuance policies; and
18 . makes technical corrections.
19 Monies Appropriated in this Bill:
20 None
21 Other Special Clauses:
22 None
23 Utah Code Sections Affected:
24 AMENDS:
25 53A-4-205, as last amended by Laws of Utah 1999, Chapter 225
26
27 Be it enacted by the Legislature of the state of Utah:

28 Section 1. Section 53A-4-205 is amended to read:
29 53A-4-205. Establishment of public education foundations -- Powers and duties --
30 Tax exempt status.
31 (1) State and local school boards may establish foundations to:
32 (a) assist in the development and implementation of the programs authorized under this
33 part to promote educational excellence; and
34 (b) assist in the accomplishment of other education-related objectives.
35 (2) A foundation established under Subsection (1):
36 (a) may solicit and receive contributions from private enterprises for the purpose of this
37 part;
38 (b) shall comply with Title 51, Chapter 7, State Money Management Act, and rules
39 made under the act;
40 (c) has no power or authority to incur contractual obligations or liabilities that
41 constitute a claim against public funds except as provided in this section;
42 (d) may not exercise executive, administrative, or rulemaking authority over the
43 programs referred to in this part, except to the extent specifically authorized by the responsible
44 school board;
45 (e) is exempt from all taxes levied by the state or any of its political subdivisions with
46 respect to activities conducted under this part; [and]
47 (f) may participate in the Risk Management Fund under Section 63A-4-204 [.];
48 (g) shall provide a school with information detailing transactions and balances of funds
49 managed for that school; and
50 (h) shall, for foundation accounts from which monies are distributed to schools,
51 provide all the schools within a school district information that:
52 (i) details account transactions; and
53 (ii) shows available balances in the accounts.
54 (3) A local school board that establishes a foundation under Subsection (1) shall:
55 (a) require the foundation to:
56 (i) use the school district's accounting system; or
57 (ii) follow written accounting policies established by the board;
58 (b) review and approve the foundation's accounting, purchasing, and check issuance

59 policies to ensure that there is an adequate separation of responsibilities; and
60 (c) approve procedures to verify that issued foundation payments have been properly
61 approved.




Legislative Review Note
as of 1-3-08 10:58 AM

Office of Legislative Research and General Counsel