First Substitute H.B. 114

This document includes House Floor Amendments incorporated into the bill on Wed, Feb 17, 2010 at 4:52 PM by lerror. --> This document includes Senate 3rd Reading Floor Amendments incorporated into the bill on Tue, Mar 2, 2010 at 3:26 PM by rday. -->

Representative Carl Wimmer proposes the following substitute bill:

1 DISCLOSURE OF DONATIONS TO HIGHER
2 EDUCATION INSTITUTIONS
3 2010 GENERAL SESSION
4 STATE OF UTAH
5 Chief Sponsor: Carl Wimmer
6 Senate Sponsor: Howard A. Stephenson
7
8 LONG TITLE
9 General Description:
10 This bill requires higher education institutions to disclose certain gifts.
11 Highlighted Provisions:
12 This bill:
13 . defines terms;
14 . requires a higher education institution to disclose to the Board of Regents certain
15 gifts received from a foreign person; and
16 . provides the method of disclosure.
17 Monies Appropriated in this Bill:
18 None
19 Other Special Clauses:
20 None
21 Utah Code Sections Affected:
22 ENACTS:
23 53B-1-201, Utah Code Annotated 1953
24 53B-1-202, Utah Code Annotated 1953
25

26 Be it enacted by the Legislature of the state of Utah:
27 Section 1. Section 53B-1-201 is enacted to read:
28 Part 2. Disclosure of Foreign Gifts
29 53B-1-201. Definitions.
30 As used in this part:
31 (1) "Conditional gift" means a gift as defined in Subsection (4) that is subject to
32 conditions:
33 (a) imposed, requested, or provided by a foreign government or foreign person; and
34 (b) that relate to:
35 (i) what kinds of teachers or students may benefit from the gift; or
36 (ii) a description of the subject matter to be taught with the support of the gift.
37 (2) "Foreign government" means a government other than the government of:
38 (a) the United States;
39 (b) a state within the United States;
40 (c) a territory or possession of the United States; or
41 (d) a political subdivision of the United States.
42 (3) "Foreign person" means:
43 (a) a foreign government defined in Subsection (2);
44 (b) an individual who is not a citizen or national of the United States or of a territory or
45 protectorate of the United States;
46 (c) a corporation, partnership, joint venture, proprietorship, trust, association, or other
47 entity that is created or organized under the laws of a foreign government or that has its
48 principal place of business located outside the United States;
49 (d) if known by the higher education institution, a corporation, partnership, joint
50 venture, proprietorship, trust, association, or other entity that is created or organized pursuant
51 to the laws of the United States or a state within the United States, if a majority of the stock or
52 other equity interest is directly or indirectly owned by, or which derives a majority of its
53 funding from:
54 (i) a foreign government;
55 (ii) an individual described in Subsection (3)(b); or
56 (iii) an entity described in Subsection (3)(c) or (d); or

57 (e) if known by the higher education institution, a committee or other group in which a
58 majority of the membership is composed of:
59 (i) a foreign government;
60 (ii) an individual described in Subsection (3)(b); or
61 (iii) an entity described in Subsection (3)(c) or (d).
62 (4) "Gift" means an endowment, scholarship, gift, donation, or grant of money or
63 property of any kind.
64 (5) "Higher education institution" means an institution in the state system of higher
65 education as defined in Section 53B-1-102 .
66 Section 2. Section 53B-1-202 is enacted to read:
67 53B-1-202. Disclosure of foreign gifts to higher education institutions.
68 (1) (a) S. [ On ] Except as provided in Subsection (1)(c), on .S or before July 31 of each
68a year, a higher education institution shall disclose to
69 the board, by filing a disclosure report described in Subsection (2), a gift received by the higher
70 education institution of $50,000 or more from a foreign person, considered alone or in
71 combination with all other gifts from the foreign person, during the period beginning July 1
72 and ending on June 30 immediately preceding the July 31 deadline.
73 (b) A higher education institution may rely on the following address of a foreign person
74 to determine the citizenship or nationality of the foreign person if the citizenship or nationality
75 is unknown:
76 (i) for a foreign person that is an individual, the principal residence; and
77 (ii) for a foreign person that is not an individual, the principal place of business.
77a S. (c) The $50,000 amount described in Subsection (1)(a) is increased to $250,000 if the gift,
77b considered alone or in combination with all other gifts, described in Subsection (1)(a) is from a
77c foreign person:
77d (i) with a principal residence or principal place of business located in the United
77e States; and
77f (ii) with a permanent resident status:
77g (A) under Section 245 of the Immigration and Nationality Act; and
77h (B) for 10 years or more. .S
78 (2) A disclosure report regarding all gifts described in Subsection (1) shall include:
79 (a) the amount of each gift described in Subsection (1);
80 (b) the date on which each gift described in Subsection (1) was received by the higher

81 education institution;

82 (c) the name of the foreign person making each gift described in Subsection (1);
83 (d) the aggregate amount of all gifts described in Subsection (1) from a foreign person
84 during the prior fiscal year of the higher education institution;
85 (e) for a conditional gift, a description of the conditions or restrictions related to the
86 conditional gift;
87 (f) for a conditional gift:

88 (i) for a foreign person that is an individual, if known, the country of citizenship or
89 principal residence of the individual; or
90 (ii) for a foreign person that is not an individual, if known, the country of incorporation
91 or place of business of the foreign person; and
92 (g) for a conditional gift that is a contract entered into between a higher education
93 institution and a foreign person:
94 (i) the amount;
95 (ii) the date;
96 (iii) a description of all conditions or restrictions; and
97 (iv) the name of the foreign person.
98 (3) A disclosure report required by this section is a public record open to inspection
99 and review during the higher education institution's business hours.
100 (4) At the request of the board, the attorney general may file a civil action to compel a
101 higher education institution to comply with the requirements of this section.
102 (5) On or before the November interim meeting of each year, the board shall report to
103 the Education Interim Committee and provide a summary of all gifts S. [ and conditional gifts H.
103a as ] .S
103a described in Subsection (1) .H
104 received by higher education institutions during the prior fiscal year.
105 (6) The board shall make rules for the administration of this section in accordance with
106 Title 63G, Chapter 3, Utah Administrative Rulemaking Act.