H.B. 114 Enrolled

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
45 or 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) Except as provided in Subsection (1)(c), on or before July 31 of each year, a
69 higher education institution shall disclose to the board, by filing a disclosure report described
70 in Subsection (2), a gift received by the higher education institution of $50,000 or more from a
71 foreign person, considered alone or in combination with all other gifts from the foreign person,
72 during the period beginning July 1 and ending on June 30 immediately preceding the July 31
73 deadline.
74 (b) A higher education institution may rely on the following address of a foreign
75 person to determine the citizenship or nationality of the foreign person if the citizenship or
76 nationality is unknown:
77 (i) for a foreign person that is an individual, the principal residence; and
78 (ii) for a foreign person that is not an individual, the principal place of business.
79 (c) The $50,000 amount described in Subsection (1)(a) is increased to $250,000 if the
80 gift, considered alone or in combination with all other gifts, described in Subsection (1)(a) is
81 from a foreign person:
82 (i) with a principal residence or principal place of business located in the United
83 States; and
84 (ii) with a permanent resident status:
85 (A) under Section 245 of the Immigration and Nationality Act; and

86 (B) for 10 years or more.
87 (2) A disclosure report regarding all gifts described in Subsection (1) shall include:
88 (a) the amount of each gift described in Subsection (1);
89 (b) the date on which each gift described in Subsection (1) was received by the higher
90 education institution;
91 (c) the name of the foreign person making each gift described in Subsection (1);
92 (d) the aggregate amount of all gifts described in Subsection (1) from a foreign person
93 during the prior fiscal year of the higher education institution;
94 (e) for a conditional gift, a description of the conditions or restrictions related to the
95 conditional gift;
96 (f) for a conditional gift:
97 (i) for a foreign person that is an individual, if known, the country of citizenship or
98 principal residence of the individual; or
99 (ii) for a foreign person that is not an individual, if known, the country of
100 incorporation or place of business of the foreign person; and
101 (g) for a conditional gift that is a contract entered into between a higher education
102 institution and a foreign person:
103 (i) the amount;
104 (ii) the date;
105 (iii) a description of all conditions or restrictions; and
106 (iv) the name of the foreign person.
107 (3) A disclosure report required by this section is a public record open to inspection
108 and review during the higher education institution's business hours.
109 (4) At the request of the board, the attorney general may file a civil action to compel a
110 higher education institution to comply with the requirements of this section.
111 (5) On or before the November interim meeting of each year, the board shall report to
112 the Education Interim Committee and provide a summary of all gifts described in Subsection
113 (1) received by higher education institutions during the prior fiscal year.

114 (6) The board shall make rules for the administration of this section in accordance
115 with Title 63G, Chapter 3, Utah Administrative Rulemaking Act.