H.B. 386 Enrolled

             1     

REPEAL OF UTAH HISTORY ENDOWMENT FUND

             2     
2014 GENERAL SESSION

             3     
STATE OF UTAH

             4     
Chief Sponsor: Melvin R. Brown

             5     
Senate Sponsor: Lyle W. Hillyard

             6     
             7      LONG TITLE
             8      General Description:
             9          This bill modifies provisions related to the creation of endowment funds by nonprofit
             10      history organizations.
             11      Highlighted Provisions:
             12          This bill:
             13          .    repeals the Utah History Endowment Fund; and
             14          .    makes technical changes.
             15      Money Appropriated in this Bill:
             16          None
             17      Other Special Clauses:
             18          None
             19      Utah Code Sections Affected:
             20      AMENDS:
             21           9-8-701 , as enacted by Laws of Utah 1991, Chapter 121
             22           9-8-703 , as enacted by Laws of Utah 1991, Chapter 121
             23           9-8-704 , as last amended by Laws of Utah 2008, Chapter 382
             24           9-8-705 , as last amended by Laws of Utah 2010, Chapter 324
             25           9-8-707 , as last amended by Laws of Utah 2011, Chapter 342
             26           9-8-708 , as enacted by Laws of Utah 1991, Chapter 121
             27      REPEALS:
             28           9-8-702 , as last amended by Laws of Utah 2013, Chapter 400
             29           9-8-706 , as last amended by Laws of Utah 2011, Chapter 342


             30     
             31      Be it enacted by the Legislature of the state of Utah:
             32          Section 1. Section 9-8-701 is amended to read:
             33     
Part 7. Endowment Funds for History Organizations

             34           9-8-701. Definitions.
             35          As used in this part:
             36          (1) "Board" means the Board of State History.
             37          (2) "Division" means the Division of State History.
             38          (3) "Endowment fund" means any history endowment fund created under this part by a
             39      qualifying organization.
             40          (4) "Qualifying organization" means any Utah nonprofit history organization or local
             41      government that qualifies under this chapter to create an endowment fund, receive state money
             42      into the endowment fund, match state money deposited into the endowment fund, and expend
             43      interest earned on the endowment fund.
             44          [(5) "State fund" means the Utah History Endowment Fund created under Section
             45      9-8-702 .]
             46          Section 2. Section 9-8-703 is amended to read:
             47           9-8-703. History organization endowment funds.
             48          (1) [Any] (a) A qualifying organization may create an endowment fund into which
             49      there may be deposited money from [the state fund] funds made available for that purpose.
             50          (b) The principal of each endowment fund may not be expended by the qualifying
             51      organization and shall be held in perpetuity solely by the qualifying organization or by the
             52      Division of Finance on behalf of the qualifying organization.
             53          (c) Only interest income earned on the amount in each endowment fund may be
             54      expended by the qualifying organization.
             55          (d) The principal of each endowment fund shall be invested in accordance with Title
             56      51, Chapter 7, State Money Management Act [of 1974].
             57          (2) [Each] (a) An endowment fund shall be administered in accordance with generally


             58      accepted accounting principles by professional endowment management personnel.
             59          (b) If no professional endowment management personnel is available to the qualifying
             60      organization, [it] the qualifying organization shall place [its] the endowment fund in a state
             61      trust and agency fund administered by the Division of Finance[, which shall allocate interest
             62      income to the qualifying organization annually].
             63          (3) If an endowment fund is administered by the Division of Finance:
             64          (a) the Division of Finance shall allocate interest income to the qualifying organization
             65      annually; and
             66          (b) the costs for [this] the administration shall be deducted from the interest income
             67      before allocations of interest income may be made to the qualifying organization by the
             68      Division of Finance.
             69          Section 3. Section 9-8-704 is amended to read:
             70           9-8-704. Division duties.
             71          The division shall, according to policy established by the board:
             72          (1) allocate money from [the state fund] funds made available for that purpose to the
             73      endowment fund created by a qualifying organization under Section 9-8-703 ;
             74          (2) determine the eligibility of each qualifying organization to receive money from [the
             75      state fund] funds made available for that purpose into the endowment fund of the qualifying
             76      organization;
             77          (3) determine the matching amount each qualifying organization must raise in order to
             78      qualify to receive money from [the state fund] funds made available for that purpose ;
             79          (4) establish a date by which each qualifying organization must provide [its] the
             80      qualifying organization's matching funds;
             81          (5) verify that matching funds have been provided by each qualifying organization by
             82      the date determined in Subsection (4); and
             83          (6) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
             84      [establish criteria by rule not otherwise prescribed in this chapter] make rules establishing
             85      criteria for determining the eligibility of qualifying organizations to receive money from [the


             86      state fund] funds made available for that purpose.
             87          Section 4. Section 9-8-705 is amended to read:
             88           9-8-705. Eligibility requirements of qualifying history organizations -- Allocation
             89      limitations -- Matching requirements.
             90          (1) [Any] A qualifying organization may apply to receive money from [the state fund]
             91      funds made available for that purpose to be deposited [in] into an endowment fund [it has]
             92      created under Section 9-8-703 if the qualifying organization has:
             93          (a) [if it has] received a grant from the division during one of the three years
             94      immediately before making application for [state fund] money under this Subsection (1); or
             95          (b) [if it has] not received a grant from the division within the past three years, [it] the
             96      qualifying organization may receive a grant upon approval by the division according to policy
             97      of the board.
             98          (2) (a) The maximum amount that may be allocated to each qualifying organization
             99      from [the state fund] funds made available for that purpose shall be determined by the division
             100      in a format to be developed in consultation with the board.
             101          (b) The minimum amount that may be allocated to each qualifying organization from
             102      [the state fund] funds made available for that purpose is $2,500.
             103          (3) (a) After the division determines that a qualifying organization is eligible to receive
             104      money from [the state fund] funds made available for that purpose and before any money is
             105      allocated to the qualifying organization from [the state fund] available funds, the qualifying
             106      organization shall match the amount qualified for by money raised and designated exclusively
             107      for that purpose.
             108          (b) State money and in-kind contributions may not be used to match money from [the
             109      state fund] funds made available for that purpose.
             110          (4) Endowment match money shall be based on a sliding scale as follows:
             111          (a) amounts requested up to $20,000 shall be matched one-to-one;
             112          (b) any additional amount requested that makes the aggregate amount requested exceed
             113      $20,000 but not exceed $50,000 shall be matched two-to-one; and


             114          (c) any additional amount requested that makes the aggregate amount requested exceed
             115      $50,000 shall be matched three-to-one.
             116          (5) (a) Qualifying organizations shall raise the matching amount by a date determined
             117      by the board.
             118          (b) (i) Money from [the state fund] funds made available for that purpose shall be
             119      released to the qualifying organization [only] upon verification by the division that the
             120      matching money has been received on or before the date determined under Subsection (5)(a).
             121          (ii) Verification of matching funds shall be made by a certified public accountant.
             122          (c) Money from [the state fund] funds made available for that purpose shall be released
             123      to qualifying organizations with professional endowment management in increments [not less
             124      than] of at least $2,500 as audited confirmation of matching funds is received by the board.
             125          (d) Money from [the state fund] funds made available for that purpose shall be granted
             126      to each qualifying organization on the basis of the matching funds [it] the qualifying
             127      organization has raised by the date determined under Subsection (5)(a).
             128          Section 5. Section 9-8-707 is amended to read:
             129           9-8-707. Spending restrictions -- Return of endowment.
             130          (1) A qualifying organization[, once it] that has received [its] endowment money from
             131      [the state fund,] funds made available for that purpose:
             132          (a) may not expend [any of] the money or the required matching money in [its] the
             133      endowment fund[, but]; and
             134          (b) may expend [only] the interest income earned on the money in [its] the endowment
             135      fund.
             136          (2) If a qualifying organization expends [any amount of the endowment money
             137      received from the state fund or any amount of the required matching money] money in
             138      violation of Subsection (1), the qualifying organization shall return the amount [it received
             139      from the state fund. The division shall reallocate any such returned money to qualifying
             140      organizations in the manner as provided in Section 9-8-706 ] of money allocated by the division
             141      under this part to the Division of Finance.


             142          Section 6. Section 9-8-708 is amended to read:
             143           9-8-708. Federal match.
             144          [The creation of the state fund and the use of its money] Funds allocated by the division
             145      under this part to enable qualifying organizations to create their own endowment funds may be
             146      construed as a state match for any history funding from the federal government that may be
             147      provided.
             148          Section 7. Repealer.
             149          This bill repeals:
             150          Section 9-8-702 , Utah History Endowment Fund.
             151          Section 9-8-706 , Unallocated money.


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