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ARTS AND CULTURAL EDUCATION SPENDING

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2016 GENERAL SESSION

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STATE OF UTAH

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Chief Sponsor: Jim Dabakis

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House Sponsor: ____________

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7     LONG TITLE
8     General Description:
9          This bill requires the use of certain funds for arts and cultural education.
10     Highlighted Provisions:
11          This bill:
12          ▸     defines terms; and
13          ▸     requires a school district, charter school, and institution of higher education to
14     spend a certain amount of state funds on arts and cultural education.
15     Money Appropriated in this Bill:
16          None
17     Other Special Clauses:
18          None
19     Utah Code Sections Affected:
20     AMENDS:
21          53B-7-101, as last amended by Laws of Utah 2015, Chapter 361
22     ENACTS:
23          53A-17a-173, Utah Code Annotated 1953
24     

25     Be it enacted by the Legislature of the state of Utah:
26          Section 1. Section 53A-17a-173 is enacted to read:
27          53A-17a-173. Use of state funds for arts and cultural education.

28          (1) As used in this section:
29          (a) "Arts and cultural" means visual arts, film, performing arts, sculpture, literature,
30     music, theater, dance, digital arts, video-game arts, cultural vitality, archaeology, anthropology,
31     and history.
32          (b) "Basic program" does not include:
33          (i) weighted pupil units for students with disabilities described in Section
34     53A-17a-111;
35          (ii) weighted pupil units for career and technical education described in Sections
36     53A-17a-113 and 53A-17a-116; or
37          (iii) the appropriation for class size reduction described in Section 53A-17a-124.5.
38          (2) A school district shall spend 3% of the following funds on arts and cultural
39     education:
40          (a) the state contribution to the school district for the basic program; and
41          (b) the state contribution to the school district for a guarantee program described in
42     Section 53A-17a-133 or 53A-17a-164.
43          (3) A charter school shall spend 3% of the following funds on arts and cultural
44     education:
45          (a) the state contribution to the charter school for the basic program; and
46          (b) the state and local contributions to the charter school, as described in Subsection
47     53A-1a-513(4), less expenditures for capital facilities.
48          (4) A school district or charter school shall account for arts and cultural education
49     expenditures in an accounting report submitted to the state auditor in accordance with Section
50     53A-3-404.
51          Section 2. Section 53B-7-101 is amended to read:
52          53B-7-101. Combined requests for appropriations -- Board review of operating
53     budgets -- Submission of budgets -- Recommendations -- Hearing request --
54     Appropriation formulas -- Allocations -- Dedicated credits -- Financial affairs.
55          (1) As used in this section:
56          (a) "Arts and cultural" means visual arts, film, performing arts, sculpture, literature,
57     music, theater, dance, digital arts, video-game arts, cultural vitality, archaeology, anthropology,
58     and history.

59          [(a)] (b) (i) "Higher education institution" or "institution" means an institution of
60     higher education listed in Section 53B-1-102.
61          (ii) "Higher education institution" or "institution" does not include the Utah College of
62     Applied Technology.
63          [(b)] (c) "Research university" means the University of Utah or Utah State University.
64          (2) (a) The board shall recommend a combined appropriation for the operating budgets
65     of higher education institutions for inclusion in a state appropriations act.
66          (b) The board's combined budget recommendation shall include:
67          (i) employee compensation;
68          (ii) mandatory costs, including building operations and maintenance, fuel, and power;
69          (iii) mission based funding described in Subsection (3);
70          (iv) performance funding described in Subsection (4);
71          (v) statewide and institutional priorities, including scholarships, financial aid, [and]
72     technology infrastructure, and arts and cultural education; and
73          (vi) unfunded historic growth.
74          (c) The board's recommendations shall be available for presentation to the governor
75     and to the Legislature at least 30 days prior to the convening of the Legislature, and shall
76     include schedules showing the recommended amounts for each institution, including separately
77     funded programs or divisions.
78          (d) The recommended appropriations shall be determined by the board only after it has
79     reviewed the proposed institutional operating budgets, and has consulted with the various
80     institutions and board staff in order to make appropriate adjustments.
81          (3) (a) The board shall establish mission based funding.
82          (b) Mission based funding shall include:
83          (i) enrollment growth; and
84          (ii) up to three strategic priorities.
85          (c) The strategic priorities described in Subsection (3)(b)(ii) shall be:
86          (i) approved by the board; and
87          (ii) designed to improve the availability, effectiveness, or quality of higher education in
88     the state.
89          (d) Concurrent with recommending mission based funding, the board shall also

90     recommend to the Legislature ways to address funding any inequities for institutions as
91     compared to institutions with similar missions.
92          (4) (a) The board shall establish performance funding.
93          (b) Performance funding shall include metrics approved by the board, including:
94          (i) degrees and certificates granted;
95          (ii) services provided to traditionally underserved populations;
96          (iii) responsiveness to workforce needs;
97          (iv) institutional efficiency; and
98          (v) for a research university, graduate research metrics.
99          (c) The board shall:
100          (i) award performance funding appropriated by the Legislature to institutions based on
101     the institution's success in meeting the metrics described in Subsection (4)(b); and
102          (ii) reallocate funding that is not awarded to an institution under Subsection (4)(c)(i)
103     for distribution to other institutions that meet the metrics described in Subsection (4)(b).
104          (5) (a) Institutional operating budgets shall be submitted to the board at least 90 days
105     prior to the convening of the Legislature in accordance with procedures established by the
106     board.
107          (b) Funding requests pertaining to capital facilities and land purchases shall be
108     submitted in accordance with procedures prescribed by the State Building Board.
109          (6) (a) The budget recommendations of the board shall be accompanied by full
110     explanations and supporting data.
111          (b) The appropriations recommended by the board shall be made with the dual
112     objective of:
113          (i) justifying for higher educational institutions appropriations consistent with their
114     needs, and consistent with the financial ability of the state; and
115          (ii) determining an equitable distribution of funds among the respective institutions in
116     accordance with the aims and objectives of the statewide master plan for higher education.
117          (7) (a) The board shall request a hearing with the governor on the recommended
118     appropriations.
119          (b) After the governor delivers his budget message to the Legislature, the board shall
120     request hearings on the recommended appropriations with the appropriate committees of the

121     Legislature.
122          (c) If either the total amount of the state appropriations or its allocation among the
123     institutions as proposed by the Legislature or its committees is substantially different from the
124     recommendations of the board, the board may request further hearings with the Legislature or
125     its appropriate committees to reconsider both the total amount and the allocation.
126          (8) The board may devise, establish, periodically review, and revise formulas for its
127     use and for the use of the governor and the committees of the Legislature in making
128     appropriation recommendations.
129          (9) (a) The board shall recommend to each session of the Legislature the minimum
130     tuitions, resident and nonresident, for each institution which it considers necessary to
131     implement the budget recommendations.
132          (b) The board may fix the tuition, fees, and charges for each institution at levels it finds
133     necessary to meet budget requirements.
134          (10) (a) Notwithstanding Subsection (11), an institution shall spend 3% of the money
135     allocated by legislative appropriation for education and general expenses on arts and cultural
136     education.
137          (b) An institution shall account for arts and cultural education expenditures in an
138     accounting report submitted to the state auditor in accordance with Section 51-2a-201.
139          [(10)] (11) (a) Money allocated to each institution by legislative appropriation may be
140     budgeted in accordance with institutional work programs approved by the board, provided that
141     the expenditures funded by appropriations for each institution are kept within the
142     appropriations for the applicable period.
143          (b) A president of an institution shall:
144          (i) establish initiatives for the president's institution each year that are:
145          (A) aligned with the strategic priorities described in Subsection (3); and
146          (B) consistent with the institution's mission and role; and
147          (ii) allocate the institution's mission based funding to the initiatives.
148          [(11)] (12) The dedicated credits, including revenues derived from tuitions, fees,
149     federal grants, and proceeds from sales received by the institutions are appropriated to the
150     respective institutions and used in accordance with institutional work programs.
151          [(12)] (13) Each institution may do its own purchasing, issue its own payrolls, and

152     handle its own financial affairs under the general supervision of the board.
153          [(13)] (14) (a) If the Legislature appropriates money in accordance with this section, it
154     shall be distributed to the board and higher education institutions to fund the items described in
155     Subsection (2)(b).
156          (b) During each general session of the Legislature following a fiscal year in which the
157     Legislature provides an appropriation for mission based funding or performance funding, the
158     board and institutions shall report to the Legislature's Higher Education Appropriations
159     Subcommittee on the use of the previous year's mission based funding and performance
160     funding, including performance outcomes relating to the strategic initiatives approved by the
161     board.






Legislative Review Note
Office of Legislative Research and General Counsel