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7 LONG TITLE
8 General Description:
9 This bill amends provisions related to school and institutional trust fund management,
10 advocacy, and distribution of funds.
11 Highlighted Provisions:
12 This bill:
13 ▸ defines terms;
14 ▸ amends provisions related to board meetings and funding the office operations of
15 the School and Institutional Trust Fund Office;
16 ▸ amends provisions related to funding the office operations of the Land Trusts
17 Protection and Advocacy Office;
18 ▸ amends provisions related to the Trust Distribution Account;
19 ▸ amends provisions related to the School LAND Trust Program;
20 ▸ repeals outdated provisions; and
21 ▸ makes technical and conforming changes.
22 Money Appropriated in this Bill:
23 None
24 Other Special Clauses:
25 None
26 Utah Code Sections Affected:
27 AMENDS:
28 53D-1-203, as enacted by Laws of Utah 2014, Chapter 426
29 53D-1-304, as last amended by Laws of Utah 2018, Chapter 448
30 53D-2-204, as enacted by Laws of Utah 2018, Chapter 448
31 53F-2-404, as last amended by Laws of Utah 2018, Chapter 448 and renumbered and
32 amended by Laws of Utah 2018, Chapter 2
33 53F-9-201, as last amended by Laws of Utah 2018, Chapter 448 and renumbered and
34 amended by Laws of Utah 2018, Chapter 2
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36 Be it enacted by the Legislature of the state of Utah:
37 Section 1. Section 53D-1-203 is amended to read:
38 53D-1-203. Funding of office operations.
39 (1) As used in this section, "trust fund earnings" includes any of the following that is in
40 excess of the trust fund corpus:
41 (a) realized or unrealized gains;
42 (b) interest;
43 (c) dividends;
44 (d) other income; or
45 (e) other sources of revenue.
46 [
47 Trust Fund Management Account.
48 [
49 Subsection [
50 [
51 the account an amount of money from the [
52 the annual appropriation that the Legislature makes to the office, to pay for the office's
53 operating costs.
54 [
55 costs.
56 (b) If the amount of money deposited into the account under Subsection [
57 fiscal year exceeds the amount required by the office during that fiscal year to fund [
58 office's operations, the office [
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61 deposited into the account under Subsection (4) by the amount of the unspent appropriation.
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63 deduct from trust fund earnings:
64 (i) the cost for any audit, risk management, consulting, equipment, legal[
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66 (ii) manager fees incurred in managing the trust fund assets.
67 (b) The costs and fees described in Subsection [
68 addition to the office's operating costs that are paid from the account.
69 Section 2. Section 53D-1-304 is amended to read:
70 53D-1-304. Board meetings.
71 (1) The board shall hold at least six meetings per year to conduct business.
72 (2) The board chair or two board members:
73 (a) may call a board meeting; and
74 (b) if calling a board meeting, shall provide as much advance notice as is reasonable
75 under the circumstances to all board members, the director, and the advocacy office director.
76 (3) Any board member may place an item on a board meeting agenda.
77 (4) The board shall [
78 meetings.
79 (5) The board may establish an attendance policy to govern the attendance of board
80 members at board meetings.
81 Section 3. Section 53D-2-204 is amended to read:
82 53D-2-204. Land Trusts Protection and Advocacy Account -- Funding of
83 advocacy office operations.
84 (1) As used in this section:
85 (a) "Account" means the Land Trusts Protection and Advocacy Account created in this
86 section.
87 (b) "School and Institutional Trust Fund Office director" or "SITFO director" means
88 the director of the School and Institutional Trust Fund Office, appointed under Section
89 53D-1-401.
90 (c) "Trust fund" means the same as that term is defined in Section 53D-1-102.
91 (d) "Trust fund earnings" means the same as that term is defined in Section 53D-1-203.
92 (2) There is created an enterprise fund known as the Land Trusts Protection and
93 Advocacy Account.
94 (3) The account is funded by money deposited into the account as provided in
95 Subsection (4).
96 (4) (a) [
97 director shall deposit into the account a total amount of money, taken proportionately from
98 trust fund [
99 beneficiaries, that is equal to the annual appropriation that the Legislature makes to the
100 advocacy office.
101 (b) The advocacy office may use money in the account to pay for the advocacy office's
102 operating costs.
103 (c) If the amount of money deposited into the account under Subsection (4)(a) in any
104 fiscal year exceeds the amount required by the advocacy office during that fiscal year to fund
105 advocacy office operations, the SITFO director [
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108 deposited into the account under Subsection (4)(a) by the amount of the unspent appropriation.
109 Section 4. Section 53F-2-404 is amended to read:
110 53F-2-404. School LAND Trust Program distribution of funds.
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119 (1) (a) By appropriation the Legislature shall fund the School LAND Trust Program,
120 established in Section 53G-7-1206, on or before July 31 of each fiscal year:
121 (i) from the Trust Distribution Account, created in Section 53F-9-201; and
122 (ii) except as provided in Subsection (1)(b), in the total amount of the quarterly
123 deposits made to the Trust Distribution Account for the School LAND Trust Program during
124 the prior fiscal year.
125 (b) [
126 amount described in Subsection (1)(a)(ii) may not exceed an amount equal to 3% of the funds
127 provided for the Minimum School Program, [
128 fiscal year.
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132 (c) Independently from the appropriation for the School LAND Trust Program
133 described in Subsection (1)(a), the Legislature shall make an annual appropriation to the State
134 Board of Education from the Trust Distribution Account, created in Section 53F-9-201, for the
135 administration of the School LAND Trust Program.
136 (d) Any unused balance remaining from an amount appropriated under Subsection
137 (1)(c) shall be deposited [
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139 (2) (a) The State Board of Education shall allocate the money referred to in Subsection
140 (1)(a) annually as follows:
141 (i) the Utah Schools for the Deaf and the Blind shall receive funding equal to the
142 product of:
143 (A) enrollment on October 1 in the prior year at the Utah Schools for the Deaf and the
144 Blind divided by enrollment on October 1 in the prior year in public schools statewide; and
145 (B) the total amount available for distribution under Subsection (1)(a);
146 (ii) charter schools shall receive funding equal to the product of:
147 (A) charter school enrollment on October 1 in the prior year, divided by enrollment on
148 October 1 in the prior year in public schools statewide; and
149 (B) the total amount available for distribution under Subsection (1)(a); and
150 (iii) of the funds available for distribution under Subsection (1)(a) after the allocation
151 of funds for the Utah Schools for the Deaf and the Blind and charter schools:
152 (A) school districts shall receive 10% of the funds on an equal basis; and
153 (B) the remaining 90% of the funds shall be distributed to school districts on a per
154 student basis.
155 (b) (i) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
156 the State Board of Education shall make rules specifying a formula to distribute the amount
157 allocated under Subsection (2)(a)(ii) to charter schools.
158 (ii) In making rules under Subsection (2)(b)(i), the State Board of Education shall:
159 (A) consult with the State Charter School Board; and
160 (B) ensure that the rules include a provision that allows a charter school in the charter
161 school's first year of operations to receive funding based on projected enrollment, to be
162 adjusted in future years based on actual enrollment.
163 (c) A school district shall distribute its allocation under Subsection (2)(a)(iii) to each
164 school within the school district on an equal per student basis.
165 (d) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
166 State Board of Education may make rules regarding the time and manner in which the student
167 count shall be made for allocation of the money under Subsection (2)(a)(iii).
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176 Section 5. Section 53F-9-201 is amended to read:
177 53F-9-201. Uniform School Fund -- Contents -- Trust Distribution Account.
178 (1) As used in this section:
179 (a) "Annual distribution calculation" means, for a given fiscal year, the average of:
180 (i) 4% of the average market value of the State School Fund for that fiscal year; and
181 (ii) the distribution amount for the prior fiscal year, multiplied by the sum of:
182 (A) one;
183 (B) the percent change in student enrollment from the school year two years prior to
184 the prior school year; and
185 (C) the actual total percent change of the consumer price index during the last 12
186 months as measured in June of the prior fiscal year.
187 (b) "Average market value of the State School Fund" means the results of a calculation
188 completed by the SITFO director each fiscal year that averages the value of the State School
189 Fund for the past 12 consecutive quarters ending in the prior fiscal year.
190 (c) "Consumer price index" means the Consumer Price Index for All Urban
191 Consumers: All Items Less Food & Energy, as published by the Bureau of Labor Statistics of
192 the United States Department of Labor.
193 (d) "SITFO director" means the director of the School and Institutional Trust Fund
194 Office appointed under Section 53D-1-401.
195 (e) "State School Fund investment earnings distribution amount" or "distribution
196 amount" means, for a fiscal year, the lesser of:
197 (i) the annual distribution calculation; or
198 (ii) 4% of the average market value of the State School Fund.
199 [
200 established by Utah Constitution, Article X, Section 5, consists of:
201 (a) distributions derived from the investment of money in the permanent State School
202 Fund established by Utah Constitution, Article X, Section 5;
203 (b) money transferred to the fund pursuant to Title 67, Chapter 4a, Revised Uniform
204 Unclaimed Property Act; and
205 (c) all other constitutional or legislative allocations to the fund, including revenues
206 received by donation.
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208 known as the Trust Distribution Account.
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218 (b) The Trust Distribution Account consists of:
219 (i) in accordance with Subsection (4), quarterly deposits of the State School Fund
220 investment earnings distribution amount from the prior fiscal year;
221 (ii) all interest earned on the Trust Distribution Account in the prior fiscal year; and
222 (iii) any unused appropriation for the administration of the School LAND Trust
223 Program, as described in Subsection 53F-2-404(1)(c).
224 (4) If, at the end of a fiscal year, the Trust Distribution Account has a balance
225 remaining after subtracting the appropriation amount described in Subsection 53F-2-404(1)(a)
226 for the next fiscal year, the SITFO director shall, during the next fiscal year, apply the amount
227 of the remaining balance from the prior fiscal year toward the current fiscal year's distribution
228 amount by reducing a quarterly deposit to the Trust Distribution Account by the amount of the
229 remaining balance from the prior fiscal year.
230 (5) On or before October 1 of each year, the SITFO director shall:
231 (a) in accordance with this section, determine the distribution amount for the following
232 fiscal year; and
233 (b) report the amount described in Subsection (5)(a) as the funding amount, described
234 in Subsection 53F-2-404(1)(c), for the School LAND Trust Program, to:
235 (i) the State Treasurer;
236 (ii) the Legislative Fiscal Analyst;
237 (iii) the Division of Finance;
238 (iv) the director of the Land Trusts Protection and Advocacy Office, appointed under
239 Section 53D-2-203;
240 (v) the School and Institutional Trust Lands Administration created in Section
241 53C-1-201;
242 (vi) the State Board of Education; and
243 (vii) the Governor's Office of Management and Budget.
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245 53D-1-301 shall:
246 (a) annually review [
247 amount; and
248 (b) make recommendations, if necessary, to the Legislature for changes to the formula
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