Rep. Norm Thurston — Voting Record

Bill

Number

H.B. 402 (2017GS)

Sponsor

Rep. Moss, J.

Final action

House/ filed 3/9/2017

Outcome

Failed / filed without passage

Summary

What it does

• This bill:
• amends the contents of the Trust Distribution Account within the Uniform School Fund;
• amends provisions related to the funding of the School LAND Trust Program;
• amends language related to distributions from the associated permanent funds created from lands granted in Sections 8 and 12 of the Utah Enabling Act; and
• makes technical corrections.

Every vote on this bill

Bill text

SCHOOL TRUST FUND AMENDMENTS
GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Jefferson Moss
Senate Sponsor: 
Ann Millner
LONG TITLE
General Description:
This bill amends provisions related to school trust funds.
Highlighted Provisions:
This bill:
▸ amends the contents of the Trust Distribution Account within the Uniform School
Fund;
▸ amends provisions related to the funding of the School LAND Trust Program;
▸ amends language related to distributions from the associated permanent funds
created from lands granted in Sections 8 and 12 of the Utah Enabling Act; and
▸ makes technical corrections.
Money Appropriated in this Bill:
None
Other Special Clauses:
This bill provides a special effective date.
Utah Code Sections Affected:
AMENDS:
53A-16-101
 (Effective 07/01/17)
, Utah Code Annotated 1953
53A-16-101.5
 (Effective 07/01/17)
, Utah Code Annotated 1953
53C-3-102
 (Effective 07/01/17)
, Utah Code Annotated 1953
Be it enacted by the Legislature of the state of Utah:
Section 1. Section 
53A-16-101 (Effective 07/01/17)
 is amended to read:
53A-16-101 (Effective 07/01/17).
Uniform School Fund -- Contents -- Trust
Distribution Account.
(1) The Uniform School Fund, a special revenue fund within the Education Fund,
established by Utah Constitution, Article X, Section 5, consists of:
(a) distributions derived from the investment of money in the permanent State School
Fund established by Utah Constitution, Article X, Section 5;
(b) money transferred to the fund pursuant to Title 67, Chapter 4a, Unclaimed Property
Act; and
(c) all other constitutional or legislative allocations to the fund, including revenues
received by donation.
(2) (a) There is created within the Uniform School Fund a restricted account known as
the Trust Distribution Account.
(b) The Trust Distribution Account consists of
:
(i) earnings deposited by the School and Institutional Trust Fund Office created in
Section 
53D-1-201
 based on
 the average of:
[
(i)
] 
(A)
 4% of the average market value of the permanent State School Fund based on
an annual review each [
July of
] 
fiscal year using
 the past 12 consecutive quarters[
; and
] 
ending
the prior fiscal year; and
[
(ii)
] 
(B)
 the prior 
fiscal
 year's distribution [
from the Trust Distribution Account
] as
described in Section 
53A-16-101.5
, increased by prior year changes in the percentage of
student enrollment growth and in the consumer price index[
.
]
;
(ii) all interest earned on the account; and
(iii) the amount appropriated under Subsection (5)(a).
(3) Notwithstanding Subsection (2)(b), the distribution may not exceed 4% of the
[
average
] 
prior fiscal year end
 market value of the permanent State School Fund [
over the past
consecutive quarters
].
(4) The School and Institutional Trust Fund Board of Trustees created in Section
53D-1-301
 shall:
(a) annually review distribution of the Trust Distribution Account; and
(b) make recommendations, if necessary, to the Legislature for changes to the formula
described in Subsection (2)(b).
(5) (a) Upon appropriation by the Legislature, the director of the School and
Institutional Trust Fund Office created in Section 
53D-1-201
 shall place in the Trust
Distribution Account funds for:
(i) the administration of the School LAND Trust Program as provided in Section
53A-16-101.5
; 
and
(ii) the performance of duties described in Section 
53A-16-101.6
[
;
]
.
[
(iii) the School and Institutional Trust Fund Office; and
]
[
(iv) the School and Institutional Trust Fund Board of Trustees created in Section
53D-1-301
.
]
(b) The Legislature may appropriate any remaining balance for the support of the
public education system.
Section 2. Section 
53A-16-101.5 (Effective 07/01/17)
 is amended to read:
53A-16-101.5 (Effective 07/01/17).
School LAND Trust Program -- Purpose --
Distribution of funds -- School plans for use of funds.
(1) As used in this section:
(a) "Charter agreement" means an agreement made in accordance with Section
53A-1a-508
 that authorizes the operation of a charter school.
(b) "Charter school authorizer" means the same as that term is defined in Section
53A-1a-501.3
.
(c) "Charter trust land council" means a council established by a charter school
governing board under this section.
(d) "Council" means a school community council or a charter trust land council.
(e) "District school" means a public school under the control of a local school board
elected under Title 20A, Chapter 14, Nomination and Election of State and Local School
Boards.
(f) "School community council" means a council established at a district school in
accordance with Section 
53A-1a-108
.
(2) There is established the School LAND (Learning And Nurturing Development)
Trust Program to:
(a) provide financial resources to public schools to enhance or improve student
academic achievement and implement a component of a district school's school improvement
plan or a charter school's charter agreement; and
(b) involve parents and guardians of a school's students in decision making regarding
the expenditure of School LAND Trust Program money allocated to the school.
[
(3) (a) The program shall be funded each fiscal year:
]
[
(i) from the Trust Distribution Account created in Section 
53A-16-101
; and
]
[
(ii) in the amount of the sum of the following:
]
[
(A)
] 
(3) (a) The program shall be funded each fiscal year from
 the distributions from
the investment of money in the permanent State School Fund deposited [
to
] 
into
 the Trust
Distribution Account 
created in Section 
53A-16-101
 on or about July 15 each year[
; and
]
.
[
(B) interest accrued on the Trust Distribution Account in the immediately preceding
fiscal year.
]
(b) The program shall be funded as provided in Subsection (3)(a) up to an amount
equal to 3% of the funds provided for the Minimum School Program, pursuant to [
Title 53A,
]
Chapter 17a, Minimum School Program Act, each fiscal year.
(c) (i) The Legislature shall annually allocate, through an appropriation to the State
Board of Education, a portion of the Trust Distribution Account created in Section 
53A-16-101
to be used for:
(A) the administration of the School LAND Trust Program; and
(B) the performance of duties described in Section 
53A-16-101.6
.
(ii) Any unused balance remaining from an amount appropriated under Subsection
(3)(c)(i) shall be deposited in the Trust Distribution Account for distribution to schools in the
School LAND Trust Program.
(4) (a) The State Board of Education shall allocate the money referred to in Subsection
(3) annually as follows:
(i) the Utah Schools for the Deaf and the Blind shall receive funding equal to the
product of:
(A) enrollment on October 1 in the prior year at the Utah Schools for the Deaf and the
Blind divided by enrollment on October 1 in the prior year in public schools statewide; and
(B) the total amount available for distribution under Subsection (3);
(ii) charter schools shall receive funding equal to the product of:
(A) charter school enrollment on October 1 in the prior year, divided by enrollment on
October 1 in the prior year in public schools statewide; and
(B) the total amount available for distribution under Subsection (3); and
(iii) of the funds available for distribution under Subsection (3) after the allocation of
funds for the Utah Schools for the Deaf and the Blind and charter schools:
(A) school districts shall receive 10% of the funds on an equal basis; and
(B) the remaining 90% of the funds shall be distributed to school districts on a per
student basis.
(b) (i) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
the State Board of Education shall make rules specifying a formula to distribute the amount
allocated under Subsection (4)(a)(ii) to charter schools.
(ii) In making rules under Subsection (4)(b)(i), the State Board of Education shall:
(A) consult with the State Charter School Board; and
(B) ensure that the rules include a provision that allows a charter school in the charter
school's first year of operations to receive funding based on projected enrollment, to be
adjusted in future years based on actual enrollment.
(c) A school district shall distribute its allocation under Subsection (4)(a)(iii) to each
school within the school district on an equal per student basis.
(d) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
State Board of Education may make rules regarding the time and manner in which the student
count shall be made for allocation of the money under Subsection (4)(a)(iii).
(5) To receive its allocation under Subsection (4):
(a) a district school shall have established a school community council in accordance
with Section 
53A-1a-108
;
(b) a charter school shall have established a charter trust land council in accordance
with Subsection (9); and
(c) the school's principal shall provide a signed, written assurance that the school is in
compliance with Subsection (5)(a) or (b).
(6) (a) A council shall create a program to use its allocation under Subsection (4) to
implement a component of the school's improvement plan or charter agreement, including:
(i) the school's identified most critical academic needs;
(ii) a recommended course of action to meet the identified academic needs;
(iii) a specific listing of any programs, practices, materials, or equipment which the
school will need to implement a component of its school improvement plan to have a direct
impact on the instruction of students and result in measurable increased student performance;
and
(iv) how the school intends to spend its allocation of funds under this section to
enhance or improve academic excellence at the school.
(b) (i) A council shall create and vote to adopt a plan for the use of School LAND
Trust Program money in a meeting of the council at which a quorum is present.
(ii) If a majority of the quorum votes to adopt a plan for the use of School LAND Trust
Program money, the plan is adopted.
(c) A council shall:
(i) post a plan for the use of School LAND Trust Program money that is adopted in
accordance with Subsection (6)(b) on the School LAND Trust Program website; and
(ii) include with the plan a report noting the number of council members who voted for
or against the approval of the plan and the number of council members who were absent for the
vote.
(d) (i) The local school board of a district school shall approve or disapprove a plan for
the use of School LAND Trust Program money.
(ii) If a local school board disapproves a plan for the use of School LAND Trust
Program money:
(A) the local school board shall provide a written explanation of why the plan was
disapproved and request the school community council who submitted the plan to revise the
plan; and
(B) the school community council shall submit a revised plan in response to a local
school board's request under Subsection (6)(d)(ii)(A).
(iii) Once a plan has been approved by a local school board, a school community
council may amend the plan, subject to a majority vote of the school community council and
local school board approval.
(e) A charter trust land council's plan for the use of School LAND Trust Program
money is subject to approval by the:
(i) charter school governing board; and
(ii) charter school's charter school authorizer.
(7) (a) A district school or charter school shall:
(i) implement the program as approved;
(ii) provide ongoing support for the council's program; and
(iii) meet State Board of Education reporting requirements regarding financial and
performance accountability of the program.
(b) (i) A district school or charter school shall prepare and post an annual report of the
program on the School LAND Trust Program website each fall.
(ii) The report shall detail the use of program funds received by the school under this
section and an assessment of the results obtained from the use of the funds.
(iii) A summary of the report shall be provided to parents or guardians of students
attending the school.
(8) On or before October 1 of each year, a school district shall record the amount of the
program funds distributed to each school under Subsection (4)(c) on the School LAND Trust
Program website to assist schools in developing the annual report described in Subsection
(7)(b).
(9) (a) The governing board of a charter school shall establish a council, which shall
prepare a plan for the use of School LAND Trust Program money that includes the elements
listed in Subsection (6).
(b) (i) The membership of the council shall include parents or guardians of students
enrolled at the school and may include other members.
(ii) The number of council members who are parents or guardians of students enrolled
at the school shall exceed all other members combined by at least two.
(c) A charter school governing board may serve as the council that prepares a plan for
the use of School LAND Trust Program money if the membership of the charter school
governing board meets the requirements of Subsection (9)(b)(ii).
(d) (i) Except as provided in Subsection (9)(d)(ii), council members who are parents or
guardians of students enrolled at the school shall be elected in accordance with procedures
established by the charter school governing board.
(ii) Subsection (9)(d)(i) does not apply to a charter school governing board that serves
as the council that prepares a plan for the use of School LAND Trust Program money.
(e) A parent or guardian of a student enrolled at the school shall serve as chair or
cochair of a council that prepares a plan for the use of School LAND Trust Program money.
(10) The president or chair of a local school board or charter school governing board
shall ensure that the members of the local school board or charter school governing board are
provided with annual training on the requirements of this section.
Section 3. Section 
53C-3-102 (Effective 07/01/17)
 is amended to read:
53C-3-102 (Effective 07/01/17).
Deposit and allocation of money received.
(1) (a) The director shall pay to the School and Institutional Trust Fund Office, created
in Section 
53D-1-201
, all money received, accompanied by a statement showing the respective
sources of this money.
(b) The administration and the School and Institutional Trust Fund Office shall enter
into a memorandum of understanding detailing:
(i) the classification of sources of money; and
(ii) other relevant information, as determined by the administration and the School and
Institutional Trust Fund Office.
(2) All money received from the sale of lands granted by Section 6 of the Utah
Enabling Act for the support of the common schools, all money received from the sale of lands
selected in lieu of those lands, all money received from the United States under Section 9 of the
Utah Enabling Act, all money received from the sale of lands or other securities acquired by the
state from the investment of those funds, all sums paid for fees, all forfeitures, and all penalties
paid in connection with these sales shall be deposited in the Permanent State School Fund.
(3) All money received from the sale and all net proceeds from other contractual
arrangements of institutional trust lands granted to the state by the United States under Section
7, 8, or 12 of the Utah Enabling Act shall be deposited into the respective permanent funds
established for the benefit of those institutions under the Utah Enabling Act and the Utah
Constitution.
(4) (a) All lands acquired by the state through foreclosure of mortgages securing school
or institutional trust funds or through deeds from mortgagors or owners of those lands shall
become a part of the respective school or institutional trust lands.
(b) All money received from these lands shall be treated as money received from
school or institutional trust lands.
(5) All money received from the sale of lands acquired by the state through foreclosure
of mortgages securing trust funds or through deeds from mortgagors or owners of such lands,
whether a profit is realized or a loss sustained on the principal invested, shall be regarded as
principal and shall go into the principal or permanent fund from which it was originally taken
in reimbursement of that fund, with profits being used to offset losses.
(6) (a) All money received by the director as a first or down payment on applications to
purchase, permit, or lease trust lands or minerals shall be paid to the state treasurer and held in
suspense pending final action on those applications.
(b) After final action the payments received under Subsection (6)(a) shall either be
credited to the appropriate fund or account, or refunded to the applicant in accordance with the
action taken.
(7) Distributions to the respective institutions from the associated permanent funds
created from lands granted in Sections 8 and 12 of the Utah Enabling Act shall [
consist of
] 
be
4% of the average market value of each institutional permanent fund [
over the past 12
consecutive quarters.
] 
based on an annual review each fiscal year using the past 12 consecutive
quarters ending the prior fiscal year.
Section 4. 
Effective date.
This bill takes effect July 1, 2017.
Legislative Review Note
Office of Legislative Research and General Counsel