Utah 2023 Regular Session

Utah House Bill HB0421 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	Enrolled Copy H.B. 421
	1	+	H.B. 421
	2	+	LEGISLATIVE GENERAL COUNSEL
	3	+	6 Approved for Filing: J.V. Hulten 6
	4	+	6 02-08-23 4:43 PM 6
	5	+	H.B. 421
2	6		1 SCHOOL LAND TRUST PROGRAM AMENDMENTS
3	7		2 2023 GENERAL SESSION
4	8		3 STATE OF UTAH
5	9		4 Chief Sponsor: Jefferson Moss
6		-	5 Senate Sponsor: ~~Ann Millner~~
	10	+	5 Senate Sponsor: ____________
7	11		6
8	12		7LONG TITLE
9	13		8General Description:
10	14		9 This bill modifies the percentage of revenue from trust lands that is distributed from the
11	15		10Land Grant Management Fund.
12	16		11Highlighted Provisions:
13	17		12 This bill:
14	18		13 <modifies the percentage of revenue from trust lands that is distributed from the Land
15	19		14Grant Management Fund.
16	20		15Money Appropriated in this Bill:
17	21		16 None
18	22		17Other Special Clauses:
19	23		18 This bill provides a special effective date.
20	24		19Utah Code Sections Affected:
21	25		20AMENDS:
22	26		21 53C-3-102, as last amended by Laws of Utah 2021, Chapter 336
23	27		22 53F-2-404, as last amended by Laws of Utah 2020, Chapter 408
24	28		23 53F-9-201, as last amended by Laws of Utah 2022, Chapter 456
25	29		24
26	30		25Be it enacted by the Legislature of the state of Utah:
27	31		26 Section 1. Section 53C-3-102 is amended to read:
28	32		27 53C-3-102. Deposit and allocation of money received.
	33	+	HB0421 H.B. 421 02-08-23 4:43 PM
	34	+	- 2 -
29	35		28 (1) (a) The director shall pay to the School and Institutional Trust Fund Office, created
30		-	29in Section 53D-1-201, all money received, accompanied by a statement showing the respective H.B. 421 Enrolled Copy
31		-	- 2 -
	36	+	29in Section 53D-1-201, all money received, accompanied by a statement showing the respective
32	37		30sources of this money.
33	38		31 (b) The administration and the School and Institutional Trust Fund Office shall enter
34	39		32into a memorandum of understanding detailing:
35	40		33 (i) the classification of sources of money; and
36	41		34 (ii) other relevant information, as determined by the administration and the School and
37	42		35Institutional Trust Fund Office.
38	43		36 (2) All money received from the sale of lands granted by Section 6 of the Utah
39	44		37Enabling Act for the support of the common schools, all money received from the sale of lands
40	45		38selected in lieu of those lands, all money received from the United States under Section 9 of the
41	46		39Utah Enabling Act, all money received from the sale of lands or other securities acquired by the
42	47		40state from the investment of those funds, all sums paid for fees, all forfeitures, and all penalties
43	48		41paid in connection with these sales shall be deposited in the Permanent State School Fund.
44	49		42 (3) All money received from the sale and all net proceeds from other contractual
45	50		43arrangements of institutional trust lands granted to the state by the United States under Section
46	51		447, 8, or 12 of the Utah Enabling Act shall be deposited into the respective permanent funds
47	52		45established for the benefit of those institutions under the Utah Enabling Act and the Utah
48	53		46Constitution.
49	54		47 (4) (a) All lands acquired by the state through foreclosure of mortgages securing school
50	55		48or institutional trust funds or through deeds from mortgagors or owners of those lands shall
51	56		49become a part of the respective school or institutional trust lands.
52	57		50 (b) All money received from these lands shall be treated as money received from
53	58		51school or institutional trust lands.
54	59		52 (5) All money received from the sale of lands acquired by the state through foreclosure
55	60		53of mortgages securing trust funds or through deeds from mortgagors or owners of such lands,
56	61		54whether a profit is realized or a loss sustained on the principal invested, shall be regarded as
57	62		55principal and shall go into the principal or permanent fund from which it was originally taken
58	63		56in reimbursement of that fund, with profits being used to offset losses.
59		-	57 (6) (a) All money received by the director as a first or down payment on applications to Enrolled Copy H.B. 421
	64	+	57 (6) (a) All money received by the director as a first or down payment on applications to
	65	+	58purchase, permit, or lease trust lands or minerals shall be paid to the state treasurer and held in 02-08-23 4:43 PM H.B. 421
60	66		- 3 -
61		-	58purchase, permit, or lease trust lands or minerals shall be paid to the state treasurer and held in
62	67		59suspense pending final action on those applications.
63	68		60 (b) After final action the payments received under Subsection (6)(a) shall either be
64	69		61credited to the appropriate fund or account, or refunded to the applicant in accordance with the
65	70		62action taken.
66	71		63 (7) Distributions to the respective institutions from the associated permanent funds
67	72		64created from lands granted in Sections 8 and 12 of the Utah Enabling Act shall consist of [4%]
68	73		655% of the average market value of each institutional permanent fund over the past 20
69	74		66consecutive quarters.
70	75		67 Section 2. Section 53F-2-404 is amended to read:
71	76		68 53F-2-404. School LAND Trust Program distribution of funds.
72	77		69 (1) (a) By appropriation the Legislature shall fund the School LAND Trust Program,
73	78		70established in Section 53G-7-1206, on or before July 31 of each fiscal year:
74	79		71 (i) from the Trust Distribution Account, created in Section 53F-9-201; and
75	80		72 (ii) except as provided in Subsection (1)(b), in the total amount of the quarterly
76	81		73deposits made to the Trust Distribution Account for the School LAND Trust Program during
77	82		74the prior fiscal year.
78	83		75 [(b) The amount described in Subsection (1)(a)(ii) may not exceed an amount equal to
79	84		763% of the funds provided for the Minimum School Program, in accordance with this chapter,
80	85		77each fiscal year.]
81	86		78 [(c)] (b) Independently from the appropriation for the School LAND Trust Program
82	87		79described in Subsection (1)(a), the Legislature shall make an annual appropriation to the state
83	88		80board from the Trust Distribution Account, created in Section 53F-9-201, for the
84	89		81administration of the School LAND Trust Program.
85	90		82 [(d)] (c) Any unused balance remaining from an amount appropriated under Subsection
86	91		83(1)(c) shall be deposited into the Trust Distribution Account.
87	92		84 (2) (a) The state board shall allocate the money referred to in Subsection (1)(a)
88		-	85annually as follows: H.B. 421 Enrolled Copy
89		-	- 4 -
	93	+	85annually as follows:
90	94		86 (i) the Utah Schools for the Deaf and the Blind shall receive funding equal to the
91	95		87product of:
92	96		88 (A) enrollment on October 1 in the prior year at the Utah Schools for the Deaf and the
93		-	89Blind divided by enrollment on October 1 in the prior year in public schools statewide; and
	97	+	89Blind divided by enrollment on October 1 in the prior year in public schools statewide; and H.B. 421 02-08-23 4:43 PM
	98	+	- 4 -
94	99		90 (B) the total amount available for distribution under Subsection (1)(a);
95	100		91 (ii) charter schools shall receive funding equal to the product of:
96	101		92 (A) charter school enrollment on October 1 in the prior year, divided by enrollment on
97	102		93October 1 in the prior year in public schools statewide; and
98	103		94 (B) the total amount available for distribution under Subsection (1)(a); and
99	104		95 (iii) of the funds available for distribution under Subsection (1)(a) after the allocation
100	105		96of funds for the Utah Schools for the Deaf and the Blind and charter schools:
101	106		97 (A) school districts shall receive 10% of the funds on an equal basis; and
102	107		98 (B) the remaining 90% of the funds shall be distributed to school districts on a per
103	108		99student basis.
104	109		100 (b) (i) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
105	110		101the state board shall make rules specifying a formula to distribute the amount allocated under
106	111		102Subsection (2)(a)(ii) to charter schools.
107	112		103 (ii) In making rules under Subsection (2)(b)(i), the state board shall:
108	113		104 (A) consult with the State Charter School Board; and
109	114		105 (B) ensure that the rules include a provision that allows a charter school in the charter
110	115		106school's first year of operations to receive funding based on projected enrollment, to be
111	116		107adjusted in future years based on actual enrollment.
112	117		108 (c) A school district shall distribute its allocation under Subsection (2)(a)(iii) to each
113	118		109school within the school district on an equal per student basis.
114	119		110 (d) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
115	120		111state board may make rules regarding the time and manner in which the student count shall be
116	121		112made for allocation of the money under Subsection (2)(a)(iii).
117		-	113 Section 3. Section 53F-9-201 is amended to read: Enrolled Copy H.B. 421
118		-	- 5 -
	122	+	113 Section 3. Section 53F-9-201 is amended to read:
119	123		114 53F-9-201. Uniform School Fund -- Contents -- Trust Distribution Account.
120	124		115 (1) As used in this section:
121	125		116 (a) "Annual distribution calculation" means, for a given fiscal year, the average of:
122	126		117 (i) [4%] 5% of the average market value of the State School Fund for that fiscal year;
123	127		118and
124	128		119 (ii) the distribution amount for the prior fiscal year, multiplied by the sum of:
125		-	120 (A) one;
	129	+	120 (A) one; 02-08-23 4:43 PM H.B. 421
	130	+	- 5 -
126	131		121 (B) the percent change in student enrollment from the school year two years prior to
127	132		122the prior school year; and
128	133		123 (C) the actual total percent change of the consumer price index during the last 12
129	134		124months as measured in June of the prior fiscal year.
130	135		125 (b) "Average market value of the State School Fund" means the results of a calculation
131	136		126completed by the SITFO director each fiscal year that averages the value of the State School
132	137		127Fund for the past 20 consecutive quarters ending in the prior fiscal year.
133	138		128 (c) "Consumer price index" means the Consumer Price Index for All Urban
134	139		129Consumers: All Items Less Food & Energy, as published by the Bureau of Labor Statistics of
135	140		130the United States Department of Labor.
136	141		131 (d) "SITFO director" means the director of the School and Institutional Trust Fund
137	142		132Office appointed under Section 53D-1-401.
138	143		133 (e) "State School Fund investment earnings distribution amount" or "distribution
139	144		134amount" means, for a fiscal year, the lesser of:
140	145		135 (i) the annual distribution calculation; or
141	146		136 (ii) [4%] 5% of the average market value of the State School Fund.
142	147		137 (2) The Uniform School Fund, a special revenue fund, established by Utah
143	148		138Constitution, Article X, Section 5, consists of:
144	149		139 (a) distributions derived from the investment of money in the permanent State School
145	150		140Fund established by Utah Constitution, Article X, Section 5;
146		-	141 (b) money transferred to the fund pursuant to Title 67, Chapter 4a, Revised Uniform H.B. 421 Enrolled Copy
147		-	- 6 -
	151	+	141 (b) money transferred to the fund pursuant to Title 67, Chapter 4a, Revised Uniform
148	152		142Unclaimed Property Act; and
149	153		143 (c) all other constitutional or legislative allocations to the fund, including:
150	154		144 (i) appropriations for the Minimum School Program, enrollment growth, and inflation
151	155		145under Section 53F-9-201.1; and
152	156		146 (ii) revenues received by donation.
153	157		147 (3) (a) There is created within the Uniform School Fund a restricted account known as
154	158		148the Trust Distribution Account.
155	159		149 (b) The Trust Distribution Account consists of:
156	160		150 (i) in accordance with Subsection (4), quarterly deposits of the State School Fund
157		-	151investment earnings distribution amount from the prior fiscal year;
	161	+	151investment earnings distribution amount from the prior fiscal year; H.B. 421 02-08-23 4:43 PM
	162	+	- 6 -
158	163		152 (ii) all interest earned on the Trust Distribution Account in the prior fiscal year; and
159	164		153 (iii) any unused appropriation for the administration of the School LAND Trust
160	165		154Program, as described in Subsection 53F-2-404(1)(c).
161	166		155 (4) If, at the end of a fiscal year, the Trust Distribution Account has a balance
162	167		156remaining after subtracting the appropriation amount described in Subsection 53F-2-404(1)(a)
163	168		157for the next fiscal year, the SITFO director shall, during the next fiscal year, apply the amount
164	169		158of the remaining balance from the prior fiscal year toward the current fiscal year's distribution
165	170		159amount by reducing a quarterly deposit to the Trust Distribution Account by the amount of the
166	171		160remaining balance from the prior fiscal year.
167	172		161 (5) On or before October 1 of each year, the SITFO director shall:
168	173		162 (a) in accordance with this section, determine the distribution amount for the following
169	174		163fiscal year; and
170	175		164 (b) report the amount described in Subsection (5)(a) as the funding amount, described
171	176		165in Subsection 53F-2-404(1)(c), for the School LAND Trust Program, to:
172	177		166 (i) the State Treasurer;
173	178		167 (ii) the Legislative Fiscal Analyst;
174	179		168 (iii) the Division of Finance;
175		-	169 (iv) the director of the Land Trusts Protection and Advocacy Office, appointed under Enrolled Copy H.B. 421
176		-	- 7 -
	180	+	169 (iv) the director of the Land Trusts Protection and Advocacy Office, appointed under
177	181		170Section 53D-2-203;
178	182		171 (v) the School and Institutional Trust Lands Administration created in Section
179	183		17253C-1-201;
180	184		173 (vi) the state board; and
181	185		174 (vii) the Governor's Office of Planning and Budget.
182	186		175 (6) The School and Institutional Trust Fund Board of Trustees created in Section
183	187		17653D-1-301 shall:
184	188		177 (a) annually review the distribution amount; and
185	189		178 (b) make recommendations, if necessary, to the Legislature for changes to the formula
186	190		179for calculating the distribution amount.
187	191		180 (7) Upon appropriation by the Legislature, the SITFO director shall place in the Trust
188	192		181Distribution Account funds for the School LAND Trust Program as described in Subsections
189		-	18253F-2-404(1)(a) and (c).
	193	+	18253F-2-404(1)(a) and (c). 02-08-23 4:43 PM H.B. 421
	194	+	- 7 -
190	195		183 Section 4. Contingent effective date.
191	196		184 This bill takes effect January 1, 2025, if the amendment to the Utah Constitution
192	197		185proposed by H.J.R. 18, Proposal to Amend Utah Constitution - State School Fund, 2023
193	198		186General Session, passes the Legislature and is approved by a majority of those voting on it at
194	199		187the next regular general election.