Land Trusts Protection and Advocacy Office Amendments

101
53C-1-103
53C-1-203
53C-1-301
53C-1-303
53D-1-102
53D-1-303
53D-1-401
53D-1-403
53D-1-501
53D-2-102
53D-2-201
53D-2-202
53D-2-203
53D-2-301
53D-2-302
53D-2-303
53D-2-304
53D-2-401
53D-2-402
53D-2-501
53D-2-204
53F-9-201
53G-7-1206
53C-1-103
53C-1-203
53C-1-301
53C-1-303
53D-1-102
53D-1-303
53D-1-401
53D-1-403
53D-1-501
53D-2-102
53D-2-201
53D-2-202
53D-2-203
53D-2-301
53D-2-302
53D-2-303
53D-2-304
53D-2-401
53D-2-402
53D-2-501
53D-2-204
53F-9-201
53G-7-1206
1
Land Trusts Protection and Advocacy Office Amendments
2026 GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Derrin R. Owens
House Sponsor: Jefferson S. Burton
LONG TITLE
General Description:
This bill clarifies the Land Trusts Protection and Advocacy Office's role and implements
distribution accountability requirements for non-public education trust beneficiaries.
Highlighted Provisions:
This bill:
defines terms;
clarifies the authority and purpose of the advocacy office as the primary representative of
the trust beneficiaries;
refines the duties of the advocacy office director;
defines accountability requirements for use of trust distributions in response to a
legislative audit;
updates the composition of the nominating committees for the trustee boards; and
makes technical and conforming changes.
Money Appropriated in this Bill:
None
Other Special Clauses:
This bill provides a special effective date.
Utah Code Sections Affected:
AMENDS:
53C-1-103
, as last amended by Laws of Utah 2018, Chapter 448
53C-1-203
, as last amended by Laws of Utah 2018, Chapters 415, 448
53C-1-301
, as last amended by Laws of Utah 2025, Chapter 302
53C-1-303
, as last amended by Laws of Utah 2025, Chapter 496
53D-1-102
, as last amended by Laws of Utah 2019, Chapter 136
53D-1-303
, as last amended by Laws of Utah 2018, Chapter 200
53D-1-401
, as last amended by Laws of Utah 2018, Chapter 448
53D-1-403
, as last amended by Laws of Utah 2018, Chapters 415, 448
53D-1-501
, as last amended by Laws of Utah 2018, Chapter 448
53D-2-102
, as enacted by Laws of Utah 2018, Chapter 448
53F-9-201
, as last amended by Laws of Utah 2024, Chapter 268
53G-7-1206
, as last amended by Laws of Utah 2025, Chapter 424
ENACTS:
53D-2-301
, Utah Code Annotated 1953
53D-2-302
, Utah Code Annotated 1953
53D-2-303
, Utah Code Annotated 1953
53D-2-304
, Utah Code Annotated 1953
53D-2-401
, Utah Code Annotated 1953
53D-2-402
, Utah Code Annotated 1953
53D-2-501
, Utah Code Annotated 1953
REPEALS AND REENACTS:
53D-2-201
, as last amended by Laws of Utah 2021, Chapter 336
53D-2-202
, as enacted by Laws of Utah 2018, Chapter 448
RENUMBERS AND AMENDS:
53D-2-601
, (Renumbered from 53D-2-204, as last amended by Laws of Utah 2019,
Chapter 191)
REPEALS:
53D-2-203
, as last amended by Laws of Utah 2025, First Special Session, Chapter 9
Be it enacted by the Legislature of the state of Utah:
Section 1. Section
53C-1-103
is amended to read:
53C-1-103
. Definitions.
As used in this title:
(1)
"Administration" means the School and Institutional Trust Lands Administration.
(2)
"Advocacy office" means the School and Institutional Trust Beneficiaries' Advocacy
Office, created in Section
53D-2-201
.
(2)
(3)
"Board" or "board of trustees" means the School and Institutional Trust Lands
Board of Trustees.
(3)
(4)
"Director" or "director of school and institutional trust lands" means the chief
executive officer of the School and Institutional Trust Lands Administration.
(4)
(5)
"Mineral" includes oil, gas, and hydrocarbons.
(5)
(6)
"Nominating committee" means the committee that nominates candidates for
positions and vacancies on the board.
(6)
(7)
"Policies" means statements applying to the administration that broadly prescribe a
future course of action and guiding principles.
(7)
"Primary beneficiary representative" means the the Land Trusts Protection and
Advocacy Office, created in Section
53D-2-201
, acting as representative on behalf of the
following trusts:
(a)
the trust established for common schools;
(b)
the trust established for schools for the blind; and
(c)
the trust established for schools for the deaf.
(8)
"School and institutional trust lands" or "trust lands" means those properties
granted by
the United States
grants
in the Utah Enabling Act to the state
and placed
in trust
under
Utah Constitution, Article XX, Section 2
, and other lands transferred to the trust, which
must
shall
be managed for the
benefit of:
beneficiaries listed in Subsection
53D-2-201(2)
.
(a)
the state's public education system; or
(b)
the institutions of the state which are designated by the Utah Enabling Act as
beneficiaries of trust lands.
Section 2. Section
53C-1-203
is amended to read:
53C-1-203
. Board of trustees nominating committee -- Composition --
Responsibilities -- Per diem and expenses.
(1)
There is established
an 11
a nine-
member board of trustees nominating committee.
(2)
(a)
(i)
Through July 30, 2018, the State Board of Education shall appoint five
members to the nominating committee from different geographical areas of the
state.
(ii)
Beginning on August 1, 2018, the five members of the Land Trusts Protection
and Advocacy Committee, created in Section
53D-2-202
, shall serve on the
nominating committee.
(b)
The governor shall appoint five members to the nominating committee on or before
the December 1 of the year preceding the vacancy on the nominating committee as
follows:
(i)
(A)
through July 30, 2018, one individual from a nomination list of at least
two names of individuals knowledgeable about institutional trust lands
submitted on or before the October 1 of the year preceding the vacancy on the
nominating committee by the University of Utah and Utah State University on
an alternating basis every four years; and
(B)
beginning on August 1, 2018, one individual who is knowledgeable about
real estate development;
(ii)
one individual from a nomination list of at least two names submitted by the
Utah Farm Bureau in consultation with the Utah Cattleman's Association and the
Utah Wool Growers' Association on or before the October 1 of the year preceding
the vacancy on the nominating committee;
(iii)
one individual from a nomination list of at least two names submitted by the
Utah Petroleum Association on or before the October 1 of the year preceding the
vacancy on the nominating committee;
(iv)
one individual from a nomination list of at least two names submitted by the
Utah Mining Association on or before the October 1 of the year preceding the
vacancy on the nominating committee; and
(v)
one individual from a nomination list of at least two names submitted by the
executive director of the Department of Natural Resources after consultation with
statewide wildlife and conservation organizations on or before the October 1 of
the year preceding the vacancy on the nominating committee.
(c)
The president of the Utah Association of Counties shall designate the chair of the
Public Lands Steering Committee, who must be an elected county commissioner or
councilor, to serve as the eleventh member of the nominating committee.
(2)
(a)
The council chair of the School and Institutional Trust Beneficiaries' Advocacy
Council, created in Section
53D-2-303
, shall appoint three members to serve on the
nominating committee contingent on the member's council membership.
(b)
The governor shall appoint five members to the nominating committee on or before
the December 1 of the year preceding the vacancy on the nominating committee as
follows:
(i)
one individual who is knowledgeable about real estate development from a
nomination the Governor's Office of Economic Opportunity submits on or before
the October 1 of the year preceding the vacancy on the nominating committee;
(ii)
one individual from a nomination the Utah Farm Bureau submits in consultation
with the Utah Cattlemen's Association and the Utah Wool Growers Association on
or before the October 1 of the year preceding the vacancy on the nominating
committee;
(iii)
one individual from a nomination the Utah Petroleum Association submits on or
before the October 1 of the year preceding the vacancy on the nominating
committee;
(iv)
one individual from a nomination the Utah Mining Association submits on or
before the October 1 of the year preceding the vacancy on the nominating
committee; and
(v)
one individual from a nomination the executive director of the Department of
Natural Resources submits after consultation with statewide wildlife and
conservation organizations on or before the October 1 of the year preceding the
vacancy on the nominating committee.
(c)
If the governor rejects a nomination under this section, notwithstanding the October
1 deadline described in Subsection
(2)(b)
, the affected nominating organization shall
make a new submission.
(d)
The president of the Utah Association of Counties shall designate the chair of the
Public Lands Steering Committee, who shall be an elected county commissioner or
councilor, to serve as the ninth member of the nominating committee.
(3)
(a)
Except as required by
Subsections
Subsection

(3)(b)
and
(d)
, each member
shall serve a four-year term.
(b)
The governor shall, at the time of appointment or reappointment, adjust the length of
terms to ensure that the terms of committee members
the governor appoints
are
staggered so that approximately half of the committee is appointed every two years.
(c)
When a vacancy occurs in the membership for any reason, the replacement shall be
appointed for the unexpired term.
(d)
The term of a member of the nominating committee who is appointed under
Subsection
(2)(a)(i)
or
(2)(b)(i)(A)
shall end on July 30, 2018.
(4)
The nominating committee shall select a chair and vice chair from
its
the nominating
committee's
membership by majority vote.
(5)
(a)
The nominating committee shall nominate at least two candidates for each
position or vacancy which occurs on the board of trustees except for the governor's
appointee under Subsection
53C-1-202(5)
.
(b)
The nominations shall be by majority vote of the committee.
(6)
A member may not receive compensation or benefits for the member's service, but may
receive per diem and travel expenses in accordance with:
(a)
Section
63A-3-106
;
(b)
Section
63A-3-107
; and
(c)
rules
made by

the Division of Finance
pursuant to
makes in accordance with

Sections
63A-3-106
and
63A-3-107
.
(7)
The
Land Trusts Protection and Advocacy Office
advocacy office
, created in Section
53D-2-201
, shall provide staff support to the nominating committee.
(8)
The nominating committee shall, by a majority vote, establish, amend, and publish
guidelines consistent with this section to govern the nominating process.
Section 3. Section
53C-1-301
is amended to read:
53C-1-301
. Director -- Term -- Compensation -- Removal from office.
(1)
(a)
The board, with the consent of the governor, shall select the director on the basis
of outstanding professional qualifications pertinent to the purposes and activities of
the trust.
(b)
If the governor withholds consent from a candidate agreed upon by the board, the
governor shall give reasons in writing to the board.
(2)
The director shall serve a term of four years, or until a successor is selected and
qualified.
(3)
When a vacancy occurs in the office of the director, the vacancy shall be filled
pursuant
to
in accordance with
Subsection
(1)
for the remainder of the term.
(4)
(a)
The board:
(i)
shall establish the compensation of the director; and
(ii)
annually report the director's compensation to the Legislature.
(b)
The compensation and performance of the director shall be examined each year as
part of the board's budget review process
which may include responses from
interested parties, the director of the advocacy office, and the director of the School
and Institutional Trust Fund Office
.
(5)
(a)
The board may remove the director from office for cause by a majority vote of the
board.
(b)
(i)
The governor may petition the board for removal of the director for cause.
(ii)
The board shall hold a hearing on the governor's petition within 60 days after
its
the petition's
receipt.
(iii)
If after the hearing the board finds by a preponderance of the evidence cause for
removal, it shall remove the director from office by a majority vote.
Section 4. Section
53C-1-303
is amended to read:
53C-1-303
. Responsibilities of director -- Budget review -- Legal counsel --
Contract for services.
(1)
In carrying out the policies of the board of trustees and in establishing procedures and
rules, the director shall:
(a)
take an oath of office before assuming any duties as the director;
(b)
adopt procedures and rules necessary for the proper administration of matters
entrusted to the director by state law and board policy;
(c)
submit to the board for
its
the board's
review and concurrence on any rules
necessary for the proper management of matters entrusted to the administration;
(d)
faithfully manage the administration under the policies
established by the board
the
board establishes
;
(e)
submit to the board for public inspection an annual management budget and financial
plan for operations of the administration and, after approval by the board, submit the
budget to the governor;
(f)
direct and control the budget expenditures as finally authorized and appropriated;
(g)
establish job descriptions and employ, within the limitation of the budget, staff
necessary to accomplish the purposes of the office subject to Section
53C-1-201
;
(h)
establish, in accordance with generally accepted principles of fund accounting, a
system to identify and account for the assets and vested interests of each beneficiary;
(i)
complete an approximate valuation of the administration's entire land portfolio every
five years by estimating the value of no less than 10% of the administration's land
portfolio each year;
(j)
notify the
primary beneficiary representative's designee regarding the trusts listed in
Subsection
53C-1-103(7)
advocacy office
on major items that the director knows
may be useful to the
primary beneficiary representative's designee
advocacy office

in
protecting
representing
beneficiary
interests and
rights;
(k)
permit the
primary beneficiary representative's designee regarding a trust listed in
Subsection
53C-1-103(7)
advocacy office
reasonable access to inspect records,
documents, and other trust property pertaining to that trust, provided that the
primary beneficiary representative's designee
advocacy office
shall maintain
confidentiality if confidentiality is required of the director;
(l)
maintain appropriate records of trust activities to enable auditors appointed by
appropriate state agencies or the board to conduct periodic audits of trust activities;
(m)
provide that all leases, contracts, and agreements be submitted to legal counsel for
review of compliance with applicable law and fiduciary duties prior to execution and
utilize the services of the attorney general as provided in Section
53C-1-305
;
(n)
keep the board, beneficiaries, governor, Legislature, and the public informed about
the work of the director and administration by:
(i)
submitting an annual report described in Section
53C-1-307
; and
(ii)
reporting to the board in a public meeting at least once during each calendar
quarter; and
(o)
respond in writing within a reasonable time to a request by the board or the
primary
beneficiary representative's designee regarding a trust listed in Subsection
53C-1-103(7)
advocacy office
for responses to questions on policies and practices
affecting the management of the trust.
(2)
The administration shall be the named party in substitution of the Division of
State
Lands and Forestry
Forestry, Fire, and State Lands
or
its
the Division of Forestry, Fire,
and State Lands
predecessor agencies, with respect to all documents affecting trust lands
from the effective date of this act.
(3)
The director may:
(a)
with the consent of the state risk manager and the board, manage lands or interests in
lands held by any other public or private party
pursuant to
in accordance with

policies
established by
the board
establishes
and may make rules to implement
these board policies;
(b)
sue or be sued as the director of school and institutional trust lands;
(c)
contract with other public agencies for personnel management services;
(d)
contract with any public or private entity to make improvements to or upon trust
lands and to carry out any of the responsibilities of the office, so long as the contract
requires strict adherence to trust management principles, applicable law and
regulation, and is subject to immediate suspension or termination for cause; and
(e)
with the approval of the board enter into joint ventures and other business
arrangements consistent with the purposes of the trust.
(4)
Any application or bid required for the lease, permitting, or sale of lands in a
competitive process or any request for review
pursuant to
in accordance with
Section
53C-1-304
shall be considered filed or made on the date received by the appropriate
administrative office, whether transmitted by United States mail or in any other manner.
Section 5. Section
53D-1-102
is amended to read:
53D-1-102
. Definitions.
As used in this chapter:
(1)
"Account" means the School and Institutional Trust Fund Management Account, created
in Section
53D-1-203
.
(2)
"Advocacy office" means the School and Institutional Trust Beneficiaries' Advocacy
Office, created in Section
53D-2-201
.
(2)
(3)
"Advocacy office director" means the director of the
Land Trusts Protection and
School and Institutional Trust Beneficiaries'
Advocacy Office, appointed under
Section
53D-2-203
Section
53D-2-401
.
(3)
(4)
"Beneficiaries":
(a)
means those
listed in Subsection
53D-2-201(3)
for whose benefit the trust fund is
managed and preserved, consistent with the enabling act, the Utah Constitution, and
state law; and
(b)
does not include other government institutions or agencies, the public at large, or the
general welfare of the state.
(4)
(5)
"Board" means the board of trustees established in Section
53D-1-301
.
(5)
(6)
"Director" means the director of the office.
(6)
(7)
"Enabling act" means the act of Congress, dated July 16, 1894, enabling the people
of Utah to form a constitution and state government and to be admitted into the Union.
(7)
"Land Trusts Protection and Advocacy Office" or "advocacy office" means the Land
Trusts Protection and Advocacy Office created in Section
53D-2-201
.
(8)
"Nominating committee" means the committee established under Section
53D-1-501
.
(9)
"Office" means the School and Institutional Trust Fund Office, created in Section
53D-1-201
.
(10)
"Trust fund" means money derived from:
(a)
the sale or use of land granted to the state under Sections 6, 8, and 12 of the
enabling act
Utah Enabling Act
;
(b)
proceeds referred to in Section 9 of the enabling act from the sale of public land; and
(c)
revenue and assets referred to in Utah Constitution, Article X, Section 5, Subsections
(1)(c)
,
(e)
, and
(f)
.
Section 6. Section
53D-1-303
is amended to read:
53D-1-303
. Board authority and duties.
(1)
The board has broad policymaking authority over the office and the trust fund.
(2)
(a)
The board shall establish policies for the management of:
(i)
the office, including:
(A)
an investment management code of conduct and associated compliance policy;
(B)
a policy for the strategic allocation of trust fund assets;
(C)
a soft dollar policy; and
(D)
a policy articulating the board's investment philosophy for trust fund assets;
and
(ii)
the trust fund.
(b)
Policies that the board adopts shall:
(i)
be consistent with the enabling act, the Utah Constitution, and other applicable
state law;
(ii)
reflect undivided loyalty to the beneficiaries consistent with fiduciary duties;
(iii)
be designed to prudently optimize trust fund returns and increase the value of the
trust fund, consistent with the balancing of short-term and long-term interests, so
that the fiduciary duty of intergenerational equity is met;
(iv)
be designed to maintain the integrity of the trust fund and prevent the
misapplication of money in the trust fund;
(v)
enable the board to oversee the activities of the office; and
(vi)
otherwise be in accordance with standard trust principles as provided by state law.
(3)
The board shall:
(a)
establish a conflict of interest policy for the office and board members;
(b)
establish policies governing the evaluation, selection, and monitoring of independent
custodial arrangements;
(c)
ensure that the office is managed according to law;
(d)
establish bylaws to govern the board;
(e)
establish the compensation of the director;
(f)
annually examine the compensation and performance of the director as part of the
board's budget review process
which may include responses from:
(i)
interested parties;
(ii)
the advocacy office director; and
(iii)
the director of the School and Institutional Trust Lands Administration
;
(g)
annually report the director's compensation to the Legislature; and
(h)
(i)
adopt policies to provide for annual training of board members regarding
their
the board member's
duties and responsibilities; and
(ii)
ensure that any training described in Subsection
(3)(h)(i)
complies with
Title
63G, Chapter 22, State Training and Certification Requirements
.
(4)
The board may:
(a)
after conferring with the director:
(i)
hire one or more consultants to advise the board, director, or office on issues
affecting the management of the trust fund; and
(ii)
pay compensation to any consultant hired under Subsection
(4)(a)(i)
, subject to
budgetary constraints; and
(b)
submit to the director a written question or set of questions concerning policies and
practices affecting the management of the trust fund.
Section 7. Section
53D-1-401
is amended to read:
53D-1-401
. Appointment of director -- Qualifications -- Nature of employment --
Removal by petition.
(1)
The office shall be managed by a director
A director shall manage the office
.
(2)
If there is a vacancy in the director position, the board shall appoint an individual as
director.
(3)
The board shall ensure that an individual appointed as director possesses:
(a)
outstanding professional qualifications pertinent to the prudent investment of trust
fund money; and
(b)
expertise in institutional investment management.
(4)
The director is an at-will employee who
may be removed by
the board
may remove
at
any time with or without cause.
(5)
The state treasurer, as board chair, may consult about the appointment of the director
with the chair of the School and Institutional Trust Beneficiaries' Advocacy Council,
pursuant to Subsection
53D-2-303(4)(b)
.
(5)
(a)
The advocacy office director may submit a written petition to the board
requesting the board to remove the director for cause, explained in the petition.
(b)
The board shall hold a hearing on a petition under Subsection
(5)(a)
within 45 days
after receiving the petition.
(c)
If, after holding a hearing, the board finds by a preponderance of the evidence that
there is cause for removing the director, the board shall remove the director.
Section 8. Section
53D-1-403
is amended to read:
53D-1-403
. Reports.
(1)
At least annually, the director shall report in person to the Legislative Management
Committee, the governor, and the advocacy office, concerning the office's investments,
performance, estimated distributions, and other activities.
(2)
The director shall report to the board concerning the work of the director and the
investment activities and other activities of the office:
(a)
in a public meeting at least
six
four
times per year; and
(b)
as
otherwise requested by
the board
requests
.
(3)
(a)
Before November 1 of each year, the
The
director shall
:
annually post a report
for the general public on the office website concerning the office's investments,
performance, estimated distributions, and other activities.
(i)
submit a written report to school community councils, created under Section
53G-7-1202
, and charter trust land councils, established under Section
53G-7-1205
,
concerning the office's investments, performance, estimated distributions, and
other activities; and
(ii)
post the written report described in Subsection
(3)(a)(i)
on the office's website.
(b)
A report under Subsection
(3)(a)
shall be prepared in simple language designed to
be understood by the general public.
(4)
The director shall provide to the board:
(a)
monthly written reports on the activities of the office;
(b)
(a)
quarterly financial reports; and
(c)
(b)
any other report
requested by
the board
requests
.
(5)
The director shall:
(a)
invite the advocacy office director to attend any meeting at which the director gives a
report under this section; and
(b)
provide the advocacy office director:
(i)
a copy of any written report prepared under this section; and
(ii)
any other report
requested by
the advocacy office director
requests
.
Section 9. Section
53D-1-501
is amended to read:
53D-1-501
. Nominating committee -- Membership -- Terms -- Vacancies --
Compensation.
(1)
There is established a School and Institutional Trust Fund Nominating Committee.
(2)
The
seven-member
nominating committee consists of:
(a)
four
five
members
, appointed by

the state treasurer
appoints
upon
recommendation by the advocacy office director
, each of whom is a member of a
respected professional investment organization;
including:
(i)
four individuals with experience in the field of institutional investment or
endowments, who belong to a respected professional investment organization, or
who previously served on the School and Institutional Trust Fund Office's Board
of Trustees; and
(ii)
one investment officer who administers a public institutional investment fund or
public university endowment in the state; and
(b)
two members of the School and Institutional Trust Beneficiaries' Advocacy Council
the advocacy council chair appoints, contingent on the member's council membership.
(b)
the chief investment officer of the University of Utah endowment;
(c)
the chief investment officer of the Utah State University endowment; and
(d)
the advocacy office director.
(3)
An individual appointed as a member of the nominating committee under Subsection
(2)(a)
shall be appointed based on the individual's expertise
, contacts, or connections
in:
(a)
investment finance;
(b)
institutional asset management;
(c)
trust administration; or
(d)
the practice of law in the areas of capital markets, securities law, trusts, foundations,
endowments, investment finance, institutional asset management, or trust
administration.
(4)
The term of a member appointed under Subsection
(2)(a)
is four years.
(5)
A nominating committee member shall serve until a successor is appointed and
qualified.
(6)
(a)
If a member appointed under Subsection
(2)(a)
leaves office, the vacancy shall be
filled in the same manner as the initial appointment under Subsection
(2)(a)
.
(b)
An individual appointed to fill a vacancy under Subsection
(6)(a)
serves the
remainder of the unexpired term.
(7)
A member of the nominating committee may not receive compensation or benefits for
the member's service, but may receive per diem and travel expenses in accordance with:
(a)
Section
63A-3-106
;
(b)
Section
63A-3-107
; and
(c)
rules made by the Division of Finance pursuant to Sections
63A-3-106
and
63A-3-107
.
(8)
The advocacy office shall provide staff support to the nominating committee.
(9)
The nominating committee shall, by a majority vote, establish, amend, and publish
guidelines consistent with this section to govern the nominating process.
Section 10. Section
53D-2-102
is amended to read:
2. School and Institutional Trust Beneficiaries' Advocacy Act
53D-2-102
. Definitions.
As used in this chapter:
(1)
"Advocacy
committee
council
" means the
Land Trusts Protection and Advocacy
Committee
School and Institutional Trust Beneficiaries' Advocacy Council
, created in
Section
53D-2-202
Section
53D-2-302
.
(2)
"Advocacy director" means the director of the advocacy office, appointed as described
in
Section
53D-2-203
Section
53D-2-302
.
(3)
"Advocacy office" means the
Land Trusts Protection and
School and Institutional Trust
Beneficiaries'
Advocacy Office, created in Section
53D-2-201
.
(4)
"Institutional beneficiary" means a trust beneficiary that is not subject to the School
LAND Trust Program.
(5)
"Interests" means the trust beneficiaries' interests listed in Subsection
53D-2-201(5)
.
(6)
"Rights" means the trust beneficiaries' rights listed in Subsection
53D-2-201(4)
.
(4)
"School and institutional trust" or "trust" includes:
(a)
school and institutional trust lands, as defined in Section
53C-1-103
, and related
assets; and
(b)
funds and investments of school and institutional trust land revenue, as described in
Title 53D, Chapter 1, School and Institutional Trust Fund Management Act
.
(7)
"School and institutional trust" or "trust" means the respective trusts declared in the
Utah Constitution, Article XX, Section 2, under which the state is to hold, as school and
institutional trust lands, the lands granted under Sections 6, 8, and 12 of the Utah
Enabling Act for the respective beneficiaries and purposes stated in the Utah Enabling
Act, other lands that may be added to those trusts, and pursuant to which the state holds
in trusts the funds and investments described in Title 53D, Chapter 1, School and
Institutional Trust Fund Management Act.
(5)
"School and Institutional Trust System" means:
(a)
the School and Institutional Trust Lands Administration, described in
Title 53C,
School and Institutional Trust Lands Management Act
;
(b)
the School and Institutional Trust Fund Office, described in
Title 53D, Chapter 1,
School and Institutional Trust Fund Management Act
;
(c)
the Land Trusts Protection and Advocacy Office, described in this chapter; and
(d)
the School LAND Trust Program, described in Sections
53F-2-404
and
53G-7-1206
.
(8)
"School LAND Trust Program" means the program at the State Board of Education
which administers trust distributions to public schools, described in Sections
53F-2-404

and
53G-7-1206
.
(6)
(9)
(a)
"Trust beneficiaries" means
those for whose benefit the school and
institutional trust is managed and preserved, as required by:
(a)
the Utah Enabling Act;
(b)
the Utah Constitution; and
(c)
state law.
the schools and institutions listed in Subsection
53D-2-201(3)
.
(b)
"Trust beneficiaries" does not include:
(i)
other institutions or agencies;
(ii)
the public at large; or
(iii)
the general welfare of the state.
(10)
"Trustee agencies" means:
(a)
the School and Institutional Trust Lands Administration, described in Title 53C,
School and Institutional Trust Lands Management Act; and
(b)
the School and Institutional Trust Fund Office, described in Title 53D, Chapter 1,
School and Institutional Trust Fund Management Act.
(11)
"Trustee boards" means:
(a)
the School and Institutional Trust Lands Administration Board of Trustees; and
(b)
the School and Institutional Trust Fund Office Board of Trustees.
Section 11. Section
53D-2-201
is repealed and reenacted to read:
2. School and Institutional Trust Beneficiaries' Advocacy Office
53D-2-201
. Advocacy office -- Office creation -- Trust beneficiaries and liaisons
-- Beneficiary interests and rights.
(1)
There is created the School and Institutional Trust Beneficiaries' Advocacy Office with
delegated agent authority to:
(a)
represent the trust beneficiaries by performing the duties set forth in this chapter; and
(b)
advocate for, monitor, and preserve the trust beneficiaries' rights and interests.
(2)
Notwithstanding Subsection
(1)
, a trust beneficiary may choose to represent the trust
beneficiary in any specific issue or matter as described in this chapter.
(3)
Trust beneficiaries and the trust beneficiaries' principal liaisons are:
(a)
public schools, represented by the staff member who administers the School LAND
Trust Program, created in Section
53G-7-1206
;
(b)
Schools for the Deaf, described in Subsection
53E-8-201(1)(a)
, represented by the
superintendent for the State Board of Education, or the superintendent's designee;
(c)
Schools for the Blind, described in Subsection
53E-8-201(1)(b)
, represented by the
superintendent for the State Board of Education, or the superintendent's designee;
(d)
University of Utah, represented by the president of the University of Utah or the
president's designee;
(e)
College of Mines and Earth Sciences, described in Section
53H-4-208
, represented
by the Dean of the College of Science at the University of Utah, or the dean's
designee;
(f)
Colleges of Education, described in Section
53C-3-105
, represented by the chair of
the Utah Council of Education Deans, or the chair's designee;
(g)
Utah State University, represented by the president of Utah State University or the
president's designee;
(h)
Miners Hospital, described in Section
53H-4-207
, represented by the director of the
Craig H. Neilsen Rehabilitation Hospital, or the director's designee;
(i)
Utah State Hospital, represented by the superintendent of the Utah State Hospital,
created in Section
26B-1-201
, or the superintendent's designee;
(j)
Juvenile Justice and Youth Services, represented by the director of the Division of
Juvenile Justice and Youth Services, created in Section
80-5-103
, or the director's
designee;
(k)
Reservoirs, represented by the director of the Division of Water Resources, created
in Section
73-10-18
, or the director's designee; and
(l)
Public Buildings, represented by the executive director of the Capitol Preservation
Board, created in Section
63O-2-201
.
(4)
Trust beneficiary rights include:
(a)
the rights recognized in Section
53C-1-102
; and
(b)
applicable rights of a trust beneficiary under Utah trust law, including the right to:
(i)
information related to the trust beneficiary's respective trust;
(ii)
timely notice of significant trust activities;
(iii)
distribution of funds as established in law;
(iv)
receive regular accountings;
(v)
impartial treatment; and
(vi)
challenge actions or decisions deemed unlawful or not in the trust beneficiary's
best interests.
(5)
Trust beneficiary interests include:
(a)
those recognized in Section
53C-1-102
;
(b)
the proper and lawful management of trust lands, trust funds, and trust distributions;
(c)
the preservation of trust beneficiary rights; and
(d)
access to information regarding measurable performance by trustee agencies and the
advocacy office.
Section 12. Section
53D-2-202
is repealed and reenacted to read:
53D-2-202
. Advocacy office -- Authority and responsibilities.
(1)
The advocacy office, acting with undivided loyalty to the trust beneficiaries, shall:
(a)
represent the trust beneficiaries by:
(i)
staying informed on the administration of the trust assets, budgets, policies, and
rules, including:
(A)
significant School and Institutional Trust Lands Administration transactions;
and
(B)
the School and Institutional Trust Fund Office investments and investment
policies;
(ii)
communicating on the trust beneficiaries' behalf when appropriate and lawful,
unless a trust beneficiary notifies the advocacy office in writing that the
beneficiary will communicate on the beneficiary's own behalf involving a specific
issue or matter; and
(iii)
reporting to trust beneficiaries and the Legislature, as described in Subsection
53D-2-402(2)(m)
;
(b)
advocate on behalf of trust beneficiaries for:
(i)
effective governance of the trusts;
(ii)
proper management and optimal performance of trust assets;
(iii)
efficient and lawful distribution of funds;
(iv)
the trust beneficiaries' current and future best interests; and
(v)
the safeguarding of the trust assets from the pursuit of another state purpose
which is inconsistent with the beneficiaries' rights and interests; and
(c)
advise the trust beneficiaries by:
(i)
assisting the trust beneficiaries' understanding of collective and respective
interests and rights;
(ii)
monitoring compliant use of trust distributions by beneficiaries as described in
Section
53D-2-501
;
(iii)
informing the trust beneficiaries of trust activities, proposals, and decisions; and
(iv)
facilitating resolutions of trust beneficiary disputes, as described in Subsection
53D-2-402(3)(b)
.
(2)
The advocacy office, whether acting through the advocacy director or the advocacy
council, or otherwise, does not have authority to nullify trustee agency actions, including
trustee board actions.
Section 13. Section
53D-2-301
is enacted to read:
3. School and Institutional Beneficiaries' Advocacy Office Governance
53D-2-301
. Advocacy office governance -- State treasurer role and duties.
(1)
The advocacy council, established in Section
53D-2-302
, and the state treasurer govern
the advocacy office with separate and distinct responsibilities enumerated in this chapter.
(2)
The state treasurer, acting in a fiduciary capacity to the trust beneficiaries, shall:
(a)
appoint an advocacy director, as provided in Section
53D-2-401
;
(b)
oversee and provide administrative support to the advocacy office;
(c)
verify compliance with reporting requirements for the advocacy director;
(d)
submit an advocacy office budget to the Legislature; and
(e)
have authority to approve a requested reduction in the annual distribution for an
institutional beneficiary under the conditions described in Subsection
53D-2-501(4)(f)
,
after consultation with the trust beneficiary and the advocacy director.
(3)
A cause of action may not be maintained against the state treasurer for an act or
omission made in the course of exercising a duty under this chapter if:
(a)
the act or omission is taken in good faith; and
(b)
the act or omission is taken in a manner the treasurer reasonably believes to be in the
best interests of the trust beneficiaries.
Section 14. Section
53D-2-302
is enacted to read:
53D-2-302
. Advocacy office governance -- Advocacy council creation, role, and
duties.
(1)
There is created the School and Institutional Trust Beneficiaries' Advocacy Council.
(2)
The advocacy council shall:
(a)
oversee the activities of the advocacy office and advise the advocacy director;
(b)
establish, update, and monitor the implementation of comprehensive strategic
planning for the advocacy office;
(c)
submit advocacy director candidate names to the state treasurer subject to Subsection
53D-2-401(1)(a)
;
(d)
determine the advocacy director's compensation and annually review the
compensation and performance of the advocacy director as part of the council's
budget review process;
(e)
make rules for the advocacy office in accordance with Title 63G, Chapter 3, Utah
Administrative Rulemaking Act;
(f)
receive reports, including the annual report described in Subsection
53D-2-402(2)(m)
,
from the advocacy director;
(g)
participate on the nominating committees of the trustee agencies as described in
Subsections
53C-1-203(2)(a)
and
53D-1-501(2)(b)
; and
(h)
develop policies and directives for the management of the advocacy office.
Section 15. Section
53D-2-303
is enacted to read:
53D-2-303
. Advocacy council -- Membership -- Meetings.
(1)
The advocacy council shall consist of the following seven members:
(a)
two individuals the School and Institutional Trust Lands Board of Trustees appoints;
(b)
one individual the School and Institutional Trust Fund Board of Trustees appoints;
(c)
one individual the state treasurer appoints;
(d)
one State Board of Education staff member who administers the School LAND Trust
Program, designated as described in Section
53G-7-1206
; and
(e)
two individuals the advocacy council appoints with consent of the state treasurer,
including:
(i)
one individual with experience relevant to trust beneficiary issues the advocacy
council chair nominates in consultation with the chairs of the trustee boards; and
(ii)
one individual representing the institutional beneficiaries the advocacy council
chair nominates in consultation with the institutional beneficiaries.
(2)
A member of the advocacy council:
(a)
may not be:
(i)
the state treasurer or a current employee of the state treasurer;
(ii)
a member of the trustee boards;
(iii)
an employee of the trustee agencies; or
(iv)
an individual currently serving in a publicly elected office;
(b)
shall have significant qualifications related to the purposes and activities of the
trusts, such as:
(i)
expertise related to the duties and obligations of the member's respective
appointing entities; and
(ii)
familiarity with lawmaking and legislative procedures; and
(c)
shall demonstrate a willingness to commit time and loyalty to the purposes of the
trust.
(3)
(a)
Except as provided in Subsections
(3)(b)
and (c), a member of the advocacy
council shall:
(i)
serve a four-year term;
(ii)
begin service July 1 with staggered terms to ensure that approximately half of the
advocacy council is appointed every two years; and
(iii)
take an oath of office the state treasurer administers that states:
"I solemnly swear to carry out my duties as a member of the School and
Institutional Trust Beneficiaries' Advocacy Council with undivided loyalty to the
trust beneficiaries, to the best of my abilities and consistent with the law."
(b)
If a vacancy occurs during the course of an appointed member's term, the appointing
entity shall immediately appoint a replacement for the unexpired term.
(c)
Upon the expiration of a member's term, the individual is eligible for one consecutive
reappointment by the respective appointing agency, except for the appointment
described in Subsection
(1)(d)
which is held by virtue of the position.
(4)
(a)
Annually, the advocacy council shall elect:
(i)
a chair; and
(ii)
a vice-chair who shall perform the duties of the chair in the absence of the chair.
(b)
The chair shall faithfully represent the will of the council to the extent the council's
will is consistent with state law.
(c)
The advocacy council chair may directly contact, or be directly contacted by, the
chairs of the trustee boards on trust matters.
(5)
By a majority vote, the advocacy council shall adopt and amend guidelines consistent
with this section regarding council business and actions.
(6)
(a)
The advocacy council shall meet at least quarterly, at a time set by the chair.
(b)
The chair or any two members of the advocacy council may call an additional
meeting.
(7)
(a)
A quorum for the transaction of business is five members of the advocacy council.
(b)
Action by a majority of the quorum present constitutes an action of the advocacy
council, except for the following actions which require a majority vote of the council
as a whole:
(i)
adopting resolutions;
(ii)
approving administrative rules;
(iii)
taking action on the request of a trustee agency; or
(iv)
terminating the advocacy director as provided in Subsection
53D-2-401(5)(b)
.
(8)
An advocacy council member may not receive compensation or benefits for the
member's service, but may receive per diem and travel expenses in accordance with:
(a)
Section
63A-3-106
;
(b)
Section
63A-3-107
; and
(c)
rules the Division of Finance makes pursuant to Sections
63A-3-106
and
63A-3-107
.
(9)
The advocacy office shall provide staff support to the advocacy council.
(10)
Advocacy council members shall annually complete a conflict-of-interest disclosure
statement, in accordance with the requirements of Title 67, Chapter 16, Utah Public
Officers' and Employees' Ethics Act.
Section 16. Section
53D-2-304
is enacted to read:
53D-2-304
. Advocacy office -- Application of other law.
(1)
The advocacy office, council, and director shall comply with all applicable law for
government records according to Title 63G, Chapter 2, Government Records Access and
Management Act.
(2)
The advocacy director:
(a)
may attend committee meetings and closed sessions of trustee boards relating to
activities, policies, or transactions impacting trust beneficiaries unless attendance is
refused pursuant to:
(i)
lawful privilege;
(ii)
other law;
(iii)
where the information is made strictly confidential under binding contract; or
(iv)
discussions regarding personnel, character, or competence of an individual; and
(b)
shall maintain the confidentiality of any information shared pursuant to Subsection
53C-1-303(1)(j)
and Section
53D-1-202
.
(3)
Notwithstanding Section
52-4-204
, and in addition to the reasons to close a meeting
under Section
52-4-205
:
(a)
the advocacy council may hold a closed meeting to discuss matters addressed in a
closed session of the trustee boards; and
(b)
any information the advocacy director shares in the closed meeting from a closed
session of the trustee boards, is strictly limited to information that the advocacy
director can lawfully share with the advocacy council and may not include any
non-public information subject to a confidentiality agreement, or any information
shared in a closed session in accordance with Subsection
52-4-205(1)(a)
.
(4)
The applicable statutes and the policies of the trustee boards govern trust beneficiaries'
direct access to meetings and records of the trustee agencies.
Section 17. Section
53D-2-401
is enacted to read:
4. School and Institutional Trust Beneficiaries' Advocacy Office Director
53D-2-401
. School and Institutional Trust Beneficiaries' Advocacy Office
director -- Appointment -- Removal.
(1)
(a)
A director shall manage the advocacy office.
(b)
If there is a vacancy in the advocacy director position, the advocacy council may
appoint an interim director and shall:
(i)
consider and interview candidates who may qualify for appointment as the
advocacy director, as described in Subsection
(1)(c)
;
(ii)
determine the two most qualified candidates; and
(iii)
submit the names of the two candidates described in Subsection
(1)(b)(ii)
to the
state treasurer as nominees for the advocacy director.
(c)
A nominee for advocacy director shall have significant expertise and qualifications
relating to trust management and the duties of the advocacy office and the advocacy
director, which may include expertise in:
(i)
business and finance;
(ii)
lawmaking and legislative procedures;
(iii)
economics;
(iv)
natural resources;
(v)
land development; or
(vi)
communication and advocacy.
(d)
The advocacy council chair may consult about the nominees for advocacy director
with the chairs of the trustee boards, as described in Subsection
53D-2-303(4)(b)
.
(2)
(a)
The state treasurer shall appoint one of the individuals described in Subsection
(1)(b)(iii)
as the advocacy director.
(b)
The state treasurer may return a submission of nominees to the advocacy council if:
(i)
the treasurer determines that the submission is incomplete;
(ii)
the submission contains unqualified candidates; or
(iii)
the submission otherwise fails to comply with the requirements of this section.
(c)
If the state treasurer declares that the state treasurer will not appoint either of the
nominees, the state treasurer and the advocacy council shall repeat the procedure for
nomination and appointment of an advocacy director until appointing a new
advocacy director, as provided in this section.
(3)
Upon the appointment of an advocacy director, the state treasurer shall administer an
oath of office which states:
"I solemnly swear to carry out my duties as the Director of the School and
Institutional Trust Beneficiaries' Advocacy Office with undivided loyalty to the trust
beneficiaries, to the best of my abilities and consistent with the law."
(4)
The advocacy director shall undergo an annual comprehensive performance review the
advocacy council conducts, which includes responses from interested parties and trustee
agency directors.
(5)
The director is an at-will employee whom the advocacy council may remove at any time
with or without cause.
(6)
The advocacy council may remove the advocacy director during a meeting that is not
closed, as described in Section
52-4-204
, if:
(a)
the advocacy council schedules the removal of the advocacy director on the agenda;
and
(b)
a majority of the council votes to remove the advocacy director.
Section 18. Section
53D-2-402
is enacted to read:
53D-2-402
. Advocacy director -- Powers and duties.
(1)
The advocacy director has broad authority to manage the responsibilities and duties of
the advocacy office in a prudent and professional manner, subject to advocacy council
oversight.
(2)
To fulfill the responsibilities and duties of the advocacy office described in Section
53D-2-201
, the advocacy director shall:
(a)
maintain direct relationships and open communication with individuals who are key
to fulfilling the state's trustee obligations and duties related to the trusts;
(b)
facilitate the cooperative formulation of protocols for interactions between the
advocacy office and trustee agencies, and the advocacy office and beneficiaries;
(c)
identify and maintain a list of principal liaisons for each trust beneficiary to facilitate
orderly communication, representation, advocacy, and reporting;
(d)
serve as an official intermediary through which information can be provided to or
received from trust beneficiaries and to which the trustee agencies can give notice to
a beneficiary;
(e)
seek necessary and accurate information regarding management of trust assets;
(f)
be permitted to attend any relevant trust presentation, discussion, meeting, or other
gathering relating to activity, policy, or transactions impacting trust beneficiaries
subject to the limitations of Subsection
53D-2-304(2)
;
(g)
monitor and, if necessary, recommend that the state auditor review activities
involving trust assets or distributions;
(h)
promote accurate record keeping of all records relevant to each respective trust and
distributions to trust beneficiaries;
(i)
report at least quarterly, or as requested, to the advocacy council and the state
treasurer on the current activities of the advocacy office;
(j)
annually submit a proposed advocacy office budget to the state treasurer after
consultation with the advocacy council;
(k)
develop training about trust principles in consultation with the trustee agencies to:
(i)
annually conduct and document completion of the training for the advocacy
council and advocacy office staff; and
(ii)
make the training available for voluntary use by trustee agencies and elected
officials;
(l)
report annually on advocacy office activity, a summary of each trust beneficiary's
trust assets and use of distributions, and an overview of the respective responsibilities
of trustee agencies to:
(i)
the advocacy council;
(ii)
the state treasurer;
(iii)
all trust beneficiaries;
(iv)
the trustee agencies;
(v)
the State Board of Education;
(vi)
the relevant appropriations subcommittee;
(vii)
the governor's office; and
(viii)
the general public by posting on the advocacy office website;
(m)
upon request, report in person to a trust beneficiary or the Legislature;
(n)
draft and submit proposed rules to the advocacy council for review and adoption;
(o)
respond to external and media requests for information related to trust beneficiaries'
interests and rights;
(p)
speak on behalf of trust beneficiaries about activities related to the beneficiaries'
trusts, unless a trust beneficiary notifies the advocacy office in writing that the trust
beneficiary will speak on the trust beneficiary's own behalf involving a specific issue
or matter;
(q)
review proposed legislation that affects trust beneficiaries and advocate for
legislative changes that serve the best interests and rights of the trust beneficiaries;
(r)
promote awareness of the trusts and trust principles described in Subsection
53C-1-102(2)
to beneficiaries, stakeholders, elected officials, and the public; and
(s)
facilitate an objective nomination process for trustee board positions pursuant to
Sections
53C-1-203
and
53D-1-501
.
(3)
The advocacy director may:
(a)
advocate for or against ballot propositions which impact trust beneficiaries with an
exemption from Section
20A-11-1203
in such instances; and
(b)
provide an impartial forum and facilitate informal resolution of a conflict or dispute
among affected trust beneficiaries upon the trust beneficiaries' consent, or upon
agreement among affected trust beneficiaries and trustee agencies.
(4)
With regard to reviewing the activities described in Subsection
(2)(g)
, the advocacy
director may have access to the financial reports and other data, subject to the limitations
of Subsection
53D-2-304(2)
.
Section 19. Section
53D-2-501
is enacted to read:
5. School and Institutional Trust Distribution Accountability
53D-2-501
. Trust distributions -- Disposition -- Trust beneficiary requirements
-- Advocacy office role.
(1)
The School and Institutional Trust Fund Office shall initiate trust distributions in the
state finance system and coordinate distribution announcements to trust beneficiaries
and the public.
(2)
To preserve the confidence in and impact of each beneficiary's permanent fund, trust
beneficiaries are subject to uniform accountability measures for the use and reporting of
trust fund distributions.
(3)
Trust distributions to public schools through the School LAND Trust Program are:
(a)
subject to Sections
53F-2-404
and
53G-7-1206
; and
(b)
exempt from the accountability requirements described in Subsection
(4)
.
(4)
Each institutional beneficiary shall comply with accountability requirements for trust
distributions which include:
(a)
maintaining clear records of distributions and expenditures within the institutional
beneficiary's institutional accounting and budgeting processes;
(b)
annually convening an advisory group composed of stakeholders, including the
impacted end users to:
(i)
adopt and review internal guidance for acceptable expenditures of trust
distributions; and
(ii)
develop an annual spending plan for the estimated distributions;
(c)
obtaining approval of the annual spending plan from the institution's governing body,
chief financial officer, or designee;
(d)
contributing information and documentation for an annual report of trust beneficiary
distributions and uses the advocacy office publishes;
(e)
investing any retained distributions, up to an amount equal to two prior years'
distributions, in a state approved fund;
(f)
managing retained distributions which exceed the allowable amount in Subsection
(4)(e)
by returning any excess to the respective permanent fund or seeking a
reduction in distribution per Subsection
53D-2-301(2)(e)
; and
(g)
participating in periodic compliance reviews by the advocacy office.
(5)
The advocacy council shall make rules to monitor, review, and advise the institutional
beneficiaries on the obligations described in Subsection
(4)
.
(6)
The advocacy council, advocacy director, and advocacy office do not have authority to
nullify decisions or actions of the School LAND Trust Program or an institutional
beneficiary.
(7)
The advocacy office may not:
(a)
perform formal audits; or
(b)
modify distributions to trust beneficiaries.
(8)
The advocacy office shall refer reports of fraud, waste, and abuse, or recurring
noncompliance on the reporting of or the allowable use of distributions by trust
beneficiaries to the state auditor for further action.
Section 20. Section
53D-2-601
, which is renumbered from Section 53D-2-204 is renumbered
and amended to read:
6. School and Institutional Trust Beneficiaries' Advocacy Account
53D-2-204
53D-2-601
. School and Institutional Trust Beneficiaries' Advocacy
Account -- Funding of advocacy office operations.
(1)
As used in this section:
(a)
"Account" means the
Land Trusts Protection and
School and Institutional Trust
Beneficiaries'
Advocacy Account created in this section.
(b)
"School and Institutional Trust Fund Office director" or "SITFO director" means the
director of the School and Institutional Trust Fund Office, appointed under Section
53D-1-401
.
(c)
"Trust fund" means the same as that term is defined in Section
53D-1-102
.
(d)
"Trust fund earnings" means the same as that term is defined in Section
53D-1-203
.
(2)
There is created an enterprise fund known as the
Land Trusts Protection and
School
and Institutional Trust Beneficiaries'
Advocacy Account.
(3)
The account is funded by money deposited into the account as provided in Subsection
(4)
.
(4)
(a)
Except as provided in Subsection
(4)(c)
, the
SITFO director
School and
Institutional Trust Fund Office
shall deposit into the account a total amount of
money, taken proportionately from trust fund earnings according to the value of the
various funds established for the trust beneficiaries, that is equal to the annual
appropriation that the Legislature makes to the advocacy office.
(b)
The advocacy office may use money in the account to pay for the advocacy office's
operating costs
consistent with a budget submitted and approved pursuant to
Subsection
53D-2-301(2)(e)
.
(c)
If the amount of money deposited into the account under Subsection
(4)(a)
in any
fiscal year exceeds the amount required by the advocacy office during that fiscal year
to fund advocacy office operations, the
SITFO director
School and Institutional
Trust Fund Office
shall, in the following fiscal year, reduce the amount deposited
into the account under Subsection
(4)(a)
by the amount of the unspent appropriation.
Section 21. Section
53F-9-201
is amended to read:
53F-9-201
. Uniform School Fund -- Contents -- Trust Distribution Account.
(1)
As used in this section:
(a)
"Annual distribution calculation" means, for a given fiscal year, the average of:
(i)
5% of the average market value of the State School Fund for that fiscal year; and
(ii)
the distribution amount for the prior fiscal year, multiplied by the sum of:
(A)
one;
(B)
the percent change in student enrollment from the school year two years prior
to the prior school year; and
(C)
the actual total percent change of the consumer price index during the last 12
months as measured in June of the prior fiscal year.
(b)
"Average market value of the State School Fund" means the results of a calculation
completed by the SITFO director each fiscal year that averages the value of the State
School Fund for the past 20 consecutive quarters ending in the prior fiscal year.
(c)
"Consumer
price index"
Price Index"
means the Consumer Price Index for All
Urban Consumers: All Items Less Food
Energy, as published by the Bureau of
Labor Statistics of the United States Department of Labor.
(d)
"SITFO director" means the director of the School and Institutional Trust Fund
Office appointed under Section
53D-1-401
.
(e)
"State School Fund investment earnings distribution amount" or "distribution
amount" means, for a fiscal year, the lesser of:
(i)
the annual distribution calculation; or
(ii)
5% of the average market value of the State School Fund.
(2)
The Uniform School Fund, a special revenue 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 under Title 67, Chapter 4a, Revised Uniform
Unclaimed Property Act;
(c)
money transferred to the fund under Section
63J-1-207
; and
(d)
all other constitutional or legislative allocations to the fund, including:
(i)
appropriations for the Minimum School Program, enrollment growth, and inflation
under Section
53F-9-201.1
; and
(ii)
revenues received by donation.
(3)
(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)
in accordance with Subsection
(4)
, quarterly deposits of the State School Fund
investment earnings distribution amount from the prior fiscal year;
(ii)
all interest earned on the Trust Distribution Account in the prior fiscal year; and
(iii)
any unused appropriation for the administration of the School LAND Trust
Program, as described in Subsection
53F-2-404(1)(c)
.
(4)
If, at the end of a fiscal year, the Trust Distribution Account has a balance remaining
after subtracting the appropriation amount described in Subsection
53F-2-404(1)(a)
for
the next fiscal year, the SITFO director shall, during the next fiscal year, apply the
amount of the remaining balance from the prior fiscal year toward the current fiscal
year's distribution amount by reducing a quarterly deposit to the Trust Distribution
Account by the amount of the remaining balance from the prior fiscal year.
(5)
On or before October 1 of each year, the SITFO director shall:
(a)
in accordance with this section, determine the distribution amount for the following
fiscal year; and
(b)
report the amount described in Subsection
(5)(a)
as the funding amount, described in
Subsection
53F-2-404(1)(c)
, for the School LAND Trust Program, to:
(i)
the State Treasurer;
(ii)
the Legislative Fiscal Analyst;
(iii)
the Division of Finance;
(iv)
the director of the
Land Trusts Protection and Advocacy Office
School and
Institutional Trust Beneficiaries' Advocacy Office
, appointed under
Section
53D-2-203
Section
53D-2-401
;
(v)
the School and Institutional Trust Lands Administration created in Section
53C-1-201
;
(vi)
the state board; and
(vii)
the Governor's Office of Planning and Budget.
(6)
The School and Institutional Trust Fund Board of Trustees created in Section
53D-1-301

shall:
(a)
annually review the distribution amount; and
(b)
make recommendations, if necessary, to the Legislature for changes to the formula
for calculating the distribution amount.
(7)
Upon appropriation by the Legislature, the SITFO director shall place in the Trust
Distribution Account funds for the School LAND Trust Program as described in
Subsections
53F-2-404(1)(a)
and
(c)
.
Section 22. Section
53G-7-1206
is amended to read:
53G-7-1206
. School LAND Trust Program.
(1)
As used in this section:
(a)
"Charter trust land council" means a council established by a charter school
governing board under Section
53G-7-1205
.
(b)
"Council" means a school community council or a charter trust land council.
(c)
"LAND trust plan" means a school's plan to use School LAND Trust Program money
to implement a component of the school's success plan.
(d)
"School community council" means a council established at a district school in
accordance with Section
53G-7-1202
.
(e)
"Teacher and student success plan" or "success plan" means the same as that term is
defined in Section
53G-7-1301
.
(2)
This section creates the School LAND (Learning And Nurturing Development) Trust
Program under the state board to:
(a)
provide financial resources to public schools to enhance or improve student academic
achievement and implement a component of a district school or charter school's
teacher and student success plan; and
(b)
involve parents of a school's students in decision making regarding the expenditure
of School LAND Trust Program money allocated to the school.
(3)
To receive an allocation under Section
53F-2-404
:
(a)
a district school shall have established a school community council in accordance
with Section
53G-7-1202
;
(b)
a charter school shall have established a charter trust land council in accordance with
Section
53G-7-1205
; and
(c)
the school's principal shall provide a signed, written assurance that the school is in
compliance with Subsection
(3)(a)
or
(b)
.
(4)
(a)
A council shall create a program to use the school's allocation distributed under
Section
53F-2-404
to implement a component of the school's success plan, including:
(i)
the school's identified most critical academic needs;
(ii)
a recommended action plan to meet the identified academic needs;
(iii)
a specific listing of any programs, practices, materials, or equipment that the
school will need to implement the action plan to have a direct impact on the
instruction of students and result in measurable increased student performance; and
(iv)
how each proposed expenditure in the action plan will be used to implement a
component of the action plan to enhance or improve academic excellence at the
school.
(b)
(i)
A council shall create and vote to adopt a LAND trust plan in a meeting of the
council at which a quorum is present.
(ii)
If a majority of the quorum votes to adopt a LAND trust plan, the LAND trust
plan is adopted.
(c)
A council shall:
(i)
post a LAND trust plan that is adopted in accordance with Subsection
(4)(b)
on
the School LAND Trust Program reporting website; and
(ii)
include with the LAND trust plan a report noting the number of council members
who voted for or against the approval of the LAND trust 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 LAND
trust plan.
(ii)
If a local school board disapproves a LAND trust plan:
(A)
the local school board shall provide a written explanation of why the LAND
trust plan was disapproved and request the school community council who
submitted the LAND trust plan to revise the LAND trust plan; and
(B)
the school community council shall submit a revised LAND trust plan in
response to a local school board's request under Subsection
(4)(d)(ii)(A)
.
(iii)
Once a LAND trust plan has been approved by a local school board, a school
community council may amend the LAND trust plan, subject to a majority vote of
the school community council and local school board approval.
(e)
A charter trust land council's LAND trust plan is subject to approval by the:
(i)
charter school governing board; and
(ii)
budget officer whom the charter school governing board appoints.
(5)
(a)
A district school or charter school shall:
(i)
implement the program as approved;
(ii)
provide ongoing support for the council's plan and responsibilities; and
(iii)
meet state board 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 reporting website before the council
submits a plan for the following year.
(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 of students who attend the
school.
(6)
An LEA shall record the LEA's expenditures of School LAND Trust Program funds
through a financial reporting system that the board identifies to assist schools in
developing the annual report described in Subsection
(5)(b)
.
(7)
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.
(8)
(a)
The state board shall provide annual training opportunities to the entities
described in Subsection
(8)(b)
on:
(i)
the School LAND Trust Program;
(ii)
the responsibilities and formation of:
(A)
a school community council consistent with Section
53G-7-1202
; or
(B)
a charter trust land council consistent with Section
53G-7-1205
; and
(iii)
as applicable, council responsibilities as described in Section
53G-7-1203
.
(b)
The state board shall provide the training to:
(i)
a local school board or a charter school governing board;
(ii)
a district business administrator or a charter business official;
(iii)
a school district or a charter school; and
(iv)
a school community council.
(9)
The state board shall annually review a school's compliance with applicable law,
including rules adopted by the state board in accordance with Title 63G, Chapter 3, Utah
Administrative Rulemaking Act, by:
(a)
reading each School LAND Trust Program plan submitted;
(b)
reviewing proposed expenditures to be made from School LAND Trust Program
money; and
(c)
conducting an annual compliance review of an LEA using a sample of schools.
(10)
The superintendent shall calculate and initiate the annual School LAND Trust
distribution to schools through the state board's finance system to each LEA as outlined
in Section
53F-2-404
.
(11)
The superintendent shall administer the School LAND Trust website to provide
transparency and accountability to school communities and the public of School LAND
Trust plans, reports, and expenditures of trust distributions.
(12)
The state board shall designate a staff member who administers the School LAND
Trust Program to serve as a member of the
Land Trusts Protection and Advocacy
Committee
School and Institutional Trust Beneficiaries' Advocacy Council
created
under
Section
53D-2-202
Section
53D-2-302
.
Section 23.
Repealer.
Land Trusts Protection and Advocacy Office director --
Appointment -- Removal -- Power and duties.
Section 24.
Effective Date.
This bill takes effect on
July 1, 2026
.
3-12-26 9:52 AM