Higher Education Institutional Governance

57
53H-1-210
53H-3-201
53H-3-202
53H-3-204
53H-3-205
53H-3-303
53H-3-405
53H-3-603
53H-8-202
53H-9-603
63I-5-102
63I-5-201
67-5-5
53H-1-210
53H-3-201
53H-3-202
53H-3-204
53H-3-205
53H-3-303
53H-3-405
53H-3-603
53H-8-202
53H-9-603
63I-5-102
63I-5-201
67-5-5
0
Higher Education Institutional Governance
2026 GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Chris H. Wilson
House Sponsor: Casey Snider
LONG TITLE
General Description:
This bill addresses roles and responsibilities of a higher education institution's board of
trustees and president.
Highlighted Provisions:
This bill:
consolidates and reorganizes general duties of boards of trustees for institutions of higher
education;
establishes certain aspects of the relationship between an institution's board of trustees
and the institution's president, including:
organizational governance;
roles and responsibilities in the budgeting process;
faculty and personnel issues; and
presidential performance evaluation;
establishes the authority of the board of trustees over internal audits of an institution;
enacts provisions regarding a president's authority in relation to administrative roles,
cabinet members, and the institution's general counsel;
enacts provisions regarding the duties of an institution's legal counsel, including requiring
the Board of Higher Education to make rules regarding the scope of the role of an
institution's legal counsel;
prohibits the president of an institution from retaining outside legal counsel for litigation;
amends the membership of a technical college board of trustees with a service region
containing a certain number of school districts;
requires reporting of certain institutional compensation information;
amends provisions regarding agencies hiring and paying for outside legal counsel rather
than the attorney general; and
makes technical and conforming changes.
Money Appropriated in this Bill:
None
Other Special Clauses:
None
Utah Code Sections Affected:
AMENDS:
53H-1-210
, as renumbered and amended by Laws of Utah 2025, First Special Session,
Chapter 8
53H-3-201
, as enacted by Laws of Utah 2025, First Special Session, Chapter 8
53H-3-205
, as renumbered and amended by Laws of Utah 2025, First Special Session,
Chapter 8
53H-3-303
, as renumbered and amended by Laws of Utah 2025, First Special Session,
Chapter 8
53H-3-405
, as renumbered and amended by Laws of Utah 2025, First Special Session,
Chapter 8
53H-3-603
, as renumbered and amended by Laws of Utah 2025, First Special Session,
Chapter 8
53H-8-202
, as renumbered and amended by Laws of Utah 2025, First Special Session,
Chapter 8
53H-9-603
, as renumbered and amended by Laws of Utah 2025, First Special Session,
Chapter 8
63I-5-102
, as last amended by Laws of Utah 2023, Chapter 16
63I-5-201
, as last amended by Laws of Utah 2022, Chapters 169, 447
67-5-5
, as last amended by Laws of Utah 2025, Chapter 302
REPEALS AND REENACTS:
53H-3-202
, as renumbered and amended by Laws of Utah 2025, First Special Session,
Chapter 8
53H-3-204
, as renumbered and amended by Laws of Utah 2025, First Special Session,
Chapter 8
Be it enacted by the Legislature of the state of Utah:
Section 1. Section
53H-1-210
is amended to read:
53H-1-210
. Utah Board of Higher Education successor to rights and duties.
(1)
The
board
Utah Board of Higher Education
is the successor to and is vested with all
rights, duties, obligations, and liabilities to which
its
the Utah Board of Higher
Education's
predecessor governing boards, the Utah System of Technical Colleges
Board of Trustees, and the Coordinating Council of Higher Education were subject,
except as otherwise provided by law.
(2)
For the Utah System of Technical Colleges Board of Trustees, the
board
Utah Board of
Higher Education
:
(a)
is vested with all rights, titles, privileges, powers, obligations, liabilities, immunities,
franchises, endowments, assets, property, and claims;
(b)
shall fulfill and perform all obligations, including obligations relating to outstanding
bonds and notes; and
(c)
may continue an administrative rule.
Section 2. Section
53H-3-201
is amended to read:
53H-3-201
. General provisions -- Definitions -- General powers and duties.
Reserved.
(1)
To assist the Utah Board of Higher Education to fulfill the board's statutory duty to
control, oversee, and regulate the Utah System of Higher Education under Subsection
53H-1-203(1)(a)(ii)
, each board of trustees shall act in alignment with the board and
through the following powers and duties:
(a)
act on behalf of the institution in performing fiduciary and other duties,
responsibilities, and functions that either statute or the board authorizes;
(b)
facilitate communication between the institution and the community;
(c)
in consultation with stakeholders in the institution's region, prepare, approve, and
monitor progress on a strategic plan for the institution that aligns with:
(i)
state attainment goals;
(ii)
workforce needs;
(iii)
the institution's role, mission, and distinctiveness;
(iv)
board goals and metrics described in Section
53H-1-203
; and
(v)
the Utah Board of Higher Education strategic plan;
(d)
carry out duties regarding institutional governance described in Subsection
53H-1-203(2)(m)
;
(e)
regarding the institution's president:
(i)
participate in a presidential search in accordance with Section
53H-3-302
;
(ii)
(A)
establish key performance indicators and annually evaluate the president's
performance against the key performance indicators; and
(B)
consult the board regarding the president's performance to help the board
facilitate the board's responsibility in Subsection
53H-3-303(11)(b)
to evaluate
presidential performance; and
(iii)
consult with the president regarding:
(A)
the organization and structure of the institution; and
(B)
the organization and governance of faculty, tenure and post-tenure, and other
personnel issues;
(f)
consult with the president and approve a recommendation to the board to annually
determine the institution's proposed tuition and general fees;
(g)
assist the president in executing budget processes, including:
(i)
approving an annual budget and fund balances;
(ii)
planning, implementing, and executing fundraising and development projects for
supplementing institutional appropriations; and
(iii)
establishing budgetary policies, including:
(A)
policies regarding benefits and endowment investments; and
(B)
presidential expenditures, including thresholds that require notification of
expenditures to the board of trustees;
(h)
review, consider, and approve the institution's awards, credentials, minors, and
emphases, including programs in accordance with Section
53H-3-603
and board
guidelines and board policies, changes to existing programs, and expedited program
approval and termination procedures to meet market needs;
(i)
approve budgetary and audit policies that are necessary for the effective
administration of the institution;
(j)
oversee internal audits of the institution, including serving as or creating a
subcommittee of the board of trustees to serve as the institution's audit committee, as
that term is defined in Section
63I-5-102
;
(k)
report to the board in accordance with statutory requirements and board policies; and
(l)
perpetuate and strengthen alumni and community identification with the institution's
traditions and goals.
(2)
The board shall provide independent, professional staffing and advising support to
institutional boards of trustees.
Section 3. Section
53H-3-202
is repealed and reenacted to read:
53H-3-202
. Degree-granting institution board of trustees -- Unique powers and
duties.
In addition to the duties described in Section
53H-3-201
, a board of trustees of a
degree-granting institution may select recipients of honorary degrees.
Section 4. Section
53H-3-204
is repealed and reenacted to read:
53H-3-204
. Technical college board of trustees -- Unique powers and duties.
In addition to the duties described in Section
53H-3-201
, a technical college board of
trustees shall, regarding the strategic plan described in Subsection
53H-3-201(2)
, consult with
the board, other higher education institutions, school districts, and charter schools within the
technical college's region regarding the delivery of technical education within the region.
Section 5. Section
53H-3-205
is amended to read:
53H-3-205
. Technical college boards of trustees -- Membership -- Appointments.
(1)
As used in this section
,
:
(a)
"Higher education institution" means the same as that term is defined in Section
53H-9-603
.
(b)
"Technical college service area" means the geographic area served by each technical
college as described in Section
53H-3-1202
.
(2)
A technical college board of trustees consists of:
(a)
one member
of the local school board for each school district
each from no more
than four of the local school boards for the school districts
in the technical college
service area, appointed by the local school board to which the member belongs
, in a
rotation that the technical college specifies in accordance with Subsection
(6)
;
(b)
except as provided in Subsection
(3)(b)
, one individual who is a member of the
higher education institution board of trustees, appointed by the higher education
institution board of trustees; and
(c)
a number of individuals, appointed by the governor with the advice and consent of
the Senate and in accordance with
Title 63G, Chapter 24, Part 2, Vacancies
, that is:
(i)
seven for:
(A)
Tooele Technical College;
(B)
Uintah Basin Technical College; and
(C)
Dixie Technical College;
(ii)
eight for:
(A)
Bridgerland Technical College;
(B)
Ogden-Weber Technical College;
(C)
Davis Technical College; and
(D)
Southwest Technical College; or
(iii)
nine for Mountainland Technical College.
(3)
(a)
In appointing the members described in Subsection
(2)(c)
, the governor shall
appoint individuals who represent the interests of business, industry, or labor in the
technical college service area.
(b)
If no member of the institution of higher education board of trustees lives within the
technical college service area, the institution of higher education board of trustees
may nominate an individual to be appointed by the governor with the advice and
consent of the Senate instead of appointing a member described in Subsection
(2)(b)
.
(4)
(a)
The governor may remove a member appointed under Subsection
(2)(c)
or
(3)(b)

for cause.
(b)
The governor shall consult with the president of the Senate before removing a
member appointed under Subsection
(2)(c)
or
(3)(b)
.
(5)
A member described in Subsection
(2)(c)
shall comply with the conflict of interest
provisions described in
Title 63G, Chapter 24, Part 3, Conflicts of Interest
.
(6)
(a)
A technical college with a service region containing more than four school
districts shall create, in the bylaws of the technical college's board of trustees, a
rotation schedule for local school board representation on the technical college's
board of trustees.
(b)
The commissioner, on behalf of the board, shall review the bylaw components
described in Subsection
(6)(a)
before the technical college formally adopts the bylaw
amendments.
(c)
The rotation required for an appointed board member under Subsection
(2)(a)
applies
only to a board member who is appointed on or after May 6, 2026.
Section 6. Section
53H-3-303
is amended to read:
53H-3-303
. Duties and responsibilities of the president of an institution of higher
education -- Approval by board of trustees.
(1)
As used in this section,

"president" means the president of an institution.
(2)
The president of each institution may exercise grants of power and authority as the
board delegates, as well as the necessary and proper exercise of powers and authority
not denied to the institution or the institution's administration, faculty, or students by the
board or by law, to ensure the effective and efficient administration and operation of the
institution consistent with the statewide strategic plan for higher education.
(3)
A president may:
(a)
appoint or employ

:
(i)
administrative officers,
other cabinet members, and a general counsel described in
Section
53H-3-405
:
(A)
who are at-will employees;
(B)
who serve the institution in the administrative, cabinet, or general counsel role
at the pleasure of the president; and
(C)
whom the president may remove at any time; and
(ii)
deans, faculty members, professional personnel, and support personnel;
(b)
prescribe duties for a position described in Subsection
(3)(a)
; and
(c)
determine the salary for an employed position described in Subsection
(3)(a)
, in
accordance with the institution's human resources policies.
(4)
(a)
A president may, after consultation with the institution's board of trustees,
exercise powers related to the institution's employees, including faculty and persons
under contract with the institution, by implementing:
(i)
(a)
policies governing personnel;
(ii)
(b)
furloughs;
(iii)
(c)
reductions in force;
(iv)
(d)
program reductions or discontinuance;
(v)
(e)
early retirement incentives that provide cost savings to the institution; or
(vi)
(f)
other measures that provide cost savings, facilitate efficiencies, or otherwise
enable the institution to meet the institution's mission and role.
(5)
A president shall:
(a)
control and manage the budget and finances of the institution
in consultation with the
board of trustees in accordance with Section
53H-3-201
, including by, as determined
by the president:
(i)
establishing the institution's budget; and
(ii)
establishing or adjusting administrative or academic unit budgets;

and
(b)
subject to Section
53H-8-202
, establish:
(i)
tuition for the institution, including both resident and nonresident tuition if the
institution is a degree-granting institution, subject to the approval of the board as
described in Section
53H-1-203
; and
(ii)
fees and other charges for the institution; and
(c)
establish the organization and structure of the institution, including by, as determined
by the president, creating, merging, or eliminating a college, department, or other
administrative or academic unit of the institution.
(6)
Subject to the approval of the institution's board of trustees, a president:
(a)
shall establish a budgetary policy, such as policy regarding benefits and endowment
investments;
(b)
(a)
subject to Section
53H-3-406
, shall provide for the constitution, government,
and organization of the faculty and administration, including:
(i)
enacting and implementing rules;
(ii)
ensuring that the faculty may only have jurisdiction over:
(A)
academic requirements for admission, degrees, and certificates; and
(B)
course curriculum and instruction;
(iii)
permitting faculty to have jurisdiction over a matter other than a matter described
in Subsection
(6)(b)(ii)
(6)(a)(ii)
only if the following entities expressly authorize
or delegate such power:
(A)
the Legislature;
(B)
the board;
(C)
institution's board of trustees; or
(D)
the institution's president; and
(iv)
if the institution is a degree-granting institution, the establishment of a prescribed
system of tenure; and
(c)
(b)
may authorize the faculty to determine the general initiation and direction of
instruction and of the examination, admission, and classification of students.
(7)
A president may establish policies for the administration and operation of the institution
that:
(a)
are consistent with the institution's role that the board establishes, rules which the
board enacts, and the laws of the state; and
(b)
may provide for:
(i)
administrative, faculty, student, and joint committees with jurisdiction over
specified institutional matters;
(ii)
student government and student affairs organizations;
(iii)
the establishment of institutional standards in furtherance of the ideals of higher
education to which the institution and the institution's administration, faculty, and
students subscribe and foster; and
(iv)
the holding of classes on legal holidays, other than Sunday.
(8)
A president shall manage the president's institution as a part of the Utah System of
Higher Education.
(9)
In performing any of the acts described in this section, a president may, in the
president's sole discretion, seek input from the institution's faculty, staff, or students.
(10)
The board shall establish guidelines relating to the roles and relationships between
presidents and boards of trustees, including those matters for which law requires the
approval of a board of trustees before implementation by the president.
(11)
(a)
A president is subject to

:
(i)
an annual performance review and evaluation that the institution's board of
trustees administers, in accordance with Section
53H-3-201
, and in consultation
with the Utah Board of Higher Education; and
(ii)
regular review and evaluation that the board administers, in consultation with the
institution's board of trustees, through a process the board approves.
(b)
Only the board may
formally assess a president's performance,
formally declare a
president's standing
,
or take other formal action
to evaluate
regarding
a president.
Section 7. Section
53H-3-405
is amended to read:
53H-3-405
. Degree-granting institution attorneys -- Appointment -- Duties.
(1)
Recognizing the status of degree-granting institutions within the Utah System of Higher
Education as bodies politic and corporate, the president of a degree-granting institution
may appoint attorneys to:
(a)
provide legal advice to the degree-granting
institution's administration
institution
;
and
(b)
coordinate legal affairs within the degree-granting institution.
(2)
A degree-granting institution shall fund compensation costs and related office expenses
for an attorney described in Subsection
(1)
within existing budgets.
(3)
The board shall coordinate the activities of attorneys described in Subsection
(1)
.
(4)
To ensure alignment with the requirements described in Subsection
(1)
, the board shall
make rules, in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking
Act, that:
(a)
define the scope of duties and responsibilities of attorneys; and
(b)
provide guidance to presidents for establishing lines of accountability for attorneys.
(4)
(5)
An attorney described in Subsection
(1)
:
(a)
may not:
(i)
conduct litigation;
(ii)
settle a claim covered by the State Risk Management Fund;
or
(iii)
issue a formal legal opinion;
and
or
(iv)
serve in or exercise:
(A)
a role outside the scope of authority that board rules described in Subsection
(4)
establish; or
(B)
an administrative role, function, or office, except for a primarily legal or
regulatory role or as outlined in the board's rules described in Subsection
(4)
;
and
(b)
shall cooperate with the Office of the Attorney General in providing legal
representation to a degree-granting institution.
(6)
Notwithstanding Subsection
(1)
, a president of a degree-granting institution may not
appoint, contract, hire, or otherwise retain outside legal counsel for the purpose of
prosecuting or defending litigation without the written consent of the attorney general or
the attorney general's designee.
Section 8. Section
53H-3-603
is amended to read:
53H-3-603
. Changes in curriculum -- Substantial alterations in institutional
operations -- Program approval -- Periodic review of programs -- Career and technical
education curriculum changes.
(1)
As used in this section,

"program of instruction" means a program of curriculum that
leads to the completion of a degree, diploma, certificate, or other credential.
(2)
(a)
Under procedures and policies approved by the board and developed in
consultation with each institution of higher education, each institution of higher
education may make such changes in the institution of higher education's curriculum
as necessary to better effectuate the institution of higher education's primary role; and
(b)
subject to Subsection
(2)(a)
, an institution of higher education's faculty shall
establish and have primary responsibility for the curriculum of a course within a
program of instruction at the institution.
(3)
The board shall establish criteria for whether an institution of higher education may
approve a new program of instruction, including criteria related to whether:
(a)
the program of instruction meets identified workforce needs;
(b)
the institution of higher education is maximizing collaboration with other institutions
of higher education to provide for efficiency in offering the program of instruction;
(c)
the new program of instruction is within the institution of higher education's mission
and role; and
(d)
the new program of instruction meets other criteria determined by the board.
(4)
(a)
Except as board policy permits, an institution of higher education may not
establish a branch, extension center, college, or professional school.
(b)
The president of an institution of higher education may, with the approval of the
institution of higher education's board of trustees, establish a new program of
instruction that meets the criteria described in Subsection
(3)
, subject to board review
for pathway articulation.
(c)
An institution of higher education shall notify the board of a proposed new program
of instruction, including how the proposed new program of instruction meets the
criteria described in Subsection
(3)
.
(d)
The board shall establish procedures and guidelines for institutional boards of
trustees to consider an institutional proposal for a new program of instruction
described in Subsection
(4)(b)
.
(5)
(a)
(i)
Except as provided in Subsection
(5)(a)(ii)
, a degree-granting institution may
not offer a degree with a credit-hour requirement, comprising general education
and degree-specific requirements, that exceeds 120 total credit hours.
(ii)
The board may authorize a degree-granting institution to exceed the credit-hour
limit described in Subsection
(5)(a)(i)
if the relevant degree:
(A)
is required for professional licensure; or
(B)
has a nationally recognized accreditation standard that mandates a higher
credit-hour minimum, including circumstances where additional coursework is
necessary to protect public health, safety, and welfare.
(b)
The board shall develop a process to grant conditional approval of accelerated
three-year degrees to allow for the implementation of an accelerated degree upon
accreditation.
(6)
The president of an institution of higher education may discontinue a program of
instruction in accordance with criteria that the president and the institution of higher
education's board of trustees establish.
(7)
(a)
The board shall conduct a periodic review of all new programs of instruction,
including those funded by gifts, grants, and contracts, no later than two years after the
first cohort to begin the program of instruction completes the program of instruction.
(b)
The board may conduct a periodic review of any program of instruction at an
institution of higher education, including a program of instruction funded by a gift,
grant, or contract.
(c)
The board shall conduct:
(i)
at least once every five years, at least one review described in Subsection
(7)(b)
of
each program of instruction at each institution; and
(ii)
annually, a qualitative and quantitative review of academic disciplines across the
system, including enrollment, graduation rates, and workforce placement,
ensuring that the board conducts a review of all disciplines within the system at
least once every five years.
(d)
Following a review described in this Subsection
(7)
that finds that a program is
underperforming, as the board defines, across the system of higher education or at an
individual institution, and after providing the relevant institution of higher education
an opportunity to respond to the board's review of a given program of instruction, the
board:
(i)
shall modify, consolidate, or terminate the program of instruction; and
(ii)
may require an institution to develop a performance improvement plan and
annually report back to the board regarding the plan.
(e)
The board shall:
(i)
develop qualitative and quantitative standards for program review under this
Subsection
(7)
; and
(ii)
ensure the application of the standards the board develops under Subsection
(7)(e)(i)
in each program review.
(8)
In making decisions related to career and technical education curriculum changes, the
board shall coordinate
,
on behalf of the boards of trustees of higher education institutions
,
a review of the proposed changes by the State Board of Education to ensure an orderly
and systematic career and technical education curriculum that eliminates overlap and
duplication of course work with high schools and technical colleges.
(9)
The board shall demonstrate compliance with Subsection
(7)
by:
(a)
creating a list of programs and corresponding review schedules;
(b)
upon request of the Higher Education Appropriations Subcommittee, providing the
list described in Subsection
(9)(a)
; and
(c)
providing a written report on or before October 1 to the Higher Education
Appropriations Subcommittee of each year regarding relevant findings from the
reviews conducted under Subsection
(7)
.
(10)
On or before October 1, 2026, if the Higher Education Appropriations Subcommittee
finds the board to be out of compliance with Subsection
(9)
, the Legislature shall:
(a)
deduct 10% of the appropriation described in Section
53H-8-302
for the following
fiscal year; and
(b)
deduct an additional 10% of the appropriation described in Section
53H-8-302
for
each subsequent year of noncompliance up to a maximum deduction of 30%.
Section 9. Section
53H-8-202
is amended to read:
53H-8-202
. Combined requests for appropriations -- Board review of operating
budgets -- Submission of budgets -- Recommendations -- Hearing request --
Appropriation formulas -- Allocations -- Dedicated credits -- Financial affairs.
(1)
As used in this section,

"research university" means the University of Utah or Utah State
University.
(2)
(a)
Subject to Subsection
(3)
, the board shall recommend a combined appropriation
for the operating budgets of institutions and the board for inclusion in a state
appropriations act.
(b)
The board's combined budget recommendation shall include:
(i)
employee compensation
for each institution that demonstrates that the institution
is meeting the board's faculty teaching and instructional workload metrics
;
(ii)
mandatory costs, including building operations and maintenance, fuel, and power;
(iii)
performance funding described in
Part 3
, Performance Funding;
(iv)
statewide and institutional priorities, including scholarships, financial aid, and
technology infrastructure; and
(v)
enrollment growth.
(c)
The board's recommendations shall be available for presentation to the governor and
to the Legislature at least 30 days before the convening of the Legislature, and shall
include schedules showing the recommended amounts for each institution and the
board, including separately funded programs or divisions.
(d)
The recommended appropriations shall be determined by the board only after the
board has reviewed the proposed institutional operating budgets, and has consulted
with the various institutions and board staff in order to make appropriate adjustments.
(3)
In the combined request for appropriation, the board shall differentiate between
appropriations requested for academic education and appropriations requested for
technical education.
(4)
(a)
Institutional operating budgets shall be submitted to the board at least 90 days
before the convening of the Legislature in accordance with procedures established by
the board.
(b)
Except as provided in Sections
53H-9-604
and
53H-9-504
, funding requests
pertaining to capital facilities and land purchases shall be submitted in accordance
with procedures prescribed by the Division of Facilities Construction and
Management.
(5)
(a)
The budget recommendations of the board shall be accompanied by full
explanations and supporting data
.
, including, regarding employee compensation:
(i)
each institution's current staffing salary base, including the sources of funds for
any salary base;
(ii)
the total amount each institution spends on compensation; and
(iii)
the method each institution and the board uses for calculating compensation.
(b)
The appropriations recommended by the board shall be made with the dual objective
of:
(i)
justifying for institutions appropriations consistent with the institutions' needs, and
consistent with the financial ability of the state; and
(ii)
determining an equitable distribution of funds among the respective institutions in
accordance with the aims and objectives of the statewide master plan for higher
education.
(6)
(a)
The board shall request a hearing with the governor on the recommended
appropriations.
(b)
After the governor delivers the governor's budget message to the Legislature, the
board shall request hearings on the recommended appropriations with the Higher
Education Appropriations Subcommittee.
(c)
If either the total amount of the state appropriations or its allocation among the
institutions as proposed by the Legislature or the Higher Education Appropriations
Subcommittee is substantially different from the recommendations of the board, the
board may request further hearings with the Legislature or the Higher Education
Appropriations Subcommittee to reconsider both the total amount and the allocation.
(7)
The board may devise, establish, periodically review, and revise formulas for the
board's use and for the use of the governor and the Higher Education Appropriations
Subcommittee in making appropriation recommendations.
(8)
(a)
The board shall recommend to each session of the Legislature the minimum
tuitions, resident and nonresident, for each institution which it considers necessary to
implement the budget recommendations.
(b)
Subject to Subsection
(13)
, the board may fix the tuition, fees, and charges for each
institution at levels the board finds necessary to meet budget requirements.
(9)
Money allocated to each institution by legislative appropriation may be budgeted in
accordance with institutional work programs approved by the board, provided that the
expenditures funded by appropriations for each institution are kept within the
appropriations for the applicable period.
(10)
The dedicated credits, including revenues derived from tuitions, fees, federal grants,
and proceeds from sales received by the institutions are appropriated to the respective
institutions to be used in accordance with institutional work programs.
(11)
An institution may do the institution's own purchasing, issue the institution's own
payrolls, and handle the institution's own financial affairs under the general supervision
of the board.
(12)
(a)
If the Legislature appropriates money in accordance with this section, the money
shall be distributed to the board and institutions to fund the items described in
Subsection
(2)(b)
.
(b)
An institution shall use any compensation money the Legislature appropriates under
Subsection
(2)(b)(i)
for compensation, which may include merit- or market-based
increases.
(13)
The board shall create policies requiring an institution of higher education to waive
transcript fees for a student who is under the age of 26 and:
(a)
is homeless, as defined in Section
26B-3-207
;
(b)
is a person who is homeless, as defined in Section
35A-5-302
;
(c)
is an individual whose primary nighttime residence is a location that is not designed
for or ordinarily used as a sleeping accommodation for an individual;
(d)
is a homeless child or youth, as defined in 42 U.S.C. Sec. 11434a;
(e)
is in the custody of the Division of Child and Family Services; or
(f)
was in the custody of the Division of Child and Family Services but is no longer in
the custody of the Division of Child and Family Services due to the individual's age.
Section 10. Section
53H-9-603
is amended to read:
53H-9-603
. Technical colleges -- Relationships with other public and higher
education institutions -- Agreements -- Priorities -- New capital facilities.
(1)
As used in this section, "higher education institution" means:
(a)
Utah State University for:
(i)
Bridgerland Technical College;
(ii)
Tooele Technical College; and
(iii)
Uintah Basin Technical College;
(b)
Weber State University for:
(i)
Ogden-Weber Technical College; and
(ii)
Davis Technical College;
(c)
Utah Valley University for Mountainland Technical College;
(d)
Southern Utah University for Southwest Technical College; and
(e)
Utah Tech University for Dixie Technical College.
(2)
A technical college may enter into agreements:
(a)
with other higher education institutions to cultivate cooperative relationships; or
(b)
with other public and higher education institutions to enhance career and technical
education within the technical college's region.
(3)
Before a technical college develops new instructional facilities, the technical college
shall give priority to:
(a)
maintaining the technical college's existing instructional facilities for both secondary
and adult students;
(b)
coordinating with the president of the technical college's degree-granting partner and
entering into any necessary agreements to provide career and technical education to
secondary and adult students that:
(i)
maintain and support existing higher education career and technical education
programs; and
(ii)
maximize the use of existing higher education facilities; and
(c)
developing cooperative agreements with school districts, charter schools, other
higher education institutions, businesses, industries, and community and private
agencies to maximize the availability of career and technical education instructional
facilities for both secondary and adult students.
(4)
(a)
Before submitting a funding request pertaining to new capital facilities and land
purchases to the board, a technical college shall:
(i)
ensure that all available instructional facilities are maximized in accordance with
Subsections
(3)(a)
through
(c)
; and
(ii)
coordinate the request with the president of the technical college's
degree-granting partner, if applicable.
(b)
The Division of Facilities Construction and Management shall make a finding that
the requirements of this section are met before the Division of Facilities Construction
and Management may consider a funding request from the board pertaining to new
capital facilities and land purchases for a technical college.
(c)
A technical college may not construct, approve the construction of, or consent to the
construction of a career and technical education facility without approval of the
Legislature.
(5)
Before acquiring new fiscal and administrative support structures, a technical college
shall:
(a)
review the use of existing public or higher education administrative and accounting
systems, financial record systems, and student and financial aid systems for the
delivery of education in the region;
(b)
determine the feasibility of using existing systems; and
(c)
with the approval of
consult
the technical college board of trustees and the board
,
use
regarding the use of
the existing systems.
Section 11. Section
63I-5-102
is amended to read:
63I-5-102
. Definitions.
As used in this chapter:
(1)
"Agency governing board" is any board or commission that has policy making and
oversight responsibility over the agency, including the authority to appoint and remove
the agency director.
(2)
"Agency head" means a cabinet officer, an elected official, an executive director, or a
board or commission vested with responsibility to administer or make policy for a state
agency.
(3)
"Agency internal audit director" or "audit director" means the person who:
(a)
directs the internal audit program for the state agency; and
(b)
is appointed by the audit committee or, if no audit committee has been established,
by the agency head.
(4)
"Appointing authority" means:
(a)
the governor, for state agencies other than the State Tax Commission;
(b)
the Judicial Council, for judicial branch agencies;
(c)
the Utah Board of Higher Education, for higher education entities;
(d)
the State Board of Education, for entities administered by the State Board of
Education; or
(e)
the four tax commissioners, for the State Tax Commission.
(5)
"Audit committee" means

:
(a)
a standing committee composed of members who:
(a)
(i)
are appointed by an appointing authority;
(b)
(ii)
(i)
(A)
do not have administrative responsibilities within the agency; and
(ii)
(B)
are not an agency contractor or other service provider; and
(c)
(iii)
have the expertise to provide effective oversight of and advice about internal
audit activities and services
.
; or
(b)
for an institution of higher education, as that term is defined in Section
53H-1-101
,
the institution's board of trustees or a subcommittee of the institution's board of
trustees.
(6)
"Audit plan" means a prioritized list of audits to be performed by an internal audit
program within a specified period of time.
(7)
"Higher education entity" means the Utah Board of Higher Education, an institution of
higher education board of trustees, or each higher education institution.
(8)
"Internal audit" means an independent appraisal activity established within a state
agency as a control system to examine and evaluate the adequacy and effectiveness of
other internal control systems within the agency.
(9)
"Internal audit program" means an audit function that:
(a)
is conducted by an agency, division, bureau, or office, independent of the agency,
division, bureau, or office operations;
(b)
objectively evaluates the effectiveness of agency, division, bureau, or office
governance, risk management, internal controls, and the efficiency of operations; and
(c)
is conducted in accordance with the current:
(i)
International Standards for the Professional Practice of Internal Auditing; or
(ii)
The Government Auditing Standards, issued by the Comptroller General of the
United States.
(10)
"Judicial branch agency" means each administrative entity of the judicial branch.
(11)
(a)
"State agency" means:
(i)
each department, commission, board, council, agency, institution, officer,
corporation, fund, division, office, committee, authority, laboratory, library, unit,
bureau, panel, or other administrative unit of the state; or
(ii)
each state public education entity.
(b)
"State agency" does not mean:
(i)
a legislative branch agency;
(ii)
an independent state agency as defined in Section
63E-1-102
;
(iii)
a county, municipality, school district, special district, or special service district;
or
(iv)
any administrative subdivision of a county, municipality, school district, special
district, or special service district.
Section 12. Section
63I-5-201
is amended to read:
63I-5-201
. Internal auditing programs -- State agencies.
(1)
(a)
The departments of Government Operations, Agriculture, Commerce, Cultural
and Community Engagement, Corrections, Workforce Services, Environmental
Quality, Health, Human Services, Natural Resources, Public Safety, and
Transportation, and the State Tax Commission shall conduct various types of
auditing procedures as determined by the agency head or governor.
(b)
The governor may, by executive order, require a state agency not described in
Subsection
(1)(a)
to establish an internal audit program.
(c)
The governor shall ensure that each state agency that reports to the governor has
adequate internal audit coverage.
(2)
(a)
The Administrative Office of the Courts shall establish an internal audit program
under the direction of the Judicial Council, including auditing procedures for courts
not of record.
(b)
The Judicial Council may, by rule, require other judicial agencies to establish an
internal audit program.
(3)
(a)
Utah Tech University, the University of Utah, Utah State University, Salt Lake
Community College, Southern Utah University, Utah Valley University, Weber State
University, and Snow College shall establish an internal audit program under the
direction of the Utah Board of Higher Education.
(b)
The Utah Board of Higher Education may issue policies requiring other higher
education entities or programs to establish an internal audit program.
(c)
The board of trustees of each institution of higher education described in this
Subsection
(3)
shall:
(i)
serve as the audit committee for the institution; or
(ii)
establish a subcommittee of the board of trustees to serve as the audit committee
for the institution.
(4)
The State Board of Education shall establish an internal audit program that provides
internal audit services for each program administered by the State Board of Education.
(5)
Subject to Section
32B-2-302.5
, the internal audit division of the Department of
Alcoholic Beverage Services shall establish an internal audit program under the
direction of the Alcoholic Beverage Services Commission.
Section 13. Section
67-5-5
is amended to read:
67-5-5
. Hiring of legal counsel for agencies -- Costs.
(1)
Except where specifically authorized by the Utah Constitution
,
or statutes
,
:
(a)
no agency
shall
may
hire legal counsel
,
;
and

(b)
the attorney general alone shall have the sole right to hire legal counsel for each
such
agency.

(2)
Where the Legislature has provided by statute for separate agency counsel,
no such
the

counsel may
not
act as an assistant attorney general nor as a special assistant attorney
general unless the attorney general
shall so authorize
authorizes
.

(3)
Unless the attorney general hires
such
legal counsel from outside the attorney general's
office
or authorizes the agency to hire outside counsel
, the attorney general shall remain
the sole legal counsel for
that
each
agency.
If outside counsel is hired for an agency,
then the costs of any services to be rendered by this counsel shall be approved by the
attorney general before these costs are incurred. The attorney general shall approve all
billing statements from outside counsel and shall pay the full costs of this counsel unless
the agency by legislative appropriation or in the form of costs, fees, fines, penalties,
forfeitures or proceeds reserved or designated for the payment of legal fees receives
from any other source the equivalent cost or a portion thereof, in which case the attorney
general may bill the agency for the services; provided, the agency may deduct any
unreimbursed costs and expenses incurred by the agency in connection with the legal
service rendered.
(4)
If the attorney general authorizes an agency to hire outside counsel under Subsection
(3)
,
and if the agency hires outside counsel, the agency is responsible for the costs of
services the outside counsel renders to the agency.
Section 14.
Effective Date.
This bill takes effect on
May 6, 2026
.
3-10-26 1:59 PM