53D-2-501. Trust distributions -- Disposition -- Trust beneficiary requirements -- Advocacy office role.

384 words·~2 min read·/ut/title-53d/chapter-2/53d-2-501

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

Effective 7/1/2026

(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.

Enacted by Chapter 214 , 2026 General Session