53H-8 - Finance
Title 53H > 53H-8
Sections (38)
General Provisions
53H-8-101 - General provisions — Definitions.
Budgets and Financing
53H-8-201 - General provisions — Definitions.
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.
53H-8-202(1) As used in this section,“research university” means the University of Utah or Utah State University. 53H-8-202(2) 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.The board’s combined budget recommendation shall include:employee compensation;mandatory costs, including building operations and maintenance, fuel, and power;performance funding described in Part 3, Performance Funding;statewide and institutional priorities, including scholarships, financial aid, and technology infrastructure; andenrollment growth.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.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. 53H-8-202(3) In the combined request for appropriation, the board shall differentiate between appropriations requested for academic education and appropriations requested for technical education. 53H-8-202(4) 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.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. 53H-8-202(5) The budget recommendations of the board shall be accompanied by full explanations and supporting data.The appropriations recommended by the board shall be made with the dual objective of:justifying for institutions appropriations consistent with the institutions’ needs, and consistent with the financial ability of the state; anddetermining an equitable distribution of funds among the respective institutions in accordance with the aims and objectives of the statewide master plan for higher education. 53H-8-202(6) The board shall request a hearing with the governor on the recommended appropriations.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.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. 53H-8-202(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. 53H-8-202(8) 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.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. 53H-8-202(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. 53H-8-202(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. 53H-8-202(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. 53H-8-202(12) 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). 53H-8-202(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:is homeless, as defined in Section 26B-3-207;is a person who is homeless, as defined in Section 35A-5-302;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;is a homeless child or youth, as defined in 42 U.S.C. Sec. 11434a;is in the custody of the Division of Child and Family Services; orwas 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.
53H-8-203 - Proposed tuition increases — Notice — Hearings.
53H-8-203(1) If an institution considers increasing tuition rates for undergraduate students in the process of preparing or implementing its budget, it shall hold a meeting to receive public input and response on the issue. 53H-8-203(2) The institution shall advertise the hearing required under Subsection (1) using the following procedure:the institution shall advertise the institution’s intent to consider an increase in student tuition rates:in the institution’s student newspaper twice during a period of 10 days before the meeting; andfor each county where the institution has a campus, as a class A notice under Section 63G-30-102, for at least 10 days before the meeting; andthe advertisement shall state that the institution will meet on a certain day, time, and place fixed in the advertisement, which shall not be less than seven days after the day the advertisement is published, for the purpose of hearing comments regarding the proposed increase and to explain the reasons for the proposed increase. 53H-8-203(3) The form and content of the notice shall be substantially as follows:“NOTICE OF PROPOSED TUITION INCREASEThe (name of the higher education institution) is proposing to increase student tuition rates. This would be an increase of ______ %, which is an increase of $______ per semester for a full-time resident undergraduate student. All concerned students and citizens are invited to a public hearing on the proposed increase to be held at (meeting place) on (date) at (time).” 53H-8-203(4) The institution shall provide the following information to those in attendance at the meeting required under Subsection (1):the current year’s student enrollment for:the State System of Higher Education, if a systemwide increase is being considered; orthe institution, if an increase is being considered for just a single institution;total tuition revenues for the current school year;projected student enrollment growth for the next school year and projected tuition revenue increases from that anticipated growth; anda detailed accounting of how and where the increased tuition revenues would be spent.The enrollment and revenue data required under Subsection (4)(a) shall be broken down into majors or departments if the proposed tuition increases are department or major specific. 53H-8-203(5) If the institution does not make a final decision on the proposed tuition increase at the meeting, it shall announce the date, time, and place of the meeting where that determination shall be made.
53H-8-204 - Higher education cost disclosure.
53H-8-204(1) Each institution within the Utah system of higher education shall, at the time of registration, plainly disclose to all of the institution’s undergraduate resident students the following amounts, in dollar figures for a full-time equivalent student:the full cost of instruction;the amount collected from student tuition and fees; andthe difference between the amounts described under Subsections (1)(a) and (b). 53H-8-204(2) The disclosure under Subsection (1)(c) shall also clearly indicate that this balance was paid by state tax dollars and other money.
53H-8-205 - Fiscal year.
The fiscal year for each institution and for the board begins on July 1 and ends on June 30 in each year.
53H-8-206 - Use of revenue for athletic gender equity.
An institution of higher education shall annually use for the purposes described in Title IX of the Education Amendments of 1972, 20 U.S.C. Sec. 1681 et seq., an amount of revenue equal to the total amount of sales and use tax revenue collected under Title 59, Chapter 12, Sales and Use Tax Act : 53H-8-206(1) during the one-year period beginning on July 1, 1997, and ending on June 30, 1998; and 53H-8-206(2) on amounts paid for admission to athletic events at the institution of higher education.
53H-8-207 - Retention of net reimbursed overhead revenues.
53H-8-207(1) For each fiscal year, all budget documents for the system of higher education shall reflect retention by the institutions’ net reimbursed overhead revenues for support of research and related programs under policies established by the board. These overhead revenues may not be considered a dedicated credit. 53H-8-207(2) The board, in conjunction with institutions within the system, shall provide the Legislature, through the Office of Legislative Fiscal Analyst, with a complete accounting of the net reimbursed overhead revenues on an annual basis. This accounting shall include actual expenditures for the prior fiscal year, budgeted expenditures for the current fiscal year, and planned expenditures for the following fiscal year.
53H-8-208 - Board designated state educational agent for federal contracts and aid — Individual research grants — Powers of institutions or foundations under authorized programs.
53H-8-208(1) The board is the designated state educational agency authorized to negotiate and contract with the federal government and to accept financial or other assistance from the federal government or any of its agencies in the name of and in behalf of the state of Utah, under terms and conditions as may be prescribed by congressional enactment designed to further higher education.Nothing in this chapter alters or limits the authority of the Division of Facilities Construction and Management to act as the designated state agency to administer programs on behalf of and accept funds from federal, state, and other sources, for capital facilities for the benefit of higher education. 53H-8-208(2) Subject to policies and procedures established by the board, an institution of higher education and the institution of higher education’s employees may apply for and receive grants or research and development contracts within the educational role of the recipient institution.A program described in Subsection (2)(a) may be conducted by and through the institution, or by and through any foundation or organization that is established for the purpose of assisting the institution in the accomplishment of the institution’s purposes. 53H-8-208(3) An institution or the institution’s foundation or organization engaged in a program authorized by the board may do the following:enter into contracts with federal, state, or local governments or the federal, state, or local governments’ subsidiary agencies or departments, with private organizations, companies, firms, or industries, or with individuals for conducting the authorized programs;subject to the approval of the controlling state agency, conduct authorized programs within any of the penal, corrective, or custodial institutions of this state and engage the voluntary participation of inmates in those programs;accept contributions, grants, or gifts from, and enter into contracts and cooperative agreements with, any private organization, company, firm, industry, or individual, or any governmental agency or department, for support of authorized programs within the educational role of the recipient institution, and may agree to provide matching funds with respect to those programs from resources available to the institution; andretain, accumulate, invest, commit, and expend the funds and proceeds from programs funded under Subsection (3)(c), including the acquisition of real and personal property reasonably required for the institution or the institution’s foundation or organization’s accomplishment, except that no portion of the funds and proceeds may be diverted from or used for purposes other than those authorized or undertaken under Subsection (3)(c), or may ever become a charge upon or obligation of the state of Utah or the general funds appropriated for the normal operations of the institution unless otherwise permitted by law. 53H-8-208(4) Except as provided in Subsection (4)(b), all contracts and research or development grants or contracts requiring the use or commitment of facilities, equipment, or personnel under the control of an institution of higher education are subject to the approval of the board.The board may delegate the approval of a contract or grant described in Subsection (4)(a) to an institution of higher education board of trustees.If the board makes a delegation described in Subsection (4)(b)(i), the board of trustees shall annually report to the board on all approved contracts or grants.
53H-8-209 - Personal use expenditures for officers and employees of institutions of higher education.
53H-8-209(1) As used in this section:“Employee” means a person who is not an elected or appointed officer and who is employed on a full- or part-time basis by an institution of higher education.”Officer” means a person who is elected or appointed to an office or position within an institution of higher education.”Personal use expenditure” means an expenditure made without the authority of law that:is not directly related to the performance of an activity as an officer or employee of an institution of higher education and the board;primarily furthers a personal interest of an officer or employee of an institution of higher education and the board or the family, a friend, or an associate of an officer or employee of an institution of higher education and the board; andwould constitute taxable income under federal law.”Personal use expenditure” does not include:a de minimis or incidental expenditure; ora state vehicle or a monthly stipend for a vehicle that an officer or employee uses to travel to and from the officer or employee’s official duties, including a minimal allowance for a detour as provided by the institution of higher education and the board.”Public funds” means the same as that term is defined in Section 51-7-3. 53H-8-209(2) An officer or employee of an institution of higher education and the board may not:use public funds for a personal use expenditure; orincur indebtedness or liability on behalf of, or payable by, an institution of higher education and the board for a personal use expenditure. 53H-8-209(3) If the institution of higher education and the board determines that an officer or employee of an institution of higher education and the board has intentionally made a personal use expenditure in violation of Subsection (2), the institution of higher education and the board shall:require the officer or employee to deposit the amount of the personal use expenditure into the fund or account from which:the personal use expenditure was disbursed; orpayment for the indebtedness or liability for a personal use expenditure was disbursed;require the officer or employee to remit an administrative penalty in an amount equal to 50% of the personal use expenditure to the institution of higher education and the board; anddeposit the money received under Subsection (3)(b) into the operating fund of the institution of higher education and the board. 53H-8-209(4) Any officer or employee of an institution of higher education and the board who has been found by the institution of higher education and the board to have made a personal use expenditure in violation of Subsection (2) may appeal the finding of the institution of higher education and the board.The institution of higher education and the board shall establish an appeal process for an appeal made under Subsection (4)(a). 53H-8-209(5) Subject to Subsection (5)(b), an institution of higher education and the board may withhold all or a portion of the wages of an officer or employee of the institution of higher education and the board who has violated Subsection (2) until the requirements of Subsection (3) have been met.If the officer or employee has requested an appeal under Subsection (4), the institution of higher education and the board may only withhold the wages of the officer or employee after the appeal process has confirmed that the officer or employee violated Subsection (2). 53H-8-209(6) Nothing in this chapter immunizes an officer or employee of an institution of higher education and the board from or precludes any criminal prosecution or civil or employment action for an unlawful personal use expenditure. 53H-8-209(7) An officer or employee of an institution of higher education who is convicted of misusing public money or public property under Section 76-8-402 may not disburse public funds or access public accounts.
53H-8-210 - Higher education strategic reinvestment.
53H-8-210(1) As used in this section:“Reinvestment funds” means the amount of money the Legislature appropriates to the board for strategic reinvestment in accordance with this section.”Strategic reinvestment plan” means a plan described in Subsection (3) that each degree-granting institution develops to reallocate reinvestment funds to certain strategic investments. 53H-8-210(2) The board may transfer to a degree-granting institution the reinvestment funds dedicated to the degree-granting institution if:for the 2026 fiscal year:the respective degree-granting institution provides to the board the degree-granting institution’s strategic reinvestment plan;the board approves the degree-granting institution’s strategic reinvestment plan; andafter receiving a report from the board regarding the strategic reinvestment plan in the meeting of the Executive Appropriations Committee in September 2025, the Executive Appropriations Committee makes a determination that the relevant degree-granting institution’s strategic reinvestment plan satisfies the requirements of this section; andfor each of the 2027 and 2028 fiscal years:the respective degree-granting institution provides to the board a report on the degree-granting institution’s progress in executing the degree-granting institution’s strategic reinvestment plan; andafter receiving a report from the board regarding the degree-granting institution’s execution of the strategic reinvestment plan in the meeting of the Executive Appropriations Committee in September of 2026 and 2027, respectively, the Executive Appropriations Committee makes a determination that the relevant degree-granting institution has progressed in executing the degree-granting institution’s strategic reinvestment plan in accordance with this section. 53H-8-210(3) Each degree-granting institution shall:prepare and submit the degree-granting institution’s strategic reinvestment plan in accordance with Subsections (3)(b) and (c) based on:demonstrated enrollment data;completion rate and timely completion;discipline-related professional outcomes, including placement, employment, licensure, and wage outcomes;current and future localized and statewide workforce demands;program-level cost; andthe degree-granting institution’s mission and role within the statewide system;in consultation with the board, develop a strategic reinvestment plan that:identifies programs, courses, degrees, departments, colleges, or other divisions of the degree-granting institution, operational efficiencies, and other components of the degree-granting institution’s instruction and administrative functions, including dean positions and other administration positions, that merit further investment;identifies programs, courses, degrees, departments, colleges or other divisions of the degree-granting institution, operational inefficiencies, and other components of the degree-granting institution’s instruction and administrative functions, including dean positions and other administration positions, that the degree-granting institution will reduce or eliminate to shift resources, in an amount at least equal to the amount of reinvestment funds dedicated to the degree-granting institution, to the strategic investments described in Subsection (3)(b)(i);retains a core general education curricula that enables students to acquire critical thinking, problem solving, citizenship, communication, and other durable skills; andincludes an accounting demonstrating the reallocation of resources from the reduced or eliminated items described in Subsection (3)(b)(ii) to the strategic investments described in Subsection (3)(b)(i) in the following amounts:for fiscal year 2026, at least 30% of the total of the reinvestment funds dedicated to the degree-granting institution;for fiscal year 2027, at least 70% of the total of the amount of reinvestment funds dedicated to the degree-granting institution; andfor fiscal year 2028, 100% of the total of the reinvestment funds dedicated to the degree-granting institution; andbefore a date that the board identifies in each of 2026 and 2027, submit to the board a report on the degree-granting institution’s progress in executing the degree-granting institution’s strategic reinvestment plan, which may include modifications to the plan if the modified plan meets the requirements of this section. 53H-8-210(4) The board shall:during the 2025 fiscal year:establish standards for the reallocations described in the strategic reinvestment plans; andprovide guidance to the degree-granting institutions of higher education on metrics and evaluative processes for the degree-granting institutions to use in analyzing programs and budgets to develop the strategic reinvestment plan;review each degree-granting institution’s strategic reinvestment plan and approve plans that meet the requirements of this section; andreport on each degree-granting institution’s strategic reinvestment plan to:in August of 2025, 2026, and 2027, the Higher Education Appropriations Subcommittee; andin September of 2025, 2026, and 2027, the Executive Appropriations Committee. 53H-8-210(5) Each year, after receiving the board report described in Subsection (4)(c)(i), the Higher Education Appropriations Subcommittee shall make a recommendation to the Executive Appropriations Committee regarding each degree-granting institution’s strategic reinvestment plan and compliance with this section.Each year, after receiving the board report described in Subsection (4)(c)(ii), the Executive Appropriations Committee shall make a determination, for each degree-granting institution individually, regarding:for fiscal year 2026, whether the degree-granting institution’s strategic reinvestment plan satisfies the requirements of this section; andfor each of fiscal years 2027 and 2028, whether the degree-granting institution has progressed in executing the degree-granting institution’s strategic reinvestment plan in accordance with this section. 53H-8-210(6) A degree-granting institution may use reinvestment funds:for the strategic investments described in Subsection (3)(b)(i); andfor the reduced or eliminated items described in Subsection (3)(b)(ii) in the following amounts:for fiscal year 2026, no more than 70% of the total of the reinvestment funds dedicated to the degree-granting institution; andfor fiscal year 2027, no more than 30% of the total of the reinvestment funds dedicated to the degree-granting institution.A degree-granting institution may not supplant or supplement the cost of a reduced or eliminated item described in Subsection (3)(b)(ii):through a tuition increase; orwith any state funds, except in fiscal year 2028, to the extent necessary to allow a student to complete the student’s academic program as outlined in the degree-granting institution’s approved strategic reinvestment plan. 53H-8-210(7) If a degree-granting institution fails to reallocate resources in accordance with the degree-granting institution’s reinvestment plan and this section, in preparing the higher education budgets immediately following the degree-granting institution’s failure, the Executive Appropriations Committee shall reduce appropriations for the degree-granting institution’s instruction and administration in an amount equal to the amount the degree-granting institution failed to properly reallocate. 53H-8-210(8) Each degree-granting institution shall:establish policies specifically to effectuate the strategic reinvestment plan, and that address the following:reduction or elimination of positions and other personnel decisions; andinternal institutional procedures regarding the reduction, elimination, creation, or modification of programs, courses, degrees, departments, colleges, or other divisions of the degree-granting institution;ensure that the policies described in this Subsection (8)(a):create operational efficiencies in carrying out the strategic reinvestment plan;assist the degree-granting institution to meet the timeframes described in this section and the strategic reinvestment plan; andare consistent with the guidance the board provides in accordance with Subsection (4)(a); andprepare the policies described in this Subsection (8)(a) in consultation with the board.A degree-granting institution’s policies described in Subsection (8)(a) may supersede the following that are inconsistent with the strategic reinvestment plan or the goals of the plan:an existing policy, procedure, or timeframe of the degree-granting institution; anda board policy, if the board determines that superseding the policy is necessary or appropriate.Notwithstanding any other provision of this title, a degree-granting institution may act in accordance with the policies described in this Subsection (8).
Performance Funding
53H-8-301 - Definitions.
As used in this part: 53H-8-301(1) “Account” means the Performance Funding Restricted Account created in Section 53H-8-302. 53H-8-301(2) “Estimated revenue growth from targeted jobs” means the estimated increase in individual income tax revenue generated by individuals employed in targeted jobs, determined in accordance with Sections 53H-8-302 and 53H-8-306. 53H-8-301(3) “Full new performance funding amount” means the maximum amount of new performance funding that an institution may qualify for in a fiscal year, determined by the Legislature in accordance with Section 53H-8-303. 53H-8-301(4) “Full-time” means the number of credit hours the board determines is full-time enrollment for a student. 53H-8-301(5) “New performance funding” means the difference between the total amount of money in the account and the amount of money appropriated from the account for performance funding in the current fiscal year. 53H-8-301(6) “Performance” means total performance across the metrics described in Section 53H-8-304. 53H-8-301(7) “Targeted job” means a four- and five-star job that requires postsecondary training as designated by the Department of Workforce Services.
53H-8-302 - Performance Funding Restricted Account — Creation — Deposits into account — Legislative review.
53H-8-302(1) As used in this section:“Account” means the Performance Funding Restricted Account created in Subsection (2).”Baseline amount” means the simple five-year average amount of personal income tax withholding over fiscal years 2019-2023.”Personal income tax withholding means” means income tax withholding required under Title 59, Chapter 10, Part 4, Withholding of Tax. 53H-8-302(2) There is created within the Income Tax Fund a restricted account known as the Performance Funding Restricted Account. 53H-8-302(3) The Legislature may appropriate money to the account. 53H-8-302(4) Money in the account shall be:used for performance funding for:degree-granting institutions; andtechnical colleges; andappropriated by the Legislature in accordance with Section 53H-8-303. 53H-8-302(5) Money in the account shall earn interest.All interest earned on account money shall be deposited into the account. 53H-8-302(6) Except as provided in Subsection (6)(b) or (6)(c), before the end of each calendar year, the Executive Appropriations Committee shall appropriate to the account an amount equal to 6% of the difference between the five-year average amount from the most recent five years of personal income tax withholdings and the baseline amount.As used in this Subsection (6)(b), “total higher education appropriations” means, for the current fiscal year, the total state funded appropriations to:the board;degree-granting institutions; andtechnical colleges.If an appropriation described in Subsection (6)(a) would exceed 10% of total higher education appropriations, the Executive Appropriations Committee shall appropriate to the account an amount equal to 10% of total higher education appropriations.If, after appropriating to the Public Education Economic Stabilization Restricted Account as defined in Section 53F-9-204, the remaining available revenue from the personal income tax withholdings is less than the lesser of the amounts in Subsection (6)(a) or Subsection (6)(b)(ii), the Executive Appropriations Committee shall appropriate to the account the remaining available revenue from the personal income tax withholdings.
53H-8-303 - Determination of full new performance funding amount — Role of appropriations subcommittee — Program review.
53H-8-303(1) In accordance with this section, and based on money deposited into the account, the Legislature shall, as part of the higher education appropriations budget process, annually determine the full new performance funding amount for each:degree-granting institution; andtechnical college. 53H-8-303(2) The Legislature shall annually allocate:80% of the money in the account to degree-granting institutions; and20% of the money in the account to technical colleges. 53H-8-303(3) The Legislature shall determine a degree-granting institution’s full new performance funding amount based on the degree-granting institution’s prior year share of:full-time equivalent enrollment in all degree-granting institutions; andthe total state-funded appropriated budget for all degree-granting institutions.In determining a degree-granting institution’s full new performance funding amount, the Legislature shall give equal weight to the factors described in Subsections (3)(a)(i) and (ii). 53H-8-303(4) The Legislature shall determine a technical college’s full new performance funding amount based on the technical college’s prior year share of:full-time equivalent enrollment for all technical colleges; andthe total state-funded appropriated budget for all technical colleges.In determining a technical college’s full new performance funding amount, the Legislature shall give equal weight to the factors described in Subsections (4)(a)(i) and (ii). 53H-8-303(5) Annually, at least 30 days before the first day of the legislative general session the board shall submit a report to the Higher Education Appropriations Subcommittee on each institution’s performance. 53H-8-303(6) In accordance with this Subsection (6), and based on the report described in Subsection (5), the Legislature shall determine for each institution:the portion of the full new performance funding amount earned; andthe amount of new performance funding to recommend that the Legislature appropriate, from the account, to theinstitution.An institution earns the full new performance funding amount if the institution meets the annual performance goals the board sets under Subsection 53H-8-304(1)(a)(ii).An institution that does not meet the goals the board sets under Subsection 53H-8-304(1)(a)(ii):is not eligible to receive the full new performance funding amount; andis eligible to receive a prorated amount of the full new performance funding amount for performance that is greater than zero as measured by the model the board establishes under Subsection 53H-8-304(1)(a)(i).If an institution does not earn the full new performance funding amount as described in Subsection (6)(b), the Legislature:shall set aside the unearned new performance funding; andmay, at the end of an annual performance goal period within a five-year period for which the board sets goals under Subsection 53H-8-304(1)(a)(ii), reallocate the funds set aside under Subsection (6)(d)(i) to an institution that meets or exceeds the institution’s:previous year’s annual performance goal; andperformance goal that the institution previously failed to meet which caused the funding to be set aside. 53H-8-303(7) An appropriation described in this section is ongoing. 53H-8-303(8) Notwithstanding Section 53H-8-302 and Subsections (6) and (7), the Legislature may, by majority vote, appropriate or refrain from appropriating money for performance funding as circumstances require in a particular year.
53H-8-304 - Performance metrics for institutions — Determination of performance.
53H-8-304(1) The board shall establish a model for determining an institution’s performance.The board shall:set a five-year goal for the Utah System of Higher Education for each metric described in Subsection (2)(a);adopt five-year goals for each institution that align with each goal described in Subsection (1)(a)(ii)(A); andensure the goals the board adopts for each institution described in Subsection (1)(a)(ii)(B) are sufficiently rigorous to meet the goals described in Subsection (1)(a)(ii)(A); andThe board shall submit a draft of the model described in this section to the Higher Education Appropriations Subcommittee and the governor for comments and recommendations.Every five years, the board shall:submit the model described in Subsection (1)(a)(i) and the goals described in Subsection (1)(a)(ii) to the Higher Education Appropriations Subcommittee and to the governor for comments and recommendations; andconsider the comments and recommendations described in Subsection (1)(b)(ii)(A), and make any necessary changes to the model described in Subsection (1)(a)(i) and the goals described in Subsection (1)(a)(ii).Every five years, the Executive Appropriations Committee, the Higher Education Appropriations Subcommittee, and the Education Interim Committee shall prepare and jointly meet to consider legislation for introduction at the following general legislative session to adopt the goals described in Subsection (1)(a)(ii). 53H-8-304(2) The board shall set the goals and establish the performance model described in Subsection (1)(a)(i) for the following metrics:access;timely completion; andhigh-yield awards.The board shall determine the relative weights of the metrics described in Subsection (2)(a).The board shall determine and establish in board policy, the definitions, measures, and relative weights of the metrics described in Subsection (2)(a) based on each institution’s mission. 53H-8-304(3) For each degree-granting institution, the board shall annually determine the degree-granting institution’s:performance; andchange in performance compared to the degree-granting institution’s average performance over the previous five years.For each institution, the board shall annually:adopt annual performance goals for each metric described in Subsection (2)(a)(ii) that will advance the institution toward achievement of the five-year goals described in Subsection (1)(a)(ii);evaluate performance in meeting the goals described in Subsection (3)(b)(i); andinclude a degree-granting institution’s or technical college’s performance under this section in the evaluation described in Subsection 53H-1-203(2)(i). 53H-8-304(4) The board shall use the model described in Subsection (1)(a)(i) to make the report described in Section 53H-8-303 for determining an institution’s performance funding. 53H-8-304(5) At the end of each five-year period for which the board sets goals under Subsection (1)(a)(ii):the board shall:review the Utah System of Higher Education’s performance in meeting the goals the board sets under Subsection (1)(a)(ii)(A);review each institution’s performance in meeting the goals the board sets under Subsection (1)(a)(ii)(B); andallocate any funds not allocated under Subsection 53H-8-303(6)(d) to eachinstitution that meets or exceeds the goals the board sets under Subsection (1)(a)(ii)(B); andthe Legislature may appropriate additional funds for the board to allocate to each institution that meets or exceeds goals as described in Subsection (5)(a)(iii). 53H-8-304(6) In year two or three of each five-year period for which the board sets goals under Subsection (1)(a)(ii), the following committees and the governor shall hold a joint open meeting to review the goals the board sets under Subsection (1)(a)(ii):the Executive Appropriations Committee;the Higher Education Appropriations Subcommittee; andthe Education Interim Committee.
53H-8-305 - Five-year performance goals.
53H-8-305(1) As used in this section:“Access metric” means the metric described in Subsection 53H-8-304(2)(a)(i).”Award” means a degree or certificate that an institution grants.”Cohort” means a group of students, defined by the year in which the group enrolls in an institution.”Five-year performance period” means the five-year period beginning on July 1, 2022, and ending on June 30, 2027.”High-yield award” means the same as that term is defined in board policy under Subsection 53H-8-304(2)(c).”High-yield awards metric” means the metric described in Subsection 53H-8-304(2)(a)(iii).”Standard completion time” means the time in which a student typically completes an award program.”System” means the Utah System of Higher Education.”Timely completion metric” means the metric described in Subsection 53H-8-304(2)(a)(ii). 53H-8-305(2) The goals established by the board in accordance with Subsection 53H-8-304(1)(a)(ii) for the Utah System of Higher Education for the five-year performance period are:for the access metric, to increase the percent of Utah high school graduates participating in the system by 3.0%;for the timely completion metric, to increase the system percentage of a cohort that completes an award in up to and including 1.5 times the standard completion time by 3.0%; andfor the high-yield awards metric, to increase the system percentage of high-yield awards by 3.0%. 53H-8-305(3) In order to meet the system goals described in Subsection (2), the goals for each institution for the five-year performance period are:for the access metric, to increase the institution’s share of Utah high school graduates participating in the system by a percentage that the board determines;for the timely completion metric, to increase the percent of a cohort enrolled at the institution that completes an award in up to and including 1.5 times the standard completion time or sooner by a percentage that the board determines; andfor the high-yield awards metric, to increase the percent of high-yield awards the institution grants by a percentage that the board determines.
53H-8-306 - Reporting of estimated revenue growth from targeted jobs.
53H-8-306(1) On or before October 1, 2030 and each subsequent fifth year, the Department of Workforce Services shall report to the Higher Education Appropriations Subcommittee on:the total wages in Utah according to the Quarterly Census of Employment and Wages program over the previous five years;total wages in Utah attributable to four- and five-star jobs that require postsecondary training according to the Occupational Employment and Wage Statistics program over the previous five years;total wages in Utah for all occupations according to the Occupational Employment and Wage Statistics program over the previous five years;the quotient of total wages in Subsection (1)(a) and total wages in Subsection (1)(b); andthe quotient of total wages in Subsection (1)(c) and total wages in Subsection (1)(b). 53H-8-306(2) On or before October 1, 2030 and each subsequent fifth year, the commissioner shall report to the Higher Education Appropriations Subcommittee on:all institutions’ high yield awards over the previous five years;the estimated revenue growth from targeted jobs associated with high yield awards over the previous five years;the connection between the data described in Subsections (2)(a) and (2)(b); andthe estimated median effective income tax rate.
53H-8-307 - Legislative audit.
53H-8-307(1) Subject to prioritization of the Audit Subcommittee, the Office of the Legislative Auditor General established under Section 36-12-15 shall in any fiscal year:conduct an audit of money appropriated for performance funding; andprepare and submit a written report for an audit described in this section in accordance with Section 36-12-15. 53H-8-307(2) An audit described in this section shall include:an evaluation of the implementation of performance funding; andthe use of performance funding.
Higher Education Student Success Endowment
53H-8-401 - Definitions.
As used in this part, “endowment” means the Higher Education Student Success Endowment created in Section 53H-8-402 .
53H-8-402 - Higher Education Student Success Endowment.
53H-8-402(1) There is created the Higher Education Student Success Endowment. 53H-8-402(2) The endowment consists of:the proceeds from divestment of the dissolved Utah Higher Education Assistance Authority’s loan portfolio;appropriations made to the endowment by the Legislature, if any;income from the investment of the endowment; andother revenues received from other sources. 53H-8-402(3) The board shall account for the receipt and expenditures of endowment money in accordance with the policies and guidance of the Division of Finance. 53H-8-402(4) The state treasurer shall invest the endowment money with the primary goal of providing for stability, income, and growth of the principal.The state treasurer may deduct any administrative costs incurred in managing endowment assets from earnings before distributing the earnings.Nothing in this section requires a specific outcome in investing.The state treasurer may employ professional asset managers to assist in the investment of assets of the endowment.The state treasurer may only provide compensation to asset managers from earnings generated by the endowment’s investments.The state treasurer shall invest and manage the endowment assets as a prudent investor would, by:considering the purposes, terms, distribution requirements, and other circumstances of the endowment; andexercising reasonable care, skill, and caution in order to meet the standard of care of a prudent investor.In determining whether or not the state treasurer has met the standard of care of a prudent investor, the judge or finder of fact shall:consider the state treasurer’s actions in light of the facts and circumstances existing at the time of the investment decision or action, and not by hindsight; andevaluate the state treasurer’s investment and management decisions respecting individual assets not in isolation, but in context of an endowment portfolio as a whole as a part of an overall investment strategy that has risk and return objectives reasonably suited to the endowment. 53H-8-402(5) The endowment shall earn interest.The state treasurer shall deposit the interest or other revenue earned from investment of the endowment into the endowment. 53H-8-402(6) The board:may expend money from the endowment for programs that:advance the system priorities as established in Subsection 53H-1-203(2)(a); andsupport prospective students or current students enrolled at an institution; andmay not expend money from the endowment for a capital expenditure, including the construction or lease of a capital facility or operation and maintenance of a capital facility. 53H-8-402(7) The board shall ensure that:money deposited into the endowment is irrevocable and is expended only for programs that advance the system priorities as established in Subsection 53H-1-203(2)(a); andcreditors of the board of directors may not seize, attach, or otherwise obtain assets of the endowment.
53H-8-403 - Board duties.
53H-8-403(1) The board shall:act as trustee of the endowment and exercise the state’s fiduciary responsibilities;meet at least twice a year to conduct business on behalf of the endowment;review and approve all endowment policies, projections, rules, criteria, procedures, forms, standards, and performance goals;review and approve the budget and expenditures for the endowment in accordance with Section 53H-8-402;review financial records for the endowment, including endowment receipts, expenditures, and investments; andtake any other action necessary to perform the board’s fiduciary obligations. 53H-8-403(2) The board shall annually submit a budget and expenditures to the Higher Education Appropriations Subcommittee no later than November 1.
53H-8-404 - Grants and gifts to the authority.
53H-8-404(1) To the extent otherwise allowed, a state entity may grant money or property to the endowment. 53H-8-404(2) A person may make a contribution, gift, grant, bequest, devise, or loans to the endowment.
Foreign Bank Accounts and Foreign Gifts
53H-8-501 - General provisions — Definitions.
As used in this part: 53H-8-501(1) “Conditional gift” means a gift as defined in Subsection (4) that is subject to conditions:imposed, requested, or provided by a foreign government or foreign person; andthat relate to:what kinds of teachers or students may benefit from the gift; ora description of the subject matter to be taught with the support of the gift. 53H-8-501(2) “Foreign government” means a government other than the government of:the United States;a state within the United States;a territory or possession of the United States; ora political subdivision of the United States. 53H-8-501(3) “Foreign person” means:a foreign government defined in Subsection (2);an individual who is not a citizen or national of the United States or of a territory or protectorate of the United States;a corporation, partnership, joint venture, proprietorship, trust, association, or other entity that is created or organized under the laws of a foreign government or that has its principal place of business located outside the United States;if known by the institution, a corporation, partnership, joint venture, proprietorship, trust, association, or other entity that is created or organized pursuant to the laws of the United States or a state within the United States, if a majority of the stock or other equity interest is directly or indirectly owned by, or which derives a majority of its funding from:a foreign government;an individual described in Subsection (3)(b); oran entity described in Subsection (3)(c) or (d); orif known by the institution, a committee or other group in which a majority of the membership is composed of:a foreign government;an individual described in Subsection (3)(b); oran entity described in Subsection (3)(c) or (d). 53H-8-501(4) “Gift” means an endowment, scholarship, gift, donation, or grant of money or property of any kind. 53H-8-501(5) “Restricted foreign entity” means:a company that the United States Secretary of Defense is required to list as a military company under the requirements of federal national defense authorization acts;any affiliate of a company described in Subsection (6)(a);the country with a commercial or defense industrial base of which a company described in Subsection (6)(a) is a part; orany subsidiary of a company described in Subsection (6)(a) or a country described in Subsection (6)(c).
53H-8-502 - Foreign bank accounts for higher education purposes.
53H-8-502(1) As used in this section, “foreign depository institution” is as defined in Section 7-1-103. 53H-8-502(2) In accordance with Subsection 51-7-4(1)(b)(iii), an institution may deposit funds into a foreign depository institution for purposes of conducting academic, research, or clinical activities in the foreign country, if the:laws of the foreign country require the money to be deposited in the foreign country; orterms of a grant, gift, or contract require the funds to be deposited in the foreign country. 53H-8-502(3) The foreign depository institution in which funds are deposited under this section shall meet the requirements of rules made by the State Money Management Council under Section 51-7-18.
53H-8-503 - Disclosure of foreign gifts to institutions — Prohibition on restricted foreign entity funds.
53H-8-503(1) Except as provided in Subsection (1)(c), on or before July 31 of each year, an institution shall disclose to the board, by filing a disclosure report described in Subsection (2), a gift received by the institution of 50,000 amount described in Subsection (1)(a) is increased to $250,000 if the gift, considered alone or in combination with all other gifts, described in Subsection (1)(a) is from a foreign person:with a principal residence or principal place of business located in the United States; andwith a permanent resident status:under Section 245 of the Immigration and Nationality Act; andfor 10 years or more. 53H-8-503(2) A disclosure report regarding all gifts described in Subsection (1) shall include:the amount of each gift described in Subsection (1);the date on which each gift described in Subsection (1) was received by the institution;the name of the foreign person making each gift described in Subsection (1);the aggregate amount of all gifts described in Subsection (1) from a foreign person during the prior fiscal year of the institution;for a conditional gift, a description of the conditions or restrictions related to the conditional gift;for a conditional gift:for a foreign person that is an individual, if known, the country of citizenship or principal residence of the individual; orfor a foreign person that is not an individual, if known, the country of incorporation or place of business of the foreign person; andfor a conditional gift that is a contract entered into between an institution and a foreign person:the amount;the date;a description of all conditions or restrictions; andthe name of the foreign person. 53H-8-503(3) A disclosure report required by this section is a public record open to inspection and review during the institution’s business hours. 53H-8-503(4) At the request of the board, the attorney general may file a civil action to compel an institution to comply with the requirements of this section. 53H-8-503(5) The board shall make rules for the administration of this section in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act. 53H-8-503(6) An institution may not seek or accept funding support from a restricted foreign entity or an entity that passes on funding support from a restricted foreign entity.
Higher Education Loans
53H-8-601 - Definitions.
As used in this part: 53H-8-601(1) “Bonds” means the bonds authorized to be issued by the board under this part, and may consist of bonds, notes, or debt obligations evidencing an obligation to repay borrowed money and payable solely from revenues and other money of the board pledged for repayment. 53H-8-601(2) “Eligible borrower” means a person, or the parent of a person, who is eligible to borrow under regulations applicable to the student loan program. 53H-8-601(3) “Eligible institution” means an institution which is approved by the board and the United States Secretary of Education for purposes of the guaranteed loan program. 53H-8-601(4) “Obligations” means student loan notes and other debt obligations reflecting loans to students which the board may take, acquire, buy, sell, or endorse under this part, and may include a direct or indirect interest in the whole or any part of the notes or obligations. 53H-8-601(5) “Resolution,” when used in relation to the issuance of bonds, means the resolution or trust agreement securing the bonds. 53H-8-601(6) “Student” means a person who, under rules promulgated by the board, is enrolled or accepted for enrollment at an eligible institution and who is making suitable progress in the person’s education toward obtaining a degree or other appropriate certification in accordance with standards acceptable to the board.
53H-8-602 - Powers of Utah Board of Higher Education.
The board has the powers necessary to carry out the purposes of this part, including the following: 53H-8-602(1) to accept gifts, grants, loans, and other aids or amounts from a person, corporation, or governmental agency; 53H-8-602(2) to loan money to eligible borrowers to assist the eligible borrowers in obtaining a post-high school education by attending an eligible institution, including refinancing or consolidating obligations previously incurred by eligible borrowers with other lending sources for this purpose and participating in loans to eligible borrowers for this purpose with other lending sources; 53H-8-602(3) to acquire, purchase, or make commitments to purchase, and take assignments from lenders of obligations; no obligation is eligible for acquisition, purchase, or commitment to purchase by the board unless at or before the time of transfer to the board the lender certifies either: that under and to the extent required by rules and regulations of the board, the proceeds of sale or its equivalent shall be reinvested in other obligations under the student loan program; or that the obligation was made in anticipation of its sale to the board under rules and regulations of the board promulgated under this part; 53H-8-602(4) to enforce its rights under a contract or agreement including the commencement of court action; 53H-8-602(5) to acquire, hold, and dispose of real and personal property necessary for the accomplishment of the purposes of this part; 53H-8-602(6) to obtain insurance against losses which may be incurred in connection with its property, assets, activities, or the exercise of the powers granted under this part; 53H-8-602(7) to borrow money and to issue its bonds and provide for the rights of bondholders and to secure the bonds by assignment, pledge, or granting a security interest in its property including all or a part of an obligation. The state is not liable for the repayment of bonds issued by the board. The bonds issued by the board are not a debt of the state, and each bond shall contain on its face a statement to this effect; 53H-8-602(8) to invest funds not required for immediate use or disbursement as provided in the State Money Management Act; 53H-8-602(9) subject to a contract with the holders of its bonds, an applicable bond resolution, or a contract with the recipient of a loan, to consent to the modification, with respect to security, rate of interest, time of payment of interest or principal, or other term of a bond contract or agreement between the board and a recipient of a loan, bondholder, or agency or institution guaranteeing the repayment of an obligation; 53H-8-602(10) to engage and employ officers, agents, employees, and other private consultants to render and perform professional and technical duties, assistance, and advice in carrying out the purposes of this part, to describe the duties, and to fix the amount and source of the compensation; 53H-8-602(11) to make rules and regulations governing the activities authorized under this part; 53H-8-602(12) to solicit grants and contributions from the public or from any government or governmental agency and to arrange for the guaranteeing of the repayment of obligations by other agencies of this state or the United States; 53H-8-602(13) to collect fees and charges in connection with its loans, commitments, and servicing, including reimbursement of the costs of financing, service charges, and insurance premiums which are determined as reasonable and are approved by the board; 53H-8-602(14) to sell obligations held by the board at such prices and at such times as it may determine, when that sale would not impair the rights or interests of holders of bonds issued by the board; and 53H-8-602(15) to participate in federal programs supporting loans to eligible borrowers and to agree to, and comply with, the conditions of those programs.
53H-8-603 - Issuance of bonds — Disposition of funds — Refunding bonds — Resolution to authorize bonds — Contents — Sale of bonds — Bond debt service reserve funds — Restoration of fund assets — Establishment of other subfunds.
53H-8-603(1) The board may issue the board’s bonds in the principal amounts necessary to provide funds for achieving the board’s purposes under this part, including the payment of interest, the establishment of reserves to secure the bonds, and other expenditures of the board necessary to carry out its purposes and powers. 53H-8-603(2) The board may issue refunding bonds when it considers refunding expedient, whether the bonds to be refunded have or have not matured. 53H-8-603(3) The proceeds of the refunding bonds shall be applied to the purchase, redemption, or payment of the bonds refunded. 53H-8-603(4) Except as otherwise expressly provided in a resolution authorizing bonds, an issue of bonds is a special obligation of the board to be satisfied only out of revenue or money of the board, subject to an agreement with the holders of particular receipts or revenues of the board which have been pledged. 53H-8-603(5) The board shall authorize its bonds by resolution. 53H-8-603(6) The bonds are fully negotiable for all purposes, shall bear a date, shall be serial bonds or term bonds or both and, if serial bonds, shall be payable either semiannually or annually, and shall mature at a time or times, not exceeding 40 years after the date of issue, as provided in the resolution. 53H-8-603(7) The resolution shall specify the following:either the interest rate or rates or a formula by means of which the interest rate or rates are determined during the time the bonds are outstanding;denomination and form, either coupon or registered;registration privileges;manner of execution;medium of payment; andplace and terms for the redemption of the bonds. 53H-8-603(8) If the resolution sets forth a formula by means of which the interest rate or rates on the bonds are determined, it shall also state the maximum rate which the bonds may bear under the formula. 53H-8-603(9) Pursuant to the resolution or another instrument, the board may delegate to the chair, vice-chair, or chair of the Budget and Finance Subcommittee the authority:to approve any changes with respect to interest rate, price, amount, redemption features, and other terms of the bonds as are within reasonable parameters set forth in the resolution; andto approve and execute all documents relating to the issuance of the bonds. 53H-8-603(10) The bonds are sold by the board in such manner and at such a price as the board determines. 53H-8-603(11) The board may create and establish one or more bond debt service reserve funds in order to secure its bonds from the following:any proceeds of the sale of bonds, to the extent provided in the resolution authorizing the issuance of the bonds;any money appropriated and made available by the state for the purpose of the funds; andany other money available to the board for the purpose of the funds.All money held in any bond debt service reserve fund shall be used, as provided in the resolution establishing the fund, to pay principal of, premium, and interest on bonds of the board issued under this part.If the assets in any bond debt service reserve fund are less than the amount currently required in the authorizing resolution to be on deposit, the chairman of the board shall, annually before the second day of December, certify to the governor and to the director of finance the amount necessary to restore the assets of the funds to the required amount.The governor may request from the Legislature an appropriation of the certified amount in order to restore the required amount to the funds. 53H-8-603(12) The board may create and establish any other subfunds and accounts as may be necessary for its corporate purposes.
53H-8-604 - Agreements with bondholders unalterable.
53H-8-604(1) Neither limitations or alterations of the rights vested in the board to fulfill the terms of an agreement made with bondholders nor impairment of the rights and remedies of those bondholders may occur until:the bonds, together with interest on the bonds and interest on unpaid installments of interest are met and discharged; andall costs and expenses in connection with an action or proceeding by or on behalf of those bondholders are met and discharged. 53H-8-604(2) The board may include provisions to this effect in an agreement with the holders of the bonds.
53H-8-605 - Investments in bonds of the board.
The bonds of the board are securities, in which public officers and bodies of this state, municipalities and municipal subdivisions, insurance companies and associations, persons carrying on an insurance business, banks, trust companies, savings banks and savings associations, saving and loan associations, investment companies, administrators, guardians, executors, trustees, other fiduciaries, and all other persons who are authorized to invest in bonds or other obligations of the state, may properly and legally invest funds, including capital, in the control of or belonging to the aforementioned entities, groups, or individuals.
53H-8-606 - Payment of funds — Payment on warrants — Contracts with bondholders — Security.
53H-8-606(1) The funds of the board, except as otherwise authorized or provided in this section, are paid to the state treasurer. 53H-8-606(2) The money in the accounts is paid out on warrants signed by the Division of Finance on requisition of the chairman of the board or of a board authorized officer or employee. 53H-8-606(3) The board, subject to the approval of the state treasurer, may contract with the holders of its bonds as to the custody, collection, securing, investment, and payment of money of the board or of money held in trust or otherwise for the payment of bonds. 53H-8-606(4) Money held in trust or otherwise for the payment of bonds or to secure bonds and deposits of the money may be secured in the same manner as money of the board. 53H-8-606(5) Banks and trust companies are authorized to give such security for the deposits.
53H-8-607 - Bonds and interest exempt from taxation except corporate franchise tax.
The bonds issued under this part and the interest on the bonds are exempt from all taxation in this state, except for the corporate franchise tax.
53H-8-608 - Bond approval by attorney general incontestable after 30 days — Recital of certification.
53H-8-608(1) The attorney general shall examine the resolutions and proceedings authorizing the issuance and confirming the sale of bonds under this part. 53H-8-608(2) Once examined and certified as legal obligations by the attorney general, the bonds become incontestable in any court in the state unless suit is brought in a court having jurisdiction within 30 days from the date of certification. 53H-8-608(3) The bonds certified under this section shall contain a recital on the bond’s face as follows: “This bond is one of a series of bonds which were certified as legal obligations by the Attorney General of the state of Utah on _______________.” 53H-8-608(4) Bonds authorized, issued, and sold under resolutions and proceedings certified by the attorney general are valid and binding obligations according to the bond’s terms.
53H-8-609 - Board pledges — Attachment of lien — Recording unnecessary.
53H-8-609(1) A pledge made by the board is valid and binding from the time the pledge is made. 53H-8-609(2) The money or property pledged and subsequently received by the board is immediately subject to the lien of the pledge without physical delivery or further act. 53H-8-609(3) The lien of the pledge is valid and binding against all parties having a claim in tort, contract, or otherwise against the board, irrespective of whether the parties have notice of the claim. 53H-8-609(4) Neither the resolution nor another instrument by which a pledge is created need be recorded.
53H-8-610 - Default by board — Appointment of a trustee — Powers of the trustee and bondholders.
53H-8-610(1) If the board defaults in the payment of principal of or interest on an issue of bonds after the issue becomes due, whether at maturity or upon call for redemption, and the default continues for 30 days, or if the board fails or refuses to comply with this part, or defaults in an agreement made with the holders of an issue of bonds, the holders of 25% of the aggregate principal amount of the bonds of the issue then outstanding, may appoint a trustee to represent all holders of that issue of bonds for the purposes provided in this section. 53H-8-610(2) The trustee may, and upon written request of the holders of 25% of the aggregate principal amount of the bonds of the issue then outstanding shall, in the trustee’s own name by action or proceeding enforce all rights of the bondholders including the following:bringing an action to require the board to collect fees, charges, interest, and amortization payments of loans made by it adequate to carry out the agreement as to, or pledge of, the fees, charges, interest, and amortization payment on the loans and other properties;bringing an action to require the board to carry out other agreements with the holders of the bonds and to perform its duties under this part;bringing an action upon the bonds; orbringing an action to require the board to account as if it were the trustee of an express trust for the holders of the bonds due and payable, and if all defaults are made good, then, with the consent of the holders of 25% of the principal amount of the issue of bonds then outstanding, to annul the declaration and its consequences. 53H-8-610(3) The holders of bonds and the trustee authorized by this section shall have all of the rights to which the holders of bonds and the trustee authorized by this section are entitled by virtue of provisions included in the bonds or otherwise available to the holders of bonds and the trustee authorized by this section under the law.
53H-8-611 - Loans or purchase of obligations — Rules — Options — Repayment of federally insured loans.
53H-8-611(1) The board may purchase obligations from lenders or make loans to eligible borrowers, out of money available to the board for loans. The board shall promulgate rules for determining the needs of the respective borrowers for loans and for the purpose of making loans or purchasing obligations. The amount of an obligation purchased by the board or of a loan made by the board to an eligible borrower, whether enrolled or to be enrolled in a private postsecondary educational institution or an institution, is determined by the board upon the basis of substantially similar standards and guides set forth in the board’s rules. The board, in determining the needs of eligible borrowers for guaranteed loans, may consider the amount of assistance available to the students. 53H-8-611(2) When the board purchases an obligation or makes a loan, and again immediately before a repayment schedule on the loan or obligation is signed by the borrower, the board shall cause a written statement to be delivered to the borrower describing in detail whether an option exists and, if so, who may exercise the option, under what conditions the option may be exercised, and what options are available relating to the following:the term of the loan;the repayment period on the loan;an extension of the term or repayment period on the loan and the conditions of repayment under the extension;a deferment or forbearance on the repayment of the loan or on interest accruing on the loan, whether interest is to be paid during the deferment or forbearance, and the terms of repayment after the deferment or forbearance;the period of time between installment payments on the loan and whether graduated or unequal installment payments may be made;the minimum annual payment on the loan, and if more than one loan is taken from the board or if the borrower takes or has taken an educational loan from another source, the availability of consolidation, transfer, or assignment of the loans and the minimum annual payment on the aggregate of the loans;the granting of an interview before or at the time the borrower signs a repayment schedule; andthe revision or renegotiation of the repayment schedule on the loan after repayment has commenced, or if other educational loans from the board or another source are taken after the repayment has commenced. 53H-8-611(3) On obligations purchased or loans made by the board which are federally insured loans, the board may establish variable repayment schedules conforming to the need and documented income levels of borrowers, if the schedules are not inconsistent with federal laws, rules, or regulations governing the insured loans. A borrower making payments on a loan may request and be granted a revised repayment term or schedule based upon the established variable repayment schedules.
53H-8-612 - Separation of duties, responsibilities, funds, liabilities, and expenses — Immunity from personal liability.
53H-8-612(1) The duties, responsibilities, funds, liabilities, and expenses of the board under this part shall be maintained wholly separate and apart from the board’s other duties, responsibilities, funds, liabilities, and expenses. 53H-8-612(2) A member of the board or a person executing the notes, bonds, or other obligations of the board is not personally liable for the repayment of the note, bond, or other obligation or subject to personal liability or accountability by reason of its issuance or nonissuance.
53H-8-613 - Mandamus in Supreme Court — Precedence.
53H-8-613(1) If an official required by the proceeding authorizing bonds under this part to sign the bonds refuses to affix the official’s signature to the bonds, or if the attorney general refuses to certify the bonds as legal obligations, alleging illegality of the bonds, the board may bring an original action in mandamus in the Supreme Court of Utah. 53H-8-613(2) The importance to the state and its inhabitants of the program of loans to eligible borrowers is such that this action brought in the Supreme Court should be given precedence over the other matters pending before the court, and the court is requested to give this action precedence and to render its decision concerning it at the earliest possible time.