UtahS.B. 432026 General SessionSenate

Land Trusts Protection and Advocacy Office Amendments

Sponsored By: Derrin R. Owens (Republican)

Signed by Governor

Trust LandsEducationK-12 Education

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Bill Overview

Analyzed Economic Effects

9 provisions identified: 6 benefits, 0 costs, 3 mixed.

Annual notice of trust fund distributions

Beginning July 1, 2026, by October 1 each year the SITFO director sets next year’s distribution amount. The director must notify the state treasurer, legislative fiscal analyst, finance division, the advocacy director, the trust lands administration, the state board, and the governor’s budget office.

Changes start July 1, 2026

This law takes effect July 1, 2026. The new offices, councils, rules, and reporting start on that date unless stated otherwise.

Council oversees the advocacy office

Starting July 1, 2026, a seven-member Advocacy Council oversees the office. The council proposes director candidates to the state treasurer, sets the director’s pay, makes rules, and reviews reports. Members serve staggered four-year terms, meet at least quarterly, and file conflict-of-interest disclosures. The State Board names the staff member who runs the School LAND Trust Program to serve on the council.

New office speaks for trust beneficiaries

Beginning July 1, 2026, the state creates the School and Institutional Trust Beneficiaries’ Advocacy Office. It speaks for trust beneficiaries and may review and speak on ballot measures that affect them. A beneficiary can choose to speak for itself by giving the office written notice for that issue. The director can request information and attend many trustee meetings, but must keep confidential items private and follow state records rules. The office cannot cancel or undo trustee decisions.

Stronger oversight of trust lands leadership

Beginning July 1, 2026, a nine‑member nominating committee helps select trust lands board members, with five governor appointees due by December 1 before a vacancy. The advocacy office provides staff support to this committee. If the governor withholds consent for a trust lands director candidate, the governor must give written reasons to the board. The board sets the director’s pay, reports it yearly to the Legislature, and reviews performance each year.

Who the trust beneficiaries are

Starting July 1, 2026, the law lists the institutions that are trust beneficiaries and names each group’s main contact. It confirms trust lands are managed for these beneficiaries. Beneficiaries get rights to information, timely notice, distributions and regular accountings, impartial treatment, and the ability to challenge unlawful actions.

Rules for how institutions spend distributions

Beginning July 1, 2026, institutional beneficiaries must keep clear records and create an annual spending plan with advisory input and governing approval. They may invest retained distributions up to an amount equal to two prior years’ distributions and must return any excess or seek a reduction. They must share data for an annual report and take part in compliance reviews. School LAND Trust distributions to public schools are exempt from these rules.

Treasurer oversight and legal protection

Beginning July 1, 2026, the state treasurer appoints the advocacy director, oversees the office, and submits its budget. After consulting the beneficiary and the advocacy director, the treasurer may approve a reduction in an institution’s annual distribution only in limited cases set by law. The treasurer is protected from lawsuits for good‑faith trust actions taken in the beneficiaries’ best interests.

Trust earnings fund the advocacy office

Starting July 1, 2026, a new Advocacy Account pays the office’s costs. SITFO deposits an amount equal to the Legislature’s annual appropriation, taken proportionally from trust fund earnings by fund value. If the office spends less than budgeted, next year’s deposit is reduced by the leftover amount.

Sponsors & Cosponsors

Sponsor

Derrin R. Owens
Republican • Senate

Cosponsors

Jefferson S. Burton
Republican • House

Roll Call Votes

All Roll Calls

Yes: 102 • No: 3

House vote • 2/5/2026

House/ passed 3rd reading

Yes: 67 • No: 3

House vote • 2/2/2026

House Comm - Favorable Recommendation

Yes: 9 • No: 0

Senate vote • 1/20/2026

Senate/ floor amendment

Yes: 0 • No: 0