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House approves arts endowment amendments after sponsors clarify interest handling and add oversight

Utah House of Representatives · January 30, 1991
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Summary

The House passed amendments to the state arts endowment (House Bill 97) after sponsors said interest earned on the original $2.3 million deposit had been kept in a separate account and should follow the endowment; amendments add legislative oversight of administrative costs and clarify inclusion of federal funds.

The Utah House on the floor approved amendments to the state arts endowment fund, passing House Bill 97 as amended by a 59-1 recorded vote.

Sponsor Representative Kim R. Burningham defended the measure as a technical fix to language in last year’s endowment law and said it would ensure interest and federal contributions are treated as part of the state fund. “That fund has created over $9,090,000 dollars in interest,” Burningham said on the House floor, adding that the interest has been set aside by the treasurer’s office pending clear statutory direction. He told members the fiscal-note figure — a cited reduction to general fund revenue of about $180,000 — reflects interest earnings already segregated and not available to the governor for other uses: “That hundred and 80,000 is there. The governor isn’t counting on it. It isn’t in the general fund.”

Members adopted amendments to add oversight language requiring that administrative costs incurred by the council be reviewed by the appropriate appropriations committee. Burningham also noted the fund had drawn outside support: “We received a $750,000 grant from the National Endowment of the Arts to join this endowment to enrich it,” he said, and the amendment clarifies how those federal funds may be handled and administered.

Representative Martin R. Stevens pressed sponsors on the fiscal-note language and the bill’s procedural posture; sponsor and supporters responded that the interest and grant proceeds were essentially restricted and that the bill restores the legislature’s original intent. Representative Brown noted the money “was not all disseminated within the year” and said the bill allows the interest to follow the original endowment grant rather than be treated as unanticipated general revenue.

The House adopted the amendments and passed HB97. The measure will be transmitted to the Senate for further consideration.

The bill was introduced on the floor earlier in the session and debate focused on clarifying the statutory language governing the treatment of interest and federal contributions to the arts endowment and adding a requirement for legislative review of administrative expenditures.

Next steps: HB97 will be sent to the Senate. The House debate made clear the sponsor expects the treasurer’s office to administer interest and matched funds in keeping with the amended language.