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House approves trust fund to preserve proceeds from Developmental Center property
Summary
House Bill 21 would create a restricted trust from proceeds of property at the Utah State Developmental Center to benefit people with disabilities; floor amendment to keep proceeds at the center failed 32–40 and the bill passed the House 56–16.
The Utah House approved House Bill 21, which would place proceeds from sales or leases of property tied to the Utah State Developmental Center in American Fork into a trust to benefit people with disabilities.
Sponsor Representative Hayman described the bill as responding to the facility’s surplus property and the changing needs of people with disabilities. ‘‘This bill essentially sets up a trust on any land that is sold or leased … and be used for people with disabilities,’’ he told the House. The sponsor said the property includes about 20 acres and facilities whose market value could make the trust substantial; he estimated the potential receipts could ‘‘go over a million dollars.’'
A floor amendment proposed keeping proceeds specifically at the Developmental Center by changing the receiving code citation (from 62A‑5‑103 to 62A‑5‑201). Representative Short argued the amendment would keep funds ‘‘close to home’’ and under local control so the center could directly use the money for services and construction. Opponents, including Representative Howard, said the amendment risked restricting funds too narrowly; Howard recommended leaving the money in the division account to allow use both at the center and for people moved into community settings.
Technical and procedural questions were raised about whether the destination section creates a restricted account or a dedicated‑credit mechanism and whether additional statutory language would be required to create a separate fund. Sponsor and supporters said the trust language would create the dedicated account and preserve assets that were originally intended for people with disabilities.
The amendment to keep funds at the Developmental Center failed on the floor, 32 yes to 40 no. After further debate on purpose and oversight, the House passed HB21 by a roll call of 56 yes and 16 no and referred the bill to the Senate.
Supporters framed the bill as preserving an asset dedicated to a vulnerable population; critics warned about bypassing the appropriation process and losing oversight if large sums are locked in restricted funds. The bill’s successful passage means the Senate will now consider the trust structure and any technical fixes about account creation and oversight.
