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House votes to bring school-district foundations under state Money Management Act amid liability debate
Summary
First substitute HB232 passed 49–23 to subject school-district foundations to the State Money Management Act and clarify investment rules; supporters said the change protects donated funds, opponents warned of added state liability and loss of private autonomy.
Representative Cheryl Allen, who declared a conflict as director of the Davis School District Foundation, sponsored first substitute House Bill 232 to bring school-district foundations under the State Money Management Act and allow them to participate in the state's risk management fund.
Allen said college and university foundations fall under the Money Management Act and that public-school foundations should follow the same rules to protect donated funds. "School district foundations are doing a great service for our public schools," she said, and argued that the bill clarifies investment and risk-management responsibilities.
Opponents raised concerns about liability and whether foundations should remain private. Representative Alexander urged caution, saying some foundations "are beginning to make investments or take risks that maybe they shouldn't" and suggested requiring foundations to convert to public corporations before receiving state risk-management coverage. Representative Steiler and Representative Cohen each spoke in favor of safeguards to protect public funds; Cohen noted he works for a school-district foundation and still supported the bill as a means to manage donated funds prudently.
After debate and recorded votes, the House approved first substitute HB232 by a 49–23 margin and referred the bill to the Senate.
