Senate advances school trust-lands bills to expand investment oversight and extend task force

Two related measures addressing management of school trust lands and the school trust portfolio advanced in the Utah Senate Jan. 23.

Senate Bill 20, presented by Senator Nelson, would amend the State Money Management Act to allow the school trust lands investment portfolio to be managed in a way that raises its investment potential while retaining conservative oversight; the bill also proposes an oversight committee to work with the state treasurer. "What we tried to do in this bill was bring the investment potential of the school trust lands portfolio up to the level that's allowed by other investments in the Money Management Act and keep the responsibility and the conservatism that the state has in that investment," Nelson said.

Senate Bill 21 would reauthorize the Public School Trust Lands Task Force so it can complete remaining work after a planned legislative audit. Nelson said the audit of the division of oil, gas, and mining is a first priority and recommended the task force be extended so the Legislature can act on the audit findings.

Questions centered on governance and scope. Senator McOsper asked why a new oversight committee was necessary if an investment advisory committee already exists; Nelson replied the trust portfolio is managed separately and warrants distinct administration. Senator Levitt said trust-land ownership patterns near St. George and Washington County impede city development and urged resolution. Senator McAllister warned of creating ‘‘permanent task forces’’ and suggested reviewing interim committee structure.

Both bills were reported favorably and placed on the third-reading calendar; SB20 was recorded as passing to third reading with 25 ayes and no nays (four absent), and SB21 passed to third reading with 23 ayes, two nays and four absent. The task force audit and consequent possible policy changes were noted as forthcoming matters for the Legislature to address.