Utah Code 11-13a-106. Training for board members

(1)

Terms Used In Utah Code 11-13a-106

Controlling interest: means that one or more governmental entities collectively represent a majority of the board's voting power as outlined in the nonprofit corporation's governing documents. See Utah Code 11-13a-102
Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
Governmental nonprofit corporation: means :

(i)	a nonprofit corporation that is wholly owned or wholly controlled by one or more governmental entities, unless the nonprofit corporation receives no operating funding or other financial support from any governmental entity; or

(ii)

a nonprofit corporation in which one or more governmental entities exercise a controlling interest and:

(A)	that exercises taxing authority;

(B)	that imposes a mandatory fee for association or participation with the nonprofit corporation where that association or participation is mandated by law; or

(C)

that receives a majority of the nonprofit corporation's operating funding from one or more governmental entities under the nonprofit corporation's governing documents, except where voluntary membership fees, dues, or assessments compose the operating funding. See Utah Code 11-13a-102

State: when applied to the different parts of the United States, includes a state, district, or territory of the United States. See Utah Code 68-3-12.5

(a)

(i)

Each member of a board of directors of a governmental nonprofit corporation shall complete the training described in Subsection (2)(a):

(A)	within six months after the day on which the member becomes a board member; or

(B)	for a member already in the position of board member on May 14, 2019, before November 14, 2019.

(ii)

If a board member fails to complete the training described in Subsection (2)(a) within the time period specified in Subsection (1)(a)(i):

(A)	the state auditor shall issue a notice of noncompliance to the board member and the relevant board of directors; and

(B)	if the board member fails to complete the training described in Subsection (2)(a) within 30 calendar days after the date of the auditor’s notice of noncompliance, the board member is disqualified and may not act as a board member.

(b)	For the purposes of Subsection (1)(a), a member of a board of directors of a governmental nonprofit corporation takes office each time the member is elected or appointed to a new term.

(2)

The state auditor shall:

(a)	develop a training or other informational resource to aid a governmental nonprofit corporation in implementing best practices for financial controls and board governance;

(b)

provide the training or other informational resource described in Subsection (2)(a) to each of the following entities that provides any required budgeting, expenditure, or financial report to the state auditor:

(i)	a governmental nonprofit corporation; and

(ii)	a state agency or political subdivision of the state that wholly controls or has a controlling interest in a governmental nonprofit corporation, as described in Section 11-13a-102;

(c)	ensure that the training described in Subsection (2)(a) complies with Title 63G, Chapter 22, State Training and Certification Requirements; and

(d)	issue a certificate of completion to each board member that completes the training described in Subsection (2)(a).

Enacted by Chapter 416, 2019 General Session

Previous section

Next section

Chapter 13a Contents