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Legislative action that proposed this amendment: SJR6 1996 General Session
Disposition: This amendment took effect following voter ratification. You may read the resulting 1997 Utah Constitution here.
Amends article 6 section 29, article 10 section 5, article 13 section 5, and article 14 section 1,6
The Legislature shall not authorize the State, or any county, city, town, township, district or other political subdivision of the State to lend its credit or subscribe to stock or bonds in aid of any railroad, telegraph or other private individual or corporate enterprise or undertaking, except as provided in Article X, section 5.
[Three amendments proposed by the Legislature in the 1996 General Session amended article 10, section 5, and all were ratified by voters: SJR6, HJR7, SJR17. Because each amendment amended different clauses within this section, they did not conflict and all were integrated into the Utah Constitution.]
(1) There is established a permanent State School Fund which shall consist of revenue from the following sources:
(a) proceeds from the sales of all lands granted by the United States to this state for the support of the public elementary and secondary schools;
(b) 5% of the net proceeds from the sales of United States public lands lying within this state;
(c) all revenues derived from nonrenewable resources on state lands, other than sovereign lands and lands granted for other specific purposes;
(d) all revenues derived from the use of school trust lands; and
(e) other revenues appropriated by the Legislature.
(2) The State School Fund principal shall be safely invested and held by the state in perpetuity. Only the interest received from investment of the State School Fund may be expended for the support of the public elementary and secondary schools. The Legislature may make appropriations from school trust land revenues to provide funding necessary for the proper administration and management of those lands consistent with the state's fiduciary responsibilities towards to beneficiaries of the school land trust. Unexpended balances remaining from the appropriation at the end of each fiscal year shall be deposited in the State School Fund. A portion of the interest earnings of the State School Fund, in an amount equal to the total balance in the State School Fund at the close of each calendar year multiplied by the annual rate of inflation for the preceding year, as determined by the state treasurer, shall be retained in the State School Fund and added to the principal. The State School Fund shall be guaranteed by the state against loss or diversion.
(3) There is established a Uniform School Fund which shall consist of revenue from the following sources:
(a) interest from the State School Fund remaining after deduction of the amount retained in the State School Fund to protect the fund against losses due to inflation;
(b) revenues appropriated by the Legislature;
(c) other revenues received by the fund under any other provision of law or by donation.
(4) The Uniform School Fund shall be maintained and used for the support of the state's public elementary and secondary schools and apportioned as the Legislature shall provide.
(5) (a) The state may guarantee the debt of school districts created in accordance with Article XIV, Section 3, and may guarantee debt incurred to refund the school district debt. Any debt guaranty, the school district debt guaranteed thereby, or any borrowing of the state undertaken to facilitate the payment of the state's obligation under any debt guaranty shall not be included as a debt of the state for purposes of the 1.5% limitation of Article XIV, Section 1.
(b) The Legislature may provide that reimbursement to the state shall be obtained from monies which otherwise would be used for the support of the educational programs of the school district which incurred the debt with respect to which a payment under the state's guaranty was made.
The Legislature shall not impose taxes for the purpose of any county, city, town or other municipal corporation, but may, by law, vest in the corporate authorities thereof, respectively, the power to assess and collect taxes for all purposes of such corporation. Notwithstanding anything to the contrary contained in this Constitution, political subdivisions may share their tax and other revenues with other political subdivisions as provided by statute and the state may guarantee the debt of school districts and may guarantee debt incurred to refund the school district debt as provided in Article X, Section 5.
To meet casual deficits or failures in revenue, and for necessary expenditures for public purposes, including the erection of public buildings, and for the payment of all Territorial indebtedness assumed by the State, the State may contract debts, not exceeding in the aggregate at any one time, an amount equal to one and one-half per centum of the value of the taxable property of the State, as shown by the last assessment for State purposes, previous to the incurring of such indebtedness. But the State shall never contract any indebtedness, except as provided in Article XIV, Section 2, in excess of such amount, and all monies arising from loans herein authorized, shall be applied solely to the purposes for which they were obtained.
The State shall not assume the debt, or any part thereof, of any county, city, town or school district except as provided in Article X, Section 5.