Senate advances bill tightening university governance, citing USU audit

SALT LAKE CITY — A Senate bill aimed at tightening governance at public universities advanced on day 34 after sponsors said it was prompted by recent audits of Utah State University.

Senator Wilson, sponsor of first substitute Senate Bill 240 on higher‑education institutional governance, told the chamber the measure responds to audits that examined presidential spending and institutional policies. "This bill is what came about that," Wilson said, explaining it clarifies the roles of boards of trustees, institutional presidents and institutional attorneys and directs the Board of Higher Education to provide independent staff to advise trustees.

Key provisions would require boards of trustees to set spending thresholds that trigger required notification when presidents spend institutional funds, require presidents to consult boards on tuition and fee increases and institutional budgets, and prohibit presidents from hiring outside counsel to handle litigation without written consent from the attorney general's office, sponsors said. The bill also prohibits institutional attorneys from serving in administrative institutional roles and directs rulemaking to clarify attorneys' scope and accountability.

Senator Wilson described the bill as having input from multiple stakeholders, including trustees, the commissioner of higher education, institutional presidents and the Attorney General's Office. After an amendment addressing terminology and the role of institutional attorneys was offered and adopted on the floor, the Senate voted to read the amended substitute for third reading.

Supporters said the changes provide clearer lines of accountability and preserve independent oversight. Sponsor remarks stressed the bill is intended to preserve board authority and add transparency to large institutional expenditures. No floor debate in opposition is recorded in the transcript; sponsors said the bill had been developed with institutional and AG‑office input.

Next steps: the bill was advanced for third reading and, if passed by the full Senate, would go to the House for further consideration and any additional amendments.