H.B. 134

1

SCHOOL AND INSTITUTIONAL TRUST
2 LANDS AMENDMENTS
3 2007 GENERAL SESSION
4 STATE OF UTAH
5 Chief Sponsor: John G. Mathis
6 Senate Sponsor: ____________
7
8 LONG TITLE
9 General Description:
10 This bill changes the distribution of mineral revenue generated from lands acquired by
11 the School and Institutional Trust Lands Administration from the federal government.
12 Highlighted Provisions:
13 This bill:
14 . creates the Land Exchange Distribution Account;
15 . distributes the state's share of mineral revenues from school and institutional trust
16 lands to:
17 . the counties from which the revenue is generated;
18 . the counties where school and institutional trust lands were relinquished to the
19 United States;
20 . the Constitutional Defense Restricted Account;
21 . the State Board of Education;
22 . the Utah Geological Survey; and
23 . the Water Research Laboratory at Utah State University;
24 . eliminates the contributions of mineral revenue from school and institutional trust
25 lands to:
26 . the Permanent Community Impact Fund;
27 . the Rural Electronic Commerce Communications System Fund;

28 . the Rural Development Fund; and
29 . the Mineral Lease Account;
30 . changes how administrative costs are determined;
31 . repeals provisions relating to the Rural Development Fund; and
32 . makes technical changes.
33 Monies Appropriated in this Bill:
34 None
35 Other Special Clauses:
36 None
37 Utah Code Sections Affected:
38 AMENDS:
39 9-4-302, as last amended by Chapters 10 and 299, Laws of Utah 2000
40 9-4-303, as last amended by Chapter 175, Laws of Utah 2001
41 9-4-307, as last amended by Chapters 10 and 299, Laws of Utah 2000
42 9-15-102, as last amended by Chapter 256, Laws of Utah 2002
43 11-14-308, as last amended by Chapter 83, Laws of Utah 2006
44 53C-3-202, as last amended by Chapter 292, Laws of Utah 2002
45 59-21-1, as last amended by Chapter 299, Laws of Utah 2000
46 59-21-2, as last amended by Chapter 148, Laws of Utah 2005
47 63C-4-103, as last amended by Chapter 14, Laws of Utah 2006
48 ENACTS:
49 53C-3-203, Utah Code Annotated 1953
50 53C-3-204, Utah Code Annotated 1953
51 REPEALS:
52 9-14-101, as last amended by Chapter 18, Laws of Utah 2004
53 9-14-102, as last amended by Chapter 256, Laws of Utah 2002
54 9-14-103, as last amended by Chapter 176, Laws of Utah 2002
55 9-14-104, as last amended by Chapter 14, Laws of Utah 2006
56 9-14-105, as enacted by Chapter 368, Laws of Utah 1999
57 9-14-106, as enacted by Chapter 368, Laws of Utah 1999
58

59 Be it enacted by the Legislature of the state of Utah:
60 Section 1. Section 9-4-302 is amended to read:
61 9-4-302. Definitions.
62 As used in this part:
63 [(1) "Acquired lands" is as defined in Section 53C-3-201 .]
64 [(2) "Acquired mineral interests" is as defined in Section 53C-3-201 .]
65 [(3)] (1) "Bonus payments" means[: (a)] that portion of the bonus payments received
66 by the United States government under the Leasing Act paid to the state under Section 35 of
67 the Leasing Act, 30 U.S.C. Sec. 191, together with any interest that had accrued on those
68 payments[; or].
69 [(b) bonus payments collected by the School and Institutional Trust Lands
70 Administration created by Section 53C-1-201 from the lease of:]
71 [(i) minerals on acquired lands; or]
72 [(ii) acquired mineral interests.]
73 [(4)] (2) "Impact board" means the Permanent Community Impact Fund Board created
74 under Section 9-4-304 .
75 [(5)] (3) "Impact fund" means the Permanent Community Impact Fund established by
76 this chapter.
77 [(6)] (4) "Interlocal Agency" means a legal or administrative entity created by a
78 subdivision or combination of subdivisions under the authority of Title 11, Chapter 13,
79 Interlocal Cooperation Act.
80 [(7)] (5) "Leasing Act" means the Mineral Lands Leasing Act of 1920, 30 U.S.C. Sec.
81 181 et seq.
82 [(8)] (6) "Subdivision" means a county, city, town, county service area, special service
83 district, special improvement district, water conservancy district, water improvement district,
84 sewer improvement district, housing authority, building authority, school district, or public
85 postsecondary institution organized under the laws of this state.
86 Section 2. Section 9-4-303 is amended to read:
87 9-4-303. Impact fund -- Deposits and contents -- Use of fund monies.
88 (1) There is created an enterprise fund entitled the "Permanent Community Impact
89 Fund."

90 (2) The fund consists of:
91 (a) all amounts appropriated to the impact fund under Section 59-21-2 ;
92 (b) bonus payments deposited to the impact fund pursuant to Subsection 59-21-1 (2);
93 [(c) bonus payments deposited to the impact fund pursuant to Section 53C-3-202 ;]
94 [(d)] (c) all amounts received for the repayment of loans made by the impact board
95 under this chapter; and
96 [(e)] (d) all other monies appropriated or otherwise made available to the impact fund
97 by the Legislature.
98 (3) The state treasurer shall:
99 (a) invest the monies in the impact fund by following the procedures and requirements
100 of Title 51, Chapter 7, State Money Management Act; and
101 (b) deposit all interest or other earnings derived from those investments into the impact
102 fund.
103 (4) The amounts in the impact fund available for loans, grants, administrative costs, or
104 other purposes of this part shall be limited to that which the Legislature appropriates for these
105 purposes.
106 (5) Federal mineral lease revenue received by the state under the Leasing Act that is
107 deposited into the impact fund shall be used:
108 (a) in a manner consistent with:
109 (i) the Leasing Act; and
110 (ii) this part; and
111 (b) for loans, grants, or both to state agencies or subdivisions that are socially or
112 economically impacted by the leasing of minerals under the Leasing Act.
113 [(6) Mineral lease revenue collected by the School and Institutional Trust Lands
114 Administration from the lease of minerals on acquired lands or the lease of acquired mineral
115 interests that is deposited into the impact fund shall be used:]
116 [(a) in a manner consistent with this part; and]
117 [(b) for loans, grants, or both to state agencies or subdivisions socially or economically
118 impacted by the leasing of:]
119 [(i) minerals on acquired lands; or]
120 [(ii) acquired mineral interests.]

121 Section 3. Section 9-4-307 is amended to read:
122 9-4-307. Impact fund administered by impact board -- Eligibility for assistance --
123 Review by board -- Administration costs -- Annual report.
124 (1) (a) The impact board shall:
125 (i) administer the impact fund in a manner that will keep a portion of the impact fund
126 revolving;
127 (ii) determine provisions for repayment of loans; and
128 (iii) establish criteria for determining eligibility for assistance under this part.
129 (b) [(i)] Criteria for awarding loans or grants made from funds described in Subsection
130 9-4-303 (5) shall be consistent with Subsection 9-4-303 (5).
131 [(ii) Criteria for awarding loans or grants made from funds described in Subsection
132 9-4-303 (6) shall be consistent with Subsections 9-4-303 (6) and 9-4-305 (1)(a).]
133 (c) In order to receive assistance under this part, subdivisions and interlocal agencies
134 shall submit formal applications containing the information that the impact board requires.
135 (2) In determining eligibility for loans and grants under this part, the impact board shall
136 consider the following:
137 (a) the subdivision's or interlocal agency's current mineral lease production;
138 (b) the feasibility of the actual development of a resource that may impact the
139 subdivision or interlocal agency directly or indirectly;
140 (c) current taxes being paid by the subdivision's or interlocal agency's residents;
141 (d) the borrowing capacity of the subdivision or interlocal agency, its ability and
142 willingness to sell bonds or other securities in the open market, and its current and authorized
143 indebtedness;
144 (e) all possible additional sources of state and local revenue, including utility user
145 charges;
146 (f) the availability of federal assistance funds;
147 (g) probable growth of population due to actual or prospective natural resource
148 development in an area;
149 (h) existing public facilities and services;
150 (i) the extent of the expected direct or indirect impact upon public facilities and
151 services of the actual or prospective natural resource development in an area; and

152 (j) the extent of industry participation in an impact alleviation plan, either as specified
153 in Title 63, Chapter 51, Resource Development, or otherwise.
154 (3) The impact board may not fund any education project that could otherwise have
155 reasonably been funded by a school district through a program of annual budgeting, capital
156 budgeting, bonded indebtedness, or special assessments.
157 (4) The impact board may restructure all or part of the agency's or subdivision's
158 liability to repay loans for extenuating circumstances.
159 (5) The impact board shall:
160 (a) review the proposed uses of the impact fund for loans or grants before approving
161 them and may condition its approval on whatever assurances that the impact board considers to
162 be necessary to ensure that the proceeds of the loan or grant will be used in accordance with the
163 Leasing Act and this part; and
164 (b) ensure that each loan specifies the terms for repayment and is evidenced by general
165 obligation, special assessment, or revenue bonds, notes, or other obligations of the appropriate
166 subdivision or interlocal agency issued to the impact board under whatever authority for the
167 issuance of those bonds, notes, or obligations exists at the time of the loan.
168 (6) The impact board shall allocate from the impact fund to the department those funds
169 that are appropriated by the Legislature for the administration of the impact fund, but this
170 amount may not exceed 2% of the annual receipts to the impact fund.
171 (7) The department shall make an annual report to the Legislature concerning the
172 number and type of loans and grants made as well as a list of subdivisions and interlocal
173 agencies that received this assistance.
174 Section 4. Section 9-15-102 is amended to read:
175 9-15-102. Rural Electronic Commerce Communications System Fund -- Deposits
176 and contents -- Interest -- Administration.
177 (1) In order to preserve and promote communications systems, such as broadcast
178 television, in the rural areas of the state, there is created a restricted special revenue fund
179 entitled the "Rural Electronic Commerce Communications System Fund."
180 (2) The fund shall consist of:
181 (a) monies deposited to the fund under this chapter; and
182 [(b) monies deposited to the fund under Section 53C-3-202 ; and]

183 [(c)] (b) bond proceeds from the issuance and sale of revenue bonds authorized under
184 Subsection 9-15-104 (2).
185 (3) The fund shall earn interest, which shall be deposited in the fund.
186 (4) Any unallocated balance in the fund at the end of a fiscal year shall be nonlapsing.
187 (5) The division may use fund monies for administration of the fund, but not to exceed
188 2% of the annual receipts to the fund.
189 Section 5. Section 11-14-308 is amended to read:
190 11-14-308. Special service district bonds secured by federal mineral lease
191 payments -- Use of bond proceeds -- Bond resolution -- Nonimpairment of appropriation
192 formula -- Issuance of bonds.
193 (1) Special service districts may:
194 (a) issue bonds payable, in whole or in part, from federal mineral lease payments which
195 are to be deposited into the Mineral Lease Account under Section 59-21-1 and distributed to
196 special service districts under Subsection 59-21-2 [(3)](2)(h); or
197 (b) pledge all or any part of the mineral lease payments referred to in Subsection (1)(a)
198 as an additional source of payment for their general obligation bonds.
199 (2) The proceeds of these bonds may be used:
200 (a) to construct, repair, and maintain streets and roads;
201 (b) to fund any reserves and costs incidental to the issuance of the bonds and pay any
202 associated administrative costs; and
203 (c) for capital projects of the special service district.
204 (3) (a) The special service district board shall enact a resolution authorizing the
205 issuance of bonds which, until the bonds have been paid in full:
206 (i) shall be irrevocable; and
207 (ii) may not be amended in any manner that would:
208 (A) impair the rights of the bond holders; or
209 (B) jeopardize the timely payment of principal or interest when due.
210 (b) Notwithstanding any other provision of this chapter, the resolution may contain
211 covenants with the bond holder regarding:
212 (i) mineral lease payments, or their disposition;
213 (ii) the issuance of future bonds; or

214 (iii) other pertinent matters considered necessary by the governing body to:
215 (A) assure the marketability of the bonds; or
216 (B) insure the enforcement, collection, and proper application of mineral lease
217 payments.
218 (4) (a) Except as provided in Subsection (4)(b), the state may not alter, impair, or limit
219 the statutory appropriation formula provided in Subsection 59-21-2 [(3)](2)(h), in a manner that
220 reduces the amounts to be distributed to the special service district until the bonds and the
221 interest on the bonds are fully met and discharged. Each special service district may include
222 this pledge and undertaking of the state in these bonds.
223 (b) Nothing in this section:
224 (i) may preclude the alteration, impairment, or limitation of these bonds if adequate
225 provision is made by law for the protection of the bond holders; or
226 (ii) shall be construed:
227 (A) as a pledge guaranteeing the actual dollar amount ultimately received by individual
228 special service districts;
229 (B) to require the Department of Transportation to allocate the mineral lease payments
230 in a manner contrary to the general allocation method described in Subsection
231 59-21-2 [(3)](2)(h); or
232 (C) to limit the Department of Transportation in making rules or procedures allocating
233 mineral lease payments pursuant to Subsection 59-21-2 [(3)](2)(h).
234 (5) (a) The average annual installments of principal and interest on bonds to which
235 mineral lease payments have been pledged as the sole source of payment may not at any one
236 time exceed:
237 (i) 80% of the total mineral lease payments received by the issuing entity during the
238 fiscal year of the issuing entity immediately preceding the fiscal year in which the resolution
239 authorizing the issuance of bonds is adopted; or
240 (ii) if the bonds are issued during the first fiscal year the issuing entity is eligible to
241 receive funds, 60% of the amount estimated by the Department of Transportation to be
242 appropriated to the issuing entity in that fiscal year.
243 (b) The Department of Transportation shall not be liable for any loss or damage
244 resulting from reliance on the estimates.

245 (6) The final maturity date of the bonds may not exceed 15 years from the date of their
246 issuance.
247 (7) Bonds may not be issued under this section after December 31, 2010.
248 (8) Bonds which are payable solely from a special fund into which mineral lease
249 payments are deposited constitute a borrowing based solely upon the credit of the mineral lease
250 payments received or to be received by the special service district and do not constitute an
251 indebtedness or pledge of the general credit of the special service district or the state.
252 Section 6. Section 53C-3-202 is amended to read:
253 53C-3-202. Collection and distribution of revenues from federal land exchange
254 parcels.
255 (1) The director is responsible for the collection of all bonus payments, rentals, and
256 royalties from the lease of:
257 (a) minerals on acquired lands; and
258 (b) acquired mineral interests.
259 (2) The director shall:
260 (a) [except as provided in Subsections (3) and (4),] no later than the last day of the
261 second month following each calendar quarter, distribute all bonus payments received during
262 the calendar quarter from the lease of coal, oil and gas, and coalbed methane on the identified
263 tracts as follows:
264 (i) 50% to the United States; and
265 [(ii) 12.16% to the Permanent Community Impact Fund created in Section 9-4-303 ;]
266 [(iii) 20% to the Constitutional Defense Restricted Account created in Section
267 63C-4-103 ;]
268 [(iv) 15% to the Rural Electronic Commerce Communications System Fund created by
269 Section 9-15-102 ; and]
270 [(v) 2.84% to the Rural Development Fund created under Section 9-14-102 ; and]
271 (ii) 50% to the Land Exchange Distribution Account created in Section 53C-3-203 ; and
272 (b) [except as provided in Subsections (3) and (4),] no later than the last day of the
273 second month following each calendar quarter, distribute all rentals and royalties received
274 during the calendar quarter from the lease of subject minerals on the acquired lands and the
275 lease of acquired mineral interests as follows:

276 (i) 50% to the Land Grant Management Fund created by Section 53C-3-101 ; and
277 [(ii) 39.5% to the Mineral Lease Account created by Subsection 59-21-2 (3);]
278 [(iii) 4.5% to the Constitutional Defense Restricted Account created by Section
279 63C-4-103 ;]
280 [(iv) 3.0% to the Rural Electronic Commerce Communications System Fund created by
281 Section 9-15-102 ; and]
282 [(v) 3.0% to the Rural Development Fund created by Section 9-14-102 .]
283 [(3) Notwithstanding Subsections (2)(a), (2)(b), and (4), if the distribution required by
284 Subsection (2)(a)(iii), (2)(b)(iii), or (4) would cause the balance of the Constitutional Defense
285 Restricted Account to exceed $2,000,000, the director shall distribute to the Permanent
286 Community Impact Fund an amount equal to the difference between:]
287 [(a) what the total balance of the Constitutional Defense Restricted Account would be
288 if, but for this Subsection (3), a distribution described in Subsection (2)(a)(iii), (2)(b)(iii), or (4)
289 was made; and]
290 [(b) $2,000,000.]
291 [(4) Notwithstanding Subsections (2)(a) and (b), and except as provided in Subsection
292 (3), for each fiscal year the director shall deposit:]
293 [(a) the first $750,000 of distributions required by Subsections (2)(a)(iv) and (2)(b)(iv)
294 into the Rural Electronic Commerce Communications System Fund; and]
295 [(b) any amounts exceeding the $750,000 described in Subsection (4)(a) that would be
296 distributed into the Rural Electronic Commerce Communications System Fund but for this
297 Subsection (4) into the Constitutional Defense Restricted Account.]
298 (ii) 50% to the Land Exchange Distribution Account created in Section 53C-3-203 .
299 [(5)] (3) (a) The director may retain up to 3% of the monies collected under Subsection
300 (1) to pay for administrative costs incurred under Subsection (1).
301 (b) The administrative costs may be deducted prior to the distributions made under
302 Subsections (2)(a) and (b).
303 (c) The director shall keep the administrative cost deductions in separate accounts.
304 (d) (i) For purposes of this section, administrative costs[: (A)] include:
305 [(I)] (A) direct costs incurred by the administration; and
306 [(II)] (B) out-of-pocket expenditures incurred by the administration that are directly

307 attributable to leasing or management of the acquired lands for subject minerals or acquired
308 mineral interests[; and].
309 [(B) shall be determined in a manner similar to that used by the federal government
310 pursuant to 30 U.S.C. Sec. 191(b).]
311 (ii) If the administration includes out-of-pocket expenditures under Subsection [(5)]
312 (3)(d)(i) in determining its costs, those expenditures may not be included in its general
313 calculation of direct costs.
314 (e) (i) At the end of each fiscal year, the director shall reconcile the amount actually
315 spent under Subsection [(5)] (3)(d) with the amount retained under Subsection [(5)] (3)(a).
316 (ii) The monies retained under Subsection [(5)] (3)(a) are nonlapsing.
317 Section 7. Section 53C-3-203 is enacted to read:
318 53C-3-203. Land Exchange Distribution Account -- School and Institutional Trust
319 Land Impact Fund.
320 (1) As used in this section, "account" means the Land Exchange Distribution Account
321 created in Subsection (2)(a).
322 (2) (a) There is created within the General Fund a restricted account known as the Land
323 Exchange Distribution Account.
324 (b) The account shall consist of:
325 (i) all revenue deposited in the account as required by Subsections 53C-3-202 (2)(a)(ii)
326 and (2)(b)(ii); and
327 (ii) interest on account monies.
328 (3) For fiscal years beginning on or after fiscal year 2007-08, the Legislature shall
329 annually appropriate from the account:
330 (a) 55% of all deposits made to the account to counties in amounts proportionate to the
331 amounts of mineral revenue generated from the acquired land located in each county, to be
332 used to mitigate the impacts caused by mineral development;
333 (b) 25% of all deposits made to the account to counties in amounts proportionate to the
334 total surface and mineral acreage within each county that was conveyed to the United States
335 under the agreement, to be used to mitigate the impacts caused by mineral development;
336 (c) 7.5% of all deposits made to the account to the State Board of Education, to be used
337 for education research and experimentation in the use of staff and facilities designed to

338 improve the quality of education in Utah;
339 (d) 2.5% of all deposits made to the account to the Geological Survey, to be used for
340 natural resources development in the state;
341 (e) 2.5% of all deposits made to the account to the Water Research Laboratory at Utah
342 State University, to be used for water development in the state; and
343 (f) 7.5% of all deposits made to the account to the Constitutional Defense Restricted
344 Account created in Section 63C-4-103 .
345 Section 8. Section 53C-3-204 is enacted to read:
346 53C-3-204. Collection and distribution of revenue from future state-federal land
347 exchanges.
348 (1) If the administration is obligated to share mineral bonus, rental, or royalty revenue
349 with the state by federal law in future land exchanges between the United States and the
350 administration, the director shall collect the state's share of the mineral bonus, rental, and
351 royalty revenue and deposit it into the Land Exchange Distribution Account created in Section
352 53C-3-203 .
353 (2) The director shall distribute the state's share of the revenues generated from future
354 land exchanges from the Land Exchange Distribution Account proportionately in accordance
355 with Subsection 53C-3-203 (3), except that the total surface and mineral acreage conveyed to
356 the United States for purposes of Subsection 53C-3-203 (3)(b) shall be determined separately
357 with respect to each future exchange.
358 (3) (a) The director may retain up to 1.5% of the monies collected under Subsection (1)
359 to pay for administrative costs incurred in the leasing or management of lands producing
360 monies under Subsection (1).
361 (b) The administrative costs may be deducted prior to the deposit made under
362 Subsection (1).
363 (c) The director shall keep the administrative cost deductions in separate accounts.
364 (d) The monies retained under this Subsection (3) are nonlapsing.
365 Section 9. Section 59-21-1 is amended to read:
366 59-21-1. Disposition of federal mineral lease monies -- Priority to political
367 subdivisions impacted by mineral development -- Disposition of mineral bonus payments
368 -- Appropriation of monies attributable to royalties from extraction of minerals on

369 federal land located within boundaries of Grand Staircase-Escalante National
370 Monument.
371 (1) Except as provided in Subsections (2) through (4), all monies received from the
372 United States under the provisions of the Mineral Lands Leasing Act, 30 U.S.C. Sec. 181 et
373 seq., shall:
374 (a) be deposited in the Mineral Lease Account of the General Fund; and
375 (b) be appropriated by the Legislature giving priority to those subdivisions of the state
376 socially or economically impacted by development of minerals leased under the Mineral Lands
377 Leasing Act, for:
378 (i) planning;
379 (ii) construction and maintenance of public facilities; and
380 (iii) provision of public services.
381 (2) Seventy percent of money received from federal mineral lease bonus payments
382 shall be deposited into the Permanent Community Impact Fund and shall be used as provided
383 in Title 9, Chapter 4, Part 3, Community Impact Alleviation.
384 (3) Thirty percent of money received from federal mineral lease bonus payments shall
385 be deposited in the Mineral Bonus Account created by Subsection 59-21-2 [(2)](1) and
386 appropriated as provided in that subsection.
387 (4) (a) For purposes of this Subsection (4):
388 (i) the "boundaries of the Grand Staircase-Escalante National Monument" means the
389 boundaries:
390 (A) established by Presidential Proclamation No. 6920, 61 Fed. Reg. 50,223 (1996);
391 and
392 (B) modified by:
393 (I) Pub. L. No. 105-335, 112 Stat. 3139; and
394 (II) Pub. L. No. 105-355, 112 Stat. 3247; and
395 (ii) a special service district, school district, or federal land is considered to be located
396 within the boundaries of the Grand Staircase-Escalante National Monument if a portion of the
397 special service district, school district, or federal land is located within the boundaries
398 described in Subsection (4)(a)(i).
399 (b) Beginning on July 1, 1999, the Legislature shall appropriate, as provided in

400 Subsections (4)(c) through (g), monies received from the United States that are attributable to
401 royalties from the extraction of minerals on federal land that, on September 18, 1996, was
402 located within the boundaries of the Grand Staircase-Escalante National Monument.
403 (c) The Legislature shall annually appropriate 40% of the monies described in
404 Subsection (4)(b) to the Department of Transportation to be distributed by the Department of
405 Transportation to special service districts that are:
406 (i) established by counties under Title 17A, Chapter 2, Part 13, Utah Special Service
407 District Act;
408 (ii) socially or economically impacted by the development of minerals under the
409 Mineral Lands Leasing Act; and
410 (iii) located within the boundaries of the Grand Staircase-Escalante National
411 Monument.
412 (d) The Department of Transportation shall distribute the money described in
413 Subsection (4)(c) in amounts proportionate to the amount of federal mineral lease money
414 generated by the county in which a special service district is located.
415 (e) The Legislature shall annually appropriate 40% of the monies described in
416 Subsection (4)(b) to the State Board of Education to be distributed equally to school districts
417 that are:
418 (i) socially or economically impacted by the development of minerals under the
419 Mineral Lands Leasing Act; and
420 (ii) located within the boundaries of the Grand Staircase-Escalante National
421 Monument.
422 (f) The Legislature shall annually appropriate 2.25% of the monies described in
423 Subsection (4)(b) to the Utah Geological Survey to facilitate the development of energy and
424 mineral resources in counties that are:
425 (i) socially or economically impacted by the development of minerals under the
426 Mineral Lands Leasing Act; and
427 (ii) located within the boundaries of the Grand Staircase-Escalante National
428 Monument.
429 (g) Seventeen and three-fourths percent of the monies described in Subsection (4)(b)
430 shall be deposited annually into the State School Fund established by Utah Constitution Article

431 X, Section 5.
432 Section 10. Section 59-21-2 is amended to read:
433 59-21-2. Definitions -- Mineral Bonus Account created -- Contents -- Use of
434 Mineral Bonus Account money -- Mineral Lease Account created -- Contents --
435 Appropriation of monies from Mineral Lease Account.
436 [(1) As used in this section:]
437 [(a) "Acquired lands" is as defined in Section 53C-3-201 .]
438 [(b) "Acquired mineral interests" is as defined in Section 53C-3-201 .]
439 [(2)] (1) (a) The Mineral Bonus Account is created within the General Fund.
440 (b) The Mineral Bonus Account consists of federal mineral lease bonus payments
441 deposited pursuant to Subsection 59-21-1 (3).
442 (c) The Legislature shall make appropriations from the Mineral Bonus Account in
443 accordance with Section 35 of the Mineral Lands Leasing Act of 1920, 30 U.S.C. Sec. 191.
444 (d) The state treasurer shall:
445 (i) invest the money in the Mineral Bonus Account by following the procedures and
446 requirements of Title 51, Chapter 7, State Money Management Act; and
447 (ii) deposit all interest or other earnings derived from the account into the Mineral
448 Bonus Account.
449 [(3)] (2) (a) The Mineral Lease Account is created within the General Fund.
450 (b) The Mineral Lease Account consists of[: (i)] federal mineral lease money deposited
451 pursuant to Subsection 59-21-1 (1)[; and].
452 [(ii) rentals and royalties from the lease of the following deposited pursuant to Section
453 53C-3-202 :]
454 [(A) minerals on acquired lands; or]
455 [(B) acquired mineral interests.]
456 (c) The Legislature shall make appropriations from the Mineral Lease Account as
457 provided in Subsection 59-21-1 (1) and this Subsection [(3)] (2).
458 (d) The Legislature shall annually appropriate 32.5% of all deposits made to the
459 Mineral Lease Account to the Permanent Community Impact Fund established by Section
460 9-4-303 .
461 (e) The Legislature shall annually appropriate 2.25% of all deposits made to the

462 Mineral Lease Account to the State Board of Education, to be used for education research and
463 experimentation in the use of staff and facilities designed to improve the quality of education in
464 Utah.
465 (f) The Legislature shall annually appropriate 2.25% of all deposits made to the
466 Mineral Lease Account to the Utah Geological Survey, to be used for activities carried on by
467 the survey having as a purpose the development and exploitation of natural resources in the
468 state.
469 (g) The Legislature shall annually appropriate 2.25% of all deposits made to the
470 Mineral Lease Account to the Water Research Laboratory at Utah State University, to be used
471 for activities carried on by the laboratory having as a purpose the development and exploitation
472 of water resources in the state.
473 (h) (i) The Legislature shall annually appropriate to the Department of Transportation
474 40% of all deposits made to the Mineral Lease Account to be distributed as provided in
475 Subsection [(3)] (2)(h)(ii) to:
476 (A) counties;
477 (B) special service districts established:
478 (I) by counties;
479 (II) under Title 17A, Chapter 2, Part 13, Utah Special Service District Act; and
480 (III) for the purpose of constructing, repairing, or maintaining roads; or
481 (C) special service districts established:
482 (I) by counties;
483 (II) under Title 17A, Chapter 2, Part 13, Utah Special Service District Act; and
484 (III) for other purposes authorized by statute.
485 (ii) The Department of Transportation shall allocate the funds specified in Subsection
486 [(3)] (2)(h)(i):
487 (A) in amounts proportionate to the amount of mineral lease money generated by each
488 county; and
489 (B) to a county or special service district established by a county under Title 17A,
490 Chapter 2, Part 13, Utah Special Service District Act, as determined by the county legislative
491 body.
492 (i) (i) The Legislature shall annually appropriate 5% of all deposits made to the

493 Mineral Lease Account to the Department of Community and Culture to be distributed to:
494 (A) special service districts established:
495 (I) by counties;
496 (II) under Title 17A, Chapter 2, Part 13, Utah Special Service District Act; and
497 (III) for the purpose of constructing, repairing, or maintaining roads; or
498 (B) special service districts established:
499 (I) by counties;
500 (II) under Title 17A, Chapter 2, Part 13, Utah Special Service District Act; and
501 (III) for other purposes authorized by statute.
502 (ii) The Department of Community and Culture may distribute the amounts described
503 in Subsection [(3)] (2)(i)(i) only to special service districts established under Title 17A,
504 Chapter 2, Part 13, Utah Special Service District Act, by counties:
505 (A) of the third, fourth, fifth, or sixth class;
506 (B) in which 4.5% or less of the mineral lease moneys within the state are generated;
507 and
508 (C) that are significantly socially or economically impacted as provided in Subsection
509 (3)(i)(iii) by the development of[: (I)] minerals under the Mineral Lands Leasing Act, 30
510 U.S.C. Sec. 181 et seq.[;]
511 [(II) minerals on acquired lands; or]
512 [(III) acquired mineral interests.]
513 (iii) The significant social or economic impact required under Subsection [(3)]
514 (2)(i)(ii)(C) shall be as a result of:
515 (A) the transportation within the county of hydrocarbons, including solid hydrocarbons
516 as defined in Section 59-5-101 ;
517 (B) the employment of persons residing within the county in hydrocarbon extraction,
518 including the extraction of solid hydrocarbons as defined in Section 59-5-101 ; or
519 (C) a combination of Subsections [(3)] (2)(i)(iii)(A) and (B).
520 (iv) For purposes of distributing the appropriations under this Subsection [(3)] (2)(i) to
521 special service districts established by counties under Title 17A, Chapter 2, Part 13, Utah
522 Special Service District Act, the Department of Community and Culture shall:
523 (A) (I) allocate 50% of the appropriations equally among the counties meeting the

524 requirements of Subsections [(3)] (2)(i)(ii) and (iii); and
525 (II) allocate 50% of the appropriations based on the ratio that the population of each
526 county meeting the requirements of Subsections [(3)] (2)(i)(ii) and (iii) bears to the total
527 population of all of the counties meeting the requirements of Subsections [(3)] (2)(i)(ii) and
528 (iii); and
529 (B) after making the allocations described in Subsection [(3)] (2)(i)(iv)(A), distribute
530 the allocated revenues to special service districts established by the counties under Title 17A,
531 Chapter 2, Part 13, Utah Special Service District Act, as determined by the executive director
532 of the Department of Community and Culture after consulting with the county legislative
533 bodies of the counties meeting the requirements of Subsections [(3)] (2)(i)(ii) and (iii).
534 (v) The executive director of the Department of Community and Culture:
535 (A) shall determine whether a county meets the requirements of Subsections [(3)]
536 (2)(i)(ii) and (iii);
537 (B) shall distribute the appropriations under Subsection [(3)] (2)(i)(i) to special service
538 districts established by counties under Title 17A, Chapter 2, Part 13, Utah Special Service
539 District Act, that meet the requirements of Subsections [(3)] (2)(i)(ii) and (iii); and
540 (C) in accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act,
541 may make rules:
542 (I) providing a procedure for making the distributions under this Subsection [(3)] (2)(i)
543 to special service districts; and
544 (II) defining the term "population" for purposes of Subsection [(3)] (2)(i)(iv).
545 (j) (i) The Legislature shall annually make the following appropriations from the
546 Mineral Lease Account:
547 (A) an amount equal to 52 cents multiplied by the number of acres of school or
548 institutional trust lands, lands owned by the Division of Parks and Recreation, and lands owned
549 by the Division of Wildlife Resources that are not under an in lieu of taxes contract, to each
550 county in which those lands are located;
551 (B) to each county in which school or institutional trust lands are transferred to the
552 federal government after December 31, 1992, an amount equal to the number of transferred
553 acres in the county multiplied by a payment per acre equal to the difference between 52 cents
554 per acre and the per acre payment made to that county in the most recent payment under the

555 federal payment in lieu of taxes program, 31 U.S.C. Sec. 6901 et seq., unless the federal
556 payment was equal to or exceeded the 52 cents per acre, in which case a payment under this
557 Subsection [(3)] (2)(j)(i)(B) may not be made for the transferred lands;
558 (C) to each county in which federal lands, which are entitlement lands under the federal
559 in lieu of taxes program, are transferred to the school or institutional trust, an amount equal to
560 the number of transferred acres in the county multiplied by a payment per acre equal to the
561 difference between the most recent per acre payment made under the federal payment in lieu of
562 taxes program and 52 cents per acre, unless the federal payment was equal to or less than 52
563 cents per acre, in which case a payment under this Subsection [(3)] (2)(j)(i)(C) may not be
564 made for the transferred land; and
565 (D) to a county of the fifth or sixth class, an amount equal to the product of:
566 (I) $1,000; and
567 (II) the number of residences described in Subsection [(3)] (2)(j)(iv) that are located
568 within the county.
569 (ii) A county receiving money under Subsection [(3)] (2)(j)(i) may, as determined by
570 the county legislative body, distribute the money or a portion of the money to:
571 (A) special service districts established by the county under Title 17A, Chapter 2, Part
572 13, Utah Special Service District Act;
573 (B) school districts; or
574 (C) public institutions of higher education.
575 (iii) (A) Beginning in fiscal year 1994-95 and in each year after fiscal year 1994-95, the
576 Division of Finance shall increase or decrease the amounts per acre provided for in Subsections
577 [(3)] (2)(j)(i)(A) through (C) by the average annual change in the Consumer Price Index for all
578 urban consumers published by the Department of Labor.
579 (B) For fiscal years beginning on or after fiscal year 2001-02, the Division of Finance
580 shall increase or decrease the amount described in Subsection [(3)] (2)(j)(i)(D)(I) by the
581 average annual change in the Consumer Price Index for all urban consumers published by the
582 Department of Labor.
583 (iv) Residences for purposes of Subsection [(3)] (2)(j)(i)(D)(II) are residences that are:
584 (A) owned by:
585 (I) the Division of Parks and Recreation; or

586 (II) the Division of Wildlife Resources;
587 (B) located on lands that are owned by:
588 (I) the Division of Parks and Recreation; or
589 (II) the Division of Wildlife Resources; and
590 (C) are not subject to taxation under:
591 (I) Chapter 2, Property Tax Act; or
592 (II) Chapter 4, Privilege Tax.
593 (k) The Legislature shall annually appropriate to the Permanent Community Impact
594 Fund all deposits remaining in the Mineral Lease Account after making the appropriations
595 provided for in Subsections [(3)] (2)(d) through (j).
596 [(4)] (3) (a) Each agency, board, institution of higher education, and political
597 subdivision receiving money under this chapter shall provide the Legislature, through the
598 Office of the Legislative Fiscal Analyst, with a complete accounting of the use of that money
599 on an annual basis.
600 (b) The accounting required under Subsection [(4)] (3)(a) shall:
601 (i) include actual expenditures for the prior fiscal year, budgeted expenditures for the
602 current fiscal year, and planned expenditures for the following fiscal year; and
603 (ii) be reviewed by the Economic Development and Human Resources Appropriation
604 Subcommittee as part of its normal budgetary process under Title 63, Chapter 38, Budgetary
605 Procedures Act.
606 Section 11. Section 63C-4-103 is amended to read:
607 63C-4-103. Creation of Constitutional Defense Restricted Account -- Sources of
608 funds -- Uses of funds -- Reports.
609 (1) There is created a restricted account within the General Fund known as the
610 Constitutional Defense Restricted Account.
611 (2) The account consists of monies from the following revenue sources:
612 (a) monies deposited to the account as required by Section [ 53C-3-202 ] 53C-3-203 ;
613 (b) voluntary contributions;
614 (c) monies received by the Constitutional Defense Council from other state agencies;
615 and
616 (d) appropriations made by the Legislature.

617 (3) Funds in the account shall be nonlapsing.
618 (4) The account balance may not exceed $2,000,000.
619 (5) The Legislature may annually appropriate monies from the Constitutional Defense
620 Restricted Account to one or more of the following:
621 (a) the Constitutional Defense Council to carry out its duties in Section 63C-4-102 ;
622 (b) the Public Lands Policy Coordinating Office to carry out its duties in Section
623 63-38d-603 ;
624 (c) the Public Lands Policy Coordinating Council to carry out its duties in Section
625 63-38d-605 [.];
626 (d) the Office of the Governor, to be used only for the purpose of asserting, defending,
627 or litigating state and local government rights under R.S. 2477, in accordance with a plan
628 developed and approved as provided in Section 63C-4-104 ;
629 (e) a county or association of counties to assist counties, consistent with the purposes
630 of the council, in pursuing issues affecting the counties; or
631 (f) the Office of the Attorney General, to be used only for public lands counsel and
632 assistance and litigation to the state or local governments including asserting, defending, or
633 litigating state and local government rights under R.S. 2477 in accordance with a plan
634 developed and approved as provided in Section 63C-4-104 .
635 (6) (a) The Constitutional Defense Council shall require that any entity that receives
636 monies from the Constitutional Defense Restricted Account provide financial reports and
637 litigation reports to the Council.
638 (b) Nothing in this Subsection (6) prohibits the council from closing a meeting under
639 Title 52, Chapter 4, Open and Public Meetings Act, or prohibits the council from complying
640 with Title 63, Chapter 2, Government Records Access and Management Act.
641 Section 12. Repealer.
642 This bill repeals:
643 Section 9-14-101, Definitions.
644 Section 9-14-102, Rural Development Fund -- Deposits and contents -- Interest --
645 Administration.
646 Section 9-14-103, Rural Development Fund Board -- Members -- Terms -- Chair --
647 Quorum -- Expenses.

648 Section 9-14-104, Board duties and powers.
649 Section 9-14-105, Eligibility for assistance -- Application -- Review by board.
650 Section 9-14-106, Division to distribute grant money -- Annual report.




Legislative Review Note
as of 1-18-07 5:47 PM

Office of Legislative Research and General Counsel