H.B. 138

1

UINTAH BASIN REVITALIZATION FUND
2 2007 GENERAL SESSION
3 STATE OF UTAH
4 Chief Sponsor: Gordon E. Snow
5 Senate Sponsor: ____________
6
7 LONG TITLE
8 General Description:
9 This bill modifies provisions related to the Uintah Basin Revitalization Fund.
10 Highlighted Provisions:
11 This bill:
12 . modifies definitions;
13 . modifies how monies are allocated from the fund to each county and the Ute Indian
14 Tribe of the Uintah and Ouray Reservation, including clarifying the relationship
15 between statute and an interlocal agreement amongst the parties;
16 . addresses how monies from the fund may be used by the Tribe;
17 . removes date restrictions on deposits into the fund;
18 . increases on an ongoing basis the cap on deposits into the fund; and
19 . makes technical changes.
20 Monies Appropriated in this Bill:
21 None
22 Other Special Clauses:
23 This bill takes effect on July 1, 2007.
24 Utah Code Sections Affected:
25 AMENDS:
26 9-10-101, as last amended by Chapter 18, Laws of Utah 2004
27 9-10-104, as enacted by Chapter 341, Laws of Utah 1995

28 9-10-106, as enacted by Chapter 341, Laws of Utah 1995
29 59-5-116, as last amended by Chapter 13, Laws of Utah 2004
30
31 Be it enacted by the Legislature of the state of Utah:
32 Section 1. Section 9-10-101 is amended to read:
33 9-10-101. Definitions.
34 As used in this chapter:
35 (1) "Board" means the Uintah Basin Revitalization Fund Board.
36 (2) "Capital projects" means expenditures for land, improvements on the land, and
37 equipment intended to have long-term beneficial use.
38 (3) "County" means:
39 (a) Duchesne County; or
40 (b) Uintah County.
41 [(3)] (4) "Division" means the Division of Housing and Community Development.
42 [(4)] (5) "Revitalization Fund" means the Uintah Basin Revitalization Fund.
43 [(5)] (6) "Tribe" means the Ute Indian Tribe of the Uintah and Ouray Reservation.
44 Section 2. Section 9-10-104 is amended to read:
45 9-10-104. Duties -- Loans -- Interest.
46 (1) The board shall:
47 (a) subject to the other provisions of this chapter and an agreement entered into under
48 [the] Title 11, Chapter 13, Interlocal Cooperation Act, among the state, [Duchesne and Uintah
49 Counties] the counties, and the Tribe, make recommendations to the division for grants and
50 loans from the revitalization fund to county agencies and the Tribe that are or may be socially
51 or economically impacted, directly or indirectly, by mineral resource development;
52 (b) establish procedures for application for and award of grants and loans including:
53 (i) eligibility criteria;
54 (ii) subject to Subsection 9-10-106 (2)(b), a preference that capital projects, including
55 subsidized and low-income housing, and other one-time need projects and programs have
56 priority over other projects;
57 (iii) a preference [to] for projects and programs that are associated with the geographic
58 area where the oil and gas were produced; and

59 (iv) coordination of projects and programs with other projects and programs funded by
60 federal, state, and local governmental entities;
61 (c) determine the order in which projects will be funded;
62 (d) allocate the amount to be distributed from the revitalization fund for grants or loans
63 to each county and the Tribe during a fiscal year as follows:
64 (i) up to and including the first $3,000,000 that is approved for distribution by the
65 board during a fiscal year, the board may allocate the amount in accordance with the interlocal
66 agreement described by Subsection (1)(a), except that the board may not allocate less than 75%
67 of the amount under the interlocal agreement to the Tribe unless the interlocal agreement is
68 further modified by statute; and
69 (ii) beginning with fiscal year 2007-08, any amount approved for distribution by the
70 board during that fiscal year in excess of $3,000,000 shall be allocated equally amongst each
71 county and the Tribe so that each receives 1/3 of the amount approved for distribution by the
72 board in excess of $3,000,000;
73 [(d)] (e) qualify for, accept, and administer grants, gifts, loans, or other funds from the
74 federal government and from other sources, public or private; and
75 [(e)] (f) perform other duties assigned to it under the [Interlocal Cooperation Act]
76 interlocal agreement described in Subsection (1)(a) that are not prohibited by law or otherwise
77 modified by this chapter.
78 (2) The board shall ensure that loan repayments and interest are deposited into the
79 revitalization fund.
80 (3) The interlocal agreement described in Subsection (1)(a) shall be consistent with the
81 following statutes, including any subsequent amendments to those statutes:
82 (a) this chapter;
83 (b) Title 11, Chapter 13, Interlocal Cooperation Act;
84 (c) Section 59-5-116 ; and
85 (d) any other applicable provision of this Utah Code.
86 Section 3. Section 9-10-106 is amended to read:
87 9-10-106. Eligibility for assistance -- Applications -- Review by board -- Terms --
88 Security.
89 (1) Counties or the Tribe that wish to receive loans or grants from the board shall

90 submit formal applications to the board containing the information required by the board.
91 (2) The board may not fund:
92 (a) start-up or operational costs of private business ventures; and
93 (b) general operating budgets of the counties or the Tribe[.], except that the Tribe may
94 use a grant or loan to fund costs associated with the management and administration of energy
95 or mineral development on:
96 (i) lands held in trust by the United States for the Tribe and its members; or
97 (ii) lands owned by the Tribe.
98 (3) (a) The board shall review each application for a loan or grant before approving it.
99 (b) The board may approve loan or grant applications subject to the applicant's
100 compliance with certain conditions established by the board.
101 (c) The board shall:
102 (i) ensure that each loan specifies the terms for repayment; and
103 (ii) secure the loans by proceeds from any general obligation, special assessment, or
104 revenue bonds, notes, or other obligations of the appropriate subdivision.
105 Section 4. Section 59-5-116 is amended to read:
106 59-5-116. Disposition of certain taxes collected on Ute Indian land.
107 (1) Except as provided in Subsection (2), there shall be deposited into the Uintah Basin
108 Revitalization Fund established in Section 9-10-102 :
109 (a) for taxes imposed under this part [beginning on July 1, 1996], 33% of the taxes
110 collected on oil, gas, or other hydrocarbon substances produced from a well:
111 (i) for which production began on or before June 30, 1995; and
112 (ii) attributable to interests:
113 (A) held in trust by the United States for the Tribe and its members; or
114 (B) [for taxes imposed under this part beginning on July 1, 1996, and ending on
115 December 31, 2009,] on lands identified in Pub. L. No. 440, 62 Stat. 72 (1948);
116 (b) for taxes imposed under this part [beginning on July 1, 1996], 80% of taxes
117 collected on oil, gas, or other hydrocarbon substances produced from a well:
118 (i) for which production began on or after July 1, 1995; and
119 (ii) attributable to interests:
120 (A) held in trust by the United States for the Tribe and its members; or

121 (B) [for taxes imposed under this part beginning on July 1, 1996, and ending on
122 December 31, 2009,] on lands identified in Pub. L. No. 440, 62 Stat. 72 (1948); and
123 (c) for taxes imposed under this part [beginning on January 1, 2001, and ending on
124 December 31, 2009], 80% of taxes collected on oil, gas, or other hydrocarbon substances
125 produced from a well:
126 (i) for which production began on or after January 1, 2001; and
127 (ii) attributable to interests on lands conveyed to the tribe under the Ute-Moab Land
128 Restoration Act, Pub. L. No. 106-398, Sec. 3303.
129 (2) (a) The maximum amount deposited in the Uintah Basin Revitalization Fund may
130 not exceed:
131 (i) $3,000,000 in [any state] fiscal year[.] 2005-06;
132 (ii) $6,000,000 in fiscal year 2006-07; and
133 (iii) for fiscal years beginning with fiscal year 2007-08, an amount calculated by
134 adding to the amount described in Subsection (2)(a)(ii), $1,000,000 for each fiscal year after
135 the fiscal year 2006-07.
136 (b) Any amounts in excess of the maximum described in Subsection (2)(a) shall be
137 deposited into the General Fund.
138 Section 5. Effective date.
139 This bill takes effect on July 1, 2007.




Legislative Review Note
as of 1-19-07 11:34 AM

Office of Legislative Research and General Counsel