H.B. 108

1

MINERAL LEASE ACCOUNT AMENDMENTS
2 1997 GENERAL SESSION
3 STATE OF UTAH
4 Sponsor: Jack A. Seitz
5 AN ACT RELATING TO REVENUE AND TAXATION; REDISTRIBUTING A PORTION OF
6 MINERAL LEASE ACCOUNT MONIES FROM THE BOARD OF REGENTS TO THE
7 PERMANENT COMMUNITY IMPACT FUND AND THE DEPARTMENT OF
8 TRANSPORTATION; MAKING TECHNICAL CHANGES; AND PROVIDING AN
9 EFFECTIVE DATE.
10 This act affects sections of Utah Code Annotated 1953 as follows:
11 AMENDS:
12 59-21-2, as last amended by Chapter 36, Laws of Utah 1996
13 Be it enacted by the Legislature of the state of Utah:
14 Section 1. Section 59-21-2 is amended to read:
15 59-21-2. Mineral Bonus Account -- Allocation of monies from Mineral Lease
16 Account.
17 (1) (a) The Mineral Bonus Account is created within the General Fund.
18 (b) All bonus money received by the state under Subsection 59-21-1(3) shall be deposited
19 in this account.
20 (c) The Legislature shall appropriate from the Mineral Bonus Account in accordance with
21 Section 35 of the Mineral Leasing Act of 1920, 30 U.S.C. Sec. 191.
22 (d) The state treasurer shall:
23 (i) invest the money in the Mineral Bonus Account by following the procedures and
24 requirements of Title 51, Chapter 7, State Money Management Act; and
25 (ii) deposit all interest or other earnings derived from the account into the Mineral Bonus
26 Account.
27 (2) The Legislature shall [appropriate,] make appropriations from the Mineral Lease

1 Account[:] as provided in this Subsection (2).
2 (a) In addition to the appropriation under Subsection (2)(b)(ii), the Legislature shall
3 appropriate 32.5% of all deposits made to the Mineral Lease Account to the Permanent
4 Community Impact Fund established by Section 9-4-303[;].
5 (b) (i) [except] Except as provided in Subsection (2)(b)(ii), the Legislature shall
6 appropriate 33.5% of all deposits made to the Mineral Lease Account to the Board of Regents for
7 allocation to the state's institutions of higher education[;].
8 (ii) [in] (A) For fiscal year 1996-97, the Legislature shall appropriate 20% of the mineral
9 lease funds that would otherwise be appropriated to the Board of Regents under Subsection
10 (2)(b)(i) [shall be appropriated] to the Permanent Community Impact Fund [and an].
11 (B) An equivalent amount shall be appropriated from the General Fund to the Board of
12 Regents to replace the mineral lease monies that the Board of Regents would have otherwise
13 received under Subsection (2)(b)(i). [An]
14 (C) Beginning on July 1, 1997, the Legislature shall annually appropriate as follows an
15 additional 20% of the funds that would otherwise be appropriated to the Board of Regents under
16 Subsection (2)(b)(i) [shall be appropriated to] until the Legislature appropriates 100% of the funds
17 that would otherwise be appropriated to the Board of Regents:
18 (I) the Legislature shall make an appropriation to the Department of Transportation as
19 provided in Subsection (2)(f)(ii); and
20 (II) the Legislature shall, after making the appropriation to the Department of
21 Transportation under Subsection (2)(b)(ii)(B)(I), appropriate the remainder of the funds h THAT
21a WOULD OTHERWISE BE APPROPRIATED TO THE BOARD OF REGENTS h to the
22 Permanent Community Impact Fund [in each succeeding fiscal year until 100% of the funds
23 currently appropriated to the Board of Regents under Subsection (2)(b)(i) are appropriated to the
24 Permanent Community Impact Fund]. [An]
25 (D) The Legislature shall appropriate an equivalent amount [shall be appropriated] from
26 the General Fund to the Board of Regents each of the succeeding fiscal years to replace the mineral
27 lease monies the Board of Regents would have otherwise received.
28 (c) The Legislature shall appropriate 2.25% of all deposits made to the Mineral Lease
29 Account to the State Board of Education, to be used for education research and experimentation
30 in the use of staff and facilities designed to improve the quality of education in Utah[;].
31 (d) The Legislature shall appropriate 2.25% of all deposits made to the Mineral Lease

lilac-February 28, 1997

- 2 -

1 Account to the Utah Geological Survey, to be used for activities carried on by the survey having
2 as a purpose the development and exploitation of natural resources in the state[;].
3 (e) The Legislature shall appropriate 2.25% of all deposits made to the Mineral Lease
4 Account to the Water Research Laboratory at Utah State University, to be used for activities
5 carried on by the laboratory having as a purpose the development and exploitation of water
6 resources in the state[;].
7 (f) [25%] The Legislature shall appropriate the following percentages of all deposits made
8 to the Mineral Lease Account to the Department of Transportation, to be distributed to special
9 service districts established by counties for the purpose of constructing, repairing, and maintaining
10 roads or other purposes authorized by law[; and]:
11 (i) the Legislature shall annually appropriate to the Department of Transportation 25% of
12 all deposits made to the Mineral Lease Account; and
13 (ii) in addition to the appropriation under Subsection (2)(f)(i), the Legislature shall make
14 the following appropriations from mineral lease funds that would otherwise be appropriated to the
15 Board of Regents under Subsection (2)(b)(i):
16 (A) beginning on July 1, 1997 through June 30, 1998, the Legislature shall appropriate to
17 the Department of Transportation 5% of all deposits made to the Mineral Lease Account;
18 (B) beginning on July 1, 1998 through July 30, 1999, the Legislature shall appropriate to
19 the Department of Transportation 10% of all deposits made to the Mineral Lease Account; and
20 (C) beginning on July 1, 1999, the Legislature shall appropriate to the Department of
21 Transportation 15% of all deposits made to the Mineral Lease Account.
22 (g) The Legislature shall appropriate to the extent available after the allocations provided
23 in Subsections (2)(a) through (2)(f) are made:
24 (i) an amount equal to 52 cents multiplied by the number of acres of school or institutional
25 trust lands, lands owned by the Division of Parks and Recreation, [or] and lands owned by the
26 Division of Wildlife Resources that are not under an in lieu of taxes contract, to each county in
27 which those lands are located;
28 (ii) to each county in which school or institutional trust lands are transferred to the federal
29 government after December 31, 1992, an amount equal to the number of transferred acres in the
30 county multiplied by a payment per acre equal to the difference between 52 cents per acre and the
31 per acre payment made to that county in the most recent payment under the federal payment in lieu

- 3 -

1 of taxes program, 31 U.S.C. Sec. 6901 or P.L. 97-258 as amended, unless the federal payment
2 was equal to or exceeded the 52 cents per acre, in which case no payment shall be made for the
3 transferred lands; and
4 (iii) to each county in which federal lands, which are entitlement lands under the federal
5 in lieu of taxes program, are transferred to the school or institutional trust, an amount equal to the
6 number of transferred acres in the county multiplied by a payment per acre equal to the difference
7 between the most recent per acre payment made under the federal payment in lieu of taxes program
8 and 52 cents per acre, unless the federal payment was equal to or less than 52 cents per acre, in
9 which case no payment shall be made for the transferred land.
10 (3) (a) Until July 1, 1999, the Board of Regents may not:
11 (i) increase the total amount of federal mineral lease funds allocated during any fiscal year
12 above the amount allocated during the last fiscal year more than the percentage increase in the
13 Consumer Price Index published by the United States Department of Labor for the last calendar
14 year; and
15 (ii) increase the total amount allocated more than 10% above the amount allocated during
16 the last fiscal year.
17 (b) If the total amount of mineral lease funds allocated to a recipient agency or institution
18 in any fiscal year is less than the total amount allocated for the last fiscal year, the allocation to that
19 agency or institution for the next fiscal year shall be increased by the amount of the reduction
20 before calculating and applying the percent limitation.
21 (c) (i) Higher education institutions shall expend the federal mineral lease funds
22 apportioned to them via institutional work programs.
23 (ii) The Board of Regents may approve those programs only when it is satisfied that a
24 majority of the funds will be expended for research, educational, or public service programs of
25 benefit to subdivisions of the state that are socially or economically impacted by the development
26 of minerals leased under the Mineral Lands Leasing Act in the planning, construction, and
27 maintenance of public facilities, and the provision of public services.
28 (d) (i) Except as provided in Subsection (3)(d)(ii), each institution of higher education is
29 entitled to an amount of mineral lease funds equal to the proportion of the total amount available
30 that the average number of full-time students enrolled during the preceding year at that institution
31 bears to the total enrollment of all institutions.

- 4 -

1 (ii) Enrollment at the University of Utah and Utah State University shall first be multiplied
2 by 1.25 and that product shall constitute the enrollment of the University of Utah and Utah State
3 University for the purposes of determining their proportionate allocation.
4 (4) The federal mineral lease funds allocated to the Water Research Laboratory at Utah
5 State University are in addition to any other money to which Utah State University is entitled
6 under this section.
7 (5) Federal mineral lease funds distributed by the Department of Transportation under
8 Subsection (2)(f) shall be allocated to county special service districts in amounts proportionate to
9 the amount of federal mineral lease money generated by the county in which a special service
10 district is located.
11 (6) (a) Each county receiving money under Subsection (2)(g) shall give the money to a
12 school district or other special purpose governmental entity within the county.
13 (b) Beginning in fiscal year 1994-95 and in each year thereafter, the amount per acre
14 provided in Subsection (2)(g)(i) shall adjust to reflect changes in the rate of inflation as measured
15 by the Consumer Price Index.
16 (7) Each agency, board, institution of higher education, and political subdivision receiving
17 money under this chapter shall provide the Legislature, through the Office of the Legislative Fiscal
18 Analyst, with a complete accounting of the use of that money on an annual basis. This accounting
19 shall:
20 (a) include actual expenditures for the prior fiscal year, budgeted expenditures for the
21 current fiscal year, and planned expenditures for the following fiscal year; and
22 (b) be reviewed by the Economic Development and Human Resources Appropriation
23 Subcommittee as part of its normal budgetary process under Title 63, Chapter 38, Budgetary
24 Procedures Act.
25 (8) All monies in or appropriated to the Targeted Allocation Fund shall be transferred to
26 the Permanent Community Impact Fund.
27 Section 2. Effective date.
28 This act takes effect on July 1, 1997.


- 5 -

Legislative Review Note
as of 2-14-97 2:08 PM

A limited legal review of this bill raises no obvious constitutional or statutory concerns.

Office of Legislative Research and General Counsel

- 6 -