S.B. 77

1

SCHOOL AND INSTITUTIONAL TRUST
2 LANDS AMENDMENTS
3 1997 GENERAL SESSION
4 STATE OF UTAH
5 Sponsor: David H. Steele
6 Scott N. Howell
Joseph L. Hull
Howard A. Stephenson

7 AN ACT RELATING TO SCHOOL AND INSTITUTIONAL TRUST LANDS; PROVIDING
8 TECHNICAL CHANGES TO PROCEDURES FOR AGENCY ADJUDICATIONS;
9 PROVIDING FOR REGISTRATION OF PREEXISTING FEDERAL MINING CLAIMS
10 ENCUMBERING TRUST LANDS; ALLOWING THE DIRECTOR OF SCHOOL AND
11 INSTITUTIONAL TRUST LANDS TO REWARD COUNTY GOVERNMENTS FOR
12 ASSISTANCE IN APPREHENDING AND PROSECUTING TRESPASSERS ON TRUST
13 LANDS; AND CONVERTING THE LAND GRANT MANAGEMENT FUND INTO AN
14 ENTERPRISE FUND.
15 This act affects sections of Utah Code Annotated 1953 as follows:
16 AMENDS:
17 53C-1-304, as last amended by Chapter 299, Laws of Utah 1995
18 53C-2-301, as enacted by Chapter 294, Laws of Utah 1994
19 53C-2-409, as enacted by Chapter 294, Laws of Utah 1994
20 53C-3-101, as last amended by Chapter 299, Laws of Utah 1995
21 ENACTS:
22 53C-2-104, Utah Code Annotated 1953
23 Be it enacted by the Legislature of the state of Utah:
24 Section 1. Section 53C-1-304 is amended to read:
25 53C-1-304. Rules to ensure procedural due process -- Board review of director action
26 -- Judicial review.

1 (1) The board shall make rules to ensure procedural due process in the resolution of
2 complaints concerning actions by the board, director, and the administration.
3 [(2) The director, the administration, and the board shall take final action on the basis of
4 findings supported by a record.]
5 [(3) Upon the petition of an]
6 (2) An aggrieved party to a final action by the director or the administration[, the board
7 shall review the action on the record] may petition the board for administrative review of the
8 decision.
9 [(4)] (3) (a) The board may appoint a qualified hearing examiner for purposes of taking
10 evidence and making recommendations for board action.
11 (b) The board shall consider the recommendations of the examiner in making decisions.
12 [(5)] (4) (a) The board shall uphold the decision of the director or the administration unless
13 it finds, by a preponderance of the evidence, that the decision violated applicable law, policy, or
14 rules.
15 (b) The board shall base its final actions on findings and conclusions and shall inform the
16 aggrieved party of its right to judicial review.
17 [(6)] (5) An aggrieved party to a final action by the board may obtain judicial review of
18 that action under Sections 63-46b-15 and 63-46b-16.
19 Section 2. Section 53C-2-104 is enacted to read:
20 53C-2-104. Preexisting federal mining claims on trust lands -- Filing of notice --
21 Conclusive evidence of abandonment.
22 (1) The Legislature recognizes the importance of having an effective state filing system
23 for unpatented federal mining claims located on trust lands prior to the state's acquisition of title
24 that would allow the state to determine the extent of preexisting unpatented mining claims on those
25 lands and eliminate the cloud on the state's title created by abandoned unpatented mining claims,
26 while preserving the rights of owners of valid preexisting unpatented mining claims located on
27 those lands.
28 (2) Prior to January 1, 1998, and annually thereafter on or before December 31, each
29 owner of an unpatented lode mining claim, placer mining claim, mill site claim, or tunnel site
30 claim located pursuant to the general mining laws of the United States on lands now owned of
31 record by the state in trust for the common schools or other beneficiary institutions shall file with

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1 the administration a notice as prescribed by Subsection (3).
2 (3) The notice required by Subsection (2) shall include:
3 (a) a statement of the owner's intention to hold or abandon the claim;
4 (b) a brief description of the type and nature of the claim;
5 (c) the date the claim was located, and the date the claim was filed of record in county and
6 federal records;
7 (d) a copy of the official record of the notice of location or certificate of location of the
8 claim; and
9 (e) a legal description of the claim, by legal subdivision or metes and bounds description,
10 sufficient to locate the claimed lands on the ground.
11 (4) (a) The administration shall note the existence of all claims for which notices have
12 been filed in the central index of all trust lands required under Section 53C-2-101.
13 (b) The administration may impose a reasonable filing fee as a condition for accepting the
14 required notices, not to exceed $50 per claim, to defray the administrative costs of maintaining an
15 index of claims.
16 (5) (a) Failure to file the notice required by this section constitutes an abandonment of the
17 claim by the owner.
18 (b) Filing of the required notice by one owner of a claim in which multiple persons own
19 or claim interests fulfills the filing requirements of this section.
20 (6) Filing of a notice under this section does not make valid a claim which is otherwise
21 invalid under other applicable law.
22 (7) Acquisition of rights to extract minerals underlying trust lands is governed by Part 4
23 of this chapter.
24 (8) This section does not waive any fees, filings, or other requirements imposed by federal
25 law.
26 Section 3. Section 53C-2-301 is amended to read:
27 53C-2-301. Trespassing on trust lands -- Penalties.
28 (1) A person is liable for the civil damages prescribed in Subsection (2) and, unless a
29 greater penalty is prescribed in another part of the law, is guilty of a class B misdemeanor if [he]
30 the person, without written authorization from the director:
31 (a) removes, extracts, uses, consumes, or destroys any mineral resource, gravel, sand, soil,

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1 vegetation, or improvement on trust lands;
2 (b) grazes livestock on trust lands;
3 (c) uses, occupies, or constructs improvements or structures on trust lands;
4 (d) uses or occupies trust lands for more than 30 days after the cancellation or expiration
5 of written authorization;
6 (e) knowingly and willfully uses trust lands for commercial gain;
7 (f) appropriates, alters, injures, or destroys any improvement or any historical,
8 prehistorical, archaeological, or paleontological resource on trust lands;
9 (g) trespasses upon, uses, or occupies trust land;
10 (h) interferes with the activities of an employee or agent of the administration on trust
11 lands; or
12 (i) interferes with activities of a lessee or other person which have been authorized by the
13 administration.
14 (2) A person who commits any act described in Subsection (1) is liable for damages in the
15 amount of:
16 (a) three times the value of the mineral or other resource removed, destroyed, or extracted;
17 (b) three times the amount of damage committed;
18 (c) three times the value of any losses suffered as a result of interference with authorized
19 activities; or
20 (d) three times the consideration which would have been charged by the director for use
21 of the land during the period of trespass, whichever is greater.
22 (3) In addition to the damages described in Subsection (2), a person found guilty of a
23 criminal act under Subsection (1) is subject to the penalties provided in Title 76, Chapter 3,
24 Punishments.
25 (4) [Money] The director shall deposit money collected under this section [shall be
26 deposited] in the fund in which like revenues from that land would be deposited.
27 (5) The director may award a portion of any of the damages collected under this section
28 in excess of actual damages to the general fund of the county in which the trespass occurred as a
29 reward for county assistance in the apprehension and prosecution of the trespassing party.
30 Section 4. Section 53C-2-409 is amended to read:
31 53C-2-409. Mineral leases -- Cancellation -- Use of surface land -- Liability for

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1 damage.
2 (1) Upon violation by the lessee of any lawful provision in a mineral lease, the director
3 may, without further notice or appeal, cancel the lease after 30 days notice by registered or
4 certified return receipt mail, unless the lessee remedies the violation, rectifies the condition, or
5 requests a hearing pursuant to Section 53C-1-304 within the 30 days or within any extension of
6 time the director grants.
7 (2) (a) A mineral lessee, subject to conditions required by the director, has the right at all
8 times to enter upon the leasehold for prospecting, exploring, developing, and producing minerals
9 and shall have reasonable use of the surface.
10 (b) The lessee may not injure, damage, or destroy the improvements of the surface owner
11 or lessee.
12 (c) The lessee is liable to the surface owner or lessee for all damage to the surface of the
13 land and improvements, except for reasonable use.
14 (3) Any mineral lessee may occupy as much of the surface of the leased land as may be
15 required for all purposes reasonably incident to the exercise of lessee's rights under the lease by:
16 (a) securing the written consent or waiver of the surface owner or lessee;
17 (b) payment for the damage to the surface of the land and improvements to the surface
18 owner or lessee where there is agreement as to the amount of the damage; or
19 (c) upon the execution of a good and sufficient bond to the director for the use and benefit
20 of the surface owner or lessee of the land to secure the payment of damages as may be determined
21 and fixed by agreement or in an action brought upon the bond or undertaking in a court of
22 competent jurisdiction against the principal and sureties of the bond. The bond shall be in a form
23 and amount as prescribed by the director and shall be filed with the administration.
24 Section 5. Section 53C-3-101 is amended to read:
25 53C-3-101. Land Grant Management Fund -- Contents -- Use of monies.
26 (1) (a) There is created an [expendable] enterprise trust fund known as the Land Grant
27 Management Fund.
28 (b) This fund shall consist of:
29 (i) all revenues derived from trust lands except revenues from the sale of those lands;
30 (ii) all interest earned by the fund; and
31 (iii) all revenues obtained from other activities of the director or administration.

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1 (2) The director may expend monies from the Land Grant Management Fund in
2 accordance with the approved budget for the support of director and administration activities.
3 (3) Any amount in excess of that required to fund the budget shall be distributed to the
4 various trust beneficiaries as of June 30 of each calendar year, and at other times determined by
5 the director, in shares equal to the portion of total Land Grant Management Fund revenues
6 obtained from each beneficiary's land during the accounting period.
7 (4) Money from the lease or rental of school trust lands or from the use, sale, or lease of
8 resources on school trust lands, all sums paid for fees, including grazing fees, and all forfeitures
9 or penalties received in connection with those transactions shall be deposited in the Permanent
10 State School Fund.
11 (5) Money from the lease or rental of lands acquired by the state for the benefit of an
12 institution named in Sections 7, 8, and 12 of the Utah Enabling Act, or from the use, sale, or lease
13 of renewable or nonrenewable resources on those lands, and all forfeitures or penalties received
14 in connection with those transactions, shall be distributed to the institution.
15 (6) Any remaining monies, including interest earned on the account, shall be distributed
16 in pro rata shares to the various beneficiaries.




Legislative Review Note
as of 11-20-96 3:36 PM

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

Office of Legislative Research and General Counsel

Committee Note

The Education Interim Committee recommended this bill.

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