S.B. 66 Enrolled

REVENUES FROM FEDERAL LAND EXCHANGE
PARCELS
2002 GENERAL SESSION
STATE OF UTAH
Sponsor: Mike Dmitrich
This act modifies provisions related to revenues from federal land exchange parcels. The act
modifies the percentage of revenues distributed to certain accounts and funds from rentals
and royalties received from the lease of minerals on acquired lands and the lease of acquired
mineral interests. The act lowers the ceiling on the amount of monies collected that can be
used to pay for administrative costs.
This act affects sections of Utah Code Annotated 1953 as follows:
AMENDS:
53C-3-202, as last amended by Chapter 299, Laws of Utah 2000
Be it enacted by the Legislature of the state of Utah:
Section 1. Section 53C-3-202 is amended to read:
53C-3-202. Collection and distribution of revenues from federal land exchange
parcels.
(1) The director is responsible for the collection of all bonus payments, rentals, and
royalties from the lease of:
(a) minerals on acquired lands; and
(b) acquired mineral interests.
(2) The director shall:
(a) except as provided in Subsections (3) and (4), no later than the last day of the second
month following each calendar quarter, distribute all bonus payments received during the calendar
quarter from the lease of coal, oil and gas, and coalbed methane on the identified tracts as follows:
(i) 50% to the United States;
(ii) 12.16% to the Permanent Community Impact Fund created in Section 9-4-303 ;
(iii) 20% to the Constitutional Defense Restricted Account created in Section 63C-4-103 ;
[(iv) (A) beginning on July 1, 2000, through June 30, 2001, 15% to the Mineral Bonus

Account created by Section 59-21-2 ; and]
[(B)] (iv) [beginning on July 1, 2001,] 15% to the Rural Electronic Commerce
Communications System Fund created by Section 9-15-102 ; and
(v) 2.84% to the Rural Development Fund created under Section 9-14-102 ; and
(b) except as provided in Subsections (3) and (4), no later than the last day of the second
month following each calendar quarter, distribute all rentals and royalties received during the
calendar quarter from the lease of subject minerals on the acquired lands and the lease of acquired
mineral interests as follows:
(i) 50% to the Land Grant Management Fund created by Section 53C-3-101 ;
(ii) [29.66%] 39.5% to the Mineral Lease Account created by Subsection 59-21-2 (3);
(iii) [10%] 4.5% to the Constitutional Defense Restricted Account created by Section
63C-4-103 ;
(iv) [7.5%] 3.0% to the Rural Electronic Commerce Communications System Fund created
by Section 9-15-102 ; and
(v) [2.84%] 3.0% to the Rural Development Fund created by Section 9-14-102 .
(3) Notwithstanding Subsections (2)(a), (2)(b), and (4), if the distribution required by
Subsection (2)(a)(iii), (2)(b)(iii), or (4) would cause the balance of the Constitutional Defense
Restricted Account to exceed $2,000,000, the director shall distribute to the Permanent Community
Impact Fund an amount equal to the difference between:
(a) what the total balance of the Constitutional Defense Restricted Account would be if, but
for this Subsection (3), a distribution described in Subsection (2)(a)(iii), (2)(b)(iii), or (4) was made;
and
(b) $2,000,000.
(4) Notwithstanding Subsections (2)(a) and (b), and except as provided in Subsection (3),
for [fiscal years beginning on or after] each fiscal year [2000-01] the director shall deposit:
(a) the first $750,000 of distributions required by Subsections (2)(a)(iv) and (2)(b)(iv) into
the Rural Electronic Commerce Communications System Fund; and
(b) any amounts exceeding the $750,000 described in Subsection (4)(a) that would be

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distributed into the Rural Electronic Commerce Communications System Fund but for this
Subsection (4) into the Constitutional Defense Restricted Account.
(5) (a) The director may retain up to [8%] 3% of the monies collected under Subsection (1)
to pay for administrative costs incurred under Subsection (1).
(b) The administrative costs may be deducted prior to the distributions made under
Subsections (2)(a) and (b).
(c) The director shall keep the administrative cost deductions in separate accounts.
(d) (i) For purposes of this section, administrative costs:
(A) include:
(I) direct costs incurred by the administration; and
(II) out-of-pocket expenditures incurred by the administration that are directly attributable
to leasing or management of the acquired lands for subject minerals or acquired mineral interests;
and
(B) shall be determined in a manner similar to that used by the federal government pursuant
to 30 U.S.C. Sec.191(b).
(ii) If the administration includes out-of-pocket expenditures under Subsection (5)(d)(i) in
determining its costs, those expenditures may not be included in its general calculation of direct
costs.
(e) (i) At the end of each fiscal year, the director shall reconcile the amount actually spent
under Subsection (5)(d) with the amount retained under Subsection (5)(a).
[(ii) The director shall distribute any excess from the reconciliation pursuant to Subsections
(2) through (4).]
[(iii) The director may retain an amount sufficient to cover the expected administrative costs
allowed under Subsection (5)(d) for the subsequent fiscal year, less the expected deduction for the
subsequent fiscal year under Subsection (5)(a).]
(ii) The monies retained under Subsection (5)(a) are nonlapsing.

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