S.B. 36 Enrolled

MINERAL LEASE FUND AMENDMENTS
2003 GENERAL SESSION
STATE OF UTAH
Sponsor: Beverly Ann Evans
This act modifies provisions on Mineral Lease Funds. The act expands the public entities
that may receive monies from the Mineral Lease Account to include public institutions of
higher education.
This act affects sections of Utah Code Annotated 1953 as follows:
AMENDS:
59-21-2, as last amended by Chapter 205, Laws of Utah 2001
Be it enacted by the Legislature of the state of Utah:
Section 1. Section 59-21-2 is amended to read:
59-21-2. Definitions -- Mineral Bonus Account created -- Contents -- Use of
Mineral Bonus Account money -- Mineral Lease Account created -- Contents --
Appropriation of monies from Mineral Lease Account.
(1) As used in this section:
(a) "Acquired lands" is as defined in Section 53C-3-201 .
(b) "Acquired mineral interests" is as defined in Section 53C-3-201 .
(2) (a) The Mineral Bonus Account is created within the General Fund.
(b) The Mineral Bonus Account consists of federal mineral lease bonus payments
deposited pursuant to Subsection 59-21-1 (3).
(c) The Legislature shall make appropriations from the Mineral Bonus Account in
accordance with Section 35 of the Mineral Lands Leasing Act of 1920, 30 U.S.C. Sec. 191.
(d) The state treasurer shall:
(i) invest the money in the Mineral Bonus Account by following the procedures and
requirements of Title 51, Chapter 7, State Money Management Act; and
(ii) deposit all interest or other earnings derived from the account into the Mineral
Bonus Account.
(3) (a) The Mineral Lease Account is created within the General Fund.

(b) The Mineral Lease Account consists of:
(i) federal mineral lease money deposited pursuant to Subsection 59-21-1 (1); and
(ii) rentals and royalties from the lease of the following deposited pursuant to Section
53C-3-202 :
(A) minerals on acquired lands; or
(B) acquired mineral interests.
(c) The Legislature shall make appropriations from the Mineral Lease Account as
provided in Subsection 59-21-1 (1) and this Subsection (3).
(d) The Legislature shall annually appropriate 32.5% of all deposits made to the Mineral
Lease Account to the Permanent Community Impact Fund established by Section 9-4-303 .
(e) The Legislature shall annually appropriate 2.25% of all deposits made to the Mineral
Lease Account to the State Board of Education, to be used for education research and
experimentation in the use of staff and facilities designed to improve the quality of education in
Utah.
(f) The Legislature shall annually appropriate 2.25% of all deposits made to the Mineral
Lease Account to the Utah Geological Survey, to be used for activities carried on by the survey
having as a purpose the development and exploitation of natural resources in the state.
(g) The Legislature shall annually appropriate 2.25% of all deposits made to the Mineral
Lease Account to the Water Research Laboratory at Utah State University, to be used for
activities carried on by the laboratory having as a purpose the development and exploitation of
water resources in the state.
(h) (i) The Legislature shall annually appropriate to the Department of Transportation
40% of all deposits made to the Mineral Lease Account to be distributed as provided in
Subsection (3)(h)(ii) to:
(A) counties;
(B) special service districts established:
(I) by counties;
(II) under Title 17A, Chapter 2, Part 13, Utah Special Service District Act; and

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(III) for the purpose of constructing, repairing, or maintaining roads; or
(C) special service districts established:
(I) by counties;
(II) under Title 17A, Chapter 2, Part 13, Utah Special Service District Act; and
(III) for other purposes authorized by statute.
(ii) The Department of Transportation shall allocate the funds specified in Subsection
(3)(h)(i):
(A) in amounts proportionate to the amount of mineral lease money generated by each
county; and
(B) to a county or special service district established by a county under Title 17A,
Chapter 2, Part 13, Utah Special Service District Act, as determined by the county legislative
body.
(i) (i) The Legislature shall annually appropriate 5% of all deposits made to the Mineral
Lease Account to the Department of Community and Economic Development to be distributed
to:
(A) special service districts established:
(I) by counties;
(II) under Title 17A, Chapter 2, Part 13, Utah Special Service District Act; and
(III) for the purpose of constructing, repairing, or maintaining roads; or
(B) special service districts established:
(I) by counties;
(II) under Title 17A, Chapter 2, Part 13, Utah Special Service District Act; and
(III) for other purposes authorized by statute.
(ii) The Department of Community and Economic Development may distribute the
amounts described in Subsection (3)(i)(i) only to special service districts established under Title
17A, Chapter 2, Part 13, Utah Special Service District Act, by counties:
(A) of the third, fourth, fifth, or sixth class;
(B) in which 4.5% or less of the mineral lease moneys within the state are generated; and

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(C) that are significantly socially or economically impacted as provided in Subsection
(3)(i)(iii) by the development of:
(I) minerals under the Mineral Lands Leasing Act, 30 U.S.C. Sec. 181 et seq.;
(II) minerals on acquired lands; or
(III) acquired mineral interests.
(iii) The significant social or economic impact required under Subsection (3)(i)(ii)(C)
shall be as a result of:
(A) the transportation within the county of hydrocarbons, including solid hydrocarbons
as defined in Section 59-5-101 ;
(B) the employment of persons residing within the county in hydrocarbon extraction,
including the extraction of solid hydrocarbons as defined in Section 59-5-101 ; or
(C) a combination of Subsections (3)(i)(iii)(A) and (B).
(iv) For purposes of distributing the appropriations under this Subsection (3)(i) to special
service districts established by counties under Title 17A, Chapter 2, Part 13, Utah Special Service
District Act, the Department of Community and Economic Development shall:
(A) (I) allocate 50% of the appropriations equally among the counties meeting the
requirements of Subsections (3)(i)(ii) and (iii); and
(II) allocate 50% of the appropriations based on the ratio that the population of each
county meeting the requirements of Subsections (3)(i)(ii) and (iii) bears to the total population of
all of the counties meeting the requirements of Subsections (3)(i)(ii) and (iii); and
(B) after making the allocations described in Subsection (3)(i)(iv)(A), distribute the
allocated revenues to special service districts established by the counties under Title 17A,
Chapter 2, Part 13, Utah Special Service District Act, as determined by the executive director of
the Department of Community and Economic Development after consulting with the county
legislative bodies of the counties meeting the requirements of Subsections (3)(i)(ii) and (iii).
(v) The executive director of the Department of Community and Economic
Development:
(A) shall determine whether a county meets the requirements of Subsections (3)(i)(ii) and

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(iii);
(B) shall distribute the appropriations under Subsection (3)(i)(i) to special service
districts established by counties under Title 17A, Chapter 2, Part 13, Utah Special Service
District Act, that meet the requirements of Subsections (3)(i)(ii) and (iii); and
(C) in accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, may
make rules:
(I) providing a procedure for making the distributions under this Subsection (3)(i) to
special service districts; and
(II) defining the term "population" for purposes of Subsection (3)(i)(iv).
(j) (i) The Legislature shall annually make the following appropriations from the Mineral
Lease Account:
(A) an amount equal to 52 cents multiplied by the number of acres of school or
institutional trust lands, lands owned by the Division of Parks and Recreation, and lands owned
by the Division of Wildlife Resources that are not under an in lieu of taxes contract, to each
county in which those lands are located;
(B) to each county in which school or institutional trust lands are transferred to the
federal government after December 31, 1992, an amount equal to the number of transferred acres
in the county multiplied by a payment per acre equal to the difference between 52 cents per acre
and the per acre payment made to that county in the most recent payment under the federal
payment in lieu of taxes program, 31 U.S.C. Sec. 6901 et seq., unless the federal payment was
equal to or exceeded the 52 cents per acre, in which case a payment under this Subsection
(3)(j)(i)(B) may not be made for the transferred lands;
(C) to each county in which federal lands, which are entitlement lands under the federal
in lieu of taxes program, are transferred to the school or institutional trust, an amount equal to the
number of transferred acres in the county multiplied by a payment per acre equal to the difference
between the most recent per acre payment made under the federal payment in lieu of taxes
program and 52 cents per acre, unless the federal payment was equal to or less than 52 cents per
acre, in which case a payment under this Subsection (3)(j)(i)(C) may not be made for the

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transferred land; and
(D) to a county of the fifth or sixth class, an amount equal to the product of:
(I) $1,000; and
(II) the number of residences described in Subsection (3)(j)(iv) that are located within
the county.
(ii) A county receiving money under Subsection (3)(j)(i) may, as determined by the
county legislative body, distribute the money or a portion of the money to:
(A) special service districts established by the county under Title 17A, Chapter 2, Part
13, Utah Special Service District Act; [or]
(B) school districts[.]; or
(C) public institutions of higher education.
(iii) (A) Beginning in fiscal year 1994-95 and in each year after fiscal year 1994-95, the
Division of Finance shall increase or decrease the amounts per acre provided for in Subsections
(3)(j)(i)(A) through (C) by the average annual change in the Consumer Price Index for all urban
consumers published by the Department of Labor.
(B) For fiscal years beginning on or after fiscal year 2001-02, the Division of Finance
shall increase or decrease the amount described in Subsection (3)(j)(i)(D)(I) by the average
annual change in the Consumer Price Index for all urban consumers published by the Department
of Labor.
(iv) Residences for purposes of Subsection (3)(j)(i)(D)(II) are residences that are:
(A) owned by:
(I) the Division of Parks and Recreation; or
(II) the Division of Wildlife Resources;
(B) located on lands that are owned by:
(I) the Division of Parks and Recreation; or
(II) the Division of Wildlife Resources; and
(C) are not subject to taxation under:
(I) Chapter 2, Property Tax Act; or

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(II) Chapter 4, Privilege Tax.
(k) The Legislature shall annually appropriate to the Permanent Community Impact Fund
all deposits remaining in the Mineral Lease Account after making the appropriations provided for
in Subsections (3)(d) through (j).
(4) (a) Each agency, board, institution of higher education, and political subdivision
receiving money under this chapter shall provide the Legislature, through the Office of the
Legislative Fiscal Analyst, with a complete accounting of the use of that money on an annual
basis.
(b) The accounting required under Subsection (4)(a) shall:
(i) include actual expenditures for the prior fiscal year, budgeted expenditures for the
current fiscal year, and planned expenditures for the following fiscal year; and
(ii) be reviewed by the Economic Development and Human Resources Appropriation
Subcommittee as part of its normal budgetary process under Title 63, Chapter 38, Budgetary
Procedures Act.

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