H.B. 214 Enrolled

SCHOOL AND INSTITUTIONAL TRUST
LANDS - CLARIFYING REFERENCES TO
RULES AND POLICIES
2004 GENERAL SESSION
STATE OF UTAH
Sponsor: James R. Gowans

LONG TITLE
General Description:
This bill clarifies the School and Institutional Trust Lands Administration's authority to
make administrative rules.
Highlighted Provisions:
This bill:
. clarifies that the term "rule" or its derivations shall be used to describe actions taken
by the School and Institutional Trust Lands Administration that meet the
requirements for rulemaking.
Monies Appropriated in this Bill:
None
Other Special Clauses:
None
Utah Code Sections Affected:
AMENDS:
53C-1-201, as last amended by Chapter 192, Laws of Utah 2003
53C-1-303, as last amended by Chapter 126, Laws of Utah 1997
53C-2-201, as last amended by Chapter 299, Laws of Utah 1995

Be it enacted by the Legislature of the state of Utah:
Section 1. Section 53C-1-201 is amended to read:
53C-1-201. Creation of administration -- Purpose -- Director.

(1) (a) There is established within state government the School and Institutional Trust
Lands Administration.
(b) The administration shall manage all school and institutional trust lands and assets
within the state, except as otherwise provided in Title 53C, Chapter 3 [of this title], Deposit and
Allocation of Revenue from Trust Lands, and Section 51-7-12 .
(2) The administration is an independent state agency and not a division of any other
department.
(3) (a) It is subject to the usual legislative and executive department controls except as
follows:
(i) (A) the director may make rules as approved by the board that allow the administration
to classify a business proposal submitted to the administration as protected under Section
63-2-304 , for as long as is necessary to evaluate the proposals;
(B) the administration shall return the proposal to the party who submitted the proposal,
and incur no further duties under Title 63, Chapter 2, Government Records Access and
Management Act, if the administration determines not to proceed with the proposal;
(C) the administration shall classify the proposal pursuant to law if it decides to proceed
with the proposal; and
(D) Section 63-2-403 does not apply during the review period;
(ii) the director shall make rules in compliance with Title 63, Chapter 46a, Utah
Administrative Rulemaking Act, except that the director, with the board's approval, may establish
a procedure for the expedited approval of rules, based on written findings by the director
showing:
(A) the changes in business opportunities affecting the assets of the trust;
(B) the specific business opportunity arising out of those changes which may be lost
without the rule or changes to the rule;
(C) the reasons the normal procedures under Section 63-46a-4 cannot be met without
causing the loss of the specific opportunity;
(D) approval by at least five board members; and

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(E) that the director has filed a copy of the rule and a rule analysis, stating the specific
reasons and justifications for its findings, with the Division of Administrative Rules and notified
interested parties as provided in Subsection 63-46a-4 (7); and
(iii) the administration shall comply with Title 67, Chapter 19, Utah State Personnel
Management Act, except as follows:
(A) the board may approve, upon recommendation of the director, that exemption for
specific positions under Subsections 67-19-12 (2) and 67-19-15 (1) is required in order to enable
the administration to efficiently fulfill its responsibilities under the law. The director shall consult
with the director of the Department of Human Resource Management prior to making such a
recommendation. The positions of director, deputy director, assistant director, legal counsel
appointed under Subsection 53C-1-305 (2), administrative assistant, and public affairs officer are
exempt under Subsections 67-19-12 (2) and 67-19-15 (1);
(B) salary for exempted positions, except for the director, shall be set by the director,
after consultation with the director of the Department of Human Resource Management, within
ranges approved by the board. The board and director shall consider salaries for similar positions
in private enterprise and other public employment when setting salary ranges; and
(C) the board may create an annual incentive and bonus plan for the director and other
administration employees designated by the board, based upon the attainment of financial
performance goals and other measurable criteria defined and budgeted in advance by the board;
and
(iv) the administration shall comply with Title 63, Chapter 56, Utah Procurement Code,
except where the board approves, upon recommendation of the director, exemption from the Utah
Procurement Code, and simultaneous adoption of [policies] rules under Title 63, Chapter 46a,
Utah Administrative Rulemaking Act, for procurement, which enable the administration to
efficiently fulfill its responsibilities under the law.
(b) (i) The board and director shall review the exceptions under Subsection (3)(a) and
make recommendations for any modification, if required, which the Legislature would be asked to
consider during its annual general session.

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(ii) The board and director may include in their recommendations any other proposed
exceptions from the usual executive and legislative controls the board and director consider
necessary to accomplish the purpose of this title.
(4) The administration is managed by a director of school and institutional trust lands
appointed by a majority vote of the board of trustees with the consent of the governor.
(5) (a) The board of trustees shall provide policies for the management of the
administration and for the management of trust lands and assets.
(b) The board shall provide policies for the ownership and control of Native American
remains that are discovered or excavated on school and institutional trust lands in consultation
with the Division of Indian Affairs and giving due consideration to Title 9, Chapter 9, Part 4,
Native American Grave Protection and Repatriation Act. The director may make rules in
accordance with Title 63, Chapter 46a, Administrative Rulemaking Act, to implement policies
provided by the board regarding Native American remains.
(6) In connection with joint ventures for the development of trust lands and minerals
approved by the board under Subsections 53C-1-303 (4)[(c)](e) and 53C-2-401 (1)(d), the
administration may become a member of a limited liability company under Title 48, Chapter 2c,
Utah Revised Limited Liability Company Act, and is considered a person under Section
48-2c-102 for such purposes.
Section 2. Section 53C-1-303 is amended to read:
53C-1-303. Responsibilities of director -- Budget review -- Legal counsel --
Contract for services.
(1) In carrying out the policies of the board of trustees and in establishing procedures and
rules the director shall:
(a) take an oath of office before assuming any duties as the director;
(b) adopt procedures and rules necessary for the proper administration of matters
entrusted to the director by state law and board policy;
(c) submit to the board for its review and concurrence on any rules necessary for the
proper management of matters entrusted to the administration;

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(d) faithfully manage the administration under the policies established by the board;
(e) submit to the board and for public inspection by October 1 of each year, an annual
management budget and financial plan for operations of the administration and, after approval by
the board, submit the budget to the governor;
(f) direct and control the budget expenditures as finally authorized and appropriated;
(g) establish job descriptions and employ, within the limitation of the budget, staff
necessary to accomplish the purposes of the office subject to Section 53C-1-201 ;
(h) establish, in accordance with generally accepted principles of fund accounting, a
system to identify and account for the assets and vested interests of each beneficiary;
(i) maintain appropriate records of trust activities to enable auditors appointed by
appropriate state agencies or the board to conduct periodic audits of trust activities;
(j) provide that all leases, contracts, and agreements be submitted to legal counsel for
review of compliance with applicable law and fiduciary duties prior to execution and utilize the
services of the attorney general as provided in Section 53C-1-305 ;
(k) keep the board, beneficiaries, governor, Legislature, and the public informed about the
work of the director and administration by reporting to the board in a public meeting at least once
during each calendar quarter; and
(l) respond in writing within a reasonable time to a request by the board for responses to
questions on policies and practices affecting the management of the trust.
(2) Procedures and rules adopted by the Division of State Lands and Forestry as they
relate to trust lands prior to the effective date of this act remain in effect until amended or
repealed by the director.
(3) The administration shall be the named party in substitution of the Division of State
Lands and Forestry or its predecessor agencies, with respect to all documents affecting trust lands
from the effective date of this act.
(4) The director may:
(a) with the consent of the state risk manager and the board, manage lands or interests in
lands held by any other public or private party pursuant to policies established by the board and

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may make rules to implement these board policies;
(b) sue or be sued as the director of school and institutional trust lands;
(c) contract with other public agencies for personnel management services;
(d) contract with any public or private entity to make improvements to or upon trust
lands and to carry out any of the responsibilities of the office, so long as the contract requires
strict adherence to trust management principles, applicable law and regulation, and is subject to
immediate suspension or termination for cause; and
(e) with the approval of the board enter into joint ventures and other business
arrangements consistent with the purposes of the trust.
(5) Any application or bid required for the lease, permitting, or sale of lands in a
competitive process or any request for review pursuant to Section 53C-1-304 shall be considered
filed or made on the date received by the appropriate administrative office, whether transmitted by
United States mail or in any other manner.
Section 3. Section 53C-2-201 is amended to read:
53C-2-201. Planning procedures -- Assistance from other state agencies -- Plans
consistent with trust responsibilities.
(1) The director:
(a) shall develop rules describing the degree of planning necessary for each category of
activity on trust lands; and
(b) may request other state agencies to generate technical data or other support services
for the development and implementation of trust lands plans.
(2) The plans for school and institutional trust lands shall be:
(a) developed in a manner consistent with the director's responsibility to insure that the
interest of the trust beneficiaries is paramount; and
(b) if required by rule, approved by the board.
(3) The director shall [adopt policies] make rules under Title 63, Chapter 46a, Utah
Administrative Rulemaking Act, for notifying and consulting with interested parties under this
section.

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(4) Subject to Subsection [ 53C-2-201 ](1), the development of a written plan is not a
prerequisite to actions by the director.

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