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H.B. 352 Enrolled
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9 LONG TITLE
10 General Description:
11 This bill modifies provisions related to the repealed Navajo Trust Fund and the Navajo
12 Revitalization Fund Act to provide for a transition until Congress designates a new
13 recipient of Utah Navajo royalties.
14 Highlighted Provisions:
15 This bill:
16 . addresses definitions;
17 . modifies the structure of the revitalization fund board;
18 . modifies a matching requirement related to powers and activities of the board;
19 . provides for a transition process until Congress designates a new recipient of Utah
20 Navajo royalties, including imposing one or more obligations on the governor, state
21 auditor, state treasurer, and divisions of the Department of Administrative Services;
22 . clarifies the revitalization fund's exemption from legislative approval for a capital
23 development project; and
24 . makes technical and conforming amendments.
25 Monies Appropriated in this Bill:
26 None
27 Other Special Clauses:
28 This bill provides an immediate effective date.
29 This bill provides revisor instructions.
30 This bill coordinates with H.B. 63, Recodification of Title 63 State Affairs in General,
31 providing technical renumbering.
32 Utah Code Sections Affected:
33 AMENDS:
34 9-11-102, as last amended by Laws of Utah 2004, Chapter 18
35 9-11-105, as last amended by Laws of Utah 1998, Chapter 48
36 9-11-107, as last amended by Laws of Utah 2007, Chapter 104
37 63A-5-104, as last amended by Laws of Utah 2007, Chapter 12
38 ENACTS:
39 63-88a-101, Utah Code Annotated 1953
40 63-88a-102, Utah Code Annotated 1953
41 63-88a-103, Utah Code Annotated 1953
42 63-88a-104, Utah Code Annotated 1953
43
44 Be it enacted by the Legislature of the state of Utah:
45 Section 1. Section 9-11-102 is amended to read:
46 9-11-102. Definitions.
47 As used in this chapter:
48 (1) "Board" means the Navajo Revitalization Fund Board.
49 (2) "Capital [
50 improvements on the land, [
51 (3) "Division" means the Division of Housing and Community Development.
52 (4) "Eligible [
53 (a) the Navajo Nation;
54 (b) a department or division of the Navajo Nation;
55 (c) a Utah Navajo Chapter[
56 (d) the Navajo Utah Commission;
57 (e) an agency of the state or a political subdivision of the state; or
58 [
59
60 [
61 (5) "Navajo Utah Commission" means the commission created by Resolution
62 IGRJN-134-92 of the Intergovernmental Relations Committee of the Navajo Nation Council.
63 (6) "Revitalization fund" [
64 (7) "Utah Navajo Chapter" means any of the following chapters of the Navajo Nation:
65 (a) Aneth Chapter;
66 (b) Dennehotso Chapter;
67 (c) Mexican Water Chapter;
68 (d) Navajo Mountain Chapter;
69 (e) Oljato Chapter;
70 (f) Red Mesa Chapter; and
71 (g) Teec Nos Pos Chapter.
72 Section 2. Section 9-11-105 is amended to read:
73 9-11-105. Navajo Revitalization Fund Board.
74 (1) There is created within the division the Navajo Revitalization Board composed of
75 five members as follows:
76 (a) the governor or the governor's designee;
77 (b) the two members of the San Juan County commission whose districts include
78 portions of the Navajo Reservation;
79 (c) the chair of the Navajo Utah Commission or a member of the commission
80 designated by the chair of the Navajo Utah Commission; and
81 (d) (i) ending June 30, 2008, the chair of the Utah Dineh Committee, as created in
82 Section 63-88-107 , or a member of the committee designated by the chair[
83 (ii) beginning July 1, 2008, a president of a Utah Navajo Chapter or an individual
84 designated by the president under an annual rotation system of Utah Navajo Chapters as
85 follows:
86 (A) the president of a Utah Navajo Chapter shall serve for one year;
87 (B) the Utah Navajo Chapter is rotated in alphabetical order as provided in Subsection
88 9-11-102 (7), except that the rotation will begin on July 1, 2008 with the Dennehotso Chapter;
89 (C) if the president of a Utah Navajo Chapter under Subsection (1)(d)(ii)(B) is the same
90 individual as the individual listed in Subsection (1)(c):
91 (I) that Utah Navajo Chapter is skipped as part of that rotation; and
92 (II) the president of the next Utah Navajo Chapter in the alphabetical rotation shall
93 serve on the board.
94 (2) The [
95 described in Subsections (1)(a) through (c) runs concurrently with the [
96 the governor, county [
97 Commission[
98 (3) (a) The governor, or the governor's designee, [
99 [
100 (b) The chair [
101 (4) (a) (i) [
102 government employee of the state or local government [
103 compensation or benefits for [
104 expenses incurred in the performance of the member's official duties at the rates established by
105 the Division of Finance under Sections 63A-3-106 and 63A-3-107 .
106 (ii) [
107 government may decline to receive per diem and expenses for [
108 (b) (i) [
109 [
110 the member's service may receive per diem and expenses incurred in the performance of [
111 the member's official duties from the board at the rates established by the Division of Finance
112 under Sections 63A-3-106 and 63A-3-107 .
113 (ii) [
114 decline to receive per diem and expenses for [
115 (c) (i) [
116 salary, per diem, or expenses from the entity that [
117 represents for the member's service may receive per diem and expenses incurred in the
118 performance of [
119 Finance under Sections 63A-3-106 and 63A-3-107 .
120 (ii) [
121 expenses for [
122 (d) The per diem and expenses permitted under this Subsection (4) may be included as
123 costs of administration of the revitalization fund.
124 (5) Four board members are a quorum.
125 (6) [
126 An affirmative vote of each member of the board present at a meeting when a quorum is present
127 is required for a board decision related to monies in or disbursed from the revitalization fund.
128 Section 3. Section 9-11-107 is amended to read:
129 9-11-107. Revitalization fund administered by board -- Eligibility for assistance --
130 Review by board -- Restrictions on loans and grants -- Division to distribute monies.
131 (1) (a) If an eligible entity wishes to receive a loan or grant from the board, the eligible
132 entity shall [
133 contains the information required by the board.
134 (b) The board shall review [
135 Subsection (1)(a) before approving the loan or grant.
136 (c) The board may approve a loan or grant [
137 applicant's compliance with [
138 (2) In determining whether an eligible entity may receive a loan or grant, the board shall
139 give priority to:
140 (a) a capital [
141 (i) electrical power[
142 (ii) water[
143 (iii) a one time need [
144 (b) a housing [
145 (i) the purchase of new housing;
146 (ii) the construction of new housing; or
147 (iii) a significant remodeling of existing housing; or
148 (c) a matching educational [
149 (i) [
150 Reservation;
151 (ii) [
152 (iii) [
153 Navajo [
154 the Utah portion of the Navajo Reservation.
155 (3) A loan or grant issued under this chapter may not fund:
156 (a) a start-up or operational [
157 (b) a general operating [
158 (c) a project [
159 Reservation in San Juan County, Utah, except for an educational [
160 approved by the board under Subsection (2)(c).
161 (4) (a) The board may not approve a loan unless the loan:
162 (i) specifies the terms for repayment; and
163 (ii) is secured by proceeds from a general obligation, special assessment, or revenue
164 bond, note, or other obligation.
165 (b) [
166 this chapter [
167 (5) The board [
168 loan or grant [
169 (a) the Navajo Nation;
170 [
171 [
172 [
173 [
174 [
175 [
176 (6) The division shall distribute loan and grant monies:
177 (a) if the loan or grant is approved by the board;
178 (b) in accordance with the instructions of the board, except that the board may not
179 instruct that monies be distributed in a manner:
180 (i) inconsistent with this chapter; or
181 (ii) in violation of [
182 (c) in the case of a loan, in accordance with Section 63A-3-205 .
183 Section 4. Section 63-88a-101 is enacted to read:
184
185 63-88a-101. Title.
186 This chapter is known as the "Transition for Repealed Navajo Trust Fund Act."
187 Section 5. Section 63-88a-102 is enacted to read:
188 63-88a-102. Definitions.
189 As used in this chapter:
190 (1) "Liability or obligation" includes only an action specifically approved by the majority
191 of the repealed board of trustees in a meeting of the repealed board of trustees.
192 (2) "Related assets and liabilities" means the assets, liabilities, and obligations of the
193 repealed Navajo Trust Fund as of June 30, 2008.
194 (3) "Repealed board of trustees" means the board of trustees appointed under Title 63,
195 Chapter 88, Navajo Trust Fund, repealed under Title 63, Chapter 55, Legislative Oversight and
196 Sunset Act.
197 (4) "Repealed Dineh Committee" means the Dineh Committee established under Title
198 63, Chapter 88, Navajo Trust Fund, repealed under Title 63, Chapter 55, Legislative Oversight
199 and Sunset Act.
200 (5) "Repealed Navajo Trust Fund" means the Navajo Trust Fund established under Title
201 63, Chapter 88, Navajo Trust Fund, repealed under Title 63, Chapter 55, Legislative Oversight
202 and Sunset Act.
203 (6) "Repealed trust administrator" means the trust administrator appointed under Title
204 63, Chapter 88, Navajo Trust Fund, repealed under Title 63, Chapter 55, Legislative Oversight
205 and Sunset Act.
206 (7) "Utah Navajo royalties" means the revenues received by the state that represent the
207 37-1/2% of the net oil royalties from the Aneth Extension of the Navajo Indian Reservation
208 required by P.L. 72-403, 47 Stat. 1418, and P.L. 90-306, 82 Stat. 121, to be paid to the state.
209 Section 6. Section 63-88a-103 is enacted to read:
210 63-88a-103. Purpose statement.
211 It is the purpose of this chapter to provide for a transitional process until congressional
212 action designates a new recipient of the Utah Navajo royalties.
213 Section 7. Section 63-88a-104 is enacted to read:
214 63-88a-104. Utah Navajo royalties and related issues.
215 (1) (a) Notwithstanding Title 63, Chapter 88, Navajo Trust Fund and except as
216 provided in Subsection (7), the following are subject to this Subsection (1):
217 (i) the repealed board of trustees;
218 (ii) the repealed trust administrator;
219 (iii) an employee or agent of the repealed Navajo Trust Fund; or
220 (iv) the repealed Dineh Committee.
221 (b) The repealed board of trustees may not:
222 (i) beginning on the effective date of this bill, take an action that imposes or may impose
223 a liability or obligation described in Subsection (1)(d) that is:
224 (A) anticipated to be completed on or after January 1, 2010; or
225 (B) equal to or greater than $100,000;
226 (ii) on or after May 5, 2008, take an action that imposes or may impose a liability or
227 obligation described in Subsection (1)(d).
228 (c) On or after the effective date of this bill a person described in Subsections (1)(a)(ii)
229 through (iv) may not take an action that imposes or may impose a liability or obligation
230 described in Subsection (1)(d).
231 (d) Subsection (1)(b) applies to a liability or obligation on:
232 (i) the repealed Navajo Trust Fund;
233 (ii) the Navajo Revitalization Fund created under Title 9, Chapter 11, Navajo
234 Revitalization Fund Act;
235 (iii) the state; or
236 (iv) any of the following related to an entity described in this Subsection (1)(d):
237 (A) a department;
238 (B) a division;
239 (C) an office;
240 (D) a committee;
241 (E) a board;
242 (F) an officer;
243 (G) an employee; or
244 (H) a similar agency or individual.
245 (2) The Division of Finance shall:
246 (a) establish a fund by no later than July 1, 2008:
247 (i) to hold:
248 (A) the monies in the repealed Navajo Trust Fund as of June 30, 2008;
249 (B) Utah Navajo royalties received by the state on or after July 1, 2008;
250 (C) revenues from investments made by the state treasurer of the monies in the fund
251 established under this Subsection (2)(a); and
252 (D) monies owed to the repealed Navajo Trust Fund, including monies received by the
253 repealed trust administrator or repealed Dineh Committee from an agreement executed by:
254 (I) the repealed board of trustees;
255 (II) the repealed trust administrator; or
256 (III) the repealed Dineh Committee; and
257 (ii) from which monies may not be transferred or expended, except:
258 (A) as provided in Subsection (7); or
259 (B) as authorized by congressional action to designate a new recipient of the Utah
260 Navajo royalties; and
261 (b) by no later than July 1, 2008, transfer to the fund created under Subsection (2)(a) in
262 a manner consistent with this section the related assets and liabilities of the repealed Navajo
263 Trust Fund, including the transfer of monies in the repealed Navajo Trust Fund.
264 (3) The state treasurer shall invest monies in the fund created in Subsection (2)(a) in
265 accordance with Title 51, Chapter 7, State Money Management Act.
266 (4) (a) By no later than May 5, 2008, the repealed board of trustees shall:
267 (i) adopt a list of all related assets and liabilities of the repealed trust fund that are not
268 satisfied by May 5, 2008, which may include assets and liabilities that are contingent in nature or
269 amount;
270 (ii) adopt a list of all individuals who at the time of adoption meet the requirements of
271 Subsection (7)(b); and
272 (iii) provide a copy of the lists described in Subsection (4)(a)(i) and (ii) to:
273 (A) the state auditor; and
274 (B) the Department of Administrative Services.
275 (b) The state auditor, in addition to completing its Fiscal Year 2007-2008 audit of the
276 repealed Navajo Trust Fund, shall:
277 (i) verify the list of the related assets and liabilities of the repealed Navajo Trust Fund
278 adopted by the repealed board of trustees under Subsection (4)(a) by no later than June 30,
279 2008; and
280 (ii) provide a written copy of the verification to the governor and the Legislature by no
281 later than July 30, 2008.
282 (5) The governor shall ensure that the reporting requirements under P.L. 90-306, 82
283 Stat. 121, are met.
284 (6) The Department of Administrative Services, in cooperation with the Department of
285 Human Resources, may assist employees of the repealed Navajo Trust Fund as of June 30,
286 2008, in accordance with Title 67, Chapter 19, Utah State Personnel Management Act.
287 (7) With the fund created under Subsection (2) and the fixed assets of the repealed
288 Navajo Trust Fund, the Department of Administrative Services shall:
289 (a) fulfill the liabilities and obligations of the repealed Navajo Trust Fund as of June 30,
290 2008;
291 (b) provide monies to an individual enrolled member of the Navajo Nation who:
292 (i) resides in San Juan County;
293 (ii) as of June 30, 2010, has received monies under this Subsection (7)(b) for
294 postsecondary education;
295 (iii) beginning the later of June 30 or the day on which the individual first receives
296 monies under this Subsection (7)(b), is enrolled in postsecondary education for the equivalent of
297 at least two semesters each year; and
298 (iv) meets the eligibility requirements adopted by the repealed board of trustees as of
299 the effective date of this bill;
300 (c) through the Division of Facilities Construction and Management, reasonably
301 maintain the fixed assets of the repealed Navajo Trust Fund, to the extent that a lessee of a fixed
302 asset is not required by a lease to maintain a fixed asset;
303 (d) through the Division of Facilities Construction and Management, take those steps
304 necessary to secure the purchase:
305 (i) of the following that is owned by the repealed Navajo Trust Fund as of May 5, 2008:
306 (A) the government service building; or
307 (B) another fixed asset of the repealed Navajo Trust Fund, if the sale of the fixed asset
308 is consistent with the obligations of the state with regard to the Utah Navajo royalties; and
309 (ii) (A) in an arms length manner; and
310 (B) so that fair market compensation is paid to the repealed Navajo Trust Fund; and
311 (e) charge the fund established under Subsection (2)(a) for the expenses that are
312 necessary and reasonable to comply with the requirements of this Subsection (7).
313 (8) Unless expressly prohibited by this chapter, the state may take any action with
314 regard to the assets held by the state under this chapter that is consistent with the obligations of
315 the state related to the Utah Navajo royalties.
316 Section 8. Section 63A-5-104 is amended to read:
317 63A-5-104. Capital development and capital improvement process -- Approval
318 requirements -- Limitations on new projects -- Emergencies.
319 (1) As used in this section:
320 (a) "Capital developments" means [
321 (i) remodeling, site, or utility [
322 (ii) new facility with a construction cost of $500,000 or more; or
323 (iii) purchase of real property where an appropriation is requested to fund the purchase.
324 (b) "Capital improvements" means [
325 (i) remodeling, alteration, replacement, or repair project with a total cost of less than
326 $2,500,000;
327 (ii) site and utility improvement with a total cost of less than $2,500,000; or
328 (iii) new facility with a total construction cost of less than $500,000.
329 (c) (i) "New facility" means the construction of [
330 regardless of funding source.
331 (ii) "New facility" includes:
332 (A) an addition to an existing building; and
333 (B) the enclosure of space that was not previously fully enclosed.
334 (iii) "New facility" does not mean:
335 (A) the replacement of state-owned space that is demolished or that is otherwise
336 removed from state use, if the total construction cost of the replacement space is less than
337 $2,500,000; or
338 (B) the construction of facilities that do not fully enclose a space.
339 (d) "Replacement cost of existing state facilities" means the replacement cost, as
340 determined by the Division of Risk Management, of state facilities, excluding auxiliary facilities
341 as defined by the State Building Board.
342 (e) "State funds" means public monies appropriated by the Legislature.
343 (2) The State Building Board, on behalf of all state agencies, commissions,
344 departments, and institutions shall submit its capital development recommendations and
345 priorities to the Legislature for approval and prioritization.
346 (3) (a) Except as provided in Subsections (3)(b), (d), and (e), a capital development
347 project may not be constructed on state property without legislative approval.
348 (b) Legislative approval is not required for a capital development project if the State
349 Building Board determines that:
350 (i) the requesting higher education institution has provided adequate assurance that:
351 (A) state funds will not be used for the design or construction of the facility; and
352 (B) the higher education institution has a plan for funding in place that will not require
353 increased state funding to cover the cost of operations and maintenance to, or state funding for,
354 immediate or future capital improvements to the resulting facility; and
355 (ii) the use of the state property is:
356 (A) appropriate and consistent with the master plan for the property; and
357 (B) will not create an adverse impact on the state.
358 (c) (i) The Division of Facilities Construction and Management shall maintain a record
359 of facilities constructed under the exemption provided in Subsection (3)(b).
360 (ii) For facilities constructed under the exemption provided in Subsection (3)(b), a
361 higher education institution may not request:
362 (A) increased state funds for operations and maintenance; or
363 (B) state capital improvement funding.
364 (d) Legislative approval is not required for:
365 (i) the renovation, remodeling, or retrofitting of an existing facility with nonstate funds;
366 (ii) [
367 within research park areas at the University of Utah and Utah State University;
368 (iii) [
369 Foundation with funds of the foundation, including grant monies from the state, or with donated
370 services or materials;
371 (iv) a capital [
372 (A) is funded by [
373 (I) the Uintah Basin Revitalization Fund [
374 (II) the Navajo Revitalization Fund; and
375 (B) does not provide a new facility for a state agency or higher education institution; or
376 (v) a capital [
377 by the School and Institutional Trust Lands Administration from the Land Grant Management
378 Fund and that [
379 education institution.
380 (e) (i) Legislative approval is not required for capital development projects to be built
381 for the Department of Transportation as a result of an exchange of real property under Section
382 72-5-111 .
383 (ii) When the Department of Transportation approves those exchanges, it shall notify
384 the president of the Senate, the speaker of the House, and the cochairs of the Capital Facilities
385 and Administrative Services Subcommittee of the Legislature's Joint Appropriation Committee
386 about any new facilities to be built under this exemption.
387 (4) (a) The State Building Board, on behalf of all state agencies, commissions,
388 departments, and institutions shall by January 15 of each year, submit a list of anticipated capital
389 improvement requirements to the Legislature for review and approval.
390 (b) Unless otherwise directed by the Legislature, the building board shall prioritize
391 capital improvements from the list submitted to the Legislature up to the level of appropriation
392 made by the Legislature.
393 (c) In prioritizing capital improvements, the building board shall consider the results of
394 facility evaluations completed by an architect/engineer as stipulated by the building board's
395 facilities maintenance standards.
396 (d) The building board may require an entity that benefits from a capital improvement
397 project to repay the capital improvement funds from savings that result from the project.
398 (5) The Legislature may authorize:
399 (a) the total square feet to be occupied by each state agency; and
400 (b) the total square feet and total cost of lease space for each agency.
401 (6) (a) Except as provided in Subsection (6)(b), the Legislature may not fund the design
402 or construction of any new capital development projects, except to complete the funding of
403 projects for which partial funding has been previously provided, until the Legislature has
404 appropriated 1.1% of the replacement cost of existing state facilities to capital improvements.
405 (b) (i) As used in this Subsection (6)(b), "operating deficit" means that estimated
406 General Fund or Uniform School Fund revenues are less than budgeted for the current or next
407 fiscal year.
408 (ii) If the Legislature determines that an operating deficit exists, the Legislature may, in
409 eliminating the deficit, reduce the amount appropriated to capital improvements to 0.9% of the
410 replacement cost of state buildings.
411 (7) (a) If, after approval of capital development and capital improvement priorities by
412 the Legislature under this section, emergencies arise that create unforeseen critical capital
413 improvement projects, the State Building Board may, notwithstanding the requirements of Title
414 63, Chapter 38, Budgetary Procedures Act, reallocate capital improvement funds to address
415 those projects.
416 (b) The building board shall report any changes it makes in capital improvement
417 allocations approved by the Legislature to:
418 (i) the Office of Legislative Fiscal Analyst within 30 days of the reallocation; and
419 (ii) the Legislature at its next annual general session.
420 (8) (a) The State Building Board may adopt a rule allocating to institutions and
421 agencies their proportionate share of capital improvement funding.
422 (b) The building board shall ensure that the rule:
423 (i) reserves funds for the Division of Facilities Construction and Management for
424 emergency projects; and
425 (ii) allows the delegation of projects to some institutions and agencies with the
426 requirement that a report of expenditures will be filed annually with the Division of Facilities
427 Construction and Management and appropriate governing bodies.
428 (9) It is the intent of the Legislature that in funding capital improvement requirements
429 under this section the General Fund be considered as a funding source for at least half of those
430 costs.
431 Section 9. Effective date.
432 If approved by two-thirds of all the members elected to each house, this bill takes effect
433 upon approval by the governor, or the day following the constitutional time limit of Utah
434 Constitution Article VII, Section 8, without the governor's signature, or in the case of a veto,
435 the date of veto override.
436 Section 10. Revisor instructions.
437 It is the intent of the Legislature that in preparing the Utah Code database for
438 publication the Office of Legislative Research and General Counsel replace the phrase "the
439 effective date of this bill" with the actual effective date in the following Utah Code sections:
440 (1) Subsections 63-88a-104 (1)(b)(i) and (1)(c); and
441 (2) Subsection 63-88a-104 (7)(b)(iv).
442 Section 11. Coordinating H.B. 352 with H.B. 63 -- Technical renumbering.
443 If this H.B. 352 and H.B. 63, Recodification of Title 63 State Affairs in General, both
444 pass, it is the intent of the Legislature that the Office of Legislative Research and General
445 Counsel in preparing the Utah Code database for publication:
446 (1) renumber Sections 63-88a-101 through 63-88a-104 as Sections 51-9-501 through
447 51-9-504 ;
448 (2) not renumber or make the changes to Title 63, Chapter 88, provided in H.B. 63,
449 except the Office of Legislative Research and General Counsel shall make:
450 (a) the citation change in Subsections 63-88-103 (2)(a)(i) and 63-88-106 (2)(a)(i) to
451 Title 63G, Chapter 6, Utah Procurement Code; and
452 (b) the citation change in Subsection 63-88-106 (6)(a) to Title 63G, Chapter 3, Utah
453 Administrative Rulemaking Act; and
454 (3) not make the amendments in H.B. 63 to the following:
455 (a) Section 9-11-102 ;
456 (b) Section 9-11-105 ;
457 (c) Section 9-11-107 ; and
458 (d) Subsection 63I-1-263 (8) as renumbered in H.B. 63.
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