S.B. 24 Enrolled

1

LAND EXCHANGE DISTRIBUTION ACCOUNT
2 AMENDMENTS
3 2010 GENERAL SESSION
4 STATE OF UTAH
5 Chief Sponsor: Dennis E. Stowell
6 House Sponsor: John G. Mathis
7
8 LONG TITLE
9 General Description:
10 This bill modifies provisions relating to the collection and distribution of revenues
11 from federal land exchange parcels.
12 Highlighted Provisions:
13 This bill:
14 . defines terms;
15 . provides that 50% of the revenue generated from oil shale leases on federal land
16 exchange parcels, net of amounts paid to the United States pursuant to a reserved
17 interest of the United States in oil shale, shall be deposited in the Land Exchange
18 Distribution Account;
19 . modifies the calculation of administrative costs related to the collection and
20 distribution of revenue from federal land exchange parcels;
21 . provides that 1% of the monies in the Land Exchange Distribution Account shall
22 be distributed to the Geological Survey for test wells, other hydrologic studies, and
23 air quality monitoring in the West Desert;
24 . reduces the amount of money distributed from the Land Exchange Distribution
25 Account to the Permanent Community Impact Fund from 7.5% to 6.5% of the
26 account monies;
27 . provides a repeal date; and
28 . makes technical amendments.
29 Monies Appropriated in this Bill:

30 None
31 Other Special Clauses:
32 None
33 Utah Code Sections Affected:
34 AMENDS:
35 53C-3-201, as last amended by Laws of Utah 2007, Chapter 303
36 53C-3-202, as last amended by Laws of Utah 2007, Chapter 303
37 53C-3-203, as last amended by Laws of Utah 2008, Chapter 216
38 63I-1-253, as last amended by Laws of Utah 2009, Chapter 299
39
40 Be it enacted by the Legislature of the state of Utah:
41 Section 1. Section 53C-3-201 is amended to read:
42 53C-3-201. Definitions.
43 As used in this part:
44 (1) "Acquired lands" means [those] lands acquired by the administration under the
45 agreement.
46 (2) "Acquired mineral interests" means mineral interests acquired by the
47 administration pursuant to Section 3(F), (K), (L), or (M) of the agreement.
48 (3) "Agreement" means the Agreement to Exchange Utah School Trust Lands Between
49 the State of Utah and the United States of America, signed May 8, 1998, as ratified by the
50 Utah School and Lands Exchange Act of 1998, Pub. L. No. 105-335.
51 (4) "Exchange" means [any] a land or mineral interest exchange by the administration
52 and the United States of America after March 1, 2007 that is directed by Congressional action.
53 (5) "Exchanged lands" means [those] lands:
54 (a) acquired by the administration through an exchange[.]; and
55 (b) reduced in value to take into account the presence of minerals subject to leasing
56 under the Mineral Leasing Act, 30 U.S.C. Sec. 181 et seq.
57 (6) "Exchanged mineral interests" means mineral interests:

58 (a) acquired by the administration through an exchange[.]; and
59 (b) reduced in value to take into account the presence of minerals subject to leasing
60 under the Mineral Leasing Act, 30 U.S.C. Sec. 181 et seq.
61 (7) "Identified tracts" means the tracts identified in Section 3(F), (G), (J), (K), (L), and
62 (M) of the agreement, generally referred to as the Cottonwood Tract, Westridge Coal Tract,
63 Ferron Field, Mill Fork Tract, Dugout Canyon Tract, Muddy Tract, and North Horn Coal
64 Tract.
65 (8) "Subject mineral" means [any] a mineral that is covered by the Mineral [Lands]
66 Leasing Act, 30 U.S.C. Sec.181 et seq.[, as amended through May 3, 1999.]
67 Section 2. Section 53C-3-202 is amended to read:
68 53C-3-202. Collection and distribution of revenues from federal land exchange
69 parcels.
70 (1) The director shall collect all bonus payments, rentals, and royalties from the lease
71 of:
72 (a) minerals on acquired lands;
73 (b) acquired mineral interests;
74 (c) minerals on exchanged lands; and
75 (d) exchanged mineral interests.
76 (2) [The] No later than the last day of the second month following each calendar
77 quarter, the director shall distribute:
78 (a) [no later than the last day of the second month following each calendar quarter,
79 distribute all] bonus payments received during the calendar quarter from the lease of coal, oil
80 and gas, and coalbed methane on the identified tracts as follows:
81 (i) 50% to the United States; and
82 (ii) 50% to the Land Exchange Distribution Account created in Section 53C-3-203 ;
83 (b) [no later than the last day of the second month following each calendar quarter,
84 distribute all] rentals and royalties received during the calendar quarter from the lease of
85 subject minerals on the acquired lands and the lease of acquired mineral interests as follows:

86 (i) 50% to the Land Grant Management Fund created by Section 53C-3-101 ; and
87 (ii) 50% to the Land Exchange Distribution Account created in Section 53C-3-203 ;
88 [and]
89 (c) [no later than the last day of the second month following each calendar quarter,
90 deposit the state's share of the] mineral bonus, rental, and royalty revenue generated from the
91 lease of subject minerals, other than oil shale, on exchanged lands or from the lease of
92 exchanged mineral interests, other than interests in oil shale, [in] as follows:
93 (i) 50% to the Land Grant Management Fund created by Section 53C-3-101 ; and
94 (ii) 50% to the Land Exchange Distribution Account created in Section 53C-3-203 [.];
95 and
96 (d) mineral bonus, rental, and royalty revenue generated from the lease of oil shale on
97 exchanged lands or the lease of exchanged mineral interests that are interests in oil shale, net
98 of amounts paid to the United States pursuant to a reserved interest of the United States in oil
99 shale, as follows:
100 (i) 50% to the Land Grant Management Fund created by Section 53C-3-101 ; and
101 (ii) 50% to the Land Exchange Distribution Account created in Section 53C-3-203 .
102 (3) (a) [The] Except as provided in Subsection (3)(c), the director may retain up to 3%
103 of the monies collected under Subsection (1) to pay for administrative costs incurred under
104 [Subsection] Subsections (1) and (2).
105 (b) [The] Except as provided in Subsection (3)(c), the director may deduct
106 administrative costs before [the] distributions are made under [Subsections (2)(a) and (b)]
107 Subsection (2).
108 (c) The director may not deduct administrative costs from the portion of collections
109 derived from minerals on exchanged lands or exchanged mineral interests that is equal to the
110 United States' reserved interest in oil shale.
111 [(c)] (d) The director shall keep the administrative cost deductions in separate
112 accounts.
113 [(d) (i) For purposes of this section, administrative costs include:]

114 [(A) direct costs incurred by the administration; and]
115 [(B) out-of-pocket expenditures incurred by the administration that are directly
116 attributable to leasing or management of the acquired lands for subject minerals or acquired
117 mineral interests.]
118 [(ii) If the administration includes out-of-pocket expenditures under Subsection
119 (3)(d)(i) in determining its costs, those expenditures may not be included in its general
120 calculation of direct costs.]
121 [(e) (i) At the end of each fiscal year, the director shall reconcile the amount actually
122 spent under Subsection (3)(d) with the amount retained under Subsection (3)(a).]
123 [(ii)] (e) The monies retained under Subsection (3)(a) are nonlapsing.
124 (f) The director shall distribute in accordance with Subsection (2) the unused balance
125 of the monies retained under Subsection (3)(a) that exceeds $2,000,000 at the end of a fiscal
126 year.
127 Section 3. Section 53C-3-203 is amended to read:
128 53C-3-203. Land Exchange Distribution Account.
129 (1) As used in this section, "account" means the Land Exchange Distribution Account
130 created in Subsection (2)(a).
131 (2) (a) There is created within the General Fund a restricted account known as the
132 Land Exchange Distribution Account.
133 (b) The account shall consist of [all] revenue deposited in the account as required by
134 [Subsections 53C-3-202 (2)(a)(ii) and (2)(b)(ii)] Section 53C-3-202 .
135 (3) (a) The state treasurer shall invest monies in the account according to Title 51,
136 Chapter 7, State Money Management Act.
137 (b) The Division of Finance shall deposit interest or other earnings derived from
138 investment of account monies into the General Fund.
139 (4) [For fiscal years beginning on or after fiscal year 2007-08, because the revenue is
140 not derived from taxes, the] The Legislature shall annually appropriate from the account:
141 (a) 55% of all deposits made to the account to counties in amounts proportionate to

142 the amounts of mineral revenue generated from the acquired land, exchanged land, acquired
143 mineral interests, or exchanged mineral interests located in each county, to be used to mitigate
144 the impacts caused by mineral development;
145 (b) 25% of all deposits made to the account to counties in amounts proportionate to
146 the total surface and mineral acreage within each county that was conveyed to the United
147 States under the agreement or an exchange, to be used to mitigate the loss of mineral
148 development opportunities resulting from the agreement or exchange;
149 (c) 1.68% of all deposits made to the account to the State Board of Education, to be
150 used for education research and experimentation in the use of staff and facilities designed to
151 improve the quality of education in Utah;
152 (d) 1.66% of all deposits made to the account to the Geological Survey, to be used for
153 natural resources development in the state;
154 (e) 1.66% of all deposits made to the account to the Water Research Laboratory at
155 Utah State University, to be used for water development in the state; and
156 (f) 7.5% of all deposits made to the account to the Constitutional Defense Restricted
157 Account created in Section 63C-4-103 .
158 (5) [For fiscal years 2007-08 and 2008-09] Beginning with fiscal year 2009-10, the
159 Legislature shall annually appropriate from the account [7.5%] 1% of all deposits made to the
160 account to the Geological Survey, to be used for test wells [and], other hydrologic studies, and
161 air quality monitoring in the West Desert.
162 (6) [For fiscal years beginning on or after] Beginning with fiscal year 2009-10, the
163 Legislature shall annually appropriate from the account [7.5%] 6.5% of all deposits made to
164 the account to the Permanent Community Impact Fund created in Section 9-4-303 , to be used
165 for grants to political subdivisions of the state to mitigate the impacts resulting from the
166 development or use of school and institutional trust lands.
167 Section 4. Section 63I-1-253 is amended to read:
168 63I-1-253. Repeal dates, Titles 53, 53A, and 53B.
169 The following provisions are repealed on the following dates:

170 (1) Section 53-3-232 , Conditional licenses, is repealed July 1, 2015.
171 (2) Title 53A, Chapter 1a, Part 6, Public Education Job Enhancement Program is
172 repealed July 1, 2010.
173 (3) Title 53A, Chapter 1a, Part 9, Voluntary Extended-day Kindergarten Program, is
174 repealed July 1, 2011.
175 (4) The State Instructional Materials Commission, created in Section 53A-14-101 , is
176 repealed July 1, 2011.
177 (5) Section 53A-17a-163 , Performance-based Compensation Pilot Program is repealed
178 July 1, 2011.
179 (6) Subsection 53C-3-203 (5), which provides for the distribution of monies from the
180 Land Exchange Distribution Account to the Geological Survey for test wells, other hydrologic
181 studies, and air quality monitoring in the West Desert, is repealed July 1, 2020.