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First Substitute S.B. 24

Senator Dennis E. Stowell proposes the following substitute bill:


             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 from
             11      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 be
             22      distributed to the Geological Survey for test wells, other hydrologic studies, and air
             23      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 administration
             47      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 Utah
             50      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 Tract.
             64          (8) "Subject mineral" means [any] a mineral that is covered by the Mineral [Lands]
             65      Leasing Act, 30 U.S.C. Sec.181 et seq.[, as amended through May 3, 1999.]
             66          Section 2. Section 53C-3-202 is amended to read:
             67           53C-3-202. Collection and distribution of revenues from federal land exchange
             68      parcels.
             69          (1) The director shall collect all bonus payments, rentals, and royalties from the lease
             70      of:
             71          (a) minerals on acquired lands;
             72          (b) acquired mineral interests;
             73          (c) minerals on exchanged lands; and
             74          (d) exchanged mineral interests.
             75          (2) [The] No later than the last day of the second month following each calendar
             76      quarter, the director shall:
             77          (a) [no later than the last day of the second month following each calendar quarter,]
             78      distribute all bonus payments received during the calendar quarter from the lease of coal, oil
             79      and gas, and coalbed methane on the identified tracts as follows:
             80          (i) 50% to the United States; and
             81          (ii) 50% to the Land Exchange Distribution Account created in Section 53C-3-203 ;
             82          (b) [no later than the last day of the second month following each calendar quarter,]
             83      distribute all rentals and royalties received during the calendar quarter from the lease of subject
             84      minerals on the acquired lands and the lease of acquired mineral interests as follows:
             85          (i) 50% to the Land Grant Management Fund created by Section 53C-3-101 ; and
             86          (ii) 50% to the Land Exchange Distribution Account created in Section 53C-3-203 ;
             87      [and]


             88          (c) [no later than the last day of the second month following each calendar quarter,]
             89      deposit [the state's share] 50% of the mineral bonus, rental, and royalty revenue generated from
             90      the lease of subject minerals, other than oil shale, on exchanged lands or from the lease of
             91      exchanged mineral interests, other than interests in oil shale, in the Land Exchange Distribution
             92      Account created in Section 53C-3-203 [.]; and
             93          (d) deposit 50% of the mineral bonus, rental, and royalty revenue generated from the
             94      lease of oil shale on exchanged lands or the lease of exchanged mineral interests that are
             95      interests in oil shale, net of amounts paid to the United States pursuant to a reserved interest of
             96      the United States in oil shale, in the Land Exchange Distribution Account created in Section
             97      53C-3-203 .
             98          (3) (a) [The] Except as provided in Subsection (3)(c), the director may retain up to 3%
             99      of the monies collected under Subsection (1) to pay for administrative costs incurred under
             100      [Subsection] Subsections (1) and (2).
             101          (b) [The] Except as provided in Subsection (3)(c), the director may deduct
             102      administrative costs before [the] distributions are made under [Subsections (2)(a) and (b)]
             103      Subsection (2).
             104          (c) The director may not deduct administrative costs from the portion of collections
             105      derived from minerals on exchanged lands or exchanged mineral interests that is equal to the
             106      United States' reserved interest in oil shale.
             107          [(c)] (d) The director shall keep the administrative cost deductions in separate
             108      accounts.
             109          [(d) (i) For purposes of this section, administrative costs include:]
             110          [(A) direct costs incurred by the administration; and]
             111          [(B) out-of-pocket expenditures incurred by the administration that are directly
             112      attributable to leasing or management of the acquired lands for subject minerals or acquired
             113      mineral interests.]
             114          [(ii) If the administration includes out-of-pocket expenditures under Subsection
             115      (3)(d)(i) in determining its costs, those expenditures may not be included in its general
             116      calculation of direct costs.]
             117          [(e) (i) At the end of each fiscal year, the director shall reconcile the amount actually
             118      spent under Subsection (3)(d) with the amount retained under Subsection (3)(a).]


             119          [(ii)] (e) The monies retained under Subsection (3)(a) are nonlapsing.
             120          (f) The director shall distribute in accordance with Subsection (2) the unused balance
             121      of the monies retained under Subsection (3)(a) that exceeds $2,000,000 at the end of a fiscal
             122      year.
             123          Section 3. Section 53C-3-203 is amended to read:
             124           53C-3-203. Land Exchange Distribution Account.
             125          (1) As used in this section, "account" means the Land Exchange Distribution Account
             126      created in Subsection (2)(a).
             127          (2) (a) There is created within the General Fund a restricted account known as the Land
             128      Exchange Distribution Account.
             129          (b) The account shall consist of [all] revenue deposited in the account as required by
             130      [Subsections 53C-3-202 (2)(a)(ii) and (2)(b)(ii)] Section 53C-3-202 .
             131          (3) (a) The state treasurer shall invest monies in the account according to Title 51,
             132      Chapter 7, State Money Management Act.
             133          (b) The Division of Finance shall deposit interest or other earnings derived from
             134      investment of account monies into the General Fund.
             135          (4) [For fiscal years beginning on or after fiscal year 2007-08, because the revenue is
             136      not derived from taxes, the] The Legislature shall annually appropriate from the account:
             137          (a) 55% of all deposits made to the account to counties in amounts proportionate to the
             138      amounts of mineral revenue generated from the acquired land, exchanged land, acquired
             139      mineral interests, or exchanged mineral interests located in each county, to be used to mitigate
             140      the impacts caused by mineral development;
             141          (b) 25% of all deposits made to the account to counties in amounts proportionate to the
             142      total surface and mineral acreage within each county that was conveyed to the United States
             143      under the agreement or an exchange, to be used to mitigate the loss of mineral development
             144      opportunities resulting from the agreement or exchange;
             145          (c) 1.68% of all deposits made to the account to the State Board of Education, to be
             146      used for education research and experimentation in the use of staff and facilities designed to
             147      improve the quality of education in Utah;
             148          (d) 1.66% of all deposits made to the account to the Geological Survey, to be used for
             149      natural resources development in the state;


             150          (e) 1.66% of all deposits made to the account to the Water Research Laboratory at Utah
             151      State University, to be used for water development in the state; and
             152          (f) 7.5% of all deposits made to the account to the Constitutional Defense Restricted
             153      Account created in Section 63C-4-103 .
             154          (5) [For fiscal years 2007-08 and 2008-09] Beginning with fiscal year 2009-10, the
             155      Legislature shall annually appropriate from the account [7.5%] 1% of all deposits made to the
             156      account to the Geological Survey, to be used for test wells [and], other hydrologic studies, and
             157      air quality monitoring in the West Desert.
             158          (6) [For fiscal years beginning on or after] Beginning with fiscal year 2009-10, the
             159      Legislature shall annually appropriate from the account [7.5%] 6.5% of all deposits made to the
             160      account to the Permanent Community Impact Fund created in Section 9-4-303 , to be used for
             161      grants to political subdivisions of the state to mitigate the impacts resulting from the
             162      development or use of school and institutional trust lands.
             163          Section 4. Section 63I-1-253 is amended to read:
             164           63I-1-253. Repeal dates, Titles 53, 53A, and 53B.
             165          The following provisions are repealed on the following dates:
             166          (1) Section 53-3-232 , Conditional licenses, is repealed July 1, 2015.
             167          (2) Title 53A, Chapter 1a, Part 6, Public Education Job Enhancement Program is
             168      repealed July 1, 2010.
             169          (3) Title 53A, Chapter 1a, Part 9, Voluntary Extended-day Kindergarten Program, is
             170      repealed July 1, 2011.
             171          (4) The State Instructional Materials Commission, created in Section 53A-14-101 , is
             172      repealed July 1, 2011.
             173          (5) Section 53A-17a-163 , Performance-based Compensation Pilot Program is repealed
             174      July 1, 2011.
             175          (6) Subsection 53C-3-203 (5), which provides for the distribution of monies from the
             176      Land Exchange Distribution Account to the Geological Survey for test wells, other hydrologic
             177      studies, and air quality monitoring in the West Desert, is repealed July 1, 2020.


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