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First Substitute H.B. 51

This document includes House Committee Amendments incorporated into the bill on Wed, Feb 2, 2011 at 10:56 AM by lerror. --> This document includes Senate Committee Amendments incorporated into the bill on Mon, Feb 28, 2011 at 2:11 PM by rday. -->

Representative Roger E. Barrus proposes the following substitute bill:


             1     
SCHOOL AND INSTITUTIONAL TRUST LANDS

             2     
2011 GENERAL SESSION

             3     
STATE OF UTAH

             4     
Chief Sponsor: Roger E. Barrus

             5     
Senate Sponsor: Stephen H. Urquhart

             6     
             7      LONG TITLE
             8      General Description:
             9          This bill modifies provisions of the School and Institutional Trust Lands Management
             10      Act.
             11      Highlighted Provisions:
             12          This bill:
             13          .    deletes obsolete language;
             14          .    exempts the School and Institutional Trust Lands Administration (administration)
             15      from the petition process provisions of the Administrative Rulemaking Act;
             16          .    exempts the Administration from fee agency provisions S. for certain fees .S in the
             16a      Budgetary
             17      Procedures Act;
             18          .    makes modifications to School and Institutional Trust Lands Board of Trustees
             19      (board) terms and replacement appointments;
             20          .    specifically grants the director authority to acquire and dispose of lands and assets;
             21          .    modifies the judicial review process of the board and administration;
             22          .    allows the administration to request financial information from certain providers;
             23          .    modifies the mining claim administration fee;
             24          .    authorizes the director to withdraw lands from surface occupancy or use when there
             25      is a potential for resource degradation;


             26          .    modifies the requirements that a person who degrades trust lands must meet in
             27      restoring the land;
             28          .    requires the Permanent Community Impact Fund Board to S. [ consult with ] consider
             28a      recommendations from .S the
             29      administration S. [ before ] when .S awarding certain grants;
             30          .    allows a lease or permit which includes an option to purchase at a future date to be
             31      negotiated in a method other than through a public competitive process; and
             32          .    makes technical changes.
             33      Money Appropriated in this Bill:
             34          None
             35      Other Special Clauses:
             36          None
             37      Utah Code Sections Affected:
             38      AMENDS:
             39          9-4-307, as last amended by Laws of Utah 2008, Chapter 382
             40          53C-1-201, as last amended by Laws of Utah 2010, Chapter 218
             41          53C-1-202, as last amended by Laws of Utah 2008, Chapter 382
             42          53C-1-203, as last amended by Laws of Utah 2010, Chapter 286
             43          53C-1-204, as last amended by Laws of Utah 2000, Chapter 237
             44          53C-1-302, as last amended by Laws of Utah 1997, Chapter 126
             45          53C-1-303, as last amended by Laws of Utah 2004, Chapter 63
             46          53C-1-304, as last amended by Laws of Utah 2008, Chapter 382
             47          53C-2-102, as last amended by Laws of Utah 2005, Chapter 67
             48          53C-2-103, as enacted by Laws of Utah 1994, Chapter 294
             49          53C-2-104, as last amended by Laws of Utah 2003, Chapter 192
             50          53C-2-105, as enacted by Laws of Utah 2003, Chapter 192
             51          53C-2-301, as last amended by Laws of Utah 1997, Chapter 72
             52          53C-2-404, as enacted by Laws of Utah 1994, Chapter 294
             53          53C-2-407, as last amended by Laws of Utah 2005, Chapter 39
             54          53C-3-101, as last amended by Laws of Utah 2004, Chapter 349
             55          53C-3-203, as last amended by Laws of Utah 2010, Chapters 79 and 262
             56          53C-4-101, as last amended by Laws of Utah 1997, Chapter 126


             57          53C-4-102, as last amended by Laws of Utah 2004, Chapter 40
             58          53C-4-201, as last amended by Laws of Utah 1995, Chapter 299
             59          53C-4-301, as last amended by Laws of Utah 2004, Chapter 40
             60          63J-1-504, as last amended by Laws of Utah 2010, Chapter 146
             61          63L-2-201, as renumbered and amended by Laws of Utah 2008, Chapter 382
             62     
             63      Be it enacted by the Legislature of the state of Utah:
             64          Section 1. Section 9-4-307 is amended to read:
             65           9-4-307. Impact fund administered by impact board -- Eligibility for assistance --
             66      Review by board -- Administration costs -- Annual report.
             67          (1) (a) The impact board shall:
             68          (i) administer the impact fund in a manner that will keep a portion of the impact fund
             69      revolving;
             70          (ii) determine provisions for repayment of loans; [and]
             71          (iii) establish criteria for determining eligibility for assistance under this part[.]; and
             72          (iv) S. [ consult with ] consider recommendations from .S the School and Institutional
             72a      Trust Lands Administration S. [ before ] when .S
             73      awarding a grant described in Subsection 9-4-303 (6).
             74          (b) (i) Criteria for awarding loans or grants made from funds described in Subsection
             75      9-4-303 (5) shall be consistent with Subsection 9-4-303 (5).
             76          (ii) Criteria for awarding grants made from funds described in Subsection
             77      9-4-303 (2)(c) shall be consistent with Subsection 9-4-303 (6).
             78          (c) In order to receive assistance under this part, subdivisions and interlocal agencies
             79      shall submit formal applications containing the information that the impact board requires.
             80          (2) In determining eligibility for loans and grants under this part, the impact board shall
             81      consider the following:
             82          (a) the subdivision's or interlocal agency's current mineral lease production;
             83          (b) the feasibility of the actual development of a resource that may impact the
             84      subdivision or interlocal agency directly or indirectly;
             85          (c) current taxes being paid by the subdivision's or interlocal agency's residents;
             86          (d) the borrowing capacity of the subdivision or interlocal agency, its ability and
             87      willingness to sell bonds or other securities in the open market, and its current and authorized


             88      indebtedness;
             89          (e) all possible additional sources of state and local revenue, including utility user
             90      charges;
             91          (f) the availability of federal assistance funds;
             92          (g) probable growth of population due to actual or prospective natural resource
             93      development in an area;
             94          (h) existing public facilities and services;
             95          (i) the extent of the expected direct or indirect impact upon public facilities and
             96      services of the actual or prospective natural resource development in an area; and
             97          (j) the extent of industry participation in an impact alleviation plan, either as specified
             98      in Title 63M, Chapter 5, Resource Development Act, or otherwise.
             99          (3) The impact board may not fund any education project that could otherwise have
             100      reasonably been funded by a school district through a program of annual budgeting, capital
             101      budgeting, bonded indebtedness, or special assessments.
             102          (4) The impact board may restructure all or part of the agency's or subdivision's
             103      liability to repay loans for extenuating circumstances.
             104          (5) The impact board shall:
             105          (a) review the proposed uses of the impact fund for loans or grants before approving
             106      them and may condition its approval on whatever assurances that the impact board considers to
             107      be necessary to ensure that the proceeds of the loan or grant will be used in accordance with the
             108      Leasing Act and this part; and
             109          (b) ensure that each loan specifies the terms for repayment and is evidenced by general
             110      obligation, special assessment, or revenue bonds, notes, or other obligations of the appropriate
             111      subdivision or interlocal agency issued to the impact board under whatever authority for the
             112      issuance of those bonds, notes, or obligations exists at the time of the loan.
             113          (6) The impact board shall allocate from the impact fund to the department those funds
             114      that are appropriated by the Legislature for the administration of the impact fund, but this
             115      amount may not exceed 2% of the annual receipts to the impact fund.
             116          (7) The department shall make an annual report to the Legislature concerning the
             117      number and type of loans and grants made as well as a list of subdivisions and interlocal
             118      agencies that received this assistance.


             119          Section 2. Section 53C-1-201 is amended to read:
             120           53C-1-201. Creation of administration -- Purpose -- Director.
             121          (1) (a) There is established within state government the School and Institutional Trust
             122      Lands Administration.
             123          (b) The administration shall manage all school and institutional trust lands and assets
             124      within the state, except as otherwise provided in Title 53C, Chapter 3, Deposit and Allocation
             125      of Revenue from Trust Lands, and Sections 51-7a-201 and 51-7a-202 .
             126          (2) The administration is an independent state agency and not a division of any other
             127      department.
             128          (3) (a) It is subject to the usual legislative and executive department controls except as
             129      provided in this Subsection (3).
             130          (b) (i) The director may make rules as approved by the board that allow the
             131      administration to classify a business proposal submitted to the administration as protected
             132      under Section 63G-2-305 , for as long as is necessary to evaluate the proposal.
             133          (ii) The administration shall return the proposal to the party who submitted the
             134      proposal, and incur no further duties under Title 63G, Chapter 2, Government Records Access
             135      and Management Act, if the administration determines not to proceed with the proposal.
             136          (iii) The administration shall classify the proposal pursuant to law if it decides to
             137      proceed with the proposal.
             138          (iv) Section 63G-2-403 does not apply during the review period.
             139          (c) The director shall make rules in compliance with Title 63G, Chapter 3, Utah
             140      Administrative Rulemaking Act, except that the administration is not subject to Subsections
             141      63G-3-301 (6) and (7) and Section 63G-3-601 , and the director, with the board's approval, may
             142      establish a procedure for the expedited approval of rules, based on written findings by the
             143      director showing:
             144          (i) the changes in business opportunities affecting the assets of the trust;
             145          (ii) the specific business opportunity arising out of those changes which may be lost
             146      without the rule or changes to the rule;
             147          (iii) the reasons the normal procedures under Section 63G-3-301 cannot be met without
             148      causing the loss of the specific opportunity;
             149          (iv) approval by at least five board members; and


             150          (v) that the director has filed a copy of the rule and a rule analysis, stating the specific
             151      reasons and justifications for its findings, with the Division of Administrative Rules and
             152      notified interested parties as provided in Subsection 63G-3-301 (10).
             153          (d) (i) The administration shall comply with Title 67, Chapter 19, Utah State Personnel
             154      Management Act, except as provided in this Subsection (3)(d).
             155          (ii) The board may approve, upon recommendation of the director, that exemption for
             156      specific positions under Subsections 67-19-12 (2) and 67-19-15 (1) is required in order to enable
             157      the administration to efficiently fulfill its responsibilities under the law. The director shall
             158      consult with the executive director of the Department of Human Resource Management prior
             159      to making such a recommendation.
             160          (iii) The positions of director, deputy director, associate director, assistant director,
             161      legal counsel appointed under Section 53C-1-305 , administrative assistant, and public affairs
             162      officer are exempt under Subsections 67-19-12 (2) and 67-19-15 (1).
             163          (iv) Salaries for exempted positions, except for the director, shall be set by the director,
             164      after consultation with the executive director of the Department of Human Resource
             165      Management, within ranges approved by the board. The board and director shall consider
             166      salaries for similar positions in private enterprise and other public employment when setting
             167      salary ranges.
             168          (v) The board may create an annual incentive and bonus plan for the director and other
             169      administration employees designated by the board, based upon the attainment of financial
             170      performance goals and other measurable criteria defined and budgeted in advance by the board.
             171          (e) The administration shall comply with Title 63G, Chapter 6, Utah Procurement
             172      Code, except where the board approves, upon recommendation of the director, exemption from
             173      the Utah Procurement Code, and simultaneous adoption of rules under Title 63G, Chapter 3,
             174      Utah Administrative Rulemaking Act, for procurement, which enable the administration to
             175      efficiently fulfill its responsibilities under the law.
             176          [(f) (i) The board and director shall review the exceptions under this Subsection (3) and
             177      make recommendations for any modification, if required, which the Legislature would be asked
             178      to consider during its annual general session.]
             179          [(ii) The board and director may include in their recommendations any other proposed
             180      exceptions from the usual executive and legislative controls the board and director consider


             181      necessary to accomplish the purpose of this title.]
             182          (f) S. [ The ] (i) Except as provided in Subsection (3)(f)(ii), the .S administration is not
             182a      subject to the fee agency requirements of Section
             183      63J-1-504 .
             183a      S. (ii) The following fees of the administration are subject to the requirements of Section
             183b      63J-1-504: application, assignment, amendment, affidavit for lost documents, name change,
             183c      reinstatement, grazing non use, extension of time, partial conveyance, patent reissue, collateral
             183d      assignment, electronic payment, and processing. .S
             184          (4) The administration is managed by a director of school and institutional trust lands
             185      appointed by a majority vote of the board of trustees with the consent of the governor.
             186          (5) (a) The board of trustees shall provide policies for the management of the
             187      administration and for the management of trust lands and assets.
             188          (b) The board shall provide policies for the ownership and control of Native American
             189      remains that are discovered or excavated on school and institutional trust lands in consultation
             190      with the Division of Indian Affairs and giving due consideration to Title 9, Chapter 9, Part 4,
             191      Native American Grave Protection and Repatriation Act. The director may make rules in
             192      accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, to implement
             193      policies provided by the board regarding Native American remains.
             194          (6) In connection with joint ventures [for the development of] and other transactions
             195      involving trust lands and minerals approved H. [ by the board ] .H under Sections 53C-1-303 and
             196      53C-2-401 , the administration H. , with board approval, .H may become a member of a limited
             196a      liability company under
             197      Title 48, Chapter 2c, Utah Revised Limited Liability Company Act, and is considered a person
             198      under Section 48-2c-102 .
             199          Section 3. Section 53C-1-202 is amended to read:
             200           53C-1-202. Board of trustees membership -- Nomination list -- Qualifications --
             201      Terms -- Replacement -- Chair -- Quorum.
             202          (1) There is established the School and Institutional Trust Lands Board of Trustees.
             203          (2) The board shall consist of seven members appointed on a nonpartisan basis by the
             204      governor with the consent of the Senate [for nonconsecutive six-year terms].
             205          [(3) (a) Of the initial appointments to the board, the governor shall appoint one
             206      member to serve a six-year term, one member to serve a five-year term, one member to serve a
             207      four-year term, one member to serve a three-year term, one member to serve a two-year term,
             208      and one member to serve a one-year term.]


             209          (3) (a) Except for the appointment made pursuant to Subsection (5), all appointments
             210      to the board shall be for a non-consecutive term of six years, or until a replacement has been
             211      appointed and confirmed pursuant to H. [ Subsection (2) ] this section .H .


             212          (b) [All subsequent appointments shall be for a term of six years, except if] If a
             213      vacancy occurs, the governor shall appoint a replacement, following the procedures set forth in
             214      Subsections (2), (4), (5), and (6), to fill the unexpired term.
             215          (c) Any member of the board who has served less than six years upon the expiration of
             216      that member's term is eligible for a consecutive reappointment.
             217          [(d) Neither the term provision in Subsection (2) nor Subsection (3) applies to an
             218      appointment made under Subsection (5).]
             219          (4) (a) The governor shall select six of the seven appointees to the board from a
             220      nomination list of at least two candidates for each position or vacancy submitted pursuant to
             221      Section 53C-1-203 .
             222          (b) The governor may request an additional nomination list of at least two candidates
             223      from the nominating committee if the initial list of candidates for a given position is
             224      unacceptable.
             225          (c) (i) If the governor fails to select an appointee within 60 days after receipt of the
             226      initial list or within 60 days after the receipt of an additional list, the nominating committee
             227      shall make an interim appointment by majority vote.
             228          (ii) The interim appointee shall serve until the matter is resolved by the committee and
             229      the governor or until replaced pursuant to this chapter.
             230          (5) (a) The governor may appoint one member without requiring a nomination list.
             231          (b) The member appointed under Subsection (5)(a) serves at the pleasure of the
             232      governor.
             233          (6) (a) Each board candidate shall possess outstanding professional qualifications
             234      pertinent to the purposes and activities of the trust.
             235          (b) The board shall represent the following areas of expertise:
             236          (i) nonrenewable resource management or development;
             237          (ii) renewable resource management or development; and
             238          (iii) real estate.
             239          (c) Other qualifications which are pertinent for membership to the board are expertise
             240      in any of the following areas:
             241          (i) business;
             242          (ii) investment banking;


             243          (iii) finance;
             244          (iv) trust administration;
             245          (v) asset management; and
             246          (vi) the practice of law in any of the areas referred to in Subsections (6)(b) and (6)(c)(i)
             247      through (v).
             248          (7) The board of trustees shall select a chair and vice chair from its membership.
             249          (8) Before assuming a position on the board, each member shall take an oath of office.
             250          (9) Four members of the board constitute a quorum for the transaction of business.
             251          (10) The governor or five board members may, for cause, remove a member of the
             252      board.
             253          [(11) An aggrieved party to a final action by the board may obtain judicial review of
             254      that action under Sections 63G-4-402 and 63G-4-403 .]
             255          Section 4. Section 53C-1-203 is amended to read:
             256           53C-1-203. Board of trustees nominating committee -- Composition --
             257      Responsibilities -- Per diem and expenses.
             258          (1) There is established an 11 member board of trustees nominating committee.
             259          (2) (a) The State Board of Education shall appoint five members to the nominating
             260      committee from different geographical areas of the state.
             261          (b) The governor shall appoint five members to the nominating committee as follows:
             262          (i) one individual from a nomination list of at least two names of individuals
             263      knowledgeable about institutional trust lands submitted by the University of Utah and Utah
             264      State University on an alternating basis every four years;
             265          (ii) one individual from a nomination list of at least two names submitted by the
             266      livestock industry;
             267          (iii) one individual from a nomination list of at least two names submitted by the Utah
             268      Petroleum Association;
             269          (iv) one individual from a nomination list of at least two names submitted by the Utah
             270      Mining Association; and
             271          (v) one individual from a nomination list of at least two names submitted by the
             272      executive director of the Department of Natural Resources after consultation with statewide
             273      wildlife and conservation organizations.


             274          (c) The president of the Utah Association of Counties shall designate the chair of the
             275      Public Lands Steering Committee, who must be an elected county commissioner or councilor,
             276      to serve as the eleventh member of the nominating committee.
             277          (3) (a) Except as required by Subsection (3)(b), each member shall serve a four-year
             278      term.
             279          (b) Notwithstanding the requirements of Subsection (3)(a), the state board and the
             280      governor shall, at the time of appointment or reappointment, adjust the length of terms to
             281      ensure that the terms of committee members are staggered so that approximately half of the
             282      committee is appointed every two years.
             283          (c) When a vacancy occurs in the membership for any reason, the replacement shall be
             284      appointed for the unexpired term.
             285          (4) The nominating committee shall select a chair and vice chair from its membership
             286      by majority vote.
             287          (5) (a) The nominating committee shall nominate at least two candidates for each
             288      position or vacancy which occurs on the board of trustees except for the governor's appointee
             289      under Subsection 53C-1-202 (5).
             290          (b) The nominations shall be by majority vote of the committee.
             291          (6) A member may not receive compensation or benefits for the member's service, but
             292      may receive per diem and travel expenses in accordance with:
             293          (a) Section 63A-3-106 ;
             294          (b) Section 63A-3-107 ; and
             295          (c) rules made by the Division of Finance pursuant to Sections 63A-3-106 and
             296      63A-3-107 .
             297          Section 5. Section 53C-1-204 is amended to read:
             298           53C-1-204. Policies established by board -- Director.
             299          (1) (a) The board shall establish policies for the management of the School and
             300      Institutional Trust Lands Administration.
             301          (b) The policies shall:
             302          (i) be consistent with the Utah Enabling Act, the Utah Constitution, and state law;
             303          (ii) reflect undivided loyalty to the beneficiaries consistent with fiduciary duties;
             304          (iii) require the return of not less than fair market value for the use, sale, or exchange


             305      of school and institutional trust assets;
             306          (iv) seek to optimize trust land revenues and increase the value of trust land holdings
             307      consistent with the balancing of short and long-term interests, so that long-term benefits are not
             308      lost in an effort to maximize short-term gains;
             309          (v) maintain the integrity of the trust and prevent the misapplication of its lands and its
             310      revenues; and
             311          (vi) have regard for and seek General Fund appropriation compensation for the general
             312      public's use of natural and cultural resources consistent with the duties of the administration as
             313      trustee for the beneficiaries.
             314          (2) The board shall ensure that the administration is managed according to law.
             315          (3) The board shall establish due process procedures governing adjudicative
             316      proceedings conducted by the board and the administration.
             317          (4) The board and the director shall recommend to the governor and the Legislature any
             318      necessary or desirable changes in statutes relating to the trust or their trust responsibilities.
             319          [(5) Policies adopted by the Board of State Lands and Forestry prior to the effective
             320      date of this act regarding school and institutional trust lands, shall remain in effect until
             321      amended or repealed by the board.]
             322          [(6)] (5) The board shall develop policies for the long-term benefit of the trust utilizing
             323      the broad discretion and power granted to it in this title.
             324          [(7)] (6) (a) (i) On at least three occasions during each calendar year and in cooperation
             325      with the director, the board shall consult with an advisory committee consisting of five county
             326      commissioners appointed by the Utah Association of Counties concerning the impact of trust
             327      land management practices on rural economies.
             328          (ii) The director shall notify the chair of the committee prior to any proposed board
             329      actions. At the request of the committee and prior to taking the proposed action, the board
             330      shall meet with the committee at the next scheduled board meeting.
             331          (b) The association shall appoint the commissioners from five different counties based
             332      on such factors as a county's total acreage of trust lands, the revenues generated from trust
             333      lands in the county, and the potential for economic development of trust lands within the
             334      county.
             335          (c) The advisory committee may request additional consultations it considers necessary


             336      or appropriate, to be scheduled within a reasonable time after receipt of the request by the
             337      administration.
             338          [(8)] (7) The board shall utilize the services of the attorney general as provided in
             339      Section 53C-1-305 .
             340          [(9)] (8) The board may:
             341          (a) (i) establish advisory committees to advise the board, director, or administration on
             342      policies affecting the management of the trust, and pay the compensation and travel expenses
             343      in accordance with rules adopted by the Division of Finance; and
             344          (ii) after conferring with the director, hire consultants to advise the board, director, or
             345      administration on issues affecting the management of the trust, and pay compensation to the
             346      consultants from money appropriated for that purpose;
             347          (b) with the consent of the state risk manager, authorize the director to manage lands or
             348      interests in lands held by any other public or private party, if:
             349          (i) all management costs are compensated by the parties;
             350          (ii) there is a commensurate return to the beneficiaries; and
             351          (iii) the additional responsibilities do not detract from the administration's
             352      responsibilities and its duty of undivided loyalty to the beneficiaries;
             353          (c) issue subpoenas or authorize a hearing officer to issue subpoenas, to compel the
             354      attendance of witnesses and the production of documents in adjudicative proceedings
             355      authorized by law and administer oaths in the performance of official duties; and
             356          (d) submit in writing to the director a request for responses, to be made within a
             357      reasonable time, to questions concerning policies and practices affecting the management of
             358      the trust.
             359          [(10)] (9) Board members shall be given access to all administration records and
             360      personnel consistent with law and as necessary to permit the board to accomplish its
             361      responsibilities to ensure that the administration is in full compliance with applicable policies
             362      and law.
             363          Section 6. Section 53C-1-302 is amended to read:
             364           53C-1-302. Management of the administration -- Trust responsibilities.
             365          (1) (a) The director has broad authority to:
             366          (i) manage the School and Institutional Trust Lands Administration in fulfillment of its


             367      purpose; [and]
             368          (ii) establish fees, procedures, and rules consistent with general policies prescribed by
             369      the board of trustees[.]; and
             370          (iii) acquire and dispose of lands and assets in accordance with law.
             371          (b) The procedures and rules shall:
             372          (i) be consistent with the Utah Enabling Act, the Utah Constitution, and policies of the
             373      board;
             374          (ii) reflect undivided loyalty to the beneficiaries consistent with the director's fiduciary
             375      duties and responsibilities;
             376          (iii) subject to Subsection (2), obtain the optimum values from use of trust lands and
             377      revenues for the trust beneficiaries, including the return of not less than fair market value for
             378      the use, sale, or exchange of school and institutional trust assets; and
             379          (iv) be broadly construed to grant the board, director, and administration full
             380      discretionary authority to manage, maintain, or dispose of trust assets in the manner they
             381      consider most favorable to the beneficiaries.
             382          (2) The director shall seek to optimize trust land revenues consistent with the balancing
             383      of short and long-term interests, so that long-term benefits are not lost in an effort to maximize
             384      short-term gains.
             385          (3) The director shall maintain the integrity of the trust and prevent, through prudent
             386      management, the misapplication of its lands and revenues.
             387          Section 7. Section 53C-1-303 is amended to read:
             388           53C-1-303. Responsibilities of director -- Budget review -- Legal counsel --
             389      Contract for services.
             390          (1) In carrying out the policies of the board of trustees and in establishing procedures
             391      and rules the director shall:
             392          (a) take an oath of office before assuming any duties as the director;
             393          (b) adopt procedures and rules necessary for the proper administration of matters
             394      entrusted to the director by state law and board policy;
             395          (c) submit to the board for its review and concurrence on any rules necessary for the
             396      proper management of matters entrusted to the administration;
             397          (d) faithfully manage the administration under the policies established by the board;


             398          (e) submit to the board [and] for public inspection [by October 1 of each year,] an
             399      annual management budget and financial plan for operations of the administration and, after
             400      approval by the board, submit the budget to the governor;
             401          (f) direct and control the budget expenditures as finally authorized and appropriated;
             402          (g) establish job descriptions and employ, within the limitation of the budget, staff
             403      necessary to accomplish the purposes of the office subject to Section 53C-1-201 ;
             404          (h) establish, in accordance with generally accepted principles of fund accounting, a
             405      system to identify and account for the assets and vested interests of each beneficiary;
             406          (i) maintain appropriate records of trust activities to enable auditors appointed by
             407      appropriate state agencies or the board to conduct periodic audits of trust activities;
             408          (j) provide that all leases, contracts, and agreements be submitted to legal counsel for
             409      review of compliance with applicable law and fiduciary duties prior to execution and utilize the
             410      services of the attorney general as provided in Section 53C-1-305 ;
             411          (k) keep the board, beneficiaries, governor, Legislature, and the public informed about
             412      the work of the director and administration by reporting to the board in a public meeting at
             413      least once during each calendar quarter; and
             414          (l) respond in writing within a reasonable time to a request by the board for responses
             415      to questions on policies and practices affecting the management of the trust.
             416          [(2) Procedures and rules adopted by the Division of State Lands and Forestry as they
             417      relate to trust lands prior to the effective date of this act remain in effect until amended or
             418      repealed by the director.]
             419          [(3)] (2) The administration shall be the named party in substitution of the Division of
             420      State Lands and Forestry or its predecessor agencies, with respect to all documents affecting
             421      trust lands from the effective date of this act.
             422          [(4)] (3) The director may:
             423          (a) with the consent of the state risk manager and the board, manage lands or interests
             424      in lands held by any other public or private party pursuant to policies established by the board
             425      and may make rules to implement these board policies;
             426          (b) sue or be sued as the director of school and institutional trust lands;
             427          (c) contract with other public agencies for personnel management services;
             428          (d) contract with any public or private entity to make improvements to or upon trust


             429      lands and to carry out any of the responsibilities of the office, so long as the contract requires
             430      strict adherence to trust management principles, applicable law and regulation, and is subject to
             431      immediate suspension or termination for cause; and
             432          (e) with the approval of the board enter into joint ventures and other business
             433      arrangements consistent with the purposes of the trust.
             434          [(5)] (4) Any application or bid required for the lease, permitting, or sale of lands in a
             435      competitive process or any request for review pursuant to Section 53C-1-304 shall be
             436      considered filed or made on the date received by the appropriate administrative office, whether
             437      transmitted by United States mail or in any other manner.
             438          Section 8. Section 53C-1-304 is amended to read:
             439           53C-1-304. Rules to ensure procedural due process -- Board review of director
             440      action -- Judicial review.
             441          (1) The board shall make rules to ensure procedural due process in the resolution of
             442      complaints concerning actions by the board, director, [and] or the administration.
             443          (2) (a) [An] Except as provided in Subsection (2)(b), an aggrieved party to a final
             444      action by the director or the administration may petition the board for administrative review of
             445      the decision.
             446          (b) Final actions by the director or administration to lease, sell, or exchange specific
             447      real property or other trust assets are not subject to administrative review.
             448          (3) (a) The board may appoint a qualified hearing examiner for purposes of taking
             449      evidence and making recommendations for board action.
             450          (b) The board shall consider the recommendations of the examiner in making
             451      decisions.
             452          (4) (a) The board shall uphold the decision of the director or the administration unless
             453      it finds, by a preponderance of the evidence, that the decision violated applicable law, policy,
             454      or rules.
             455          (b) The board shall base its final actions on findings and conclusions and shall inform
             456      the aggrieved party of its right to judicial review.
             457          (5) An aggrieved party to a final action by the board may obtain judicial review of that
             458      action under Sections 63G-4-402 and 63G-4-403 .
             459          Section 9. Section 53C-2-102 is amended to read:


             460           53C-2-102. Information to be furnished by provider -- Director to adopt
             461      confidential information rules.
             462          (1) As used in this section, "provider" means a prospective applicant, applicant,
             463      partner, or lessee.
             464          (2) (a) The administration may require a provider to furnish any information necessary
             465      to carry out the duties of this title, including financial information, geological and mine maps,
             466      well logs, and assays.
             467          (b) Any information submitted to the administration which the provider and the
             468      director agree in writing is of a proprietary nature shall be kept confidential and may not be
             469      released without written permission from the provider.
             470          (3) The director shall adopt rules under which the administration may retain, without
             471      disclosure to third parties, information including that received under Subsection (2) which the
             472      provider and the director agree is of a protected or proprietary nature, unless the information is
             473      required by federal or state law to be of a nonproprietary nature.
             474          Section 10. Section 53C-2-103 is amended to read:
             475           53C-2-103. Director's authority to examine records and inspect property.
             476          [(1)] For the purpose of determining compliance with any rule or any performance or
             477      payment obligation under a lease, permit, or contract, the director may, at reasonable times,
             478      places, and intervals:
             479          [(a)] (1) require that the lessee, permittee, or contractor provide any pertinent books,
             480      records, or other documents of the lessee, permittee, or contractor; [or] and
             481          [(b)] (2) inspect the property acquired, used, or developed under the lease, permit, or
             482      contract after reasonable notice or as provided in the lease, permit, or contract.
             483          [(2) Nothing in this section shall be construed to limit or invalidate audits conducted by
             484      the Division of State Lands and Forestry prior to the effective date of this act.]
             485          Section 11. Section 53C-2-104 is amended to read:
             486           53C-2-104. Preexisting federal mining claims on trust lands -- Filing of notice --
             487      Conclusive evidence of abandonment.
             488          (1) The Legislature recognizes the importance of having an effective state filing system
             489      for unpatented federal mining claims located on trust lands prior to the state's acquisition of
             490      title that would allow the state to determine the extent of preexisting unpatented mining claims


             491      on those lands and eliminate the cloud on the state's title created by abandoned unpatented
             492      mining claims, while preserving the rights of owners of valid preexisting unpatented mining
             493      claims located on those lands.
             494          (2) Annually on or before December 31, each owner of an unpatented lode mining
             495      claim, placer mining claim, mill site claim, or tunnel site claim located pursuant to the general
             496      mining laws of the United States on lands now owned of record by the state in trust for the
             497      common schools or other beneficiary institutions shall file with the administration a notice as
             498      prescribed by Subsection (3).
             499          (3) (a) The initial notice required by Subsection (2) that is filed by a claimant shall
             500      include:
             501          (i) a statement of the owner's intention to hold or abandon the claim;
             502          (ii) a brief description of the type and nature of the claim;
             503          (iii) the date the claim was located, and the date the claim was filed of record in county
             504      and federal records;
             505          (iv) a copy of the official record of the notice of location or certificate of location of the
             506      claim; and
             507          (v) a legal description of the claim, by legal subdivision or metes and bounds
             508      description, sufficient to locate the claimed lands on the ground.
             509          (b) Each subsequent notice required by Subsection (2) shall include:
             510          (i) the name of the claim; and
             511          (ii) a statement of the owner's intention to hold or abandon the claim.
             512          (4) (a) The administration shall note the existence of all claims for which notices have
             513      been filed in the central index of all trust lands required under Section 53C-2-101 .
             514          (b) The administration may impose a reasonable filing fee as a condition for accepting
             515      the required notices, not to exceed [$50] $100 per claim, to defray the administrative costs of
             516      maintaining an index of claims.
             517          (5) (a) Failure to file the notice required by this section constitutes an abandonment of
             518      the claim by the owner.
             519          (b) Filing of the required notice by one owner of a claim in which multiple persons
             520      own or claim interests fulfills the filing requirements of this section.
             521          (6) Filing of a notice under this section does not make valid a claim which is otherwise


             522      invalid under other applicable law.
             523          (7) Acquisition of rights to extract minerals underlying trust lands is governed by Part
             524      4 [of this chapter], Mineral Leases.
             525          (8) This section does not waive any fees, filings, or other requirements imposed by
             526      federal law.
             527          Section 12. Section 53C-2-105 is amended to read:
             528           53C-2-105. Withdrawal of trust lands from leasing or other dispositions.
             529          [(1)] The director may at any time withdraw trust lands from:
             530          (1) applications for leasing, permitting, sale, or other disposition of any nature upon a
             531      finding that the interests of the trust would best be served through withdrawal[.]; or
             532          (2) surface occupancy or use upon a finding that continued use would cause resource
             533      degradation.
             534          [(2) Any withdrawal which is in force on May 5, 2003, shall continue in force until
             535      revoked by the director.]
             536          Section 13. Section 53C-2-301 is amended to read:
             537           53C-2-301. Trespassing on trust lands -- Penalties.
             538          (1) A person is liable for the civil damages prescribed in Subsection (2) and, unless a
             539      greater penalty is prescribed in another part of the law, is guilty of a class B misdemeanor if the
             540      person, without written authorization from the director:
             541          (a) removes, extracts, uses, consumes, or destroys any mineral resource, gravel, sand,
             542      soil, vegetation, water resource, or improvement on trust lands;
             543          (b) grazes livestock on trust lands;
             544          (c) uses, occupies, or constructs improvements or structures on trust lands;
             545          (d) uses or occupies trust lands for more than 30 days after the cancellation or
             546      expiration of written authorization;
             547          (e) knowingly and willfully uses trust lands for commercial gain;
             548          (f) appropriates, alters, injures, or destroys any improvement or any historical,
             549      prehistorical, archaeological, or paleontological resource on trust lands;
             550          (g) trespasses upon, uses, commits waste, dumps refuse, or occupies trust land;
             551          (h) interferes with the activities of an employee or agent of the administration on trust
             552      lands; or


             553          (i) interferes with activities of a lessee or other person which have been authorized by
             554      the administration.
             555          (2) A person who commits any act described in Subsection (1) is liable for damages in
             556      the amount of whichever of the following is greatest:
             557          (a) three times the value at the point of sale of the mineral or other resource removed,
             558      destroyed, or extracted;
             559          (b) three times the amount of damage committed;
             560          (c) three times the cost to cure the damage;
             561          [(c)] (d) three times the value of any losses suffered as a result of interference with
             562      authorized activities; or
             563          [(d)] (e) three times the consideration which would have been charged by the director
             564      for use of the land during the period of trespass[, whichever is greater].
             565          (3) In addition to the damages described in Subsection (2), a person found guilty of a
             566      criminal act under Subsection (1) is subject to the penalties provided in Title 76, Chapter 3,
             567      Punishments.
             568          (4) The director shall deposit money collected under this section in the fund in which
             569      like revenues from that land would be deposited.
             570          (5) The director may award a portion of any of the damages collected under this section
             571      in excess of actual damages to the general fund of the county in which the trespass occurred as
             572      a reward for county assistance in the apprehension and prosecution of the trespassing party.
             573          Section 14. Section 53C-2-404 is amended to read:
             574           53C-2-404. Applicants for mineral leases -- Qualifications.
             575          Applicants for mineral leases must, throughout the application period and throughout
             576      the duration of the lease, be in full compliance with all of the laws of the state as to
             577      qualification to do business within the state and must not be in default under those laws or the
             578      rules of the administration.
             579          Section 15. Section 53C-2-407 is amended to read:
             580           53C-2-407. Mineral lease application procedures.
             581          (1) Lands that are not encumbered by a current mineral lease for the same resource, a
             582      withdrawal order, or other rule of the director prohibiting the lease of the lands, may be offered
             583      for lease as provided in this section or may, with board approval, be committed to another


             584      contractual arrangement under Subsection 53C-2-401 (1)(d).
             585          (2) (a) A notice of the land available for leasing shall be posted in the administration's
             586      office.
             587          (b) The notice shall:
             588          (i) describe the land;
             589          (ii) indicate what mineral interest in each tract is available for leasing; and
             590          (iii) state the last date, which shall be no less than 15 days after the notice is posted, on
             591      which bids may be received.
             592          (3) (a) Applications for the lease of lands filed before the closing date stated in the
             593      notice shall be considered to be filed simultaneously.
             594          (b) The applications shall be:
             595          (i) submitted in sealed envelopes; and
             596          (ii) opened in the administration's office at [10:00] 10 a.m. of the first business day
             597      following the last day on which bids may be received.
             598          (c) Leases shall be awarded to the highest responsible, qualified bidder, in terms of the
             599      bonus paid in addition to the first year's rental, who submitted a bid in the manner required.
             600          (d) In cases of identical bids of successful bidders:
             601          (i) the right to lease shall be determined by drawing or oral auction;
             602          (ii) the determination of whether to award the lease by drawing or oral auction shall be
             603      made at the sole discretion of the director; and
             604          (iii) the drawing or oral auction shall be held in public at the administration's office in a
             605      manner calculated to optimize the return to the trust land beneficiary.
             606          (4) (a) At the discretion of the director, mineral leases may be offered at an oral public
             607      auction.
             608          (b) The director may set a minimum bid for a public auction.
             609          (5) The director may award a mineral lease without following the competitive bidding
             610      procedures specified in Subsections (3) and (4) or conducting an oral public auction, if the
             611      mineral lessee waives or relinquishes to the trust a prior mining claim, mineral lease, or other
             612      right which in the opinion of the director might otherwise:
             613          (a) defeat or encumber the selection of newly acquired land, either for indemnity or
             614      other purposes, or the acquisition by the trust of any land; or


             615          (b) cloud the title to any of those lands.
             616          (6) Following the awarding of a lease to a successful bidder, deposits, except filing
             617      fees, made by unsuccessful bidders shall be returned to those bidders.
             618          (7) (a) [Lands] Subject to Section 53C-2-104 , lands acquired through exchange or
             619      indemnity selection from the federal government shall be subject to the vested rights of
             620      unpatented mining claimants under the Mining Law of 1872, as amended, and other federal
             621      vested rights, both surface and minerals.
             622          (b) Subsection (7)(a) does not prevent the director from negotiating the
             623      accommodation of vested rights through any method acceptable to the parties.
             624          (8) The director may lease lands in the order in which applications are filed if:
             625          (a) the director offers trust lands for lease for mineral purposes according to the
             626      procedures in Subsections (3) through (6) and the lands are not leased; or
             627          (b) a period of time of not less than one year but less than three years has elapsed
             628      following:
             629          (i) a revocation of a withdrawal; or
             630          (ii) the date an existing mineral lease is canceled, relinquished, surrendered, or
             631      terminated.
             632          Section 16. Section 53C-3-101 is amended to read:
             633           53C-3-101. Land Grant Management Fund -- Contents -- Use of money.
             634          (1) (a) There is created an enterprise fund known as the Land Grant Management Fund.
             635          (b) This fund shall consist of:
             636          (i) all revenues derived from trust lands except revenues from the sale of those lands;
             637          (ii) all interest earned by the fund;
             638          (iii) all revenues deposited in the fund in accordance with Subsection 41-22-19 (3); and
             639          (iv) all revenues obtained from other activities of the director or administration.
             640          (2) The director may expend money:
             641          (a) from the Land Grant Management Fund in accordance with the approved budget for
             642      the support of director and administration activities; and
             643          (b) deposited in the fund in accordance with Subsection 41-22-19 (3) as necessary to
             644      fulfill the purposes of Subsection 41-22-19 (3)(b).
             645          (3) Except for revenues deposited under Subsection (1)(b)(iii), any amount in excess of


             646      that required to fund the budget shall be distributed to the various trust beneficiaries as of June
             647      30 of each calendar year, and at other times determined by the director, in shares equal to the
             648      portion of total Land Grant Management Fund revenues obtained from each beneficiary's land
             649      during the accounting period.
             650          (4) Money from the lease or rental of school trust lands or from the use, sale, or lease
             651      of resources on school trust lands, all sums paid for fees, [including grazing fees,] and all
             652      forfeitures or penalties received in connection with those transactions shall be deposited in the
             653      Permanent State School Fund.
             654          (5) Money from the lease or rental of lands acquired by the state for the benefit of an
             655      institution named in Sections 7, 8, and 12 of the Utah Enabling Act, or from the use, sale, or
             656      lease of renewable or nonrenewable resources on those lands, and all forfeitures or penalties
             657      received in connection with those transactions, shall be distributed to the institution.
             658          (6) Except for revenues deposited under Subsection (1)(b)(iii), any remaining money,
             659      including interest earned on the account, shall be distributed in pro rata shares to the various
             660      beneficiaries.
             661          Section 17. Section 53C-3-203 is amended to read:
             662           53C-3-203. Land Exchange Distribution Account.
             663          (1) As used in this section, "account" means the Land Exchange Distribution Account
             664      created in Subsection (2)(a).
             665          (2) (a) There is created within the General Fund a restricted account known as the Land
             666      Exchange Distribution Account.
             667          (b) The account shall consist of revenue deposited in the account as required by
             668      Section 53C-3-202 .
             669          (3) (a) The state treasurer shall invest money in the account according to Title 51,
             670      Chapter 7, State Money Management Act.
             671          (b) The Division of Finance shall deposit interest or other earnings derived from
             672      investment of account money into the General Fund.
             673          (4) The Legislature shall annually appropriate from the account in the following order:
             674          (a) $1,000,000 to the Constitutional Defense Restricted Account, created in 63C-4-103 ,
             675      to be used in accordance with Subsection 63C-4-103 (6) for:
             676          (i) fiscal year 2010-11;


             677          (ii) fiscal year 2011-12; and
             678          (iii) fiscal year 2012-13; and
             679          (b) from the deposits to the account remaining after the appropriation in Subsection
             680      (4)(a), the following amounts:
             681          (i) 55% of the deposits to counties in amounts proportionate to the amounts of mineral
             682      revenue generated from the acquired land, exchanged land, acquired mineral interests, or
             683      exchanged mineral interests located in each county, to be used to mitigate the impacts caused
             684      by mineral development;
             685          (ii) 25% of the deposits to counties in amounts proportionate to the total surface and
             686      mineral acreage within each county that was conveyed to the United States under the agreement
             687      or an exchange, to be used to mitigate the loss of mineral development opportunities resulting
             688      from the agreement or exchange;
             689          (iii) 1.68% of the deposits to the State Board of Education, to be used for education
             690      research and experimentation in the use of staff and facilities designed to improve the quality
             691      of education in Utah;
             692          (iv) 1.66% of the deposits to the Geological Survey, to be used for natural resources
             693      development in the state;
             694          (v) 1.66% of the deposits to the Water Research Laboratory at Utah State University, to
             695      be used for water development in the state; and
             696          (vi) 7.5% of the deposits to the Constitutional Defense Restricted Account created in
             697      Section 63C-4-103 .
             698          (5) Beginning with fiscal year 2009-10, the Legislature shall annually appropriate 1%
             699      of the deposits remaining in the account after the appropriation is made in accordance with
             700      Subsection (4)(a) to the Geological Survey, to be used for test wells, other hydrologic studies,
             701      and air quality monitoring in the West Desert.
             702          (6) (a) Beginning with fiscal year 2009-10, the Legislature shall annually appropriate
             703      6.5% of the deposits remaining in the account after the appropriation is made in Subsection
             704      (4)(a) to the Permanent Community Impact Fund created in Section 9-4-303 , to be used for
             705      grants to political subdivisions of the state to mitigate the impacts resulting from the
             706      development or use of school and institutional trust lands.
             707          (b) The S. administration shall make recommendations to the .S Permanent
             707a      Community Impact Fund Board S. [ shall consult with the ] .S


             708      S. [ administration before ] for its consideration when .S awarding the grants described in
             708a      Subsection (6)(a).
             709          Section 18. Section 53C-4-101 is amended to read:
             710           53C-4-101. Criteria for sale, lease, exchange, or other disposition of trust lands.
             711          (1) (a) The director shall establish criteria by rule for the sale, exchange, lease, or other
             712      disposition or conveyance of trust lands, including procedures for determining fair market
             713      value of those lands.
             714          (b) (i) Nothing in this title or in the administration's rules and procedures shall be
             715      considered to require the director or the administration to execute any transaction for the
             716      disposition of trust lands on terms that the director determines by a written finding to be
             717      unfavorable to the beneficiaries.
             718          (ii) The director shall send a copy of the written finding to each board member for
             719      review and comment.
             720          [(2) The governor pursuant to P.L. 103-93 and in collaboration with the board shall
             721      implement the inholdings land exchange authorized in that public law.]
             722          [(3)] (2) The governor, with the consent of the board, may participate in [similar]
             723      efforts and initiatives related to school and institutional trust lands inholdings.
             724          Section 19. Section 53C-4-102 is amended to read:
             725           53C-4-102. Sale of trust lands -- Fair market value -- Determination of sale --
             726      Advertising proposed sales -- Sale procedures -- Defaults.
             727          (1) Trust lands may not be sold for less than the fair market value.
             728          (2) (a) The director shall determine whether disposal or retention of all or a portion of a
             729      property interest in trust lands is in the best interest of the trust.
             730          (b) When it is determined that the disposal of an interest in trust lands is in the best
             731      interest of the applicable trust, the transaction shall be accomplished in an orderly and timely
             732      manner.
             733          (3) The director shall advertise any proposed sale, lease, or exchange of an interest in
             734      trust lands in a reasonable manner consistent with the director's fiduciary responsibilities.
             735          (4) (a) Any tract of trust land may be subdivided and sold, leased, or exchanged in
             736      accordance with a plan, contract, or other action designating the land to be subdivided that is
             737      approved by the director.
             738          (b) The director may survey the tract and direct its subdivision.


             739          (c) A plat of the survey shall be filed with the county recorder of the county in which
             740      the land is located and with the administration.
             741          (5) Sale conditions, including qualification of prospective purchasers, shall be in
             742      accordance with accepted mortgage lending and real estate practices.
             743          (6) Upon the sale of land, the director shall issue to the purchaser a certificate of sale
             744      which describes the land purchased and states the amount paid, the amount due, and the time
             745      when the principal and interest will become due.
             746          (7) Upon payment in full of principal and interest and the surrender of the original
             747      certificate of sale for any tract of land sold, [or] payment in full of any amounts required to be
             748      paid for the partial release of property, or acceptance of appropriate conveyance documents in
             749      satisfaction of a land exchange, the governor, or the governor's designee, shall issue a patent to
             750      the purchaser, heir, assignee, successor in interest, or other grantee as determined by the
             751      director.
             752          (8) (a) If a purchaser of trust lands defaults in the payment of any installment of
             753      principal or interest due under the terms of the contract of sale, the director shall notify the
             754      purchaser that if the default is not corrected within 30 days after issuance of the notice the
             755      director shall proceed with any remedy which the administration may pursue under law or the
             756      contract of sale.
             757          (b) The notice shall be sent by registered or certified mail to the purchaser at the latest
             758      address as shown by the records of the administration.
             759          (c) If the default is not corrected by compliance with the requirements of the notice of
             760      default within the time provided by the notice, the director may pursue any available remedy
             761      under the contract of sale, including forfeiture.
             762          (d) If forfeited lands are sold again to the same purchaser, the sale may be made by a
             763      new and independent contract without regard to the forfeited agreement.
             764          Section 20. Section 53C-4-201 is amended to read:
             765           53C-4-201. Surface leases and user permits -- Procedures for issuing leases and
             766      user permits.
             767          (1) The director may issue surface leases and user permits of trust lands for any term
             768      consistent with sound and prudent real estate practices.
             769          (2) This section does not apply to leases for grazing, oil, gas, and hydrocarbons, or


             770      other minerals.
             771          (3) (a) (i) Surface leases or user permits may be entered into by negotiation, public
             772      auction, or other public competitive bidding process as determined by rules of the director.
             773          [(ii) Any lease or permit which includes an option to purchase at a future date must be
             774      entered into through a public competitive process.]
             775          (ii) The director may lease trust lands for development and subsequent sale of all or
             776      portions of such lands to third parties for no less than fair market value.
             777          (b) Requests for proposals (RFP) on trust lands may be offered by the director after
             778      public notice.
             779          Section 21. Section 53C-4-301 is amended to read:
             780           53C-4-301. Exchange of trust lands -- Based on equal value -- Lands encumbered
             781      by a lease.
             782          (1) (a) In accordance with rules of the director, trust lands or other trust assets may be
             783      exchanged for other land or other assets.
             784          (b) The director[, upon authorization from the governor,] shall [execute and] deliver the
             785      necessary patents to other proprietors and receive proper deeds for the lands exchanged.
             786          [(c) The director may not make an exchange until a deed or patent for the land received
             787      in exchange has been issued by the proprietors.]
             788          (c) The director shall issue, deliver, and accept conveyance documents in land
             789      exchanges in accordance with accepted real estate closing practices.
             790          (2) (a) If trust lands are encumbered by an existing lease, the director may, upon
             791      approval of an exchange, and with the consent of the lessee, terminate the existing lease and
             792      issue a lease of the same type on lands [of comparable acreage or value] which may be
             793      acquired in the same exchange in which the leased lands are used as base.
             794          (b) The state shall honor all vested rights upon acceptance of exchanged lands.
             795          Section 22. Section 63J-1-504 is amended to read:
             796           63J-1-504. Fees -- Adoption, procedure, and approval -- Establishing and
             797      assessing fees without legislative approval.
             798          (1) As used in this section:
             799          (a) (i) "Agency" means each department, commission, board, council, agency,
             800      institution, officer, corporation, fund, division, office, committee, authority, laboratory, library,


             801      unit, bureau, panel, or other administrative unit of the state.
             802          (ii) "Agency" does not mean the Legislature or its committees.
             803          (b) "Fee agency" means any agency that is authorized to establish fees.
             804          (c) "Fee schedule" means the complete list of fees charged by a fee agency and the
             805      amount of those fees.
             806          (2) Each fee agency shall adopt a schedule of fees assessed for services provided by the
             807      fee agency that are:
             808          (a) reasonable, fair, and reflect the cost of services provided; and
             809          (b) established according to a cost formula determined by the director of the Governor's
             810      Office of Planning and Budget and the director of the Division of Finance in conjunction with
             811      the agency seeking to establish the fee.
             812          (3) Except as provided in Subsection (6), a fee agency may not:
             813          (a) set fees by rule; or
             814          (b) create, change, or collect any fee unless the fee has been established according to
             815      the procedures and requirements of this section.
             816          (4) Each fee agency that is proposing a new fee or proposing to change a fee shall:
             817          (a) present each proposed fee at a public hearing, subject to the requirements of Title
             818      52, Chapter 4, Open and Public Meetings Act;
             819          (b) increase, decrease, or affirm each proposed fee based on the results of the public
             820      hearing;
             821          (c) except as provided in Subsection (6), submit the fee schedule to the Legislature as
             822      part of the agency's annual appropriations request; and
             823          (d) where necessary, modify the fee schedule to implement the Legislature's actions.
             824          (5) (a) Each fee agency shall submit its fee schedule or special assessment amount to
             825      the Legislature for its approval on an annual basis.
             826          (b) The Legislature may approve, increase or decrease and approve, or reject any fee
             827      submitted to it by a fee agency.
             828          (6) After conducting the public hearing required by this section, a fee agency may
             829      establish and assess fees without first obtaining legislative approval if:
             830          (a) (i) the Legislature creates a new program that is to be funded by fees to be set by the
             831      Legislature;


             832          (ii) the new program's effective date is before the Legislature's next annual general
             833      session; and
             834          (iii) the fee agency submits the fee schedule for the new program to the Legislature for
             835      its approval at a special session, if allowed in the governor's call, or at the next annual general
             836      session of the Legislature, whichever is sooner;
             837          (b) the Division of Occupational and Professional licensing makes a special
             838      assessment against qualified beneficiaries under the Residence Lien Restriction and Lien
             839      Recovery Fund Act as provided in Subsection 38-11-206 (1); or
             840          (c) (i) the fee agency proposes to increase or decrease an existing fee for the purpose of
             841      adding or removing a transactional fee that is charged or assessed by a non-governmental third
             842      party but is included as part of the fee charged by the fee agency;
             843          (ii) the amount of the increase or decrease in the fee is equal to the amount of the
             844      transactional fee charged or assessed by the non-governmental third party; and
             845          (iii) the increased or decreased fee is submitted to the Legislature for its approval at a
             846      special session, if allowed in the governor's call, or at the next annual session of the
             847      Legislature, whichever is sooner.
             848          (7) (a) Each fee agency that wishes to change any fee shall submit to the governor as
             849      part of the agency's annual appropriation request a list that identifies:
             850          (i) the title or purpose of the fee;
             851          (ii) the present amount of the fee;
             852          (iii) the proposed new amount of the fee;
             853          (iv) the percent that the fee will have increased if the Legislature approves the higher
             854      fee;
             855          (v) the estimated total annual revenue change that will result from the change in the
             856      fee;
             857          (vi) the account or fund into which the fee will be deposited; and
             858          (vii) the reason for the change in the fee.
             859          (b) (i) The governor may review and approve, modify and approve, or reject the fee
             860      increases.
             861          (ii) The governor shall transmit the list required by Subsection (7)(a), with any
             862      modifications, to the Legislative Fiscal Analyst with the governor's budget recommendations.


             863          (c) Bills approving any fee change shall be filed before the beginning of the
             864      Legislature's annual general session, if possible.
             865          (8) S. [ The ] (a) Except as provided in Subsection (8)(b), the .S School and
             865a      Institutional Trust Lands Administration, established in 53C-1-201 ,
             866      is exempt from the requirements of this section.
             866a      S. (b) The following fees of the School and Institutional Trust Lands Administration are
             866b      subject to the requirements of this section: application, assignment, amendment, affidavit for
             866c      lost documents, name change, reinstatement, grazing non use, extension of time, partial
             866d      conveyance, patent reissue, collateral assignment, electronic payment, and processing. .S
             867          Section 23. Section 63L-2-201 is amended to read:
             868           63L-2-201. Federal government acquisition of real property in the state.
             869          (1) As used in this section:
             870          (a) "Agency" is defined in Section 63G-10-102 .
             871          (b) "Agency" includes:
             872          (i) the School and Institutional Trust Lands Administration created in Section
             873      53C-1-201 ; and
             874          (ii) the School and Institutional Trust Lands Board of Trustees created in Section
             875      53C-1-202 .
             876          (2) (a) Before legally binding the state by executing an agreement to sell or transfer to
             877      the United States government 10,000 or more acres of any state lands or school and
             878      institutional trust lands, an agency shall submit the agreement or proposal:
             879          (i) to the Legislature for its approval or rejection; or
             880          (ii) in the interim, to the Legislative Management Committee for review of the
             881      agreement or proposal.
             882          (b) The Legislative Management Committee may:
             883          (i) recommend that the agency execute the agreement or proposal;
             884          (ii) recommend that the agency reject the agreement or proposal; or
             885          (iii) recommend to the governor that the governor call a special session of the
             886      Legislature to review and approve or reject the agreement or proposal.
             887          (3) Before legally binding the state by executing an agreement to sell or transfer to the
             888      United States government less than 10,000 acres of any state lands or school and institutional
             889      trust lands, an agency shall [report to] notify the Natural Resources, Agriculture, and
             890      Environment Interim Committee.
             891          (4) Notwithstanding Subsections (2) and (3), the Legislature approves all conveyances
             892      of school trust lands to the United States government made for the purpose of completing the
             893      Red Cliffs Desert Reserve in Washington County.


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