H.B. 51 Enrolled

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 Cosponsors:
7 Johnny Anderson
8 Patrice M. Arent
9 Jim Bird
10 Joel K. Briscoe
11 Melvin R. Brown
12 David G. Butterfield
13 Rebecca Chavez-Houck
14 LaVar Christensen
15 David Clark
16 Brad L. Dee
17 Jack R. Draxler
18 Rebecca P. Edwards
19 Julie Fisher
20 Gage Froerer
21 Brad J. Galvez
22 Francis D. Gibson
23 Keith GroverStephen G. Handy
Lynn N. Hemingway
Neal B. Hendrickson
Christopher N. Herrod
Eric K. Hutchings
Don L. Ipson
Ken Ivory
Brian S. King
Todd E. Kiser
Bradley G. Last
David Litvack
Kay L. McIff
Ronda Rudd Menlove
Michael T. Morley
Carol Spackman Moss
Jim Nielson
Michael E. Noel
Curtis OdaPatrick Painter
Lee B. Perry
Dixon M. Pitcher
Marie H. Poulson
Paul Ray
Douglas Sagers
Stephen E. Sandstrom
Dean Sanpei
Kenneth W. Sumsion
Christine F. Watkins
R. Curt Webb
Mark A. Wheatley
Ryan D. Wilcox
Larry B. Wiley
Brad R. Wilson
Carl Wimmer
Bill Wright 24
25 LONG TITLE
26 General Description:
27 This bill modifies provisions of the School and Institutional Trust Lands Management
28 Act.

29 Highlighted Provisions:
30 This bill:
31 . deletes obsolete language;
32 . exempts the School and Institutional Trust Lands Administration (administration)
33 from the petition process provisions of the Utah Administrative Rulemaking Act;
34 . exempts the Administration from fee agency provisions for certain fees in the
35 Budgetary Procedures Act;
36 . makes modifications to School and Institutional Trust Lands Board of Trustees
37 (board) terms and replacement appointments;
38 . specifically grants the director authority to acquire and dispose of lands and assets;
39 . modifies the judicial review process of the board and administration;
40 . allows the administration to request financial information from certain providers;
41 . modifies the mining claim administration fee;
42 . authorizes the director to withdraw lands from surface occupancy or use when there
43 is a potential for resource degradation;
44 . modifies the requirements that a person who degrades trust lands must meet in
45 restoring the land;
46 . requires the Permanent Community Impact Fund Board to consider
47 recommendations from the administration when awarding certain grants;
48 . allows a lease or permit which includes an option to purchase at a future date to be
49 negotiated in a method other than through a public competitive process; and
50 . makes technical changes.
51 Money Appropriated in this Bill:
52 None
53 Other Special Clauses:
54 None
55 Utah Code Sections Affected:
56 AMENDS:

57 9-4-307, as last amended by Laws of Utah 2008, Chapter 382
58 53C-1-201, as last amended by Laws of Utah 2010, Chapter 218
59 53C-1-202, as last amended by Laws of Utah 2008, Chapter 382
60 53C-1-203, as last amended by Laws of Utah 2010, Chapter 286
61 53C-1-204, as last amended by Laws of Utah 2000, Chapter 237
62 53C-1-302, as last amended by Laws of Utah 1997, Chapter 126
63 53C-1-303, as last amended by Laws of Utah 2004, Chapter 63
64 53C-1-304, as last amended by Laws of Utah 2008, Chapter 382
65 53C-2-102, as last amended by Laws of Utah 2005, Chapter 67
66 53C-2-103, as enacted by Laws of Utah 1994, Chapter 294
67 53C-2-104, as last amended by Laws of Utah 2003, Chapter 192
68 53C-2-105, as enacted by Laws of Utah 2003, Chapter 192
69 53C-2-301, as last amended by Laws of Utah 1997, Chapter 72
70 53C-2-404, as enacted by Laws of Utah 1994, Chapter 294
71 53C-2-407, as last amended by Laws of Utah 2005, Chapter 39
72 53C-3-101, as last amended by Laws of Utah 2004, Chapter 349
73 53C-3-203, as last amended by Laws of Utah 2010, Chapters 79 and 262
74 53C-4-101, as last amended by Laws of Utah 1997, Chapter 126
75 53C-4-102, as last amended by Laws of Utah 2004, Chapter 40
76 53C-4-201, as last amended by Laws of Utah 1995, Chapter 299
77 53C-4-301, as last amended by Laws of Utah 2004, Chapter 40
78 63J-1-504, as last amended by Laws of Utah 2010, Chapter 146
79 63L-2-201, as renumbered and amended by Laws of Utah 2008, Chapter 382
80
81 Be it enacted by the Legislature of the state of Utah:
82 Section 1. Section 9-4-307 is amended to read:
83 9-4-307. Impact fund administered by impact board -- Eligibility for assistance --
84 Review by board -- Administration costs -- Annual report.

85 (1) (a) The impact board shall:
86 (i) administer the impact fund in a manner that will keep a portion of the impact fund
87 revolving;
88 (ii) determine provisions for repayment of loans; [and]
89 (iii) establish criteria for determining eligibility for assistance under this part[.]; and
90 (iv) consider recommendations from the School and Institutional Trust Lands
91 Administration when awarding a grant described in Subsection 9-4-303 (6).
92 (b) (i) Criteria for awarding loans or grants made from funds described in Subsection
93 9-4-303 (5) shall be consistent with Subsection 9-4-303 (5).
94 (ii) Criteria for awarding grants made from funds described in Subsection
95 9-4-303 (2)(c) shall be consistent with Subsection 9-4-303 (6).
96 (c) In order to receive assistance under this part, subdivisions and interlocal agencies
97 shall submit formal applications containing the information that the impact board requires.
98 (2) In determining eligibility for loans and grants under this part, the impact board shall
99 consider the following:
100 (a) the subdivision's or interlocal agency's current mineral lease production;
101 (b) the feasibility of the actual development of a resource that may impact the
102 subdivision or interlocal agency directly or indirectly;
103 (c) current taxes being paid by the subdivision's or interlocal agency's residents;
104 (d) the borrowing capacity of the subdivision or interlocal agency, its ability and
105 willingness to sell bonds or other securities in the open market, and its current and authorized
106 indebtedness;
107 (e) all possible additional sources of state and local revenue, including utility user
108 charges;
109 (f) the availability of federal assistance funds;
110 (g) probable growth of population due to actual or prospective natural resource
111 development in an area;
112 (h) existing public facilities and services;

113 (i) the extent of the expected direct or indirect impact upon public facilities and
114 services of the actual or prospective natural resource development in an area; and
115 (j) the extent of industry participation in an impact alleviation plan, either as specified
116 in Title 63M, Chapter 5, Resource Development Act, or otherwise.
117 (3) The impact board may not fund any education project that could otherwise have
118 reasonably been funded by a school district through a program of annual budgeting, capital
119 budgeting, bonded indebtedness, or special assessments.
120 (4) The impact board may restructure all or part of the agency's or subdivision's
121 liability to repay loans for extenuating circumstances.
122 (5) The impact board shall:
123 (a) review the proposed uses of the impact fund for loans or grants before approving
124 them and may condition its approval on whatever assurances that the impact board considers to
125 be necessary to ensure that the proceeds of the loan or grant will be used in accordance with the
126 Leasing Act and this part; and
127 (b) ensure that each loan specifies the terms for repayment and is evidenced by general
128 obligation, special assessment, or revenue bonds, notes, or other obligations of the appropriate
129 subdivision or interlocal agency issued to the impact board under whatever authority for the
130 issuance of those bonds, notes, or obligations exists at the time of the loan.
131 (6) The impact board shall allocate from the impact fund to the department those funds
132 that are appropriated by the Legislature for the administration of the impact fund, but this
133 amount may not exceed 2% of the annual receipts to the impact fund.
134 (7) The department shall make an annual report to the Legislature concerning the
135 number and type of loans and grants made as well as a list of subdivisions and interlocal
136 agencies that received this assistance.
137 Section 2. Section 53C-1-201 is amended to read:
138 53C-1-201. Creation of administration -- Purpose -- Director.
139 (1) (a) There is established within state government the School and Institutional Trust
140 Lands Administration.

141 (b) The administration shall manage all school and institutional trust lands and assets
142 within the state, except as otherwise provided in Title 53C, Chapter 3, Deposit and Allocation
143 of Revenue from Trust Lands, and Sections 51-7a-201 and 51-7a-202 .
144 (2) The administration is an independent state agency and not a division of any other
145 department.
146 (3) (a) It is subject to the usual legislative and executive department controls except as
147 provided in this Subsection (3).
148 (b) (i) The director may make rules as approved by the board that allow the
149 administration to classify a business proposal submitted to the administration as protected
150 under Section 63G-2-305 , for as long as is necessary to evaluate the proposal.
151 (ii) The administration shall return the proposal to the party who submitted the
152 proposal, and incur no further duties under Title 63G, Chapter 2, Government Records Access
153 and Management Act, if the administration determines not to proceed with the proposal.
154 (iii) The administration shall classify the proposal pursuant to law if it decides to
155 proceed with the proposal.
156 (iv) Section 63G-2-403 does not apply during the review period.
157 (c) The director shall make rules in compliance with Title 63G, Chapter 3, Utah
158 Administrative Rulemaking Act, except that the administration is not subject to Subsections
159 63G-3-301 (6) and (7) and Section 63G-3-601 , and the director, with the board's approval, may
160 establish a procedure for the expedited approval of rules, based on written findings by the
161 director showing:
162 (i) the changes in business opportunities affecting the assets of the trust;
163 (ii) the specific business opportunity arising out of those changes which may be lost
164 without the rule or changes to the rule;
165 (iii) the reasons the normal procedures under Section 63G-3-301 cannot be met without
166 causing the loss of the specific opportunity;
167 (iv) approval by at least five board members; and
168 (v) that the director has filed a copy of the rule and a rule analysis, stating the specific

169 reasons and justifications for its findings, with the Division of Administrative Rules and
170 notified interested parties as provided in Subsection 63G-3-301 (10).
171 (d) (i) The administration shall comply with Title 67, Chapter 19, Utah State Personnel
172 Management Act, except as provided in this Subsection (3)(d).
173 (ii) The board may approve, upon recommendation of the director, that exemption for
174 specific positions under Subsections 67-19-12 (2) and 67-19-15 (1) is required in order to enable
175 the administration to efficiently fulfill its responsibilities under the law. The director shall
176 consult with the executive director of the Department of Human Resource Management prior
177 to making such a recommendation.
178 (iii) The positions of director, deputy director, associate director, assistant director,
179 legal counsel appointed under Section 53C-1-305 , administrative assistant, and public affairs
180 officer are exempt under Subsections 67-19-12 (2) and 67-19-15 (1).
181 (iv) Salaries for exempted positions, except for the director, shall be set by the director,
182 after consultation with the executive director of the Department of Human Resource
183 Management, within ranges approved by the board. The board and director shall consider
184 salaries for similar positions in private enterprise and other public employment when setting
185 salary ranges.
186 (v) The board may create an annual incentive and bonus plan for the director and other
187 administration employees designated by the board, based upon the attainment of financial
188 performance goals and other measurable criteria defined and budgeted in advance by the board.
189 (e) The administration shall comply with Title 63G, Chapter 6, Utah Procurement
190 Code, except where the board approves, upon recommendation of the director, exemption from
191 the Utah Procurement Code, and simultaneous adoption of rules under Title 63G, Chapter 3,
192 Utah Administrative Rulemaking Act, for procurement, which enable the administration to
193 efficiently fulfill its responsibilities under the law.
194 [(f) (i) The board and director shall review the exceptions under this Subsection (3) and
195 make recommendations for any modification, if required, which the Legislature would be asked
196 to consider during its annual general session.]

197 [(ii) The board and director may include in their recommendations any other proposed
198 exceptions from the usual executive and legislative controls the board and director consider
199 necessary to accomplish the purpose of this title.]
200 (f) (i) Except as provided in Subsection (3)(f)(ii), the administration is not subject to
201 the fee agency requirements of Section 63J-1-504 .
202 (ii) The following fees of the administration are subject to the requirements of Section
203 63J-1-504 : application, assignment, amendment, affidavit for lost documents, name change,
204 reinstatement, grazing nonuse, extension of time, partial conveyance, patent reissue, collateral
205 assignment, electronic payment, and processing.
206 (4) The administration is managed by a director of school and institutional trust lands
207 appointed by a majority vote of the board of trustees with the consent of the governor.
208 (5) (a) The board of trustees shall provide policies for the management of the
209 administration and for the management of trust lands and assets.
210 (b) The board shall provide policies for the ownership and control of Native American
211 remains that are discovered or excavated on school and institutional trust lands in consultation
212 with the Division of Indian Affairs and giving due consideration to Title 9, Chapter 9, Part 4,
213 Native American Grave Protection and Repatriation Act. The director may make rules in
214 accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, to implement
215 policies provided by the board regarding Native American remains.
216 (6) In connection with joint ventures [for the development of] and other transactions
217 involving trust lands and minerals approved [by the board] under Sections 53C-1-303 and
218 53C-2-401 , the administration, with board approval, may become a member of a limited
219 liability company under Title 48, Chapter 2c, Utah Revised Limited Liability Company Act,
220 and is considered a person under Section 48-2c-102 .
221 Section 3. Section 53C-1-202 is amended to read:
222 53C-1-202. Board of trustees membership -- Nomination list -- Qualifications --
223 Terms -- Replacement -- Chair -- Quorum.
224 (1) There is established the School and Institutional Trust Lands Board of Trustees.

225 (2) The board shall consist of seven members appointed on a nonpartisan basis by the
226 governor with the consent of the Senate [for nonconsecutive six-year terms].
227 [(3) (a) Of the initial appointments to the board, the governor shall appoint one
228 member to serve a six-year term, one member to serve a five-year term, one member to serve a
229 four-year term, one member to serve a three-year term, one member to serve a two-year term,
230 and one member to serve a one-year term.]
231 (3) (a) Except for the appointment made pursuant to Subsection (5), all appointments
232 to the board shall be for a nonconsecutive term of six years, or until a replacement has been
233 appointed and confirmed pursuant to this section.
234 (b) [All subsequent appointments shall be for a term of six years, except if] If a
235 vacancy occurs, the governor shall appoint a replacement, following the procedures set forth in
236 Subsections (2), (4), (5), and (6), to fill the unexpired term.
237 (c) Any member of the board who has served less than six years upon the expiration of
238 that member's term is eligible for a consecutive reappointment.
239 [(d) Neither the term provision in Subsection (2) nor Subsection (3) applies to an
240 appointment made under Subsection (5).]
241 (4) (a) The governor shall select six of the seven appointees to the board from a
242 nomination list of at least two candidates for each position or vacancy submitted pursuant to
243 Section 53C-1-203 .
244 (b) The governor may request an additional nomination list of at least two candidates
245 from the nominating committee if the initial list of candidates for a given position is
246 unacceptable.
247 (c) (i) If the governor fails to select an appointee within 60 days after receipt of the
248 initial list or within 60 days after the receipt of an additional list, the nominating committee
249 shall make an interim appointment by majority vote.
250 (ii) The interim appointee shall serve until the matter is resolved by the committee and
251 the governor or until replaced pursuant to this chapter.
252 (5) (a) The governor may appoint one member without requiring a nomination list.

253 (b) The member appointed under Subsection (5)(a) serves at the pleasure of the
254 governor.
255 (6) (a) Each board candidate shall possess outstanding professional qualifications
256 pertinent to the purposes and activities of the trust.
257 (b) The board shall represent the following areas of expertise:
258 (i) nonrenewable resource management or development;
259 (ii) renewable resource management or development; and
260 (iii) real estate.
261 (c) Other qualifications which are pertinent for membership to the board are expertise
262 in any of the following areas:
263 (i) business;
264 (ii) investment banking;
265 (iii) finance;
266 (iv) trust administration;
267 (v) asset management; and
268 (vi) the practice of law in any of the areas referred to in Subsections (6)(b) and (6)(c)(i)
269 through (v).
270 (7) The board of trustees shall select a chair and vice chair from its membership.
271 (8) Before assuming a position on the board, each member shall take an oath of office.
272 (9) Four members of the board constitute a quorum for the transaction of business.
273 (10) The governor or five board members may, for cause, remove a member of the
274 board.
275 [(11) An aggrieved party to a final action by the board may obtain judicial review of
276 that action under Sections 63G-4-402 and 63G-4-403 .]
277 Section 4. Section 53C-1-203 is amended to read:
278 53C-1-203. Board of trustees nominating committee -- Composition --
279 Responsibilities -- Per diem and expenses.
280 (1) There is established an 11 member board of trustees nominating committee.

281 (2) (a) The State Board of Education shall appoint five members to the nominating
282 committee from different geographical areas of the state.
283 (b) The governor shall appoint five members to the nominating committee as follows:
284 (i) one individual from a nomination list of at least two names of individuals
285 knowledgeable about institutional trust lands submitted by the University of Utah and Utah
286 State University on an alternating basis every four years;
287 (ii) one individual from a nomination list of at least two names submitted by the
288 livestock industry;
289 (iii) one individual from a nomination list of at least two names submitted by the Utah
290 Petroleum Association;
291 (iv) one individual from a nomination list of at least two names submitted by the Utah
292 Mining Association; and
293 (v) one individual from a nomination list of at least two names submitted by the
294 executive director of the Department of Natural Resources after consultation with statewide
295 wildlife and conservation organizations.
296 (c) The president of the Utah Association of Counties shall designate the chair of the
297 Public Lands Steering Committee, who must be an elected county commissioner or councilor,
298 to serve as the eleventh member of the nominating committee.
299 (3) (a) Except as required by Subsection (3)(b), each member shall serve a four-year
300 term.
301 (b) Notwithstanding the requirements of Subsection (3)(a), the state board and the
302 governor shall, at the time of appointment or reappointment, adjust the length of terms to
303 ensure that the terms of committee members are staggered so that approximately half of the
304 committee is appointed every two years.
305 (c) When a vacancy occurs in the membership for any reason, the replacement shall be
306 appointed for the unexpired term.
307 (4) The nominating committee shall select a chair and vice chair from its membership
308 by majority vote.

309 (5) (a) The nominating committee shall nominate at least two candidates for each
310 position or vacancy which occurs on the board of trustees except for the governor's appointee
311 under Subsection 53C-1-202 (5).
312 (b) The nominations shall be by majority vote of the committee.
313 (6) A member may not receive compensation or benefits for the member's service, but
314 may receive per diem and travel expenses in accordance with:
315 (a) Section 63A-3-106 ;
316 (b) Section 63A-3-107 ; and
317 (c) rules made by the Division of Finance pursuant to Sections 63A-3-106 and
318 63A-3-107 .
319 Section 5. Section 53C-1-204 is amended to read:
320 53C-1-204. Policies established by board -- Director.
321 (1) (a) The board shall establish policies for the management of the School and
322 Institutional Trust Lands Administration.
323 (b) The policies shall:
324 (i) be consistent with the Utah Enabling Act, the Utah Constitution, and state law;
325 (ii) reflect undivided loyalty to the beneficiaries consistent with fiduciary duties;
326 (iii) require the return of not less than fair market value for the use, sale, or exchange
327 of school and institutional trust assets;
328 (iv) seek to optimize trust land revenues and increase the value of trust land holdings
329 consistent with the balancing of short and long-term interests, so that long-term benefits are not
330 lost in an effort to maximize short-term gains;
331 (v) maintain the integrity of the trust and prevent the misapplication of its lands and its
332 revenues; and
333 (vi) have regard for and seek General Fund appropriation compensation for the general
334 public's use of natural and cultural resources consistent with the duties of the administration as
335 trustee for the beneficiaries.
336 (2) The board shall ensure that the administration is managed according to law.

337 (3) The board shall establish due process procedures governing adjudicative
338 proceedings conducted by the board and the administration.
339 (4) The board and the director shall recommend to the governor and the Legislature any
340 necessary or desirable changes in statutes relating to the trust or their trust responsibilities.
341 [(5) Policies adopted by the Board of State Lands and Forestry prior to the effective
342 date of this act regarding school and institutional trust lands, shall remain in effect until
343 amended or repealed by the board.]
344 [(6)] (5) The board shall develop policies for the long-term benefit of the trust utilizing
345 the broad discretion and power granted to it in this title.
346 [(7)] (6) (a) (i) On at least three occasions during each calendar year and in cooperation
347 with the director, the board shall consult with an advisory committee consisting of five county
348 commissioners appointed by the Utah Association of Counties concerning the impact of trust
349 land management practices on rural economies.
350 (ii) The director shall notify the chair of the committee prior to any proposed board
351 actions. At the request of the committee and prior to taking the proposed action, the board
352 shall meet with the committee at the next scheduled board meeting.
353 (b) The association shall appoint the commissioners from five different counties based
354 on such factors as a county's total acreage of trust lands, the revenues generated from trust
355 lands in the county, and the potential for economic development of trust lands within the
356 county.
357 (c) The advisory committee may request additional consultations it considers necessary
358 or appropriate, to be scheduled within a reasonable time after receipt of the request by the
359 administration.
360 [(8)] (7) The board shall utilize the services of the attorney general as provided in
361 Section 53C-1-305 .
362 [(9)] (8) The board may:
363 (a) (i) establish advisory committees to advise the board, director, or administration on
364 policies affecting the management of the trust, and pay the compensation and travel expenses

365 in accordance with rules adopted by the Division of Finance; and
366 (ii) after conferring with the director, hire consultants to advise the board, director, or
367 administration on issues affecting the management of the trust, and pay compensation to the
368 consultants from money appropriated for that purpose;
369 (b) with the consent of the state risk manager, authorize the director to manage lands or
370 interests in lands held by any other public or private party, if:
371 (i) all management costs are compensated by the parties;
372 (ii) there is a commensurate return to the beneficiaries; and
373 (iii) the additional responsibilities do not detract from the administration's
374 responsibilities and its duty of undivided loyalty to the beneficiaries;
375 (c) issue subpoenas or authorize a hearing officer to issue subpoenas, to compel the
376 attendance of witnesses and the production of documents in adjudicative proceedings
377 authorized by law and administer oaths in the performance of official duties; and
378 (d) submit in writing to the director a request for responses, to be made within a
379 reasonable time, to questions concerning policies and practices affecting the management of
380 the trust.
381 [(10)] (9) Board members shall be given access to all administration records and
382 personnel consistent with law and as necessary to permit the board to accomplish its
383 responsibilities to ensure that the administration is in full compliance with applicable policies
384 and law.
385 Section 6. Section 53C-1-302 is amended to read:
386 53C-1-302. Management of the administration -- Trust responsibilities.
387 (1) (a) The director has broad authority to:
388 (i) manage the School and Institutional Trust Lands Administration in fulfillment of its
389 purpose; [and]
390 (ii) establish fees, procedures, and rules consistent with general policies prescribed by
391 the board of trustees[.]; and
392 (iii) acquire and dispose of lands and assets in accordance with law.

393 (b) The procedures and rules shall:
394 (i) be consistent with the Utah Enabling Act, the Utah Constitution, and policies of the
395 board;
396 (ii) reflect undivided loyalty to the beneficiaries consistent with the director's fiduciary
397 duties and responsibilities;
398 (iii) subject to Subsection (2), obtain the optimum values from use of trust lands and
399 revenues for the trust beneficiaries, including the return of not less than fair market value for
400 the use, sale, or exchange of school and institutional trust assets; and
401 (iv) be broadly construed to grant the board, director, and administration full
402 discretionary authority to manage, maintain, or dispose of trust assets in the manner they
403 consider most favorable to the beneficiaries.
404 (2) The director shall seek to optimize trust land revenues consistent with the balancing
405 of short and long-term interests, so that long-term benefits are not lost in an effort to maximize
406 short-term gains.
407 (3) The director shall maintain the integrity of the trust and prevent, through prudent
408 management, the misapplication of its lands and revenues.
409 Section 7. Section 53C-1-303 is amended to read:
410 53C-1-303. Responsibilities of director -- Budget review -- Legal counsel --
411 Contract for services.
412 (1) In carrying out the policies of the board of trustees and in establishing procedures
413 and rules the director shall:
414 (a) take an oath of office before assuming any duties as the director;
415 (b) adopt procedures and rules necessary for the proper administration of matters
416 entrusted to the director by state law and board policy;
417 (c) submit to the board for its review and concurrence on any rules necessary for the
418 proper management of matters entrusted to the administration;
419 (d) faithfully manage the administration under the policies established by the board;
420 (e) submit to the board [and] for public inspection [by October 1 of each year,] an

421 annual management budget and financial plan for operations of the administration and, after
422 approval by the board, submit the budget to the governor;
423 (f) direct and control the budget expenditures as finally authorized and appropriated;
424 (g) establish job descriptions and employ, within the limitation of the budget, staff
425 necessary to accomplish the purposes of the office subject to Section 53C-1-201 ;
426 (h) establish, in accordance with generally accepted principles of fund accounting, a
427 system to identify and account for the assets and vested interests of each beneficiary;
428 (i) maintain appropriate records of trust activities to enable auditors appointed by
429 appropriate state agencies or the board to conduct periodic audits of trust activities;
430 (j) provide that all leases, contracts, and agreements be submitted to legal counsel for
431 review of compliance with applicable law and fiduciary duties prior to execution and utilize the
432 services of the attorney general as provided in Section 53C-1-305 ;
433 (k) keep the board, beneficiaries, governor, Legislature, and the public informed about
434 the work of the director and administration by reporting to the board in a public meeting at
435 least once during each calendar quarter; and
436 (l) respond in writing within a reasonable time to a request by the board for responses
437 to questions on policies and practices affecting the management of the trust.
438 [(2) Procedures and rules adopted by the Division of State Lands and Forestry as they
439 relate to trust lands prior to the effective date of this act remain in effect until amended or
440 repealed by the director.]
441 [(3)] (2) The administration shall be the named party in substitution of the Division of
442 State Lands and Forestry or its predecessor agencies, with respect to all documents affecting
443 trust lands from the effective date of this act.
444 [(4)] (3) The director may:
445 (a) with the consent of the state risk manager and the board, manage lands or interests
446 in lands held by any other public or private party pursuant to policies established by the board
447 and may make rules to implement these board policies;
448 (b) sue or be sued as the director of school and institutional trust lands;

449 (c) contract with other public agencies for personnel management services;
450 (d) contract with any public or private entity to make improvements to or upon trust
451 lands and to carry out any of the responsibilities of the office, so long as the contract requires
452 strict adherence to trust management principles, applicable law and regulation, and is subject to
453 immediate suspension or termination for cause; and
454 (e) with the approval of the board enter into joint ventures and other business
455 arrangements consistent with the purposes of the trust.
456 [(5)] (4) Any application or bid required for the lease, permitting, or sale of lands in a
457 competitive process or any request for review pursuant to Section 53C-1-304 shall be
458 considered filed or made on the date received by the appropriate administrative office, whether
459 transmitted by United States mail or in any other manner.
460 Section 8. Section 53C-1-304 is amended to read:
461 53C-1-304. Rules to ensure procedural due process -- Board review of director
462 action -- Judicial review.
463 (1) The board shall make rules to ensure procedural due process in the resolution of
464 complaints concerning actions by the board, director, [and] or the administration.
465 (2) (a) [An] Except as provided in Subsection (2)(b), an aggrieved party to a final
466 action by the director or the administration may petition the board for administrative review of
467 the decision.
468 (b) Final actions by the director or administration to lease, sell, or exchange specific
469 real property or other trust assets are not subject to administrative review.
470 (3) (a) The board may appoint a qualified hearing examiner for purposes of taking
471 evidence and making recommendations for board action.
472 (b) The board shall consider the recommendations of the examiner in making
473 decisions.
474 (4) (a) The board shall uphold the decision of the director or the administration unless
475 it finds, by a preponderance of the evidence, that the decision violated applicable law, policy,
476 or rules.

477 (b) The board shall base its final actions on findings and conclusions and shall inform
478 the aggrieved party of its right to judicial review.
479 (5) An aggrieved party to a final action by the board may obtain judicial review of that
480 action under Sections 63G-4-402 and 63G-4-403 .
481 Section 9. Section 53C-2-102 is amended to read:
482 53C-2-102. Information to be furnished by provider -- Director to adopt
483 confidential information rules.
484 (1) As used in this section, "provider" means a prospective applicant, applicant,
485 partner, or lessee.
486 (2) (a) The administration may require a provider to furnish any information necessary
487 to carry out the duties of this title, including financial information, geological and mine maps,
488 well logs, and assays.
489 (b) Any information submitted to the administration which the provider and the
490 director agree in writing is of a proprietary nature shall be kept confidential and may not be
491 released without written permission from the provider.
492 (3) The director shall adopt rules under which the administration may retain, without
493 disclosure to third parties, information including that received under Subsection (2) which the
494 provider and the director agree is of a protected or proprietary nature, unless the information is
495 required by federal or state law to be of a nonproprietary nature.
496 Section 10. Section 53C-2-103 is amended to read:
497 53C-2-103. Director's authority to examine records and inspect property.
498 [(1)] For the purpose of determining compliance with any rule or any performance or
499 payment obligation under a lease, permit, or contract, the director may, at reasonable times,
500 places, and intervals:
501 [(a)] (1) require that the lessee, permittee, or contractor provide any pertinent books,
502 records, or other documents of the lessee, permittee, or contractor; [or] and
503 [(b)] (2) inspect the property acquired, used, or developed under the lease, permit, or
504 contract after reasonable notice or as provided in the lease, permit, or contract.

505 [(2) Nothing in this section shall be construed to limit or invalidate audits conducted by
506 the Division of State Lands and Forestry prior to the effective date of this act.]
507 Section 11. Section 53C-2-104 is amended to read:
508 53C-2-104. Preexisting federal mining claims on trust lands -- Filing of notice --
509 Conclusive evidence of abandonment.
510 (1) The Legislature recognizes the importance of having an effective state filing system
511 for unpatented federal mining claims located on trust lands prior to the state's acquisition of
512 title that would allow the state to determine the extent of preexisting unpatented mining claims
513 on those lands and eliminate the cloud on the state's title created by abandoned unpatented
514 mining claims, while preserving the rights of owners of valid preexisting unpatented mining
515 claims located on those lands.
516 (2) Annually on or before December 31, each owner of an unpatented lode mining
517 claim, placer mining claim, mill site claim, or tunnel site claim located pursuant to the general
518 mining laws of the United States on lands now owned of record by the state in trust for the
519 common schools or other beneficiary institutions shall file with the administration a notice as
520 prescribed by Subsection (3).
521 (3) (a) The initial notice required by Subsection (2) that is filed by a claimant shall
522 include:
523 (i) a statement of the owner's intention to hold or abandon the claim;
524 (ii) a brief description of the type and nature of the claim;
525 (iii) the date the claim was located, and the date the claim was filed of record in county
526 and federal records;
527 (iv) a copy of the official record of the notice of location or certificate of location of the
528 claim; and
529 (v) a legal description of the claim, by legal subdivision or metes and bounds
530 description, sufficient to locate the claimed lands on the ground.
531 (b) Each subsequent notice required by Subsection (2) shall include:
532 (i) the name of the claim; and

533 (ii) a statement of the owner's intention to hold or abandon the claim.
534 (4) (a) The administration shall note the existence of all claims for which notices have
535 been filed in the central index of all trust lands required under Section 53C-2-101 .
536 (b) The administration may impose a reasonable filing fee as a condition for accepting
537 the required notices, not to exceed [$50] $100 per claim, to defray the administrative costs of
538 maintaining an index of claims.
539 (5) (a) Failure to file the notice required by this section constitutes an abandonment of
540 the claim by the owner.
541 (b) Filing of the required notice by one owner of a claim in which multiple persons
542 own or claim interests fulfills the filing requirements of this section.
543 (6) Filing of a notice under this section does not make valid a claim which is otherwise
544 invalid under other applicable law.
545 (7) Acquisition of rights to extract minerals underlying trust lands is governed by Part
546 4 [of this chapter], Mineral Leases.
547 (8) This section does not waive any fees, filings, or other requirements imposed by
548 federal law.
549 Section 12. Section 53C-2-105 is amended to read:
550 53C-2-105. Withdrawal of trust lands from leasing or other dispositions.
551 [(1)] The director may at any time withdraw trust lands from:
552 (1) applications for leasing, permitting, sale, or other disposition of any nature upon a
553 finding that the interests of the trust would best be served through withdrawal[.]; or
554 (2) surface occupancy or use upon a finding that continued use would cause resource
555 degradation.
556 [(2) Any withdrawal which is in force on May 5, 2003, shall continue in force until
557 revoked by the director.]
558 Section 13. Section 53C-2-301 is amended to read:
559 53C-2-301. Trespassing on trust lands -- Penalties.
560 (1) A person is liable for the civil damages prescribed in Subsection (2) and, unless a

561 greater penalty is prescribed in another part of the law, is guilty of a class B misdemeanor if the
562 person, without written authorization from the director:
563 (a) removes, extracts, uses, consumes, or destroys any mineral resource, gravel, sand,
564 soil, vegetation, water resource, or improvement on trust lands;
565 (b) grazes livestock on trust lands;
566 (c) uses, occupies, or constructs improvements or structures on trust lands;
567 (d) uses or occupies trust lands for more than 30 days after the cancellation or
568 expiration of written authorization;
569 (e) knowingly and willfully uses trust lands for commercial gain;
570 (f) appropriates, alters, injures, or destroys any improvement or any historical,
571 prehistorical, archaeological, or paleontological resource on trust lands;
572 (g) trespasses upon, uses, commits waste, dumps refuse, or occupies trust land;
573 (h) interferes with the activities of an employee or agent of the administration on trust
574 lands; or
575 (i) interferes with activities of a lessee or other person which have been authorized by
576 the administration.
577 (2) A person who commits any act described in Subsection (1) is liable for damages in
578 the amount of whichever of the following is greatest:
579 (a) three times the value at the point of sale of the mineral or other resource removed,
580 destroyed, or extracted;
581 (b) three times the amount of damage committed;
582 (c) three times the cost to cure the damage;
583 [(c)] (d) three times the value of any losses suffered as a result of interference with
584 authorized activities; or
585 [(d)] (e) three times the consideration which would have been charged by the director
586 for use of the land during the period of trespass[, whichever is greater].
587 (3) In addition to the damages described in Subsection (2), a person found guilty of a
588 criminal act under Subsection (1) is subject to the penalties provided in Title 76, Chapter 3,

589 Punishments.
590 (4) The director shall deposit money collected under this section in the fund in which
591 like revenues from that land would be deposited.
592 (5) The director may award a portion of any of the damages collected under this section
593 in excess of actual damages to the general fund of the county in which the trespass occurred as
594 a reward for county assistance in the apprehension and prosecution of the trespassing party.
595 Section 14. Section 53C-2-404 is amended to read:
596 53C-2-404. Applicants for mineral leases -- Qualifications.
597 Applicants for mineral leases must, throughout the application period and throughout
598 the duration of the lease, be in full compliance with all of the laws of the state as to
599 qualification to do business within the state and must not be in default under those laws or the
600 rules of the administration.
601 Section 15. Section 53C-2-407 is amended to read:
602 53C-2-407. Mineral lease application procedures.
603 (1) Lands that are not encumbered by a current mineral lease for the same resource, a
604 withdrawal order, or other rule of the director prohibiting the lease of the lands, may be offered
605 for lease as provided in this section or may, with board approval, be committed to another
606 contractual arrangement under Subsection 53C-2-401 (1)(d).
607 (2) (a) A notice of the land available for leasing shall be posted in the administration's
608 office.
609 (b) The notice shall:
610 (i) describe the land;
611 (ii) indicate what mineral interest in each tract is available for leasing; and
612 (iii) state the last date, which shall be no less than 15 days after the notice is posted, on
613 which bids may be received.
614 (3) (a) Applications for the lease of lands filed before the closing date stated in the
615 notice shall be considered to be filed simultaneously.
616 (b) The applications shall be:

617 (i) submitted in sealed envelopes; and
618 (ii) opened in the administration's office at [10:00] 10 a.m. of the first business day
619 following the last day on which bids may be received.
620 (c) Leases shall be awarded to the highest responsible, qualified bidder, in terms of the
621 bonus paid in addition to the first year's rental, who submitted a bid in the manner required.
622 (d) In cases of identical bids of successful bidders:
623 (i) the right to lease shall be determined by drawing or oral auction;
624 (ii) the determination of whether to award the lease by drawing or oral auction shall be
625 made at the sole discretion of the director; and
626 (iii) the drawing or oral auction shall be held in public at the administration's office in a
627 manner calculated to optimize the return to the trust land beneficiary.
628 (4) (a) At the discretion of the director, mineral leases may be offered at an oral public
629 auction.
630 (b) The director may set a minimum bid for a public auction.
631 (5) The director may award a mineral lease without following the competitive bidding
632 procedures specified in Subsections (3) and (4) or conducting an oral public auction, if the
633 mineral lessee waives or relinquishes to the trust a prior mining claim, mineral lease, or other
634 right which in the opinion of the director might otherwise:
635 (a) defeat or encumber the selection of newly acquired land, either for indemnity or
636 other purposes, or the acquisition by the trust of any land; or
637 (b) cloud the title to any of those lands.
638 (6) Following the awarding of a lease to a successful bidder, deposits, except filing
639 fees, made by unsuccessful bidders shall be returned to those bidders.
640 (7) (a) [Lands] Subject to Section 53C-2-104 , lands acquired through exchange or
641 indemnity selection from the federal government shall be subject to the vested rights of
642 unpatented mining claimants under the Mining Law of 1872, as amended, and other federal
643 vested rights, both surface and minerals.
644 (b) Subsection (7)(a) does not prevent the director from negotiating the

645 accommodation of vested rights through any method acceptable to the parties.
646 (8) The director may lease lands in the order in which applications are filed if:
647 (a) the director offers trust lands for lease for mineral purposes according to the
648 procedures in Subsections (3) through (6) and the lands are not leased; or
649 (b) a period of time of not less than one year but less than three years has elapsed
650 following:
651 (i) a revocation of a withdrawal; or
652 (ii) the date an existing mineral lease is canceled, relinquished, surrendered, or
653 terminated.
654 Section 16. Section 53C-3-101 is amended to read:
655 53C-3-101. Land Grant Management Fund -- Contents -- Use of money.
656 (1) (a) There is created an enterprise fund known as the Land Grant Management Fund.
657 (b) This fund shall consist of:
658 (i) all revenues derived from trust lands except revenues from the sale of those lands;
659 (ii) all interest earned by the fund;
660 (iii) all revenues deposited in the fund in accordance with Subsection 41-22-19 (3); and
661 (iv) all revenues obtained from other activities of the director or administration.
662 (2) The director may expend money:
663 (a) from the Land Grant Management Fund in accordance with the approved budget for
664 the support of director and administration activities; and
665 (b) deposited in the fund in accordance with Subsection 41-22-19 (3) as necessary to
666 fulfill the purposes of Subsection 41-22-19 (3)(b).
667 (3) Except for revenues deposited under Subsection (1)(b)(iii), any amount in excess of
668 that required to fund the budget shall be distributed to the various trust beneficiaries as of June
669 30 of each calendar year, and at other times determined by the director, in shares equal to the
670 portion of total Land Grant Management Fund revenues obtained from each beneficiary's land
671 during the accounting period.
672 (4) Money from the lease or rental of school trust lands or from the use, sale, or lease

673 of resources on school trust lands, all sums paid for fees, [including grazing fees,] and all
674 forfeitures or penalties received in connection with those transactions shall be deposited in the
675 Permanent State School Fund.
676 (5) Money from the lease or rental of lands acquired by the state for the benefit of an
677 institution named in Sections 7, 8, and 12 of the Utah Enabling Act, or from the use, sale, or
678 lease of renewable or nonrenewable resources on those lands, and all forfeitures or penalties
679 received in connection with those transactions, shall be distributed to the institution.
680 (6) Except for revenues deposited under Subsection (1)(b)(iii), any remaining money,
681 including interest earned on the account, shall be distributed in pro rata shares to the various
682 beneficiaries.
683 Section 17. Section 53C-3-203 is amended to read:
684 53C-3-203. Land Exchange Distribution Account.
685 (1) As used in this section, "account" means the Land Exchange Distribution Account
686 created in Subsection (2)(a).
687 (2) (a) There is created within the General Fund a restricted account known as the Land
688 Exchange Distribution Account.
689 (b) The account shall consist of revenue deposited in the account as required by
690 Section 53C-3-202 .
691 (3) (a) The state treasurer shall invest money in the account according to Title 51,
692 Chapter 7, State Money Management Act.
693 (b) The Division of Finance shall deposit interest or other earnings derived from
694 investment of account money into the General Fund.
695 (4) The Legislature shall annually appropriate from the account in the following order:
696 (a) $1,000,000 to the Constitutional Defense Restricted Account, created in 63C-4-103 ,
697 to be used in accordance with Subsection 63C-4-103 (6) for:
698 (i) fiscal year 2010-11;
699 (ii) fiscal year 2011-12; and
700 (iii) fiscal year 2012-13; and

701 (b) from the deposits to the account remaining after the appropriation in Subsection
702 (4)(a), the following amounts:
703 (i) 55% of the deposits to counties in amounts proportionate to the amounts of mineral
704 revenue generated from the acquired land, exchanged land, acquired mineral interests, or
705 exchanged mineral interests located in each county, to be used to mitigate the impacts caused
706 by mineral development;
707 (ii) 25% of the deposits to counties in amounts proportionate to the total surface and
708 mineral acreage within each county that was conveyed to the United States under the agreement
709 or an exchange, to be used to mitigate the loss of mineral development opportunities resulting
710 from the agreement or exchange;
711 (iii) 1.68% of the deposits to the State Board of Education, to be used for education
712 research and experimentation in the use of staff and facilities designed to improve the quality
713 of education in Utah;
714 (iv) 1.66% of the deposits to the Geological Survey, to be used for natural resources
715 development in the state;
716 (v) 1.66% of the deposits to the Water Research Laboratory at Utah State University, to
717 be used for water development in the state; and
718 (vi) 7.5% of the deposits to the Constitutional Defense Restricted Account created in
719 Section 63C-4-103 .
720 (5) Beginning with fiscal year 2009-10, the Legislature shall annually appropriate 1%
721 of the deposits remaining in the account after the appropriation is made in accordance with
722 Subsection (4)(a) to the Geological Survey, to be used for test wells, other hydrologic studies,
723 and air quality monitoring in the West Desert.
724 (6) (a) Beginning with fiscal year 2009-10, the Legislature shall annually appropriate
725 6.5% of the deposits remaining in the account after the appropriation is made in Subsection
726 (4)(a) to the Permanent Community Impact Fund created in Section 9-4-303 , to be used for
727 grants to political subdivisions of the state to mitigate the impacts resulting from the
728 development or use of school and institutional trust lands.

729 (b) The administration shall make recommendations to the Permanent Community
730 Impact Fund Board for its consideration when awarding the grants described in Subsection
731 (6)(a).
732 Section 18. Section 53C-4-101 is amended to read:
733 53C-4-101. Criteria for sale, lease, exchange, or other disposition of trust lands.
734 (1) (a) The director shall establish criteria by rule for the sale, exchange, lease, or other
735 disposition or conveyance of trust lands, including procedures for determining fair market
736 value of those lands.
737 (b) (i) Nothing in this title or in the administration's rules and procedures shall be
738 considered to require the director or the administration to execute any transaction for the
739 disposition of trust lands on terms that the director determines by a written finding to be
740 unfavorable to the beneficiaries.
741 (ii) The director shall send a copy of the written finding to each board member for
742 review and comment.
743 [(2) The governor pursuant to P.L. 103-93 and in collaboration with the board shall
744 implement the inholdings land exchange authorized in that public law.]
745 [(3)] (2) The governor, with the consent of the board, may participate in [similar]
746 efforts and initiatives related to school and institutional trust lands inholdings.
747 Section 19. Section 53C-4-102 is amended to read:
748 53C-4-102. Sale of trust lands -- Fair market value -- Determination of sale --
749 Advertising proposed sales -- Sale procedures -- Defaults.
750 (1) Trust lands may not be sold for less than the fair market value.
751 (2) (a) The director shall determine whether disposal or retention of all or a portion of a
752 property interest in trust lands is in the best interest of the trust.
753 (b) When it is determined that the disposal of an interest in trust lands is in the best
754 interest of the applicable trust, the transaction shall be accomplished in an orderly and timely
755 manner.
756 (3) The director shall advertise any proposed sale, lease, or exchange of an interest in

757 trust lands in a reasonable manner consistent with the director's fiduciary responsibilities.
758 (4) (a) Any tract of trust land may be subdivided and sold, leased, or exchanged in
759 accordance with a plan, contract, or other action designating the land to be subdivided that is
760 approved by the director.
761 (b) The director may survey the tract and direct its subdivision.
762 (c) A plat of the survey shall be filed with the county recorder of the county in which
763 the land is located and with the administration.
764 (5) Sale conditions, including qualification of prospective purchasers, shall be in
765 accordance with accepted mortgage lending and real estate practices.
766 (6) Upon the sale of land, the director shall issue to the purchaser a certificate of sale
767 which describes the land purchased and states the amount paid, the amount due, and the time
768 when the principal and interest will become due.
769 (7) Upon payment in full of principal and interest and the surrender of the original
770 certificate of sale for any tract of land sold, [or] payment in full of any amounts required to be
771 paid for the partial release of property, or acceptance of appropriate conveyance documents in
772 satisfaction of a land exchange, the governor, or the governor's designee, shall issue a patent to
773 the purchaser, heir, assignee, successor in interest, or other grantee as determined by the
774 director.
775 (8) (a) If a purchaser of trust lands defaults in the payment of any installment of
776 principal or interest due under the terms of the contract of sale, the director shall notify the
777 purchaser that if the default is not corrected within 30 days after issuance of the notice the
778 director shall proceed with any remedy which the administration may pursue under law or the
779 contract of sale.
780 (b) The notice shall be sent by registered or certified mail to the purchaser at the latest
781 address as shown by the records of the administration.
782 (c) If the default is not corrected by compliance with the requirements of the notice of
783 default within the time provided by the notice, the director may pursue any available remedy
784 under the contract of sale, including forfeiture.

785 (d) If forfeited lands are sold again to the same purchaser, the sale may be made by a
786 new and independent contract without regard to the forfeited agreement.
787 Section 20. Section 53C-4-201 is amended to read:
788 53C-4-201. Surface leases and user permits -- Procedures for issuing leases and
789 user permits.
790 (1) The director may issue surface leases and user permits of trust lands for any term
791 consistent with sound and prudent real estate practices.
792 (2) This section does not apply to leases for grazing, oil, gas, and hydrocarbons, or
793 other minerals.
794 (3) (a) (i) Surface leases or user permits may be entered into by negotiation, public
795 auction, or other public competitive bidding process as determined by rules of the director.
796 [(ii) Any lease or permit which includes an option to purchase at a future date must be
797 entered into through a public competitive process.]
798 (ii) The director may lease trust lands for development and subsequent sale of all or
799 portions of such lands to third parties for no less than fair market value.
800 (b) Requests for proposals (RFP) on trust lands may be offered by the director after
801 public notice.
802 Section 21. Section 53C-4-301 is amended to read:
803 53C-4-301. Exchange of trust lands -- Based on equal value -- Lands encumbered
804 by a lease.
805 (1) (a) In accordance with rules of the director, trust lands or other trust assets may be
806 exchanged for other land or other assets.
807 (b) The director[, upon authorization from the governor,] shall [execute and] deliver the
808 necessary patents to other proprietors and receive proper deeds for the lands exchanged.
809 [(c) The director may not make an exchange until a deed or patent for the land received
810 in exchange has been issued by the proprietors.]
811 (c) The director shall issue, deliver, and accept conveyance documents in land
812 exchanges in accordance with accepted real estate closing practices.

813 (2) (a) If trust lands are encumbered by an existing lease, the director may, upon
814 approval of an exchange, and with the consent of the lessee, terminate the existing lease and
815 issue a lease of the same type on lands [of comparable acreage or value] which may be
816 acquired in the same exchange in which the leased lands are used as base.
817 (b) The state shall honor all vested rights upon acceptance of exchanged lands.
818 Section 22. Section 63J-1-504 is amended to read:
819 63J-1-504. Fees -- Adoption, procedure, and approval -- Establishing and
820 assessing fees without legislative approval.
821 (1) As used in this section:
822 (a) (i) "Agency" means each department, commission, board, council, agency,
823 institution, officer, corporation, fund, division, office, committee, authority, laboratory, library,
824 unit, bureau, panel, or other administrative unit of the state.
825 (ii) "Agency" does not mean the Legislature or its committees.
826 (b) "Fee agency" means any agency that is authorized to establish fees.
827 (c) "Fee schedule" means the complete list of fees charged by a fee agency and the
828 amount of those fees.
829 (2) Each fee agency shall adopt a schedule of fees assessed for services provided by the
830 fee agency that are:
831 (a) reasonable, fair, and reflect the cost of services provided; and
832 (b) established according to a cost formula determined by the director of the Governor's
833 Office of Planning and Budget and the director of the Division of Finance in conjunction with
834 the agency seeking to establish the fee.
835 (3) Except as provided in Subsection (6), a fee agency may not:
836 (a) set fees by rule; or
837 (b) create, change, or collect any fee unless the fee has been established according to
838 the procedures and requirements of this section.
839 (4) Each fee agency that is proposing a new fee or proposing to change a fee shall:
840 (a) present each proposed fee at a public hearing, subject to the requirements of Title

841 52, Chapter 4, Open and Public Meetings Act;
842 (b) increase, decrease, or affirm each proposed fee based on the results of the public
843 hearing;
844 (c) except as provided in Subsection (6), submit the fee schedule to the Legislature as
845 part of the agency's annual appropriations request; and
846 (d) where necessary, modify the fee schedule to implement the Legislature's actions.
847 (5) (a) Each fee agency shall submit its fee schedule or special assessment amount to
848 the Legislature for its approval on an annual basis.
849 (b) The Legislature may approve, increase or decrease and approve, or reject any fee
850 submitted to it by a fee agency.
851 (6) After conducting the public hearing required by this section, a fee agency may
852 establish and assess fees without first obtaining legislative approval if:
853 (a) (i) the Legislature creates a new program that is to be funded by fees to be set by the
854 Legislature;
855 (ii) the new program's effective date is before the Legislature's next annual general
856 session; and
857 (iii) the fee agency submits the fee schedule for the new program to the Legislature for
858 its approval at a special session, if allowed in the governor's call, or at the next annual general
859 session of the Legislature, whichever is sooner;
860 (b) the Division of Occupational and Professional licensing makes a special
861 assessment against qualified beneficiaries under the Residence Lien Restriction and Lien
862 Recovery Fund Act as provided in Subsection 38-11-206 (1); or
863 (c) (i) the fee agency proposes to increase or decrease an existing fee for the purpose of
864 adding or removing a transactional fee that is charged or assessed by a non-governmental third
865 party but is included as part of the fee charged by the fee agency;
866 (ii) the amount of the increase or decrease in the fee is equal to the amount of the
867 transactional fee charged or assessed by the non-governmental third party; and
868 (iii) the increased or decreased fee is submitted to the Legislature for its approval at a

869 special session, if allowed in the governor's call, or at the next annual session of the
870 Legislature, whichever is sooner.
871 (7) (a) Each fee agency that wishes to change any fee shall submit to the governor as
872 part of the agency's annual appropriation request a list that identifies:
873 (i) the title or purpose of the fee;
874 (ii) the present amount of the fee;
875 (iii) the proposed new amount of the fee;
876 (iv) the percent that the fee will have increased if the Legislature approves the higher
877 fee;
878 (v) the estimated total annual revenue change that will result from the change in the
879 fee;
880 (vi) the account or fund into which the fee will be deposited; and
881 (vii) the reason for the change in the fee.
882 (b) (i) The governor may review and approve, modify and approve, or reject the fee
883 increases.
884 (ii) The governor shall transmit the list required by Subsection (7)(a), with any
885 modifications, to the Legislative Fiscal Analyst with the governor's budget recommendations.
886 (c) Bills approving any fee change shall be filed before the beginning of the
887 Legislature's annual general session, if possible.
888 (8) (a) Except as provided in Subsection (8)(b), the School and Institutional Trust
889 Lands Administration, established in Section 53C-1-201 , is exempt from the requirements of
890 this section.
891 (b) The following fees of the School and Institutional Trust Lands Administration are
892 subject to the requirements of this section: application, assignment, amendment, affidavit for
893 lost documents, name change, reinstatement, grazing nonuse, extension of time, partial
894 conveyance, patent reissue, collateral assignment, electronic payment, and processing.
895 Section 23. Section 63L-2-201 is amended to read:
896 63L-2-201. Federal government acquisition of real property in the state.

897 (1) As used in this section:
898 (a) "Agency" is defined in Section 63G-10-102 .
899 (b) "Agency" includes:
900 (i) the School and Institutional Trust Lands Administration created in Section
901 53C-1-201 ; and
902 (ii) the School and Institutional Trust Lands Board of Trustees created in Section
903 53C-1-202 .
904 (2) (a) Before legally binding the state by executing an agreement to sell or transfer to
905 the United States government 10,000 or more acres of any state lands or school and
906 institutional trust lands, an agency shall submit the agreement or proposal:
907 (i) to the Legislature for its approval or rejection; or
908 (ii) in the interim, to the Legislative Management Committee for review of the
909 agreement or proposal.
910 (b) The Legislative Management Committee may:
911 (i) recommend that the agency execute the agreement or proposal;
912 (ii) recommend that the agency reject the agreement or proposal; or
913 (iii) recommend to the governor that the governor call a special session of the
914 Legislature to review and approve or reject the agreement or proposal.
915 (3) Before legally binding the state by executing an agreement to sell or transfer to the
916 United States government less than 10,000 acres of any state lands or school and institutional
917 trust lands, an agency shall [report to] notify the Natural Resources, Agriculture, and
918 Environment Interim Committee.
919 (4) Notwithstanding Subsections (2) and (3), the Legislature approves all conveyances
920 of school trust lands to the United States government made for the purpose of completing the
921 Red Cliffs Desert Reserve in Washington County.