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First Substitute H.B. 51
7 LONG TITLE
8 General Description:
9 This bill modifies provisions of the School and Institutional Trust Lands Management
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 in the 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 consult with the
29 administration before 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:
35 Other Special Clauses:
37 Utah Code Sections Affected:
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
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
70 (ii) determine provisions for repayment of loans; [
71 (iii) establish criteria for determining eligibility for assistance under this part[
72 (iv) consult with the School and Institutional Trust Lands Administration before
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
89 (e) all possible additional sources of state and local revenue, including utility user
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
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.
182 (f) The administration is not subject to the fee agency requirements of Section
183 63J-1-504 .
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 [
195 involving trust lands and minerals approved by the board under Sections 53C-1-303 and
196 53C-2-401 , the administration may become a member of a limited 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 [
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 Subsection (2).
212 (b) [
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.
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
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
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
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
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.
323 the broad discretion and power granted to it in this title.
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
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
339 Section 53C-1-305 .
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.
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; [
368 (ii) establish fees, procedures, and rules consistent with general policies prescribed by
369 the board of trustees[
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
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 [
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.
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.
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.
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, [
443 (2) (a) [
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
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.
477 payment obligation under a lease, permit, or contract, the director may, at reasonable times,
478 places, and intervals:
480 records, or other documents of the lessee, permittee, or contractor; [
482 contract after reasonable notice or as provided in the lease, permit, or contract.
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
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 [
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 [
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.
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[
532 (2) surface occupancy or use upon a finding that continued use would cause resource
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;
562 authorized activities; or
564 for use of the land during the period of trespass[
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,
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
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 [
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
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) [
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
629 (i) a revocation of a withdrawal; or
630 (ii) the date an existing mineral lease is canceled, relinquished, surrendered, or
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, [
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
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 Permanent Community Impact Fund Board shall consult with the
708 administration before awarding the grants described in 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.
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
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, [
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
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.
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[
785 necessary patents to other proprietors and receive proper deeds for the lands exchanged.
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 [
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
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
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
855 (v) the estimated total annual revenue change that will result from the change in the
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
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) The School and Institutional Trust Lands Administration, established in 53C-1-201 ,
866 is exempt from the requirements of this section.
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 [
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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