Chief Sponsor: Melvin R. Brown

Senate Sponsor: Lyle W. Hillyard


9     General Description:
10          This bill addresses appropriation issues with the School and Institutional Trust Lands
11     Administration.
12     Highlighted Provisions:
13          This bill:
14          ▸     authorizes the School and Institutional Trust Lands Administration to transfer
15     money from one line item of appropriation to another line item, under certain
16     circumstances; and
17          ▸     makes technical changes.
18     Money Appropriated in this Bill:
19          None
20     Other Special Clauses:
21          None
22     Utah Code Sections Affected:
23     AMENDS:
24          53C-1-201, as last amended by Laws of Utah 2014, Chapter 426

26     Be it enacted by the Legislature of the state of Utah:
27          Section 1. Section 53C-1-201 is amended to read:
28          53C-1-201. Creation of administration -- Purpose -- Director -- Participation in
29     Risk Management Fund.

30          (1) (a) There is established within state government the School and Institutional Trust
31     Lands Administration.
32          (b) The administration shall manage all school and institutional trust lands and assets
33     within the state, except as otherwise provided in Title 53C, Chapter 3, Deposit and Allocation
34     of Revenue from Trust Lands, and Title 53D, Chapter 1, School and Institutional Trust Fund
35     Management Act.
36          (2) The administration is an independent state agency and not a division of any other
37     department.
38          (3) (a) It is subject to the usual legislative and executive department controls except as
39     provided in this Subsection (3).
40          (b) (i) The director may make rules as approved by the board that allow the
41     administration to classify a business proposal submitted to the administration as protected
42     under Section 63G-2-305, for as long as is necessary to evaluate the proposal.
43          (ii) The administration shall return the proposal to the party who submitted the
44     proposal, and incur no further duties under Title 63G, Chapter 2, Government Records Access
45     and Management Act, if the administration determines not to proceed with the proposal.
46          (iii) The administration shall classify the proposal pursuant to law if it decides to
47     proceed with the proposal.
48          (iv) Section 63G-2-403 does not apply during the review period.
49          (c) The director shall make rules in compliance with Title 63G, Chapter 3, Utah
50     Administrative Rulemaking Act, except that the administration is not subject to Subsections
51     63G-3-301(6) and (7) and Section 63G-3-601, and the director, with the board's approval, may
52     establish a procedure for the expedited approval of rules, based on written findings by the
53     director showing:
54          (i) the changes in business opportunities affecting the assets of the trust;
55          (ii) the specific business opportunity arising out of those changes which may be lost
56     without the rule or changes to the rule;
57          (iii) the reasons the normal procedures under Section 63G-3-301 cannot be met without

58     causing the loss of the specific opportunity;
59          (iv) approval by at least five board members; and
60          (v) that the director has filed a copy of the rule and a rule analysis, stating the specific
61     reasons and justifications for its findings, with the Division of Administrative Rules and
62     notified interested parties as provided in Subsection 63G-3-301(10).
63          (d) (i) The administration shall comply with Title 67, Chapter 19, Utah State Personnel
64     Management Act, except as provided in this Subsection (3)(d).
65          (ii) The board may approve, upon recommendation of the director, that exemption for
66     specific positions under Subsections 67-19-12(2) and 67-19-15(1) is required in order to enable
67     the administration to efficiently fulfill its responsibilities under the law. The director shall
68     consult with the executive director of the Department of Human Resource Management prior
69     to making such a recommendation.
70          (iii) The positions of director, deputy director, associate director, assistant director,
71     legal counsel appointed under Section 53C-1-305, administrative assistant, and public affairs
72     officer are exempt under Subsections 67-19-12(2) and 67-19-15(1).
73          (iv) Salaries for exempted positions, except for the director, shall be set by the director,
74     after consultation with the executive director of the Department of Human Resource
75     Management, within ranges approved by the board. The board and director shall consider
76     salaries for similar positions in private enterprise and other public employment when setting
77     salary ranges.
78          (v) The board may create an annual incentive and bonus plan for the director and other
79     administration employees designated by the board, based upon the attainment of financial
80     performance goals and other measurable criteria defined and budgeted in advance by the board.
81          (e) The administration shall comply with Title 63G, Chapter 6a, Utah Procurement
82     Code, except where the board approves, upon recommendation of the director, exemption from
83     the Utah Procurement Code, and simultaneous adoption of rules under Title 63G, Chapter 3,
84     Utah Administrative Rulemaking Act, for procurement, which enable the administration to
85     efficiently fulfill its responsibilities under the law.

86          (f) (i) Except as provided in Subsection (3)(f)(ii), the administration is not subject to
87     the fee agency requirements of Section 63J-1-504.
88          (ii) The following fees of the administration are subject to the requirements of Section
89     63J-1-504: application, assignment, amendment, affidavit for lost documents, name change,
90     reinstatement, grazing nonuse, extension of time, partial conveyance, patent reissue, collateral
91     assignment, electronic payment, and processing.
92          (g) (i) The administration is not subject to Subsection 63J-1-206(3)(f).
93          (ii) Before transferring appropriated funds between line items, the administration shall
94     submit a proposal to the board for its approval.
95          (iii) If the board gives approval to a proposal to transfer appropriated funds between
96     line items, the administration shall submit the proposal to the Legislative Executive
97     Appropriations Committee for its review and recommendations.
98          (iv) The Legislative Executive Appropriations Committee may recommend:
99          (A) that the administration transfer the appropriated funds between line items;
100          (B) that the administration not transfer the appropriated funds between line items; or
101          (C) to the governor that the governor call a special session of the Legislature to
102     supplement the appropriated budget for the administration.
103          (4) The administration is managed by a director of school and institutional trust lands
104     appointed by a majority vote of the board of trustees with the consent of the governor.
105          (5) (a) The board of trustees shall provide policies for the management of the
106     administration and for the management of trust lands and assets.
107          (b) The board shall provide policies for the ownership and control of Native American
108     remains that are discovered or excavated on school and institutional trust lands in consultation
109     with the Division of Indian Affairs and giving due consideration to Title 9, Chapter 9, Part 4,
110     Native American Grave Protection and Repatriation Act. The director may make rules in
111     accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, to implement
112     policies provided by the board regarding Native American remains.
113          (6) In connection with joint ventures and other transactions involving trust lands and

114     minerals approved under Sections 53C-1-303 and 53C-2-401, the administration, with board
115     approval, may become a member of a limited liability company under Title 48, Chapter 2c,
116     Utah Revised Limited Liability Company Act, or Title 48, Chapter 3a, Utah Revised Uniform
117     Limited Liability Company Act, as appropriate pursuant to Section 48-3a-1405 and is
118     considered a person under Section 48-2c-102 or Section 48-3a-102.
119          (7) Subject to the requirements of Subsection 63E-1-304(2), the administration may
120     participate in coverage under the Risk Management Fund created by Section 63A-4-201.