Chief Sponsor: Margaret Dayton

House Sponsor: Mike K. McKell


9     General Description:
10          This bill modifies Title 53C, School and Institutional Trust Lands Management Act, by
11     changing procedures related to the withdrawal of lands, mineral lease applications, and
12     reporting.
13     Highlighted Provisions:
14          This bill:
15          ▸     amends the circumstances in which the director of the School and Institutional Trust
16     Lands Administration may withdraw land;
17          ▸     clarifies that mineral lease applications may be submitted and processed online;
18          ▸     states that the School and Institutional Trust Lands Administration and School and
19     Institutional Trust Fund Office shall enter into a memorandum of understanding
20     regarding the sources of money received; and
21          ▸     makes technical changes.
22     Money Appropriated in this Bill:
23          None
24     Other Special Clauses:
25          None
26     Utah Code Sections Affected:
27     AMENDS:

28          53C-2-105, as last amended by Laws of Utah 2011, Chapter 247
29          53C-2-301, as last amended by Laws of Utah 2011, Chapter 247
30          53C-2-407, as last amended by Laws of Utah 2011, Chapter 247
31          53C-3-102, as last amended by Laws of Utah 2014, Chapter 426

33     Be it enacted by the Legislature of the state of Utah:
34          Section 1. Section 53C-2-105 is amended to read:
35          53C-2-105. Withdrawal of trust lands from leasing, disposition, or use.
36          (1) The director may at any time withdraw trust lands from:
37          [(1)] (a) applications for leasing, permitting, sale, or other disposition of any nature
38     upon a finding that the interests of the trust would best be served through withdrawal; or
39          [(2)] (b) surface occupancy or [use] one or more specific uses upon a finding that
40     continued occupancy or use would cause:
41          (i) resource degradation[.];
42          (ii) interference with the activities of the administration or the administration's
43     authorized lessees or permittees; or
44          (iii) a threat to public safety.
45          (2) The director may, by rule and subject to Subsection (3), withdraw trust lands from
46     public target shooting.
47          (3) Before board review of a rule, as described in Subsection 53C-1-303(1)(c), that
48     withdraws land from public target shooting, the director shall consult with:
49          (a) the sheriff of the county where the proposed withdrawal will occur; and
50          (b) representatives from leading sports shooting organizations.
51          Section 2. Section 53C-2-301 is amended to read:
52          53C-2-301. Trespassing on trust lands -- Penalties.
53          (1) A person is liable for the civil damages prescribed in Subsection (2) and, unless a
54     greater penalty is prescribed in another part of the law, is guilty of a class B misdemeanor if the
55     person, without written authorization from the director:
56          (a) removes, extracts, uses, consumes, or destroys any mineral resource, gravel, sand,
57     soil, vegetation, water resource, or improvement on trust lands;
58          (b) grazes livestock on trust lands;

59          (c) uses, occupies, or constructs improvements or structures on trust lands;
60          (d) uses or occupies trust lands for more than 30 days after the cancellation or
61     expiration of written authorization;
62          (e) knowingly and willfully uses trust lands for commercial gain;
63          (f) appropriates, alters, injures, or destroys any improvement or any historical,
64     prehistorical, archaeological, or paleontological resource on trust lands;
65          (g) trespasses upon, uses, commits waste, dumps refuse, or occupies trust land;
66          (h) interferes with the activities of an employee or agent of the administration on trust
67     lands; or
68          (i) interferes with activities of a lessee or other person [which] that have been
69     authorized by the administration, whether or not the trust land has been withdrawn from
70     occupancy or use pursuant to Subsection 53C-2-105(1)(b).
71          (2) A person who commits any act described in Subsection (1) is liable for damages in
72     the amount of whichever of the following is greatest:
73          (a) three times the value at the point of sale of the mineral or other resource removed,
74     destroyed, or extracted;
75          (b) three times the amount of damage committed;
76          (c) three times the cost to cure the damage;
77          (d) three times the value of any losses suffered as a result of interference with
78     authorized activities; or
79          (e) three times the consideration which would have been charged by the director for
80     use of the land during the period of trespass.
81          (3) In addition to the damages described in Subsection (2), a person found guilty of a
82     criminal act under Subsection (1) is subject to the penalties provided in Title 76, Chapter 3,
83     Punishments.
84          (4) The director shall deposit money collected under this section in the fund in which
85     like revenues from that land would be deposited.
86          (5) The director may award a portion of any of the damages collected under this section
87     in excess of actual damages to the general fund of the county in which the trespass occurred as
88     a reward for county assistance in the apprehension and prosecution of the trespassing party.
89          Section 3. Section 53C-2-407 is amended to read:

90          53C-2-407. Mineral lease application procedures.
91          (1) Lands that are not encumbered by a current mineral lease for the same resource, a
92     withdrawal order, or other rule of the director prohibiting the lease of the lands, may be offered
93     for lease as provided in this section or may, with board approval, be committed to another
94     contractual arrangement under Subsection 53C-2-401(1)(d).
95          (2) (a) A notice of the land available for leasing shall be posted in the administration's
96     office or on the administration's website.
97          (b) The notice shall:
98          (i) describe the land;
99          (ii) indicate what mineral interest in each tract is available for leasing; and
100          (iii) state the last date, which shall be no less than 15 days after the notice is posted, on
101     which bids may be received.
102          (3) (a) Applications for the lease of lands filed in the administration's office or online
103     before the closing date stated in the notice shall be considered to be filed simultaneously.
104          (b) The applications shall be:
105          (i) submitted in sealed envelopes or as required by the online bidding process; and
106          (ii) [opened] disclosed in the administration's office at 10 a.m. of the first business day
107     following the last day on which bids may be received.
108          (c) Leases shall be awarded to the highest responsible, qualified bidder, in terms of the
109     bonus paid in addition to the first year's rental, who submitted a bid in the manner required.
110          (d) In cases of identical bids of successful bidders:
111          (i) the right to lease shall be determined by drawing or oral auction;
112          (ii) the determination of whether to award the lease by drawing or oral auction shall be
113     made at the sole discretion of the director; and
114          (iii) the drawing or oral auction shall be held in public at the administration's office in a
115     manner calculated to optimize the return to the trust land beneficiary.
116          (4) (a) At the discretion of the director, mineral leases may be offered at an oral public
117     auction.
118          (b) The director may set a minimum bid for a public auction.
119          (5) The director may award a mineral lease without following the competitive bidding
120     procedures specified in Subsections (3) and (4) or conducting an oral public auction, if the

121     mineral lessee waives or relinquishes to the trust a prior mining claim, mineral lease, or other
122     right which in the opinion of the director might otherwise:
123          (a) defeat or encumber the selection of newly acquired land, either for indemnity or
124     other purposes, or the acquisition by the trust of any land; or
125          (b) cloud the title to any of those lands.
126          (6) Following the awarding of a lease to a successful bidder, deposits, except filing
127     fees, made by unsuccessful bidders shall be returned to those bidders.
128          (7) (a) Subject to Section 53C-2-104, lands acquired through exchange or indemnity
129     selection from the federal government shall be subject to the vested rights of unpatented
130     mining claimants under the Mining Law of 1872, as amended, and other federal vested rights,
131     both surface and minerals.
132          (b) Subsection (7)(a) does not prevent the director from negotiating the
133     accommodation of vested rights through any method acceptable to the parties.
134          (8) The director may lease lands [in the order in] for which applications are filed or
135     submitted online if:
136          (a) the director offers trust lands for lease for mineral purposes according to the
137     procedures in Subsections (3) through (6) and the lands are not leased; or
138          (b) a period of time of not less than one year but less than three years has elapsed
139     following:
140          (i) a revocation of a withdrawal; or
141          (ii) the date an existing mineral lease is canceled, relinquished, surrendered, or
142     terminated.
143          Section 4. Section 53C-3-102 is amended to read:
144          53C-3-102. Deposit and allocation of money received.
145          (1) (a) The director shall pay to the School and Institutional Trust Fund Office, created
146     in Section 53D-1-201, all money received, accompanied by a statement showing the respective
147     sources of this money.
148          [(b) Each source shall be classified as to sales, rentals, royalties, interest, fees,
149     penalties, and forfeitures.]
150          (b) The administration and the School and Institutional Trust Fund Office shall enter
151     into a memorandum of understanding detailing:

152          (i) the classification of sources of money; and
153          (ii) other relevant information, as determined by the administration and the School and
154     Institutional Trust Fund Office.
155          (2) All money received from the sale of lands granted by Section 6 of the Utah
156     Enabling Act for the support of the common schools, all money received from the sale of lands
157     selected in lieu of those lands, all money received from the United States under Section 9 of the
158     Utah Enabling Act, all money received from the sale of lands or other securities acquired by the
159     state from the investment of those funds, all sums paid for fees, all forfeitures, and all penalties
160     paid in connection with these sales shall be deposited in the Permanent State School Fund.
161          (3) All money received from the sale or other disposition of institutional trust lands
162     granted to the state by the United States under Section 7, 8, or 12 of the Utah Enabling Act, and
163     all sums paid for fees, forfeitures, and penalties received in connection with these sales or
164     dispositions shall go to the respective permanent funds established for the benefit of those
165     institutions under the Utah Enabling Act and the Utah Constitution.
166          (4) (a) All lands acquired by the state through foreclosure of mortgages securing school
167     or institutional trust funds or through deeds from mortgagors or owners of those lands shall
168     become a part of the respective school or institutional trust lands.
169          (b) All money received from these lands shall be treated as money received from
170     school or institutional trust lands.
171          (5) All money received from the sale of lands acquired by the state through foreclosure
172     of mortgages securing trust funds or through deeds from mortgagors or owners of such lands,
173     whether a profit is realized or a loss sustained on the principal invested, shall be regarded as
174     principal and shall go into the principal or permanent fund from which it was originally taken
175     in reimbursement of that fund, with profits being used to offset losses.
176          (6) (a) All money received by the director as a first or down payment on applications to
177     purchase, permit, or lease trust lands or minerals shall be paid to the state treasurer and held in
178     suspense pending final action on those applications.
179          (b) After final action the payments received under Subsection (6)(a) shall either be
180     credited to the appropriate fund or account, or refunded to the applicant in accordance with the
181     action taken.

Legislative Review Note
Office of Legislative Research and General Counsel