Senator Evan J. Vickers proposes the following substitute bill:


1     
WILDLAND FIRE SUPPRESSION FUND

2     
2016 GENERAL SESSION

3     
STATE OF UTAH

4     
Chief Sponsor: Evan J. Vickers

5     
House Sponsor: Joel K. Briscoe

6     

7     LONG TITLE
8     General Description:
9          This bill modifies the Wildland Fire Suppression Fund.
10     Highlighted Provisions:
11          This bill:
12          ▸     creates a source of funding for the Wildland Fire Suppression Fund;
13          ▸     modifies the structure of the Wildland Fire Suppression Fund; and
14          ▸     makes technical changes.
15     Money Appropriated in this Bill:
16          This bill appropriates:
17          ▸     to the Wildland Fire Suppression Fund, as a one-time appropriation:
18               •     from the Mineral Bonus Account, $2,000,000.
19     Other Special Clauses:
20          None
21     Utah Code Sections Affected:
22     AMENDS:
23          59-21-2, as last amended by Laws of Utah 2012, Chapters 212 and 242
24          63J-1-314, as last amended by Laws of Utah 2013, Chapter 295
25          63J-1-315, as last amended by Laws of Utah 2015, Chapter 283

26          63J-3-103, as last amended by Laws of Utah 2014, Chapter 63
27          63N-3-106, as renumbered and amended by Laws of Utah 2015, Chapter 283
28          65A-8-204, as renumbered and amended by Laws of Utah 2007, Chapter 136
29     

30     Be it enacted by the Legislature of the state of Utah:
31          Section 1. Section 59-21-2 is amended to read:
32          59-21-2. Mineral Bonus Account created -- Contents -- Use of Mineral Bonus
33     Account money -- Mineral Lease Account created -- Contents -- Appropriation of money
34     from Mineral Lease Account.
35          (1) (a) There is created a restricted account within the General Fund known as the
36     "Mineral Bonus Account."
37          (b) The Mineral Bonus Account consists of federal mineral lease bonus payments
38     deposited pursuant to Subsection 59-21-1(3).
39          (c) The Legislature shall make appropriations from the Mineral Bonus Account in
40     accordance with Section 35 of the Mineral Lands Leasing Act of 1920, 30 U.S.C. Sec. 191.
41          (d) The state treasurer shall:
42          (i) invest the money in the Mineral Bonus Account by following the procedures and
43     requirements of Title 51, Chapter 7, State Money Management Act; and
44          (ii) deposit all interest or other earnings derived from the account into the Mineral
45     Bonus Account.
46          (e) The Division of Finance shall, beginning on July 1, 2017, annually deposit 30% of
47     mineral lease bonus payments deposited under Subsection (1)(b) from the previous fiscal year
48     into the Wildland Fire Suppression Fund created in Section 65A-8-204, up to $2,000,000 but
49     not to exceed 20% of the amount expended in the previous fiscal year from the Wildland Fire
50     Suppression Fund.
51          (2) (a) There is created a restricted account within the General Fund known as the
52     "Mineral Lease Account."
53          (b) The Mineral Lease Account consists of federal mineral lease money deposited
54     pursuant to Subsection 59-21-1(1).
55          (c) The Legislature shall make appropriations from the Mineral Lease Account as
56     provided in Subsection 59-21-1(1) and this Subsection (2).

57          (d) The Legislature shall annually appropriate 32.5% of all deposits made to the
58     Mineral Lease Account to the Permanent Community Impact Fund established by Section
59     35A-8-303.
60          (e) The Legislature shall annually appropriate 2.25% of all deposits made to the
61     Mineral Lease Account to the State Board of Education, to be used for education research and
62     experimentation in the use of staff and facilities designed to improve the quality of education in
63     Utah.
64          (f) The Legislature shall annually appropriate 2.25% of all deposits made to the
65     Mineral Lease Account to the Utah Geological Survey, to be used for activities carried on by
66     the survey having as a purpose the development and exploitation of natural resources in the
67     state.
68          (g) The Legislature shall annually appropriate 2.25% of all deposits made to the
69     Mineral Lease Account to the Water Research Laboratory at Utah State University, to be used
70     for activities carried on by the laboratory having as a purpose the development and exploitation
71     of water resources in the state.
72          (h) (i) The Legislature shall annually appropriate to the Department of Transportation
73     40% of all deposits made to the Mineral Lease Account to be distributed as provided in
74     Subsection (2)(h)(ii) to:
75          (A) counties;
76          (B) special service districts established:
77          (I) by counties;
78          (II) under Title 17D, Chapter 1, Special Service District Act; and
79          (III) for the purpose of constructing, repairing, or maintaining roads; or
80          (C) special service districts established:
81          (I) by counties;
82          (II) under Title 17D, Chapter 1, Special Service District Act; and
83          (III) for other purposes authorized by statute.
84          (ii) The Department of Transportation shall allocate the funds specified in Subsection
85     (2)(h)(i):
86          (A) in amounts proportionate to the amount of mineral lease money generated by each
87     county; and

88          (B) to a county or special service district established by a county under Title 17D,
89     Chapter 1, Special Service District Act, as determined by the county legislative body.
90          (i) (i) The Legislature shall annually appropriate 5% of all deposits made to the
91     Mineral Lease Account to the Department of Workforce Services to be distributed to:
92          (A) special service districts established:
93          (I) by counties;
94          (II) under Title 17D, Chapter 1, Special Service District Act; and
95          (III) for the purpose of constructing, repairing, or maintaining roads; or
96          (B) special service districts established:
97          (I) by counties;
98          (II) under Title 17D, Chapter 1, Special Service District Act; and
99          (III) for other purposes authorized by statute.
100          (ii) The Department of Workforce Services may distribute the amounts described in
101     Subsection (2)(i)(i) only to special service districts established under Title 17D, Chapter 1,
102     Special Service District Act, by counties:
103          (A) of the third, fourth, fifth, or sixth class;
104          (B) in which 4.5% or less of the mineral lease money within the state is generated; and
105          (C) that are significantly socially or economically impacted as provided in Subsection
106     (2)(i)(iii) by the development of minerals under the Mineral Lands Leasing Act, 30 U.S.C. Sec.
107     181 et seq.
108          (iii) The significant social or economic impact required under Subsection (2)(i)(ii)(C)
109     shall be as a result of:
110          (A) the transportation within the county of hydrocarbons, including solid hydrocarbons
111     as defined in Section 59-5-101;
112          (B) the employment of persons residing within the county in hydrocarbon extraction,
113     including the extraction of solid hydrocarbons as defined in Section 59-5-101; or
114          (C) a combination of Subsections (2)(i)(iii)(A) and (B).
115          (iv) For purposes of distributing the appropriations under this Subsection (2)(i) to
116     special service districts established by counties under Title 17D, Chapter 1, Special Service
117     District Act, the Department of Workforce Services shall:
118          (A) (I) allocate 50% of the appropriations equally among the counties meeting the

119     requirements of Subsections (2)(i)(ii) and (iii); and
120          (II) allocate 50% of the appropriations based on the ratio that the population of each
121     county meeting the requirements of Subsections (2)(i)(ii) and (iii) bears to the total population
122     of all of the counties meeting the requirements of Subsections (2)(i)(ii) and (iii); and
123          (B) after making the allocations described in Subsection (2)(i)(iv)(A), distribute the
124     allocated revenues to special service districts established by the counties under Title 17D,
125     Chapter 1, Special Service District Act, as determined by the executive director of the
126     Department of Workforce Services after consulting with the county legislative bodies of the
127     counties meeting the requirements of Subsections (2)(i)(ii) and (iii).
128          (v) The executive director of the Department of Workforce Services:
129          (A) shall determine whether a county meets the requirements of Subsections (2)(i)(ii)
130     and (iii);
131          (B) shall distribute the appropriations under Subsection (2)(i)(i) to special service
132     districts established by counties under Title 17D, Chapter 1, Special Service District Act, that
133     meet the requirements of Subsections (2)(i)(ii) and (iii); and
134          (C) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
135     may make rules:
136          (I) providing a procedure for making the distributions under this Subsection (2)(i) to
137     special service districts; and
138          (II) defining the term "population" for purposes of Subsection (2)(i)(iv).
139          (j) (i) The Legislature shall annually make the following appropriations from the
140     Mineral Lease Account:
141          (A) an amount equal to 52 cents multiplied by the number of acres of school or
142     institutional trust lands, lands owned by the Division of Parks and Recreation, and lands owned
143     by the Division of Wildlife Resources that are not under an in lieu of taxes contract, to each
144     county in which those lands are located;
145          (B) to each county in which school or institutional trust lands are transferred to the
146     federal government after December 31, 1992, an amount equal to the number of transferred
147     acres in the county multiplied by a payment per acre equal to the difference between 52 cents
148     per acre and the per acre payment made to that county in the most recent payment under the
149     federal payment in lieu of taxes program, 31 U.S.C. Sec. 6901 et seq., unless the federal

150     payment was equal to or exceeded the 52 cents per acre, in which case a payment under this
151     Subsection (2)(j)(i)(B) may not be made for the transferred lands;
152          (C) to each county in which federal lands, which are entitlement lands under the federal
153     in lieu of taxes program, are transferred to the school or institutional trust, an amount equal to
154     the number of transferred acres in the county multiplied by a payment per acre equal to the
155     difference between the most recent per acre payment made under the federal payment in lieu of
156     taxes program and 52 cents per acre, unless the federal payment was equal to or less than 52
157     cents per acre, in which case a payment under this Subsection (2)(j)(i)(C) may not be made for
158     the transferred land; and
159          (D) to a county of the fifth or sixth class, an amount equal to the product of:
160          (I) $1,000; and
161          (II) the number of residences described in Subsection (2)(j)(iv) that are located within
162     the county.
163          (ii) A county receiving money under Subsection (2)(j)(i) may, as determined by the
164     county legislative body, distribute the money or a portion of the money to:
165          (A) special service districts established by the county under Title 17D, Chapter 1,
166     Special Service District Act;
167          (B) school districts; or
168          (C) public institutions of higher education.
169          (iii) (A) Beginning in fiscal year 1994-95 and in each year after fiscal year 1994-95, the
170     Division of Finance shall increase or decrease the amounts per acre provided for in Subsections
171     (2)(j)(i)(A) through (C) by the average annual change in the Consumer Price Index for all urban
172     consumers published by the Department of Labor.
173          (B) For fiscal years beginning on or after fiscal year 2001-02, the Division of Finance
174     shall increase or decrease the amount described in Subsection (2)(j)(i)(D)(I) by the average
175     annual change in the Consumer Price Index for all urban consumers published by the
176     Department of Labor.
177          (iv) Residences for purposes of Subsection (2)(j)(i)(D)(II) are residences that are:
178          (A) owned by:
179          (I) the Division of Parks and Recreation; or
180          (II) the Division of Wildlife Resources;

181          (B) located on lands that are owned by:
182          (I) the Division of Parks and Recreation; or
183          (II) the Division of Wildlife Resources; and
184          (C) are not subject to taxation under:
185          (I) Chapter 2, Property Tax Act; or
186          (II) Chapter 4, Privilege Tax.
187          (k) The Legislature shall annually appropriate to the Permanent Community Impact
188     Fund all deposits remaining in the Mineral Lease Account after making the appropriations
189     provided for in Subsections (2)(d) through (j).
190          (3) (a) Each agency, board, institution of higher education, and political subdivision
191     receiving money under this chapter shall provide the Legislature, through the Office of the
192     Legislative Fiscal Analyst, with a complete accounting of the use of that money on an annual
193     basis.
194          (b) The accounting required under Subsection (3)(a) shall:
195          (i) include actual expenditures for the prior fiscal year, budgeted expenditures for the
196     current fiscal year, and planned expenditures for the following fiscal year; and
197          (ii) be reviewed by the Business, Economic Development, and Labor Appropriations
198     Subcommittee as part of its normal budgetary process under Title 63J, Chapter 1, Budgetary
199     Procedures Act.
200          Section 2. Section 63J-1-314 is amended to read:
201          63J-1-314. Deposits related to the Wildland Fire Suppression Fund and the
202     Disaster Recovery Funding Act.
203          (1) As used in this section, "operating deficit" means that, at the end of the fiscal year,
204     the unassigned fund balance in the General Fund is less than zero.
205          (2) Except as provided under Subsection (3), at the end of each fiscal year, the Division
206     of Finance shall, after the transfer of General Fund revenue surplus has been made to the
207     Medicaid Growth Reduction and Budget Stabilization Account, as provided in Section
208     63J-1-315, and the General Fund Budget Reserve Account, as provided in Section 63J-1-312,
209     transfer:
210          (a) $4,000,000 to the Wildland Fire Suppression Fund created in Section 65A-8-204,
211     not to exceed the cap described in Subsection 65A-8-204(5); and

212          (b) an amount into the State Disaster Recovery Restricted Account, created in Section
213     53-2a-603, from the General Fund revenue surplus as defined in Section 63J-1-312, calculated
214     by:
215          [(a)] (i) determining the amount of General Fund revenue surplus after the transfer to
216     the Medicaid Growth Reduction and Budget Stabilization Account under Section 63J-1-315
217     [and], the General Fund Budget Reserve Account under Section 63J-1-312, and the transfer to
218     the Wildland Fire Suppression Fund as described in Subsection (2)(a);
219          [(b)] (ii) calculating an amount equal to the lesser of:
220          [(i)] (A) 25% of the amount determined under Subsection [(2)(a)] (2)(b)(ii); or
221          [(ii)] (B) 6% of the total of the General Fund appropriation amount for the fiscal year
222     in which the surplus occurs; and
223          [(c)] (iii) adding to the amount calculated under Subsection (2)(b)(ii) an amount equal
224     to the lesser of:
225          [(i)] (A) 25% more of the amount described in Subsection [(2)(a)] (2)(b)(i); or
226          [(ii)] (B) the amount necessary to replace, in accordance with this Subsection [(2)(c)]
227     (2)(b)(iii), any amount appropriated from the State Disaster Recovery Restricted Account
228     within 10 fiscal years before the fiscal year in which the surplus occurs if:
229          [(A)] (I) a surplus exists; and
230          [(B)] (II) the Legislature appropriates money from the State Disaster Recovery
231     Restricted Account that is not replaced by appropriation or as provided in this Subsection
232     [(2)(c)] (2)(b)(iii).
233          (3) Notwithstanding Subsection (2), if, at the end of a fiscal year, the Division of
234     Finance determines that an operating deficit exists, the division shall reduce the transfer to the
235     State Disaster Recovery Restricted Account by the amount necessary to eliminate the operating
236     deficit.
237          Section 3. Section 63J-1-315 is amended to read:
238          63J-1-315. Medicaid Growth Reduction and Budget Stabilization Account --
239     Transfers of Medicaid growth savings -- Base budget adjustments.
240          (1) As used in this section:
241          (a) "Department" means the Department of Health created in Section 26-1-4.
242          (b) "Division" means the Division of Health Care Financing created within the

243     department under Section 26-18-2.1.
244          (c) "General Fund revenue surplus" means a situation where actual General Fund
245     revenues collected in a completed fiscal year exceed the estimated revenues for the General
246     Fund for that fiscal year that were adopted by the Executive Appropriations Committee of the
247     Legislature.
248          (d) "Medicaid growth savings" means the Medicaid growth target minus Medicaid
249     program expenditures, if Medicaid program expenditures are less than the Medicaid growth
250     target.
251          (e) "Medicaid growth target" means Medicaid program expenditures for the previous
252     year multiplied by 1.08.
253          (f) "Medicaid program" is as defined in Section 26-18-2.
254          (g) "Medicaid program expenditures" means total state revenue expended for the
255     Medicaid program from the General Fund, including restricted accounts within the General
256     Fund, during a fiscal year.
257          (h) "Medicaid program expenditures for the previous year" means total state revenue
258     expended for the Medicaid program from the General Fund, including restricted accounts
259     within the General Fund, during the fiscal year immediately preceding a fiscal year for which
260     Medicaid program expenditures are calculated.
261          (i) "Operating deficit" means that, at the end of the fiscal year, the unassigned fund
262     balance in the General Fund is less than zero.
263          (j) "State revenue" means revenue other than federal revenue.
264          (k) "State revenue expended for the Medicaid program" includes money transferred or
265     appropriated to the Medicaid Growth Reduction and Budget Stabilization Account only to the
266     extent the money is appropriated for the Medicaid program by the Legislature.
267          (2) There is created within the General Fund a restricted account to be known as the
268     Medicaid Growth Reduction and Budget Stabilization Account.
269          (3) (a) (i) Except as provided in Subsection (6), if, at the end of a fiscal year, there is a
270     General Fund revenue surplus, the Division of Finance shall transfer an amount equal to
271     Medicaid growth savings from the General Fund to the Medicaid Growth Reduction and
272     Budget Stabilization Account.
273          (ii) If the amount transferred is reduced to prevent an operating deficit, as provided in

274     Subsection (6), the Legislature shall include, to the extent revenue is available, an amount
275     equal to the reduction as an appropriation from the General Fund to the account in the base
276     budget for the second fiscal year following the fiscal year for which the reduction was made.
277          (b) If, at the end of a fiscal year, there is not a General Fund revenue surplus, the
278     Legislature shall include, to the extent revenue is available, an amount equal to Medicaid
279     growth savings as an appropriation from the General Fund to the account in the base budget for
280     the second fiscal year following the fiscal year for which the reduction was made.
281          (c) Subsections (3)(a) and (3)(b) apply only to the fiscal year in which the department
282     implements the proposal developed under Section 26-18-405 to reduce the long-term growth in
283     state expenditures for the Medicaid program, and to each fiscal year after that year.
284          (4) The Division of Finance shall calculate the amount to be transferred under
285     Subsection (3):
286          (a) before transferring revenue from the General Fund revenue surplus to:
287          (i) the General Fund Budget Reserve Account under Section 63J-1-312; [and]
288          (ii) the Wildland Fire Suppression Fund created in Section 65A-8-204, as described in
289     Section 63J-1-314; and
290          [(ii)] (iii) the State Disaster Recovery Restricted Account under Section 63J-1-314;
291          (b) before earmarking revenue from the General Fund revenue surplus to the Industrial
292     Assistance Account under Section 63N-3-106; and
293          (c) before making any other year-end contingency appropriations, year-end set-asides,
294     or other year-end transfers required by law.
295          (5) (a) If, at the close of any fiscal year, there appears to be insufficient money to pay
296     additional debt service for any bonded debt authorized by the Legislature, the Division of
297     Finance may hold back from any General Fund revenue surplus money sufficient to pay the
298     additional debt service requirements resulting from issuance of bonded debt that was
299     authorized by the Legislature.
300          (b) The Division of Finance may not spend the hold back amount for debt service
301     under Subsection (5)(a) unless and until it is appropriated by the Legislature.
302          (c) If, after calculating the amount for transfer under Subsection (3), the remaining
303     General Fund revenue surplus is insufficient to cover the hold back for debt service required by
304     Subsection (5)(a), the Division of Finance shall reduce the transfer to the Medicaid Growth

305     Reduction and Budget Stabilization Account by the amount necessary to cover the debt service
306     hold back.
307          (d) Notwithstanding Subsections (3) and (4), the Division of Finance shall hold back
308     the General Fund balance for debt service authorized by this Subsection (5) before making any
309     transfers to the Medicaid Growth Reduction and Budget Stabilization Account or any other
310     designation or allocation of General Fund revenue surplus.
311          (6) Notwithstanding Subsections (3) and (4), if, at the end of a fiscal year, the Division
312     of Finance determines that an operating deficit exists and that holding back earmarks to the
313     Industrial Assistance Account under Section 63N-3-106, transfers to the Wildland Fire
314     Suppression Fund and State Disaster Recovery Restricted Account under Section 63J-1-314,
315     transfers to the General Fund Budget Reserve Account under Section 63J-1-312, or earmarks
316     and transfers to more than one of those accounts, in that order, does not eliminate the operating
317     deficit, the Division of Finance may reduce the transfer to the Medicaid Growth Reduction and
318     Budget Stabilization Account by the amount necessary to eliminate the operating deficit.
319          (7) The Legislature may appropriate money from the Medicaid Growth Reduction and
320     Budget Stabilization Account only:
321          (a) if Medicaid program expenditures for the fiscal year for which the appropriation is
322     made are estimated to be 108% or more of Medicaid program expenditures for the previous
323     year; and
324          (b) for the Medicaid program.
325          (8) The Division of Finance shall deposit interest or other earnings derived from
326     investment of Medicaid Growth Reduction and Budget Stabilization Account money into the
327     General Fund.
328          Section 4. Section 63J-3-103 is amended to read:
329          63J-3-103. Definitions.
330          As used in this chapter:
331          (1) (a) "Appropriations" means actual unrestricted capital and operating appropriations
332     from unrestricted General Fund and Education Fund sources.
333          (b) "Appropriations" includes appropriations that are contingent upon available
334     surpluses in the General Fund and Education Fund.
335          (c) "Appropriations" does not mean:

336          (i) public education expenditures;
337          (ii) Utah Education and Telehealth Network expenditures in support of public
338     education;
339          (iii) Utah College of Applied Technology expenditures in support of public education;
340          (iv) Tax Commission expenditures related to collection of income taxes in support of
341     public education;
342          (v) debt service expenditures;
343          (vi) emergency expenditures;
344          (vii) expenditures from all other fund or subfund sources;
345          (viii) transfers or appropriations from the Education Fund to the Uniform School Fund;
346          (ix) transfers into, or appropriations made to, the General Fund Budget Reserve
347     Account established in Section 63J-1-312;
348          (x) transfers into, or appropriations made to, the Education Budget Reserve Account
349     established in Section 63J-1-313;
350          (xi) transfers in accordance with Section 63J-1-314 into, or appropriations made to the
351     Wildland Fire Suppression Fund created in Section 65A-8-204 or the State Disaster Recovery
352     Restricted Account created in Section 53-2a-603;
353          (xii) money appropriated to fund the total one-time project costs for the construction of
354     capital developments as defined in Section 63A-5-104;
355          (xiii) transfers or deposits into or appropriations made to the Centennial Highway Fund
356     created by Section 72-2-118;
357          (xiv) transfers or deposits into or appropriations made to the Transportation Investment
358     Fund of 2005 created by Section 72-2-124;
359          (xv) transfers or deposits into or appropriations made to:
360          (A) the Department of Transportation from any source; or
361          (B) any transportation-related account or fund from any source; or
362          (xvi) supplemental appropriations from the General Fund to the Division of Forestry,
363     Fire, and State Lands to provide money for wildland fire control expenses incurred during the
364     current or previous fire years.
365          (2) "Base year real per capita appropriations" means the result obtained for the state by
366     dividing the fiscal year 1985 actual appropriations of the state less debt money by:

367          (a) the state's July 1, 1983 population; and
368          (b) the fiscal year 1983 inflation index divided by 100.
369          (3) "Calendar year" means the time period beginning on January 1 of any given year
370     and ending on December 31 of the same year.
371          (4) "Fiscal emergency" means an extraordinary occurrence requiring immediate
372     expenditures and includes the settlement under Laws of Utah 1988, Fourth Special Session,
373     Chapter 4.
374          (5) "Fiscal year" means the time period beginning on July 1 of any given year and
375     ending on June 30 of the subsequent year.
376          (6) "Fiscal year 1985 actual base year appropriations" means fiscal year 1985 actual
377     capital and operations appropriations from General Fund and non-Uniform School Fund
378     income tax revenue sources, less debt money.
379          (7) "Inflation index" means the change in the general price level of goods and services
380     as measured by the Gross National Product Implicit Price Deflator of the Bureau of Economic
381     Analysis, U.S. Department of Commerce calculated as provided in Section 63J-3-202.
382          (8) (a) "Maximum allowable appropriations limit" means the appropriations that could
383     be, or could have been, spent in any given year under the limitations of this chapter.
384          (b) "Maximum allowable appropriations limit" does not mean actual appropriations
385     spent or actual expenditures.
386          (9) "Most recent fiscal year's inflation index" means the fiscal year inflation index two
387     fiscal years previous to the fiscal year for which the maximum allowable inflation and
388     population appropriations limit is being computed under this chapter.
389          (10) "Most recent fiscal year's population" means the fiscal year population two fiscal
390     years previous to the fiscal year for which the maximum allowable inflation and population
391     appropriations limit is being computed under this chapter.
392          (11) "Population" means the number of residents of the state as of July 1 of each year
393     as calculated by the Governor's Office of Management and Budget according to the procedures
394     and requirements of Section 63J-3-202.
395          (12) "Revenues" means the revenues of the state from every tax, penalty, receipt, and
396     other monetary exaction and interest connected with it that are recorded as unrestricted revenue
397     of the General Fund and from non-Uniform School Fund income tax revenues, except as

398     specifically exempted by this chapter.
399          (13) "Security" means any bond, note, warrant, or other evidence of indebtedness,
400     whether or not the bond, note, warrant, or other evidence of indebtedness is or constitutes an
401     "indebtedness" within the meaning of any provision of the constitution or laws of this state.
402          Section 5. Section 63N-3-106 is amended to read:
403          63N-3-106. Loans, grants, and assistance -- Repayment -- Earned credits.
404          (1) (a) A company that qualifies under Section 63N-3-105 may receive loans, grants, or
405     other financial assistance from the Industrial Assistance Account for expenses related to
406     establishment, relocation, or development of industry in Utah.
407          (b) A company creating an economic impediment that qualifies under Section
408     63N-3-108 may in accordance with this part receive loans, grants, or other financial assistance
409     from the restricted account for the expenses of the company creating an economic impediment
410     related to:
411          (i) relocation to a rural area in Utah of the company creating an economic impediment;
412     and
413          (ii) the siting of a replacement company.
414          (c) An entity offering an economic opportunity that qualifies under Section 63N-3-109
415     may:
416          (i) receive loans, grants, or other financial assistance from the restricted account for
417     expenses related to the establishment, relocation, retention, or development of industry in the
418     state; and
419          (ii) include infrastructure or other economic development precursor activities that act
420     as a catalyst and stimulus for economic activity likely to lead to the maintenance or
421     enlargement of the state's tax base.
422          (2) (a) Subject to Subsection (2)(b), the administrator has authority to determine the
423     structure, amount, and nature of any loan, grant, or other financial assistance from the restricted
424     account.
425          (b) Loans made under Subsection (2)(a) shall be structured so the intended repayment
426     or return to the state, including cash or credit, equals at least the amount of the assistance
427     together with an annual interest charge as negotiated by the administrator.
428          (c) Payments resulting from grants awarded from the restricted account shall be made

429     only after the administrator has determined that the company has satisfied the conditions upon
430     which the payment or earned credit was based.
431          (3) (a) (i) Except as provided in Subsection (3)(b), the administrator may provide for a
432     system of earned credits that may be used to support grant payments or in lieu of cash
433     repayment of a restricted account loan obligation.
434          (ii) The value of the credits described in Subsection (3)(a)(i) shall be based on factors
435     determined by the administrator, including:
436          (A) the number of Utah jobs created;
437          (B) the increased economic activity in Utah; or
438          (C) other events and activities that occur as a result of the restricted account assistance.
439          (b) (i) The administrator shall provide for a system of credits to be used to support
440     grant payments or in lieu of cash repayment of a restricted account loan when loans are made to
441     a company creating an economic impediment.
442          (ii) The value of the credits described in Subsection (3)(b)(i) shall be based on factors
443     determined by the administrator, including:
444          (A) the number of Utah jobs created;
445          (B) the increased economic activity in Utah; or
446          (C) other events and activities that occur as a result of the restricted account assistance.
447          (4) (a) A cash loan repayment or other cash recovery from a company receiving
448     assistance under this section, including interest, shall be deposited into the restricted account.
449          (b) The administrator and the Division of Finance shall determine the manner of
450     recognizing and accounting for the earned credits used in lieu of loan repayments or to support
451     grant payments as provided in Subsection (3).
452          (5) (a) (i) At the end of each fiscal year, the Division of Finance shall set aside the
453     balance of the General Fund revenue surplus as defined in Section 63J-1-312 after the transfers
454     of General Fund revenue surplus described in Subsection (5)(b) to the Industrial Assistance
455     Account in an amount equal to any credit that has accrued under this part.
456          (ii) The set aside under Subsection (5)(a)(i) shall be capped at $50,000,000, at which
457     time no subsequent contributions may be made and any interest accrued above the $50,000,000
458     cap shall be deposited into the General Fund.
459          (b) The set aside required by Subsection (5)(a) shall be made after the transfer of

460     surplus General Fund revenue surplus is made:
461          (i) to the Medicaid Growth Reduction and Budget Stabilization Restricted Account, as
462     provided in Section 63J-1-315;
463          (ii) to the General Fund Budget Reserve Account, as provided in Section 63J-1-312;
464     and
465          (iii) to the Wildland Fire Suppression Fund or State Disaster Recovery Restricted
466     Account, as provided in Section 63J-1-314.
467          (c) These credit amounts may not be used for purposes of the restricted account as
468     provided in this part until appropriated by the Legislature.
469          Section 6. Section 65A-8-204 is amended to read:
470          65A-8-204. Wildland Fire Suppression Fund created.
471          (1) There is created [a private-purpose trust] an expendable special revenue fund
472     known as the "Wildland Fire Suppression Fund."
473          (2) The fund shall be administered by the division to pay [fire] wildfire suppression
474     [and presuppression] costs on eligible lands [within unincorporated areas of counties].
475          (3) The contents of the fund shall include:
476          [(a) payments by counties pursuant to written agreements made under Section
477     65A-8-205;]
478          (a) the balance of the fund as of July 1, 2016;
479          (b) money deposited by the Division of Finance, pursuant to Section 59-21-2;
480          (c) money transferred by the Division of Finance, pursuant to Section 63J-1-312;
481          (d) costs recovered from successful investigations;
482          (e) federal funds received by the division for wildfire management costs;
483          (f) suppression costs paid to the division from another state agency;
484          (g) costs recovered from settlements and civil actions related to wildfire suppression;
485          [(b)] (h) interest and earnings from the investment of fund money; and
486          [(c)] (i) money appropriated by the Legislature.
487          (4) Fund money shall be invested by the state treasurer with the earnings and interest
488     accruing to the fund.
489          (5) [(a)] A maximum level of [$8,000,000] $12,000,000 is established for the fund.
490          [(b) (i) Except as provided in Subsection (5)(b)(ii), if the amount of money in the fund

491     equals or exceeds $8,000,000 on March 31, no assessments may be charged for the following
492     year.]
493          [(ii) The waiver of assessments provided in Subsection (5)(b)(i) does not apply to any
494     equity payment required by Section 65A-8-205.]
495          Section 7. Appropriation.
496          Under the terms and conditions of Utah Code Title 63J Chapter 1, Budgetary
497     Procedures Act, for the fiscal year beginning July 1, 2016, and ending June 30, 2017, the
498     following sums of money are appropriated from resources not otherwise appropriated, or
499     reduced from amounts previously appropriated, out of the funds or accounts indicated. These
500     are additions to amounts previously appropriated for fiscal year 2017.
501          To Wildland Fire Suppression Fund
502               From Mineral Bonus Account -- One-time
$2,000,000

503               Schedule of Programs:
504                    Wildland Fire Suppression Fund          $2,000,000