1     
REGIONAL SERVICE CENTER FUNDING AMENDMENTS

2     
2017 GENERAL SESSION

3     
STATE OF UTAH

4     
Chief Sponsor: Ralph Okerlund

5     
House Sponsor: ____________

6     

7     LONG TITLE
8     General Description:
9          This bill addresses funding for a regional service center.
10     Highlighted Provisions:
11          This bill:
12          ▸     directs the State Board of Education to prioritize funds allocated to the board from
13     the Mineral Lease Account for the provision of a regional service center.
14     Money Appropriated in this Bill:
15          None
16     Other Special Clauses:
17          None
18     Utah Code Sections Affected:
19     AMENDS:
20          59-21-2, as last amended by Laws of Utah 2016, Chapters 183 and 184
21     

22     Be it enacted by the Legislature of the state of Utah:
23          Section 1. Section 59-21-2 is amended to read:
24          59-21-2. Mineral Bonus Account created -- Contents -- Use of Mineral Bonus
25     Account money -- Mineral Lease Account created -- Contents -- Appropriation of money
26     from Mineral Lease Account.
27          (1) (a) There is created a restricted account within the General Fund known as the

28     "Mineral Bonus Account."
29          (b) The Mineral Bonus Account consists of federal mineral lease bonus payments
30     deposited pursuant to Subsection 59-21-1(3).
31          (c) The Legislature shall make appropriations from the Mineral Bonus Account in
32     accordance with Section 35 of the Mineral Lands Leasing Act of 1920, 30 U.S.C. Sec. 191.
33          (d) The state treasurer shall:
34          (i) invest the money in the Mineral Bonus Account by following the procedures and
35     requirements of Title 51, Chapter 7, State Money Management Act; and
36          (ii) deposit all interest or other earnings derived from the account into the Mineral
37     Bonus Account.
38          (e) The Division of Finance shall, beginning on July 1, 2017, annually deposit 30% of
39     mineral lease bonus payments deposited under Subsection (1)(b) from the previous fiscal year
40     into the Wildland Fire Suppression Fund created in Section 65A-8-204, up to $2,000,000 but
41     not to exceed 20% of the amount expended in the previous fiscal year from the Wildland Fire
42     Suppression Fund.
43          (2) (a) There is created a restricted account within the General Fund known as the
44     "Mineral Lease Account."
45          (b) The Mineral Lease Account consists of federal mineral lease money deposited
46     pursuant to Subsection 59-21-1(1).
47          (c) The Legislature shall make appropriations from the Mineral Lease Account as
48     provided in Subsection 59-21-1(1) and this Subsection (2).
49          (d) (i) Except as provided in Subsections (2)(d)(ii) and (iii), the Legislature shall
50     annually appropriate 32.5% of all deposits made to the Mineral Lease Account to the
51     Permanent Community Impact Fund established by Section 35A-8-303.
52          (ii) For fiscal year 2016-17 only and from the amount required to be deposited under
53     Subsection (2)(d)(i), the Legislature shall appropriate $26,000,000 of the deposits made to the
54     Mineral Lease Account to the Impacted Communities Transportation Development Restricted
55     Account established by Section 72-2-128.
56          (iii) For fiscal year 2017-18 only and from the amount required to be deposited under
57     Subsection (2)(d)(i), the Legislature shall appropriate $27,000,000 of the deposits made to the
58     Mineral Lease Account to the Impacted Communities Transportation Development Restricted

59     Account established by Section 72-2-128.
60          (e) (i) 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          (ii) The State Board of Education shall prioritize funds appropriated under Subsection
65     (2)(e)(i) for the provision of a regional service center described in Section 53A-3-429.
66          (f) The Legislature shall annually appropriate 2.25% of all deposits made to the
67     Mineral Lease Account to the Utah Geological Survey, to be used for activities carried on by
68     the survey having as a purpose the development and exploitation of natural resources in the
69     state.
70          (g) The Legislature shall annually appropriate 2.25% of all deposits made to the
71     Mineral Lease Account to the Water Research Laboratory at Utah State University, to be used
72     for activities carried on by the laboratory having as a purpose the development and exploitation
73     of water resources in the state.
74          (h) (i) The Legislature shall annually appropriate to the Department of Transportation
75     40% of all deposits made to the Mineral Lease Account to be distributed as provided in
76     Subsection (2)(h)(ii) to:
77          (A) counties;
78          (B) special service districts established:
79          (I) by counties;
80          (II) under Title 17D, Chapter 1, Special Service District Act; and
81          (III) for the purpose of constructing, repairing, or maintaining roads; or
82          (C) special service districts established:
83          (I) by counties;
84          (II) under Title 17D, Chapter 1, Special Service District Act; and
85          (III) for other purposes authorized by statute.
86          (ii) The Department of Transportation shall allocate the funds specified in Subsection
87     (2)(h)(i):
88          (A) in amounts proportionate to the amount of mineral lease money generated by each
89     county; and

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

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

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

183          (B) located on lands that are owned by:
184          (I) the Division of Parks and Recreation; or
185          (II) the Division of Wildlife Resources; and
186          (C) are not subject to taxation under:
187          (I) Chapter 2, Property Tax Act; or
188          (II) Chapter 4, Privilege Tax.
189          (k) The Legislature shall annually appropriate to the Permanent Community Impact
190     Fund all deposits remaining in the Mineral Lease Account after making the appropriations
191     provided for in Subsections (2)(d) through (j).
192          (3) (a) Each agency, board, institution of higher education, and political subdivision
193     receiving money under this chapter shall provide the Legislature, through the Office of the
194     Legislative Fiscal Analyst, with a complete accounting of the use of that money on an annual
195     basis.
196          (b) The accounting required under Subsection (3)(a) shall:
197          (i) include actual expenditures for the prior fiscal year, budgeted expenditures for the
198     current fiscal year, and planned expenditures for the following fiscal year; and
199          (ii) be reviewed by the Business, Economic Development, and Labor Appropriations
200     Subcommittee as part of its normal budgetary process under Title 63J, Chapter 1, Budgetary
201     Procedures Act.






Legislative Review Note
Office of Legislative Research and General Counsel