1     
Corrected Version

2     
BRINE SHRIMP ROYALTY AMENDMENTS

3     
2018 GENERAL SESSION

4     
STATE OF UTAH

5     
Chief Sponsor: Stewart E. Barlow

6     
Senate Sponsor: David P. Hinkins

7     

8     LONG TITLE
9     General Description:
10          This bill modifies the Brine Shrimp Royalty Act by amending provisions relating to the
11     brine shrimp royalty.
12     Highlighted Provisions:
13          This bill:
14          ▸     reduces the royalty rate on the total number of pounds of unprocessed brine shrimp
15     eggs that a person harvests within the state during a tax year;
16          ▸     amends the distribution of the revenue generated by the brine shrimp royalty;
17          ▸     requires revenue generated by the brine shrimp royalty that is deposited in the
18     Sovereign Lands Management Account to be used for certain purposes; and
19          ▸     makes technical changes.
20     Money Appropriated in this Bill:
21          This bill appropriates in fiscal year 2019:
22          ▸     to the Department of Natural Resources -- Division of Foresty, Fire, and State Lands
23     -- Project Management, as an ongoing appropriation:
24               •     from the General Fund Restricted -- Sovereign Lands Management, $125,000.
25     Other Special Clauses:
26          This bill provides a special effective date.
27     Utah Code Sections Affected:
28     AMENDS:

29          59-23-4, as last amended by Laws of Utah 2016, Chapter 135
30          65A-5-1, as last amended by Laws of Utah 2014, Chapter 313
31     

32     Be it enacted by the Legislature of the state of Utah:
33          Section 1. Section 59-23-4 is amended to read:
34          59-23-4. Brine shrimp royalty -- Royalty rate -- Commission to prepare billing
35     statement -- Deposit of revenue.
36          (1) A person shall pay for each tax year a brine shrimp royalty of [3.75] 3.25 cents
37     multiplied by the total number of pounds of unprocessed brine shrimp eggs that the person
38     harvests within the state during the tax year.
39          (2) (a) A person that harvests unprocessed brine shrimp eggs shall report to the
40     Department of Natural Resources the total number of pounds of unprocessed brine shrimp eggs
41     harvested by that person for that tax year on or before the February 15 immediately following
42     the last day of that tax year.
43          (b) The Department of Natural Resources shall provide the following information to
44     the commission on or before the March 1 immediately following the last day of a tax year:
45          (i) the total number of pounds of unprocessed brine shrimp eggs harvested for that tax
46     year; and
47          (ii) for each person that harvested unprocessed brine shrimp eggs for that tax year:
48          (A) the total number of pounds of unprocessed brine shrimp eggs harvested by that
49     person for that tax year; and
50          (B) a current billing address for that person; and
51          (iii) any additional information required by the commission.
52          (c) (i) The commission shall prepare and mail a billing statement to each person that
53     harvested unprocessed brine shrimp eggs in a tax year by the March 30 immediately following
54     the last day of a tax year.
55          (ii) The billing statement under Subsection (2)(c)(i) shall specify:

56          (A) the total number of pounds of unprocessed brine shrimp eggs harvested by that
57     person for that tax year;
58          (B) the brine shrimp royalty that the person owes; and
59          (C) the date that the brine shrimp royalty payment is due as provided in Section
60     59-23-5.
61          (d) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
62     commission may make rules prescribing the information required under Subsection (2)(b)(iii).
63          (3) Revenue generated by the brine shrimp royalty shall be deposited [in the Species
64     Protection Account created in Section 79-2-303.] as follows:
65          (a) $125,000 of the revenue generated by the brine shrimp royalty shall be deposited in
66     the Sovereign Lands Management Account created in Section 65A-5-1; and
67          (b) the remainder of the revenue generated by the brine shrimp royalty shall be
68     deposited in the Species Protection Account created in Section 79-2-303.
69          Section 2. Section 65A-5-1 is amended to read:
70          65A-5-1. Sovereign Lands Management Account -- Creation -- Contents --
71     Appropriation to fund division expenses.
72          (1) There is created within the General Fund a restricted account known as the
73     Sovereign Lands Management Account.
74          (2) The account shall consist of the following:
75          (a) all revenues derived from sovereign lands;
76          (b) that portion of all revenues derived from mineral leases on other lands managed by
77     the division necessary to recover management costs; [and]
78          (c) any fees deposited by the division[.]; and
79          (d) amounts deposited into the account in accordance with Section 59-23-4.
80          (3) All expenditures of the division relating directly to the management of state lands
81     shall be funded by appropriation by the Legislature from the Sovereign Lands Management
82     Account or other sources.

83          (4) The Legislature may appropriate funds in the account to reimburse one or more
84     state government entities for money spent on the operation of national parks, national
85     monuments, national forests, and national recreation areas in the state during a fiscal
86     emergency, as defined in Section 79-4-1102.
87          (5) The division shall use the amount deposited into the account under Subsection
88     (2)(d) for the Great Salt Lake as described in Section 65A-10-8 as directed by the Great Salt
89     Lake Advisory Council created in Section 73-30-201.
90          Section 3. Appropriation.
91          The following sums of money are appropriated for the fiscal year beginning July 1,
92     2018, and ending June 30, 2019. These are additions to amounts previously appropriated for
93     fiscal year 2019. Under the terms and conditions of Title 63J, Chapter 1, Budgetary Procedures
94     Act, the Legislature appropriates the following sums of money from the funds or accounts
95     indicated for the use and support of the government of the state of Utah.
96     ITEM 1
97          To Department of Natural Resources -- Division of Forestry, Fire, and
98           State Lands
99               From General Fund Restricted -- Sovereign Lands Management
$125,000

100               Schedule of Programs:
101                    Project Management                    $125,000
102          Section 4. Effective date.
103          (1) Except as provided in Subsection (2), this bill takes effect on July 1, 2018.
104          (2) The amendments to the following sections take effect on February 1, 2019:
105          (a) Section 59-23-4; and
106          (b) Section 65A-5-1.