1     
SOVEREIGN LANDS REVENUE AMENDMENTS

2     
2022 GENERAL SESSION

3     
STATE OF UTAH

4     
Chief Sponsor: Timothy D. Hawkes

5     
Senate Sponsor: Jerry W. Stevenson

6     Cosponsors:
7     Carl R. Albrecht
8     Stewart E. Barlow
9     Gay Lynn Bennion
10     Joel K. Briscoe
11     Clare Collard
12     Jennifer Dailey-Provost
13     Steve Eliason
14     Joel Ferry
15     Stephen G. Handy
16     Suzanne Harrison
17     Jon Hawkins
18     Sandra Hollins
Brian S. King
Karen Kwan
Rosemary T. Lesser
Ashlee Matthews
Kelly B. Miles
Carol Spackman Moss
Merrill F. Nelson
Doug Owens
Karen M. Peterson
Candice B. Pierucci
Susan Pulsipher
Angela Romero
Douglas V. Sagers
Mike Schultz
Casey Snider
Robert M. Spendlove
Jeffrey D. Stenquist
Andrew Stoddard
Steve Waldrip
Raymond P. Ward
Elizabeth Weight
Mark A. Wheatley
Ryan D. Wilcox
Brad R. Wilson
Mike Winder

19     

20     LONG TITLE
21     General Description:
22          This bill addresses issues related to revenues received by the state from activities on
23     sovereign lands.
24     Highlighted Provisions:
25          This bill:
26          ▸     modifies the Sovereign Lands Management Account statute, including changing
27     what revenue is deposited into the account and changing uses of the money in the account;
28          ▸     creates the Great Salt Lake Account, including defining terms, addressing what
29     revenue is deposited into the account, and specifying uses of the money in the
30     account; and
31          ▸     makes technical changes.
32     Money Appropriated in this Bill:
33          This bill appropriates in fiscal year 2023:
34          ▸     to Department of Natural Resources -- Watershed, as an ongoing appropriation:
35               •     from the General Fund, $2,000,000; and
36          ▸     to Department of Natural Resources -- Division of Forestry, Fire, and State Lands,
37     as an ongoing appropriation:
38               •     from the General Fund, $5,709,400.
39     Other Special Clauses:
40          This bill provides a special effective date.
41     Utah Code Sections Affected:
42     AMENDS:
43          65A-5-1, as last amended by Laws of Utah 2021, Chapter 97
44          65A-5-2, as last amended by Laws of Utah 2014, Chapter 313
45     ENACTS:
46          65A-5-1.5, Utah Code Annotated 1953
47     

48     Be it enacted by the Legislature of the state of Utah:
49          Section 1. Section 65A-5-1 is amended to read:
50          65A-5-1. Sovereign Lands Management Account.
51          (1) There is created within the General Fund a restricted account known as the
52     "Sovereign Lands Management Account."
53          (2) The [account] Sovereign Lands Management Account shall consist of the
54     following:
55          (a) the revenues derived from sovereign lands, except for revenues deposited into the
56     Great Salt Lake Account under Section 65A-5-1.5;
57          (b) that portion of the revenues derived from mineral leases on other lands managed by
58     the division necessary to recover management costs;
59          (c) [any] fees deposited by the division; and
60          (d) amounts deposited into the account in accordance with Section 59-23-4.
61          (3) (a) The expenditures of the division relating directly to the management of [state]
62     sovereign lands shall be funded by appropriation by the Legislature from the Sovereign Lands
63     Management Account or other sources.
64          (b) Money in the Sovereign Lands Management Account may be used only for the
65     direct benefit of sovereign lands, including the management of sovereign lands.
66          (c) In appropriating money from the Sovereign Lands Management Account, the
67     Legislature shall prefer appropriations that benefit the sovereign land from which the money is
68     derived unless compelling circumstances require that money be appropriated for sovereign land
69     other than the sovereign land from which the money is derived.
70          [(4) The Legislature may appropriate money in the account to reimburse one or more
71     state government entities for money spent on the operation of national parks, national
72     monuments, national forests, and national recreation areas in the state during a fiscal
73     emergency, as defined in Section 79-4-1102.]
74          [(5)] (4) The division shall use the amount deposited into the account under Subsection
75     (2)(d) for the Great Salt Lake as described in Section 65A-10-8 as directed by the Great Salt
76     Lake Advisory Council created in Section 73-30-201.
77          [(6) After the expenditures under Subsections (3) through (5), the division shall use
78     money appropriated from the Sovereign Lands Management Account to provide for salary
79     increases to state personnel employed by the division to perform wildland fire management
80     with the division prioritizing salary increases for county fire wardens and assistant wardens.]
81          Section 2. Section 65A-5-1.5 is enacted to read:
82          65A-5-1.5. Great Salt Lake Account.
83          (1) As used in this section:
84          (a) "Account" means the Great Salt Lake Account created in this section.
85          (b) "Mining" means the process of producing, extracting, leaching, evaporating, or
86     otherwise removing a mineral from a natural deposit of the mineral.
87          (2) (a) There is created within the General Fund a restricted account known as the
88     "Great Salt Lake Account" consisting of:
89          (i) revenues deposited into the account under Subsection (3);
90          (ii) appropriations from the Legislature; and
91          (iii) interest and other earnings described in Subsection (2)(b).
92          (b) The Office of the Treasurer shall deposit interest and other earnings derived from
93     investment of money in the account into the account.
94          (3) The division shall deposit into the account the royalty income received by the state
95     from mining that occurs on or after July 1, 2022, of a mineral from the sovereign lands of the
96     Great Salt Lake if during the fiscal year beginning July 1, 2020, the state did not receive royalty
97     income from the mining of that same mineral from the sovereign lands of the Great Salt Lake.
98          (4) Upon appropriation by the Legislature, money in the account may be used to
99     manage the water levels of the Great Salt Lake.
100          Section 3. Section 65A-5-2 is amended to read:
101          65A-5-2. Deposit and allocation of money received.
102          (1) (a) [Subject to Subsection (3), the] The division shall pay to the state treasurer [all]
103     money received, accompanied by a statement showing the respective sources of [this] the
104     money.
105          (b) Each source shall be classified as to sales, rentals, royalties, interest, fees, penalties,
106     and forfeitures.
107          (2) (a) [All money] Money received by the division as a first or down payment on
108     [applications] an application to purchase, permit, or lease state lands or minerals shall be paid
109     to the state treasurer and held in suspense pending final action on [those applications] the
110     application.
111          (b) After final action [these payments] a payment described in Subsection (2)(a) shall
112     either be credited to the appropriate fund or account, or refunded to the applicant in accordance
113     with the action taken.
114          [(3) The division shall provide a separate accounting for all fees received under
115     Subsection 65A-5-1(4).]
116          Section 4. Appropriation.
117          The following sums of money are appropriated for the fiscal year beginning July 1,
118     2022, and ending June 30, 2023. These are additions to amounts previously appropriated for
119     fiscal year 2023. Under the terms and conditions of Title 63J, Chapter 1, Budgetary Procedures
120     Act, the Legislature appropriates the following sums of money from the funds or accounts
121     indicated for the use and support of the government of the state of Utah.
122     ITEM 1
123          To Department of Natural Resources -- Watershed
124               From General Fund
$2,000,000

125               Schedule of Programs:
126                    Watershed                         $2,000,000
127     ITEM 2
128          To Department of Natural Resources -- Division of Forestry, Fire, and State Lands
129               From General Fund
$5,709,400

130               Schedule of Programs:
131                    Division Administration               $1,135,400
132                    Fire Management                    $712,300
133                    Forest Management                    $341,200
134                    Program Delivery                    $3,103,900
135                    Project Management                    $416,600
136          Section 5. Effective date.
137          This bill takes effect on July 1, 2022.