Senator Scott D. Sandall proposes the following substitute bill:


1     
WORKING FARM AND RANCH PROTECTION FUND

2     
2023 GENERAL SESSION

3     
STATE OF UTAH

4     
Chief Sponsor: Casey Snider

5     
Senate Sponsor: Scott D. Sandall

6     

7     LONG TITLE
8     General Description:
9          This bill modifies provisions related to the management, regulation, conservation, and
10     use of natural resources.
11     Highlighted Provisions:
12          This bill:
13          ▸     defines terms;
14          ▸     renames the LeRay McAllister Critical Land Conservation Program;
15          ▸     establishes the LeRay McAllister Working Farm and Ranch Fund;
16          ▸     addresses county use of rollback taxes; and
17          ▸     addresses county use of rollback tax funds.
18     Money Appropriated in this Bill:
19          None
20     Other Special Clauses:
21          None
22     Utah Code Sections Affected:
23     AMENDS:
24          4-46-102, as renumbered and amended by Laws of Utah 2022, Chapter 68
25          4-46-202, as renumbered and amended by Laws of Utah 2022, Chapter 68

26          4-46-301, as renumbered and amended by Laws of Utah 2022, Chapter 68
27          4-46-302, as renumbered and amended by Laws of Utah 2022, Chapter 68
28          4-46-303, as renumbered and amended by Laws of Utah 2022, Chapter 68
29          39A-8-104, as renumbered and amended by Laws of Utah 2022, Chapter 373
30          59-2-506, as last amended by Laws of Utah 2017, Chapter 319
31          59-2-511, as last amended by Laws of Utah 2007, Chapter 329
32          59-2-1705, as last amended by Laws of Utah 2017, Chapter 319
33          59-2-1710, as enacted by Laws of Utah 2012, Chapter 197
34          63J-1-602.2, as last amended by Laws of Utah 2022, Chapters 59, 68, 154, 224, 236,
35     242, and 447 and last amended by Coordination Clause, Laws of Utah 2022,
36     Chapter 154
37     ENACTS:
38          17-41-601, Utah Code Annotated 1953
39          17-41-602, Utah Code Annotated 1953
40     

41     Be it enacted by the Legislature of the state of Utah:
42          Section 1. Section 4-46-102 is amended to read:
43          4-46-102. Definitions.
44          As used in this chapter:
45          (1) "Agricultural land" [has the same meaning as] means "land in agricultural use,"
46     [under] as defined in Section 59-2-502.
47          (2) "Board" means the Land Conservation Board established in Section 4-46-201.
48          (3) "Conservation commission" means the Conservation Commission created in
49     Section 4-18-104.
50          (4) "Conservation district" means a limited purpose local government entity created
51     under Title 17D, Chapter 3, Conservation District Act.
52          (5) "Director" means the director of the Division of Conservation.
53          (6) "Division" means the Division of Conservation created in Section 4-46-401.
54          (7) "Fund" means the LeRay McAllister Working Farm and Ranch Fund created in
55     Section 4-46-301.
56          [(7)] (8) "Land use authority" means:

57          (a) a land use authority, as defined in Section 10-9a-103, of a municipality; or
58          (b) a land use authority, as defined in Section 17-27a-103, of a county.
59          [(8)] (9) "Local entity" means a county, city, or town.
60          [(9)] (10) (a) "Open land" means land that is:
61          (i) preserved in or restored to a predominantly natural, open, and undeveloped
62     condition; and
63          (ii) used for:
64          (A) wildlife habitat;
65          (B) cultural or recreational use;
66          (C) watershed protection; or
67          (D) another use consistent with the preservation of the land in, or restoration of the
68     land to, a predominantly natural, open, and undeveloped condition.
69          [(b) (i) "Open land" does not include land whose predominant use is as a developed
70     facility for active recreational activities, including baseball, tennis, soccer, golf, or other
71     sporting or similar activity.]
72          [(ii)] (b) [The condition of land does not change from a natural, open, and undeveloped
73     condition because of the development or presence on the land of] "Open land" includes land
74     described in Subsection (10)(a) that contains facilities, including trails, waterways, and grassy
75     areas, that:
76          [(A)] (i) enhance the natural, scenic, or aesthetic qualities of the land; or
77          [(B)] (ii) facilitate the public's access to or use of the land for the enjoyment of the
78     land's natural, scenic, or aesthetic qualities and for compatible recreational activities.
79          (c) "Open land" does not include land whose predominant use is as a developed facility
80     for active recreational activities, including baseball, tennis, soccer, golf, or other sporting or
81     similar activities.
82          [(10) "Program" means the LeRay McAllister Critical Land Conservation Program
83     established in Section 4-46-301.]
84          (11) (a) "State conservation efforts" includes:
85          (i) efforts to optimize and preserve the uses of land for the benefit of the state's
86     agricultural industry and natural resources; and
87          (ii) conservation of working landscapes that if conserved, preserves the state's

88     agricultural industry and natural resources, such as working agricultural land.
89          (b) "State conservation efforts" does not include the purpose of opening private
90     property to public access without the consent of the owner of the private property.
91          (12) (a) "Working agricultural land" means agricultural land for which an owner or
92     producer engages in the activity of producing for commercial purposes crops, orchards,
93     livestock, poultry, aquaculture, livestock products, or poultry products and the facilities,
94     equipment, and property used to facilitate the activity.
95          (b) "Working agricultural land" includes an agricultural protection area established
96     under Title 17, Chapter 41, Agriculture, Industrial, or Critical Infrastructure Materials
97     Protection Areas.
98          Section 2. Section 4-46-202 is amended to read:
99          4-46-202. Board duties and powers -- No regulatory authority -- Criteria.
100          (1) The board shall:
101          (a) administer the [program] fund as provided in this chapter; and
102          (b) fulfill other responsibilities imposed on the board by the Legislature.
103          (2) The board may not exercise any regulatory authority.
104          (3) In carrying out the board's powers and duties under this chapter, the board shall
105     adopt ranking criteria that is substantially similar to the ranking criteria used by the Agriculture
106     Conservation Easement Program and Agriculture Land Easement as determined by the Natural
107     Resources Conservation Service under the United States Department of Agriculture.
108          Section 3. Section 4-46-301 is amended to read:
109     
Part 3. LeRay McAllister Working Farm and Ranch Fund

110          4-46-301. LeRay McAllister Working Farm and Ranch Fund.
111          (1) There is created a [program] restricted account within the General Fund entitled the
112     "[LeRay McAllister Critical Land Conservation Program] LeRay McAllister Working Farm
113     and Ranch Fund."
114          (2) [Funding for the program shall be a line item in the budget of the board. The line
115     item shall be nonlapsing.] The restricted account shall consist of:
116          (a) appropriations by the Legislature;
117          (b) grants from federal or private sources; and
118          (c) interest and earnings from the account.

119          (3) The Land Conservation Board created in Section 4-46-201 may use appropriations
120     from the fund in accordance with Section 4-46-302.
121          Section 4. Section 4-46-302 is amended to read:
122          4-46-302. Use of money in fund -- Criteria -- Administration.
123          (1) Subject to Subsection (2), the board may authorize the use of money in the
124     [program] fund, by grant, to:
125          (a) a local entity;
126          (b) the Department of Natural Resources created under Section 79-2-201;
127          (c) an entity within the department; or
128          (d) a charitable organization that qualifies as being tax exempt under Section 501(c)(3),
129     Internal Revenue Code.
130          (2) (a) The money in the [program] fund shall be used for preserving or restoring open
131     land and agricultural land.
132          (b) [(i)] Except as provided in Subsection [(2)(b)(ii)] (2)(c), money from the [program]
133     fund:
134          (i) may be used to:
135          (A) establish a conservation easement under Title 57, Chapter 18, Land Conservation
136     Easement Act; or
137          (B) fund similar methods to preserve open land or agricultural land; and
138          (ii) may not be used to
139          (A) purchase a fee interest in real property to preserve open land or agricultural land[,
140     but may be used to establish a conservation easement under Title 57, Chapter 18, Land
141     Conservation Easement Act, or to fund similar methods to preserve open land or agricultural
142     land.]; or
143          (B) purchase additional property for the purpose of tax deferral.
144          [(ii)] (c) [Notwithstanding Subsection (2)(b)(i), money] Money from the [program]
145     fund may be used to purchase a fee interest in real property to preserve open land or
146     agricultural land if:
147          [(A)] (i) the [parcel] property to be purchased is no more than 20 acres in size; and
148          [(B)] (ii) with respect to a parcel purchased in a county in which over 50% of the land
149     area is publicly owned, real property roughly equivalent in size and located within that county

150     is contemporaneously transferred to private ownership from the governmental entity that
151     purchased the fee interest in real property.
152          [(iii)] (d) Eminent domain may not be used or threatened in connection with any
153     purchase using money from the [program] fund.
154          [(iv)] (e) A parcel of land larger than 20 acres in size may not be divided [into separate
155     parcels smaller than 20 acres each to meet the requirement of] to create one or more parcels
156     that are smaller than 20 acres in order to comply with Subsection [(2)(b)(ii)] (2)(c)(i).
157          [(c)] (f) A local entity, department, or organization under Subsection (1) may not
158     receive money from the [program] fund unless the local entity, department, or organization
159     provides matching funds equal to or greater than the amount of money received from the
160     [program] fund.
161          [(d)] (g) In granting money from the [program] fund, the board may impose conditions
162     on the recipient as to how the money is to be spent.
163          [(e)] (h) The board shall give priority to:
164          (i) working agricultural land; and
165          (ii) after giving priority to working agricultural land under Subsection [(2)(e)(i)]
166     (2)(h)(i), requests from the Department of Natural Resources for up to 20% of each annual
167     increase in the amount of money in the [program] fund if the money is used for the protection
168     of wildlife or watershed.
169          [(f)] (i) (i) The board may not make a grant from the [program] fund that exceeds
170     $1,000,000 until after making a report to the Legislative Management Committee about the
171     grant.
172          (ii) The Legislative Management Committee may make a recommendation to the board
173     concerning the intended grant, but the recommendation is not binding on the board.
174          (3) In determining the amount and type of financial assistance to provide a local entity,
175     department, or organization under Subsection (1) and subject to Subsection [(2)(f)] (2)(i), the
176     board shall consider:
177          (a) the nature and amount of open land and agricultural land proposed to be preserved
178     or restored;
179          (b) the qualities of the open land and agricultural land proposed to be preserved or
180     restored;

181          (c) the cost effectiveness of the project to preserve or restore open land or agricultural
182     land;
183          (d) the funds available;
184          (e) the number of actual and potential applications for financial assistance and the
185     amount of money sought by those applications;
186          (f) the open land preservation plan of the local entity where the project is located and
187     the priority placed on the project by that local entity;
188          (g) the effects on housing affordability and diversity; and
189          (h) whether the project protects against the loss of private property ownership.
190          (4) If a local entity, department, or organization under Subsection (1) seeks money
191     from the [program] fund for a project whose purpose is to protect critical watershed, the board
192     shall require that the needs and quality of that project be verified by the state engineer.
193          (5) An interest in real property purchased with money from the [program] fund shall be
194     held and administered by the state or a local entity.
195          (6) (a) The board may not authorize the use of money under this section for a project
196     unless the land use authority for the land in which the project is located consents to the project.
197          (b) To obtain consent to a project, the person who is seeking money from the
198     [program] fund shall submit a request for consent to a project with the applicable land use
199     authority. The land use authority may grant or deny consent. If the land use authority does not
200     take action within 60 days from the day on which the request for consent is filed with the land
201     use authority under this Subsection (6), the board shall treat the project as having the consent of
202     the land use authority.
203          (c) An action of a land use authority under this Subsection (6) is not a land use decision
204     subject to:
205          (i) Title 10, Chapter 9a, Municipal Land Use, Development, and Management Act; or
206          (ii) Title 17, Chapter 27a, County Land Use, Development, and Management Act.
207          Section 5. Section 4-46-303 is amended to read:
208          4-46-303. Board to report annually.
209          The board shall submit an annual report to the Infrastructure and General Government
210     and Natural Resources, Agriculture, and Environmental Quality Appropriations
211     Subcommittees:

212          (1) specifying the amount of each disbursement from the [program] fund;
213          (2) identifying the recipient of each disbursement and describing the project for which
214     money was disbursed; and
215          (3) detailing the conditions, if any, placed by the board on disbursements from the
216     [program] fund.
217          Section 6. Section 17-41-601 is enacted to read:
218     
Part 6. Open Land and Working Agricultural Land Use

219          17-41-601. Definitions.
220          As used in this part:
221          (1) "Agricultural land" means "land in agricultural use," as defined in Section
222     59-2-502.
223          (2) (a) "Open land" means land that is:
224          (i) preserved in or restored to a predominantly natural, open, and undeveloped
225     condition; and
226          (ii) used for:
227          (A) wildlife habitat;
228          (B) cultural or recreational use;
229          (C) watershed protection; or
230          (D) another use consistent with the preservation of the land in, or restoration of the
231     land to, a predominantly natural, open, and undeveloped condition.
232          (b) "Open land" includes land described in Subsection (2)(a) that contains facilities,
233     including trails, waterways, and grassy areas, that, in the judgment of the county legislative
234     body:
235          (i) enhance the natural, scenic, or aesthetic qualities of the land; or
236          (ii) facilitate the public's access to, or use of, the land for the enjoyment of the land's
237     natural, scenic, or aesthetic qualities and for compatible recreational activities.
238          (c) "Open land" does not include land whose predominant use is as a developed facility
239     for active recreational activities played on fields or courses, including baseball, tennis, soccer,
240     golf, or other sporting or similar activities.
241          (3) "Public land county" means a county in which over 50% of the land area is publicly
242     owned.

243          (4) "Rollback tax funds" means the rollback taxes paid to a county in accordance with
244     Sections 59-2-506, 59-2-511, 59-2-1705, and 59-2-1710.
245          Section 7. Section 17-41-602 is enacted to read:
246          17-41-602. Use of money -- Criteria -- Administration.
247          (1) The county treasurer shall:
248          (a) pay rollback taxes in accordance with Sections 59-2-506, 59-2-511, 59-2-1705, and
249     59-2-1710; and
250          (b) deposit 20% of the rollback tax funds into an account or fund of the county set
251     aside for preserving or restoring open land and agricultural land.
252          (2) The percentage of rollback tax funds described in Subsection (1)(b):
253          (a) may be used to establish a conservation easement under Title 57, Chapter 18, Land
254     Conservation Easement Act, or to fund similar methods to preserve open land or agricultural
255     land; and
256          (b) if the property to be purchased is in a public land county, may not be used to
257     purchase a fee interest in real property to preserve open land or agricultural land, unless, the
258     governmental entity purchasing the property contemporaneously transfers to the private
259     ownership real property, in the same public land county, that is roughly equivalent in size to the
260     property to be purchased.
261          (3) Eminent domain may not be used or threatened in connection with any purchase
262     using the percentage of rollback tax funds described in Subsection (1)(b).
263          (4) The funds collected by the account or fund of the county may roll over from
264     year-to-year.
265          Section 8. Section 39A-8-104 is amended to read:
266          39A-8-104. Committee responsibilities.
267          (1) The committee shall:
268          (a) identify lands to be included in the designated sentinel landscape;
269          (b) develop strategies and recommendations to encourage landowners within the
270     sentinel landscape to voluntarily participate in and begin or continue land uses compatible with
271     Camp Williams's military mission; and
272          (c) publish any policies and procedures as administrative rules in accordance with Title
273     63G, Chapter 3, Utah Administrative Rulemaking Act.

274          (2) In designating sentinel lands, the coordinating committee shall include all working
275     or natural lands that the coordinating committee believes contribute to the long-term
276     sustainability of the military missions conducted at Camp Williams.
277          (3) The committee shall determine the appropriate level of state resources required to
278     adequately protect Camp Williams's military mission and may apply for grants from the [LeRay
279     McAllister Critical Lands Conservation Program] LeRay McAllister Working Farm and Ranch
280     Fund to aid in securing those resources.
281          (4) In determining lands to designate, the coordinating committee shall seek input
282     from:
283          (a) the director of the Department of Defense Readiness and Environmental Protection
284     Integration Program; and
285          (b) the director of the National Guard Bureau Army Compatible Use Buffer Program,
286     as authorized under 10 U.S.C. Sec. 2684(a).
287          (5) The committee shall provide a written report of its activities if state funds are
288     expended during the previous calendar year no later than July 31 annually to:
289          (a) the governor;
290          (b) the Government Operations Interim Committee; and
291          (c) the Executive Appropriations Committee.
292          Section 9. Section 59-2-506 is amended to read:
293          59-2-506. Rollback tax -- Penalty -- Computation of tax -- Procedure -- Lien --
294     Interest -- Notice -- Collection -- Distribution.
295          (1) Except as provided in this section, Section 59-2-506.5, or Section 59-2-511, if land
296     is withdrawn from this part, the land is subject to a rollback tax imposed in accordance with
297     this section.
298          (2) (a) An owner shall notify the county assessor that land is withdrawn from this part
299     within 120 days after the day on which the land is withdrawn from this part.
300          (b) An owner that fails to notify the county assessor under Subsection (2)(a) that land is
301     withdrawn from this part is subject to a penalty equal to the greater of:
302          (i) $10; or
303          (ii) 2% of the rollback tax due for the last year of the rollback period.
304          (3) (a) The county assessor shall determine the amount of the rollback tax by

305     computing the difference for the rollback period described in Subsection (3)(b) between:
306          (i) the tax paid while the land was assessed under this part; and
307          (ii) the tax that would have been paid had the property not been assessed under this
308     part.
309          (b) For purposes of this section, the rollback period is a time period that:
310          (i) begins on the later of:
311          (A) the date the land is first assessed under this part; or
312          (B) five years preceding the day on which the county assessor mails the notice required
313     by Subsection (5); and
314          (ii) ends the day on which the county assessor mails the notice required by Subsection
315     (5).
316          (4) (a) The county treasurer shall:
317          (i) collect the rollback tax; and
318          (ii) after the rollback tax is paid, certify to the county recorder that the rollback tax lien
319     on the property has been satisfied by:
320          (A) preparing a document that certifies that the rollback tax lien on the property has
321     been satisfied; and
322          (B) providing the document described in Subsection (4)(a)(ii)(A) to the county recorder
323     for recordation.
324          (b) The county treasurer shall pay the rollback tax collected under this section as
325     follows:
326          (i) [into the county treasury] 20% to the county for use for open land and working
327     agricultural land as those terms are defined in Section 4-46-102; and
328          (ii) 80% to the various taxing entities pro rata in accordance with the property tax
329     levies for the current year.
330          (5) (a) The county assessor shall mail to an owner of the land that is subject to a
331     rollback tax a notice that:
332          (i) the land is withdrawn from this part;
333          (ii) the land is subject to a rollback tax under this section; and
334          (iii) the rollback tax is delinquent if the owner of the land does not pay the tax within
335     30 days after the day on which the county assessor mails the notice described in this Subsection

336     (5)(a).
337          (b) (i) The rollback tax is due and payable on the day the county assessor mails the
338     notice required by Subsection (5)(a).
339          (ii) Subject to Subsection (7), the rollback tax is delinquent if an owner of the land that
340     is withdrawn from this part does not pay the rollback tax within 30 days after the day on which
341     the county assessor mails the notice required by Subsection (5)(a).
342          (6) (a) Subject to Subsection (6)(b), the following are a lien on the land assessed under
343     this part:
344          (i) the rollback tax; and
345          (ii) interest imposed in accordance with Subsection (7).
346          (b) The lien described in Subsection (6)(a) shall:
347          (i) arise upon the imposition of the rollback tax under this section;
348          (ii) end on the day on which the rollback tax and interest imposed in accordance with
349     Subsection (7) are paid in full; and
350          (iii) relate back to the first day of the rollback period described in Subsection (3)(b).
351          (7) (a) A delinquent rollback tax under this section shall accrue interest:
352          (i) from the date of delinquency until paid; and
353          (ii) at the interest rate established under Section 59-2-1331 and in effect on January 1
354     of the year in which the delinquency occurs.
355          (b) The county treasurer shall include in the notice required by Section 59-2-1317 a
356     rollback tax that is delinquent on September 1 of any year and interest calculated on that
357     delinquent amount through November 30 of the year in which the county treasurer provides the
358     notice under Section 59-2-1317.
359          (8) (a) Land that becomes ineligible for assessment under this part only as a result of an
360     amendment to this part is not subject to the rollback tax if the owner of the land notifies the
361     county assessor, in accordance with Subsection (2), that the land is withdrawn from this part.
362          (b) Land described in Subsection (8)(a) that is withdrawn from this part as a result of
363     an event other than an amendment to this part, whether voluntary or involuntary, is subject to
364     the rollback tax.
365          (9) Except as provided in Section 59-2-511, land that becomes exempt from taxation
366     under Utah Constitution, Article XIII, Section 3, is not subject to the rollback tax if the land

367     meets the requirements of Section 59-2-503 to be assessed under this part.
368          (10) Land that becomes ineligible for assessment under this part only as a result of a
369     split estate mineral rights owner exercising the right to extract a mineral is not subject to the
370     rollback tax:
371          (a) (i) for the portion of the land required by a split estate mineral rights owner to
372     extract a mineral if, after the split estate mineral rights owner exercises the right to extract a
373     mineral, the portion of the property that remains in agricultural production still meets the
374     acreage requirements of Section 59-2-503 for assessment under this part; or
375          (ii) for the entire acreage that would otherwise qualify for assessment under this part if,
376     after the split estate mineral rights owner exercises the right to extract a mineral, the entire
377     acreage that would otherwise qualify for assessment under this part no longer meets the acreage
378     requirements of Section 59-2-503 for assessment under this part only due to the extraction of
379     the mineral by the split estate mineral rights owner; and
380          (b) for the period of time that the property described in Subsection (10)(a) is ineligible
381     for assessment under this part due to the extraction of a mineral by the split estate mineral
382     rights owner.
383          Section 10. Section 59-2-511 is amended to read:
384          59-2-511. Acquisition of land by governmental entity -- Requirements -- Rollback
385     tax -- One-time in lieu fee payment -- Passage of title.
386          (1) For purposes of this section, "governmental entity" means:
387          (a) the United States;
388          (b) the state;
389          (c) a political subdivision of the state, including:
390          (i) a county;
391          (ii) a city;
392          (iii) a town;
393          (iv) a school district;
394          (v) a local district; or
395          (vi) a special service district; or
396          (d) an entity created by the state or the United States, including:
397          (i) an agency;

398          (ii) a board;
399          (iii) a bureau;
400          (iv) a commission;
401          (v) a committee;
402          (vi) a department;
403          (vii) a division;
404          (viii) an institution;
405          (ix) an instrumentality; or
406          (x) an office.
407          (2) (a) Except as provided in Subsections (3) and (4), land acquired by a governmental
408     entity is subject to the rollback tax imposed by this part if:
409          (i) prior to the governmental entity acquiring the land, the land is assessed under this
410     part; and
411          (ii) after the governmental entity acquires the land, the land does not meet the
412     requirements of Section 59-2-503 for assessment under this part.
413          (b) A person dedicating a public right-of-way to a governmental entity shall pay the
414     rollback tax imposed by this part if:
415          (i) a portion of the public right-of-way is located within a subdivision as defined in
416     Section 10-9a-103; or
417          (ii) in exchange for the dedication, the person dedicating the public right-of-way
418     receives:
419          (A) money; or
420          (B) other consideration.
421          (3) (a) Except as provided in Subsection (4), land acquired by a governmental entity is
422     not subject to the rollback tax imposed by this part, but is subject to a one-time in lieu fee
423     payment as provided in Subsection (3)(b), if:
424          (i) the governmental entity acquires the land by eminent domain;
425          (ii) (A) the land is under the threat or imminence of eminent domain proceedings; and
426          (B) the governmental entity provides written notice of the proceedings to the owner; or
427          (iii) the land is donated to the governmental entity.
428          (b) (i) If a governmental entity acquires land under Subsection (3)(a)(iii), the

429     governmental entity shall make a one-time in lieu fee payment:
430          (A) to the county treasurer of the county in which the land is located; and
431          (B) in an amount equal to the amount of rollback tax calculated under Section
432     59-2-506.
433          (ii) If a governmental entity acquires land under Subsection (3)(a)(i) or (3)(a)(ii), the
434     governmental entity shall make a one-time in lieu fee payment:
435          (A) to the county treasurer of the county in which the land is located; and
436          (B) (I) if the land remaining after the acquisition by the governmental entity meets the
437     requirements of Section 59-2-503, in an amount equal to the rollback tax under Section
438     59-2-506 on the land acquired by the governmental entity; or
439          (II) if the land remaining after the acquisition by the governmental entity is less than
440     five acres, in an amount equal to the rollback tax under Section 59-2-506 on the land acquired
441     by the governmental entity and the land remaining after the acquisition by the governmental
442     entity.
443          (iii) For purposes of Subsection (3)(b)(ii), "land remaining after the acquisition by the
444     governmental entity" includes other eligible acreage that is used in conjunction with the land
445     remaining after the acquisition by the governmental entity.
446          (c) A county receiving an in lieu fee payment under Subsection (3)(b) shall distribute
447     the revenues generated by the payment as follows:
448          (i) 20% to the county for use for open land and working agricultural land as those
449     terms are defined in Section 4-46-102; and
450          (ii) 80% to the taxing entities in which the land is located[; and].
451          [(ii) in the same proportion as the revenue from real property taxes is distributed.]
452          (4) Except as provided in Section 59-2-506.5, if land acquired by a governmental entity
453     is made subject to a conservation easement in accordance with Section 59-2-506.5:
454          (a) the land is not subject to the rollback tax imposed by this part; and
455          (b) the governmental entity acquiring the land is not required to make an in lieu fee
456     payment under Subsection (3)(b).
457          (5) If a governmental entity acquires land subject to assessment under this part, title to
458     the land may not pass to the governmental entity until the following are paid to the county
459     treasurer:

460          (a) any tax due under this part;
461          (b) any one-time in lieu fee payment due under this part; and
462          (c) any interest due under this part.
463          Section 11. Section 59-2-1705 is amended to read:
464          59-2-1705. Rollback tax -- Penalty -- Computation of tax -- Procedure -- Lien --
465     Interest -- Notice -- Collection -- Distribution -- Appeal to county board of equalization.
466          (1) Except as provided in this section or Section 59-2-1710, land that is withdrawn
467     from this part is subject to a rollback tax imposed as provided in this section.
468          (2) (a) An owner shall notify the county assessor that land is withdrawn from this part
469     within 120 days after the day on which the land is withdrawn from this part.
470          (b) An owner who fails to notify the county assessor under Subsection (2)(a) that land
471     is withdrawn from this part is subject to a penalty equal to the greater of:
472          (i) $10; or
473          (ii) 2% of the rollback tax due for the last year of the rollback period.
474          (3) (a) The county assessor shall determine the amount of the rollback tax by
475     computing the difference for the rollback period described in Subsection (3)(b) between:
476          (i) the tax paid while the land was assessed under this part; and
477          (ii) the tax that would have been paid had the property not been assessed under this
478     part.
479          (b) For purposes of this section, the rollback period is a time period that:
480          (i) begins on the later of:
481          (A) the date the land is first assessed under this part; or
482          (B) five years preceding the day on which the county assessor mails the notice required
483     by Subsection (5); and
484          (ii) ends the day on which the county assessor mails the notice required by Subsection
485     (5).
486          (4) (a) The county treasurer shall:
487          (i) collect the rollback tax; and
488          (ii) after the rollback tax is paid, certify to the county recorder that the rollback tax lien
489     on the property has been satisfied by:
490          (A) preparing a document that certifies that the rollback tax lien on the property has

491     been satisfied; and
492          (B) providing the document described in Subsection (4)(a)(ii)(A) to the county recorder
493     for recording.
494          (b) The county treasurer shall pay the rollback tax collected under this section as
495     follows:
496          (i) [into the county treasury] 20% to the county for use for open land and working
497     agricultural land as those terms are defined in Section 4-46-102; and
498          (ii) 80% to the various taxing entities pro rata in accordance with the property tax
499     levies for the current year.
500          (5) (a) The county assessor shall mail to an owner of the land that is subject to a
501     rollback tax a notice that:
502          (i) the land is withdrawn from this part;
503          (ii) the land is subject to a rollback tax under this section; and
504          (iii) the rollback tax is delinquent if the owner of the land does not pay the tax within
505     30 days after the day on which the county assessor mails the notice described in this Subsection
506     (5)(a).
507          (b) (i) The rollback tax is due and payable on the day the county assessor mails the
508     notice required by Subsection (5)(a).
509          (ii) Subject to Subsection (7), the rollback tax is delinquent if an owner of the land that
510     is withdrawn from this part does not pay the rollback tax within 30 days after the day on which
511     the county assessor mails the notice required by Subsection (5)(a).
512          (6) (a) Subject to Subsection (6)(b), the rollback tax and interest imposed under
513     Subsection (7) are a lien on the land assessed under this part.
514          (b) The lien described in Subsection (6)(a) shall:
515          (i) arise upon the imposition of the rollback tax under this section;
516          (ii) end on the day on which the rollback tax and interest imposed under Subsection (7)
517     are paid in full; and
518          (iii) relate back to the first day of the rollback period described in Subsection (3)(b).
519          (7) (a) A delinquent rollback tax under this section shall accrue interest:
520          (i) from the date of delinquency until paid; and
521          (ii) at the interest rate established under Section 59-2-1331 and in effect on January 1

522     of the year in which the delinquency occurs.
523          (b) The county treasurer shall include in the notice required by Section 59-2-1317 a
524     rollback tax that is delinquent on September 1 of any year and interest calculated on that
525     delinquent amount through November 30 of the year in which the county treasurer provides the
526     notice under Section 59-2-1317.
527          (8) (a) Land that becomes ineligible for assessment under this part only as a result of an
528     amendment to this part is not subject to the rollback tax if the owner of the land notifies the
529     county assessor, in accordance with Subsection (2), that the land is withdrawn from this part.
530          (b) Land described in Subsection (8)(a) that is withdrawn from this part as a result of
531     an event other than an amendment to this part, whether voluntary or involuntary, is subject to
532     the rollback tax.
533          (9) Except as provided in Section 59-2-1710, land that becomes exempt from taxation
534     under Utah Constitution, Article XIII, Section 3, is not subject to the rollback tax if the land
535     meets the requirements of Section 59-2-1703 to be assessed under this part.
536          Section 12. Section 59-2-1710 is amended to read:
537          59-2-1710. Acquisition of land by governmental entity -- Requirements --
538     Rollback tax -- One-time in lieu fee payment -- Passage of title.
539          (1) For purposes of this section, "governmental entity" means:
540          (a) the United States;
541          (b) the state;
542          (c) a political subdivision of the state, including a county, city, town, school district,
543     local district, or special service district; or
544          (d) an entity created by the state or the United States, including an agency, board,
545     bureau, commission, committee, department, division, institution, instrumentality, or office.
546          (2) (a) Except as provided in Subsections (3) and (4), land acquired by a governmental
547     entity is subject to the rollback tax imposed by this part if:
548          (i) before the governmental entity acquires the land, the land is assessed under this
549     part; and
550          (ii) after the governmental entity acquires the land, the land does not meet the
551     requirements of Section 59-2-1703 for assessment under this part.
552          (b) A person dedicating a public right-of-way to a governmental entity shall pay the

553     rollback tax imposed by this part if:
554          (i) a portion of the public right-of-way is located within a subdivision as defined in
555     Section 10-9a-103; or
556          (ii) in exchange for the dedication, the person dedicating the public right-of-way
557     receives money or other consideration.
558          (3) (a) Land acquired by a governmental entity is not subject to the rollback tax
559     imposed by this part, but is subject to a one-time in lieu fee payment as provided in Subsection
560     (3)(b), if:
561          (i) the governmental entity acquires the land by eminent domain;
562          (ii) (A) the land is under the threat or imminence of eminent domain proceedings; and
563          (B) the governmental entity provides written notice of the proceedings to the owner; or
564          (iii) the land is donated to the governmental entity.
565          (b) (i) If a governmental entity acquires land under Subsection (3)(a)(iii), the
566     governmental entity shall make a one-time in lieu fee payment:
567          (A) to the county treasurer of the county in which the land is located; and
568          (B) in an amount equal to the amount of rollback tax calculated under Section
569     59-2-1705.
570          (ii) A governmental entity that acquires land under Subsection (3)(a)(i) or (ii) shall
571     make a one-time in lieu fee payment to the county treasurer of the county in which the land is
572     located:
573          (A) if the land remaining after the acquisition by the governmental entity meets the
574     requirements of Section 59-2-1703, in an amount equal to the rollback tax under Section
575     59-2-1705 on the land acquired by the governmental entity; or
576          (B) if the land remaining after the acquisition by the governmental entity is less than
577     two acres, in an amount equal to the rollback tax under Section 59-2-1705 on the land acquired
578     by the governmental entity and the land remaining after the acquisition by the governmental
579     entity.
580          (c) A county receiving an in lieu fee payment under Subsection (3)(b) shall distribute
581     the revenues collected from the payment as follows:
582          (i) 20% to the county for use for open land and working agricultural land as those
583     terms are defined in Section 4-46-102; and

584          (ii) 80% to the taxing entities in which the land is located[; and].
585          [(ii) in the same proportion as the revenue from real property taxes is distributed.]
586          (4) If a governmental entity acquires land subject to assessment under this part, title to
587     the land may not pass to the governmental entity until any tax, one-time in lieu fee payment,
588     and applicable interest due under this part are paid to the county treasurer.
589          Section 13. Section 63J-1-602.2 is amended to read:
590          63J-1-602.2. List of nonlapsing appropriations to programs.
591          Appropriations made to the following programs are nonlapsing:
592          (1) The Legislature and the Legislature's committees.
593          (2) The State Board of Education, including all appropriations to agencies, line items,
594     and programs under the jurisdiction of the State Board of Education, in accordance with
595     Section 53F-9-103.
596          (3) The Percent-for-Art Program created in Section 9-6-404.
597          (4) The [LeRay McAllister Critical Land Conservation Program] LeRay McAllister
598     Working Farm and Ranch Fund created in Section 4-46- 301.
599          (5) The Utah Lake Authority created in Section 11-65-201.
600          (6) Dedicated credits accrued to the Utah Marriage Commission as provided under
601     Subsection 17-16-21(2)(d)(ii).
602          (7) The Division of Wildlife Resources for the appraisal and purchase of lands under
603     the Pelican Management Act, as provided in Section 23-21a-6.
604          (8) The Emergency Medical Services Grant Program in Section 26-8a-207.
605          (9) The primary care grant program created in Section 26-10b-102.
606          (10) Sanctions collected as dedicated credits from Medicaid providers under
607     Subsection 26-18-3(7).
608          (11) The Utah Health Care Workforce Financial Assistance Program created in Section
609     26-46-102.
610          (12) The Rural Physician Loan Repayment Program created in Section 26-46a-103.
611          (13) The Opiate Overdose Outreach Pilot Program created in Section 26-55-107.
612          (14) The Utah Medical Education Council for the:
613          (a) administration of the Utah Medical Education Program created in Section
614     26-69-403;

615          (b) provision of medical residency grants described in Section 26-69-407; and
616          (c) provision of the forensic psychiatric fellowship grant described in Section
617     26-69-408.
618          (15) Funds that the Department of Alcoholic Beverage Services retains in accordance
619     with Subsection 32B-2-301(8)(a) or (b).
620          (16) The General Assistance program administered by the Department of Workforce
621     Services, as provided in Section 35A-3-401.
622          (17) The Utah National Guard, created in Title 39, Militia and Armories.
623          (18) The State Tax Commission under Section 41-1a-1201 for the:
624          (a) purchase and distribution of license plates and decals; and
625          (b) administration and enforcement of motor vehicle registration requirements.
626          (19) The Search and Rescue Financial Assistance Program, as provided in Section
627     53-2a-1102.
628          (20) The Motorcycle Rider Education Program, as provided in Section 53-3-905.
629          (21) The Utah Board of Higher Education for teacher preparation programs, as
630     provided in Section 53B-6-104.
631          (22) Innovation grants under Section 53G-10-608, except as provided in Subsection
632     53G-10-608(6).
633          (23) The Division of Services for People with Disabilities, as provided in Section
634     62A-5-102.
635          (24) The Division of Fleet Operations for the purpose of upgrading underground
636     storage tanks under Section 63A-9-401.
637          (25) The Utah Seismic Safety Commission, as provided in Section 63C-6-104.
638          (26) The Division of Technology Services for technology innovation as provided under
639     Section 63A-16-903.
640          (27) The Office of Administrative Rules for publishing, as provided in Section
641     63G-3-402.
642          (28) The Colorado River Authority of Utah, created in Title 63M, Chapter 14,
643     Colorado River Authority of Utah Act.
644          (29) The Governor's Office of Economic Opportunity to fund the Enterprise Zone Act,
645     as provided in Title 63N, Chapter 2, Part 2, Enterprise Zone Act.

646          (30) The Governor's Office of Economic Opportunity's Rural Employment Expansion
647     Program, as described in Title 63N, Chapter 4, Part 4, Rural Employment Expansion Program.
648          (31) Programs for the Jordan River Recreation Area as described in Section 65A-2-8.
649          (32) The Division of Human Resource Management user training program, as provided
650     in Section 63A-17-106.
651          (33) A public safety answering point's emergency telecommunications service fund, as
652     provided in Section 69-2-301.
653          (34) The Traffic Noise Abatement Program created in Section 72-6-112.
654          (35) The money appropriated from the Navajo Water Rights Negotiation Account to
655     the Division of Water Rights, created in Section 73-2-1.1, for purposes of participating in a
656     settlement of federal reserved water right claims.
657          (36) The Judicial Council for compensation for special prosecutors, as provided in
658     Section 77-10a-19.
659          (37) A state rehabilitative employment program, as provided in Section 78A-6-210.
660          (38) The Utah Geological Survey, as provided in Section 79-3-401.
661          (39) The Bonneville Shoreline Trail Program created under Section 79-5-503.
662          (40) Adoption document access as provided in Sections 78B-6-141, 78B-6-144, and
663     78B-6-144.5.
664          (41) Indigent defense as provided in Title 78B, Chapter 22, Part 4, Utah Indigent
665     Defense Commission.
666          (42) The program established by the Division of Facilities Construction and
667     Management under Section 63A-5b-703 under which state agencies receive an appropriation
668     and pay lease payments for the use and occupancy of buildings owned by the Division of
669     Facilities Construction and Management.
670          (43) The State Tax Commission for reimbursing counties for deferred property taxes in
671     accordance with Section 59-2-1802.