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H.B. 223
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SCHOOL AND INSTITUTIONAL TRUST
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LANDS AMENDMENTS
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2000 GENERAL SESSION
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STATE OF UTAH
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Sponsor: Thomas V. Hatch
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AN ACT RELATING TO SCHOOL AND INSTITUTIONAL TRUST LANDS; MODIFYING
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THE PROCEDURE BY WHICH A PURCHASER RECEIVES LEGAL TITLE TO TRUST
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LANDS TO CONFORM TO STANDARD REAL ESTATE PRACTICES; CLARIFYING THE
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PROCEDURE THAT CLAIMANTS MUST FOLLOW TO MAINTAIN UNPATENTED
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FEDERAL MINING CLAIMS ON LANDS ACQUIRED BY THE TRUST LANDS
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ADMINISTRATION; AND MAKING CERTAIN TECHNICAL CHANGES.
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This act affects sections of Utah Code Annotated 1953 as follows:
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AMENDS:
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53C-1-201, as last amended by Chapter 219, Laws of Utah 1998
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53C-2-407, as last amended by Chapter 103, Laws of Utah 1996
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53C-4-102, as last amended by Chapter 103, Laws of Utah 1996
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Be it enacted by the Legislature of the state of Utah:
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Section 1.
Section
53C-1-201
is amended to read:
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53C-1-201. Creation of administration -- Purpose -- Director.
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(1) (a) There is established within state government the School and Institutional Trust
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Lands Administration.
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(b) The administration shall manage all school and institutional trust lands and assets
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within the state, except as otherwise provided in Chapter 3 of this title and Section
51-7-12
.
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(2) The administration is an independent state agency and not a division of any other
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department.
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(3) (a) It is subject to the usual legislative and executive department controls except as
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follows:
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(i) (A) the director may make rules as approved by the board that allow the administration
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to classify a business proposal submitted to the administration as protected under Section
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63-2-304
, for as long as is necessary to evaluate the [proposals] proposal;
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(B) the administration shall return the proposal to the party who submitted the proposal,
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and incur no further duties under Title 63, Chapter 2, Government Records Access and
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Management Act, if the administration determines not to proceed with the proposal;
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(C) the administration shall classify the proposal pursuant to law if it decides to proceed
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with the proposal; and
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(D) Section
63-2-403
does not apply during the review period;
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(ii) the director shall make rules in compliance with Title 63, Chapter 46a, Utah
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Administrative Rulemaking Act, except that the director, with the board's approval, may establish
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a procedure for the expedited approval of rules, based on written findings by the director showing:
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(A) the changes in business opportunities affecting the assets of the trust;
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(B) the specific business opportunity arising out of those changes which may be lost
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without the rule or changes to the rule;
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(C) the reasons the normal procedures under Section
63-46a-4
cannot be met without
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causing the loss of the specific opportunity;
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(D) approval by at least five board members; and
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(E) that the director has filed a copy of the rule and a rule analysis, stating the specific
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reasons and justifications for its findings, with the Division of Administrative Rules and notified
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interested parties as provided in Subsection
63-46a-4
(7); [and]
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(iii) the administration shall comply with Title 67, Chapter 19, Utah State Personnel
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Management Act, except as follows:
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(A) the board may approve, upon recommendation of the director, that exemption for
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specific positions under Subsections
67-19-12
(2) and
67-19-15
(1) is required in order to enable
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the administration to efficiently fulfill its responsibilities under the law. The director shall consult
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with the director of the Department of Human Resource Management prior to making such a
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recommendation. The positions of director, deputy director, assistant director, legal counsel
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appointed under Subsection
53C-1-305
(2), administrative assistant, and public affairs officer are
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exempt under Subsections
67-19-12
(2) and
67-19-15
(1);
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(B) salary for exempted positions, except for the director, shall be set by the director, after
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consultation with the director of the Department of Human Resource Management, within ranges
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approved by the board. The board and director shall consider salaries for similar positions in
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private enterprise and other public employment when setting salary ranges; and
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(C) the board may create an annual incentive and bonus plan for the director and other
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administration employees designated by the board, based upon the attainment of financial
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performance goals and other measurable criteria defined and budgeted in advance by the board;
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and
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(iv) the administration shall comply with Title 63, Chapter 56, Utah Procurement Code,
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except where the board approves, upon recommendation of the director, an exemption under
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Section
63-56-3
and simultaneous adoption of policies for procurement, which enable the
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administration to efficiently fulfill its responsibilities under the law.
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(b) (i) The board and director shall review the exceptions under Subsection (3)(a) and
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make recommendations for any modification, if required, which the Legislature would be asked
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to consider during its annual General Session.
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(ii) The board and director may include in their recommendations any other proposed
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exceptions from the usual executive and legislative controls the board and director consider
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necessary to accomplish the purpose of this title.
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(4) The administration is managed by a director of school and institutional trust lands
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appointed by a majority vote of the board of trustees with the consent of the governor.
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(5) (a) The board of trustees shall provide policies for the management of the
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administration and for the management of trust lands and assets.
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(b) The board shall provide policies for the ownership and control of Native American
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remains that are discovered or excavated on school and institutional trust lands in consultation with
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the Division of Indian Affairs and giving due consideration to Title 9, Chapter 9, Part 4, Native
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American Graves Protection and Repatriation Act.
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(6) In connection with joint ventures for the development of trust lands and minerals
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approved by the board under Subsection
53C-1-303
(4)[(c)] (e), the administration may become
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a member of a limited liability company under Title 48, Chapter 2b, Utah Limited Liability
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Company Act, and is considered a person under Subsection
48-2b-102
(6) for such purposes.
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Section 2.
Section
53C-2-407
is amended to read:
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53C-2-407. Mineral lease application procedures.
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(1) Lands that are not encumbered by a current mineral lease for the same resource, a
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withdrawal order, or other rule of the director prohibiting the lease of the lands, may be offered
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for lease as provided in this section or may, with board approval, be committed to other contractual
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arrangement under Subsection
53C-2-401
(1)(d).
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(2) (a) A notice of the land available for leasing shall be posted in the administration's
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office.
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(b) The notice shall:
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(i) describe the land;
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(ii) indicate what mineral interest in each tract is available for leasing; and
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(iii) state the last date, which shall be no less than 15 days after the notice is posted, on
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which bids may be received.
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(3) (a) Applications for the lease of lands filed before the closing date stated in the notice
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shall be considered to be filed simultaneously.
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(b) The applications shall be:
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(i) submitted in sealed envelopes; and
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(ii) opened in the administration's office at 10:00 a.m. of the first business day following
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the last day on which bids may be received.
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(c) Leases shall be awarded to the highest responsible, qualified bidder, in terms of the
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bonus paid in addition to the first year's rental, who submitted a bid in the manner required.
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(d) (i) In cases of identical bids of successful bidders, the right to lease shall be determined
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by drawing.
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(ii) The drawing shall be held in public at the administration's office.
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(4) (a) At the discretion of the director, mineral leases may be offered at an oral public
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auction.
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(b) The director may set a minimum bid for a public auction.
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(5) The director may award a mineral lease without following the competitive bidding
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procedures specified in Subsections (3) and (4) or conducting an oral public auction, if the mineral
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lessee waives or relinquishes to the trust a prior mining claim, mineral lease, or other right which
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in the opinion of the director might otherwise:
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(a) defeat or encumber the selection of newly acquired land, either for indemnity or other
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purposes, or the acquisition by the trust of any land; or
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(b) cloud the title to any of those lands.
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(6) Following the awarding of a lease to a successful bidder, deposits, except filing fees,
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made by unsuccessful bidders shall be returned to those bidders.
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(7) (a) Lands acquired through exchange or indemnity selection from the federal
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government shall be subject to the vested rights of unpatented mining claimants under the Mining
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Law of 1872, as amended, and other federal vested rights, both surface and minerals.
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(b) Subsection (7)(a) does not:
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(i) prevent the director from negotiating the accommodation of vested rights through any
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method acceptable to the parties; or
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(ii) relieve any person claiming vested rights under the Mining Law of 1872, as amended,
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in lands acquired from the federal government from compliance with Section
53C-2-104
.
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(8) The director may lease lands in the order in which applications are filed if:
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(a) the director offers trust lands for lease for mineral purposes according to the procedures
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in Subsections (3) through (6) and the lands are not leased; or
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(b) a period of time of not less than one year but less than three years has elapsed
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following:
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(i) a revocation of a withdrawal; or
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(ii) the date an existing mineral lease is canceled, relinquished, surrendered, or terminated.
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Section 3.
Section
53C-4-102
is amended to read:
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53C-4-102. Sale of trust lands -- Fair market value -- Determination of sale --
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Advertising proposed sales -- Sale procedures -- Defaults.
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(1) Trust lands may not be sold for less than the fair market value.
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(2) (a) The director shall determine whether disposal or retention of all or a portion of a
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property interest in trust lands is in the best interest of the trust.
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(b) When it is determined that the disposal of an interest in trust lands is in the best interest
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of the applicable trust, the transaction shall be accomplished in an orderly and timely manner.
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(3) The director shall advertise any proposed sale, lease, or exchange of an interest in trust
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lands in a reasonable manner consistent with the director's fiduciary responsibilities.
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(4) (a) Any tract of trust land may be subdivided and sold, leased, or exchanged in
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accordance with a plan or other action designating the land to be subdivided that is approved by
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the director.
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(b) The director may survey the tract and direct its subdivision.
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(c) A plat of the survey shall be filed with the county recorder of the county in which the
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land is located and with the administration.
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(5) Sale conditions, including qualification of prospective purchasers, shall be in
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accordance with accepted mortgage lending and real estate practices.
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(6) Upon the sale of land, the director shall issue to the purchaser a certificate of sale
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which describes the land purchased and states the amount paid, the amount due, and the time when
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the principal and interest will become due.
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[(7) Upon payment in full of principal and interest and the surrender of the original
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certificate of sale for any tract of land sold, or payment in full of any amounts required to be paid
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for the partial release of property, the governor shall issue a patent to the purchaser, heir, assignee,
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successor in interest, or other grantee as determined by the director.]
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(7) (a) Upon request by the director, the governor shall execute and deliver to the director
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a patent for any tract of land sold in the name of the purchaser, heir, assignee, successor in interest,
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or other grantee as determined by the director.
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(b) The governor may execute patents to lots in platted subdivisions in blank, to be held
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in escrow pending sale of the lots to final purchasers.
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(c) Consistent with the director's fiduciary responsibilities, the director shall utilize
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accepted real estate and escrow practices in closing sales of trust lands, except the director may
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not permit the delivery of any patent to the grantee until payment in full of principal and interest,
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or payment in full of any amounts required to be paid for the partial release of property has been
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made.
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(8) (a) If a purchaser of trust lands defaults in the payment of any installment of principal
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or interest due under the terms of the contract of sale, the director shall notify the purchaser that
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if the default is not corrected within 30 days after issuance of the notice the director shall proceed
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with any remedy which the administration may pursue under law or the contract of sale.
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(b) The notice shall be sent by registered or certified mail to the purchaser at the latest
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address as shown by the records of the administration.
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(c) If the default is not corrected by compliance with the requirements of the notice of
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default within the time provided by the notice, the director may pursue any available remedy under
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the contract of sale, including forfeiture.
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(d) If forfeited lands are sold again to the same purchaser, the sale may be made by a new
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and independent contract without regard to the forfeited agreement.
Legislative Review Note
as of 1-6-00 8:38 AM
A limited legal review of this legislation raises no obvious constitutional or statutory concerns.