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S.B. 55
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MINERAL LEASE ACT AMENDMENTS
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2000 GENERAL SESSION
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STATE OF UTAH
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Sponsor: Leonard M. Blackham
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AN ACT RELATING TO MINERAL LEASE REVENUE; ALLOCATING MINERAL LEASE
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REVENUE FROM TRUST LANDS ACQUIRED THROUGH A LAND EXCHANGE WITH
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THE FEDERAL GOVERNMENT; TERMINATING A MANDATORY ANNUAL
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APPROPRIATION FROM THE GENERAL FUND TO THE BOARD OF REGENTS MADE IN
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LIEU OF AN APPROPRIATION OF MINERAL LEASE MONEY; CLARIFYING THE
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CONTENTS AND OPERATION OF THE MINERAL LEASE ACCOUNT; SPECIFYING USES
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OF THE PERMANENT COMMUNITY IMPACT FUND; MAKING TECHNICAL CHANGES;
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AND PROVIDING AN EFFECTIVE DATE.
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This act affects sections of Utah Code Annotated 1953 as follows:
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AMENDS:
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9-4-302, as last amended by Chapter 326, Laws of Utah 1995
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9-4-303, as last amended by Chapters 4 and 127, Laws of Utah 1993
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9-4-305, as last amended by Chapter 326, Laws of Utah 1995
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9-4-307, as last amended by Chapter 78, Laws of Utah 1993
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9-15-102, as enacted by Chapter 368, Laws of Utah 1999
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53C-3-201, as enacted by Chapter 368, Laws of Utah 1999
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53C-3-202, as enacted by Chapter 368, Laws of Utah 1999
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59-21-1, as last amended by Chapter 102, Laws of Utah 1999
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59-21-2, as last amended by Chapter 371, Laws of Utah 1999
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63C-4-103, as enacted by Chapter 371, Laws of Utah 1999
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REPEALS:
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59-21-4, as enacted by Chapter 368, Laws of Utah 1999
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Be it enacted by the Legislature of the state of Utah:
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Section 1.
Section
9-4-302
is amended to read:
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9-4-302. Definitions.
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As used in this part:
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(1) "Acquired lands" is as defined in Section
53C-3-201
.
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(2) "Acquired mineral interests" is as defined in Section
53C-3-201
.
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[(1)] (3) "Bonus payments" [mean] means:
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(a) that portion of the bonus payments received by the United States government under the
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Leasing Act paid to the state under Section 35 of the Leasing Act, together with any interest that
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had accrued on those payments[.]; or
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(b) bonus payments collected by the School and Institutional Trust Lands Administration
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created by Section
53C-1-201
from the lease of:
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(i) minerals on acquired lands; or
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(ii) acquired mineral interests.
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[(2)] (4) "Impact board" means the Permanent Community Impact Fund Board created
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under Section
9-4-304
.
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[(3)] (5) "Impact fund" means the Permanent Community Impact Fund established by this
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chapter.
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[(4)] (6) "Leasing Act" means the Mineral Lands Leasing Act of 1920, 30 U.S.C. Sec. 181
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et seq.[, as amended].
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[(5)] (7) "Subdivision" means [any] a county, city, town, county service area, special
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service district, special improvement district, water conservancy district, water [or] improvement
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district, sewer improvement district, housing authority, building authority, school district, or public
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postsecondary institution organized under the laws of this state.
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Section 2.
Section
9-4-303
is amended to read:
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9-4-303. Impact fund -- Deposits and contents -- Use of fund monies.
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(1) There is created an internal service fund entitled the "Permanent Community Impact
54
Fund."
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(2) The fund consists of:
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(a) all amounts appropriated to the impact fund under Section
59-21-2
;
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(b) [70% of the] bonus payments [in respect of the Department of the Interior oil shale
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prototype leases known as U-A and U-B] deposited to the impact fund pursuant to Subsection
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59-21-1
(2);
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(c) [70% of all other] bonus payments deposited to the impact fund pursuant to Section
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53C-3-202
;
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(d) all amounts received for the repayment of loans made by the impact board under this
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chapter [or from the Community Impact Account]; and
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(e) all other monies appropriated or otherwise made available to the impact fund by the
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Legislature.
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(3) The state treasurer shall:
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(a) invest the monies in the impact fund by following the procedures and requirements of
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Title 51, Chapter 7, State Money Management Act; and
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(b) deposit all interest or other earnings derived from those investments into the impact
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fund.
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(4) The amounts in the impact fund available for loans, grants, administrative costs, or
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other purposes of this part shall be limited to that which the Legislature appropriates for these
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purposes.
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(5) Federal mineral lease revenue received by the state under the Leasing Act that is
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deposited into the impact fund shall be used:
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(a) in a manner consistent with:
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(i) the Leasing Act; and
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(ii) this part; and
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(b) for loans, grants, or both to state agencies or subdivisions that are socially or
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economically impacted by the leasing of minerals under the Leasing Act.
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(6) Mineral lease revenue collected by the School and Institutional Trust Lands
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Administration from the lease of minerals on acquired lands or the lease of acquired mineral
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interests that is deposited into the impact fund shall be used:
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(a) in a manner consistent with this part; and
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(b) for loans, grants, or both to state agencies or subdivisions socially or economically
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impacted by the leasing of:
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(i) minerals on acquired lands; or
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(ii) acquired mineral interests.
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Section 3.
Section
9-4-305
is amended to read:
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9-4-305. Duties -- Loans -- Interest.
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(1) The impact board shall:
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(a) make[, subject to the limitations of the Leasing Act,] grants and loans from the amounts
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appropriated by the Legislature out of the impact fund to state agencies and to subdivisions that
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are or may be socially or economically impacted, directly or indirectly, by mineral resource
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development for:
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(i) planning;
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(ii) construction and maintenance of public facilities; and
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(iii) provision of public services;
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(b) establish the criteria by which the loans and grants will be made;
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(c) determine the order in which projects will be funded;
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(d) in conjunction with other agencies of the state or of subdivisions conduct studies,
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investigations, and research into the effects of proposed mineral resource development projects
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upon local communities;
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(e) sue and be sued in accordance with applicable law;
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(f) qualify for, accept, and administer grants, gifts, loans, or other funds from the federal
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government and from other sources, public or private; and
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(g) perform other duties assigned to it under Sections
11-13-29
and
11-13-30
.
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(2) Monies, including all loan repayments and interest, in the impact fund derived from
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bonus payments may be used for any of the purposes set forth in Subsection (1)(a) but may only
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be given in the form of loans to be paid back into the impact fund by the agency or subdivision.
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(3) The average annual return to the impact fund on all bonus monies may not be less than
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[one-half] 1/2 of the average interest rate paid by the state on general obligation bonds issued
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during the most recent fiscal year in which bonds were sold.
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(4) (a) "Provision of public services" under Subsection (1)(a) includes contracts with
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public postsecondary institutions to fund research, education, or public service programs that[: (i)]
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benefit impacted counties or political subdivisions of the counties[; and].
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[(ii) are consistent with the purposes provided in Subsection
59-21-1
(1)(a)(ii).]
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(b) Each contract under Subsection (4)(a) shall be:
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(i) based on an application to the impact board from the impacted county; and
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(ii) approved by the county legislative body.
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(c) For purposes of this section, a land use plan is a public service program.
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Section 4.
Section
9-4-307
is amended to read:
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9-4-307. Impact fund administered by impact board -- Eligibility for assistance --
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Review by board -- Administration costs -- Annual report.
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(1) The impact board shall administer the impact fund in a manner which will keep a
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portion of the impact fund revolving and shall determine provisions for repayment of loans.
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(2) In order to receive assistance under this part, subdivisions shall submit formal
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applications with such information as the impact board prescribes.
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(3) (a) The impact board shall establish criteria for determining eligibility for assistance
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under this part [which are consistent with the purposes of Section 35 of the Leasing Act].
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(b) Criteria for awarding loans or grants made from funds described in Subsection
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9-4-303
(5) shall be consistent with Subsection
9-4-303
(5).
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(c) Criteria for awarding loans or grants made from funds described in Subsection
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9-4-303
(6) shall be consistent with Subsections
9-4-303
(6) and
9-4-305
(1)(a).
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(d) In determining eligibility for loans and grants under this part, the impact board shall
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consider the following:
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[(a)] (i) the subdivision's current [federal] mineral lease production;
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[(b)] (ii) the feasibility of the actual development of a resource which may impact the
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subdivision directly or indirectly;
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[(c)] (iii) current taxes being paid by the subdivision's residents;
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[(d)] (iv) the borrowing capacity of the subdivision, its ability and willingness to sell bonds
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or other securities in the open market, and its current and authorized indebtedness, except that the
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impact board may not fund any education project which could otherwise have reasonably been
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funded by a school district through a program of annual budgeting, capital budgeting, bonded
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indebtedness, or special assessments;
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[(e)] (v) all possible additional sources of state and local revenue, including utility user
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charges;
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[(f)] (vi) the availability of federal assistance funds;
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[(g)] (vii) probable growth of population due to actual or prospective natural resource
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development in an area;
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[(h)] (viii) existing public facilities and services;
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[(i)] (ix) the extent of the expected direct or indirect impact upon public facilities and
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services of the actual or prospective natural resource development in an area; and
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[(j)] (x) the extent of industry participation in an impact alleviation plan, either as specified
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in Title 63, Chapter 51, Resource Development, or otherwise.
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[(2)] (4) The impact board may restructure all or part of the agency's or subdivision's
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liability to repay loans for extenuating circumstances.
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[(3)] (5) The impact board shall review the proposed usages of the impact fund for loans
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or grants prior to approval and may condition approval on [such] assurances [as] that the impact
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board [deems] considers to be necessary to ensure that the proceeds of the loan or grant will be
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used in accordance with [the provisions of] the Leasing Act and this part.
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(6) Any loan shall specify the terms for repayment and shall be evidenced by general
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obligation, special assessment, or revenue bonds, notes, or other obligations of the appropriate
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subdivision issued to the impact board pursuant to such authority for the issuance thereof as may
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exist at the time of the loan.
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[(4)] (7) The impact board shall allocate from the impact fund to the department those
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funds that are appropriated by the Legislature for the administration of the impact fund, but this
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amount may not exceed 2% of the annual receipts to the impact fund.
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[(5)] (8) The department shall make an annual report to the Legislature concerning the
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number and type of loans and grants made as well as a list of subdivisions which received this
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assistance.
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[(6) Notwithstanding anything to the contrary in this part, no loan or grant may be made
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to any subdivision that is not in compliance by January 1, 1983, with the directives of the State Tax
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Commission with respect to factoring.]
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Section 5.
Section
9-15-102
is amended to read:
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9-15-102. Rural Electronic Commerce Communications System Fund -- Deposits and
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contents -- Interest -- Administration.
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(1) In order to preserve and promote communications systems, such as broadcast
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television, in the rural areas of the state, there is created a fund entitled the Rural Electronic
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Commerce Communications System Fund.
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(2) The fund shall consist of:
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(a) monies deposited to the fund under this chapter;
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(b) monies deposited to the fund under [Subsection
59-21-4
(2)] Section
53C-3-202
; and
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(c) bond proceeds from the issuance and sale of revenue bonds authorized under
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Subsection
9-15-104
(2).
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(3) The fund shall earn interest, which shall be deposited in the fund.
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(4) Any unallocated balance in the fund at the end of a fiscal year shall be nonlapsing.
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(5) The division may use fund monies for administration of the fund, but not to exceed 2%
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of the annual receipts to the fund.
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Section 6.
Section
53C-3-201
is amended to read:
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53C-3-201. Definitions.
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As used in this part:
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(1) "Acquired lands" means those lands acquired by the administration under the
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agreement.
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(2) "Acquired mineral interests" means mineral interests acquired by the administration
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pursuant to Section 3(F), (K), (L), or (M) of the agreement.
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[(2)] (3) "Agreement" means the Agreement to Exchange Utah School Trust Lands
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Between the State of Utah and the United States of America, signed May 8, 1998, as ratified by
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the Utah School and Lands Exchange Act of 1998, Pub. L. 105-335.
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[(3)] (4) "Identified tracts" means the tracts identified in Section 3(F), (G), (J), (K), (L),
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and (M) of the agreement, generally referred to as the Cottonwood Tract, Westridge Coal Tract,
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Ferron Field, Mill Fork Tract, Dugout Canyon Tract, Muddy Tract, and North Horn Coal Tract.
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[(4)] (5) "Subject mineral" means any mineral that is covered by the [Act of Congress of
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February 25, 1920, known as the "]Mineral Lands Leasing Act["], 30 U.S.C. Sec. 181 et seq., as
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amended through the date of enactment of this part.
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Section 7.
Section
53C-3-202
is amended to read:
207
53C-3-202. Collection and distribution of revenues from federal land exchange
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parcels.
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(1) The director is responsible for the collection of all bonus [bids] payments, rentals, and
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royalties from the lease of:
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(a) minerals on [the] acquired lands; and
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(b) acquired mineral interests.
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(2) The director shall [distribute]:
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(a) except as provided in Subsections (3) and (4), no later than the last day of the second
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month following each calendar quarter, distribute all bonus [bids] payments received during [each]
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the calendar quarter from the lease of coal, oil and gas, and coalbed methane on the identified
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tracts [not later than the end of the second month following the quarter] as follows:
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(i) 50% to the United States [of America];
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(ii) 17.16% to the Permanent Community Impact Fund created in Section
9-4-303
;
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(iii) 15% to the Constitutional Defense Restricted Account created in Section
63C-4-103
;
221
(iv) 15% to the Rural Electronic Commerce Communications System Fund created by
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Section
9-15-102
; and
223
[(ii)] (v) 2.84% to the Rural Development Fund created under Section
9-14-102
; [and]
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[(iii) the remaining 47.16% as provided in Section
59-21-4
; and]
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(b) no later than the last day of the second month following each calendar quarter,
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distribute all [rentals and royalties] bonus payments received during [each] the calendar quarter
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from the lease of subject [mineral leases] minerals on acquired lands, other than identified tracts,
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as follows:
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(i) 50% to the Land Grant Management Fund created by Section
53C-3-101
;
230
(ii) 47.16% to the Permanent Community Impact Fund created by Section
9-4-303
; and
231
(iii) 2.84% to the Rural Development Fund created by Section
9-14-102
; and
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(c) except as provided in Subsections (3) and (4), no later than the last day of the second
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month following each calendar quarter, distribute all rentals and royalties received during the
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calendar quarter from the lease of subject minerals on the acquired lands [not later than the end of
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the second month following the quarter] and the lease of acquired mineral interests as follows:
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(i) 50% to the Land Grant Management Fund created [under] by Section
53C-3-101
;
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(ii) 32.16% to the Mineral Lease Account created by Subsection
59-21-2
(3);
238
(iii) 7.5% to the Constitutional Defense Restricted Account created by Section
63C-4-103
;
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(iv) 7.5% to the Rural Electronic Commerce Communications System Fund created by
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Section
9-15-102
; and
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[(ii)] (v) 2.84% to the Rural Development Fund created [under] by Section
9-14-102
[;
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and].
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[(iii) the remaining 47.16% as provided in Section
59-21-4
.]
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(3) Notwithstanding Subsections (2)(a) and (2)(c), if the distribution required by
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Subsection (2)(a)(iii) or (2)(c)(iii) would cause the balance of the Constitutional Defense
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Restricted Account to exceed $2,000,000, the director shall:
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(a) reduce the distribution required by Subsection (2)(a)(iii), (2)(c)(iii), or both so that the
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distribution will cause the balance of the Constitutional Defense Restricted Account to be
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$2,000,000; and
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(b) distribute to the Permanent Community Impact Fund an amount equal to the difference
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between:
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(i) the sum of:
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(A) the bonus payments described in Subsection (2)(a) that, but for this Subsection (3),
254
would be deposited into the Constitutional Defense Restricted Account under Subsection
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(2)(a)(iii); and
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(B) the rentals and royalties described in Subsection (2)(c) that, but for this Subsection (3),
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would be deposited into the Constitutional Defense Restricted Account under Subsection
258
(2)(c)(iii); and
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(ii) $2,000,000.
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(4) Notwithstanding Subsections (2)(a) and (2)(c), if the sum of the distributions to the
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Rural Electronic Commerce Communications System Fund required by Subsections (2)(a)(iv) and
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(2)(c)(iv) exceed $750,000 in any fiscal year, the director shall distribute to the Permanent
263
Community Impact Fund an amount equal to the difference between:
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(a) the sum of:
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(i) the bonus payments described in Subsection (2)(a) that, but for this Subsection (4),
266
would be deposited into the Rural Electronic Commerce Communications System Fund under
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Subsection (2)(a)(iv); and
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(ii) the rentals and royalties described in Subsection (2)(c) that, but for this Subsection (4),
269
would be deposited into the Rural Electronic Commerce Communications System Fund under
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Subsection (2)(c)(iv); and
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(b) $750,000.
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[(3)] (5) (a) The director may retain up to 8% of the monies collected under Subsection
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(1) to pay for administrative costs incurred under Subsection (1).
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(b) The administrative costs may be deducted prior to the distributions made under
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Subsections (2)(a) [and (b)] through (2)(c).
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(c) The director shall keep the administrative cost deductions in separate accounts.
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(d) (i) For purposes of this section, administrative costs:
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(A) include:
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(I) direct costs incurred by the administration [as well as]; and
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(II) out-of-pocket expenditures incurred by the administration that are directly attributable
281
to leasing [and] or management of the acquired lands for subject minerals [and] or acquired
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mineral interests; and
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(B) shall be determined in a manner similar to that used by the federal government
284
pursuant to 30 U.S.C. Sec.191(b).
285
(ii) If the administration includes out-of-pocket expenditures under Subsection [(3)]
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(5)(d)(i) in determining its costs, those expenditures may not be included in its general calculation
287
of direct costs.
288
(e) (i) At the end of each fiscal year, the director shall reconcile the amount actually spent
289
under Subsection [(3)] (5)(d) with the amount retained under Subsection [(3)] (5)(a).
290
(ii) The director shall distribute any excess from the reconciliation pursuant to
291
[Subsection] Subsections (2) through (4).
292
(iii) The director may retain an amount sufficient to cover the expected administrative
293
costs allowed under Subsection [(3)] (5)(d) for the subsequent fiscal year, less the expected
294
deduction for the subsequent fiscal year under Subsection [(3)] (5)(a).
295
Section 8.
Section
59-21-1
is amended to read:
296
59-21-1. Disposition of federal mineral lease monies -- Priority to political
297
subdivisions impacted by mineral development -- Disposition of mineral bonus payments --
298
Appropriation of monies attributable to royalties from extraction of minerals on federal land
299
located within boundaries of Grand Staircase-Escalante National Monument.
300
(1) [(a)] Except as provided in Subsections (2) through (4), all monies received from the
301
United States under the provisions of the Mineral Lands Leasing Act, 30 U.S.C. Sec. 181 et seq.,
302
shall:
303
[(i)] (a) be deposited in the Mineral Lease Account of the General Fund; and
304
[(ii)] (b) be appropriated by the Legislature giving priority to those subdivisions of the
305
state socially or economically impacted by development of minerals leased under the Mineral
306
Lands Leasing Act, for:
307
[(A)] (i) planning;
308
[(B)] (ii) construction and maintenance of public facilities; and
309
[(C)] (iii) provision [for] of public services[; and].
310
[(D) housing.]
311
[(b) (i) To the extent determined necessary by the Legislature to provide for the purposes
312
specified in Subsection (1)(a), the Legislature shall appropriate the money received from the
313
United States either totally or partially to:]
314
[(A) the Permanent Community Impact Fund established by Section
9-4-303
;]
315
[(B) the Board of Water Resources for loans under Section
73-10-23
; or]
316
[(C) counties, cities, towns, or other political subdivisions of this state socially or
317
economically impacted by development of minerals leased under the Mineral Land Lands Leasing
318
Act.]
319
[(ii) Any balance of the money may be appropriated by the Legislature.]
320
(2) Seventy percent of money received from [the United States attributable to the bonus
321
payments on the Department of the Interior oil shale prototype leases known as U-A and U-B and
322
70% of all other] federal mineral lease bonus payments[,] shall be deposited into the Permanent
323
Community Impact Fund and shall be used as provided in Title 9, Chapter 4, Part 3, Community
324
Impact Alleviation.
325
(3) Thirty percent of [the] money received from [the United States attributable to bonus
326
payments on its oil shale prototype leases described in Subsection (2) and 30% of all other] federal
327
mineral lease bonus payments shall be deposited in the Mineral Bonus Account created by
328
Subsection
59-21-2
[(1)](2) and appropriated as provided in that subsection.
329
(4) (a) For purposes of [Subsections (4)(b) through (f)] this Subsection (4):
330
(i) the "boundaries of the Grand Staircase-Escalante National Monument" means the
331
boundaries:
332
(A) established by Presidential Proclamation No. 6920, 61 Fed. Reg. 50,223 (1996); and
333
(B) modified by:
334
(I) Pub. L. No. 105-335, 112 Stat. 3139; and
335
(II) Pub. L. No. 105-355, 112 Stat. [3139] 3247; and
336
(ii) a special [service] district, school district, or federal land is considered to be located
337
within the boundaries of the Grand Staircase-Escalante National Monument if a portion of the
338
special [service] district, school district, or federal land is located within the boundaries described
339
in Subsection (4)(a)(i).
340
(b) Beginning on July 1, 1999, the Legislature shall appropriate, as provided in
341
Subsections (4)(c) through [(f)] (g), monies received from the United States that are attributable
342
to royalties from the extraction of minerals on federal land that, on September 18, 1996, was
343
located within the boundaries of the Grand Staircase-Escalante National Monument.
344
(c) The Legislature shall annually appropriate 40% of the monies described in Subsection
345
(4)(b) to the Department of Transportation to be distributed by the Department of Transportation
346
to special [service] districts [within] that are:
347
(i) established by counties[:] under Title 17A;
348
[(i) if the special service districts are:]
349
[(A)] (ii) socially or economically impacted by the development of minerals under the
350
Mineral Lands Leasing Act; and
351
[(B)] (iii) located within the boundaries of the Grand Staircase-Escalante National
352
Monument[; and].
353
[(ii)] (d) The Department of Transportation shall distribute the money described in
354
Subsection (4)(c) in amounts proportionate to the amount of federal mineral lease money generated
355
by the county in which a special [service] district is located.
356
[(d)] (e) The Legislature shall annually appropriate 40% of the monies described in
357
Subsection (4)(b) to the State Board of Education to be distributed equally to school districts [if
358
the school districts] that are:
359
(i) socially or economically impacted by the development of minerals under the Mineral
360
Lands Leasing Act; and
361
(ii) located within the boundaries of the Grand Staircase-Escalante National Monument.
362
[(e)] (f) The Legislature shall annually appropriate 2.25% of the monies described in
363
Subsection (4)(b) to the Utah Geological Survey to facilitate the development of energy and
364
mineral resources in counties that are:
365
(i) socially or economically impacted by the development of minerals under the Mineral
366
Lands Leasing Act; and
367
(ii) located within the boundaries of the Grand Staircase-Escalante National Monument.
368
[(f)] (g) Seventeen and three-fourths percent of the monies described in Subsection (4)(b)
369
shall be deposited annually into the State School Fund established by Utah Constitution Article
370
X, Section 5.
371
Section 9.
Section
59-21-2
is amended to read:
372
59-21-2. Definitions -- Mineral Bonus Account created -- Contents -- Use of Mineral
373
Bonus Account money -- Mineral Lease Account created -- Contents -- Appropriation of
374
monies from Mineral Lease Account.
375
(1) As used in this section:
376
(a) "Acquired lands" is as defined in Section
53C-3-201
.
377
(b) "Acquired mineral interests" is as defined in Section
53C-3-201
.
378
[(1)] (2) (a) The Mineral Bonus Account is created within the General Fund.
379
(b) [All bonus money received by the state under] The Mineral Bonus Account consists
380
of federal mineral lease bonus payments deposited pursuant to Subsection
59-21-1
(3) [shall be
381
deposited in this account].
382
(c) The Legislature shall [appropriate] make appropriations from the Mineral Bonus
383
Account in accordance with Section 35 of the Mineral Lands Leasing Act of 1920, 30 U.S.C. Sec.
384
191.
385
(d) The state treasurer shall:
386
(i) invest the money in the Mineral Bonus Account by following the procedures and
387
requirements of Title 51, Chapter 7, State Money Management Act; and
388
(ii) deposit all interest or other earnings derived from the account into the Mineral Bonus
389
Account.
390
(3) (a) The Mineral Lease Account is created within the General Fund.
391
(b) The Mineral Lease Account consists of:
392
(i) federal mineral lease money deposited pursuant to Subsection
59-21-1
(1); and
393
(ii) rentals and royalties from the lease of the following deposited pursuant to Section
394
53C-3-202
:
395
(A) minerals on acquired lands; or
396
(B) acquired mineral interests.
397
[(2)] (c) The Legislature shall make appropriations from the Mineral Lease Account as
398
provided in Subsection
59-21-1
(1) and this Subsection [(2)] (3).
399
[(a)] (d) [(i) Except as provided in Subsection (2)(a)(ii) and (2)(a)(iii), in addition to the
400
appropriation under Subsection (2)(b)(ii), the] The Legislature shall annually appropriate 32.5%
401
of all deposits made to the Mineral Lease Account to the Permanent Community Impact Fund
402
established by Section
9-4-303
.
403
[(ii) Except as provided in Subsection (2)(a)(iii) , the Legislature shall: (A) for the fiscal
404
year beginning on July 1, 1999, and ending on June 30, 2000, appropriate 3% of all deposits made
405
to the Permanent Community Impact Fund as provided in Subsection (2)(a)(i) to the Constitutional
406
Defense Restricted Account created in Section
63C-4-103
; and (B) for fiscal years beginning on
407
or after July 1, 2000, appropriate 1% of all deposits made to the Permanent Community Impact
408
Fund as provided in Subsection (2)(a)(i) to the Constitutional Defense Restricted Account created
409
in Section
63C-4-103
.]
410
[(iii) If the appropriation required by Subsection (2)(a)(ii) would cause the balance of the
411
Constitutional Defense Restricted Account to exceed $1 million, the Legislature shall reduce the
412
appropriation required by Subsection (2)(a)(ii) so that the appropriation will cause the balance of
413
the Constitutional Defense Restricted Account to be $1 million.]
414
[(b) (i) Except as provided in Subsection (2)(b)(ii), the Legislature shall appropriate 33.5%
415
of all deposits made to the Mineral Lease Account to the Board of Regents for allocation to the
416
state's institutions of higher education.]
417
[(ii) (A) For the fiscal year beginning on July 1, 1996, and ending on June 30, 1997, the
418
Legislature shall appropriate 20% of the mineral lease funds that would otherwise be appropriated
419
to the Board of Regents under Subsection (2)(b)(i) to the Permanent Community Impact Fund.]
420
[(B) For the fiscal year beginning on July 1, 1997, and ending on June 30, 1998, the
421
Legislature shall appropriate 40% of the mineral lease funds that would otherwise be appropriated
422
to the Board of Regents under Subsection (2)(b)(i) to the Permanent Community Impact Fund.]
423
[(C) For fiscal years beginning on or after July 1, 1998, the Legislature shall annually
424
appropriate as follows an additional 20% of the funds that would otherwise be appropriated to the
425
Board of Regents under Subsection (2)(b)(i) until the Legislature appropriates 100% of the funds
426
that would otherwise be appropriated to the Board of Regents:]
427
[(I) the Legislature shall make an appropriation to the Department of Transportation as
428
provided in Subsection (2)(f)(ii);]
429
[(II) the Legislature shall make an appropriation to the Department of Community and
430
Economic Development as provided in Subsection (2)(g);]
431
[(III) the Legislature shall make the appropriations provided for in Subsection (2)(h); and]
432
[(IV) the Legislature shall, after making the appropriations under Subsections
433
(2)(b)(ii)(C)(I) through (III), appropriate the remainder of the funds that would otherwise be
434
appropriated to the Board of Regents to the Permanent Community Impact Fund.]
435
[(D) For fiscal years beginning on or after July 1, 1996, the Legislature shall appropriate
436
an equivalent amount from the General Fund to the Board of Regents to replace the mineral lease
437
monies the Board of Regents would have otherwise received under Subsection (2)(b)(i).]
438
[(c)] (e) The Legislature shall annually appropriate 2.25% of all deposits made to the
439
Mineral Lease Account to the State Board of Education, to be used for education research and
440
experimentation in the use of staff and facilities designed to improve the quality of education in
441
Utah.
442
[(d)] (f) The Legislature shall annually appropriate 2.25% of all deposits made to the
443
Mineral Lease Account to the Utah Geological Survey, to be used for activities carried on by the
444
survey having as a purpose the development and exploitation of natural resources in the state.
445
[(e)] (g) The Legislature shall annually appropriate 2.25% of all deposits made to the
446
Mineral Lease Account to the Water Research Laboratory at Utah State University, to be used for
447
activities carried on by the laboratory having as a purpose the development and exploitation of
448
water resources in the state.
449
[(f)] (h) (i) The Legislature shall annually appropriate [the following percentages] to the
450
Department of Transportation 40% of all deposits made to the Mineral Lease Account to [the
451
Department of Transportation, to] be distributed [as follows] as provided in Subsection (3)(h)(ii)
452
to:
453
(A) counties;
454
(B) special districts established:
455
(I) by counties;
456
(II) under Title 17A; and
457
(III) for the purpose of constructing, repairing, [and] or maintaining roads[,]; or
458
(C) special districts established:
459
(I) by counties;
460
(II) under Title 17A; and
461
(III) for other purposes authorized by statute[:].
462
[(i)] (ii) [the Legislature shall annually appropriate to the] The Department of
463
Transportation [25%] shall allocate the funds specified in Subsection (3)(h)(i):
464
(A) in amounts proportionate to the amount of mineral lease money generated by each
465
county; and
466
(B) to a county or special district established by a county under Title 17A, as determined
467
by the county legislative body.
468
(i) (i) The Legislature shall annually appropriate 5% of all deposits made to the Mineral
469
Lease Account to the Department of Community and Economic Development to be distributed to:
470
(A) special [service] districts [within counties; and] established:
471
[(ii) in addition to the appropriation under Subsection (2)(f)(i), the Legislature shall make
472
the following appropriations from mineral lease funds that would be appropriated to the Board of
473
Regents under Subsection (2)(b)(i) except for the appropriations provided in Subsection
474
(2)(b)(ii)(C):]
475
[(A) for the fiscal year beginning on July 1, 1998, and ending on June 30, 1999, the
476
Legislature shall appropriate 5% of all deposits made to the Mineral Lease Account to the
477
Department of Transportation to be distributed to special service districts within counties;]
478
[(B) for the fiscal year beginning on July 1, 1999, and ending on June 30, 2000, the
479
Legislature shall appropriate 10% of all deposits made to the Mineral Lease Account to the
480
Department of Transportation to be distributed to special service districts within counties; and]
481
[(C) for fiscal years beginning on or after July 1, 2000, the Legislature shall appropriate
482
15% of all deposits made to the Mineral Lease Account to the Department of Transportation to be
483
distributed to special service districts within counties.]
484
[(g) (i) The Legislature shall appropriate the following percentages of all deposits made
485
to the Mineral Lease Account to the Department of Community and Economic Development to
486
be distributed as follows for the purpose of constructing, repairing, and maintaining roads, or for
487
other purposes authorized by statute:]
488
[(A) for the fiscal year beginning on July 1, 1998, and ending on June 30, 1999, the
489
Legislature shall appropriate 2.5% of all deposits made to the Mineral Lease Account to the
490
Department of Community and Economic Development to be distributed to special service districts
491
within counties:]
492
(I) by counties;
493
(II) under Title 17A; and
494
(III) for the purpose of constructing, repairing, or maintaining roads; or
495
(B) special districts established:
496
(I) by counties;
497
(II) under Title 17A; and
498
(III) for other purposes authorized by statute.
499
(ii) The Department of Community and Economic Development may distribute the
500
amounts described in Subsection (3)(i)(i) only to special districts established under Title 17A by
501
counties:
502
[(I)] (A) of the third, fourth, fifth, or sixth class;
503
[(II)] (B) in which 4.5% or less of the mineral lease moneys within the state are generated;
504
and
505
[(III)] (C) that are significantly socially or economically impacted as provided in
506
Subsection (3)(i)(iii) by the development of:
507
(I) minerals under the Mineral Lands Leasing Act, 30 U.S.C. Sec. 191[, as a result of
508
either];
509
(II) minerals on acquired lands; or
510
(III) acquired mineral interests.
511
(iii) The significant social or economic impact required under Subsection (3)(i)(ii)(C) shall
512
be as a result of:
513
(A) the transportation within the county of hydrocarbons, including solid hydrocarbons
514
as defined in Section
59-5-101
[, within the county,];
515
(B) the employment of persons residing within the county in hydrocarbon extraction,
516
including the extraction of solid hydrocarbons as defined in Section
59-5-101
[, of persons residing
517
within the county, or both; and]; or
518
[(B) for fiscal years beginning on or after July 1, 1999, the Legislature shall appropriate
519
5% of all deposits made to the Mineral Lease Account to the Department of Community and
520
Economic Development to be distributed to special service districts within counties meeting the
521
requirements of Subsections (2)(g)(i)(A)(I) through (III).]
522
[(ii) The executive director of the Department of Community and Economic
523
Development:]
524
[(A) shall determine whether a county meets the requirements of Subsections
525
(2)(g)(i)(A)(I) through (III);]
526
[(B) shall distribute the appropriations under Subsection (2)(g)(i) to special service
527
districts within counties that meet the requirements of Subsections (2)(g)(i)(A)(I) through (III)
528
as provided in Subsection (2)(g)(iii); and]
529
[(C) in accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, may
530
make rules:]
531
[(I) providing a procedure for making the distributions under Subsection (2)(g)(ii)(B) to
532
special service districts; and]
533
[(II) defining the term "population" for purposes of Subsection (2)(g)(ii)(B).]
534
(C) a combination of Subsections (3)(i)(iii)(A) and (B).
535
[(iii)] (iv) For purposes of distributing the appropriations under this Subsection [(2)(g)(i)]
536
(3)(i) to special [service] districts [within] established by counties under Title 17A, the Department
537
of Community and Economic Development shall:
538
(A) (I) allocate 50% of the appropriations equally among the counties meeting the
539
requirements of Subsections [(2)(g)(i)(A)(I) through (III)] (3)(i)(ii) and (iii); and
540
(II) allocate 50% of the appropriations based on the ratio that the population of each county
541
meeting the requirements of Subsections [(2)(g)(i)(A)(I) through (III)] (3)(i)(ii) and (iii) bears to
542
the total population of all of the counties meeting the requirements of Subsections [(2)(g)(i)(A)(I)
543
through (III)] (3)(i)(ii) and (iii); and
544
(B) after making the allocations described in Subsection [(2)(g)(iii)(A)] (3)(i)(iv)(A),
545
distribute the allocated revenues to special [service] districts [within] established under Title 17A
546
by the counties as determined by the executive director of the Department of Community and
547
Economic Development after consulting with the county legislative bodies of the counties meeting
548
the requirements of Subsection [(2)(g)(i)(A)(I) through (III)] (3)(i)(ii) and (iii).
549
(v) The executive director of the Department of Community and Economic Development:
550
(A) shall determine whether a county meets the requirements of Subsections (3)(i)(ii) and
551
(iii);
552
(B) shall distribute the appropriations under Subsection (3)(i)(i) to special districts
553
established by counties under Title 17A that meet the requirements of Subsections (3)(i)(ii) and
554
(iii); and
555
(C) in accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, may
556
make rules:
557
(I) providing a procedure for making the distributions under this Subsection (3)(i) to
558
special districts; and
559
(II) defining the term "population" for purposes of Subsection (3)(i)(iv).
560
[(h)] (j) (i) The Legislature shall annually make the following appropriations from the
561
Mineral Lease Account:
562
[(i)] (A) an amount equal to 52 cents multiplied by the number of acres of school or
563
institutional trust lands, lands owned by the Division of Parks and Recreation, and lands owned
564
by the Division of Wildlife Resources that are not under an in lieu of taxes contract, to each county
565
in which those lands are located;
566
[(ii)] (B) to each county in which school or institutional trust lands are transferred to the
567
federal government after December 31, 1992, an amount equal to the number of transferred acres
568
in the county multiplied by a payment per acre equal to the difference between 52 cents per acre
569
and the per acre payment made to that county in the most recent payment under the federal
570
payment in lieu of taxes program, 31 U.S.C. Sec. 6901 [or P.L. 97-258 as amended] et seq., unless
571
the federal payment was equal to or exceeded the 52 cents per acre, in which case [no] a payment
572
[shall] under this Subsection (3)(j)(i)(B) may not be made for the transferred lands; and
573
[(iii)] (C) to each county in which federal lands, which are entitlement lands under the
574
federal in lieu of taxes program, are transferred to the school or institutional trust, an amount equal
575
to the number of transferred acres in the county multiplied by a payment per acre equal to the
576
difference between the most recent per acre payment made under the federal payment in lieu of
577
taxes program and 52 cents per acre, unless the federal payment was equal to or less than 52 cents
578
per acre, in which case [no] a payment [shall] under this Subsection (3)(j)(i)(C) may not be made
579
for the transferred land.
580
(ii) Each county receiving money under Subsection (3)(j)(i) shall distribute the money to
581
special districts established by the county under Title 17A.
582
(iii) (A) Beginning in fiscal year 1994-95 and in each year after fiscal year 1994-95, the
583
Division of Finance shall increase or decrease the amounts per acre provided for in Subsection
584
(3)(j)(i) by the average annual change in the Consumer Price Index for all urban consumers
585
published by the Department of Labor.
586
[(i)] (k) [Beginning on July 1, 2000, the] The Legislature shall[, after making the
587
appropriations provided for in Subsections (2)(a) through (h) ,] annually appropriate [the
588
remainder of] to the Permanent Community Impact Fund all deposits [made to] remaining in the
589
Mineral Lease Account [to the Permanent Community Impact Fund] after making the
590
appropriations provided for in Subsections (3)(d) through (3)(j).
591
[(3) (a) Until July 1, 1999, the Board of Regents may not:]
592
[(i) increase the total amount of federal mineral lease funds allocated during any fiscal year
593
above the amount allocated during the last fiscal year more than the percentage increase in the
594
Consumer Price Index published by the United States Department of Labor for the last calendar
595
year; and]
596
[(ii) increase the total amount allocated more than 10% above the amount allocated during
597
the last fiscal year.]
598
[(b) If the total amount of mineral lease funds allocated to a recipient agency or institution
599
in any fiscal year is less than the total amount allocated for the last fiscal year, the allocation to that
600
agency or institution for the next fiscal year shall be increased by the amount of the reduction
601
before calculating and applying the percent limitation.]
602
[(c) (i) Higher education institutions shall expend the federal mineral lease funds
603
apportioned to them via institutional work programs.]
604
[(ii) The Board of Regents may approve those programs only when it is satisfied that a
605
majority of the funds will be expended for research, educational, or public service programs of
606
benefit to subdivisions of the state that are socially or economically impacted by the development
607
of minerals leased under the Mineral Lands Leasing Act in the planning, construction, and
608
maintenance of public facilities, and the provision of public services.]
609
[(d) (i) Except as provided in Subsection (3)(d)(ii), each institution of higher education
610
is entitled to an amount of mineral lease funds equal to the proportion of the total amount available
611
that the average number of full-time students enrolled during the preceding year at that institution
612
bears to the total enrollment of all institutions.]
613
[(ii) Enrollment at the University of Utah and Utah State University shall first be
614
multiplied by 1.25 and that product shall constitute the enrollment of the University of Utah and
615
Utah State University for the purposes of determining their proportionate allocation.]
616
[(4) The federal mineral lease funds allocated to the Water Research Laboratory at Utah
617
State University are in addition to any other money to which Utah State University is entitled under
618
this section.]
619
[(5) Federal mineral lease funds distributed by the Department of Transportation under
620
Subsection (2)(f) shall be allocated to county special service districts in amounts proportionate to
621
the amount of federal mineral lease money generated by the county in which a special service
622
district is located.]
623
[(6) (a) Each county receiving money under Subsection (2)(h) shall give the money to a
624
school district or other special service district within the county.]
625
[(b) Beginning in fiscal year 1994-95 and in each year thereafter, the amount per acre
626
provided in Subsection (2)(h)(i) shall adjust to reflect changes in the rate of inflation as measured
627
by the Consumer Price Index.]
628
[(7)] (4) (a) Each agency, board, institution of higher education, and political subdivision
629
receiving money under this chapter shall provide the Legislature, through the Office of the
630
Legislative Fiscal Analyst, with a complete accounting of the use of that money on an annual basis.
631
[This accounting]
632
(b) The accounting required under Subsection (4)(a) shall:
633
[(a)] (i) include actual expenditures for the prior fiscal year, budgeted expenditures for the
634
current fiscal year, and planned expenditures for the following fiscal year; and
635
[(b)] (ii) be reviewed by the Economic Development and Human Resources Appropriation
636
Subcommittee as part of its normal budgetary process under Title 63, Chapter 38, Budgetary
637
Procedures Act.
638
[(8) All monies in or appropriated to the Targeted Allocation Fund shall be transferred to
639
the Permanent Community Impact Fund.]
640
Section 10.
Section
63C-4-103
is amended to read:
641
63C-4-103. Creation of Constitutional Defense Restricted Account -- Sources of
642
funds -- Uses of funds.
643
(1) There is created a restricted account within the General Fund known as the
644
Constitutional Defense Restricted Account.
645
(2) The account consists of monies from the following revenue sources:
646
(a) monies deposited to the [fund from the Mineral Bonus Account] account as required
647
by [Subsection
59-21-2
(2)] Section
53C-3-202
;
648
(b) voluntary contributions;
649
(c) monies received by the Constitutional Defense Council from other state agencies; and
650
(d) appropriations made by the Legislature.
651
(3) Funds in the account shall be nonlapsing.
652
[(4) (a) The account shall earn interest.]
653
[(b) All interest earned on account monies shall be deposited into the General Fund.]
654
[(5)] (4) The account balance may not exceed [$1 million] $2,000,000.
655
[(6)] (5) The Legislature may annually appropriate monies from the Constitutional Defense
656
Restricted Account to the Constitutional Defense Council to carry out its duties in Section
657
63C-4-102
.
658
Section 11. Repealer.
659
This act repeals:
660
Section 59-21-4, Revenues from land exchange parcels -- Distribution.
661
Section 12. Effective date.
662
This act takes effect on July 1, 2000.
Legislative Review Note
as of 2-2-00 1:14 PM
A limited legal review of this legislation raises no obvious constitutional or statutory concerns.