02-22 21:34 3rd Sub. (Cherry) H.B. 483
R. Neil Walter proposes the following substitute bill:
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School and Institutional Trust Lands Administration Modifications
2025 GENERAL SESSION
STATE OF UTAH
Chief Sponsor: R. Neil Walter
Senate Sponsor:
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LONG TITLE
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General Description:
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This bill addresses provisions related to school and institutional trust lands.
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Highlighted Provisions:
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This bill:
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▸ requires the director of the School and Institutional Trust Lands Administration
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(administration) to complete a valuation of the administration's land portfolio every five
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years;
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▸ requires the director to report annually to the Legislature:
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● the activities of the administration;
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● an approximate valuation of the administration's land portfolio;
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● an audited financial statement of the administration; and
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● an account of the total amount of funds distributed by the administration;
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▸ provides the circumstances under which the state shall offer for sale trust lands subject to
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a lease;
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▸ modifies the list of activities and penalties for illegal activities on trust lands; and
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▸ makes technical and conforming changes.
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Money Appropriated in this Bill:
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None
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Other Special Clauses:
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This bill provides a special effective date.
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Utah Code Sections Affected:
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AMENDS:
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53C-1-303, as last amended by Laws of Utah 2012, Chapter 224
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53C-2-301, as last amended by Laws of Utah 2020, Chapter 123
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53C-4-102, as last amended by Laws of Utah 2018, Chapter 13
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ENACTS:
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53C-1-307, Utah Code Annotated 1953
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REPEALS:
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53D-1-101, as last amended by Laws of Utah 2018, Chapter 448
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53D-2-101, as enacted by Laws of Utah 2018, Chapter 448
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Be it enacted by the Legislature of the state of Utah:
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Section 1. Section 53C-1-303 is amended to read:
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53C-1-303 . Responsibilities of director -- Budget review -- Legal counsel --
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Contract for services.
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(1) In carrying out the policies of the board of trustees and in establishing procedures and
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rules, the director shall:
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(a) take an oath of office before assuming any duties as the director;
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(b) adopt procedures and rules necessary for the proper administration of matters
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entrusted to the director by state law and board policy;
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(c) submit to the board for its review and concurrence on any rules necessary for the
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proper management of matters entrusted to the administration;
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(d) faithfully manage the administration under the policies established by the board;
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(e) submit to the board for public inspection an annual management budget and financial
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plan for operations of the administration and, after approval by the board, submit the
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budget to the governor;
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(f) direct and control the budget expenditures as finally authorized and appropriated;
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(g) establish job descriptions and employ, within the limitation of the budget, staff
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necessary to accomplish the purposes of the office subject to Section 53C-1-201;
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(h) establish, in accordance with generally accepted principles of fund accounting, a
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system to identify and account for the assets and vested interests of each beneficiary;
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(i) complete an approximate valuation of the administration's entire land portfolio every
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five years by estimating the value of no less than 10% of the administration's land
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portfolio each year;
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[(i)] (j) notify the primary beneficiary representative's designee regarding the trusts listed
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in Subsection 53C-1-103(7) on major items that the director knows may be useful to
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the primary beneficiary representative's designee in protecting beneficiary rights;
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[(j)] (k) permit the primary beneficiary representative's designee regarding a trust listed
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in Subsection 53C-1-103(7) reasonable access to inspect records, documents, and
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other trust property pertaining to that trust, provided that the primary beneficiary
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representative's designee shall maintain confidentiality if confidentiality is required
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of the director;
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[(k)] (l) maintain appropriate records of trust activities to enable auditors appointed by
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appropriate state agencies or the board to conduct periodic audits of trust activities;
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[(l)] (m) provide that all leases, contracts, and agreements be submitted to legal counsel
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for review of compliance with applicable law and fiduciary duties prior to execution
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and utilize the services of the attorney general as provided in Section 53C-1-305;
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[(m)] (n) keep the board, beneficiaries, governor, Legislature, and the public informed
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about the work of the director and administration by:
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(i) submitting an annual report described in Section 53C-1-307; and
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(ii) reporting to the board in a public meeting at least once during each calendar
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quarter; and
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[(n)] (o) respond in writing within a reasonable time to a request by the board or the
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primary beneficiary representative's designee regarding a trust listed in Subsection
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53C-1-103(7) for responses to questions on policies and practices affecting the
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management of the trust.
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(2) The administration shall be the named party in substitution of the Division of State
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Lands and Forestry or its predecessor agencies, with respect to all documents affecting
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trust lands from the effective date of this act.
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(3) The director may:
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(a) with the consent of the state risk manager and the board, manage lands or interests in
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lands held by any other public or private party pursuant to policies established by the
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board and may make rules to implement these board policies;
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(b) sue or be sued as the director of school and institutional trust lands;
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(c) contract with other public agencies for personnel management services;
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(d) contract with any public or private entity to make improvements to or upon trust
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lands and to carry out any of the responsibilities of the office, so long as the contract
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requires strict adherence to trust management principles, applicable law and
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regulation, and is subject to immediate suspension or termination for cause; and
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(e) with the approval of the board enter into joint ventures and other business
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arrangements consistent with the purposes of the trust.
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(4) Any application or bid required for the lease, permitting, or sale of lands in a
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competitive process or any request for review pursuant to Section 53C-1-304 shall be
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considered filed or made on the date received by the appropriate administrative office,
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whether transmitted by United States mail or in any other manner.
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Section 2. Section 53C-1-307 is enacted to read:
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53C-1-307 . Annual report.
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(1) At the end of each fiscal year, the director shall publish an annual report of the
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administration's activities for the preceding fiscal year.
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(2) The report described in Subsection (1) shall contain:
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(a) an account of the administration's activities for the preceding fiscal year;
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(b) financial statements of the administration that are audited by the state auditor or an
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independent auditor engaged by the state auditor in accordance with Subsection
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67-3-1(3);
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(c) by no later than June 30, 2029, and annually thereafter, the most recent approximate
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valuation of the administration's land portfolio as required in Subsection
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53C-1-303(1)(i); and
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(d) an account of the total amount of funds distributed by the administration to the
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School and Institutional Trust Fund Office in accordance with Subsection
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53C-3-102(1).
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Section 3. Section 53C-2-301 is amended to read:
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53C-2-301 . Illegal activities on trust lands -- Penalties.
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(1) A person is liable for the civil damages prescribed in Subsection (2) and is guilty of a
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criminal offense specified in Subsection (4) if the person intentionally, knowingly, or
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recklessly, and without written authorization from the director:
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[(a) removes, extracts, uses, consumes, or destroys a mineral resource, gravel, sand, soil,
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vegetation, water resource, or improvement on trust lands;]
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[(b) grazes livestock on trust lands;]
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[(c) uses, occupies, or constructs improvements or structures on trust lands;]
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[(d) uses or occupies trust lands for more than 30 days after the cancellation or
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expiration of written authorization;]
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[(e) knowingly and willfully uses trust lands for commercial gain;]
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[(f) appropriates, alters, injures, or destroys an improvement or historical, prehistorical,
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archaeological, or paleontological resource on trust lands;]
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[(g)] (a) [trespasses upon, ]uses, commits waste, dumps refuse on, or occupies trust land;
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[(h)] (b) interferes with the activities of an employee or agent of the administration on
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trust lands; or
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[(i)] (c) interferes with activities of a lessee or other person that have been authorized by
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the administration, whether or not the trust land has been withdrawn from occupancy
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or use pursuant to Subsection 53C-2-105(1)(b).
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(2) A person who commits an act described in Subsection (1) is liable for damages in the
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amount of whichever of the following is greatest:
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(a) three times the value at the point of sale of the mineral or other resource removed,
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destroyed, or extracted;
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(b) three times the amount of damage committed;
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(c) three times the cost to cure the damage;
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(d) three times the value of any losses suffered as a result of interference with authorized
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activities; or
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(e) three times the consideration which would have been charged by the director for use
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of the land during the period of trespass.
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(3) In addition to the damages described in Subsection (2), a person found guilty of a
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criminal act under Subsection (1) is subject to the penalties provided in Title 76, Chapter
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3, Punishments, as specified in Subsection (4).
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(4) A violation of this section is a:
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(a) second degree felony if the actor's conduct causes property injury or damage, or
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pecuniary loss equal to or in excess of $5,000 in value;
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(b) third degree felony if the actor's conduct causes property injury or damage, or
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pecuniary loss equal to or in excess of $1,500 but is less than $5,000 in value;
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(c) class A misdemeanor if the actor's conduct causes property injury or damage, or
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pecuniary loss equal to or in excess of $500 but is less than $1,500 in value;[ and]
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(d) class B misdemeanor if the actor's conduct causes property injury or damage, or
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pecuniary loss less than $500 in value[.] ; and
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(e) an infraction if the actor's conduct causes no property injury, damage, or pecuniary
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loss.
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(5) The director shall deposit money collected under this section in the fund in which like
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revenues from that land would be deposited.
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(6) The director may award a portion of any of the damages collected under this section in
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excess of actual damages to the general fund of the county in which the trespass
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occurred as a reward for county assistance in the apprehension and prosecution of the
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trespassing party.
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Section 4. 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
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interest of the applicable trust, the transaction shall be accomplished in an orderly
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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, contract, or other action designating the land to be
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subdivided that is approved by 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 which
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describes the land purchased and states the amount paid, the amount due, and the time
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when the principal and interest will become due.
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(7) Upon payment in full of principal and interest, payment in full of any amounts required
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to be paid for the partial release of property, or acceptance of appropriate conveyance
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documents in satisfaction of a land exchange, the governor, or the governor's designee,
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shall issue a patent to the purchaser, heir, assignee, successor in interest, or other grantee
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as determined by the director.
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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
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purchaser that if the default is not corrected within 30 days after issuance of the
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notice the director shall proceed with any remedy which the administration may
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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
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remedy under 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
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new and independent contract without regard to the forfeited agreement.
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(9) The director shall offer for sale any trust lands subject to a valid surface lease agreement
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or permit to the owner of the lease or permit if:
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(a) the director approves the sale of the trust lands;
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(b) the owner of the lease or permit agrees to pay fair market value, which may not
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exceed an amount equal to the highest credible offer received for the trust lands;
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(c) the owner of the lease or permit has held the lease or permit for at least 25
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consecutive years;
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(d) the trust lands offered for sale are not greater than 640 acres; and
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(e) the trust lands do not have an authorized point of public access at the time of sale.
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Section 5. Repealer.
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This bill repeals:
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Section 53D-1-101, Title.
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Section 53D-2-101, Title.
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Section 6. Effective Date.
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This bill takes effect on July 1, 2025.
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