Utah 2025 Regular Session

Utah House Bill HB0483 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	Enrolled Copy H.B. 483
	1	+	03-06 14:55 5th Sub. (Salmon) H.B. 483
	2	+	Derrin R. Owens proposes the following substitute bill:
2	3		1
3	4		School and Institutional Trust Lands Administration Modifications
4	5		2025 GENERAL SESSION
5	6		STATE OF UTAH
6	7		Chief Sponsor: R. Neil Walter
7	8		Senate Sponsor: Derrin R. Owens
8	9		2
9	10
10	11		3
11	12		LONG TITLE
12	13		4
13	14		General Description:
14	15		5
15	16		This bill addresses provisions related to school and institutional trust lands.
16	17		6
17	18		Highlighted Provisions:
18	19		7
19	20		This bill:
20	21		8
21	22		▸ requires the director of the School and Institutional Trust Lands Administration
22	23		9
23	24		(administration) to complete a valuation of the administration's land portfolio every five
24	25		10
25	26		years;
26	27		11
27	28		▸ requires the director to report annually to the Legislature:
28	29		12
29	30		● the activities of the administration;
30	31		13
31	32		● an approximate valuation of the administration's land portfolio;
32	33		14
33	34		● an audited financial statement of the administration; and
34	35		15
35	36		● an account of the total amount of funds distributed by the administration;
36	37		16
37	38		▸ modifies the list of activities and penalties for illegal activities on trust lands;
38	39		17
39	40		▸ provides the circumstances under which the state shall offer for sale trust lands subject to
40	41		18
41	42		a lease or permit; and
42	43		19
43	44		▸ makes technical and conforming changes.
44	45		20
45	46		Money Appropriated in this Bill:
46	47		21
47	48		None
48	49		22
49	50		Other Special Clauses:
50	51		23
51	52		This bill provides a special effective date.
52	53		24
53	54		Utah Code Sections Affected:
54	55		25
55	56		AMENDS:
56	57		26
57	58		53C-1-303, as last amended by Laws of Utah 2012, Chapter 224
58	59		27
59		-	53C-2-301, as last amended by Laws of Utah 2020, Chapter 123 ~~H.B. 483 Enrolled Copy~~
	60	+	53C-2-301, as last amended by Laws of Utah 2020, Chapter 123
60	61		28
61	62		53C-4-102, as last amended by Laws of Utah 2018, Chapter 13
	63	+	5th Sub. H.B. 483 5th Sub. (Salmon) H.B. 483 03-06 14:55
62	64		29
63	65		ENACTS:
64	66		30
65	67		53C-1-307, Utah Code Annotated 1953
66	68		31
67	69		REPEALS:
68	70		32
69	71		53D-1-101, as last amended by Laws of Utah 2018, Chapter 448
70	72		33
71	73		53D-2-101, as enacted by Laws of Utah 2018, Chapter 448
72	74		34
73	75
74	76		35
75	77		Be it enacted by the Legislature of the state of Utah:
76	78		36
77	79		Section 1. Section 53C-1-303 is amended to read:
78	80		37
79	81		53C-1-303 . Responsibilities of director -- Budget review -- Legal counsel --
80	82		38
81	83		Contract for services.
82	84		39
83	85		(1) In carrying out the policies of the board of trustees and in establishing procedures and
84	86		40
85	87		rules, the director shall:
86	88		41
87	89		(a) take an oath of office before assuming any duties as the director;
88	90		42
89	91		(b) adopt procedures and rules necessary for the proper administration of matters
90	92		43
91	93		entrusted to the director by state law and board policy;
92	94		44
93	95		(c) submit to the board for its review and concurrence on any rules necessary for the
94	96		45
95	97		proper management of matters entrusted to the administration;
96	98		46
97	99		(d) faithfully manage the administration under the policies established by the board;
98	100		47
99	101		(e) submit to the board for public inspection an annual management budget and financial
100	102		48
101	103		plan for operations of the administration and, after approval by the board, submit the
102	104		49
103	105		budget to the governor;
104	106		50
105	107		(f) direct and control the budget expenditures as finally authorized and appropriated;
106	108		51
107	109		(g) establish job descriptions and employ, within the limitation of the budget, staff
108	110		52
109	111		necessary to accomplish the purposes of the office subject to Section 53C-1-201;
110	112		53
111	113		(h) establish, in accordance with generally accepted principles of fund accounting, a
112	114		54
113	115		system to identify and account for the assets and vested interests of each beneficiary;
114	116		55
115	117		(i) complete an approximate valuation of the administration's entire land portfolio every
116	118		56
117	119		five years by estimating the value of no less than 10% of the administration's land
118	120		57
119	121		portfolio each year;
120	122		58
121	123		[(i)] (j) notify the primary beneficiary representative's designee regarding the trusts listed
122	124		59
123	125		in Subsection 53C-1-103(7) on major items that the director knows may be useful to
124	126		60
125	127		the primary beneficiary representative's designee in protecting beneficiary rights;
126	128		61
127	129		[(j)] (k) permit the primary beneficiary representative's designee regarding a trust listed
128		-	- 2 - Enrolled Copy H.B. 483
129	130		62
130	131		in Subsection 53C-1-103(7) reasonable access to inspect records, documents, and
	132	+	- 2 - 03-06 14:55 5th Sub. (Salmon) H.B. 483
131	133		63
132	134		other trust property pertaining to that trust, provided that the primary beneficiary
133	135		64
134	136		representative's designee shall maintain confidentiality if confidentiality is required
135	137		65
136	138		of the director;
137	139		66
138	140		[(k)] (l) maintain appropriate records of trust activities to enable auditors appointed by
139	141		67
140	142		appropriate state agencies or the board to conduct periodic audits of trust activities;
141	143		68
142	144		[(l)] (m) provide that all leases, contracts, and agreements be submitted to legal counsel
143	145		69
144	146		for review of compliance with applicable law and fiduciary duties prior to execution
145	147		70
146	148		and utilize the services of the attorney general as provided in Section 53C-1-305;
147	149		71
148	150		[(m)] (n) keep the board, beneficiaries, governor, Legislature, and the public informed
149	151		72
150	152		about the work of the director and administration by:
151	153		73
152	154		(i) submitting an annual report described in Section 53C-1-307; and
153	155		74
154	156		(ii) reporting to the board in a public meeting at least once during each calendar
155	157		75
156	158		quarter; and
157	159		76
158	160		[(n)] (o) respond in writing within a reasonable time to a request by the board or the
159	161		77
160	162		primary beneficiary representative's designee regarding a trust listed in Subsection
161	163		78
162	164		53C-1-103(7) for responses to questions on policies and practices affecting the
163	165		79
164	166		management of the trust.
165	167		80
166	168		(2) The administration shall be the named party in substitution of the Division of State
167	169		81
168	170		Lands and Forestry or its predecessor agencies, with respect to all documents affecting
169	171		82
170	172		trust lands from the effective date of this act.
171	173		83
172	174		(3) The director may:
173	175		84
174	176		(a) with the consent of the state risk manager and the board, manage lands or interests in
175	177		85
176	178		lands held by any other public or private party pursuant to policies established by the
177	179		86
178	180		board and may make rules to implement these board policies;
179	181		87
180	182		(b) sue or be sued as the director of school and institutional trust lands;
181	183		88
182	184		(c) contract with other public agencies for personnel management services;
183	185		89
184	186		(d) contract with any public or private entity to make improvements to or upon trust
185	187		90
186	188		lands and to carry out any of the responsibilities of the office, so long as the contract
187	189		91
188	190		requires strict adherence to trust management principles, applicable law and
189	191		92
190	192		regulation, and is subject to immediate suspension or termination for cause; and
191	193		93
192	194		(e) with the approval of the board enter into joint ventures and other business
193	195		94
194	196		arrangements consistent with the purposes of the trust.
195	197		95
196	198		(4) Any application or bid required for the lease, permitting, or sale of lands in a
197		-	- 3 - H.B. 483 Enrolled Copy
198	199		96
199	200		competitive process or any request for review pursuant to Section 53C-1-304 shall be
	201	+	- 3 - 5th Sub. (Salmon) H.B. 483 03-06 14:55
200	202		97
201	203		considered filed or made on the date received by the appropriate administrative office,
202	204		98
203	205		whether transmitted by United States mail or in any other manner.
204	206		99
205	207		Section 2. Section 53C-1-307 is enacted to read:
206	208		100
207	209		53C-1-307 . Annual report.
208	210		101
209	211		(1) At the end of each fiscal year, the director shall publish an annual report of the
210	212		102
211	213		administration's activities for the preceding fiscal year.
212	214		103
213	215		(2) The report described in Subsection (1) shall contain:
214	216		104
215	217		(a) an account of the administration's activities for the preceding fiscal year;
216	218		105
217	219		(b) financial statements of the administration that are audited by the state auditor or an
218	220		106
219	221		independent auditor engaged by the state auditor in accordance with Subsection
220	222		107
221	223		67-3-1(3);
222	224		108
223	225		(c) by no later than June 30, 2029, and annually thereafter, the most recent approximate
224	226		109
225	227		valuation of the administration's land portfolio as required in Subsection
226	228		110
227	229		53C-1-303(1)(i); and
228	230		111
229	231		(d) an account of the total amount of funds distributed by the administration to the
230	232		112
231	233		School and Institutional Trust Fund Office in accordance with Subsection
232	234		113
233	235		53C-3-102(1).
234	236		114
235	237		Section 3. Section 53C-2-301 is amended to read:
236	238		115
237	239		53C-2-301 . Illegal activities on trust lands -- Penalties.
238	240		116
239	241		(1) A person is liable for the civil damages prescribed in Subsection (2) and is guilty of a
240	242		117
241	243		criminal offense specified in Subsection (4) if the person intentionally, knowingly, or
242	244		118
243	245		recklessly, and without written authorization from the director:
244	246		119
245	247		[(a) removes, extracts, uses, consumes, or destroys a mineral resource, gravel, sand, soil,
246	248		120
247	249		vegetation, water resource, or improvement on trust lands;]
248	250		121
249	251		[(b) grazes livestock on trust lands;]
250	252		122
251	253		[(c) uses, occupies, or constructs improvements or structures on trust lands;]
252	254		123
253	255		[(d) uses or occupies trust lands for more than 30 days after the cancellation or
254	256		124
255	257		expiration of written authorization;]
256	258		125
257	259		[(e) knowingly and willfully uses trust lands for commercial gain;]
258	260		126
259	261		[(f) appropriates, alters, injures, or destroys an improvement or historical, prehistorical,
260	262		127
261	263		archaeological, or paleontological resource on trust lands;]
262	264		128
263	265		[(g)] (a) [trespasses upon, ]uses, commits waste, dumps refuse on, or occupies trust land;
264	266		129
265	267		[(h)] (b) interferes with the activities of an employee or agent of the administration on
266		-	- 4 - Enrolled Copy H.B. 483
267	268		130
268	269		trust lands; or
	270	+	- 4 - 03-06 14:55 5th Sub. (Salmon) H.B. 483
269	271		131
270	272		[(i)] (c) interferes with activities of a lessee or other person that have been authorized by
271	273		132
272	274		the administration, whether or not the trust land has been withdrawn from occupancy
273	275		133
274	276		or use pursuant to Subsection 53C-2-105(1)(b).
275	277		134
276	278		(2) A person who commits an act described in Subsection (1) is liable for damages in the
277	279		135
278	280		amount of whichever of the following is greatest:
279	281		136
280	282		(a) three times the value at the point of sale of the mineral or other resource removed,
281	283		137
282	284		destroyed, or extracted;
283	285		138
284	286		(b) three times the amount of damage committed;
285	287		139
286	288		(c) three times the cost to cure the damage;
287	289		140
288	290		(d) three times the value of any losses suffered as a result of interference with authorized
289	291		141
290	292		activities; or
291	293		142
292	294		(e) three times the consideration which would have been charged by the director for use
293	295		143
294	296		of the land during the period of trespass.
295	297		144
296	298		(3) In addition to the damages described in Subsection (2), a person found guilty of a
297	299		145
298	300		criminal act under Subsection (1) is subject to the penalties provided in Title 76, Chapter
299	301		146
300	302		3, Punishments, as specified in Subsection (4).
301	303		147
302	304		(4) A violation of this section is a:
303	305		148
304	306		(a) second degree felony if the actor's conduct causes property injury or damage, or
305	307		149
306	308		pecuniary loss equal to or in excess of $5,000 in value;
307	309		150
308	310		(b) third degree felony if the actor's conduct causes property injury or damage, or
309	311		151
310	312		pecuniary loss equal to or in excess of $1,500 but is less than $5,000 in value;
311	313		152
312	314		(c) class A misdemeanor if the actor's conduct causes property injury or damage, or
313	315		153
314	316		pecuniary loss equal to or in excess of $500 but is less than $1,500 in value;[ and]
315	317		154
316	318		(d) class B misdemeanor if the actor's conduct causes property injury or damage, or
317	319		155
318	320		pecuniary loss less than $500 in value[.] ; and
319	321		156
320	322		(e) an infraction if the actor's conduct causes no property injury, damage, or pecuniary
321	323		157
322	324		loss.
323	325		158
324	326		(5) The director shall deposit money collected under this section in the fund in which like
325	327		159
326	328		revenues from that land would be deposited.
327	329		160
328	330		(6) The director may award a portion of any of the damages collected under this section in
329	331		161
330	332		excess of actual damages to the general fund of the county in which the trespass
331	333		162
332	334		occurred as a reward for county assistance in the apprehension and prosecution of the
333	335		163
334	336		trespassing party.
335		-	- 5 - H.B. 483 Enrolled Copy
336	337		164
337	338		Section 4. Section 53C-4-102 is amended to read:
	339	+	- 5 - 5th Sub. (Salmon) H.B. 483 03-06 14:55
338	340		165
339	341		53C-4-102 . Sale of trust lands -- Fair market value -- Determination of sale --
340	342		166
341	343		Advertising proposed sales -- Sale procedures -- Defaults.
342	344		167
343	345		(1) Trust lands may not be sold for less than the fair market value.
344	346		168
345	347		(2)(a) The director shall determine whether disposal or retention of all or a portion of a
346	348		169
347	349		property interest in trust lands is in the best interest of the trust.
348	350		170
349	351		(b) When it is determined that the disposal of an interest in trust lands is in the best
350	352		171
351	353		interest of the applicable trust, the transaction shall be accomplished in an orderly
352	354		172
353	355		and timely manner.
354	356		173
355	357		(3) The director shall advertise any proposed sale, lease, or exchange of an interest in trust
356	358		174
357	359		lands in a reasonable manner consistent with the director's fiduciary responsibilities.
358	360		175
359	361		(4)(a) Any tract of trust land may be subdivided and sold, leased, or exchanged in
360	362		176
361	363		accordance with a plan, contract, or other action designating the land to be
362	364		177
363	365		subdivided that is approved by the director.
364	366		178
365	367		(b) The director may survey the tract and direct its subdivision.
366	368		179
367	369		(c) A plat of the survey shall be filed with the county recorder of the county in which the
368	370		180
369	371		land is located and with the administration.
370	372		181
371	373		(5) Sale conditions, including qualification of prospective purchasers, shall be in
372	374		182
373	375		accordance with accepted mortgage lending and real estate practices.
374	376		183
375	377		(6) Upon the sale of land, the director shall issue to the purchaser a certificate of sale which
376	378		184
377	379		describes the land purchased and states the amount paid, the amount due, and the time
378	380		185
379	381		when the principal and interest will become due.
380	382		186
381	383		(7) Upon payment in full of principal and interest, payment in full of any amounts required
382	384		187
383	385		to be paid for the partial release of property, or acceptance of appropriate conveyance
384	386		188
385	387		documents in satisfaction of a land exchange, the governor, or the governor's designee,
386	388		189
387	389		shall issue a patent to the purchaser, heir, assignee, successor in interest, or other grantee
388	390		190
389	391		as determined by the director.
390	392		191
391	393		(8)(a) If a purchaser of trust lands defaults in the payment of any installment of principal
392	394		192
393	395		or interest due under the terms of the contract of sale, the director shall notify the
394	396		193
395	397		purchaser that if the default is not corrected within 30 days after issuance of the
396	398		194
397	399		notice the director shall proceed with any remedy which the administration may
398	400		195
399	401		pursue under law or the contract of sale.
400	402		196
401	403		(b) The notice shall be sent by registered or certified mail to the purchaser at the latest
402	404		197
403	405		address as shown by the records of the administration.
404		-	- 6 - Enrolled Copy H.B. 483
405	406		198
406	407		(c) If the default is not corrected by compliance with the requirements of the notice of
	408	+	- 6 - 03-06 14:55 5th Sub. (Salmon) H.B. 483
407	409		199
408	410		default within the time provided by the notice, the director may pursue any available
409	411		200
410	412		remedy under the contract of sale, including forfeiture.
411	413		201
412	414		(d) If forfeited lands are sold again to the same purchaser, the sale may be made by a
413	415		202
414	416		new and independent contract without regard to the forfeited agreement.
415	417		203
416	418		(9) The director shall offer for sale any trust lands subject to a valid surface lease agreement
417	419		204
418	420		or permit to the owner of the lease or permit if:
419	421		205
420	422		(a) the director approves the sale of the trust lands;
421	423		206
422	424		(b) the owner of the lease or permit agrees to pay fair market value, which may not
423	425		207
424	426		exceed an amount equal to the highest credible offer received for the trust lands;
425	427		208
426	428		(c) the owner of the lease or permit has held the lease or permit for at least 25
427	429		209
428	430		consecutive years;
429	431		210
430	432		(d) the trust lands offered for sale are not greater than 640 acres; and
431	433		211
432	434		(e) the trust lands do not have an authorized point of public access at the time of sale.
433	435		212
434	436		Section 5. Repealer.
435	437		213
436	438		This bill repeals:
437	439		214
438	440		Section 53D-1-101, Title.
439	441		215
440	442		Section 53D-2-101, Title.
441	443		216
442	444		Section 6. Effective Date.
443	445		217
444	446		This bill takes effect on July 1, 2025.
445	447		- 7 -