LEGISLATIVE GENERAL COUNSEL H.B. 320
6 Approved for Filing: R.C. Williams 6
6 01-17-24 12:33 PM 6
1 SCHOOL AND INSTITUTIONAL TRUST LANDS
2 ADMINISTRATION AMENDMENTS
3 2024 GENERAL SESSION
4 STATE OF UTAH
5 Chief Sponsor: Phil Lyman
6 Senate Sponsor: ____________
7
8 LONG TITLE
9 General Description:
10 This bill modifies provisions related to the School and Institutional Trust Lands
11 Administration.
12 Highlighted Provisions:
13 This bill:
14 < defines terms;
15 < repeals rulemaking authority;
16 < prohibits state employees or contractors from receiving a financial bonus for
17 overseeing the sale of trust lands;
18 < creates requirements for the sale, exchange, lease or other disposition or conveyance
19 of trust lands;
20 < requires a governmental entity to notify legislators of proposed land exchanges less
21 than 500 acres that impact public lands or trust lands within the legislator's district;
22 and
23 < makes technical changes.
24 Money Appropriated in this Bill:
H.B. 320
25 None
26 Other Special Clauses:
27 None
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28 Utah Code Sections Affected:
29 AMENDS:
30 53C-4-101, as last amended by Laws of Utah 2011, Chapter 247
31 53C-4-102, as last amended by Laws of Utah 2018, Chapter 13
32 63L-2-201, as last amended by Laws of Utah 2019, Chapter 457
33
34 Be it enacted by the Legislature of the state of Utah:
35 Section 1. Section 53C-4-101 is amended to read:
36 53C-4-101. Criteria for sale, lease, exchange, or other disposition of trust lands.
37 (1) [(a) The] Before executing a sale, exchange, lease, or other disposition or
38 conveyance of trust lands, the director shall [establish criteria by rule for the sale, exchange,
39 lease, or other disposition or conveyance of trust lands, including procedures for determining
40 fair market value of those lands.]:
41 (a) determine the fair market value of the land by:
42 (i) an appraisal;
43 (ii) a market analysis, including evaluation of real estate trends, market demand,
44 opportunity costs of the sale, and the management costs of retention; and
45 (iii) other relevant information; and
46 (b) submit a report to the Natural Resources, Agriculture, and Environmental Quality
47 Appropriations Subcommittee stating how the proposed transfer:
48 (i) reflects the value intrinsic to the dispersed pattern of school and institutional trust
49 lands that are surrounded by federal lands;
50 (ii) reflects the Legislature's prioritization of energy and natural resource development;
51 and
52 (iii) conforms, to the maximum extent possible, with an affected county's resource
53 management plan.
54 [(b)] (2) [(i) Nothing in this title or in the administration's rules and procedures shall be
55 considered to require the director or the administration to execute]
56 (a) The director may not recommend any transaction for the disposition of trust lands
57 on terms that the director determines by a written finding to be unfavorable to the beneficiaries.
58 (b) The director shall send a copy of the written finding described in Subsection (2)(a)
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59 to each board member for review and comment.
60 [(ii) The director shall send a copy of the written finding to each board member for
61 review and comment.]
62 [(2)] (3) The governor, with the consent of the board, may participate in efforts and
63 initiatives related to school and institutional trust lands inholdings.
64 Section 2. Section 53C-4-102 is amended to read:
65 53C-4-102. Sale of trust lands -- Fair market value -- Incentives for sale --
66 Determination of sale -- Advertising proposed sales -- Sale procedures -- Defaults.
67 (1) Trust lands may not be sold for less than the fair market value.
68 (2) (a) The director shall determine whether disposal or retention of all or a portion of a
69 property interest in trust lands is in the best interest of the trust.
70 (b) When it is determined that the disposal of an interest in trust lands is in the best
71 interest of the applicable trust, the transaction shall be accomplished in an orderly and timely
72 manner.
73 (3) The director may not provide a financial incentive in addition to regular salary to
74 trust employees or contractors for services related to the sale or transfer of trust lands.
75 [(3)] (4) The director shall advertise any proposed sale, lease, or exchange of an
76 interest in trust lands in a reasonable manner consistent with the director's fiduciary
77 responsibilities.
78 [(4)] (5) (a) Any tract of trust land may be subdivided and sold, leased, or exchanged in
79 accordance with a plan, contract, or other action designating the land to be subdivided that is
80 approved by the director.
81 (b) The director may survey the tract and direct its subdivision.
82 (c) A plat of the survey shall be filed with the county recorder of the county in which
83 the land is located and with the administration.
84 [(5)] (6) Sale conditions, including qualification of prospective purchasers, shall be in
85 accordance with accepted mortgage lending and real estate practices.
86 [(6)] (7) Upon the sale of land, the director shall issue to the purchaser a certificate of
87 sale which describes the land purchased and states the amount paid, the amount due, and the
88 time when the principal and interest will become due.
89 [(7)] (8) Upon payment in full of principal and interest, payment in full of any amounts
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90 required to be paid for the partial release of property, or acceptance of appropriate conveyance
91 documents in satisfaction of a land exchange, the governor, or the governor's designee, shall
92 issue a patent to the purchaser, heir, assignee, successor in interest, or other grantee as
93 determined by the director.
94 [(8)] (9) (a) If a purchaser of trust lands defaults in the payment of any installment of
95 principal or interest due under the terms of the contract of sale, the director shall notify the
96 purchaser that if the default is not corrected within 30 days after issuance of the notice the
97 director shall proceed with any remedy which the administration may pursue under law or the
98 contract of sale.
99 (b) The notice shall be sent by registered or certified mail to the purchaser at the latest
100 address as shown by the records of the administration.
101 (c) If the default is not corrected by compliance with the requirements of the notice of
102 default within the time provided by the notice, the director may pursue any available remedy
103 under the contract of sale, including forfeiture.
104 (d) If forfeited lands are sold again to the same purchaser, the sale may be made by a
105 new and independent contract without regard to the forfeited agreement.
106 Section 3. Section 63L-2-201 is amended to read:
107 63L-2-201. Federal government acquisition of real property in the state.
108 (1) As used in this section:
109 (a) "Federal land" means:
110 (i) land owned by the federal government; or
111 (ii) mineral rights, water rights, or similar rights owned by the federal government.
112 [(a)] (b) "Governmental entity" means:
113 (i) an agency, as that term is defined in Subsection 63G-10-102(2);
114 (ii) the School and Institutional Trust Lands Administration created in Section
115 53C-1-201;
116 (iii) the School and Institutional Trust Lands Board of Trustees created in Section
117 53C-1-202; or
118 (iv) a county.
119 [(b)] (c) "Governmentally controlled land" means land owned or managed by a
120 governmental entity.
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121 (d) "Public lands county" means a county that has less private land ownership than the
122 state average, by percentage of land area, as determined by the Utah Geospatial Resource
123 Center.
124 (2) [(a)] Before legally binding the state by executing an agreement to sell or transfer to
125 the [United States] federal government 500 or more acres of governmentally controlled land or
126 school and institutional trust lands, a governmental entity shall submit the [agreement or]
127 proposal:
128 [(i)] (a) to the Legislature for [its] approval or rejection; or
129 [(ii)] (b) in the interim, to the Legislative Management Committee [for review of the
130 agreement or proposal.], which may:
131 (i) review the proposal described in this Subsection (2) for constitutional authority to
132 execute the sale or transfer of land to the federal government;
133 (ii) recommend that the governmental entity reject the proposal; or
134 (iii) recommend to the governor that the governor call a special session of the
135 Legislature to review and approve or reject the proposal.
136 [(b) The Legislative Management Committee may:]
137 [(i) recommend that the governmental entity execute the agreement or proposal;]
138 [(ii) recommend that the governmental entity reject the agreement or proposal; or]
139 [(iii) recommend to the governor that the governor call a special session of the
140 Legislature to review and approve or reject the agreement or proposal.]
141 (3) Before legally binding the state by executing an agreement to sell or transfer to the
142 [United States] federal government less than 500 acres of any governmentally controlled land
143 or school and institutional trust lands, a governmental entity shall notify:
144 (a) each legislator whose legislative district is located partially or wholly within the
145 geographic borders of the proposed land exchanged; and
146 (b) the Natural Resources, Agriculture, and Environment Interim Committee.
147 [(4) Notwithstanding Subsections (2) and (3), the Legislature approves all conveyances
148 of school trust lands to the United States government made for the purpose of completing the
149 Red Cliffs National Conservation Area in Washington County.]
150 [(5)] (4) A governmental entity may, in the governmental entity's discretion, give
151 written notice to the Legislative Management Committee of formal negotiations the
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152 governmental entity enters into with a federal agent or entity intended or likely to result in:
153 (a) the sale, exchange, or transfer of specific governmentally controlled land or school
154 and institutional trust lands to the federal government; or
155 (b) designation of specific governmentally controlled land or school and institutional
156 trust lands as a federal park, monument, or wilderness area.
157 (5) The School and Institutional Trust Lands Administration may not execute an
158 agreement to sell or transfer school and institutional trust lands in a public lands county to the
159 federal government unless the result of the negotiated transaction is a net decrease in the
160 percentage of federally owned land in the county.
161 Section 4. Effective date.
162 This bill takes effect on May 1, 2024.
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Statutes affected: Introduced: 53C-4-101, 53C-4-102, 63L-2-201