No. 28563 (Amendment): R850-5-200. Payments

DAR File No.: 28563
Filed: 03/20/2006, 08:00
Received by: NL

 

RULE ANALYSIS

Purpose of the rule or reason for the change:

This rule amendment will allow the director to exercise the authority granted under the currently proposed amendment to Section R850-4-300 in waiving fees when appropriate and in the best interests of the beneficiaries. (DAR NOTE: The proposed amendment to Section R850-4-300 is under DAR No. 28562 in this issue.)

 

Summary of the rule or change:

Currently, Subsection R850-5-200(9) requires that rental payments received after the due date, which don't include a late fee, be returned to the lessee. The amendment of this rule will allow the director to exercise his discretion in whether or not the late fee can be waived and the late rental payment accepted.

 

State statutory or constitutional authorization for this rule:

Subsection 53C-1-302(1)(a)(ii)

 

Anticipated cost or savings to:

the state budget:

It is anticipated that there could potentially be a cost to the agency budget due to the loss of fees in certain circumstances. However, because the fee waiver will only occur under circumstances where the waiver is in the best interests of the beneficiaries or there is a non-monetary benefit to the agency which compensates for the lost revenue, the amount of the loss will be very minimal.

 

local governments:

The only savings that might be realized by local government is if the local government were the applicant, lessee, or permittee in the instance where the director granted a fee waiver. Were that to be the case, the savings to local government would be less than $700, depending on the amount of the fee being waived.

 

other persons:

Other persons have the potential of saving the amount of the required fee if the director were to grant a waiver. The savings, based on the amount of the fee being waived, would be less than $700.

 

Compliance costs for affected persons:

There are no additional compliance costs for affected persons beyond what already exists in rule and statute.

 

Comments by the department head on the fiscal impact the rule may have on businesses:

In those instances where the imposition of a fee would be unfair to the business involved, and if waiving the fee would not violate the agency's fiduciary duty, an unnecessary fee could be waived. This rule amendment will serve as a benefit to business in every instance of its application. Kevin S. Carter, Director

 

The full text of this rule may be inspected, during regular business hours, at the Division of Administrative Rules, or at:

School and Institutional Trust Lands
Administration
675 E 500 S
SALT LAKE CITY UT 84102-2818

 

Direct questions regarding this rule to:

Kevin S. Carter at the above address, by phone at 801-538-5101, by FAX at 801-538-5118, or by Internet E-mail at [e-mail]

 

Interested persons may present their views on this rule by submitting written comments to the address above no later than 5:00 p.m. on:

05/15/2006

 

This rule may become effective on:

05/16/2006

 

Authorized by:

Kevin S. Carter, Director

 

 

RULE TEXT

R850. School and Institutional Trust Lands, Administration.

R850-5. Payments, Royalties, Audits, and Reinstatements.

R850-5-200. Payments.

Payments include rentals, royalties or any other financial obligation owed under the terms of a lease, permit or any other agreement.

1. As a matter of convenience, the agency allows parties other than the obligee to remit payments on the obligee's behalf; however, this practice in no way relieves the obligee of any statutory or contractual obligations concerning the proper and timely payments or the proper and timely filing of reports. For practical reasons, the agency often makes direct requests for reports and other records from parties other than the obligees. Payors should be aware that their actions subject leases to cancellation or subject delinquent royalties to interest charges. It is, therefore, in the best interest of all parties to cooperate in responsibly discharging their obligations to each other and to the Trust Lands Administration.

2. The obligee bears final responsibility for payments. In order to meet payment obligations of a lease, permit, or other financial contract with the agency, payments must be received as defined in subsection 4 of this rule by the appropriate due dates and must be accompanied by the appropriate report.

3. When a change of payor(s) on a property is to occur, the most recent payor of record shall notify the agency by letter prior to the change. This shall not be construed, however, to relieve the obligee of the ultimate responsibility.

4. Payments will be considered received if it is either delivered to the agency, or if the postmark stamped on the envelope or other appropriate wrapper containing it, is dated on or before the due date. If the post office cancellation mark is illegible, erroneous, or omitted, the payment will be considered timely if the sender can establish by competent evidence that the payment was deposited in the United States mail on or before the date for filing or paying. If the due date or cancellation date falls upon a Saturday, Sunday, or legal holiday, the payment shall be considered timely if received as defined herein by the next business day.

5. Payments will be enforced even though an agency order is incomplete or because of other irregularities.

6. A 6% penalty and $15 return check charge will be assessed on all checks returned by the bank. The check must be replaced by cash, certified funds, or immediately available funds. The Director may require future payments with certified funds when notified in writing.

7. Any financial obligation not received by its contractual due date will initiate a written cancellation notice by certified mail, return receipt requested. The cancellation date for any lease/permit or other contractual agreement unless otherwise specified in this rule, is defined as 30 days after the postmark date stamped on Post Office Form 3800, Receipt for Certified Mail. In the event payment is not received by the agency on or before the cancellation date, the lease, permit or other contractual agreement will be subject to cancellation, forfeiture or termination without further notice.

A default in the payment of any installment of principal or interest due under the terms of any land purchase agreement not received by the agency more than 30 days after the due date shall initiate a certified billing, return receipt requested. If all sums then due and payable are not received within 30 days after the mailing of the certified notice on Post Office Form 3800, the agency may elect any of the remedies as outlined in R850-80-700(8). If the cancellation date falls on a weekend or holiday, payment will be accepted the next business day until 5 p.m.

8. A late penalty of 6% or $10, whichever is greater, shall be charged after failure to pay any financial obligation, excluding royalties as provided in R850-5-300(2), within the time limit under which such payment is due.

9. [Rental]Subject to R850-4-300, rental payments received after the due date which do not include a late fee will be returned to the lessee by certified mail, return receipt requested. Payment will only be accepted for the full amount due.

 

KEY: administrative procedures

Date of Enactment or Last Substantive Amendment: [August 1, 1995]May 16, 2006

Notice of Continuation: June 27, 2002

Authorizing, and Implemented or Interpreted Law: 53C-1-302(1)(a)(ii)