No. 40291 (Amendment): Section R850-90-200. Exchange Criteria

(Amendment)

DAR File No.: 40291
Filed: 03/31/2016 08:09:23 AM

RULE ANALYSIS

Purpose of the rule or reason for the change:

This rule amendment will allow the agency greater discretion in accepting cash amounts greater than the current limit of 25% of the asset value when negotiating exchanges.

Summary of the rule or change:

The current rule limits the amount of cash that the agency may accept in an exchange to 25% of the value of the transaction. This rule amendment will allow the director to make a determination as to whether or not it is in the best interest of the trust beneficiary to accept cash in an amount that exceeds the 25% limit when negotiating an exchange.

State statutory or constitutional authorization for this rule:

• Subsection 53C-4-101(1)
• Subsection 53C-1-302(1)(a)(ii)

Anticipated cost or savings to:

the state budget:

It is not anticipated that there will be either a cost or savings to the state budget as a result of this rule amendment because the combination of cash and other assets received by the agency in an exchange must still equal the value of the asset being exchanged.

local governments:

It is not anticipated that there will be either a cost or savings to local government as a result of this rule amendment as the combination of cash and other assets offered by the local government in an exchange must still equal the total value of the asset being traded.

small businesses:

It is not anticipated that there will be either a cost or savings to small businesses as a result of this rule amendment. The combination of cash and other assets offered by a small business in an exchange must still equal the total value of the asset being exchanged.

persons other than small businesses, businesses, or local governmental entities:

It is not anticipated that there will be either a cost or savings to persons other than small businesses, businesses, or local government entities as a result of this rule amendment. The combination of cash and other assets offered by a "person" in an exchange must still equal the total value of the asset being traded.

Compliance costs for affected persons:

There should not be any additional compliance costs for affected persons beyond those that already exist. The amendment to this rule only removes the limitation of the amount of cash that the agency is able to accept towards the full value of the assets being offered in the exchange.

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

This rule amendment will not have any impact on businesses as the total asset value of the exchange remains the same. Only the ratio of the amount of cash the agency may accept as part of the total asset value has increased.

David Ure, 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
AdministrationRoom 500
675 E 500 S
SALT LAKE CITY, UT 84102-2818

Direct questions regarding this rule to:

• Kim Christy at the above address, by phone at 801-538-5183, by FAX at 801-355-0922, 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:

05/16/2016

This rule may become effective on:

05/23/2016

Authorized by:

David Ure, Director

RULE TEXT

R850. School and Institutional Trust Lands, Administration.

R850-90. Land Exchanges.

R850-90-200. Exchange Criteria.

[1. ]The agency may exchange trust land for land and other assets which the director finds suitable and[or other assets] of equal or greater value and utility.[The criteria by which an exchange proposal will be considered follows.

(a) Asset is herein defined as personal property, including cash, which has a readily determined market value.

(b) The percentage of cash which may be included in an exchange transaction shall not exceed 25% of the value.]

[2]1. Exchanges must clearly be in the best interest of the appropriate trust as documented in [the records of the agency]a director's finding. The [record]finding shall address:

(a) the appraised value of affected lands [or]and other assets and the amount of cash involved;

(b) the [degree to which there is reasonable assurance]likelihood that the acquired land [or other asset may]and other assets will provide income in excess of that being generated from existing trust land;

(c) [the likelihood of greater revenue flowing to the appropriate trust from sale of fee or leasehold estates in]an analysis of the revenue potential of the existing trust land; and

(d) potential management and administrative costs and opportunities.

[3]2. The [record]finding shall verify that the exchange will not result in an unmanageable and/or uneconomical parcel of trust land, nor eliminate access to a remnant holding, without appropriate remuneration or compensation.

3. The percentage of cash which may be included in an exchange shall not exceed 25% of the value of the trust land involved unless the director has determined that a higher percentage is in the best interests of the trust beneficiary.

 

KEY: land exchange, administrative procedures

Date of Enactment or Last Substantive Amendment: [November 1, 2002]May 23, 2016

Notice of Continuation: January 12, 2012

Authorizing, and Implemented or Interpreted Law: 53C-1-302(1)(a)(ii); 53C-2-201(1)(a); 53C-4-101(1); 53C-4-102

 

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