R657-55-10. Wildlife Expo Permit -- Application Handling Fee Revenue

  (1)(a) All wildlife expo permit application handling fee revenue generated by the conservation organization under R657-55-5(2) will be deposited in a separate, federally insured account to prevent commingling with any other funds.

  (b) Interest earned on the portion of application handling fee revenue retained by the conservation organization for administrative expenses under Subsection (2) may be retained and used by the conservation organization.

  (c) Interest earned on the portion of application handling fee revenue committed to fund wildlife conservation projects under Subsection (3) shall be used by the conservation organization to fund approved wildlife conservation projects.

  (2) The conservation organization may retain up to $3.50 of each $5.00 application handling fee for administrative expenses, unless the conservation organization pledges a greater percentage of the application handling fee to wildlife conservation in:

  (a) its response to the request for proposal; or

  (b) the expo contract with the division.

  (3) The remaining balance of each $5.00 application handling fee and accrued interest, less standard banking fees assessed on the account where the funding is deposited, will be used by the conservation organization to fund projects advancing wildlife interests in the state, subject to the following:

  (a) project funding will not be committed to or expended on any project without first obtaining the division director's written approval;

  (b) cash donations to the Wildlife Habitat Account created under Section 23-19-43 or Division Species Enhancement Funds are authorized projects that do not require the division director's approval; and

  (c) application handling fee revenue dedicated to funding projects must be completely expended on approved projects or transferred to the division by August 1st, two years following the year in which the application handling fee revenue is collected.

  (4) Application handling fee revenue committed to division-approved projects will be transferred by the conservation organization to the division within 60 days of being invoiced by the division.

  (a) If the division-approved project to which funds are committed is completed under projected budget or canceled, funds committed to the project that are not used will be kept by the division and credited back to the conservation organization and made available for the group to use on other approved projects during the current or subsequent year.

  (5) All records and receipts for projects under Subsection (3) must be retained by the conservation organization for a period not less than five years, and shall be produced to the division for inspection upon request.

  (6) The conservation organization shall submit a report to the division and Wildlife Board each year by August 1st that accounts for and documents the following:

  (a) gross revenue generated from collecting $5 wildlife expo permit application handling fees;

  (b) total amount of application handling fee revenue retained for administrative expenses; and

  (c) total amount of application handling fee revenue set aside and dedicated to funding projects, including bank statements showing account balances.

  (7) A partner organization that individually receives application handling fee revenue from the expo permit drawing pursuant to a co-participant contract with the conservation organization, is subject to the provisions in Subsections (1) through (6).