2006 Utah Code - 11-38-302 — Use of money in fund -- Criteria -- Administration.

     11-38-302.   Use of money in fund -- Criteria -- Administration.
     (1) Subject to Subsection (2), the commission may authorize the use of money in the fund, by grant or loan, to:
     (a) a local entity;
     (b) the Department of Natural Resources created under Section 63-34-3;
     (c) the Department of Agriculture and Food created under Section 4-2-1; or
     (d) a charitable organization that qualifies as being tax exempt under Section 501(c)(3) of the Internal Revenue Code.
     (2) (a) The money in the fund shall be used for preserving or restoring open land and agricultural land.
     (b) (i) Except as provided in Subsection (2)(b)(ii), money from the fund may not be used to purchase a fee interest in real property in order to preserve open land or agricultural land, but may be used to establish a conservation easement under Title 57, Chapter 18, Land Conservation Easement Act, or to fund similar methods to preserve open land or agricultural land.
     (ii) Notwithstanding Subsection (2)(b)(i), money from the fund may be used to purchase a fee interest in real property to preserve open land or agricultural land if:
     (A) the parcel to be purchased is no more than 20 acres in size; and
     (B) with respect to a parcel purchased in a county in which over 50% of the land area is publicly owned, real property roughly equivalent in size and located within that county is contemporaneously transferred to private ownership from the governmental entity that purchased the fee interest in real property.
     (iii) Eminent domain may not be used or threatened in connection with any purchase using money from the fund.
     (iv) A parcel of land larger than 20 acres in size may not be divided into separate parcels smaller than 20 acres each to meet the requirement of Subsection (2)(b)(ii).
     (c) A county, city, town, department, or organization under Subsection (1) may not receive money from the fund unless it provides matching funds equal to or greater than the amount of money received from the fund.
     (d) In loaning or granting money from the fund, the commission may impose conditions on the recipient as to how the money is to be spent.
     (e) The commission shall give priority to requests from the Department of Natural Resources for up to 20% of each annual increase in the amount of money in the fund if the money is used for the protection of wildlife or watershed.
     (f) (i) The commission may not make a grant or loan from the fund that exceeds $1,000,000 until after making a report to the Legislative Management Committee about the grant or loan.
     (ii) The Legislative Management Committee may make a recommendation to the commission concerning the intended grant or loan, but the recommendation is not binding on the commission.
     (3) (a) If money from the fund is distributed in the form of a loan, the commission may require interest to be paid and shall establish other terms of each loan, including a repayment schedule.
     (b) Each payment on a loan from the fund shall be returned to the fund and shall be applied first to interest and then to principal.
     (4) In determining the amount and type of financial assistance to provide an entity,

department, or organization under Subsection (1) and subject to Subsection (2)(f), the commission:
     (a) if the assistance is in the form of a loan, shall consider the borrower's ability to repay the loan; and
     (b) shall consider:
     (i) the nature and amount of open land and agricultural land proposed to be preserved or restored;
     (ii) the qualities of the open land and agricultural land proposed to be preserved or restored;
     (iii) the cost effectiveness of the project to preserve or restore open land or agricultural land;
     (iv) the funds available;
     (v) the number of actual and potential applications for financial assistance and the amount of money sought by those applications;
     (vi) the open land preservation plan of the local entity where the project is located and the priority placed on the project by that local entity;
     (vii) the effects on housing affordability and diversity; and
     (viii) whether the project protects against the loss of private property ownership.
     (5) If a county, city, town, department, or organization under Subsection (1) seeks money from the fund for a project whose purpose is to protect critical watershed, the commission shall require that the needs and quality of that project be verified by the state engineer.
     (6) Each interest in real property purchased with money from the fund shall be held and administered by the state or a local entity.

Amended by Chapter 138, 2005 General Session