11-59-306.  Limitations on board members.

(1)  As used in this section:

Terms Used In Utah Code 11-59-306

  • Authority: means the Point of the Mountain State Land Authority, created in Section 11-59-201. See Utah Code 11-59-102
  • Board: means the authority's board, created in Section 11-59-301. See Utah Code 11-59-102
  • Contract: A legal written agreement that becomes binding when signed.
  • Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
  • Equitable: Pertaining to civil suits in "equity" rather than in "law." In English legal history, the courts of "law" could order the payment of damages and could afford no other remedy. See damages. A separate court of "equity" could order someone to do something or to cease to do something. See, e.g., injunction. In American jurisprudence, the federal courts have both legal and equitable power, but the distinction is still an important one. For example, a trial by jury is normally available in "law" cases but not in "equity" cases. Source: U.S. Courts
  • Joint tenancy: A form of property ownership in which two or more parties hold an undivided interest in the same property that was conveyed under the same instrument at the same time. A joint tenant can sell his (her) interest but not dispose of it by will. Upon the death of a joint tenant, his (her) undivided interest is distributed among the surviving joint tenants.
  • Land: includes :Utah Code 68-3-12.5
  • Partnership: A voluntary contract between two or more persons to pool some or all of their assets into a business, with the agreement that there will be a proportional sharing of profits and losses.
  • Point of the mountain state land: means the approximately 700 acres of state-owned land in Draper, including land used for the operation of a state correctional facility until completion of the new correctional facility and state-owned land in the vicinity of the current state correctional facility. See Utah Code 11-59-102
  • Property: includes both real and personal property. See Utah Code 68-3-12.5
  • real property: includes :Utah Code 68-3-12.5
  • Real property: Land, and all immovable fixtures erected on, growing on, or affixed to the land.
  • State: when applied to the different parts of the United States, includes a state, district, or territory of the United States. See Utah Code 68-3-12.5
(a)  “Designated individual” means an individual:

(i) 

(A)  who is a member of the Senate or House of Representatives;

(B)  who has been appointed as a member of the board under Subsection 11-59-302(2)(a) or (b); and

(C)  whose legislative district includes some or all of the point of the mountain state land; or

(ii)  who is designated to serve as a board member under Subsection 11-59-302(2)(e) or (f).

(b)  “Direct financial benefit”:

(i)  means any form of financial benefit that accrues to an individual directly as a result of the development of the point of the mountain state land, including:

(A)  compensation, commission, or any other form of a payment or increase of money; and

(B)  an increase in the value of a business or property; and

(ii)  does not include a financial benefit that accrues to the public generally as a result of the development of the point of the mountain state land.

(c)  “Family member” means a parent, spouse, sibling, child, or grandchild.

(d)  “Interest in real property” means every type of real property interest, whether recorded or unrecorded, including:

(i)  a legal or equitable interest;

(ii)  an option on real property;

(iii)  an interest under a contract;

(iv)  fee simple ownership;

(v)  ownership as a tenant in common or in joint tenancy or another joint ownership arrangement;

(vi)  ownership through a partnership, limited liability company, or corporation that holds title to a real property interest in the name of the partnership, limited liability company, or corporation;

(vii)  leasehold interest; and

(viii)  any other real property interest that is capable of being owned.

(2)  An individual may not serve as a member of the board if:

(a)  subject to Subsection (5) for a designated individual, the individual owns an interest in real property, other than a personal residence in which the individual resides, on or within five miles of the point of the mountain state land;

(b)  a family member of the individual owns an interest in real property, other than a personal residence in which the family member resides, located on or within one-half mile of the point of the mountain state land;

(c)  the individual or a family member of the individual owns an interest in, is directly affiliated with, or is an employee or officer of a firm, company, or other entity that the individual reasonably believes is likely to participate in or receive compensation or other direct financial benefit from the development of the point of the mountain state land; or

(d)  the individual or a family member of the individual receives or is expected to receive a direct financial benefit.

(3) 

(a)  Before taking office as a board member, an individual shall submit to the authority a statement:

(i)  verifying that the individual’s service as a board member does not violate Subsection (2); and

(ii)  for a designated individual, identifying any interest in real property, other than a personal residence in which the individual resides, located on or within five miles of the point of the mountain state land.

(b)  If a designated individual takes action, during the individual’s service as a board member, to initiate, negotiate, or otherwise arrange for the acquisition of an interest in real property, other than a personal residence in which the individual intends to live, located on or within five miles of the point of the mountain state land, the designated individual shall submit a written statement to the board chair describing the action, the interest in real property that the designated individual intends to acquire, and the location of the real property.

(4)  Except for a board member who is a designated individual, a board member is disqualified from further service as a board member if the board member, at any time during the board member’s service on the board, takes any action to initiate, negotiate, or otherwise arrange for the acquisition of an interest in real property, other than a personal residence in which the member intends to reside, located on or within five miles of the point of the mountain state land.

(5)  A designated individual who submits a written statement under Subsection (3)(a)(ii) or (b) may not serve or continue to serve as a board member unless at least two-thirds of all other board members conclude that the designated individual’s service as a board member does not and will not create a material conflict of interest impairing the ability of the designated individual to exercise fair and impartial judgment as a board member and to act in the best interests of the authority.

(6) 

(a)  The board may not allow a firm, company, or other entity to participate in planning, managing, or implementing the development of the point of the mountain state land if a board member or a family member of a board member owns an interest in, is directly affiliated with, or is an employee or officer of the firm, company, or other entity.

(b)  Before allowing a firm, company, or other entity to participate in planning, managing, or implementing the development of the point of the mountain state land, the board may require the firm, company, or other entity to certify that no board member or family member of a board member owns an interest in, is directly affiliated with, or is an employee or officer of the firm, company, or other entity.

Amended by Chapter 237, 2022 General Session

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