DAR File No. 32487

Natural Resources, Forestry, Fire and State Lands

R652-5-200

Payments

NOTICE OF PROPOSED RULE

DAR File No.: 32487
Filed: 04/01/2009, 08:27
Received by: NL

RULE ANALYSIS

Purpose of the rule or reason for the change:

The existing rule conflicts with the governor's executive order which initiates a four-day work week. The existing rule also conflicts with the legislative approval for a fee change for returned checks.

Summary of the rule or change:

The rule amendment clarifies that payment is considered timely when the due date falls on a regular non-workday or a legal holiday and the payment is received on the next business day. The proposed rule amendment also changes wording so that a returned check charge is consistent with the approved fee schedule.

State statutory or constitutional authorization for this rule:

Subsection 65A-1-4(2)

Anticipated cost or savings to:

the state budget:

This rule amendment has no anticipated impact to the state budget. The Division has not received any payments on any Friday that affected a obligee's timeliness to date. There have also been no returned checks charges for three years. If there is an impact to the state budget, it will be minimal.

local governments:

There should be no impact to local government. Those entities that make payments to the Division, still will do so in the same fashion as prior to the rule amendment.

small businesses and persons other than businesses:

There should be no impact to small businesses. Those entities that make payments to the Division, still will do so in the same fashion as prior to the rule amendment.

Compliance costs for affected persons:

The compliance costs for affected persons will remain unchanged. The payments made to the Division will remain the same, the returned check charge will still be linked to Division policy as approved by the legislature.

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

The rule change merely affects the definition of timeliness and does not affect small businesses and the way they make payments to the Division. Michael R. Styler, Executive Director

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

Natural Resources
Forestry, Fire and State Lands
1594 W NORTH TEMPLE
SUITE 3520
SALT LAKE CITY UT 84116-3154

Direct questions regarding this rule to:

Jennifer Wiglama at the above address, by phone at 801-538-5495, by FAX at 801-533-4111, or by Internet E-mail at jenniferwiglama@utah.gov

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:

05/15/2009

This rule may become effective on:

05/22/2009

Authorized by:

Richard J. Buehler, Director

R652. Natural Resources; Forestry, Fire and State Lands.

R652-5. Payments, Royalties, Audits, and Reinstatements.

R652-5-200. 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 division allows parties other than the obligee to remit payments to the state 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 division 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 state.

2. The obligee bears final responsibility for payments. In order to meet payment obligations of a lease, permit, or other financial contract with the division, 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 division 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 division, 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,]regular non-workday 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 a division order is incomplete or because of other irregularities.

6. A return check fee, in accordance with the Division fee schedule will be charged on all checks returned by the bank.[Fifteen dollars will be charged on all checks returned by the bank.]

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 division 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 division 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 90 days after the mailing of the certified notice on Post Office Form 3800, the division may elect any of the remedies as outlined in R652-80-600(5). 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 R652-5-300(2), within the time limit under which such payment is due.

9. 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. A check will only be accepted for the full amount due.

 

KEY: administrative procedures

Date of Enactment or Last Substantive Amendment: [1994]2009

Notice of Continuation: April 2, 2007

Authorizing, and Implemented or Interpreted Law: 65A-1-4(2)