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Senate approves bill to establish Navajo trust fund administrator; bill carries three-year sunset
Summary
The Utah Senate approved the second substitute to SB 91 to set up a trust-administrator structure for royalties benefiting Southern Utah Navajos, citing audit concerns and a decline in the fund. The measure authorizes a trustee committee, a request for proposals for an administrator, and estimates annual administration costs of $220,000–$300,000.
Senate Bill 91, a bill to establish a trust administrator for the Southern Utah Navajo trust funds, passed the Utah Senate on Feb. 7, 1992, after extended debate on oversight, cost and legal exposure.
Senator Dixie Levitt, sponsor of the second substitute, said the state had been trustee since federal action in 1933 and that the fund — which historically received about $62,000,000 in royalties — is now down to approximately $9,200,000. Levitt told the Senate the bill establishes a trustee committee (including the state treasurer, a finance office designee and a governor’s designee), directs a request for proposals to contract an outside trust administrator (or hire in-house if necessary), and includes a three‑year sunset to allow evaluation.
“The audit shows we need professional administration to protect both the Navajo people and the state,” Levitt said, adding the committee could hire an in‑house administrator if contracting proves unworkable.
The bill’s fiscal estimate, presented to the Senate, puts annual administrative costs in the range of $220,000 to $300,000; the sponsor said that estimate includes legal fees and initial support staff, and noted that the fund’s current earnings — at the time discussed — would produce only modest annual returns and that administrative costs could consume a substantial portion of earnings if not managed carefully.
Several senators pressed for limits and savings. Senator Black questioned the fiscal note and warned against drawing down the trust’s principle; others noted that oil‑field royalties and future earnings could decline as reserves are depleted. Supporters said the state’s fiduciary role required prompt action to avoid legal liability and further losses.
The measure directs the trustee committee to seek proposals, and if no viable contract is found, authorizes creating an in‑house trust administrator within the Department of Administrative Services. The bill also reconfigures the advisory Dene Committee to be entirely Navajo membership and narrows its regular meeting schedule, while preserving advisory input.
After questions and amendments on cross‑references and revenue terminology, Senator Levitt moved that the second substitute as amended be enacted by call; the clerk announced the result as 25 ayes, 1 nay and 3 absent. The bill passed and was placed on the third‑reading calendar.
If enacted as sent to the governor, the law would take initial steps to centralize administration of the Southern Utah Navajo trust funds, fund the office primarily from trust revenues unless the Legislature appropriates general funds, and include a three‑year sunset for reassessment of the approach.
