House of Representatives State of Utah


         W030 STATE CAPITOL COMPLEX . P.O. BOX 145030
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        SALT LAKE CITY, UTAH 84114-5030 . (801) 538-1029
NOTICE OF BILL

RETURNED TO RULES COMMITTEE

February 21, 2007

Mr. Speaker:

    The Government Operations Committee has returned H.B. 251, AUDITING OF LEASES RELATED TO REVENUE BONDS, by Representative N. Hansen, to the Rules Committee without recommendation with the following amendments:

4.    Page 1, Line 24 :    

             24      protect its financial interests;

 

    . exempts international airports from the requirement for an independent assessment;  


4.    Page 2, Lines 32 through 33 :    

             32      in accordance with accounting principles adopted by the
{   Federal   }        Financial       Accounting

             33      Standards Board; and

4.    Page 2, Line 51 through Page 3, Line 65 :    

             51          (1)
  (a)       Beginning July 1, 2007,        and except as provided under Subsection (1)(b),       any contract or agreement between a local political

             52      subdivision and a private entity shall include provisions that allow the local political
             53      subdivision to:
             54          
{   (a)   }        (i)       independently assess, as provided under Subsection (2), the ability of the private

             55      entity to meet its financial obligations to the local political subdivision if the contract or
             56      agreement involves lease payments, the revenue from which is pledged for the payment of

             57      principal or interest on a revenue bond; and
             58          
{   (b)   }        (ii)       rescind or amend the contract or agreement if:

             59          
{   (i)   }        (A)       the independent assessment performed under Subsection (1)(a)        (i)       produces a finding

             60      that the private entity is unable to meet its lease payments to the local political subdivision; and
             61          
{   (ii)   }        (B)       based on the assessment performed under Subsection (1)(a)        (i)       , the local political

             62      subdivision determines that the rescission or amendment is necessary to protect the financial
             63      interests of the local political subdivision.
 

    (b)    A contract or agreement that generates revenue that is payable in relation to an international airport, is exempt from the requirements of this section.  

             64          (2) The local political subdivision shall ensure the independent assessment under
             65      Subsection (1)(a)
  (i)       is conducted:


4.    Page 3, Lines 71 through 72 :    

             71      with generally accepted accounting principles adopted by the
{   Federal   }        Financial       Accounting Standards

             72      Board.

    Respectfully,

    Glenn A. Donnelson
    Committee Chair

Voting: --
14 HB0251.HC1.wpd 2/21/07 7:55 am benchristensen/BNC ENW/BNC

Bill Number
Action Class
Action Code

*HB0251*
*H*
*HCRRUL*

 HB0251
H
HCRRUL