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7 LONG TITLE
8 General Description:
9 This bill modifies provisions related to the State Finance Review Commission and
10 bonding requirements.
11 Highlighted Provisions:
12 This bill:
13 ▸ modifies definitions;
14 ▸ requires that any entity with bonding authority obtain the approval of the State
15 Finance Review Commission before entering into certain concessionaire
16 agreements; and
17 ▸ makes technical corrections.
18 Money Appropriated in this Bill:
19 None
20 Other Special Clauses:
21 None
22 Utah Code Sections Affected:
23 AMENDS:
24 63C-25-101, as enacted by Laws of Utah 2022, Chapter 207 and last amended by
25 Coordination Clause, Laws of Utah 2022, Chapter 207
26 63C-25-202, as enacted by Laws of Utah 2022, Chapter 207
27 63N-13-302, as last amended by Laws of Utah 2022, Chapter 240
28 63N-13-306, as last amended by Laws of Utah 2022, Chapters 207, 240
29
30 Be it enacted by the Legislature of the state of Utah:
31 Section 1. Section 63C-25-101 is amended to read:
32 63C-25-101. Definitions.
33 As used in this chapter:
34 (1) "Authority" means the same as that term is defined in Section 63B-1-303.
35 (2) "Bond" means the same as that term is defined in Section 63B-1-101.
36 (3) (a) "Bonding government entity" means the state or any entity that is authorized to
37 issue bonds under any provision of state law.
38 (b) "Bonding government entity" includes:
39 (i) a bonding political subdivision; and
40 (ii) a public infrastructure district that is authorized to issue bonds either directly, or
41 through the authority of a bonding political subdivision or other governmental entity.
42 [
43 (a) the Utah Inland Port Authority, created in Section 11-58-201;
44 (b) the Military Installation Development Authority, created in Section 63H-1-201;
45 (c) the Point of the Mountain State Land Authority, created in Section 11-59-201; or
46 (d) the Utah Lake Authority, created in Section 11-65-201.
47 [
48 Section 63C-25-201.
49 [
50 (a) operates, finances, maintains, or constructs a government facility under a contract
51 with a bonding political subdivision; and
52 (b) is not a bonding [
53 (7) "Concessionaire contract" means a contract:
54 (a) between a bonding government entity and a concessionaire for the operation,
55 finance, maintenance, or construction of a government facility;
56 (b) that authorizes the concessionaire to operate the government facility for a term of
57 five years or longer, including any extension of the contract; and
58 (c) in which all or some of the annual source of payment to the concessionaire comes
59 from state funds provided to the bonding government entity.
60 [
61 17D-4-102.
62 [
63 (a) costs more than $5,000,000 to construct; and
64 (b) has a useful life greater than five years.
65 [
66 Section 17B-2a-802.
67 [
68 responsibility for making a loan from a revolving loan fund.
69 [
70 [
71
72 government entity that sets forth for proposed bonds:
73 (a) the maximum:
74 (i) amount of bonds;
75 (ii) term; and
76 (iii) interest rate; and
77 (b) the expected security for the bonds.
78 [
79 under Title 17D, Chapter 4, Public Infrastructure District Act.
80 [
81 [
82
83 [
84
85 [
86
87 [
88 (a) the Water Resources Conservation and Development Fund, created in Section
89 73-10-24;
90 (b) the Water Resources Construction Fund, created in Section 73-10-8;
91 (c) the Water Resources Cities Water Loan Fund, created in Section 73-10-22;
92 (d) the Clean Fuel Conversion Funds, created in [
93
94 Emission Reduction Technology Program Act;
95 (e) the Water Development Security Fund and its subaccounts, created in Section
96 73-10c-5;
97 (f) the Agriculture Resource Development Fund, created in Section 4-18-106;
98 (g) the Utah Rural Rehabilitation Fund, created in Section 4-19-105;
99 (h) the Permanent Community Impact Fund, created in Section 35A-8-303;
100 (i) the Petroleum Storage Tank Fund, created in Section 19-6-409;
101 (j) the School Building Revolving Account, created in Section 53F-9-206;
102 (k) the State Infrastructure Bank Fund, created in Section 72-2-202;
103 (l) the Uintah Basin Revitalization Fund, created in Section 35A-8-1602;
104 (m) the Navajo Revitalization Fund, created in Section 35A-8-1704;
105 (n) the Energy Efficiency Fund, created in Section 11-45-201;
106 (o) the Brownfields Fund, created in Section 19-8-120;
107 (p) the following enterprise revolving loan funds created in Section 63A-3-402:
108 (i) the inland port infrastructure revolving loan fund;
109 (ii) the point of the mountain infrastructure revolving loan fund; or
110 (iii) the military development infrastructure revolving loan fund; and
111 (q) any other revolving loan fund created in statute where the borrower from the
112 revolving loan fund is a public non-profit entity or political subdivision, including a fund listed
113 in Section 63A-3-205, from which a loan entity is authorized to make a loan.
114 [
115 coming from the General Fund or Education Fund.
116 (b) "State funds" does not include:
117 (i) a revolving loan fund; or
118 (ii) revenues received by a bonding political subdivision from:
119 (A) a tax levied by the bonding political subdivision;
120 (B) a fee assessed by the bonding political subdivision; or
121 (C) operation of the bonding political subdivision's government facility.
122 Section 2. Section 63C-25-202 is amended to read:
123 63C-25-202. Powers and duties.
124 (1) The commission shall annually review a report provided in accordance with Section
125 63B-1-305 or 63B-1a-102.
126 (2) (a) A loan entity other than a loan entity described in Subsection (2)(b) shall no
127 later than January 1 of each year submit information on each revolving loan fund from which
128 the loan entity made a loan in the previous fiscal year, including information identifying new
129 and ongoing loan recipients, the terms of each loan, loan repayment, and any other information
130 regarding a revolving loan fund requested by the commission.
131 (b) If a loan entity is:
132 (i) the Utah Inland Port Authority, the loan entity shall submit the information in
133 accordance with Section 11-58-106 and any other information regarding a revolving loan fund
134 requested by the commission;
135 (ii) the Point of the Mountain State Land Authority, the loan entity shall submit the
136 information in accordance with Section 11-59-104 and any other information regarding a
137 revolving loan fund requested by the commission; or
138 (iii) the Military Installation Development Authority, the loan entity shall submit the
139 information in accordance with Section 63H-1-104 and any other information regarding a
140 revolving loan fund requested by the commission.
141 (c) The commission may annually review and provide feedback for the following:
142 (i) each loan entity for compliance with state law authorizing and regulating the
143 revolving loan fund, including, as applicable, Title 11, Chapter 14, Local Government Bonding
144 Act;
145 (ii) each loan entity's revolving loan fund policies and practices, including policies and
146 practices for approving and setting the terms of a loan; and
147 (iii) each borrower of funds from a revolving loan fund for accurate and timely
148 reporting by the borrower to the appropriate debt repository.
149 (3) (a) The commission shall review and may approve a bond before a large public
150 transit district may issue a bond.
151 (b) The commission may not approve issuance of a bond described in Subsection (3)(a)
152 unless the execution and terms of the bond comply with state law.
153 (c) If, after review, the commission approves a bond described in Subsection (3)(a), the
154 large public transit district:
155 (i) may not change before issuing the bond the terms of the bond that were reviewed by
156 the commission if the change is outside the approved parameters and intended purposes; and
157 (ii) is under no obligation to issue the bond.
158 (d) A member of the commission who approves a bond under Subsection (3)(a) or
159 reviews a parameters resolution under Subsection (4)(a) is not liable personally on the bond.
160 (e) The approval of a bond under Subsection (3)(a) or review under Subsection (4)(a)
161 of a parameters resolution by the commission:
162 (i) is not an obligation of the state; and
163 (ii) is not an act that:
164 (A) lends the state's credit; or
165 (B) constitutes indebtedness within the meaning of any constitutional or statutory debt
166 limitation.
167 (4) (a) The commission shall review and, at the commission's discretion, may make
168 recommendations regarding a parameters resolution before:
169 (i) a bonding political subdivision may issue a bond; or
170 (ii) a public infrastructure district may issue a bond, if the creating entity of the public
171 infrastructure district is a bonding political subdivision.
172 (b) The commission shall conduct the review under Subsection (4)(a) and forward any
173 recommendations to the bonding political subdivision or public infrastructure district no later
174 than 45 days after the day on which the commission receives the bonding political subdivision's
175 or public infrastructure district's parameters resolution.
176 (c) Notwithstanding Subsection (4)(a), if the commission fails to review a parameters
177 resolution or forward recommendations, if any, in the timeframe described in Subsection
178 (4)(b), the bonding political subdivision or public infrastructure district, respectively, may
179 proceed with the bond without review by the commission.
180 (d) After review by the commission under Subsection (4)(a), the bonding political
181 subdivision or public infrastructure district:
182 (i) shall consider recommendations by the commission; and
183 (ii) may proceed with the bond but is under no obligation to issue the bond.
184 (5) The commission shall provide training and other information on debt management,
185 lending and borrowing best practices, and compliance with state law to the authority, a bonding
186 political subdivision, a large public transit district, and a loan entity.
187 (6) (a) [
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190 government entity may enter into a concessionaire contract, the commission shall review and
191 approve the concessionaire contract.
192 (b) If, after review, the commission approves the [
193
194 entity:
195 (i) may not change the terms of the [
196 if the change is outside [
197 (A) any applicable approved parameters [
198 (B) the intended purposes of the concessionaire contract; and
199 (ii) is under no obligation to enter into the [
200 contract.
201 Section 3. Section 63N-13-302 is amended to read:
202 63N-13-302. Definitions.
203 As used in this part:
204 (1) "Bonding government entity" means the same as that term is defined in Section
205 63C-25-101.
206 (2) "Concessionaire contract" means the same as that term is defined in Section
207 63C-25-101.
208 (3) "Facilitator" means:
209 (a) the office, if the office chooses to perform itself the functions and responsibilities
210 described in Section 63N-13-304; or
211 (b) a person engaged by the office to perform the functions and responsibilities
212 described in Section 63N-13-304, if the office chooses to have those functions and
213 responsibilities performed by a person other than the office.
214 [
215 (a) the state or any department, division, agency, or other instrumentality of the state;
216 or
217 (b) a political subdivision of the state.
218 [
219 government entity and one or more private persons to fund and provide for a public need
220 through the development or operation of a public project in which the private person or persons
221 share with the government entity the responsibility or risk of developing, owning, maintaining,
222 financing, or operating the project.
223 Section 4. Section 63N-13-306 is amended to read:
224 63N-13-306. Limits on application of this part -- Concessionaire contract.
225 (1) Nothing in this part:
226 (a) requires a government entity to use the facilitator to explore the possibility of filling
227 a public need through a public-private partnership; or
228 (b) limits the ability of a government entity to directly:
229 (i) solicit a public-private partnership; or
230 (ii) respond to a private person exploring an investment opportunity in a public project
231 through a public-private partnership.
232 [
233 [
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235 [
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237 [
238 that is contemplating entering into a [
239 the bonding [
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241 entity first receives approval from the State Finance Review Commission in accordance with
242 Section 63C-25-202.
243 (3) A government entity anticipating the possibility of entering into a public-private
244 partnership or a concessionaire contract is encouraged to consult with and take advantage of the
245 expertise of the facilitator as the government entity determines:
246 (a) whether to enter into the public-private partnership or the concessionaire contract;
247 and
248 (b) the best way to structure the public-private partnership or the concessionaire
249 contract.