H.B. 239

1

SECURITIES ISSUANCE BY ELECTRICAL CORPORATIONS
2 1997 GENERAL SESSION
3 STATE OF UTAH
4 Sponsor: J. Brent Haymond
5 AN ACT RELATING TO PUBLIC UTILITIES; ALLOWING THE PUBLIC SERVICE
6 COMMISSION TO PROVIDE EXEMPTIONS TO THE REQUIREMENT OF PRIOR
7 COMMISSION APPROVAL FOR THE ISSUANCE OF SECURITIES BY ELECTRICAL
8 CORPORATIONS.
9 This act affects sections of Utah Code Annotated 1953 as follows:
10 AMENDS:
11 54-4-31, as last amended by Chapter 161, Laws of Utah 1987
12 Be it enacted by the Legislature of the state of Utah:
13 Section 1. Section 54-4-31 is amended to read:
14 54-4-31. Electrical corporation to issue securities only on consent of commission --
15 Exceptions -- Validity of securities.
16 (1) [Without] Except as provided by Subsection (2) or (4), without prior written approval
17 of the [Public Service] commission, no electrical corporation may:
18 (a) issue any security[, nor may any electrical corporation]; or
19 (b) assume any obligation or liability as guarantor, endorser, surety, or otherwise, for any
20 security of another person relating to the financing of pollution control revenue bonds.
21 (2) (a) Authorization of the commission is not required for the issuance or renewal of, or
22 assumption of liability on, a note or draft [maturing] if:
23 (i) the maturity date of the note or draft is not more than one year after the date of the
24 issue, renewal, or assumption of liability[,]; and [aggregating (]
25 (ii) the aggregate value of the note or draft together with all other [then] outstanding notes
26 and drafts of a maturity of one year or less on which the public utility is primarily or secondarily
27 liable[)] is not more than 5% of the par value of the other outstanding securities of the public

1 utility [then outstanding].
2 (b) In the case of securities having no par value, the par value for the purpose of this
3 section is the fair market value as of the date of issue.
4 (3) Any securities issued pursuant to an order entered by authority of this section shall be
5 valid notwithstanding the outcome of any further proceedings, unless:
6 (a) application for stay is filed with a court of competent jurisdiction within five days
7 following the issuance of the order; and
8 (b) a stay is entered by the commission or a court of competent jurisdiction within ten days
9 after the order is issued.
10 (4) The commission may h [by order or rule ] BY RULE, OR BY ORDER PURSUANT TO
1 0a STANDARDS PROMULGATED BY RULE, h exempt any security, class of securities,
11 electrical corporation, or class of electrical corporation from the requirement of Subsection (1),
12 subject to any terms and conditions prescribed in the order or rule, if it finds that the application
13 of Subsection (1) to the security, class of securities, electrical corporation, or class of electrical
14 corporation is not required by the public interest.




Legislative Review Note
as of 1-15-97 4:05 PM

A limited legal review of this bill raises no obvious constitutional or statutory concerns.

Office of Legislative Research and General Counsel

lilac-February 13, 1997

- 2 -