H.B. 56 Enrolled

PRIVATE ACTIVITY BONDING
1997 GENERAL SESSION
STATE OF UTAH
Sponsor: Ralph Becker
AN ACT RELATING TO COMMUNITY AND ECONOMIC DEVELOPMENT; MODIFYING
ALLOCATION PROCESS OF BONDING VOLUME CAP; AND MAKING
TECHNICAL CORRECTIONS.
This act affects sections of Utah Code Annotated 1953 as follows:
AMENDS:
9-4-504, as enacted by Chapter 287, Laws of Utah 1992
9-4-505, as enacted by Chapter 287, Laws of Utah 1992
9-4-506, as last amended by Chapter 316, Laws of Utah 1996
Be it enacted by the Legislature of the state of Utah:
Section 1. Section 9-4-504 is amended to read:
9-4-504. Powers, functions, and duties of board of review.
The board of review shall:
(1) make, subject to the limitations of the code, allocations of volume cap to issuing
authorities;
(2) determine the amount of volume cap to be allocated with respect to approved
applications;
(3) maintain a record of all applications filed by issuing authorities under Section 9-4-505
and all certificates of allocation issued under Section [9-4-506] 9-4-507;
(4) maintain a record of all bonds issued by issuing authorities during each year;
(5) determine the amount of volume cap to be treated as a carryforward under Section
146(f) of the code and allocate this carryforward to one or more qualified carryforward purposes;
(6) make available upon reasonable request a certified copy of all or any part of the records
maintained by the board of review under this part or a summary of them including information
relating to the volume cap for each year and any amounts available for allocation under this part;
(7) promulgate rules for the allocation of volume cap under this part; and

(8) charge reasonable fees for the performance of duties prescribed by this part, including
application, filing, and processing fees.
Section 2. Section 9-4-505 is amended to read:
9-4-505. Allocation of volume cap.
(1) The volume cap for each year shall be distributed by the board of review to the various
allotment accounts as set forth in Section 9-4-506.
(2) [In order to] To obtain an allocation of the volume cap, issuing authorities shall submit
to the board of review an application containing information required by the procedures and
processes [as] of the board of review.
(3) The board of review shall establish criteria for making allocations of volume cap that are
consistent with the purposes of the code and this part. In making an allocation of volume cap the
board of review shall consider the following:
(a) the principal amount of the bonds proposed to be issued;
(b) the nature and the location of the project or the type of program;
(c) the likelihood that the bonds will be sold and the timeframe of bond issuance;
(d) whether the project or program could obtain adequate financing without an allocation
of volume cap;
[(d)] (e) the degree to which an allocation of volume cap is required for the project or
program to proceed or continue;
[(e)] (f) the social, health, economic, and educational effects of the project or program on
the local community and state as a whole; [and]
[(f)] (g) the anticipated number of jobs, both temporary and permanent, created or retained
within the local community and the state as a whole[.]; and
(h) if the project is a residential rental project, the degree to which the residential rental
project targets lower income populations.
(4) The board of review shall evidence an allocation of volume cap by issuing a certificate
in accordance with Section 9-4-507.
Section 3. Section 9-4-506 is amended to read:

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9-4-506. Allotment accounts.
(1) There are created the following allotment accounts:
(a) the Single Family Housing Account, for which eligible issuing authorities are those
authorized under the code and state statute to issue qualified mortgage bonds under Section 143 of
the code;
(b) the Student Loan Account, for which eligible issuing authorities are those authorized
under the code and state statute to issue qualified student loan bonds under Section 144(b) of the
code;
(c) the Small Issue Bond Account, for which eligible issuing authorities are those authorized
under the code and state statute to issue qualified small issue bonds under Section 144(a) of the code
or qualified exempt facility bonds for qualified residential rental projects under Section 142(d) of
the code;
(d) the Exempt Facilities Account, for which eligible issuing authorities are those authorized
under the code and state statute to issue bonds requiring an allocation of volume cap other than for
purposes described in Subsections (1)(a), (b), or (c);
(e) the Pool Account, for which eligible issuing authorities are those authorized under the
code and state statute to issue bonds requiring an allocation of volume cap; and
(f) the Carryforward Account, for which eligible issuing authorities are those with projects
or programs qualifying under Section 146(f) of the code.
(2) (a) The volume cap shall be distributed to the various allotment accounts on January 1
of each year on the following basis:
(i) 42% to the Single Family Housing Account;
(ii) 33% to the Student Loan Account;
(iii) 12% to the Exempt Facilities Account; and
(iv) 13% to the Small Issue Bond Account.
(b) From July 1 to September 30 of each year, the board of review may transfer any
unallocated volume cap from the Exempt Facilities Account or the Small Issue Bond Account to the
Pool Account.

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(c) The board of review, upon written notification by the issuing authorities eligible for
volume cap allocation from the Single Family Housing Account or the Student Loan Account that
all or a portion of volume cap distributed into that allotment account will not be [utilized] used, may
transfer [such] the unused volume cap between the Single Family Housing Account and the Student
Loan Account.
(d) From October 1 to the third Friday of December of each year, all unallocated volume cap
shall be transferred into the Pool Account.
(e) Unallocated volume cap or allocated volume cap for which bonds have not been issued
prior to the third Saturday of December shall be transferred on that date into the Carryforward
Account.
(f) If the authority to issue bonds designated in any allotment account is rescinded by
amendment to the code, the board of review may transfer any unallocated volume cap from such
allotment account to any other allotment account.

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