Download Zipped Enrolled WP 9 SB0149.ZIP
[Introduced][Status][Bill Documents][Fiscal Note][Bills Directory]
S.B. 149 Enrolled
This act modifies the State Financing Consolidation Act provisions by defining additional
terms, clarifying the scope of the act, modifying certain responsibilities and processes
established by the act, and making technical corrections.
This act affects sections of Utah Code Annotated 1953 as follows:
AMENDS:
63-65-2, as last amended by Chapter 270, Laws of Utah 1998
63-65-3, as last amended by Chapter 135, Laws of Utah 1997
63-65-4, as last amended by Chapter 175, Laws of Utah 2001
63-65-5, as repealed and reenacted by Chapter 164, Laws of Utah 1989
63-65-6, as enacted by Chapter 164, Laws of Utah 1989
63-65-7, as enacted by Chapter 164, Laws of Utah 1989
63-65-8, as last amended by Chapter 259, Laws of Utah 1991
63-65-9, as enacted by Chapter 164, Laws of Utah 1989
ENACTS:
63-65-8.1, Utah Code Annotated 1953
63-65-8.2, Utah Code Annotated 1953
Be it enacted by the Legislature of the state of Utah:
Section 1. Section 63-65-2 is amended to read:
63-65-2. Definitions.
As used in this chapter:
(1) "Agency bonds" means any bond, note, contract, or other evidence of indebtedness
representing loans or grants made by an authorizing [
(2) "Authorized official" means the state treasurer or other person authorized by a bond
document to perform the required action.
[
for administering and managing revolving loan funds.
(4) "Bond document" means:
(a) a resolution of the commission; or
(b) an indenture or other similar document authorized by the commission that authorizes
and secures outstanding revenue bonds from time to time.
(5) "Commission" means the State Bonding Commission created in Section 63B-1-201 .
[
[
(a) the Water Resources Conservation and Development Fund, created in Section
73-10-24 ;
(b) the Water Resources Construction Fund, created in Section 73-10-8 ;
(c) the Water Resources Cities Water Loan Fund, created in Section 73-10-22 ;
(d) the Clean Fuel Conversion Funds, created in Title [
Clean Fuels Conversion Program Act;
(e) the Water Development Security [
Section 73-10c-5 ;
(f) the Agriculture Resource Development Fund, created in Section 4-18-6 ;
(g) the Utah Rural Rehabilitation Fund, created in Section 4-19-4 ;
(h) the Permanent Community Impact Fund, created in Section 9-4-303 ;
(i) the Petroleum Storage Tank Loan Fund, created in Section 19-6-405.3 ; and
(j) the Transportation Infrastructure Loan Fund, created in Section 72-2-202 .
Section 2. Section 63-65-3 is amended to read:
63-65-3. Investment officer -- Powers and duties.
(1) There is created within the Office of the State Treasurer an investment banking
officer to advise, counsel, and render technical assistance to authorizing agencies in the
management of state loan and grant programs.
(2) This officer shall:
(a) work cooperatively with the staff and boards of authorizing agencies as an advisor on
technical financial aspects concerning loan and grant programs authorized by law;
(b) coordinate procedures for the closing of and assist authorizing agencies in closing all
loans and grants of funds or other subsidy agreements;
(c) analyze, in conjunction with the appropriate authorizing agency, the financial
feasibility and economic and capital efficiency of projects of applicants to authorizing agencies
for loans and grants, review financing options, and make recommendations to each authorizing
agency regarding terms of loans or grants and levels of state subsidy in accordance with the
financial feasibility of the project and the efficiency of available state capital;
(d) coordinate and consolidate, to the extent possible, all financial and legal analysis of
financing plans and closings of loans and grants made by each authorizing agency; and
(e) provide an annual report of his activities to the state treasurer, the governor, the
Division of Finance, and the boards of each authorizing agency.
(3) The analysis under Subsection (2)(c) shall include[
consideration of the following criteria:
(a) a demonstration of need based on the applicant's overall financial profile, including
[
revenue and obligations existing within the community as a whole;
(b) the ability of the applicant to obtain financing from other, [
sources on terms and conditions reasonably affordable;
(c) the availability and advisability of financing methods such as loans, grants, interest
buy down arrangements, bond insurance, loan or bond guarantees, or any other appropriate
method;
(d) the economic and efficiency of capital advantages enuring to the authorizing agency
if the financing plan is adopted;
(e) a demonstration of local public support for the financing plan; and
(f) availability of other funds and financing methods under law.
(4) Each authorizing agency shall consult with and cooperate with the officer and shall
consider his recommendations before proceeding to fund a project, but the final decision as to the
appropriate financing plan shall rest with the board of the authorizing agency according to their
legal authority existing at the time.
Section 3. Section 63-65-4 is amended to read:
63-65-4. Custodial officer -- Powers and duties.
(1) There is created within the Division of Finance an officer responsible for the care,
custody, safekeeping, collection, and accounting of all bonds, notes, contracts, trust documents,
and other evidences of indebtedness owned or administered by:
(a) the state or any of its agencies; and
(b) revolving loan funds except the:
(i) Agriculture Resource Development Fund, created in Section 4-18-6 ;
(ii) Utah Rural Rehabilitation Fund, created in Section 4-19-4 ;
(iii) Petroleum Storage Tank Loan Fund, created in Section 19-6-405.3 ; and
(iv) Olene Walker Housing Loan Fund, created in Section 9-4-702 .
(2) (a) Each authorizing agency shall deliver to this officer for his care, custody,
safekeeping, collection, and accounting all bonds, notes, contracts, trust documents, and other
evidences of indebtedness owned or administered by:
(i) the state or any of its agencies; and
(ii) revolving loan funds.
(b) This officer shall:
(i) establish systems, programs, and facilities for the care, custody, safekeeping,
collection, and accounting for the bonds, notes, contracts, trust documents, and other evidences
of indebtedness submitted to him under this Subsection (2); and
(ii) shall make available updated reports to each authorizing agency as to the status of
loans under their authority.
(3) The officer described in Section 63-65-3 shall deliver to this officer for his care,
custody, safekeeping, collection, and accounting all bonds, notes, contracts, trust documents, and
other evidences of indebtedness closed as provided in Subsection 63-65-3 (2)(b).
Section 4. Section 63-65-5 is amended to read:
63-65-5. State treasurer may sell, assign, or liquidate agency bonds -- Marketing
plan required.
(1) [
state treasurer to[
authorizing agencies as provided in Section 63-65-6 [
[
(2) (a) Agency bonds shall be sold, assigned, transferred, or [
provided by the state treasurer under Section 63-65-6 [
(b) The governor or the governor's designee and the appropriate authorizing agency shall
approve the marketing plan, in writing.
Section 5. Section 63-65-6 is amended to read:
63-65-6. Marketing plan and related agreements -- Use of proceeds of liquidation
of agency bonds -- Report to Division of Finance -- Special funds -- Limitation on liability.
(1) (a) [
authorizing agency as provided in Section 63-65-5 , the state treasurer shall provide a written
[
authorizing agency or agencies for written approval.
(b) The marketing plan [
(i) the terms and conditions under which the agency bonds may be sold, assigned, or
[
(ii) the particular agency bonds to be sold, assigned, or [
maximum par amount of agency bonds to be sold, assigned, or [
(iii) the price or a range of prices of the agency bonds to be sold, assigned, or [
liquidated, which may be at, above, or below par, as the state treasurer determines in the [
marketing plan;
(iv) the terms and conditions of agreements entered into by the state treasurer on behalf
of the state with financial and other institutions for financial advisory services, trustee services,
insurance, letters of credit, reimbursement agreements, tender agreements, put agreements,
repurchase agreements, and indexing and tender agent agreements to facilitate the [
marketing plan or to secure or provide liquidity to support any agreement, obligation, or contract
entered into by the state treasurer on behalf of the state in connection with the sale, assignment,
or [
liquidation of the agency bonds and any insurance, repurchase, remarketing, tender, put, letter of
credit, or agreement, obligation, or contract entered in connection with them, including payment
of fees, charges, or other amounts coming due under agreements entered into with financial or
other institutions by the state treasurer, from the proceeds of any sale, [
other [
proceeds, and no other state money may be used for this purpose;
(v) the application of the proceeds received from the sale, assignment, or [
liquidation of agency bonds, and any investment earnings on them; and
(vi) all other details relating to the sale, assignment, or [
bonds and any related, attached, or accompanying insurance, tender, put, repurchase,
remarketing, letter of credit, or other agreement, obligation, or contract deemed necessary or
appropriate by the state treasurer.
[
contemplated in the [
(2) (a) After the payment of, or provision for payment of, the fees, charges, or other
amounts[
[
[
grant program of [
(b) (i) The marketing plan [
or contract entered into by the state treasurer on behalf of the state with respect to the sale,
repurchase, [
of the agency bonds remains outstanding under the [
investment earnings on them, may be pledged, escrowed, held in trust, or otherwise held in
reserve by the state treasurer to secure these agreements, obligations, or contracts of the state
treasurer entered into on behalf of the state.
(ii) Any [
Subsection (2)(b)(i) shall be limited solely to [
on them.
(c) No holder or beneficiary of any put, tender, repurchase, remarketing, or other similar
rights under such agreements, obligations, or contracts of the state treasurer entered into on
behalf of the state has any rights against the state, the state treasurer or any state agency, or funds
of the state, the state treasurer, or any state agency, other than those expressly set forth in the
agreement or contract embodying [
(3) (a) (i) The state treasurer may establish more than one [
this section.
(ii) Agency bonds may be combined in any combination and sold, pledged, assigned, or
otherwise [
provided in the applicable marketing plan [
(b) The state treasurer may, by order, set forth the sale price, form, manner of execution,
payment, manner of sale, [
details of agreements or contracts entered into in connection with them, including the application
of any proceeds and the investment earnings on them, consistent with the [
plan and this section.
(c) The state treasurer shall make a verified return to the Division of Finance
immediately upon completion of each transaction of:
(i) the amount of agency bonds involved;
(ii) the amounts received in each transaction entered into under this section; and
(iii) a brief description of any pledge or other restriction on the proceeds of the
transaction or the investment earnings on the proceeds.
(4) The state treasurer may:
(a) create any funds necessary to carry out the purposes of this section[
(b) invest all money held in those funds in accordance with Title 51, Chapter 7, State
Money Management Act [
to the [
(c) invest money held in the funds [
or possession of the United States, or of any of the political subdivisions of any state, territory, or
possession of the United States, or of the District of Columbia, described in Section 103, Internal
Revenue Code of 1986.
(5) The limitations contained in this section with respect to the liability of the state or its
agencies may not be construed to limit or alter the obligations of political subdivisions on the
bonds in the hands of the holders of them in any manner.
Section 6. Section 63-65-7 is amended to read:
63-65-7. Pledge of agency bonds to pay revenue bonds -- Contents of financing
agreements -- Use of monies received by authorizing agencies.
[
[
[
[
[
[
[
[
(1) With the approval of the relevant authorizing agency, the State Bonding Commission
may pledge, assign, or otherwise transfer any agency bonds, any monies payable on or with
respect to them, any legally available monies or other security administered by an authorizing
agency, or any combination of bonds, monies, or other security to provide for the payment of
revenue bonds issued under Section 63-65-8 and the payment of any amounts due under
agreements and contracts described in Subsection 63-65-8 (9).
(2) (a) Before issuing revenue bonds under Section 63-65-8 , the commission shall enter
into a [
(b) This agreement shall specify:
[
[
[
or agencies for the agency bonds[
[
[
[
[
authorizing agency from the proceeds of the revenue bonds, together with all amounts paid to the
authorizing agencies pursuant to Subsection 63-65-8 (10), shall be applied by the authorizing
agency as [
of [
Section 7. Section 63-65-8 is amended to read:
63-65-8. Commission may authorize revenue bonds -- Contents of bond document
-- Special and reserve funds -- Limitation on liability -- Restoration of monies in reserve
funds -- Payment of bonds and other technical requirements -- Refunding -- Report to
Division of Finance.
(1) (a) In order to provide authorizing agencies with an alternative method of liquidating
agency bonds[
to further the purposes of authorizing agencies, the [
the issuance of revenue bonds from time to time [
[
(b) These revenue bonds shall be payable solely from a special fund established by the
state treasurer as provided in Subsection (4).
(c) Revenue bonds may be sold at public or private sale and may be issued in one or
more series.
(2) Revenue bonds may be authorized, issued, and sold by the [
commission on behalf of the state at a time or times and in a manner set forth in a [
(a) the terms and conditions of sale, including price, whether at, below or above face
value;
(b) interest rates, including a variable rate;
(c) authorized denomination;
(d) maturity dates;
(e) form;
(f) manner of execution;
(g) manner of authentication;
(h) place and medium of payment;
(i) redemption terms;
(j) authorized signatures of public officials; and
(k) other provisions and details considered necessary or appropriate.
[
(3) To the extent set forth in the resolution, the proceeds of revenue bonds may be used
for the purposes set forth in Subsection (1) and to:
(a) provide for any necessary or desirable reserve fund as provided for in Subsection (5);
and
(b) pay fees, charges, and other amounts related to the issuance and sale of the revenue
bonds.
(4) (a) As provided in the [
premium, if any, and interest on, any issue of revenue bonds is payable solely from and secured
by [
(i) the pledge and assignment [
including all amounts payable on or with respect to them, [
for in an agreement entered into under Subsection 63-65-7 (2);
(ii) amounts on deposit in the reserve fund, if any, established [
(iii) amounts available pursuant to any security device or credit enhancement device that
the [
marketability of the revenue bonds; and
(iv) other amounts available [
commission to secure payment of that issue of revenue bonds.
(b) [
or general credit of the state or its political subdivisions or agencies, but this limitation does not
limit or alter the obligations of political subdivisions on agency bonds in any manner.
(c) Revenue bonds do not constitute nor give rise to a general obligation or liability of, or
constitute a charge or lien against, the general credit or taxing power of the state or its political
subdivisions or agencies, including any authorizing agency.
(d) Revenue bonds shall contain on their face a statement that:
(i) [
sources set forth in this Subsection (4) and specified in the [
document with respect to the revenue bonds;
(ii) neither the state nor any political subdivision of the state is obligated to pay the
revenue bonds; and
(iii) neither the faith and credit nor the taxing power of the state or any of its political
subdivisions is pledged to the payment of principal or redemption price of, or premium, if any, or
interest on the revenue bonds.
(e) Revenue bonds do not constitute debt of the state within the meaning of Utah
Constitution Article XIII, Sec. [
(5) (a) The [
issue of revenue bonds.
(b) If a reserve fund is established, the [
bond document relating to that issue of revenue bonds [
(i) the minimum amount that is required to be on deposit in the reserve fund;
(ii) the amount of sale proceeds from the sale of that issue of revenue bonds that shall be
deposited in the reserve fund; and
(iii) the manner in which any deficiency in the reserve fund shall be replenished.
[
certify to the governor and the director of the Division of Finance the amount [
any, that may be required to restore all reserve funds established to the minimum amount
specified by the state treasurer with respect to each reserve fund.
(ii) The governor may request an appropriation from the Legislature [
the specified minimum amount.
(6) (a) (i) The [
that any signature of a public official authorized to sign revenue bonds may be by the facsimile
signature of [
bonds.
(ii) If all signatures of public officials on the revenue bonds are facsimile signatures, the
[
by or on behalf of a designated authenticating agent.
(iii) If an official ceases to hold office before delivery of the revenue bonds signed by
[
sufficient for all purposes.
(b) A facsimile of the seal of the state [
or otherwise placed on the revenue bonds.
(7) (a) The [
the replacement of lost, destroyed, stolen, or mutilated revenue bonds or for the exchange of
revenue bonds after issuance for revenue bonds of smaller or larger denominations.
(b) Revenue bonds in changed denominations shall:
(i) be exchanged for the original revenue bonds in the aggregate principal amounts and in
a manner that prevents the duplication of interest; and
(ii) bear interest at the same rate, be of the same series, mature on the same date, and be
as nearly as practicable in the same form as the original revenue bonds.
(8) (a) (i) Revenue bonds may be registered as to both principal and interest or may be in
a book entry form under which the right to principal and interest may be transferred only through
a book entry.
(ii) The [
the services of one or more financial institutions, other entities or persons, or nominees, within or
outside the state, for:
[
[
[
[
[
(b) The records of ownership, registration, transfer, and exchange of the revenue bonds,
and of persons to whom payment with respect to them is made, are classified as private or
protected as defined in Title 63, Chapter 2, Government Records Access and Management Act.
(c) The revenue bonds and any evidences of participation interests in the revenue bonds
may be issued, executed, authenticated, registered, transferred, exchanged, and otherwise made to
comply with Title 15, Chapter 7, Registered Public Obligations Act, or any other act of the
Legislature relating to the registration of obligations enacted to meet the requirements of Section
149 (a), Internal Revenue Code of 1986, or any comparable predecessor or successor provision,
and applicable regulations.
[
(9) (a) The commission may authorize the execution and delivery of whatever
agreements and contracts [
appropriate in connection with the issuance of revenue bonds.
(b) These agreements and contracts may include agreements and contracts with financial
and other institutions for financial advisory services, trustee services, insurance, letters of credit,
reimbursement agreements, tender agreements, put agreements, repurchase agreements, and
indexing and tender agent agreements to:
[
[
entered into by [
with:
[
[
[
agreement, obligation, or contract entered into in connection with them, including payment of
fees, charges, or other amounts coming due under agreements entered into with financial or other
institutions [
(10) When all revenue bonds of an issue have been paid, or provision for their payment
has been made, there shall be transferred to the appropriate authorizing agency or agencies, in the
amounts and in the manner that the [
to the extent not required to secure payment of the revenue bonds and related fees, charges, and
other amounts:
(a) all amounts remaining on deposit in any reserve fund established with respect to the
issue of revenue bonds; and
(b) all other amounts and all agency bonds held by the [
any trustee and pledged to the payment of the revenue bonds.
(11) (a) The state treasurer or the commission may create any funds and accounts
necessary to carry out the purposes of this section.
(b) (i) The state treasurer shall administer and maintain those funds and accounts.
(ii) The state treasurer may invest all [
in accordance with Title 51, Chapter 7, State Money Management Act [
accordance with the [
behalf of the state [
(iii) The commission may not approve the bond document or other agreement with
respect to the investment and application of these [
affirmatively approved any investment provisions contained in the bond document or other
agreement.
(c) All income from the [
this Subsection (11) shall accrue to the benefit of the fund or account and shall be used for the
purpose [
(12) (a) The [
refunding revenue bonds of the state in accordance with Title 11, Chapter 27, Utah Refunding
Bond Act, for the purpose of refunding any revenue bonds.
(b) The state is considered a "public body" and the [
"governing body" for purposes of that act.
(13) (a) [
issued under this section until [
precedent to the issuance of the revenue bond have been satisfied.
(b) A recital on any revenue bond of a finding and certification conclusively establishes
the completion and satisfaction of all conditions of this section.
(14) Revenue bonds, interest paid on revenue bonds, and any income from revenue
bonds is not taxable within this state for any purpose, except for the corporate franchise tax.
(15) (a) Revenue bonds are legal investments for all state trust funds, insurance
companies, banks, trust companies, and the State School Fund.
(b) Revenue bonds may also be used as collateral to secure legal obligations.
(16) Immediately upon the issuance of each issue of revenue bonds, [
an authorized official shall make a verified return to the Division of Finance of:
(a) the aggregate principal amount of revenue bonds issued;
(b) the amount of proceeds of sale of revenue bonds received by the state [
(c) the [
bonds;
(d) the total amount of all fees and expenses relating to the issuance of the revenue
bonds;
(e) the amount of sale proceeds of the revenue bonds used to pay fees and expenses; and
(f) the amount of sale proceeds of the revenue bonds deposited in the reserve fund
established with respect to the issue of revenue bonds, if any.
Section 8. Section 63-65-8.1 is enacted to read:
63-65-8.1. Tax status -- Exemption.
The revenue bonds issued under this chapter, any interest paid on the revenue bonds, and
any income from the bonds is not taxable in Utah for any purpose, except for the corporate
franchise tax.
Section 9. Section 63-65-8.2 is enacted to read:
63-65-8.2. Publication of resolution or notice -- Limitation on actions to contest
legality.
(1) The commission may either:
(a) publish once in a newspaper having general circulation in Utah any resolution
adopted by it; or
(b) in lieu of publishing the entire resolution, publish a notice of revenue bonds to be
issued, titled as such, containing:
(i) the purpose of the revenue bond issue;
(ii) the maximum principal amount that may be issued;
(iii) the maximum number of years over which the revenue bonds may mature;
(iv) the maximum interest rate that the revenue bonds may bear, if any;
(v) the maximum discount from par, expressed as a percentage of principal amount, at
which the revenue bonds may be sold; and
(vi) that a copy of the resolution or other bond document may be examined at the office
of the state treasurer during regular business hours for at least 30 days after the publication of the
notice.
(2) For 30 days after the date of publication, any interested person may contest:
(a) the legality of the resolution or other bond document;
(b) any of the revenue bonds authorized under it; or
(c) any of the provisions made for the repayment of the revenue bonds.
(3) After 30 days, a person may not, for any cause, contest:
(a) the legality of the resolution or other bond document;
(b) any of the revenue bonds authorized under the resolution or other bond document; or
(c) any of the provisions made for the security and repayment of the revenue bonds.
Section 10. Section 63-65-9 is amended to read:
63-65-9. Payment of expenses.
(1) All expenses incurred by the state [
(a) in the case of expenses incurred under Section 63-65-6 , from the proceeds of [
the liquidation of agency bonds; and
(b) in the case of expenses incurred under Section [
of sale of revenue bonds [
(2) [
are not paid [
of state revenue bonds shall be [
the authorizing agencies [
(b) These expenses are not a charge to or an appropriation from the General Fund.
[Bill Documents][Bills Directory]