S.B. 166

1

COMMUNITY AND ECONOMIC DEVELOPMENT
2 AMENDMENTS
3 2003 GENERAL SESSION
4 STATE OF UTAH
5 Sponsor: Carlene M. Walker
6 This act modifies provisions related to community and economic development by
7 expanding the powers of the Private Activity Bond Review Board to contract with
8 nonprofit manufacturing service organizations for specific purposes. The act expands
9 the considerations the board shall take into account in making allocations of bond cap
10 volume. The act expands the powers of the Utah Housing Corporation to include the
11 issuing of bonds and financing of projects under the Utah Industrial Facilities and
12 Development Act. The act makes certain technical changes.
13 This act affects sections of Utah Code Annotated 1953 as follows:
14 AMENDS:
15 9-4-504, as last amended by Chapter 192, Laws of Utah 1997
16 9-4-505, as last amended by Chapter 95, Laws of Utah 2000
17 9-4-902, as last amended by Chapter 319, Laws of Utah 2001
18 9-4-911, as last amended by Chapter 319, Laws of Utah 2001
19 9-4-913, as last amended by Chapter 319, Laws of Utah 2001
20 11-17-2, as last amended by Chapter 73, Laws of Utah 2001
21 ENACTS:
22 11-17-20, Utah Code Annotated 1953
23 Be it enacted by the Legislature of the state of Utah:
24 Section 1. Section 9-4-504 is amended to read:
25 9-4-504. Powers, functions, and duties of board of review.
26 The board of review shall:
27 (1) make, subject to the limitations of the code, allocations of volume cap to issuing

28 authorities;
29 (2) determine the amount of volume cap to be allocated with respect to approved
30 applications;
31 (3) maintain a record of all applications filed by issuing authorities under Section
32 9-4-505 and all certificates of allocation issued under Section 9-4-507 ;
33 (4) maintain a record of all bonds issued by issuing authorities during each year;
34 (5) determine the amount of volume cap to be treated as a carryforward under Section
35 146(f) of the code and allocate this carryforward to one or more qualified carryforward
36 purposes;
37 (6) make available upon reasonable request a certified copy of all or any part of the
38 records maintained by the board of review under this part or a summary of them including
39 information relating to the volume cap for each year and any amounts available for allocation
40 under this part;
41 (7) [promulgate] in accordance with Title 63, Chapter 46a, Utah Administrative
42 Rulemaking Act, make rules for the allocation of volume cap under this part; [and]
43 (8) charge reasonable fees for the performance of duties prescribed by this part,
44 including application, filing, and processing fees[.]; and
45 (9) contract for services that:
46 (a) promote maximum utilization of the volume cap available for manufacturing
47 projects;
48 (b) perform applicant assessments to assist the board in prioritizing manufacturing
49 applicants; and
50 (c) identify and assist in implementing a continuous improvement program for each
51 manufacturing recipient to:
52 (i) stimulate economic growth;
53 (ii) promote employment; and
54 (iii) achieve greater industrial development in the state.
55 Section 2. Section 9-4-505 is amended to read:
56 9-4-505. Allocation of volume cap.
57 (1) (a) Subject to Subsection (1)(b), the volume cap for each year shall be distributed
58 by the board of review to the various allotment accounts as set forth in Section 9-4-506 .

59 (b) The board of review may distribute up to 50% of each increase in the volume cap
60 that occurs after the effective date of this Subsection (1)(b) for use in development that occurs
61 in quality growth areas, depending upon the board's analysis of the relative need for additional
62 volume cap between development in quality growth areas and the allotment accounts under
63 Section 9-4-506 .
64 (2) To obtain an allocation of the volume cap, issuing authorities shall submit to the
65 board of review an application containing information required by the procedures and
66 processes of the board of review.
67 (3) (a) The board of review shall establish criteria for making allocations of volume
68 cap that are consistent with the purposes of the code and this part.
69 (b) In making an allocation of volume cap the board of review shall consider the
70 following:
71 [(a)] (i) the principal amount of the bonds proposed to be issued;
72 [(b)] (ii) the nature and the location of the project or the type of program;
73 [(c)] (iii) the likelihood that the bonds will be sold and the timeframe of bond issuance;
74 [(d)] (iv) whether the project or program could obtain adequate financing without an
75 allocation of volume cap;
76 [(e)] (v) the degree to which an allocation of volume cap is required for the project or
77 program to proceed or continue;
78 [(f)] (vi) the social, health, economic, and educational effects of the project or program
79 on the local community and state as a whole;
80 [(g)] (vii) the anticipated economic development created or retained within the local
81 community and the state as a whole;
82 [(h)] (viii) the anticipated number of jobs, both temporary and permanent, created or
83 retained within the local community and the state as a whole;
84 [(i)] (ix) if the project is a residential rental project, the degree to which the residential
85 rental project targets lower income populations; [and]
86 [(j)] (x) whether the project meets the principles of quality growth recommended by the
87 Quality Growth Commission created under Section 11-38-201 [.]; and
88 (xi) the extent to which the manufacturing applicant commits to reinvest anticipated
89 savings into a manufacturing extension continuous improvement program for itself or its

90 suppliers in the state.
91 (4) The board of review shall evidence an allocation of volume cap by issuing a
92 certificate in accordance with Section 9-4-507 .
93 (5) (a) From January 1 to June 30, the board shall set aside at least 50% of the Small
94 Issue Bond Account that may be allocated only to manufacturing projects.
95 (b) From July 1 to August 15, the board shall set aside at least 50% of the Pool
96 Account that may be allocated only to manufacturing projects.
97 Section 3. Section 9-4-902 is amended to read:
98 9-4-902. Policy -- Finding and declaration.
99 [(1)] It is found and declared that:
100 (1) the policy of the state of Utah is to assure the health, safety, and welfare of its
101 citizens, that an adequate supply of decent, safe, and sanitary housing is essential to the
102 well-being of the citizens of the state, and that an adequate supply of mortgage funds for
103 housing at reasonable interest rates is in the public interest[.];
104 [(2) It is found and declared that:]
105 (2) (a) there continues to exist throughout the state a seriously inadequate supply of
106 safe and sanitary dwelling accommodations within the financial means of persons and families
107 of low or moderate income who wish to purchase or rent residential housing; and
108 (b) from time to time the high rates of interest charged by mortgage lenders seriously
109 restrict the transfer of existing housing and new housing starts[.];
110 (3) [It is found and declared that] the reduction in residential construction starts
111 associated with the high rates causes a condition of substantial unemployment and
112 underemployment in the construction industry which impedes the economy of the state and
113 affects the welfare and prosperity of all the people of the state[.];
114 [(4) It is found and declared that:]
115 (4) (a) these conditions associated with the recurrent shortages of residential mortgage
116 funds contribute to slums and blight in the cities and rural areas of the state and ultimately to
117 the deterioration of the quality of living conditions within the state; and
118 (b) in accordance with the purpose of this part to assist in providing housing for low
119 and moderate income persons who otherwise could not achieve decent, safe, and sanitary
120 housing, the agency shall make every effort to make housing available in rural, inner city, and

121 other areas experiencing difficulty in securing construction and mortgage loans, and to make
122 decent, safe, and sanitary housing available to low income persons and families[.];
123 (5) [It is found and declared that] in order to assure an adequate fund of private capital
124 into this housing, the cooperation between private enterprise and state government is essential
125 and is in the public interest[.];
126 (6) [It is found and declared that] low and moderate income persons in Utah have a
127 wide range of housing needs, which necessitates the development of many different kinds of
128 programs to address those needs, including programs providing mortgage loans, nontraditional
129 loans, grants, and other forms of financial assistance, and combinations of these forms[.];
130 (7) [It is found and declared that] there are private organizations and governmental
131 entities throughout Utah that are endeavoring to improve the availability of housing for low
132 and moderate income, but many of these organizations and entities lack expertise and financial
133 resources to act efficiently and expeditiously in these efforts[.];
134 (8) [It is found and declared that] innovative programs that bring together resources
135 from the public, nonprofit, and private sector are necessary in order to increase the supply of
136 housing for low and moderate individuals, but these programs usually need advice and
137 financial assistance to become established[.];
138 (9) [It is declared that] all of the foregoing are public purposes and uses for which
139 moneys may be borrowed, expended, advanced, loaned, or granted, and that these activities
140 serve a public purpose in improving or otherwise benefiting the people of this state, and that
141 the necessity of enacting the provisions in this part is in the public interest and is so declared as
142 a matter of express legislative determination[.];
143 (10) [It is found and declared] that the compelling need within the state for the creation
144 of an adequate supply of mortgage funds at reasonable interest rates and for other kinds of
145 financial assistance to help provide affordable housing for low and moderate income
146 individuals can be best met by the establishment of an independent body corporate and politic,
147 constituting a public corporation, vested with the powers and duties specified in this part[.];
148 (11) [It is declared that] the corporation is intended to operate:
149 (a) with the power to issue tax exempt bonds to finance the purchase of mortgage loans
150 to qualified buyers;
151 (b) as a financially independent body; and

152 (c) so that its debts shall be payable solely from payments received by the corporation
153 from mortgage borrowers and other revenues generated internally by the corporation[.]; and
154 (12) the corporation shall operate with the power to issue bonds and finance projects
155 pursuant to Title 11, Chapter 17, Utah Industrial Facilities and Development Act, to:
156 (a) stimulate economic growth;
157 (b) promote employment; and
158 (c) achieve greater development in the state.
159 Section 4. Section 9-4-911 is amended to read:
160 9-4-911. Corporation -- Additional powers.
161 (1) To accomplish the declared purposes of this part, the corporation has the following
162 powers in addition to others granted in this part:
163 (a) to purchase mortgage loans originated by mortgage lenders or local public bodies
164 made for the purpose of financing the construction, development, rehabilitation, or purchase of
165 residential housing for low and moderate income persons;
166 (b) to make mortgage loans and to provide financial assistance to housing sponsors for
167 the purpose of financing the construction, development, rehabilitation, or purchase of
168 residential housing for low and moderate income persons;
169 (c) to make mortgage loans and provide financial assistance to housing sponsors for the
170 purpose of financing the operations of a housing development that are necessary or desirable to
171 enable the housing development to remain available as residential housing for low and
172 moderate income persons, whether or not the housing development has been financed by the
173 corporation;
174 (d) to provide financial assistance to any housing authority created under Part 6, which
175 housing authorities may enter into commitments for and accept loans for a housing project or
176 projects as defined in Section 9-4-602 ; and
177 (e) to make mortgage loans and to provide financial assistance to low and moderate
178 income persons for the construction, rehabilitation, or purchase of residential housing.
179 (2) Bonds to purchase loans pursuant to Subsection (1)(a) shall be issued only after a
180 determination by the corporation that the loans are not otherwise available upon reasonably
181 equivalent terms and conditions from private lenders.
182 (3) Loans for owner-occupied housing made pursuant to Subsection (1)(a) may not

183 include a penalty for prepayment.
184 (4) The corporation shall make rules or adopt policies and procedures to govern the
185 activities authorized under this section including rules, policies, and procedures as to any or all
186 of the following:
187 (a) procedures for the submission of requests or the invitation of proposals for the
188 purchase and sale of mortgage loans and the making of mortgage loans;
189 (b) rates, fees, charges, and other terms and conditions of originating or servicing
190 mortgage loans in order to protect against a realization of an excessive financial return or
191 benefit by the originator or servicer;
192 (c) the type and amount of collateral, payment bonds, performance bonds, or other
193 security to be provided for construction loans made by the corporation;
194 (d) the nature and amounts of fees to be charged by the corporation to provide for
195 expenses and reserves of the corporation;
196 (e) procedures allowing the corporation to prohibit persons who fail to comply with the
197 rules of the corporation with respect to the operations of any program of the corporation from
198 participating, either directly or indirectly, in the programs of the corporation;
199 (f) the terms and conditions under which the corporation may purchase and make
200 mortgage loans under each program of the corporation;
201 (g) the terms and conditions under which the corporation may provide financial
202 assistance under each program of the corporation;
203 (h) the terms and conditions under which the corporation may guarantee mortgage
204 loans under each program of the corporation; and
205 (i) any other matters related to the duties or exercise of powers under this section.
206 (5) (a) (i) The trustees of the corporation shall elect the directors, trustees, members, if
207 any, of each subsidiary.
208 (ii) Service by a trustee of the corporation in any such capacity does not constitute a
209 conflict of interest for any purpose.
210 (iii) The corporation may delegate any of its powers and duties under this part to any
211 subsidiary.
212 (iv) Subsidiaries shall constitute legal entities separate and distinct from each other, the
213 corporation, and the state.

214 (b) Each note, bond, and other obligation of a subsidiary shall contain on its face a
215 statement to the effect that:
216 (i) the subsidiary is obligated to pay the same solely from the revenues or other funds
217 of the subsidiary;
218 (ii) neither the corporation nor the state nor any of its political subdivisions is obligated
219 to pay the same; and
220 (iii) neither the faith and credit nor the taxing power of the state or any of its political
221 subdivisions is pledged to the payment of principal, or redemption price of, or the interest on
222 the note, bond, or other obligation.
223 (c) Upon dissolution of any subsidiary of the corporation, any assets shall revert to the
224 corporation or to any successor to the corporation or, failing this succession, to the state.
225 (6) (a) The corporation may:
226 (i) enter into interest rate contracts that its trustees determine are necessary, convenient,
227 or appropriate for the control or management of debt or for the cost of servicing debt; and
228 (ii) use corporation funds to satisfy its payment obligations under those contracts.
229 (b) Interest rate contracts may contain payment, security, default, termination, remedy,
230 and other terms and conditions that the trustees consider appropriate.
231 (c) Neither interest rate contracts nor funds used in connection with interest rate
232 contracts may be considered a deposit or investment.
233 (7) (a) Subject to Section 9-4-917 , the corporation has all the powers set forth in Title
234 11, Chapter 17, Utah Industrial Facilities and Development Act, of a municipality or county as
235 though the corporation were defined as a municipality or county for purposes of Chapter 17.
236 (b) The powers include the power to issue bonds and finance projects under Chapter
237 17.
238 Section 5. Section 9-4-913 is amended to read:
239 9-4-913. Power to borrow money and make loans -- Issuance of notes and bonds.
240 (1) The corporation has the power and is authorized to borrow money and to issue from
241 time to time its notes, bonds, and other obligations in such principal amounts as the corporation
242 determines is necessary to provide sufficient funds for:
243 (a) the purchase of mortgage loans from mortgage lenders;
244 (b) the making of construction loans;

245 (c) the making of loans to housing authorities;
246 (d) the payment of interest on bonds, notes, and other obligations of the corporation;
247 (e) the establishment of reserves to secure the bonds, notes, and other obligations;
248 (f) the making of mortgage loans;
249 (g) the making of loans to mortgage lenders or other lending institutions with respect to
250 multifamily residential rental housing under terms and conditions requiring the proceeds of
251 these loans to be used by these mortgage lenders or other lending institutions for the making of
252 loans for new multifamily residential rental housing or the acquisition or rehabilitation of
253 existing multifamily residential rental housing;
254 (h) the making of loans for the rehabilitation of residential housing; [and]
255 (i) all other expenditures of the corporation incident to and necessary or convenient to
256 carry out its purposes and powers[.]; and
257 (j) the purpose of financing a project under Title 11, Chapter 17, Utah Industrial
258 Facilities and Development Act.
259 (2) (a) The corporation shall have the power to issue notes to renew notes and bonds to
260 pay notes, including the interest thereon, and whenever it considers refunding expedient, to
261 refund any bonds by the issuance of new bonds, whether the bonds to be refunded have or have
262 not matured, and to issue bonds partly to refund bonds then outstanding and partly for any of its
263 corporate purposes.
264 (b) The refunding bonds may be:
265 (i) sold and the proceeds applied to the purchase, redemption, or payment of the bonds
266 to be refunded; or
267 (ii) exchanged for the bonds to be refunded.
268 (3) (a) Except as may otherwise be expressly provided by the corporation, every issue
269 of its notes or bonds shall be general obligations of the corporation payable solely out of any
270 revenues or monies of the corporation, subject only to any agreements with the holders of
271 particular notes or bonds pledging any particular monies or revenues.
272 (b) These bonds or notes may be additionally secured by a pledge of any grant or
273 contribution from the federal government or any corporation, association, institution, or person
274 or a pledge of any monies, income, or revenues of the corporation from any source.
275 (4) (a) The notes and bonds shall be authorized by resolution or resolutions of the

276 corporation, shall bear the date or dates, and shall mature at the time or times as the resolution
277 or resolutions may provide, except that no note, including any renewals thereof, shall mature
278 more than five years from the date of its original issue, and no bond shall mature more than 50
279 years from the date of its issue, as the resolution may provide.
280 (b) The notes and bonds shall bear interest at the rate or rates, including variations in
281 the rates, be in denominations, be in a form, either coupon or registered, carry the registration
282 privileges, be executed in the manner, be payable in a medium of payment, at the place or
283 places, and be subject to the terms of redemption, including redemption prior to maturity, as
284 the resolution or resolutions may provide.
285 (c) The notes and bonds of the corporation may be sold by the corporation at public or
286 private sale, and at the price or prices as the corporation shall determine.
287 (d) (i) The notes and bonds may bear interest at a variable interest rate as the resolution
288 may provide.
289 (ii) The resolution may establish a method, formula, or index pursuant to which the
290 interest rate on the notes and bonds may be determined from time to time.
291 (e) In connection with the notes and bonds the corporation may authorize and enter into
292 agreements or other arrangements with financial, banking, and other institutions for letters of
293 credit, standby letters of credit, surety bonds, reimbursement agreements, remarketing
294 agreements, indexing agreements, tender agent agreements, and other agreements with respect
295 to securing the notes and bonds, with respect to enhancing the marketability and credit
296 worthiness of the notes and bonds, with respect to determining a variable interest rate on the
297 notes and bonds, and with respect to the payment from any legally available source (which may
298 include the proceeds of the notes and bonds) of fees, charges, and other amounts coming due
299 with respect to any such agreements.
300 (5) Any resolution or resolutions authorizing any notes or bonds or their issue may
301 contain provisions, which shall be a part of the contract or contracts with their holders, as to:
302 (a) pledging all or any part of the revenues to secure the payment of the notes or bonds
303 or of any issue thereof, subject to the agreements with noteholders or bondholders as may then
304 exist;
305 (b) pledging all or any part of the assets of the corporation, including mortgages and
306 obligations securing the same, to secure the payment of the notes or bonds or of any issue of

307 notes or bonds, subject to the agreements with noteholders or bondholders as may then exist;
308 (c) the use and disposition of the gross income from mortgages owned by the
309 corporation and payment of principal of mortgages owned by the corporation;
310 (d) the setting aside of reserves or sinking funds and their regulation and disposition;
311 (e) limitations on the purpose to which the proceeds of sale of notes or bonds may be
312 applied and pledging the proceeds to secure the payment of the notes or bonds or of their issue;
313 (f) limitations on the issuance of additional notes or bonds, including:
314 (i) the terms upon which additional notes or bonds may be issued and secured; and
315 (ii) the refunding of outstanding or other notes or bonds;
316 (g) the procedure, if any, by which the terms of any contract with noteholders or
317 bondholders may be amended or abrogated, the amount of notes or bonds to which the holders
318 must consent, and the manner in which the consent may be given;
319 (h) limitations on the amount of monies to be expended by the corporation for
320 operating expenses of the corporation;
321 (i) vesting in a trustee or trustees the property, rights, powers, and duties in trust as the
322 corporation may determine, which may include any or all of the rights, powers, and duties of
323 the trustee appointed by the noteholders or bondholders pursuant to this act and limiting or
324 abrogating the right of noteholders or bondholders to appoint a trustee under this act or limiting
325 the rights, powers, and duties of the trustee;
326 (j) defining the acts or omissions to act which shall constitute a default in the
327 obligations and duties of the corporation to the holders of the notes or bonds and providing for
328 the rights and remedies of the holders of the notes or bonds in the event of default, including as
329 a matter of right the appointment of a receiver; but the rights and remedies may not be
330 inconsistent with the general laws of the state and other provisions of this part; or
331 (k) any other matters, of like or different character, which in any way affect the security
332 or protection of the holders of the notes or bonds.
333 (6) (a) Any pledge made by the corporation shall be valid, enforceable, and binding
334 from the time when the pledge is made and shall have a lien priority based on the time of grant
335 or, if more than one lien is granted at a given time, as set forth in the resolution or instrument
336 pursuant to which the pledge is made.
337 (b) The revenues, monies, or property so pledged and thereafter received by the

338 corporation shall immediately be subject to the lien of the pledge and shall constitute a
339 perfected lien without any physical delivery thereof or further act, and the lien of any such
340 pledge shall be valid and binding as against all parties having claims of any kind in tort,
341 contract, or otherwise against the corporation, irrespective of whether the parties have notice
342 thereof.
343 (c) Neither the resolution nor any other instrument by which a pledge is created need
344 be recorded.
345 (7) The corporation, subject to the agreements with noteholders or bondholders as may
346 then exist, shall have power out of any funds available for it to purchase notes or bonds of the
347 corporation, which shall immediately be cancelled, at a price not exceeding:
348 (a) if the notes or bonds are then redeemable, the redemption price then applicable plus
349 accrued interest to the next interest payment thereon; or
350 (b) if the notes or bonds are not then redeemable, the redemption price applicable on
351 the first date after the purchase upon which the notes or bonds become subject to redemption
352 plus accrued interest to the date.
353 (8) (a) The notes and bonds shall be secured by a trust indenture by and between the
354 corporation and a corporate trustee, which may be any bank having the power of a trust
355 company or any trust company within or without the state.
356 (b) The trust indenture may contain provisions for protecting and enforcing the rights
357 and remedies of the noteholders or bondholders as may be reasonable and proper and not in
358 violation of law, including covenants setting forth the duties of the corporation in relation to
359 the exercise of its corporate powers and the custody, safeguarding, and application of all
360 monies.
361 (c) The corporation may provide by the trust indenture for the payment of the proceeds
362 of the notes or bonds and the revenues to the trustee under the trust indenture or other
363 depository, and for the method of their disbursement, with any safeguards and restrictions as it
364 may determine.
365 (d) All expenses incurred in carrying out the trust indenture may be treated as a part of
366 the operating expenses of the corporation.
367 (e) If the notes or bonds shall be secured by a trust indenture, the noteholders or
368 bondholders may not have authority to appoint a separate trustee to represent them.

369 (9) Whether or not the notes and bonds are of the form and character as to be
370 negotiable instruments under the terms of the Uniform Commercial Code, the notes and bonds
371 are negotiable instruments within the meaning of and for all the purposes of the Uniform
372 Commercial Code, subject only to the provisions of the notes and bonds relating to registration.
373 (10) In the event that any of the trustees or officers of the corporation shall cease to be
374 trustees or officers of the corporation prior to the delivery of any notes or bonds or coupons
375 signed by them, their signatures or facsimiles of their signatures shall nevertheless be valid and
376 sufficient for all purposes, the same as if the trustees or officers had remained in office until the
377 delivery.
378 (11) Neither the trustees of the corporation nor any other person executing the notes or
379 bonds issued under this chapter are subject to personal liability or accountability by reason of
380 the issuance thereof.
381 (12) The corporation shall have the power to provide for the replacement of lost,
382 destroyed, or mutilated bonds or notes.
383 Section 6. Section 11-17-2 is amended to read:
384 11-17-2. Definitions.
385 As used in this chapter:
386 (1) "Bonds" means bonds, notes, or other evidences of indebtedness.
387 (2) (a) "Finance" or "financing" includes the issuing of bonds by a municipality,
388 county, or state university for the purpose of using a portion[,] or all [or substantially all] of the
389 proceeds to pay for or to reimburse the user or its designee for the costs of the acquisition of
390 facilities of a project, or to create funds for the project itself where appropriate, whether these
391 costs are incurred by the municipality, the county, the state university, the user, or a designee of
392 the user.
393 (b) If title to or in these facilities at all times remains in the user, the bonds of the
394 municipality or county shall be secured by a pledge of one or more notes, debentures, bonds,
395 other secured or unsecured debt obligations of the user, or such sinking fund or other
396 arrangement as in the judgment of the governing body is appropriate for the purpose of
397 assuring repayment of the bond obligations to investors in accordance with their terms.
398 (3) (a) "Governing body" means the board or body that the general legislative powers
399 of the municipality or county are vested in.

400 (b) In the case of state universities to which this chapter applies, "governing body"
401 means the board or body having the control and supervision of the University of Utah and Utah
402 State University and, with reference to a nonprofit corporation or foundation created by and
403 operating under the auspices of a state university, the board of directors or board of trustees of
404 that corporation or foundation.
405 (4) (a) "Industrial park" means land, including all necessary rights, appurtenances,
406 easements, and franchises relating to it, acquired and developed by any municipality, county, or
407 state university for the establishment and location of a series of sites for plants and other
408 buildings for industrial, distribution, and wholesale use.
409 (b) There may be included as part of the development of the land for any industrial
410 park under this chapter the acquisition and provision of water, sewerage, drainage, street, road,
411 sidewalk, curb, gutter, street lighting, electrical distribution, railroad, or docking facilities, or
412 any combination of them, but only to the extent that these facilities are incidental to the use of
413 the land as an industrial park.
414 (5) "Mortgage" means a mortgage, trust deed, or other security device.
415 (6) "Municipality" means any incorporated city or town in the state, including cities or
416 towns operating under home rule charters.
417 (7) "Pollution" means any form of environmental pollution including, but not limited
418 to, water pollution, air pollution, pollution caused by solid waste disposal, thermal pollution,
419 radiation contamination, or noise pollution.
420 (8) "Project" means:
421 (a) any industrial park, land, interest in land, building, structure, facility, system,
422 fixture, improvement, appurtenance, machinery, equipment, or any combination of them,
423 whether or not in existence or under construction:
424 (i) that is suitable for industrial, manufacturing, warehousing, research, business, and
425 professional office building facilities, commercial, shopping services, food, lodging, low
426 income rental housing, recreational, or any other business purposes;
427 (ii) that is suitable to provide services to the general public;
428 (iii) that is suitable for use by any corporation, person, or entity engaged in health care
429 services, including hospitals, nursing homes, extended care facilities, facilities for the care of
430 persons with a physical or mental disability, and administrative and support facilities; [or]

431 (iv) that is suitable for use by a state university for the purpose of aiding in the
432 accomplishment of its authorized academic, scientific, engineering, technical, and economic
433 development functions, but "project" does not include any property, real, personal, or mixed,
434 for the purpose of the construction, reconstruction, improvement, or maintenance of a public
435 utility as defined in Section 54-2-1 , and except as provided in Subsection (8)(b); or
436 (v) that is suitable for use by a not-for-profit corporation for the purpose of aiding in
437 the accomplishment of its authorized functions;
438 (b) any land, interest in land, building, structure, facility, system, fixture, improvement,
439 appurtenance, machinery, equipment, or any combination of them, used by any individual,
440 partnership, firm, company, corporation, public utility, association, trust, estate, political
441 subdivision, state agency, or any other legal entity, or its legal representative, agent, or assigns,
442 for the reduction, abatement, or prevention of pollution, including, but not limited to, the
443 removal or treatment of any substance in process material, if that material would cause
444 pollution if used without the removal or treatment;
445 (c) facilities, machinery, or equipment, the manufacturing and financing of which will
446 maintain or enlarge domestic or foreign markets for Utah industrial products; or
447 (d) any economic development or new venture investment fund to be raised other than
448 from:
449 (i) municipal or county general fund moneys;
450 (ii) moneys raised under the taxing power of any county or municipality; or
451 (iii) moneys raised against the general credit of any county or municipality.
452 (9) "State university" means the University of Utah and Utah State University and
453 includes any nonprofit corporation or foundation created by and operating under their authority.
454 (10) "User" means the person, whether natural or corporate, who will occupy, operate,
455 maintain, and employ the facilities of, or manage and administer a project after the financing,
456 acquisition, or construction of it, whether as owner, manager, purchaser, lessee, or otherwise.
457 Section 7. Section 11-17-20 is enacted to read:
458 11-17-20. Powers of Utah Housing Corporation.
459 (1) For purposes of this chapter and Title 9, Chapter 4, Part 9, Utah Housing
460 Corporation Act, the Utah Housing Corporation has all the powers set out in this chapter of a
461 municipality or county as though the corporation were defined as a municipality or county for

462 purposes of this chapter.
463 (2) (a) The powers referred to in Subsection (1) include the power to issue bonds and
464 finance projects under this chapter.
465 (b) Projects financed by the corporation under this chapter may be located in any
466 municipality or county in the state.
467 (c) Notices to be published in connection with the issuance of bonds or the financing of
468 projects under this chapter may be published in a newspaper or newspapers qualified to convey
469 legal notices, having general circulation in the municipality or county within which the project
470 is located.
471 (3) The corporation is not authorized to exercise the powers referred to in Subsection
472 (1) in any manner that would create general obligations of the state or any of its agencies,
473 departments, divisions, or political subdivisions.
474 (4) For purposes of this chapter, the corporation's governing body is its board of
475 trustees.




Legislative Review Note
as of 2-4-03 8:38 AM

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

Office of Legislative Research and General Counsel