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S.B. 49

             1     

OVERSIGHT OF BONDING BY COUNTIES

             2     
2011 GENERAL SESSION

             3     
STATE OF UTAH

             4     
Chief Sponsor: Jerry W. Stevenson

             5     
House Sponsor: Brad R. Wilson

             6     
             7      LONG TITLE
             8      General Description:
             9          This bill amends a county legislative body's authority to create a board of directors for
             10      certain types of facilities and the board's authority.
             11      Highlighted Provisions:
             12          This bill:
             13          .    amends a county legislative body's authority to create a board of directors for certain
             14      types of facilities;
             15          .    amends the board's authority; and
             16          .    makes technical corrections.
             17      Money Appropriated in this Bill:
             18          None
             19      Other Special Clauses:
             20          None
             21      Utah Code Sections Affected:
             22      AMENDS:
             23          17-12-4, as last amended by Laws of Utah 1993, Chapter 227
             24     
             25      Be it enacted by the Legislature of the state of Utah:
             26          Section 1. Section 17-12-4 is amended to read:
             27           17-12-4. Bond issue for auditoriums, etc., and "convention complex" facilities --


             28      Required -- Board of directors -- Use of revenues from facilities -- Purpose of act -- Rights
             29      of bondholders.
             30          [Any] (1) (a) A county legislative body adopting proceedings authorizing the issuance
             31      of county bonds for the purpose of acquiring, improving, extending, furnishing, and equipping
             32      auditoriums, sports arenas, stadiums, convention centers, and all properties and facilities
             33      ordinarily forming part of a so-called "convention complex," or for any part or combination of
             34      the foregoing[, shall in the proceedings authorizing such bonds: (1) Provide] may, by
             35      resolution, provide for the creation of a board of directors which, so long as any of the bonds
             36      remain outstanding either in original or refunded form[, shall] may:
             37          (i) have complete management and control of the facilities acquired with the proceeds
             38      of the bonds[. Such board]; or
             39          (ii) act as an advisory board to the county executive and legislative body regarding the
             40      management and operation of a property or facility described in Subsection (1)(a).
             41          (b) (i) The board of directors described in Subsection (1)(a) shall have the number of
             42      members, possessing such qualifications and selected for such terms, and shall operate
             43      pursuant to such rules and regulations as [may be provided in such proceedings.] adopted by
             44      the county legislative body.
             45          (ii) The members of [such board] the board of directors described in Subsection (1)(a)
             46      shall serve without compensation except for reimbursement of expenses actually incurred in
             47      the performance of their duties.
             48          (iii) After the appointment and organization of [any] the board of directors, all
             49      vacancies thereafter occurring, whether by expiration of term or otherwise, shall be filled by
             50      majority vote of the remaining members of the board. [Subject to the provisions of such
             51      proceedings,]
             52          (iv) Subject to provisions adopted by the county legislative body, the members of the
             53      board of directors [shall] may have the powers and duties ordinarily enjoyed by the directors of
             54      a private corporation operating similar facilities.
             55          (2) [Provide] A county legislative body that adopts proceedings for the purpose of and
             56      as described in Subsection (1)(a) shall provide that all revenues of every nature derived from
             57      the operation of the facilities so acquired with bond proceeds and not expended in the
             58      reasonable and proper costs of maintaining and operating the facilities, including the making of


             59      necessary repairs and replacements, be pledged to and utilized for the payment of principal of
             60      and interest on the bonds and, if so provided, the creation of a reserve for such purpose.
             61          (3) This act is adopted for the purpose of eliminating or reducing so far as possible the
             62      ad valorem taxes necessary to be levied for the payment of such bonds and for the purpose of
             63      improving the security of such bonds, and accordingly the holders of the bonds from time to
             64      time shall have a vested and enforceable contract right in the provisions of this act and in the
             65      provisions of the bond proceedings adopted pursuant hereto.




Legislative Review Note
    as of 1-11-11 9:20 AM


Office of Legislative Research and General Counsel


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