Download Zipped Introduced WordPerfect SB0043.ZIP
[Status][Bill Documents][Fiscal Note][Bills Directory]

S.B. 43

             1     

BONDS AND OTHER OBLIGATIONS

             2     
2012 GENERAL SESSION

             3     
STATE OF UTAH

             4     
Chief Sponsor: David P. Hinkins

             5     
House Sponsor: ____________

             6     
             7      LONG TITLE
             8      General Description:
             9          This bill amends provisions of the State System of Higher Education relating to bonds
             10      and other obligations.
             11      Highlighted Provisions:
             12          This bill:
             13          .    provides that the State Board of Regents may publish a resolution, or notice of the
             14      resolution, for the authorization of bonds or other obligations;
             15          .    describes requirements related to the publication of a resolution or notice described
             16      in this bill;
             17          .    describes the procedures that a person in interest is required to comply with to
             18      contest:
             19              .    the legality of a resolution;
             20              .    bonds or obligations that are authorized by the resolution; or
             21              .    a provision made for the security and payment of the bonds or other obligations;
             22          .    prohibits a person from contesting a matter described in the preceding paragraph
             23      later than 30 days after the day on which the resolution or notice described above is
             24      published;
             25          .    provides for a recital in bonds or other obligations and describes the effect of the
             26      recital; and
             27          .    makes technical changes.


             28      Money Appropriated in this Bill:
             29          None
             30      Other Special Clauses:
             31          None
             32      Utah Code Sections Affected:
             33      REPEALS AND REENACTS:
             34          53B-13-113, as enacted by Laws of Utah 1987, Chapter 167
             35          53B-21-106, as enacted by Laws of Utah 1987, Chapter 167
             36     
             37      Be it enacted by the Legislature of the state of Utah:
             38          Section 1. Section 53B-13-113 is repealed and reenacted to read:
             39          53B-13-113. Publication of resolution or notice -- Limitations on actions to contest
             40      legality -- Recital in bonds -- Incontestability.
             41          (1) When the board adopts a resolution for the authorization of bonds or other
             42      obligations under this chapter, the board may publish the notice described in Subsection (2):
             43          (a) once in a newspaper of general circulation in Utah; and
             44          (b) in accordance with Section 45-1-101 .
             45          (2) The notice required in Subsection (1) shall include the following:
             46          (a) the entire resolution; or
             47          (b) in lieu of the entire resolution, a notice, titled, as applicable, "Notice of Bonds to be
             48      Issued" or "Notice of Obligations to be Incurred" that includes:
             49          (i) the name of the board;
             50          (ii) the purpose of the bond issue or other obligations;
             51          (iii) the type of bonds or other obligations;
             52          (iv) the maximum principal amount that may be issued or incurred;
             53          (v) the maximum number of years over which the bonds or other obligations may
             54      mature;
             55          (vi) the maximum interest rate that the bonds or other obligations may bear, if any;
             56          (vii) the maximum discount from par, expressed as a percentage of principal amount, at
             57      which the bonds or other obligations may be sold;
             58          (viii) a general description of the security pledged for repayment of the bonds or other


             59      obligations; and
             60          (ix) the times and place where a copy of the resolution may be examined.
             61          (3) If the board publishes the notice described in Subsection (2)(b), the board shall
             62      ensure that the resolution is available to be examined during regular business hours, for at least
             63      30 days after the day on which the notice is published.
             64          (4) Any person in interest may, in accordance with Subsection (5), contest:
             65          (a) the legality of the resolution;
             66          (b) any bonds that are authorized by the resolution; or
             67          (c) any provision made for the security and payment of the bonds.
             68          (5) A person in interest who desires to contest a matter described in Subsection (4)
             69      shall, within 30 days after the day on which the resolution described in Subsection (2)(a), or the
             70      notice described in Subsection (2)(b), is published, file a verified written complaint in the
             71      district court of Salt Lake County.
             72          (6) After the 30-day period described in Subsection (5) has ended, a person may not,
             73      for any cause, contest:
             74          (a) the legality of the resolution;
             75          (b) any bonds that are authorized by the resolution; or
             76          (c) any provision made for the security and payment of the bonds.
             77          (7) The board may require that the bonds recite that they are issued under authority of,
             78      and in full compliance with, the provisions of this chapter and all other provisions of applicable
             79      law.
             80          (8) A recital described in Subsection (7) conclusively establishes full compliance with
             81      the provisions of this chapter and all other provisions of applicable law.
             82          (9) Notwithstanding any other provision of this section, all bonds that contain a recital
             83      described in Subsection (7) are not contestable, for any reason, after their delivery for value.
             84          Section 2. Section 53B-21-106 is repealed and reenacted to read:
             85          53B-21-106. Publication of resolution or notice -- Limitations on actions to contest
             86      legality -- Recital in bonds or other obligations -- Incontestability.
             87          (1) When the board adopts a resolution for the authorization of bonds or other
             88      obligations under this chapter, the board may publish the notice described in Subsection (2):
             89          (a) once in a newspaper of general circulation in Utah; and


             90          (b) in accordance with Section 45-1-101 .
             91          (2) The notice required in Subsection (1) shall include the following:
             92          (a) the entire resolution; or
             93          (b) in lieu of the entire resolution, a notice, titled, as applicable, "Notice of Bonds to be
             94      Issued" or "Notice of Other Obligations to be Incurred" that includes:
             95          (i) the name of the board;
             96          (ii) the purpose of the bond issue or other obligations;
             97          (iii) the type of bonds or other obligations;
             98          (iv) the maximum principal amount that may be issued or incurred;
             99          (v) the maximum number of years over which the bonds or other obligations may
             100      mature;
             101          (vi) the maximum interest rate that the bonds or other obligations may bear, if any;
             102          (vii) the maximum discount from par, expressed as a percentage of principal amount, at
             103      which the bonds or other obligations may be sold;
             104          (viii) a general description of the security pledged for repayment of the bonds or other
             105      obligations; and
             106          (ix) the times and place where a copy of the resolution may be examined.
             107          (3) If the board publishes the notice described in Subsection (2)(b), the board shall
             108      ensure that the resolution is available to be examined during regular business hours, for at least
             109      30 days after the day on which the notice is published.
             110          (4) Any person in interest may, in accordance with Subsection (5), contest:
             111          (a) the legality of the resolution;
             112          (b) any bonds or obligations that are authorized by the resolution; or
             113          (c) any provision made for the security and payment of the bonds or other obligations.
             114          (5) A person in interest who desires to contest a matter described in Subsection (4)
             115      shall, within 30 days after the day on which the resolution described in Subsection (2)(a), or the
             116      notice described in Subsection (2)(b), is published, file a verified written complaint in the
             117      district court of Salt Lake County.
             118          (6) After the 30-day period described in Subsection (5) has ended, a person may not,
             119      for any cause, contest:
             120          (a) the legality of the resolution;


             121          (b) any bonds or obligations that are authorized by the resolution; or
             122          (c) any provision made for the security and payment of the bonds or other obligations.
             123          (7) The board may require that the bonds or other obligations recite that they are issued
             124      under authority of, and in full compliance with, the provisions of this chapter and all other
             125      provisions of applicable law.
             126          (8) A recital described in Subsection (7) conclusively establishes full compliance with
             127      the provisions of this chapter and all other provisions of applicable law.
             128          (9) Notwithstanding any other provision of this section, all bonds issued, or other
             129      obligations incurred, that contain a recital described in Subsection (7), are not contestable, for
             130      any reason, after their delivery for value.




Legislative Review Note
    as of 1-13-12 6:47 PM


Office of Legislative Research and General Counsel


[Bill Documents][Bills Directory]