Senator Jerry W. Stevenson proposes the following substitute bill:


1     
STATE FINANCE REVIEW COMMISSION

2     
2022 GENERAL SESSION

3     
STATE OF UTAH

4     
Chief Sponsor: Jeffrey D. Stenquist

5     
Senate Sponsor: Jerry W. Stevenson

6     

7     LONG TITLE
8     General Description:
9          This bill enacts and modifies provisions related to the State Finance Review
10     Commission.
11     Highlighted Provisions:
12          This bill:
13          ▸     for the Utah Inland Port Authority, the Point of the Mountain State Land Authority,
14     and the Military Installation Development Authority, requires each authority, or a
15     public infrastructure district created by the authority, to report issuance of bonds;
16          ▸     creates the State Finance Review Commission;
17          ▸     requires the State Building Ownership Authority and the State Bonding
18     Commission to submit an annual report to the State Finance Review Commission
19     on obligations and outstanding bonds;
20          ▸     requires a loan entity to submit information on a revolving loan fund for review to
21     the State Finance Review Commission;
22          ▸     directs the State Finance Review Commission to review the lending activities of a
23     loan entity;
24          ▸     prohibits a large public transit district from issuing a bond unless the State Finance
25     Review Commission has first approved the bond;

26          ▸     requires a bonding political subdivision and certain public infrastructure districts to
27     submit a bond parameters resolution for review by the State Finance Review
28     Commission;
29          ▸     enacts language clarifying that a bond approved or parameters resolution reviewed
30     by the State Finance Review Commission does not create an obligation of the state
31     or is an act that lends the state's credit;
32          ▸     requires the State Finance Review Commission to provide training and information
33     on debt management, lending and borrowing best practices, and compliance to
34     certain entities;
35          ▸     prohibits a bonding political subdivision from entering a public-private partnership
36     unless the State Finance Review Commission has first approved the public-private
37     partnership;
38          ▸     requires the state treasurer, with assistance from the Governor's Office of Planning
39     and Budget and the Office of the Legislative Fiscal Analyst, to submit an annual
40     debt affordability report to the State Finance Review Commission and the Revenue
41     and Taxation Interim Committee; and
42          ▸     makes other conforming changes.
43     Money Appropriated in this Bill:
44          None
45     Other Special Clauses:
46          This bill provides a coordination clause.
47     Utah Code Sections Affected:
48     AMENDS:
49          11-58-106, as enacted by Laws of Utah 2021, Chapter 415
50          11-58-701, as enacted by Laws of Utah 2018, Chapter 179
51          11-59-104, as enacted by Laws of Utah 2021, Chapter 415
52          11-59-202, as last amended by Laws of Utah 2020, Chapter 354
53          17D-4-301, as renumbered and amended by Laws of Utah 2021, Chapter 314
54          17B-2a-808.1, as last amended by Laws of Utah 2021, Chapter 239
55          63B-1-305, as renumbered and amended by Laws of Utah 2003, Chapter 86
56          63B-1a-102, as enacted by Laws of Utah 2003, Chapter 2

57          63H-1-104, as enacted by Laws of Utah 2021, Chapter 415
58          63H-1-601, as last amended by Laws of Utah 2011, Chapter 234
59          63N-13-306, as enacted by Laws of Utah 2020, Chapter 446
60     ENACTS:
61          63C-25-101, Utah Code Annotated 1953
62          63C-25-201, Utah Code Annotated 1953
63          63C-25-202, Utah Code Annotated 1953
64          63C-25-203, Utah Code Annotated 1953
65     Utah Code Sections Affected by Coordination Clause:
66          11-65-501, Utah Code Annotated 1953
67          63C-25-201, Utah Code Annotated 1953
68     

69     Be it enacted by the Legislature of the state of Utah:
70          Section 1. Section 11-58-106 is amended to read:
71          11-58-106. Loan approval committee -- Approval of infrastructure loans.
72          (1) As used in this section:
73          (a) "Borrower" means the same as that term is defined in Section 63A-3-401.5.
74          (b) "Infrastructure loan" means the same as that term is defined in Section
75     63A-3-401.5.
76          (c) "Infrastructure project" means the same as that term is defined in Section
77     63A-3-401.5.
78          (d) "Inland port fund" means the same as that term is defined in Section 63A-3-401.5.
79          (e) "Loan approval committee" means a committee consisting of:
80          (i) the two board members appointed by the governor;
81          (ii) the board member appointed by the president of the Senate;
82          (iii) the board member appointed by the speaker of the House of Representatives; and
83          (iv) the board member appointed by the chair of the Permanent Community Impact
84     Fund Board.
85          (2) The loan approval committee may approve an infrastructure loan from the inland
86     port fund to a borrower for an infrastructure project undertaken by the borrower.
87          (3) (a) The loan approval committee shall establish the terms of an infrastructure loan

88     in accordance with Section 63A-3-404.
89          (b) The loan approval committee shall require the terms of an infrastructure loan
90     secured by property tax differential to include a requirement that money from the infrastructure
91     loan be used only for an infrastructure project within the project area that generates the
92     property tax differential.
93          (c) The terms of an infrastructure loan that the loan approval committee approves may
94     include provisions allowing for the infrastructure loan to be forgiven if:
95          (i) the infrastructure loan is to a public university in the state;
96          (ii) the infrastructure loan is to fund a vehicle electrification pilot project;
97          (iii) the amount of the infrastructure loan does not exceed $15,000,000; and
98          (iv) the public university receives matching funds for the vehicle electrification pilot
99     project from another source.
100          (4) (a) The loan approval committee shall establish policies and guidelines with respect
101     to prioritizing requests for infrastructure loans and approving infrastructure loans.
102          (b) With respect to infrastructure loan requests for an infrastructure project on authority
103     jurisdictional land, the policies and guidelines established under Subsection (4)(a) shall give
104     priority to an infrastructure loan request that furthers the policies and best practices
105     incorporated into the environmental sustainability component of the authority's business plan
106     under Subsection 11-58-202(1)(a).
107          (5) Within 60 days after the execution of an infrastructure loan, the loan approval
108     committee shall report the infrastructure loan, including the loan amount, terms, interest rate,
109     and security, to:
110          (a) the Executive Appropriations Committee[.]; and
111          (b) the State Finance Review Commission created in Section 63C-25-201.
112          (6) (a) Salaries and expenses of committee members who are legislators shall be paid
113     in accordance with Section 36-2-2 and Legislative Joint Rules, Title 5, Chapter 3, Legislator
114     Compensation.
115          (b) A committee member who is not a legislator may not receive compensation or
116     benefits for the member's service on the committee, but may receive per diem and
117     reimbursement for travel expenses incurred as a committee member at the rates established by
118     the Division of Finance under:

119          (i) Sections 63A-3-106 and 63A-3-107; and
120          (ii) rules made by the Division of Finance pursuant to Sections 63A-3-106 and
121     63A-3-107.
122          Section 2. Section 11-58-701 is amended to read:
123          11-58-701. Resolution authorizing issuance of port authority bonds --
124     Characteristics of bonds.
125          (1) The authority may not issue bonds under this part unless the board first [adopts a
126     resolution authorizing their issuance.]:
127          (a) adopts a parameters resolution for the bonds that sets forth:
128          (i) the maximum:
129          (A) amount of bonds;
130          (B) term; and
131          (C) interest rate; and
132          (ii) the expected security for the bonds; and
133          (b) submits the parameters resolution for review and recommendation to the State
134     Finance Review Commission created in Section 63C-25-201.
135          (2) (a) As provided in the authority resolution authorizing the issuance of bonds under
136     this part or the trust indenture under which the bonds are issued, bonds issued under this part
137     may be issued in one or more series and may be sold at public or private sale and in the manner
138     provided in the resolution or indenture.
139          (b) Bonds issued under this part shall bear the date, be payable at the time, bear interest
140     at the rate, be in the denomination and in the form, carry the conversion or registration
141     privileges, have the rank or priority, be executed in the manner, be subject to the terms of
142     redemption or tender, with or without premium, be payable in the medium of payment and at
143     the place, and have other characteristics as provided in the authority resolution authorizing
144     their issuance or the trust indenture under which they are issued.
145          (3) Upon the board's adoption of a resolution providing for the issuance of bonds, the
146     board may provide for the publication of the resolution:
147          (a) in a newspaper having general circulation in the authority's boundaries; and
148          (b) as required in Section 45-1-101.
149          (4) In lieu of publishing the entire resolution, the board may publish notice of bonds

150     that contains the information described in Subsection 11-14-316(2).
151          (5) For a period of 30 days after the publication, any person in interest may contest:
152          (a) the legality of the resolution or proceeding;
153          (b) any bonds that may be authorized by the resolution or proceeding; or
154          (c) any provisions made for the security and payment of the bonds.
155          (6) (a) A person may contest the matters set forth in Subsection (5) by filing a verified
156     written complaint, within 30 days of the publication under Subsection (5), in the district court
157     of the county in which the person resides.
158          (b) A person may not contest the matters set forth in Subsection (5), or the regularity,
159     formality, or legality of the resolution or proceeding, for any reason, after the 30-day period for
160     contesting provided in Subsection (6)(a).
161          (7) No later than 60 days after the closing day of any bonds, the authority shall report
162     the bonds issuance, including the amount of the bonds, terms, interest rate, and security, to:
163          (a) the Executive Appropriations Committee; and
164          (b) the State Finance Review Commission created in Section 63C-25-201.
165          Section 3. Section 11-59-104 is amended to read:
166          11-59-104. Loan approval committee -- Approval of infrastructure loans.
167          (1) As used in this section:
168          (a) "Borrower" means the same as that term is defined in Section 63A-3-401.5.
169          (b) "Infrastructure loan" means the same as that term is defined in Section
170     63A-3-401.5.
171          (c) "Infrastructure project" means the same as that term is defined in Section
172     63A-3-401.5.
173          (d) "Point of the mountain fund" means the same as that term is defined in Section
174     63A-3-401.5.
175          (e) "Loan approval committee" means a committee consisting of:
176          (i) the board member:
177          (A) who is a member of the Senate appointed under Subsection 11-59-302(2)(a); and
178          (B) whose Senate district is closer to the boundary of the point of the mountain state
179     land than is the Senate district of the other member of the Senate appointed under Subsection
180     11-59-302(2)(a);

181          (ii) the board member:
182          (A) who is a member of the House of Representatives appointed under Subsection
183     11-59-302(2)(b); and
184          (B) whose House district is closer to the boundary of the point of the mountain state
185     land than is the House district of the other member of the House of Representatives appointed
186     under Subsection 11-59-302(2)(b);
187          (iii) the board member who is appointed by the governor under Subsection
188     11-59-302(2)(c)(i);
189          (iv) the board member who is appointed by the governor under Subsection
190     11-59-302(2)(c)(ii); and
191          (v) the board member who is the mayor of Draper or a member of the Draper city
192     council.
193          (2) The loan approval committee may approve an infrastructure loan from the point of
194     the mountain fund to a borrower for an infrastructure project undertaken by the borrower.
195          (3) The loan approval committee shall establish the terms of an infrastructure loan in
196     accordance with Section 63A-3-404.
197          (4) The loan approval committee may establish policies and guidelines with respect to
198     prioritizing requests for infrastructure loans and approving infrastructure loans.
199          (5) Within 60 days after the execution of an infrastructure loan, the loan approval
200     committee shall report the infrastructure loan, including the loan amount, terms, interest rate,
201     and security, to:
202          (a) the Executive Appropriations Committee[.]; and
203          (b) the State Finance Review Commission created in Section 63C-25-201.
204          (6) (a) Salaries and expenses of committee members who are legislators shall be paid
205     in accordance with Section 36-2-2 and Legislative Joint Rules, Title 5, Chapter 3, Legislator
206     Compensation.
207          (b) A committee member who is not a legislator may not receive compensation or
208     benefits for the member's service on the committee, but may receive per diem and
209     reimbursement for travel expenses incurred as a committee member at the rates established by
210     the Division of Finance under:
211          (i) Sections 63A-3-106 and 63A-3-107; and

212          (ii) rules made by the Division of Finance pursuant to Sections 63A-3-106 and
213     63A-3-107.
214          Section 4. Section 11-59-202 is amended to read:
215          11-59-202. Authority powers.
216          (1) The authority may:
217          [(1)] (a) as provided in this chapter, plan, manage, and implement the development of
218     the point of the mountain state land, including the ongoing operation of facilities on the point
219     of the mountain state land;
220          [(2)] (b) undertake, or engage a consultant to undertake, any study, effort, or activity
221     the board considers appropriate to assist or inform the board about any aspect of the proposed
222     development of the point of the mountain state land, including the best development model and
223     financial projections relevant to the authority's efforts to fulfill its duties and responsibilities
224     under this section and Section 11-59-203;
225          [(3)] (c) sue and be sued;
226          [(4)] (d) enter into contracts generally;
227          [(5)] (e) buy, obtain an option upon, or otherwise acquire any interest in real or
228     personal property, as necessary to accomplish the duties and responsibilities of the authority,
229     including an interest in real property, apart from point of the mountain state land, or personal
230     property, outside point of the mountain state land, for publicly owned infrastructure and
231     improvements, if the board considers the purchase, option, or other interest acquisition to be
232     necessary for fulfilling the authority's development objectives;
233          [(6)] (f) sell, convey, grant, dispose of by gift, or otherwise dispose of any interest in
234     real or personal property;
235          [(7)] (g) enter into a lease agreement on real or personal property, either as lessee or
236     lessor;
237          [(8)] (h) provide for the development of the point of the mountain state land under one
238     or more contracts;
239          [(9)] (i) exercise powers and perform functions under a contract, as authorized in the
240     contract;
241          [(10)] (j) accept financial or other assistance from any public or private source for the
242     authority's activities, powers, and duties, and expend any funds so received for any of the

243     purposes of this chapter;
244          [(11)] (k) borrow money, contract with, or accept financial or other assistance from the
245     federal government, a public entity, or any other source for any of the purposes of this chapter
246     and comply with any conditions of the loan, contract, or assistance;
247          [(12)] (l) subject to Subsection (2), issue bonds to finance the undertaking of any
248     development objectives of the authority, including bonds under Title 11, Chapter 17, Utah
249     Industrial Facilities and Development Act, and bonds under Title 11, Chapter 42, Assessment
250     Area Act;
251          [(13)] (m) hire employees, including contract employees, in addition to or in place of
252     staff provided under Section 11-59-304;
253          [(14)] (n) transact other business and exercise all other powers provided for in this
254     chapter;
255          [(15)] (o) enter into a development agreement with a developer of some or all of the
256     point of the mountain state land;
257          [(16)] (p) provide for or finance an energy efficiency upgrade, a renewable energy
258     system, or electric vehicle charging infrastructure as defined in Section 11-42a-102, in
259     accordance with Title 11, Chapter 42a, Commercial Property Assessed Clean Energy Act;
260          [(17)] (q) exercise powers and perform functions that the authority is authorized by
261     statute to exercise or perform;
262          [(18)] (r) enter into one or more interlocal agreements under Title 11, Chapter 13,
263     Interlocal Cooperation Act, with one or more local government entities for the delivery of
264     services to the point of the mountain state land; and
265          [(19)] (s) enter into an agreement with the federal government or an agency of the
266     federal government, as the board considers necessary or advisable, to enable or assist the
267     authority to exercise its powers or fulfill its duties and responsibilities under this chapter.
268          (2) The authority may not issue bonds under this part unless the board first:
269          (a) adopts a parameters resolution for the bonds that sets forth:
270          (i) the maximum:
271          (A) amount of bonds;
272          (B) term; and
273          (C) interest rate; and

274          (ii) the expected security for the bonds; and
275          (b) submits the parameters resolution for review and recommendation to the State
276     Finance Review Commission created in Section 63C-25-101.
277          (3) No later than 60 days after the closing day of any bonds, the authority shall report
278     the bonds issuance, including the amount of the bonds, terms, interest rate, and security, to:
279          (a) the Executive Appropriations Committee; and
280          (b) the State Finance Review Commission created in Section 63C-25-201.
281          Section 5. Section 17B-2a-808.1 is amended to read:
282          17B-2a-808.1. Large public transit district board of trustees powers and duties --
283     Adoption of ordinances, resolutions, or orders -- Effective date of ordinances.
284          (1) The powers and duties of a board of trustees of a large public transit district stated
285     in this section are in addition to the powers and duties stated in Section 17B-1-301.
286          (2) The board of trustees of each large public transit district shall:
287          (a) hold public meetings and receive public comment;
288          (b) ensure that the policies, procedures, and management practices established by the
289     public transit district meet state and federal regulatory requirements and federal grantee
290     eligibility;
291          (c) subject to Subsection (8), create and approve an annual budget, including the
292     issuance of bonds and other financial instruments, after consultation with the local advisory
293     council;
294          (d) approve any interlocal agreement with a local jurisdiction;
295          (e) in consultation with the local advisory council, approve contracts and overall
296     property acquisitions and dispositions for transit-oriented development;
297          (f) in consultation with constituent counties, municipalities, metropolitan planning
298     organizations, and the local advisory council:
299          (i) develop and approve a strategic plan for development and operations on at least a
300     four-year basis; and
301          (ii) create and pursue funding opportunities for transit capital and service initiatives to
302     meet anticipated growth within the public transit district;
303          (g) annually report the public transit district's long-term financial plan to the State
304     Bonding Commission;

305          (h) annually report the public transit district's progress and expenditures related to state
306     resources to the Executive Appropriations Committee and the Infrastructure and General
307     Government Appropriations Subcommittee;
308          (i) annually report to the Transportation Interim Committee the public transit district's
309     efforts to engage in public-private partnerships for public transit services;
310          (j) hire, set salaries, and develop performance targets and evaluations for:
311          (i) the executive director; and
312          (ii) all chief level officers;
313          (k) supervise and regulate each transit facility that the public transit district owns and
314     operates, including:
315          (i) fix rates, fares, rentals, charges and any classifications of rates, fares, rentals, and
316     charges; and
317          (ii) make and enforce rules, regulations, contracts, practices, and schedules for or in
318     connection with a transit facility that the district owns or controls;
319          (l) subject to Subsection (4), control the investment of all funds assigned to the district
320     for investment, including funds:
321          (i) held as part of a district's retirement system; and
322          (ii) invested in accordance with the participating employees' designation or direction
323     pursuant to an employee deferred compensation plan established and operated in compliance
324     with Section 457 of the Internal Revenue Code;
325          (m) in consultation with the local advisory council created under Section
326     17B-2a-808.2, invest all funds according to the procedures and requirements of Title 51,
327     Chapter 7, State Money Management Act;
328          (n) if a custodian is appointed under Subsection (3)(d), and subject to Subsection (4),
329     pay the fees for the custodian's services from the interest earnings of the investment fund for
330     which the custodian is appointed;
331          (o) (i) cause an annual audit of all public transit district books and accounts to be made
332     by an independent certified public accountant;
333          (ii) as soon as practicable after the close of each fiscal year, submit to each of the
334     councils of governments within the public transit district a financial report showing:
335          (A) the result of district operations during the preceding fiscal year;

336          (B) an accounting of the expenditures of all local sales and use tax revenues generated
337     under Title 59, Chapter 12, Part 22, Local Option Sales and Use Taxes for Transportation Act;
338          (C) the district's financial status on the final day of the fiscal year; and
339          (D) the district's progress and efforts to improve efficiency relative to the previous
340     fiscal year; and
341          (iii) supply copies of the report under Subsection (2)(o)(ii) to the general public upon
342     request;
343          (p) report at least annually to the Transportation Commission created in Section
344     72-1-301, which report shall include:
345          (i) the district's short-term and long-range public transit plans, including the portions of
346     applicable regional transportation plans adopted by a metropolitan planning organization
347     established under 23 U.S.C. Sec. 134; and
348          (ii) any transit capital development projects that the board of trustees would like the
349     Transportation Commission to consider;
350          (q) direct the internal auditor appointed under Section 17B-2a-810 to conduct audits
351     that the board of trustees determines, in consultation with the local advisory council created in
352     Section 17B-2a-808.2, to be the most critical to the success of the organization;
353          (r) together with the local advisory council created in Section 17B-2a-808.2, hear audit
354     reports for audits conducted in accordance with Subsection (2)(o);
355          (s) review and approve all contracts pertaining to reduced fares, and evaluate existing
356     contracts, including review of:
357          (i) how negotiations occurred;
358          (ii) the rationale for providing a reduced fare; and
359          (iii) identification and evaluation of cost shifts to offset operational costs incurred and
360     impacted by each contract offering a reduced fare;
361          (t) in consultation with the local advisory council, develop and approve other board
362     policies, ordinances, and bylaws; and
363          (u) review and approve any:
364          (i) contract or expense exceeding $200,000; or
365          (ii) proposed change order to an existing contract if the change order:
366          (A) increases the total contract value to $200,000 or more;

367          (B) increases a contract of or expense of $200,000 or more by 15% or more; or
368          (C) has a total change order value of $200,000 or more.
369          (3) A board of trustees of a large public transit district may:
370          (a) subject to Subsection (5), make and pass ordinances, resolutions, and orders that
371     are:
372          (i) not repugnant to the United States Constitution, the Utah Constitution, or the
373     provisions of this part; and
374          (ii) necessary for:
375          (A) the governance and management of the affairs of the district;
376          (B) the execution of district powers; and
377          (C) carrying into effect the provisions of this part;
378          (b) provide by resolution, under terms and conditions the board considers fit, for the
379     payment of demands against the district without prior specific approval by the board, if the
380     payment is:
381          (i) for a purpose for which the expenditure has been previously approved by the board;
382          (ii) in an amount no greater than the amount authorized; and
383          (iii) approved by the executive director or other officer or deputy as the board
384     prescribes;
385          (c) in consultation with the local advisory council created in Section 17B-2a-808.2:
386          (i) hold public hearings and subpoena witnesses; and
387          (ii) appoint district officers to conduct a hearing and require the officers to make
388     findings and conclusions and report them to the board; and
389          (d) appoint a custodian for the funds and securities under its control, subject to
390     Subsection (2)(n).
391          (4) For a large public transit district in existence as of May 8, 2018, on or before
392     September 30, 2019, the board of trustees of a large public transit district shall present a report
393     to the Transportation Interim Committee regarding retirement benefits of the district, including:
394          (a) the feasibility of becoming a participating employer and having retirement benefits
395     of eligible employees and officials covered in applicable systems and plans administered under
396     Title 49, Utah State Retirement and Insurance Benefit Act;
397          (b) any legal or contractual restrictions on any employees that are party to a collectively

398     bargained retirement plan; and
399          (c) a comparison of retirement plans offered by the large public transit district and
400     similarly situated public employees, including the costs of each plan and the value of the
401     benefit offered.
402          (5) The board of trustees may not issue a bond unless the board of trustees has
403     consulted and received approval from the [State Bonding Commission created in Section
404     63B-1-201] State Finance Review Commission created in Section 63C-25-201.
405          (6) A member of the board of trustees of a large public transit district or a hearing
406     officer designated by the board may administer oaths and affirmations in a district investigation
407     or proceeding.
408          (7) (a) The vote of the board of trustees on each ordinance or resolution shall be by roll
409     call vote with each affirmative and negative vote recorded.
410          (b) The board of trustees of a large public transit district may not adopt an ordinance
411     unless it is introduced at least 24 hours before the board of trustees adopts it.
412          (c) Each ordinance adopted by a large public transit district's board of trustees shall
413     take effect upon adoption, unless the ordinance provides otherwise.
414          (8) (a) For a large public transit district in existence on May 8, 2018, for the budget for
415     calendar year 2019, the board in place on May 8, 2018, shall create the tentative annual budget.
416          (b) The budget described in Subsection (8)(a) shall include setting the salary of each of
417     the members of the board of trustees that will assume control on or before November 1, 2018,
418     which salary may not exceed $150,000, plus additional retirement and other standard benefits,
419     as set by the local advisory council as described in Section 17B-2a-808.2.
420          (c) For a large public transit district in existence on May 8, 2018, the board of trustees
421     that assumes control of the large public transit district on or before November 2, 2018, shall
422     approve the calendar year 2019 budget on or before December 31, 2018.
423          Section 6. Section 17D-4-301 is amended to read:
424          17D-4-301. Public infrastructure district bonds.
425          (1) (a) [A] Subject to Subsection (1)(b), a public infrastructure district may issue
426     negotiable bonds for the purposes described in Section 17D-4-203, as provided in, as
427     applicable:
428          [(a)] (i) Title 11, Chapter 14, Local Government Bonding Act;

429          [(b)] (ii) Title 11, Chapter 27, Utah Refunding Bond Act;
430          [(c)] (iii) Title 11, Chapter 42, Assessment Area Act; and
431          [(d)] (iv) this section.
432          (b) A public infrastructure district created by a bonding political subdivision, as
433     defined in Section 63C-25-101, may not issue bonds under this part unless the board first:
434          (i) adopts a parameters resolution for the bonds that sets forth:
435          (A) the maximum:
436          (I) amount of bonds;
437          (II) term; and
438          (III) interest rate; and
439          (B) the expected security for the bonds; and
440          (ii) submits the parameters resolution for review and recommendation to the State
441     Finance Review Commission created in Section 63C-25-201.
442          (2) A public infrastructure district bond:
443          (a) shall mature within 40 years of the date of issuance; and
444          (b) may not be secured by any improvement or facility paid for by the public
445     infrastructure district.
446          (3) (a) A public infrastructure district may issue a limited tax bond, in the same manner
447     as a general obligation bond:
448          (i) with the consent of 100% of surface property owners within the boundaries of the
449     public infrastructure district and 100% of the registered voters, if any, within the boundaries of
450     the proposed public infrastructure district; or
451          (ii) upon approval of a majority of the registered voters within the boundaries of the
452     public infrastructure district voting in an election held for that purpose under Title 11, Chapter
453     14, Local Government Bonding Act.
454          (b) A limited tax bond described in Subsection (3)(a):
455          (i) is not subject to the limitation on a general obligation bond described in Subsection
456     17B-1-1102(4)(a)(xii); and
457          (ii) is subject to a limitation, if any, on the principal amount of indebtedness as
458     described in the governing document.
459          (c) Unless limited tax bonds are initially purchased exclusively by one or more

460     qualified institutional buyers as defined in Rule 144A, 17 C.F.R. Sec. 230.144A, the public
461     infrastructure district may only issue limited tax bonds in denominations of not less than
462     $500,000, and in integral multiples above $500,000 of not less than $1,000 each.
463          (d) (i) Without any further election or consent of property owners or registered voters,
464     a public infrastructure district may convert a limited tax bond described in Subsection (3)(a) to
465     a general obligation bond if the principal amount of the related limited tax bond together with
466     the principal amount of other related outstanding general obligation bonds of the public
467     infrastructure district does not exceed 15% of the fair market value of taxable property in the
468     public infrastructure district securing the general obligation bonds, determined by:
469          (A) an appraisal from an appraiser who is a member of the Appraisal Institute that is
470     addressed to the public infrastructure district or a financial institution; or
471          (B) the most recent market value of the property from the assessor of the county in
472     which the property is located.
473          (ii) The consent to the issuance of a limited tax bond described in Subsection (3)(a) is
474     sufficient to meet any statutory or constitutional election requirement necessary for the
475     issuance of the limited tax bond and any general obligation bond to be issued in place of the
476     limited tax bond upon meeting the requirements of this Subsection (3)(d).
477          (iii) A general obligation bond resulting from a conversion of a limited tax bond under
478     this Subsection (3)(d) is not subject to the limitation on general obligation bonds described in
479     Subsection 17B-1-1102(4)(a)(xii).
480          (e) A public infrastructure district that levies a property tax for payment of debt service
481     on a limited tax bond issued under this section is not required to comply with the notice and
482     hearing requirements of Section 59-2-919 unless the rate exceeds the rate established in:
483          (i) Section 17D-4-303, except as provided in Subsection (8);
484          (ii) the governing document; or
485          (iii) the documents relating to the issuance of the limited tax bond.
486          (4) There is no limitation on the duration of revenues that a public infrastructure
487     district may receive to cover any shortfall in the payment of principal of and interest on a bond
488     that the public infrastructure district issues.
489          (5) A public infrastructure district is not a municipal corporation for purposes of the
490     debt limitation of Utah Constitution, Article XIV, Section 4.

491          (6) The board may, by resolution, delegate to one or more officers of the public
492     infrastructure district the authority to:
493          (a) in accordance and within the parameters set forth in a resolution adopted in
494     accordance with Section 11-14-302, approve the final interest rate, price, principal amount,
495     maturity, redemption features, and other terms of the bond;
496          (b) approve and execute any document relating to the issuance of a bond; and
497          (c) approve any contract related to the acquisition and construction of the
498     improvements, facilities, or property to be financed with a bond.
499          (7) (a) Any person may contest the legality of the issuance of a public infrastructure
500     district bond or any provisions for the security and payment of the bond for a period of 30 days
501     after:
502          (i) publication of the resolution authorizing the bond; or
503          (ii) publication of a notice of bond containing substantially the items required under
504     Subsection 11-14-316(2).
505          (b) After the 30-day period described in Subsection (7)(a), no person may bring a
506     lawsuit or other proceeding contesting the regularity, formality, or legality of the bond for any
507     reason.
508          (8) (a) In the event of any statutory change in the methodology of assessment or
509     collection of property taxes in a manner that reduces the amounts which are devoted or pledged
510     to the repayment of limited tax bonds, a public infrastructure district may charge a rate
511     sufficient to receive the amount of property taxes or assessment the public infrastructure
512     district would have received before the statutory change in order to pay the debt service on
513     outstanding limited tax bonds.
514          (b) The rate increase described in Subsection (8)(a) may exceed the limit described in
515     Section 17D-4-303.
516          (c) The public infrastructure district may charge the rate increase described in
517     Subsection (8)(a) until the bonds, including any associated refunding bonds, or other securities,
518     together with applicable interest, are fully met and discharged.
519          (9) No later than 60 days after the closing of any bonds by a public infrastructure
520     district created by a bonding political subdivision, as defined in Section 63C-25-101, the public
521     infrastructure district shall report the bond issuance, including the amount of the bonds, terms,

522     interest rate, and security, to:
523          (a) the Executive Appropriations Committee; and
524          (b) the State Finance Review Commission created in Section 63C-25-101.
525          Section 7. Section 63B-1-305 is amended to read:
526          63B-1-305. Powers and duties of authority.
527          (1) The authority shall have perpetual succession as a body politic and corporate.
528          (2) The authority may:
529          (a) sue and to be sued in its own name;
530          (b) have, and alter at will, an official seal;
531          (c) contract with experts, advisers, consultants, and agents for needed services;
532          (d) with the prior approval of the Legislature, borrow money and issue obligations,
533     including refunding obligations;
534          (e) receive and accept aid or contributions from any source, including the United States
535     or this state, in the form of money, property, labor, or other things of value to be held, used and
536     applied to carry out the purposes of this part, subject to the conditions upon which this aid and
537     contributions are made, for any purpose consistent with this part;
538          (f) enter into agreements with any department, agency or instrumentality of the United
539     States or this state, financial institutions, or contractors for the purpose of leasing, maintaining,
540     and operating any facility;
541          (g) to the extent permitted under its contract with the holders of its obligations, consent
542     to any modification relating to rate of interest, time and payment of any installment of principal
543     or interest, security or any other term of any contract, mortgage, mortgage loan, mortgage loan
544     commitment, contract or agreement of any kind to which it is a party;
545          (h) pledge revenues from any facility to secure the payment of obligations relating to
546     that facility, including interest on obligations, and to redeem those obligations;
547          (i) cause to be executed mortgages, trust deeds, indentures, pledge agreements,
548     assignments, security agreements, and financing statements encumbering property acquired, or
549     constructed under this part;
550          (j) own, lease, operate, and encumber facilities acquired or constructed under this
551     chapter by it or the division;
552          (k) exercise the power of eminent domain;

553          (l) rent or lease any facility in whole or in part to any state body; and
554          (m) have and exercise any other powers or duties that are necessary or appropriate to
555     carry out and effectuate the purposes of this part.
556          (3) (a) The authority shall submit an annual written report of the authority's
557     proceedings to the State Finance Review Commission created in Section 63C-25-201.
558          (b) The report shall include:
559          (i) a description of any outstanding money borrowed and obligations issued by the
560     authority, including loan amounts, terms, and security;
561          (ii) facilities funded by the actions of the authority; and
562          (iii) an explanation of why the financing terms and obligations used for a facility are
563     appropriate and in the best interest of the state.
564          Section 8. Section 63B-1a-102 is amended to read:
565          63B-1a-102. Commission responsibilities -- Manner of issuance -- Plan of
566     financing -- Registration -- Signatures -- Replacement -- Reporting.
567          (1) The commission may determine by resolution:
568          (a) the manner in which bonds issued under this chapter may be authorized, sold, and
569     issued;
570          (b) to issue bonds in one or more series;
571          (c) the amounts, dates, interest rates, including a variable rate or rates, and maturity
572     dates of the bonds;
573          (d) the manner of sale, including public or private sale;
574          (e) the terms and conditions of sale, including price, whether at, below, or above face
575     value;
576          (f) the denominations, registration, exchange, form, including book-entry only, manner
577     of execution, manner of authentication, place and medium of purchase, redemption terms, and
578     tender rights of the bonds; and
579          (g) other provisions and details that it considers appropriate.
580          (2) The commission may, by resolution, adopt a plan of financing, which may include
581     terms and conditions of arrangements entered into by the commission on behalf of the state
582     with financial and other institutions for bond insurance, letters of credit, standby bond purchase
583     agreements, reimbursement agreements, and remarketing, indexing, and tender agent

584     agreements relating to the bonds, including payment from any legally available source of fees,
585     charges, or other amounts coming due under the agreements entered into by the commission.
586          (3) The commission may provide for the services and payment for the services of one
587     or more financial institutions or other entities, persons, or nominees, within or outside the state,
588     for the authentication, registration, transfer, including record, bookkeeping, or book-entry
589     functions, exchange, and payment of the bonds.
590          (4) The commission may provide for the calculation and payment to the United States
591     of whatever amounts are necessary to comply with the Internal Revenue Code.
592          (5) (a) The commission shall, by resolution, authorize a public official to sign the
593     bonds.
594          (b) That signature may be a facsimile signature of that official that is imprinted,
595     engraved, stamped, or otherwise placed on the bonds.
596          (c) If all signatures of public officials on the bonds are facsimile signatures, the
597     commission shall provide for a manual authenticating signature on the bonds by or on behalf of
598     a designated authentication agent.
599          (d) If a public official ceases to hold office before delivery of the bonds signed by that
600     official, the signature or facsimile signature of the public official is nevertheless valid for all
601     purposes.
602          (6) The commission may cause a facsimile of the state seal to be imprinted, engraved,
603     stamped, or otherwise placed on the bonds.
604          (7) The commission shall provide an annual report of its proceedings to the governor to
605     include in his budget for as long as any bonds issued under this chapter remain outstanding.
606          (8) (a) The commission shall submit an annual written report of the commission's
607     proceedings to the State Finance Review Commission created in Section 63C-25-201.
608          (b) (i) The report shall include a description of any outstanding bonds issued by the
609     authority, including loan amounts, terms, and security; and
610          (ii) an explanation of why the loan amounts and terms are appropriate for the project
611     and in the best interest of the state.
612          Section 9. Section 63H-1-104 is amended to read:
613          63H-1-104. Loan approval committee -- Approval of infrastructure loans.
614          (1) As used in this section:

615          (a) "Borrower" means the same as that term is defined in Section 63A-3-401.5.
616          (b) "Infrastructure loan" means the same as that term is defined in Section
617     63A-3-401.5.
618          (c) "Infrastructure project" means the same as that term is defined in Section
619     63A-3-401.5.
620          (d) "Military development fund" means the same as that term is defined in Section
621     63A-3-401.5.
622          (e) "Loan approval committee" means a committee consisting of:
623          (i) the board member who is appointed by the governor under Subsection
624     63H-1-302(2)(a);
625          (ii) the board member who is appointed by the governor under Subsection
626     63H-1-302(2)(c);
627          (iii) the board members who are appointed by the president of the Senate and the
628     speaker of the House of Representatives under Subsection 63H-1-302(3); and
629          (iv) a voting or nonvoting board member designated by the board.
630          (2) The loan approval committee may approve an infrastructure loan from the military
631     development fund to a borrower for an infrastructure project undertaken by the borrower.
632          (3) The loan approval committee shall establish the terms of an infrastructure loan in
633     accordance with Section 63A-3-404.
634          (4) The loan approval committee may establish policies and guidelines with respect to
635     prioritizing requests for infrastructure loans and approving infrastructure loans.
636          (5) Beginning May 5, 2021, the loan approval committee shall assume jurisdiction
637     from the State Infrastructure Bank Fund relating to the terms of a loan under Subsection
638     63B-27-101(3)(a).
639          (6) Within 60 days after the execution of an infrastructure loan, the loan approval
640     committee shall report the infrastructure loan, including the loan amount, terms, interest rate,
641     and security, to:
642          (a) the Executive Appropriations Committee[.];
643          (b) the State Finance Review Commission created in Section 63C-25-201.
644          (7) (a) A meeting of the loan approval committee does not constitute a meeting of the
645     board, even if a quorum of the board is present at a loan approval committee meeting.

646          (b) A quorum of board members present at a meeting of the loan approval committee
647     may not conduct board business at the loan approval committee meeting.
648          (8) (a) Salaries and expenses of committee members who are legislators shall be paid
649     in accordance with Section 36-2-2 and Legislative Joint Rules, Title 5, Chapter 3, Legislator
650     Compensation.
651          (b) A committee member who is not a legislator may not receive compensation or
652     benefits for the member's service on the committee, but may receive per diem and
653     reimbursement for travel expenses incurred as a committee member at the rates established by
654     the Division of Finance under:
655          (i) Sections 63A-3-106 and 63A-3-107; and
656          (ii) rules made by the Division of Finance pursuant to Sections 63A-3-106 and
657     63A-3-107.
658          Section 10. Section 63H-1-601 is amended to read:
659          63H-1-601. Resolution authorizing issuance of authority bonds -- Characteristics
660     of bonds.
661          (1) The authority may not issue bonds under this part unless the authority board first:
662          (a) adopts a parameters resolution [authorizing their issuance.] that sets forth:
663          (i) the maximum:
664          (A) amount of the bonds;
665          (B) term; and
666          (C) interest rate; and
667          (ii) the expected security for the bonds; and
668          (b) submits the parameters resolution for review and recommendation to the State
669     Finance Review Commission created in Section 63C-25-201.
670          (2) (a) As provided in the authority resolution authorizing the issuance of bonds under
671     this part or the trust indenture under which the bonds are issued, bonds issued under this part
672     may be issued in one or more series and may be sold at public or private sale and in the manner
673     provided in the resolution or indenture.
674          (b) Bonds issued under this part shall bear the date, be payable at the time, bear interest
675     at the rate, be in the denomination and in the form, carry the conversion or registration
676     privileges, have the rank or priority, be executed in the manner, be subject to the terms of

677     redemption or tender, with or without premium, be payable in the medium of payment and at
678     the place, and have other characteristics as provided in the authority resolution authorizing
679     their issuance or the trust indenture under which they are issued.
680          (3) Upon the board's adoption of a resolution providing for the issuance of bonds, the
681     board may provide for the publication of the resolution:
682          (a) in a newspaper having general circulation in the authority's boundaries; and
683          (b) as required in Section 45-1-101.
684          (4) In lieu of publishing the entire resolution, the board may publish notice of bonds
685     that contains the information described in Subsection 11-14-316(2).
686          (5) For a period of 30 days after the publication, any person in interest may contest:
687          (a) the legality of the resolution or proceeding;
688          (b) any bonds that may be authorized by the resolution or proceeding; or
689          (c) any provisions made for the security and payment of the bonds.
690          (6) (a) A person may contest the matters set forth in Subsection (5) by filing a verified
691     written complaint, within 30 days of the publication under Subsection (5), in the district court
692     of the county in which the person resides.
693          (b) A person may not contest the matters set forth in Subsection (5), or the regularity,
694     formality, or legality of the resolution or proceeding, for any reason, after the 30-day period for
695     contesting provided in Subsection (6)(a).
696          (7) No later than 60 days after the closing day of any bonds, the authority shall report
697     the bonds issuance, including the amount of the bonds, terms, interest rate, and security, to:
698          (a) the Executive Appropriations Committee; and
699          (b) the State Finance Review Commission created in Section 63C-25-201.
700          Section 11. Section 63C-25-101 is enacted to read:
701     
CHAPTER 25. STATE FINANCE REVIEW COMMISSION

702     
Part 1. General Provisions

703          63C-25-101. Definitions.
704          As used in this chapter:
705          (1) "Authority" means the same as that term is defined in Section 63B-1-303.
706          (2) "Bond" means the same as that term is defined in Section 63B-1-101.
707          (3) "Bonding political subdivision" means:

708          (a) the Utah Inland Port Authority, created in Section 11-58-201;
709          (b) the Military Installation Development Authority, created in Section 63H-1-201; or
710          (c) the Point of the Mountain State Land Authority, created in Section 11-59-201.
711          (4) "Commission" means the State Finance Review Commission created in Section
712     63C-25-201.
713          (5) "Concessionaire" means a person who:
714          (a) operates, finances, maintains, or constructs a government facility under a contract
715     with a bonding political subdivision; and
716          (b) is not a bonding political subdivision.
717          (6) "Creating entity" means the same as that term is defined in Section 17D-4-102.
718          (7) "Government facility" means infrastructure, improvements, or a building that:
719          (a) costs more than $5,000,000 to construct; and
720          (b) has a useful life greater than five years.
721          (8) "Large public transit district" means the same as that term is defined in Section
722     17B-2a-802.
723          (9) "Loan entity" means the board, person, unit, or agency with legal responsibility for
724     making a loan from a revolving loan fund.
725          (10) "Obligation" means the same as that term is defined in Section 63B-1-303.
726          (11) "Parameters resolution" means a resolution of a bonding political subdivision, or
727     public infrastructure district created by a bonding political subdivision, that sets forth for
728     proposed bonds:
729          (a) the maximum:
730          (i) amount of bonds;
731          (ii) term; and
732          (iii) interest rate; and
733          (b) the expected security for the bonds.
734          (12) "Public infrastructure district" means a public infrastructure district created under
735     Title 17D, Chapter 4, Public Infrastructure District Act.
736          (13) "Public-private partnership" means a contract:
737          (a) between a bonding political subdivision and a concessionaire for the operation,
738     finance, maintenance, or construction of a government facility;

739          (b) that authorizes the concessionaire to operate the government facility for a term of
740     five years or longer, including any extension of the contract; and
741          (c) in which all or some of the annual source of payment to the concessionaire comes
742     from state funds provided to the bonding political subdivision.
743          (14) "Revolving loan fund" means:
744          (a) the Water Resources Conservation and Development Fund, created in Section
745     73-10-24;
746          (b) the Water Resources Construction Fund, created in Section 73-10-8;
747          (c) the Water Resources Cities Water Loan Fund, created in Section 73-10-22;
748          (d) the Clean Fuel Conversion Funds, created in Title 19, Chapter 1, Part 4, Clean
749     Fuels and Vehicle Technology Program Act;
750          (e) the Water Development Security Fund and its subaccounts, created in Section
751     73-10c-5;
752          (f) the Agriculture Resource Development Fund, created in Section 4-18-106;
753          (g) the Utah Rural Rehabilitation Fund, created in Section 4-19-105;
754          (h) the Permanent Community Impact Fund, created in Section 35A-8-303;
755          (i) the Petroleum Storage Tank Trust Fund, created in Section 19-6-409;
756          (j) the School Building Revolving Account, created in Section 53F-9-206;
757          (k) the State Infrastructure Bank Fund, created in Section 72-2-202;
758          (l) the Uintah Basin Revitalization Fund, created in Section 35A-8-1602;
759          (m) the Navajo Revitalization Fund, created in Section 35A-8-1704;
760          (n) the Energy Efficiency Fund, created in Section 11-45-201;
761          (o) the Brownfields Fund, created in Section 19-8-120;
762          (p) the following enterprise revolving loan funds created in Section 63A-3-402:
763          (i) the inland port infrastructure revolving loan fund;
764          (ii) the point of the mountain infrastructure revolving loan fund; or
765          (iii) the military development infrastructure revolving loan fund; and
766          (q) any other revolving loan fund created in statute where the borrower from the
767     revolving loan fund is a public non-profit entity or political subdivision, including a fund listed
768     in Section 63A-3-205, from which a loan entity is authorized to make a loan.
769          (15) (a) "State funds" means an appropriation by the Legislature identified as coming

770     from the General Fund or Education Fund.
771          (b) "State funds" does not include:
772          (i) a revolving loan fund; or
773          (ii) revenues received by a bonding political subdivision from:
774          (A) a tax levied by the bonding political subdivision;
775          (B) a fee assessed by the bonding political subdivision; or
776          (C) operation of the bonding political subdivision's government facility.
777          Section 12. Section 63C-25-201 is enacted to read:
778     
Part 2. State Finance Review Commission

779          63C-25-201. State Finance Review Commission.
780          (1) There is created the State Finance Review Commission.
781          (2) The commission shall:
782          (a) as described in this part, approve, review, make recommendations, and monitor
783     borrowing and lending practices and activities; and
784          (b) exercise the powers and perform other duties prescribed for the commission by
785     statute.
786          (3) The commission shall consist of:
787          (a) seven voting members as follows:
788          (i) the state treasurer;
789          (ii) the state auditor or the auditor's designee;
790          (iii) the attorney general or the attorney general's designee;
791          (iv) the director of the Division of Finance or the director's designee;
792          (v) the director of the Governor's Office of Planning and Budget or the director's
793     designee; and
794          (vi) two individuals with a background in debt management, finance, or other similar
795     expertise who are:
796          (A) after consultation with the state treasurer, appointed by the governor; and
797          (B) confirmed by the Senate; and
798          (b) the state's financial advisor described in Section 67-4-16, who is a nonvoting
799     member.
800          (4) (a) Each position described in Subsection (3)(a)(vi) is for a term of four years.

801          (b) When a position described in Subsection (3)(a)(vi) is vacant for any reason, the
802     governor shall appoint the replacement, with confirmation of the Senate, for the remainder of
803     the unexpired term.
804          (5) The state treasurer shall serve as chair of the commission.
805          (6) A majority of the commission members constitute a quorum and may act on behalf
806     of the commission.
807          (7) The commission shall meet as necessary to effectively conduct the commission's
808     business and duties as prescribed by statute.
809          (8) (a) A commission member may not receive compensation or benefits for the
810     commission member's service.
811          (b) A commission member may receive per diem and travel expenses in accordance
812     with:
813          (i) Section 63A-3-106;
814          (ii) Section 63A-3-107; and
815          (iii) rules made by the Division of Finance in accordance with Sections 63A-3-106 and
816     63A-3-107.
817          (9) The state treasurer's office shall provide staff support to facilitate the function of
818     the commission and record commission action and recommendations.
819          (10) The commission shall comply with the provisions of Title 52, Chapter 4, Open
820     and Public Meetings Act.
821          Section 13. Section 63C-25-202 is enacted to read:
822          63C-25-202. Powers and duties.
823          (1) The commission shall annually review a report provided in accordance with Section
824     63B-1-305 or 63B-1a-102.
825          (2) (a) A loan entity other than a loan entity described in Subsection (2)(b) shall no
826     later than January 1 of each year submit information on each revolving loan fund from which
827     the loan entity made a loan in the previous fiscal year, including information identifying new
828     and ongoing loan recipients, the terms of each loan, loan repayment, and any other information
829     regarding a revolving loan fund requested by the commission.
830          (b) If a loan entity is:
831          (i) the Utah Inland Port Authority, the loan entity shall submit the information in

832     accordance with Section 11-58-106 and any other information regarding a revolving loan fund
833     requested by the commission;
834          (ii) the Point of the Mountain State Land Authority, the loan entity shall submit the
835     information in accordance with Section 11-59-104 and any other information regarding a
836     revolving loan fund requested by the commission; or
837          (iii) the Military Installation Development Authority, the loan entity shall submit the
838     information in accordance with Section 63H-1-104 and any other information regarding a
839     revolving loan fund requested by the commission.
840          (c) The commission may annually review and provide feedback for the following:
841          (i) each loan entity for compliance with state law authorizing and regulating the
842     revolving loan fund, including, as applicable, Title 11, Chapter 14, Local Government Bonding
843     Act;
844          (ii) each loan entity's revolving loan fund policies and practices, including policies and
845     practices for approving and setting the terms of a loan; and
846          (iii) each borrower of funds from a revolving loan fund for accurate and timely
847     reporting by the borrower to the appropriate debt repository.
848          (3) (a) The commission shall review and may approve a bond before a large public
849     transit district may issue a bond.
850          (b) The commission may not approve issuance of a bond described in Subsection (3)(a)
851     unless:
852          (i) the execution and terms of the bond comply with state law; and
853          (ii) the commission determines the bond is in the best interest of the large public transit
854     district.
855          (c) If, after review, the commission approves a bond described in Subsection (3)(a), the
856     large public transit district:
857          (i) may not change before issuing the bond the terms of the bond that were reviewed by
858     the commission if the change is outside the approved parameters and intended purposes; and
859          (ii) is under no obligation to issue the bond.
860          (d) A member of the commission who approves a bond under Subsection (3)(a) or
861     reviews a parameters resolution under Subsection (4)(a) is not liable personally on the bond.
862          (e) The approval of a bond under Subsection (3)(a) or review under Subsection (4)(a)

863     of a parameters resolution by the commission:
864          (i) is not an obligation of the state; and
865          (ii) is not an act that:
866          (A) lends the state's credit; or
867          (B) constitutes indebtedness within the meaning of any constitutional or statutory debt
868     limitation.
869          (4) (a) The commission shall review and, at the commission's discretion, may make
870     recommendations regarding a parameters resolution before:
871          (i) a bonding political subdivision may issue a bond; or
872          (ii) a public infrastructure district may issue a bond, if the creating entity of the public
873     infrastructure district is a bonding political subdivision.
874          (b) The commission shall conduct the review under Subsection (4)(a) and forward any
875     recommendations to the bonding political subdivision or public infrastructure district no later
876     than 45 days after the day on which the commission receives the bonding political subdivision's
877     or public infrastructure district's parameters resolution.
878          (c) Notwithstanding Subsection (4)(a), if the commission fails to review a parameters
879     resolution or forward recommendations, if any, in the timeframe described in Subsection
880     (4)(b), the bonding political subdivision or public infrastructure district, respectively, may
881     proceed with the bond without review by the commission.
882          (d) After review by the commission under Subsection (4)(a), the bonding political
883     subdivision or public infrastructure district:
884          (i) shall consider recommendations by the commission; and
885          (ii) may proceed with the bond but is under no obligation to issue the bond.
886          (5) The commission shall provide training and other information on debt management,
887     lending and borrowing best practices, and compliance with state law to the authority, a bonding
888     political subdivision, a large public transit district, and a loan entity.
889          (6) (a) If a public-private partnership contemplates payments from state funds, the
890     commission shall review and may approve the public-private partnership before a bonding
891     political subdivision may enter into the public-private partnership.
892          (b) If, after review, the commission approves the public-private partnership described
893     in Subsection (6)(a), the bonding political subdivision:

894          (i) may not change the terms of the public-private partnership if the change is outside
895     the approved parameters and intended purposes; and
896          (ii) is under no obligation to enter into the public-private partnership.
897          Section 14. Section 63C-25-203 is enacted to read:
898          63C-25-203. Debt affordability report.
899          (1) No later than November 1 each year, the state treasurer, with assistance from the
900     Governor's Office of Planning and Budget and the Office of the Legislative Fiscal Analyst,
901     shall prepare and submit a debt affordability report to the commission and the Revenue and
902     Taxation Interim Committee.
903          (2) The debt affordability report shall include:
904          (a) as determined by the state treasurer, the amount of tax-supported debt that, during
905     the next fiscal year and annually for the following nine fiscal years:
906          (i) will be outstanding; and
907          (ii) has been authorized but is not yet issued;
908          (b) a projected schedule of affordable, state tax-supported debt authorizations for the
909     next fiscal year;
910          (c) projected debt-service requirements during the next fiscal year and annually for the
911     following nine fiscal years based upon:
912          (i) existing outstanding debt;
913          (ii) previously authorized but unissued debt; and
914          (iii) projected bond authorizations;
915          (d) the criteria that recognized bond rating agencies use to judge the quality of issues of
916     bonds issued by the state; and
917          (e) any other information that is relevant to:
918          (i) the state's ability to meet its projected debt service requirements;
919          (ii) the ability of the state to support additional debt service;
920          (iii) the interest rate to be borne by, the credit rating on, or any other factor affecting
921     the marketability of state bonds; and
922          (iv) the effect of authorizing new tax-supported debt on each of the considerations
923     described in this Subsection (2).
924          Section 15. Section 63N-13-306 is amended to read:

925          63N-13-306. Limits on application of this part.
926          (1) Nothing in this part:
927          [(1)] (a) requires a government entity to use the facilitator to explore the possibility of
928     filling a public need through a public-private partnership; or
929          [(2)] (b) limits the ability of a government entity to directly:
930          [(a)] (i) solicit a public-private partnership; or
931          [(b)] (ii) respond to a private person exploring an investment opportunity in a public
932     project through a public-private partnership.
933          (2) (a) As used in this Subsection (2):
934          (i) "Bonding political subdivision" means the same as that term is defined in Section
935     63C-25-101.
936          (ii) "Public-private partnership" means the same as that term is defined in Section
937     63C-25-101.
938          (b) A facilitator shall inform a bonding political subdivision that is contemplating
939     entering into a public-private partnership that the bonding political subdivision may not enter
940     into the public-private partnership unless the bonding political subdivision first receives
941     approval from the State Finance Review Commission in accordance with Section 63C-25-202.
942          Section 16. Coordinating H.B. 82 with H.B. 232 -- Substantive and technical
943     amendments.
944          If this H.B. 82 and H.B. 232, Utah Lake Authority, both pass and become law, it is the
945     intent of the Legislature that the Office of Legislative Research and General Counsel shall
946     prepare the Utah Code database for publication by making the following changes:
947          (1) modify Subsection 11-65-501(1) to read:
948          "(1) The lake authority may not issue bonds under this part unless the board first:
949          (a) adopts a parameters resolution for the bonds that sets forth:
950          (i) the maximum:
951          (A) amount of bonds;
952          (B) term; and
953          (C) interest rate; and
954          (ii) the expected security for the bonds; and
955          (b) submits the parameters resolution for review and recommendation to the State

956     Finance Review Commission created in Section 63C-25-201.";
957          (2) enact a new Subsection 11-65-501(7) to read:
958          "(7) No later than 60 days after the closing day of any bonds, the authority shall report
959     the bonds issuance, including amount of the bonds, terms, interest rate, and security, to:
960          (a) the Executive Appropriations Committee; and
961          (b) the State Finance Review Commission created in Section 63C-25-201."; and
962          (3) modify Subsection 63C-25-101(3) to read:
963          "(3) "Bonding political subdivision" means:
964          (a) the Utah Inland Port Authority, created in Section 11-58-201;
965          (b) the Military Installation Development Authority, created in Section 63H-1-201;
966          (c) the Point of the Mountain State Land Authority, created in Section 11-59-201; or
967          (d) the Utah Lake Authority, created in Section 11-65-201.".