Rep. Norm Thurston — Voting Record

Bill

Number

H.B. 381 (2023GS)

Sponsor

Rep. Stenquist, J.

Final action

House/ to Governor 3/13/2023

Outcome

House/ to Governor

Summary

What it does

• This bill:
• modifies definitions;
• requires that any entity with bonding authority obtain the approval of the State Finance Review Commission before entering into certain concessionaire agreements; and
• makes technical corrections.

Every vote on this bill

Bill text

STATE FINANCE REVIEW COMMISSION AMENDMENTS
GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Jeffrey D. Stenquist
Senate Sponsor: 
 Jerry W. Stevenson
LONG TITLE
General Description:
This bill modifies provisions related to the State Finance Review Commission and
bonding requirements.
Highlighted Provisions:
This bill:
▸ modifies definitions;
▸ requires that any entity with bonding authority obtain the approval of the State
Finance Review Commission before entering into certain concessionaire
agreements; and
▸ makes technical corrections.
Money Appropriated in this Bill:
None
Other Special Clauses:
None
Utah Code Sections Affected:
AMENDS:
63C-25-101
, as enacted by Laws of Utah 2022, Chapter 207 and last amended by
Coordination Clause, Laws of Utah 2022, Chapter 207
63C-25-202
, as enacted by Laws of Utah 2022, Chapter 207
63N-13-302
, as last amended by Laws of Utah 2022, Chapter 240
63N-13-306
, as last amended by Laws of Utah 2022, Chapters 207, 240
Be it enacted by the Legislature of the state of Utah:
Section 1. Section 
63C-25-101
 is amended to read:
63C-25-101.
Definitions.
As used in this chapter:
(1) "Authority" means the same as that term is defined in Section 
63B-1-303
.
(2) "Bond" means the same as that term is defined in Section 
63B-1-101
.
(3) (a) "Bonding government entity" means the state or any entity that is authorized to
issue bonds under any provision of state law.
(b) "Bonding government entity" includes:
(i) a bonding political subdivision; and
(ii) a public infrastructure district that is authorized to issue bonds either directly, or
through the authority of a bonding political subdivision or other governmental entity.
[
(3)
] 
(4)
 "Bonding political subdivision" means:
(a) the Utah Inland Port Authority, created in Section 
11-58-201
;
(b) the Military Installation Development Authority, created in Section 
63H-1-201
;
(c) the Point of the Mountain State Land Authority, created in Section 
11-59-201
; or
(d) the Utah Lake Authority, created in Section 
11-65-201
.
[
(4)
] 
(5)
 "Commission" means the State Finance Review Commission created in
Section 
63C-25-201
.
[
(5)
] 
(6)
 "Concessionaire" means a person who:
(a) operates, finances, maintains, or constructs a government facility under a contract
with a bonding political subdivision; and
(b) is not a bonding [
political subdivision
] 
government entity
.
(7) "Concessionaire contract" means a contract:
(a) between a bonding government entity and a concessionaire for the operation,
finance, maintenance, or construction of a government facility;
(b) that authorizes the concessionaire to operate the government facility for a term of
five years or longer, including any extension of the contract; and
(c) in which all or some of the annual source of payment to the concessionaire comes
from state funds provided to the bonding government entity.
[
(6)
] 
(8)
 "Creating entity" means the same as that term is defined in Section
17D-4-102
.
[
(7)
] 
(9)
 "Government facility" means infrastructure, improvements, or a building that:
(a) costs more than $5,000,000 to construct; and
(b) has a useful life greater than five years.
[
(8)
] 
(10)
 "Large public transit district" means the same as that term is defined in
Section 
17B-2a-802
.
[
(9)
] 
(11)
 "Loan entity" means the board, person, unit, or agency with legal
responsibility for making a loan from a revolving loan fund.
[
(10)
] 
(12)
 "Obligation" means the same as that term is defined in Section 
63B-1-303
.
[
(11)
] 
(13)
 "Parameters resolution" means a resolution of a bonding [
political
subdivision, or public infrastructure district created by a bonding political subdivision,
]
government entity
 that sets forth for proposed bonds:
(a) the maximum:
(i) amount of bonds;
(ii) term; and
(iii) interest rate; and
(b) the expected security for the bonds.
[
(12)
] 
(14)
 "Public infrastructure district" means a public infrastructure district created
under Title 17D, Chapter 4, Public Infrastructure District Act.
[
(13) "Public-private partnership" means a contract:
]
[
(a) between a bonding political subdivision and a concessionaire for the operation,
finance, maintenance, or construction of a government facility;
]
[
(b) that authorizes the concessionaire to operate the government facility for a term of
five years or longer, including any extension of the contract; and
]
[
(c) in which all or some of the annual source of payment to the concessionaire comes
from state funds provided to the bonding political subdivision.
]
[
(14)
] 
(15)
 "Revolving loan fund" means:
(a) the Water Resources Conservation and Development Fund, created in Section
73-10-24
;
(b) the Water Resources Construction Fund, created in Section 
73-10-8
;
(c) the Water Resources Cities Water Loan Fund, created in Section 
73-10-22
;
(d) the Clean Fuel Conversion Funds, created in [
Title 19, Chapter 1, Part 4, Clean
Fuels and Vehicle Technology Program Act
] 
Title 19, Chapter 1, Part 4, Clean Fuels and
Emission Reduction Technology Program Act
;
(e) the Water Development Security Fund and its subaccounts, created in Section
73-10c-5
;
(f) the Agriculture Resource Development Fund, created in Section 
4-18-106
;
(g) the Utah Rural Rehabilitation Fund, created in Section 
4-19-105
;
(h) the Permanent Community Impact Fund, created in Section 
35A-8-303
;
(i) the Petroleum Storage Tank Fund, created in Section 
19-6-409
;
(j) the School Building Revolving Account, created in Section 
53F-9-206
;
(k) the State Infrastructure Bank Fund, created in Section 
72-2-202
;
(l) the Uintah Basin Revitalization Fund, created in Section 
35A-8-1602
;
(m) the Navajo Revitalization Fund, created in Section 
35A-8-1704
;
(n) the Energy Efficiency Fund, created in Section 
11-45-201
;
(o) the Brownfields Fund, created in Section 
19-8-120
;
(p) the following enterprise revolving loan funds created in Section 
63A-3-402
:
(i) the inland port infrastructure revolving loan fund;
(ii) the point of the mountain infrastructure revolving loan fund; or
(iii) the military development infrastructure revolving loan fund; and
(q) any other revolving loan fund created in statute where the borrower from the
revolving loan fund is a public non-profit entity or political subdivision, including a fund listed
in Section 
63A-3-205
, from which a loan entity is authorized to make a loan.
[
(15)
] 
(16)
 (a) "State funds" means an appropriation by the Legislature identified as
coming from the General Fund or Education Fund.
(b) "State funds" does not include:
(i) a revolving loan fund; or
(ii) revenues received by a bonding political subdivision from:
(A) a tax levied by the bonding political subdivision;
(B) a fee assessed by the bonding political subdivision; or
(C) operation of the bonding political subdivision's government facility.
Section 2. Section 
63C-25-202
 is amended to read:
63C-25-202.
Powers and duties.
(1) The commission shall annually review a report provided in accordance with Section
63B-1-305
 or 
63B-1a-102
.
(2) (a) A loan entity other than a loan entity described in Subsection (2)(b) shall no
later than January 1 of each year submit information on each revolving loan fund from which
the loan entity made a loan in the previous fiscal year, including information identifying new
and ongoing loan recipients, the terms of each loan, loan repayment, and any other information
regarding a revolving loan fund requested by the commission.
(b) If a loan entity is:
(i) the Utah Inland Port Authority, the loan entity shall submit the information in
accordance with Section 
11-58-106
 and any other information regarding a revolving loan fund
requested by the commission;
(ii) the Point of the Mountain State Land Authority, the loan entity shall submit the
information in accordance with Section 
11-59-104
 and any other information regarding a
revolving loan fund requested by the commission; or
(iii) the Military Installation Development Authority, the loan entity shall submit the
information in accordance with Section 
63H-1-104
 and any other information regarding a
revolving loan fund requested by the commission.
(c) The commission may annually review and provide feedback for the following:
(i) each loan entity for compliance with state law authorizing and regulating the
revolving loan fund, including, as applicable, Title 11, Chapter 14, Local Government Bonding
Act;
(ii) each loan entity's revolving loan fund policies and practices, including policies and
practices for approving and setting the terms of a loan; and
(iii) each borrower of funds from a revolving loan fund for accurate and timely
reporting by the borrower to the appropriate debt repository.
(3) (a) The commission shall review and may approve a bond before a large public
transit district may issue a bond.
(b) The commission may not approve issuance of a bond described in Subsection (3)(a)
unless the execution and terms of the bond comply with state law.
(c) If, after review, the commission approves a bond described in Subsection (3)(a), the
large public transit district:
(i) may not change before issuing the bond the terms of the bond that were reviewed by
the commission if the change is outside the approved parameters and intended purposes; and
(ii) is under no obligation to issue the bond.
(d) A member of the commission who approves a bond under Subsection (3)(a) or
reviews a parameters resolution under Subsection (4)(a) is not liable personally on the bond.
(e) The approval of a bond under Subsection (3)(a) or review under Subsection (4)(a)
of a parameters resolution by the commission:
(i) is not an obligation of the state; and
(ii) is not an act that:
(A) lends the state's credit; or
(B) constitutes indebtedness within the meaning of any constitutional or statutory debt
limitation.
(4) (a) The commission shall review and, at the commission's discretion, may make
recommendations regarding a parameters resolution before:
(i) a bonding political subdivision may issue a bond; or
(ii) a public infrastructure district may issue a bond, if the creating entity of the public
infrastructure district is a bonding political subdivision.
(b) The commission shall conduct the review under Subsection (4)(a) and forward any
recommendations to the bonding political subdivision or public infrastructure district no later
than 45 days after the day on which the commission receives the bonding political subdivision's
or public infrastructure district's parameters resolution.
(c) Notwithstanding Subsection (4)(a), if the commission fails to review a parameters
resolution or forward recommendations, if any, in the timeframe described in Subsection
(4)(b), the bonding political subdivision or public infrastructure district, respectively, may
proceed with the bond without review by the commission.
(d) After review by the commission under Subsection (4)(a), the bonding political
subdivision or public infrastructure district:
(i) shall consider recommendations by the commission; and
(ii) may proceed with the bond but is under no obligation to issue the bond.
(5) The commission shall provide training and other information on debt management,
lending and borrowing best practices, and compliance with state law to the authority, a bonding
political subdivision, a large public transit district, and a loan entity.
(6) (a) [
If a public-private partnership contemplates payments from state funds, the
commission shall review and may approve the public-private partnership before a bonding
political subdivision may enter into the public-private partnership.
] 
Before a bonding
government entity may enter into a concessionaire contract, the commission shall review and
approve the concessionaire contract.
(b) If, after review, the commission approves the [
public-private partnership described
in Subsection (6)(a)
] 
concessionaire contract
, the bonding [
political subdivision
] 
government
entity
:
(i) may not change the terms of the [
public-private partnership
] 
concessionaire contract
if the change is outside [
the
] 
of:
(A) any applicable
 approved parameters [
and
] 
of the concessionaire contract; or
(B) the
 intended purposes 
of the concessionaire contract
; and
(ii) is under no obligation to enter into the [
public-private partnership
] 
concessionaire
contract
.
Section 3. Section 
63N-13-302
 is amended to read:
63N-13-302.
Definitions.
As used in this part:
(1) 
"Bonding government entity" means the same as that term is defined in Section
63C-25-101
.
(2) "Concessionaire contract" means the same as that term is defined in Section
63C-25-101
.
(3)
 "Facilitator" means:
(a) the office, if the office chooses to perform itself the functions and responsibilities
described in Section 
63N-13-304
; or
(b) a person engaged by the office to perform the functions and responsibilities
described in Section 
63N-13-304
, if the office chooses to have those functions and
responsibilities performed by a person other than the office.
[
(2)
] 
(4)
 "Government entity" means:
(a) the state or any department, division, agency, or other instrumentality of the state;
or
(b) a political subdivision of the state.
[
(3)
] 
(5)
 "Public-private partnership" means an arrangement or agreement between a
government entity and one or more private persons to fund and provide for a public need
through the development or operation of a public project in which the private person or persons
share with the government entity the responsibility or risk of developing, owning, maintaining,
financing, or operating the project.
Section 4. Section 
63N-13-306
 is amended to read:
63N-13-306.
Limits on application of this part -- Concessionaire contract.
(1) Nothing in this part:
(a) requires a government entity to use the facilitator to explore the possibility of filling
a public need through a public-private partnership; or
(b) limits the ability of a government entity to directly:
(i) solicit a public-private partnership; or
(ii) respond to a private person exploring an investment opportunity in a public project
through a public-private partnership.
[
(2) (a) As used in this Subsection (2):
]
[
(i) "Bonding political subdivision" means the same as that term is defined in Section
63C-25-101
.
]
[
(ii) "Public-private partnership" means the same as that term is defined in Section
63C-25-101
.
]
[
(b)
] 
(2)
 A facilitator shall inform a bonding [
political subdivision
] 
government entity
that is contemplating entering into a [
public-private partnership
] 
concessionaire contract
 that
the bonding [
political subdivision
] 
government entity
 may not enter into the [
public-private
partnership
] 
concessionaire contract
 unless the bonding [
political subdivision
] 
government
entity
 first receives approval from the State Finance Review Commission in accordance with
Section 
63C-25-202
.
(3) A government entity anticipating the possibility of entering 
into
 a public-private
partnership 
or a concessionaire contract
 is encouraged to consult with and take advantage of the
expertise of the facilitator as the government entity determines:
(a) whether to enter 
into
 the public-private partnership 
or the concessionaire contract
;
and
(b) the best way to structure the public-private partnership 
or the concessionaire
contract
.