63C-25 - State Finance Review Commission

Title 63C > 63C-25

Sections (4)

General Provisions

63C-25-101 - Definitions.

As used in this chapter: 63C-25-101(1) “Authority” means the same as that term is defined in Section 63B-1-303. 63C-25-101(2) “Bond” means the same as that term is defined in Section 63B-1-101. 63C-25-101(3) “Bonding government entity” means the state or any entity that is authorized to issue bonds under any provision of state law.”Bonding government entity” includes:a bonding political subdivision; anda public infrastructure district that is authorized to issue bonds either directly, or through the authority of a bonding political subdivision or other governmental entity. 63C-25-101(4) “Bonding political subdivision” means:the Utah Inland Port Authority, created in Section 11-58-201;the Military Installation Development Authority, created in Section 63H-1-201;the Point of the Mountain State Land Authority, created in Section 11-59-201;the Utah Lake Authority, created in Section 11-65-201; the State Fair Park Authority, created in Section 11-68-201; orthe Utah Fairpark Area Investment and Restoration District, created in Section 11-70-201. 63C-25-101(5) “Commission” means the State Finance Review Commission created in Section 63C-25-201. 63C-25-101(6) “Concessionaire” means a person who:operates, finances, maintains, or constructs a government facility under a contract with a bonding political subdivision; andis not a bonding government entity. 63C-25-101(7) “Concessionaire contract” means a contract:between a bonding government entity and a concessionaire for the operation, finance, maintenance, or construction of a government facility;that authorizes the concessionaire to operate the government facility for a term of five years or longer, including any extension of the contract; andin which all or some of the annual source of payment to the concessionaire comes from state funds provided to the bonding government entity. 63C-25-101(8) “Creating entity” means the same as that term is defined in Section 17D-4-102. 63C-25-101(9) “Government facility” means infrastructure, improvements, or a building that:costs more than $5,000,000 to construct; andhas a useful life greater than five years. 63C-25-101(10) “Large public transit district” means the same as that term is defined in Section 17B-2a-802. 63C-25-101(11) “Loan entity” means the board, person, unit, or agency with legal responsibility for making a loan from a revolving loan fund. 63C-25-101(12) “Obligation” means the same as that term is defined in Section 63B-1-303. 63C-25-101(13) “Parameters resolution” means a resolution of a bonding government entity that sets forth for proposed bonds:the maximum:amount of bonds;term; andinterest rate; andthe expected security for the bonds. 63C-25-101(14) “Public infrastructure district” means a public infrastructure district created under Title 17D, Chapter 4, Public Infrastructure District Act. 63C-25-101(15) “Revolving loan fund” means:the Water Resources Conservation and Development Fund, created in Section 73-10-24;the Water Resources Construction Fund, created in Section 73-10-8;the Clean Fuel Conversion Funds, created in Title 19, Chapter 1, Part 4, Clean Fuels and Emission Reduction Technology Program Act;the Water Development Security Fund and its subaccounts, created in Section 73-10c-5;the Agriculture Resource Development Fund, created in Section 4-18-106;the Utah Rural Rehabilitation Fund, created in Section 4-19-105;the Permanent Community Impact Fund, created in Section 35A-8-303;the Petroleum Storage Tank Fund, created in Section 19-6-409;the School Building Revolving Account, created in Section 53F-9-206;the State Infrastructure Bank Fund, created in Section 72-2-202;the Uintah Basin Revitalization Fund, created in Section 35A-8-1602;the Navajo Revitalization Fund, created in Section 35A-8-1704;the Energy Efficiency Fund, created in Section 11-45-201;the Brownfields Fund, created in Section 19-8-120;any of the enterprise revolving loan funds created in Section 63A-3-402: andany 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. 63C-25-101(16) “State funds” means an appropriation by the Legislature identified as coming from the General Fund or Education Fund.”State funds” does not include:a revolving loan fund; orrevenues received by a bonding political subdivision from:a tax levied by the bonding political subdivision;a fee assessed by the bonding political subdivision; oroperation of the bonding political subdivision’s government facility.

State Finance Review Commission

63C-25-201 - State Finance Review Commission.

63C-25-201(1) There is created the State Finance Review Commission. 63C-25-201(2) The commission shall:

as described in this part, approve, review, make recommendations, and monitor borrowing and lending practices and activities; and exercise the powers and perform other duties prescribed for the commission by statute. 63C-25-201(3) The commission shall consist of:

seven voting members as follows: the state treasurer; the state auditor or the auditor’s designee; the attorney general or the attorney general’s designee; the director of the Division of Finance or the director’s designee; the director of the Governor’s Office of Planning and Budget or the director’s designee; and two individuals with a background in debt management, finance, or other similar expertise who are:

after consultation with the state treasurer, appointed by the governor; and confirmed by the Senate; and the state’s financial advisor described in Section 67-4-16, who is a nonvoting member. 63C-25-201(4) Each position described in Subsection (3)(a)(vi) is for a term of four years. When a position described in Subsection (3)(a)(vi) is vacant for any reason, the governor shall appoint the replacement, with confirmation of the Senate, for the remainder of the unexpired term. 63C-25-201(5) The state treasurer shall serve as chair of the commission. 63C-25-201(6) A majority of the commission members constitute a quorum and may act on behalf of the commission. 63C-25-201(7) The commission shall meet as necessary to effectively conduct the commission’s business and duties as prescribed by statute. 63C-25-201(8) A commission member may not receive compensation or benefits for the commission member’s service. A commission member may receive per diem and travel expenses in accordance with: Section 63A-3-106; Section 63A-3-107; and rules made by the Division of Finance in accordance with Sections 63A-3-106 and 63A-3-107. 63C-25-201(9) The state treasurer’s office shall provide staff support to facilitate the function of the commission and record commission action and recommendations. 63C-25-201(10) The commission shall comply with the provisions of Title 52, Chapter 4, Open and Public Meetings Act.

63C-25-202 - Powers and duties.

63C-25-202(1) The commission shall annually review a report provided in accordance with Section 63B-1-305 or 63B-1a-102. 63C-25-202(2) 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.If a loan entity is: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;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; the Utah Fairpark Area Investment and Restoration District, the loan entity shall submit the information in accordance with Section 11-70-104 and any other information regarding a revolving loan fund requested by the commission; orthe 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.The commission may annually review and provide feedback for the following: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;each loan entity’s revolving loan fund policies and practices, including policies and practices for approving and setting the terms of a loan; andeach borrower of funds from a revolving loan fund for accurate and timely reporting by the borrower to the appropriate debt repository. 63C-25-202(3) The commission shall review and may approve a bond before a large public transit district may issue a bond.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.If, after review, the commission approves a bond described in Subsection (3)(a), the large public transit district: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; andis under no obligation to issue the bond.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.The approval of a bond under Subsection (3)(a) or review under Subsection (4)(a) of a parameters resolution by the commission:is not an obligation of the state; andis not an act that:lends the state’s credit; orconstitutes indebtedness within the meaning of any constitutional or statutory debt limitation. 63C-25-202(4) The commission shall review and, at the commission’s discretion, may make recommendations regarding a parameters resolution before:a bonding political subdivision may issue a bond; ora public infrastructure district may issue a bond, if the creating entity of the public infrastructure district is a bonding political subdivision.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.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.After review by the commission under Subsection (4)(a), the bonding political subdivision or public infrastructure district:shall consider recommendations by the commission; andmay proceed with the bond but is under no obligation to issue the bond. 63C-25-202(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. 63C-25-202(6) Before a bonding government entity may enter into a concessionaire contract, the commission shall review and approve the concessionaire contract.If, after review, the commission approves the concessionaire contract, the bonding government entity:may not change the terms of the concessionaire contract if the change is outside of:any applicable approved parameters of the concessionaire contract; orthe intended purposes of the concessionaire contract; andis under no obligation to enter into the concessionaire contract.

63C-25-203 - Debt affordability report.

63C-25-203(1) No later than November 1 each year, the state treasurer, with assistance from the Governor’s Office of Planning and Budget and the Office of the Legislative Fiscal Analyst, shall prepare and submit a debt affordability report to the commission and the Revenue and Taxation Interim Committee. 63C-25-203(2) The debt affordability report shall include:

as determined by the state treasurer, the amount of tax-supported debt that, during the next fiscal year and annually for the following nine fiscal years: will be outstanding; and has been authorized but is not yet issued; a projected schedule of affordable, state tax-supported debt authorizations for the next fiscal year; projected debt-service requirements during the next fiscal year and annually for the following nine fiscal years based upon: existing outstanding debt; previously authorized but unissued debt; and projected bond authorizations; the criteria that recognized bond rating agencies use to judge the quality of issues of bonds issued by the state; and any other information that is relevant to: the state’s ability to meet its projected debt service requirements; the ability of the state to support additional debt service; the interest rate to be borne by, the credit rating on, or any other factor affecting the marketability of state bonds; and the effect of authorizing new tax-supported debt on each of the considerations described in this Subsection (2).