The Legislature approved a resolution during its special session to appoint a committee to study a proposal for the state to issue industrial revenue bonds to finance construction of a Pacific Engineering rocket-fuel plant at Cedar City.

The new plant, which would be constructed on a 4,800-acre site west of Cedar City, would replace the company's plant at Henderson, Nev., which was destroyed in an explosion last May. The plant produced ammonium perchlorate, which is used as an oxidizer for solid-fuel rocket motors.The state Division of Economic and Community Development requested that lawmakers authorize issuance of the bonds, but the matter was deferred after the legislative counsel told legislators Tuesday that the state lacks the authority to do so.

The division had proposed using the Utah Housing Finance Agency to issue the bonds, but that would be illegal, the legislative counsel said.