H.B. 473

1

REVENUE BOND AND CAPITAL FACILITIES
2 AUTHORIZATIONS
3 2007 GENERAL SESSION
4 STATE OF UTAH
5 Chief Sponsor: D. Gregg Buxton
6 Senate Sponsor: Scott K. Jenkins
7
8 LONG TITLE
9 General Description:
10 This bill authorizes certain state agencies and higher education institutions to issue
11 revenue bonds, build capital facilities using agency or institutional funds, or acquire or
12 exchange property.
13 Highlighted Provisions:
14 This bill:
15 . authorizes the issuance of revenue bonds by the State Building Ownership Authority
16 and the State Board of Regents;
17 . authorizes other capital facility construction from agency or institutional funds; and
18 . authorizes the acquisition or exchange of certain higher education property.
19 Monies Appropriated in this Bill:
20 None
21 Other Special Clauses:
22 None
23 Utah Code Sections Affected:
24 ENACTS:
25 63B-16-101, Utah Code Annotated 1953
26 63B-16-102, Utah Code Annotated 1953
27 63B-16-201, Utah Code Annotated 1953

28 63B-16-301, Utah Code Annotated 1953
29
30 Be it enacted by the Legislature of the state of Utah:
31 Section 1. Section 63B-16-101 is enacted to read:
32 CHAPTER 16. 2007 FINANCING AUTHORIZATIONS
33 Part 1. Revenue Bond Authorizations
34 63B-16-101. Revenue Bond Authorizations -- State Building Ownership
35 Authority.
36 It is the intent of the Legislature that:
37 (1) the State Building Ownership Authority, under the authority of Title 63B, Chapter
38 1, Part 3, State Building Ownership Authority Act, may issue or execute obligations, or enter
39 into or arrange for a lease purchase agreement in which participation interests may be created,
40 to provide up to $1,476,000 for the acquisition and construction of a production warehouse for
41 Utah Correctional Industries, together with additional amounts necessary to pay costs of
42 issuance, pay capitalized interest, and fund any debt service reserve requirements;
43 (2) Utah Correctional Industries' revenues be used as the primary revenue source for
44 repayment of any obligation created under authority of this section;
45 (3) Utah Correctional Industries may plan, design, and construct the production
46 warehouse subject to requirements in Section 63A-5-206 ; and
47 (4) Utah Correctional Industries may not request state funds for operation and
48 maintenance costs or capital improvements.
49 Section 2. Section 63B-16-102 is enacted to read:
50 63B-16-102. Revenue Bond Authorizations -- Board of Regents.
51 It is the intent of the Legislature that:
52 (1) the Board of Regents, on behalf of Southern Utah University, may issue, sell, and
53 deliver revenue bonds or other evidences of indebtedness of Southern Utah University to
54 borrow money on the credit, revenues, and reserves of Southern Utah University, other than
55 appropriations of the Legislature, to finance the cost of constructing on-campus student
56 dormitories;
57 (2) student housing rental fees be used as the primary revenue source for repayment of
58 any obligation created under authority of this section;

59 (3) the bonds or other evidences of indebtedness authorized by this section may
60 provide up to $17,500,000, together with other amounts necessary to pay costs of issuance, pay
61 capitalized interest, and fund any debt service reserve requirements;
62 (4) Southern Utah University may plan, design, and construct the on-campus student
63 dormitories subject to requirements in Section 63A-5-206 ; and
64 (5) the university may not request state funds for operation and maintenance costs or
65 capital improvements.
66 Section 3. Section 63B-16-201 is enacted to read:
67 Part 2. Capital Facility Construction Authorizations
68 63B-16-201. Authorizations to construct capital facilities using institutional or
69 agency funds.
70 (1) It is the intent of the Legislature that:
71 (a) Utah State University may, subject to requirements in Section 63A-5-206 , plan,
72 design, and construct a classroom building funded and owned by Tooele County on the
73 university's Tooele campus;
74 (b) no state funds be used for any portion of this project, including for future purchase
75 or otherwise acquiring the building from Tooele County;
76 (c) the university may not request state funds for operation and maintenance costs or
77 capital improvements while the building is not owned by the university; and
78 (d) the university may request state funds for operations and maintenance costs and
79 capital improvements if the building is donated to the university and if the university is able to
80 demonstrate to the Board of Regents that the facility meets approved academic and training
81 purposes under Board of Regents policy R710.
82 (2) It is the intent of the Legislature that:
83 (a) Weber State University may, subject to requirements in Section 63A-5-206 , use
84 donations and other institutional funds to plan, design, and construct a Lifelong Learning
85 Center;
86 (b) no state funds be used for any portion of this project; and
87 (c) the university may request state funds for operations and maintenance costs and
88 capital improvements to the extent that the university is able to demonstrate to the Board of
89 Regents that the facility meets approved academic and training purposes under Board of

90 Regents policy R710.
91 (3) It is the intent of the Legislature that:
92 (a) Salt Lake Community College may, subject to requirements in Section 63A-5-206 ,
93 use institutional funds to plan, design, and construct a Facilities/Security/Parking Services
94 Building;
95 (b) no state funds be used for any portion of this project; and
96 (c) the college may request state funds for operations and maintenance costs and capital
97 improvements to the extent that the college is able to demonstrate to the Board of Regents that
98 the facility meets approved academic and training purposes under Board of Regents policy
99 R710.
100 Section 4. Section 63B-16-301 is enacted to read:
101 Part 3. Property Acquisition and Exchange Authorizations
102 63B-16-301. Authorizations to acquire or exchange property.
103 (1) It is the intent of the Legislature that:
104 (a) the Southeast Applied Technology Campus of the Utah College of Applied
105 Technology and the College of Eastern Utah may cooperatively enter into negotiations with a
106 nonstate entity and complete a real property exchange to acquire an applied technology facility
107 in Price;
108 (b) no state funds be used for any portion of this project; and
109 (c) the college may request state funds for operations and maintenance costs and capital
110 improvements to the extent that the college is able to demonstrate to the Board of Regents that
111 the facility meets approved academic and training purposes under Board of Regents policy
112 R710.
113 (2) It is the intent of the Legislature that:
114 (a) the Mountainland Applied Technology Campus of the Utah College of Applied
115 Technology may exercise its option to purchase additional property in northern Utah County
116 adjacent to property purchased with the appropriation in Chapter 367, Item 41, Laws of Utah
117 2006;
118 (b) the purchase be financed through donations, institutional funds, a land exchange
119 involving Lehi City and the Utah Transit Authority, or some combination of donations,
120 institutional funds, and a land exchange involving Lehi City and the Utah Transit Authority for

121 future development of a commuter rail station;
122 (c) the purchase be conducted under the direction of the director of the Division of
123 Facilities Construction and Management; and
124 (d) no state funds be used for any portion of this purchase.




Legislative Review Note
as of 2-12-07 8:15 AM

Office of Legislative Research and General Counsel