S.B. 4 Enrolled

1

GENERAL OBLIGATION BOND
2 AUTHORIZATION
3 2008 GENERAL SESSION
4 STATE OF UTAH
5 Chief Sponsor: Scott K. Jenkins
6 House Sponsor: Kevin S. Garn
7
8 LONG TITLE
9 General Description:
10 This bill authorizes the issuance of general obligation bonds for certain capital
11 facilities and repeals obsolete authorizations.
12 Highlighted Provisions:
13 This bill:
14 . modifies the bonding code by authorizing the issuance and sale of general obligation
15 bonds by the State Bonding Commission for capital facilities;
16 . specifies the use of the general obligation bond proceeds and the manner of issuance;
17 . repeals obsolete general obligation bond issuance authorizations; and
18 . provides expressions of legislative intent.
19 Monies Appropriated in this Bill:
20 None
21 Other Special Clauses:
22 None
23 Utah Code Sections Affected:
24 AMENDS:
25 63B-11-502, as last amended by Laws of Utah 2003, Chapter 335
26 ENACTS:
27 63B-17-101, Utah Code Annotated 1953
28 REPEALS:
29 63B-9-201, as enacted by Laws of Utah 2000, Chapter 354

30 63B-9-202, as enacted by Laws of Utah 2000, Chapter 354
31 63B-9-203, as enacted by Laws of Utah 2000, Chapter 354
32 63B-9-204, as enacted by Laws of Utah 2000, Chapter 354
33 63B-9-205, as enacted by Laws of Utah 2000, Chapter 354
34 63B-9-206, as enacted by Laws of Utah 2000, Chapter 354
35 63B-9-207, as enacted by Laws of Utah 2000, Chapter 354
36 63B-9-208, as enacted by Laws of Utah 2000, Chapter 354
37 63B-9-209, as enacted by Laws of Utah 2000, Chapter 354
38 63B-9-210, as enacted by Laws of Utah 2000, Chapter 354
39 63B-9-211, as enacted by Laws of Utah 2000, Chapter 354
40 63B-9-212, as enacted by Laws of Utah 2000, Chapter 354
41 63B-9-213, as enacted by Laws of Utah 2000, Chapter 354
42 63B-9-214, as enacted by Laws of Utah 2000, Chapter 354
43 63B-9-215, as enacted by Laws of Utah 2000, Chapter 354
44 63B-9-216, as last amended by Laws of Utah 2005, Chapter 105
45 63B-9-217, as enacted by Laws of Utah 2000, Chapter 354
46 63B-14-101, as enacted by Laws of Utah 2005, First Special Session, Chapter 7
47
48 Be it enacted by the Legislature of the state of Utah:
49 Section 1. Section 63B-11-502 is amended to read:
50 63B-11-502. Maximum amount -- Projects authorized.
51 (1) The total amount of bonds issued under this part may not exceed [$78,500,000]
52 $52,101,800.
53 (2) (a) (i) Proceeds from the issuance of bonds shall be provided to the Department of
54 Transportation to provide funds to pay all or part of the costs of accelerating any of the
55 following state highway construction or reconstruction projects in Salt Lake County:
56 (A) I-15: 10600 South to the Utah County line;
57 (B) Final Environmental Impact Statement for Western Transportation Corridor: I-80

58 to Utah County;
59 (C) I-215: Redwood Road to 4700 South;
60 (D) State Street Reconstruction: 9000 South to 10600 South; and
61 (E) except as provided in Subsection (2)(d), State Street Reconstruction: 7800 South to
62 8000 South.
63 (ii) If the Department of Transportation is unable to begin or complete a project
64 authorized by this Subsection (2)(a) because of a court order, the Department of
65 Transportation, with the approval of Salt Lake County, may expend bond proceeds to construct
66 one or more projects identified in Subsection (2)(e).
67 (b) When the Utah Transit Authority certifies to the Transportation Commission that
68 the Utah Transit Authority will pay half the costs of reconstruction of the Utah Transit
69 Authority railroad overpass on 8000 South State Street, the Department of Transportation may
70 provide funds from bond proceeds to pay the other half of the costs of reconstruction of the
71 Utah Transit Authority railroad overpass on 8000 South.
72 (c) As used in Subsections (2)(a) and (b), "costs" may include the cost of acquiring
73 land, interests in land, easements and rights-of-way, improving sites, and making all
74 improvements necessary, incidental, or convenient to the facilities, interest estimated to accrue
75 on these bonds during the period to be covered by construction of the projects plus a period of
76 six months after the end of the construction period, interest estimated to accrue on any bond
77 anticipation notes issued under the authority of Chapter 11, Part 6, 2002 Highway General
78 Obligation Bond Anticipation Notes for Salt Lake County, and all related engineering,
79 architectural, and legal fees.
80 (d) Bond proceeds may not be expended on the State Street Reconstruction: 7800 to
81 8000 South project until the Transportation Commission has received the certification required
82 by Subsection (2)(b) from the Utah Transit Authority.
83 (e) As the following projects or future projects identified by Salt Lake County and the
84 Legislature are prepared and ready for construction by the Department of Transportation, it is
85 the intent of the Legislature that they will be accelerated and funded from future general

86 obligation bonds issued in anticipation of receiving debt service funds from Salt Lake County's
87 1/4 of 1/4% sales tax proceeds earmarked by Section 59-12-502 and from other funding sources
88 available to the Department of Transportation, including monies available from the Centennial
89 Highway Fund and the Statewide Transportation Improvement Plan: 5600 West
90 Reconstruction: 4500 South to 7000 South; Redwood Road: 12600 South to Bangerter
91 Highway; I-15: Beck Street Overpass; I-215: 4700 South to SR-201; acquisition of
92 rights-of-way for the Western Transportation Corridor; 11400 South: I-15 to Redwood Road;
93 and State Street Reconstruction 6400 South to 7800 South and 8000 South to 9000 South.
94 (3) If any portion of the proceeds of the tax paid to the state are not required to pay
95 principal, interest, and issuance costs of the bonds and the principal, interest, and issuance costs
96 of the bond have been paid off, or if, after completion of the projects authorized under
97 Subsection (2)(a) and payment of the costs of issuing and selling the bonds under Section
98 63B-11-503 , any bond proceeds remain unexpended, the Department of Transportation may use
99 those unexpended proceeds to pay all or part of the costs of construction projects in Salt Lake
100 County that have been approved and prioritized by the Transportation Commission.
101 (4) The commission, by resolution, or the state treasurer may make any statement of
102 intent relating to a reimbursement that is necessary or desirable to comply with federal tax law.
103 (5) The Department of Transportation may enter into agreements related to the projects
104 before the receipt of proceeds of bonds issued under this chapter.
105 Section 2. Section 63B-17-101 is enacted to read:
106 CHAPTER 17. 2008 BONDING AND FINANCING AUTHORIZATIONS
107 Part 1. 2008 General Obligation Bond Authorizations
108 63B-17-101. Capital facilities bonds -- Maximum amount -- Projects authorized.
109 (1) (a) The total amount of bonds issued under this section may not exceed
110 $43,750,000.
111 (b) When Utah State University provides written certification to the commission that
112 the President of the United States has signed a federal appropriations bill appropriating monies
113 for the United States Department of Agriculture - Agricultural Research Service's portion of the

114 Agricultural Science Classroom Building and that those monies are available for expenditure,
115 the commission may issue and sell general obligation bonds in a total amount not to exceed
116 71.85% of the amount of unexpended and available federal monies in the federal appropriations
117 bill or $43,111,000, whichever is less.
118 (2) (a) Proceeds from the issuance of bonds shall be provided to the division to provide
119 funds to pay all or part of the cost of acquiring and constructing the projects listed in this
120 Subsection (2).
121 (b) These costs may include the cost of acquiring land, interests in land, easements and
122 rights-of-way, improving sites, and acquiring, constructing, equipping, and furnishing facilities
123 and all structures, roads, parking facilities, utilities, and improvements necessary, incidental, or
124 convenient to the facilities, interest estimated to accrue on these bonds during the period to be
125 covered by construction of the projects plus a period of six months after the end of the
126 construction period, and all related engineering, architectural, and legal fees.
127 (c) For the division, proceeds shall be provided for the following:
128 ----------------------------------------------------------------------------------------------------------------
129 CAPITAL DEVELOPMENT PROJECTS
130 Estimated
131 Operations Project
132 Project and Amount
133 Description Maintenance Funded
134 ---------------------------- ----------------- ----------------
135 USU Agricultural Science
136 Classroom Building $493,400 $43,111,000
137 TOTAL CAPITAL
138 DEVELOPMENT
139 PROJECTS $43,111,000
140 ----------------------------------------------------------------------------------------------------------------
141 ---

142 TOTAL GENERAL OBLIGATION BOND AUTHORIZATION
143 FOR CAPITAL DEVELOPMENT PROJECTS $43,111,000
144 ----------------------------------------------------------------------------------------------------------------
145 ---
146 (d) For purposes of this section, operations and maintenance costs:
147 (i) are estimates only;
148 (ii) may include any operations and maintenance costs already funded in existing agency
149 budgets; and
150 (iii) are not commitments by this Legislature or future Legislatures to fund those
151 operations and maintenance costs.
152 (3) (a) The amounts funded as listed in Subsection (2) are estimates only and do not
153 constitute a limitation on the amount that may be expended for any project.
154 (b) The board may revise these estimates and redistribute the amount estimated for a
155 project among the projects authorized.
156 (c) The commission, by resolution and in consultation with the board, may delete one or
157 more projects from this list if the inclusion of that project or those projects in the list could be
158 construed to violate state law or federal law or regulation.
159 (4) (a) The division may enter into agreements related to these projects before the
160 receipt of proceeds of bonds issued under this chapter.
161 (b) The division shall make those expenditures from unexpended and unencumbered
162 building funds already appropriated to the Capital Projects Fund.
163 (c) The division shall reimburse the Capital Projects Fund upon receipt of the proceeds
164 of bonds issued under this chapter.
165 (d) The state intends to use proceeds of tax-exempt bonds to reimburse itself for
166 expenditures for costs of the projects listed in Subsection (2)(c).
167 (5) It is the intent of the Legislature that the funding authorized for projects in
168 Subsection (2) does not include funds for public art.
169 Section 3. Repealer.

170 This bill repeals:
171 Section 63B-9-201, State Bonding Commission authorized to issue general
172 obligation bonds.
173 Section 63B-9-202, Maximum amount -- Projects authorized.
174 Section 63B-9-203, Bond proceeds may be used to pay costs of issuance and sale.
175 Section 63B-9-204, Manner of issuance -- Amounts, interest, and maturity.
176 Section 63B-9-205, Terms and conditions of sale -- Plan of financing -- Signatures
177 -- Replacement -- Registration -- Federal rebate.
178 Section 63B-9-206, Constitutional debt limitation.
179 Section 63B-9-207, Tax levy -- Abatement of tax.
180 Section 63B-9-208, Creation of sinking fund.
181 Section 63B-9-209, Payment of interest, principal, and redemption premiums.
182 Section 63B-9-210, Investment of sinking fund money.
183 Section 63B-9-211, Bond proceeds -- Deposits -- Investment -- Disposition of
184 investment income and unexpended proceeds.
185 Section 63B-9-212, Refunding of bonds.
186 Section 63B-9-213, Certification of satisfaction of conditions precedent --
187 Conclusiveness.
188 Section 63B-9-214, Tax exemption.
189 Section 63B-9-215, Legal investment status.
190 Section 63B-9-216, Publication of resolution or notice -- Limitation on actions to
191 contest legality.
192 Section 63B-9-217, Report to Legislature.
193 Section 63B-14-101, Capital facilities bonds -- Maximum amount -- Projects
194 authorized.