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S.B. 35





Chief Sponsor: Wayne L. Niederhauser

House Sponsor: ____________

             7      LONG TITLE
             8      General Description:
             9          This bill modifies the terms for issuing general obligation bonds for a capital facility
             10      project.
             11      Highlighted Provisions:
             12          This bill:
             13          .    modifies existing language and dollar amounts on authorized costs and
             14      authorization caps to comply with current language and funding practices;
             15          .    removes the prerequisites for issuing and selling general obligation bonds for the
             16      Utah State University Agricultural Science Classroom Building capital facility
             17      project; and
             18          .    makes technical changes.
             19      Monies Appropriated in this Bill:
             20          None
             21      Other Special Clauses:
             22          None
             23      Utah Code Sections Affected:
             24      AMENDS:
             25          63B-17-101, as enacted by Laws of Utah 2008, Chapter 224
             27      Be it enacted by the Legislature of the state of Utah:

             28          Section 1. Section 63B-17-101 is amended to read:
             29           63B-17-101. Capital facilities bonds -- Maximum amount -- Projects authorized.
             30          (1) [(a)] The total amount of bonds issued under this section may not exceed
             31      [$43,750,000] $43,111,000 for acquisition and construction proceeds, plus additional amounts
             32      necessary to pay costs of issuance, to pay capitalized interest, and to fund any debt service
             33      reserve requirements, with the total costs of the bonds not to exceed $43,542,100.
             34          [(b) When Utah State University provides written certification to the commission that
             35      the President of the United States has signed a federal appropriations bill appropriating monies
             36      for the United States Department of Agriculture - Agricultural Research Service's portion of the
             37      Agricultural Science Classroom Building and that those monies are available for expenditure,
             38      the commission may issue and sell general obligation bonds in a total amount not to exceed
             39      71.85% of the amount of unexpended and available federal monies in the federal
             40      appropriations bill or $43,111,000, whichever is less.]
             41          (2) (a) Proceeds from the issuance of bonds shall be provided to the division to provide
             42      funds to pay all or part of the cost of acquiring and constructing the projects listed in this
             43      Subsection (2).
             44          (b) These costs may include the cost of acquiring land, interests in land, easements and
             45      rights-of-way, improving sites, and acquiring, constructing, equipping, and furnishing facilities
             46      and all structures, roads, parking facilities, utilities, and improvements necessary, incidental, or
             47      convenient to the facilities, interest estimated to accrue on these bonds during the period to be
             48      covered by construction of the projects plus a period of six months after the end of the
             49      construction period, and all related engineering, architectural, and legal fees.
             50          (c) For the division, proceeds shall be provided for the following:
             51      ----------------------------------------------------------------------------------------------------------------
             53                          Estimated        
             54                          Operations        Project
             55      Project                and            Amount
             56      Description                Maintenance        Funded
             57      ----------------------------         ----------------- ----------------
             58      USU Agricultural Science

             59      Classroom Building            $493,400        $43,111,000
             60      TOTAL CAPITAL
             61      DEVELOPMENT
             62      PROJECTS                            $43,111,000
             63      -------------------------------------------------------------------------------------------------------------------
             64      ADDITIONAL AUTHORIZED AMOUNTS                $431,100
             66      FOR CAPITAL DEVELOPMENT PROJECTS            [$43,111,000] $43,542,100
             67      -------------------------------------------------------------------------------------------------------------------
             68          (d) For purposes of this section, operations and maintenance costs:
             69          (i) are estimates only;
             70          (ii) may include any operations and maintenance costs already funded in existing
             71      agency budgets; and
             72          (iii) are not commitments by this Legislature or future Legislatures to fund those
             73      operations and maintenance costs.
             74          (3) (a) The amounts funded as listed in Subsection (2) are estimates only and do not
             75      constitute a limitation on the amount that may be expended for any project.
             76          (b) The board may revise these estimates and redistribute the amount estimated for a
             77      project among the projects authorized.
             78          (c) The commission, by resolution and in consultation with the board, may delete one
             79      or more projects from this list if the inclusion of that project or those projects in the list could
             80      be construed to violate state law or federal law or regulation.
             81          (4) (a) The division may enter into agreements related to these projects before the
             82      receipt of proceeds of bonds issued under this chapter.
             83          (b) The division shall make those expenditures from unexpended and unencumbered
             84      building funds already appropriated to the Capital Projects Fund.
             85          (c) The division shall reimburse the Capital Projects Fund upon receipt of the proceeds
             86      of bonds issued under this chapter.
             87          (d) The state intends to use proceeds of tax-exempt bonds to reimburse itself for
             88      expenditures for costs of the projects listed in Subsection (2)(c).
             89          (5) It is the intent of the Legislature that the funding authorized for projects in

             90      Subsection (2) does not include funds for public art.

Legislative Review Note
    as of 12-2-09 10:47 AM

Office of Legislative Research and General Counsel

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