S.B. 35

1

CAPITAL FACILITIES BONDS AMENDMENTS
2 2010 GENERAL SESSION
3 STATE OF UTAH
4 Chief Sponsor: Wayne L. Niederhauser
5 House Sponsor: ____________
6
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
26
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 ----------------------------------------------------------------------------------------------------------------
52 CAPITAL DEVELOPMENT PROJECTS
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
65 TOTAL GENERAL OBLIGATION BOND AUTHORIZATION
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