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S.B. 9 Enrolled

             1     

REVENUE BOND AND CAPITAL FACILITIES

             2     
AMENDMENTS

             3     
2013 GENERAL SESSION

             4     
STATE OF UTAH

             5     
Chief Sponsor: Wayne A. Harper

             6     
House Sponsor: Gage Froerer

             7     
             8      LONG TITLE
             9      General Description:
             10          This bill makes modifications to provisions relating to revenue bonding; authorizes
             11      certain state agencies and institutions to issue revenue bonds; and authorizes the
             12      construction or renovation of capital facilities using agency, institutional, or donated
             13      funds.
             14      Highlighted Provisions:
             15          This bill:
             16          .    modifies capital improvement appropriation requirements for the 2013-14 fiscal
             17      year;
             18          .    authorizes the State Board of Regents to issue bonds for the following:
             19              .    $30,000,000 for the Aggie Life & Wellness Center at Utah State University;
             20              .    $900,000 for the Blanding Recreational Center at Utah State University:
             21      College of Eastern Utah: Blanding Campus;
             22              .    $20,532,000 for the Space Dynamics Laboratory at Utah State University;
             23              .    $23,600,000 for the Basketball Training Center - HPER Addition at the
             24      University of Utah; and
             25              .    $7,500,000 for the Utah State University Athletic Complex/Training Center at
             26      Utah State University;
             27          .    prohibits the request of state funds for operation and maintenance costs or capital
             28      improvements associated with the authorized revenue bond projects; and
             29          .    authorizes the planning, design, and construction or renovation of the following,


             30      provided that only agency, institutional, or donated funds are used:
             31              .    for a Center for the Arts at Southern Utah University at a cost of up to
             32      $30,000,000 and prohibits the use of state funds for operation and maintenance
             33      and capital improvement costs of the building;
             34              .    for the Kennecott Building and Renovation and Addition of Phase II at the
             35      University of Utah at a cost of up to $11,040,000, and permits state funds to be
             36      used for operation and maintenance and capital improvement costs of the
             37      building;
             38              .    for a Science and Technology Building at the Tooele Campus of Utah State
             39      University Tooele at a cost of up to $8,000,000, and permits state funds to be
             40      used for operation and maintenance and capital improvement costs of the
             41      building; and
             42              .    for a Communications and Driver License Building at the Department of Public
             43      Safety in Price at a cost of up to $1,277,000, and permits state funds to be used
             44      for operation and maintenance and capital improvement costs of the building.
             45      Money Appropriated in this Bill:
             46          None
             47      Other Special Clauses:
             48          None
             49      Utah Code Sections Affected:
             50      AMENDS:
             51          63A-5-104, as last amended by Laws of Utah 2012, Chapters 129, 242, and 393
             52      ENACTS:
             53          63B-22-101, Utah Code Annotated 1953
             54          63B-22-201, Utah Code Annotated 1953
             55     
             56      Be it enacted by the Legislature of the state of Utah:
             57          Section 1. Section 63A-5-104 is amended to read:


             58           63A-5-104. Definitions -- Capital development and capital improvement process
             59      -- Approval requirements -- Limitations on new projects -- Emergencies.
             60          (1) As used in this section:
             61          (a) "Capital developments" means a:
             62          (i) remodeling, site, or utility project with a total cost of $2,500,000 or more;
             63          (ii) new facility with a construction cost of $500,000 or more; or
             64          (iii) purchase of real property where an appropriation is requested to fund the purchase.
             65          (b) "Capital improvements" means a:
             66          (i) remodeling, alteration, replacement, or repair project with a total cost of less than
             67      $2,500,000;
             68          (ii) site and utility improvement with a total cost of less than $2,500,000; or
             69          (iii) new facility with a total construction cost of less than $500,000.
             70          (c) (i) "New facility" means the construction of a new building on state property
             71      regardless of funding source.
             72          (ii) "New facility" includes:
             73          (A) an addition to an existing building; and
             74          (B) the enclosure of space that was not previously fully enclosed.
             75          (iii) "New facility" does not mean:
             76          (A) the replacement of state-owned space that is demolished or that is otherwise
             77      removed from state use, if the total construction cost of the replacement space is less than
             78      $2,500,000; or
             79          (B) the construction of facilities that do not fully enclose a space.
             80          (d) "Replacement cost of existing state facilities" means the replacement cost, as
             81      determined by the Division of Risk Management, of state facilities, excluding auxiliary
             82      facilities as defined by the State Building Board.
             83          (e) "State funds" means public money appropriated by the Legislature.
             84          (2) The State Building Board, on behalf of all state agencies, commissions,
             85      departments, and institutions shall submit its capital development recommendations and


             86      priorities to the Legislature for approval and prioritization.
             87          (3) (a) Except as provided in Subsections (3)(b), (d), and (e), a capital development
             88      project may not be constructed on state property without legislative approval.
             89          (b) Legislative approval is not required for a capital development project that consists
             90      of the design or construction of a new facility if the State Building Board determines that:
             91          (i) the requesting state agency, commission, department, or institution has provided
             92      adequate assurance that:
             93          (A) state funds will not be used for the design or construction of the facility; and
             94          (B) the state agency, commission, department, or institution has a plan for funding in
             95      place that will not require increased state funding to cover the cost of operations and
             96      maintenance to, or state funding for, immediate or future capital improvements to the resulting
             97      facility; and
             98          (ii) the use of the state property is:
             99          (A) appropriate and consistent with the master plan for the property; and
             100          (B) will not create an adverse impact on the state.
             101          (c) (i) The Division of Facilities Construction and Management shall maintain a record
             102      of facilities constructed under the exemption provided in Subsection (3)(b).
             103          (ii) For facilities constructed under the exemption provided in Subsection (3)(b), a state
             104      agency, commission, department, or institution may not request:
             105          (A) increased state funds for operations and maintenance; or
             106          (B) state capital improvement funding.
             107          (d) Legislative approval is not required for:
             108          (i) the renovation, remodeling, or retrofitting of an existing facility with nonstate funds
             109      that has been approved by the State Building Board;
             110          (ii) a facility to be built with nonstate funds and owned by nonstate entities within
             111      research park areas at the University of Utah and Utah State University;
             112          (iii) a facility to be built at This is the Place State Park by This is the Place Foundation
             113      with funds of the foundation, including grant money from the state, or with donated services or


             114      materials;
             115          (iv) a capital project that:
             116          (A) is funded by:
             117          (I) the Uintah Basin Revitalization Fund; or
             118          (II) the Navajo Revitalization Fund; and
             119          (B) does not provide a new facility for a state agency or higher education institution; or
             120          (v) a capital project on school and institutional trust lands that is funded by the School
             121      and Institutional Trust Lands Administration from the Land Grant Management Fund and that
             122      does not fund construction of a new facility for a state agency or higher education institution.
             123          (e) (i) Legislative approval is not required for capital development projects to be built
             124      for the Department of Transportation:
             125          (A) as a result of an exchange of real property under Section 72-5-111 ; or
             126          (B) as a result of a sale or exchange of real property from a maintenance facility if the
             127      real property is exchanged for, or the proceeds from the sale of the real property are used for,
             128      another maintenance facility, including improvements for a maintenance facility and real
             129      property.
             130          (ii) When the Department of Transportation approves a sale or exchange under
             131      Subsection (3)(e), it shall notify the president of the Senate, the speaker of the House, and the
             132      cochairs of the Infrastructure and General Government Appropriations Subcommittee of the
             133      Legislature's Joint Appropriation Committee about any new facilities to be built or improved
             134      under this exemption.
             135          (4) (a) (i) The State Building Board, on behalf of all state agencies, commissions,
             136      departments, and institutions shall by January 15 of each year, submit a list of anticipated
             137      capital improvement requirements to the Legislature for review and approval.
             138          (ii) The list shall identify:
             139          (A) a single project that costs more than $1,000,000;
             140          (B) multiple projects within a single building or facility that collectively cost more than
             141      $1,000,000;


             142          (C) a single project that will be constructed over multiple years with a yearly cost of
             143      $1,000,000 or more and an aggregate cost of more than $2,500,000;
             144          (D) multiple projects within a single building or facility with a yearly cost of
             145      $1,000,000 or more and an aggregate cost of more than $2,500,000;
             146          (E) a single project previously reported to the Legislature as a capital improvement
             147      project under $1,000,000 that, because of an increase in costs or scope of work, will now cost
             148      more than $1,000,000; and
             149          (F) multiple projects within a single building or facility previously reported to the
             150      Legislature as a capital improvement project under $1,000,000 that, because of an increase in
             151      costs or scope of work, will now cost more than $1,000,000.
             152          (b) Unless otherwise directed by the Legislature, the State Building Board shall
             153      prioritize capital improvements from the list submitted to the Legislature up to the level of
             154      appropriation made by the Legislature.
             155          (c) In prioritizing capital improvements, the State Building Board shall consider the
             156      results of facility evaluations completed by an architect/engineer as stipulated by the building
             157      board's facilities maintenance standards.
             158          (d) The State Building Board may require an entity that benefits from a capital
             159      improvement project to repay the capital improvement funds from savings that result from the
             160      project.
             161          (e) The State Building Board may provide capital improvement funding to a single
             162      project, or to multiple projects within a single building or facility, even if the total cost of the
             163      project or multiple projects is $2,500,000 or more, if:
             164          (i) the capital improvement project or multiple projects require more than one year to
             165      complete; and
             166          (ii) the Legislature has affirmatively authorized the capital improvement project or
             167      multiple projects to be funded in phases.
             168          (5) The Legislature may authorize:
             169          (a) the total square feet to be occupied by each state agency; and


             170          (b) the total square feet and total cost of lease space for each agency.
             171          (6) (a) Except as provided in Subsection (6)(b) or (c), the Legislature may not fund the
             172      design or construction of any new capital development projects, except to complete the funding
             173      of projects for which partial funding has been previously provided, until the Legislature has
             174      appropriated 1.1% of the replacement cost of existing state facilities to capital improvements.
             175          (b) (i) As used in this Subsection (6)(b):
             176          (A) "Education Fund budget deficit" is as defined in Section 63J-1-312 ; and
             177          (B) "General Fund budget deficit" is as defined in Section 63J-1-312 .
             178          (ii) If the Legislature determines that an Education Fund budget deficit or a General
             179      Fund budget deficit exists, the Legislature may, in eliminating the deficit, reduce the amount
             180      appropriated to capital improvements to 0.9% of the replacement cost of state buildings.
             181          (c) (i) The requirements under Subsections (6)(a) and (b) do not apply to the 2008-09,
             182      2009-10, 2010-11, 2011-12, and 2012-13 fiscal years.
             183          (ii) For the 2013-14 fiscal year, the amount appropriated to capital improvements shall
             184      be reduced to 0.9% of the replacement cost of state facilities.
             185          (7) (a) If, after approval of capital development and capital improvement priorities by
             186      the Legislature under this section, emergencies arise that create unforeseen critical capital
             187      improvement projects, the State Building Board may, notwithstanding the requirements of Title
             188      63J, Chapter 1, Budgetary Procedures Act, reallocate capital improvement funds to address
             189      those projects.
             190          (b) The State Building Board shall report any changes it makes in capital improvement
             191      allocations approved by the Legislature to:
             192          (i) the Office of Legislative Fiscal Analyst within 30 days of the reallocation; and
             193          (ii) the Legislature at its next annual general session.
             194          (8) (a) The State Building Board may adopt a rule allocating to institutions and
             195      agencies their proportionate share of capital improvement funding.
             196          (b) The State Building Board shall ensure that the rule:
             197          (i) reserves funds for the Division of Facilities Construction and Management for


             198      emergency projects; and
             199          (ii) allows the delegation of projects to some institutions and agencies with the
             200      requirement that a report of expenditures will be filed annually with the Division of Facilities
             201      Construction and Management and appropriate governing bodies.
             202          (9) It is the intent of the Legislature that in funding capital improvement requirements
             203      under this section the General Fund be considered as a funding source for at least half of those
             204      costs.
             205          Section 2. Section 63B-22-101 is enacted to read:
             206     
CHAPTER 22. 2013 BONDING AND FINANCING AUTHORIZATIONS

             207     
Part 1. 2013 Revenue Bond Authorizations

             208          63B-22-101. Revenue bond authorizations -- Board of Regents.
             209          (1) The Legislature intends that:
             210          (a) the Board of Regents, on behalf of Utah State University, may issue, sell, and
             211      deliver revenue bonds or other evidences of indebtedness of Utah State University to borrow
             212      money on the credit, revenues, and reserves of the university, other than appropriations of the
             213      Legislature, to finance the cost of constructing the Aggie Life & Wellness Center;
             214          (b) Utah State University use student fees as the primary revenue sources for
             215      repayment of any obligation created under authority of this section;
             216          (c) the maximum amount of revenue bonds or evidences of indebtedness authorized by
             217      this section is $30,000,000, together with other amounts necessary to pay costs of issuance, pay
             218      capitalized interest, and fund any debt service reserve requirements;
             219          (d) the university shall plan, design, and construct the Aggie Life & Wellness Center
             220      subject to the requirements of Title 63A, Chapter 5, State Building Board - Division of
             221      Facilities Construction and Management; and
             222          (e) the university may not request state funds for operation and maintenance costs or
             223      capital improvements.
             224          (2) The Legislature intends that:
             225          (a) the Board of Regents, on behalf of Utah State University, may issue, sell, and


             226      deliver revenue bonds or other evidences of indebtedness of Utah State University to borrow
             227      money on the credit, revenues, and reserves of the university, other than appropriations of the
             228      Legislature, to finance the cost of constructing the Blanding Recreational Center at Utah State
             229      University: College of Eastern Utah: Blanding Campus;
             230          (b) Utah State University use student fees as the primary revenue sources for
             231      repayment of any obligation created under authority of this section;
             232          (c) the maximum amount of revenue bonds or evidences of indebtedness authorized by
             233      this section is $900,000, together with other amounts necessary to pay costs of issuance, pay
             234      capitalized interest, and fund any debt service reserve requirements;
             235          (d) the university shall plan, design, and construct the Blanding Recreational Center
             236      subject to the requirements of Title 63A, Chapter 5, State Building Board - Division of
             237      Facilities Construction and Management; and
             238          (e) the university may not request state funds for operation and maintenance costs or
             239      capital improvements.
             240          (3) The Legislature intends that:
             241          (a) the Board of Regents, on behalf of Utah State University, may issue, sell, and
             242      deliver revenue bonds or other evidences of indebtedness of Utah State University to borrow
             243      money on the credit, revenues, and reserves of the university, other than appropriations of the
             244      Legislature, to finance the cost of constructing the Space Dynamics Laboratory;
             245          (b) Utah State University use reimbursement from research projects as the primary
             246      revenue sources for repayment of any obligation created under authority of this section;
             247          (c) the maximum amount of revenue bonds or evidences of indebtedness authorized by
             248      this section is $20,532,000, together with other amounts necessary to pay costs of issuance, pay
             249      capitalized interest, and fund any debt service reserve requirements;
             250          (d) the university shall plan, design, and construct the Space Dynamics Laboratory
             251      subject to the requirements of Title 63A, Chapter 5, State Building Board - Division of
             252      Facilities Construction and Management; and
             253          (e) the university may not request state funds for operation and maintenance costs or


             254      capital improvements.
             255          (4) The Legislature intends that:
             256          (a) the Board of Regents, on behalf of the University of Utah, may issue, sell, and
             257      deliver revenue bonds or other evidences of indebtedness of the University of Utah to borrow
             258      money on the credit, revenues, and reserves of the university, other than appropriations of the
             259      Legislature, to finance the cost of constructing the Basketball Training Center - HPER
             260      Addition;
             261          (b) the University of Utah use athletic revenues from ticket sales and television
             262      revenues as the primary revenue sources for repayment of any obligation created under
             263      authority of this section;
             264          (c) the maximum amount of revenue bonds or evidences of indebtedness authorized by
             265      this section is $23,600,000, together with other amounts necessary to pay costs of issuance, pay
             266      capitalized interest, and fund any debt service reserve requirements;
             267          (d) the university shall plan, design, and construct the Basketball Training Center -
             268      HPER Addition subject to the requirements of Title 63A, Chapter 5, State Building Board -
             269      Division of Facilities Construction and Management; and
             270          (e) the university may not request state funds for operation and maintenance costs or
             271      capital improvements.
             272          (5) The Legislature intends that:
             273          (a) the Board of Regents, on behalf of Utah State University, may issue, sell, and
             274      deliver revenue bonds or other evidences of indebtedness of Utah State University to borrow
             275      money on the credit, revenues, and reserves of the university, other than appropriations of the
             276      Legislature, to finance the cost of constructing the Utah State University Athletic
             277      Complex/Training Center;
             278          (b) Utah State University use donations as the primary revenue sources for repayment
             279      of any obligation created under authority of this section;
             280          (c) the maximum amount of revenue bonds or evidences of indebtedness authorized by
             281      this section is $7,500,000, together with other amounts necessary to pay costs of issuance, pay


             282      capitalized interest, and fund any debt service reserve requirements;
             283          (d) the university shall plan, design, and construct the Utah State University Athletic
             284      Complex/Training Center subject to the requirements of Title 63A, Chapter 5, State Building
             285      Board - Division of Facilities Construction and Management; and
             286          (e) the university may not request state funds for operation and maintenance costs or
             287      capital improvements.
             288          Section 3. Section 63B-22-201 is enacted to read:
             289     
Part 2. 2013 Capital Facility Design and Construction Authorizations

             290          63B-22-201. Authorizations to design and construct capital facilities using
             291      institutional or agency funds.
             292          (1) The Legislature intends that:
             293          (a) Southern Utah University may, subject to requirements in Title 63A, Chapter 5,
             294      State Building Board - Division of Facilities Construction and Management, use up to
             295      $30,000,000 in donations and institutional funds to plan, design, and construct a Center for the
             296      Arts with up to 80,490 square feet;
             297          (b) no state funds be used for any portion of this project; and
             298          (c) the university may not request state funds for operation and maintenance costs or
             299      capital improvements.
             300          (2) The Legislature intends that:
             301          (a) the University of Utah may, subject to requirements in Title 63A, Chapter 5, State
             302      Building Board - Division of Facilities Construction and Management, use up to $11,040,000
             303      in donations and institutional funds to plan, design, and construct a Renovation and Addition of
             304      Phase II of the Kennecott Building with up to 40,700 new square feet;
             305          (b) no state funds be used for any portion of this project; and
             306          (c) the university may use state funds for operation and maintenance costs or capital
             307      improvements.
             308          (3) The Legislature intends that:
             309          (a) Utah State University may, subject to requirements in Title 63A, Chapter 5, State


             310      Building Board - Division of Facilities Construction and Management, use up to $8,000,000 in
             311      donations and institutional funds to plan, design, and construct a Science and Technology
             312      Building at Utah State University Tooele with up to 26,000 square feet;
             313          (b) no state funds be used for any portion of this project; and
             314          (c) the university may use state funds for operation and maintenance costs or capital
             315      improvements.
             316          (4) The Legislature intends that:
             317          (a) the Department of Public Safety may, subject to requirements in Title 63A, Chapter
             318      5, State Building Board - Division of Facilities Construction and Management, use up to
             319      $1,277,000 in nonlapsing balances to plan, design, and construct a Drivers License Building in
             320      Price with up to 7,000 square feet;
             321          (b) no state funds be used for any portion of this project; and
             322          (c) the department may use state funds for operation and maintenance costs or capital
             323      improvements.


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