This document includes House Floor Amendments incorporated into the bill on Thu, Mar 8, 2018 at 3:22 PM by bbryner.
Representative Gage Froerer proposes the following substitute bill:


1     
BOND AUTHORIZATION AMENDMENTS

2     
2018 GENERAL SESSION

3     
STATE OF UTAH

4     
Chief Sponsor: Wayne A. Harper

5     
House Sponsor: Gage Froerer

6     

7     LONG TITLE
8     General Description:
9           This bill modifies provisions relating to certain bond authorizations.
10     Highlighted Provisions:
11          This bill:
12     Ĥ→ [
     ▸      repeals the cap on the costs of issuance, capitalized interest, and debt service reserve
13     requirements for the prison project general obligation bonds;
] ←Ĥ

14          ▸     amends language regarding the costs of issuance, capitalized interest, and debt
15     service reserve requirements for certain highway general obligation bonds;
16          ▸     amends the bonding authority for certain bonds and specifies how certain bond
17     proceeds shall be used to provide funding for certain projects; and
18          ▸     makes technical changes.
19     Money Appropriated in this Bill:
20          None
21     Other Special Clauses:
22          None
23     Utah Code Sections Affected:
24     AMENDS:
25          63B-25-101, as last amended by Laws of Utah 2017, Chapter 89

26          63B-27-101, as enacted by Laws of Utah 2017, Chapter 436
27          63B-27-102, as enacted by Laws of Utah 2017, Chapter 436
28     

29     Be it enacted by the Legislature of the state of Utah:
30          Section 1. Section 63B-25-101 is amended to read:
31          63B-25-101. General obligation bonds for prison project -- Maximum amount --
32     Use of proceeds.
33          (1) As used in this section:
34          (a) "Prison project" means the same as that term is defined in Section 63C-16-102.
35          (b) "Prison project fund" means the capital projects fund created in Subsection
36     63A-5-225(7).
37          (2) The commission may issue general obligation bonds as provided in this section.
38          (3) (a) The total amount of bonds to be issued under this section may not exceed
39     $570,000,000 Ĥ→ for acquisition and construction proceeds ←Ĥ , plus additional amounts
39a     necessary to pay costs of issuance, to pay capitalized
40     interest, and to fund any existing debt service reserve requirements Ĥ→ [
[] ←Ĥ , with the total
40a     amount of
41     the bonds not to exceed $575,700,000
Ĥ→ [
]] ←Ĥ .
42          (b) The maturity of bonds issued under this section may not exceed 10 years.
43          (4) The commission shall ensure that proceeds from the issuance of bonds under this
44     section are deposited into the Prison Project Fund for use by the division to pay all or part of
45     the cost of the prison project, including:
46          (a) interest estimated to accrue on the bonds authorized in this section until the
47     completion of construction of the prison project, plus a period of 12 months after the end of
48     construction; and
49          (b) all related engineering, architectural, and legal fees.
50          (5) (a) The division may enter into agreements related to the prison project before the
51     receipt of proceeds of bonds issued under this section.
52          (b) The division shall make those expenditures from unexpended and unencumbered
53     building funds already appropriated to the Prison Project Fund.
54          (c) The division shall reimburse the Prison Project Fund upon receipt of the proceeds
55     of bonds issued under this chapter.
56          (d) The state intends to use proceeds of tax-exempt bonds to reimburse itself for

57     expenditures for costs of the prison project.
58          (6) Before issuing bonds authorized under this section, the commission shall request
59     and consider a recommendation from the Prison Development Commission, created in Section
60     63C-16-201, regarding the timing and amount of the issuance.
61          Section 2. Section 63B-27-101 is amended to read:
62          63B-27-101. Highway bonds -- Maximum amount -- Use of proceeds for highway
63     projects.
64          (1) (a) Subject to the restriction in Subsection (1)(c), the total amount of bonds issued
65     under this section may not exceed $1,000,000,000 Ĥ→ for acquisition and construction
65a     proceeds ←Ĥ , plus additional amounts necessary to pay
66     costs of issuance, to pay capitalized interest, and to fund any existing debt service reserve
67     requirements Ĥ→ , with the total amount of the bonds not to exceed $1,010,000,000 ←Ĥ .
68          (b) When the Department of Transportation certifies to the commission that the
69     requirements of Subsection 72-2-124(5) have been met and certifies the amount of bond
70     proceeds that the commission needs to provide funding for the projects described in Subsection
71     (2) for the current or next fiscal year, the commission may issue and sell general obligation
72     bonds in an amount equal to the certified amount, plus additional amounts necessary to pay
73     costs of issuance , to pay capitalized interest, and to fund any existing debt service reserve
74     requirements Ĥ→ , not to exceed one percent of the certified amount ←Ĥ .
75          (c) The commission may not issue general obligation bonds authorized under this
76     section if the issuance of the general obligation bonds would result in the total current
77     outstanding general obligation debt of the state exceeding 50% of the limitation described in
78     the Utah Constitution, Article XIV, Section 1.
79          (2) Except as provided in [Subsection] Subsections (3) and (4), proceeds from the
80     issuance of bonds shall be provided to the Department of Transportation to pay all or part of
81     the costs of the following state highway construction or reconstruction projects:
82          (a) state and federal highways prioritized by the Transportation Commission through
83     the prioritization process for new transportation capacity projects adopted under Section
84     72-1-304, giving priority consideration for projects with a regional significance or that support
85     economic development within the state, including:
86          (i) projects that are prioritized but exceed available cash flow beyond the normal
87     programming horizon; or

88          (ii) projects prioritized in the state highway construction program; and
89          (b) $100,000,000 to be used by the Department of Transportation for transportation
90     improvements as prioritized by the Transportation Commission for projects that:
91          (i) have a significant economic development impact associated with recreation and
92     tourism within the state; and
93          (ii) address significant needs for congestion mitigation.
94          (3) Ĥ→ [
Nineteen] Thirty-nine ←Ĥ million dollars of the bond proceeds issued under this
94a     section shall be
95     provided to the Transportation Infrastructure Loan Fund created by Section 72-2-202 to make
96     funds available for a transportation infrastructure loan or transportation infrastructure
97     assistance under Title 72, Chapter 2, Part 2, Transportation Infrastructure Loan Fund, Ĥ→ including
97a     the amounts ←Ĥ as
98     follows:
99          (a) [$10,000,000] $14,000,000 to the military installation development authority
100     created in Section 63H-1-201; and
101          (b) $5,000,000 for right-of-way acquisition and highway construction in [Davis
102     County; and] Salt Lake County for roads in the northwest quadrant of Salt Lake City.
103          [(c)] (4) (a) [$4,000,000 for pedestrian access and crossings by] Four million dollars of
104     the bond proceeds issued under this section shall be used for a public transit fixed guideway
105     rail station [and] associated with or adjacent to an institution of higher education.
106          (b) Ten million dollars of the bond proceeds issued under this section shall be used by
107     the Department of Transportation for the design, engineering, construction, or reconstruction of
108     underpasses under a state highway connecting a state park and a project area created by a
109     military installation development authority created in Section 63H-1-201.
110          [(4)] (5) The bond proceeds issued under this section shall be provided to the
111     Department of Transportation.
112          [(5)] (6) The costs under Subsection (2) may include the costs of studies necessary to
113     make transportation infrastructure improvements, the costs of acquiring land, interests in land,
114     and easements and rights-of-way, the costs of improving sites, and making all improvements
115     necessary, incidental, or convenient to the facilities, and the costs of interest estimated to
116     accrue on these bonds during the period to be covered by construction of the projects plus a
117     period of six months after the end of the construction period, interest estimated to accrue on
118     any bond anticipation notes issued under the authority of this title, and all related engineering,

119     architectural, and legal fees.
120          [(6)] (7) The commission or the state treasurer may make any statement of intent
121     relating to a reimbursement that is necessary or desirable to comply with federal tax law.
122          [(7)] (8) The Department of Transportation may enter into agreements related to the
123     projects described in Subsection (2) before the receipt of proceeds of bonds issued under this
124     section.
125          Section 3. Section 63B-27-102 is amended to read:
126          63B-27-102. Highway bonds -- Maximum amount -- Use of proceeds for Salt
127     Lake County highway projects.
128          (1) (a) Subject to the restriction in Subsection (1)(c), the total amount of bonds issued
129     under this section may not exceed $47,000,000 Ĥ→ for acquisition and construction
129a     proceeds ←Ĥ , plus additional amounts necessary to pay costs
130     of issuance, to pay capitalized interest, and to fund any existing debt service reserve
131     requirements Ĥ→ , with the total amount of the bonds not to exceed $47,470,000 ←Ĥ .
132          (b) When the Department of Transportation certifies to the commission the amount of
133     bond proceeds that the commission needs to provide funding for the projects described in
134     Subsection (2), the commission may issue and sell general obligation bonds in an amount equal
135     to the certified amount, plus additional amounts necessary to pay costs of issuance , to pay
136     capitalized interest, and to fund any existing debt service reserve requirements Ĥ→ , not to exceed
136a     one percent of the certified amount ←Ĥ .
137          (c) The commission may not issue general obligation bonds authorized under this
138     section if the issuance of the general obligation bonds would result in the total current
139     outstanding general obligation debt of the state exceeding 50% of the limitation described in
140     the Utah Constitution, Article XIV, Section 1.
141          (2) (a) Proceeds from the bonds issued under this section shall be provided to the
142     Department of Transportation to pay for or to provide funds to a municipality or county to pay
143     for the costs of right-of-way acquisition, construction, reconstruction, renovations, or
144     improvements to highways, transportation facilities, or multimodal transportation projects
145     described in Subsection (2)(b).
146          (b) Bond proceeds described under Subsection (2)(a) shall be used to pay for state and
147     local highway projects or transportation facilities or multimodal transportation projects
148     described in Subsection 72-2-121(4)(c) in Salt Lake County prioritized by the county.
149          (c) The costs under this Subsection (2) may include the costs of acquiring land,

150     interests in land, and easements and rights-of-way, the costs of improving sites, and making all
151     improvements necessary, incidental, or convenient to the facilities, and the costs of interest
152     estimated to accrue on these bonds during the period to be covered by construction of the
153     projects plus a period of six months after the end of the construction period, interest estimated
154     to accrue on any bond anticipation notes issued under the authority of this title, and all related
155     engineering, architectural, and legal fees.
156          (3) The commission or the state treasurer may make any statement of intent relating to
157     a reimbursement that is necessary or desirable to comply with federal tax law.
158          (4) The Department of Transportation may enter into agreements related to the project
159     before the receipt of proceeds of bonds issued under this chapter.