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S.B. 2
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5 AN ACT RELATING TO CAPITAL INFRASTRUCTURE; AUTHORIZING THE ISSUANCE
6 AND SALE OF GENERAL OBLIGATION BONDS FOR CAPITAL FACILITIES, LAND
7 PURCHASES, COMPUTER SOFTWARE, COMPUTER HARDWARE, COMPUTER
8 SYSTEM DEVELOPMENT, BUILDINGS, AND RELATED FACILITIES; SPECIFYING
9 THE USE OF BOND PROCEEDS AND THE MANNER OF ISSUANCE; IMPOSING AND
10 ABATING A PROPERTY TAX; CREATING SINKING FUNDS; APPROVING THE
11 ISSUANCE OF CERTAIN OBLIGATIONS BY THE STATE BUILDING OWNERSHIP
12 AUTHORITY; AUTHORIZING OTHER CAPITAL FACILITY EXPENDITURES;
13 PROVIDING FOR RELATED MATTERS; AND MAKING TECHNICAL CORRECTIONS.
14 This act affects sections of Utah Code Annotated 1953 as follows:
15 AMENDS:
16 63B-5-102, as enacted by Chapter 335, Laws of Utah 1996
17 ENACTS:
18 63B-6-101, Utah Code Annotated 1953
19 63B-6-102, Utah Code Annotated 1953
20 63B-6-103, Utah Code Annotated 1953
21 63B-6-104, Utah Code Annotated 1953
22 63B-6-105, Utah Code Annotated 1953
23 63B-6-106, Utah Code Annotated 1953
24 63B-6-107, Utah Code Annotated 1953
25 63B-6-108, Utah Code Annotated 1953
26 63B-6-109, Utah Code Annotated 1953
27 63B-6-110, Utah Code Annotated 1953
1 63B-6-111, Utah Code Annotated 1953
2 63B-6-112, Utah Code Annotated 1953
3 63B-6-113, Utah Code Annotated 1953
4 63B-6-114, Utah Code Annotated 1953
5 63B-6-115, Utah Code Annotated 1953
6 63B-6-116, Utah Code Annotated 1953
7 63B-6-117, Utah Code Annotated 1953
8 63B-6-401, Utah Code Annotated 1953
9 63B-6-402, Utah Code Annotated 1953
10 63B-6-403, Utah Code Annotated 1953
11 63B-6-404, Utah Code Annotated 1953
12 63B-6-405, Utah Code Annotated 1953
13 63B-6-406, Utah Code Annotated 1953
14 63B-6-407, Utah Code Annotated 1953
15 63B-6-408, Utah Code Annotated 1953
16 63B-6-409, Utah Code Annotated 1953
17 63B-6-410, Utah Code Annotated 1953
18 63B-6-411, Utah Code Annotated 1953
19 63B-6-412, Utah Code Annotated 1953
20 63B-6-413, Utah Code Annotated 1953
21 63B-6-414, Utah Code Annotated 1953
22 63B-6-415, Utah Code Annotated 1953
23 63B-6-416, Utah Code Annotated 1953
24 63B-6-417, Utah Code Annotated 1953
25 63B-6-501, Utah Code Annotated 1953
26 63B-6-502, Utah Code Annotated 1953
27 Be it enacted by the Legislature of the state of Utah:
28 Section 1. Section 63B-5-102 is amended to read:
29 63B-5-102. Maximum amount -- Projects authorized.
30 (1) The total amount of bonds issued under this part may not exceed $32,000,000.
31 (2) (a) Proceeds from the issuance of bonds shall be provided to the division to provide
1 funds to pay all or part of the cost of acquiring and constructing the projects listed in this
2 subsection.
3 (b) These costs may include the cost of acquiring land, interests in land, easements and
4 rights-of-way, improving sites, and acquiring, constructing, equipping, and furnishing facilities
5 and all structures, roads, parking facilities, utilities, and improvements necessary, incidental, or
6 convenient to the facilities, interest estimated to accrue on these bonds during the period to be
7 covered by construction of the projects plus a period of six months after the end of the construction
8 period, and all related engineering, architectural, and legal fees.
9 (c) For the division, proceeds shall be provided for the following:
10
11 Alterations, Repairs, and Improvements $7,600,000
12 TOTAL IMPROVEMENTS $7,600,000
13
14 ESTIMATED
15 OPERATIONS AND
16 PROJECT AMOUNT MAINTENANCE
17 DESCRIPTION FUNDED COSTS
18 Corrections - Gunnison (192 Beds) $13,970,000 $210,000
19 [
20 University of Utah -- Gardner Hall $7,361,000 $203,900
21 Weber State University Davis Campus $771,000 None
22 -- Land Purchase
23 Department of Workforce Services Cedar City $148,000 None
24 -- Land Purchase
25 College of Eastern Utah Durrant School $400,000 None
26 -- Land Purchase
27 State Hospital - Forensic Design (200 beds) $750,000 $575,000
28 TOTAL CAPITAL AND ECONOMIC DEVELOPMENT $23,400,000
29 TOTAL IMPROVEMENTS AND
30 CAPITAL AND ECONOMIC DEVELOPMENT $31,000,000
31 (d) For purposes of this section, operations and maintenance costs:
1 (i) are estimates only;
2 (ii) may include any operations and maintenance costs already funded in existing agency
3 budgets; and
4 (iii) are not commitments by this Legislature or future Legislatures to fund those
5 operations and maintenance costs.
6 (3) (a) The amounts funded as listed in Subsection (2) are estimates only and do not
7 constitute a limitation on the amount that may be expended for any project.
8 (b) The board may revise these estimates and redistribute the amount estimated for a
9 project among the projects authorized.
10 (c) The commission, by resolution and in consultation with the board, may delete one or
11 more projects from this list if the inclusion of that project or those projects in the list could be
12 construed to violate state law or federal law or regulation.
13 (4) (a) The division may enter into agreements related to these projects before the receipt
14 of proceeds of bonds issued under this chapter.
15 (b) The division shall make those expenditures from unexpended and unencumbered
16 building funds already appropriated to the Capital Projects Fund.
17 (c) The division shall reimburse the Capital Projects Fund upon receipt of the proceeds of
18 bonds issued under this chapter.
19 (d) The commission may, by resolution, make any statement of intent relating to that
20 reimbursement that is necessary or desirable to comply with federal tax law.
21 (5) (a) For those projects for which only partial funding is provided in Subsection (2), it
22 is the intent of the Legislature that the balance necessary to complete the projects be addressed by
23 future Legislatures, either through appropriations or through the issuance or sale of bonds.
24 (b) For those phased projects, the division may enter into contracts for amounts not to
25 exceed the anticipated full project funding but may not allow work to be performed on those
26 contracts in excess of the funding already authorized by the Legislature.
27 (c) Those contracts shall contain a provision for termination of the contract for the
28 convenience of the state as required by Section 63-56-40.
29 (d) It is also the intent of the Legislature that this authorization to the division does not
30 bind future Legislatures to fund projects initiated from this authorization.
31 Section 2. Section 63B-6-101 is enacted to read:
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3 63B-6-101. State Bonding Commission authorized to issue general obligation bonds.
4 The commission created under Section 63B-1-201 may issue and sell general obligation
5 bonds of the state pledging the full faith, credit, and resources of the state for the payment of the
6 principal of and interest on the bonds to provide funds to the division.
7 Section 3. Section 63B-6-102 is enacted to read:
8 63B-6-102. Maximum amount -- Projects authorized.
9 (1) The total amount of bonds issued under this part may not exceed $57,000,000.
10 (2) (a) Proceeds from the issuance of bonds shall be provided to the division to provide
11 funds to pay all or part of the cost of acquiring and constructing the projects listed in this
12 Subsection (2).
13 (b) These costs may include the cost of acquiring land, interests in land, easements and
14 rights-of-way, improving sites, and acquiring, constructing, equipping, and furnishing facilities
15 and all structures, roads, parking facilities, utilities, and improvements necessary, incidental, or
16 convenient to the facilities, interest estimated to accrue on these bonds during the period to be
17 covered by construction of the projects plus a period of six months after the end of the construction
18 period, and all related engineering, architectural, and legal fees.
19 (c) For the division, proceeds shall be provided for the following:
20
21 PROJECT DESCRIPTION AMOUNT ESTIMATED
22 FUNDED OPERATIONS
23 AND
24 MAINTENANCE
25 Youth Corrections - Carbon / Emery (18 beds) $2,298,100 $70,000
26 State Hospital - 100 bed Forensic Facility $13,800,700 $320,600
27 Utah State University - Widtsoe Hall $23,986,700 $750,200
28 Davis Applied Technology Center $6,344,900 $144,000
29 - Medical/Health Tech Addition
30 Southern Utah University -- Physical $1,100,000 $456,100
31 Education Building (Design)
1 Salt Lake Community College -- High $1,165,000 $718,500
2 Technology Building, 90th So. Campus (Design)
3 Department of Natural Resources - Antelope $3,600,000 None
4 Island Road
5 Sevier - Multi Purpose Center $1,500,000 None
6 Department of Natural Resources - Dead Horse $1,350,000 $5,700
7 Point Visitors Center
8 TOTAL CAPITAL AND ECONOMIC $55,145,400
9 DEVELOPMENT
10 (d) For purposes of this section, operations and maintenance costs:
11 (i) are estimates only;
12 (ii) may include any operations and maintenance costs already funded in existing agency
13 budgets; and
14 (iii) are not commitments by this Legislature or future Legislatures to fund those
15 operations and maintenance costs.
16 (3) (a) The amounts funded as listed in Subsection (2) are estimates only and do not
17 constitute a limitation on the amount that may be expended for any project.
18 (b) The board may revise these estimates and redistribute the amount estimated for a
19 project among the projects authorized.
20 (c) The commission, by resolution and in consultation with the board, may delete one or
21 more projects from this list if the inclusion of that project or those projects in the list could be
22 construed to violate state law or federal law or regulation.
23 (4) (a) The division may enter into agreements related to these projects before the receipt
24 of proceeds of bonds issued under this chapter.
25 (b) The division shall make those expenditures from unexpended and unencumbered
26 building funds already appropriated to the Capital Projects Fund.
27 (c) The division shall reimburse the Capital Projects Fund upon receipt of the proceeds of
28 bonds issued under this chapter.
29 (d) The commission may, by resolution, make any statement of intent relating to that
30 reimbursement that is necessary or desirable to comply with federal tax law.
31 (5) (a) For those projects for which only partial funding is provided in Subsection (2), it
1 is the intent of the Legislature that the balance necessary to complete the projects be addressed by
2 future Legislatures, either through appropriations or through the issuance or sale of bonds.
3 (b) For those phased projects, the division may enter into contracts for amounts not to
4 exceed the anticipated full project funding but may not allow work to be performed on those
5 contracts in excess of the funding already authorized by the Legislature.
6 (c) Those contracts shall contain a provision for termination of the contract for the
7 convenience of the state as required by Section 63-56-40.
8 (d) It is also the intent of the Legislature that this authorization to the division does not
9 bind future Legislatures to fund projects initiated from this authorization.
10 Section 4. Section 63B-6-103 is enacted to read:
11 63B-6-103. Use of bond proceeds for issuance and other costs.
12 The proceeds of bonds issued under this chapter shall be used for the purposes described
13 in Section 63B-6-102 and to pay all or part of any cost incident to the issuance and sale of the
14 bonds including, without limitation, printing, registration and transfer costs, legal fees, trustees'
15 fees, financial advisors' fees, and underwriters' discounts.
16 Section 5. Section 63B-6-104 is enacted to read:
17 63B-6-104. Manner of issuance -- Amounts, interest, and maturity.
18 (1) Bonds issued under this chapter may be authorized, sold, and issued at times and in a
19 manner determined by the commission by resolution.
20 (2) Bonds may be issued in one or more series, in amounts, and shall bear dates, interest
21 rate or rates, including a variable rate, and maturity dates as the commission determines by
22 resolution.
23 (3) A bond issued may not mature later than 20 years after the date of final passage of this
24 chapter.
25 Section 6. Section 63B-6-105 is enacted to read:
26 63B-6-105. Terms and conditions of sale -- Plan of financing -- Signatures --
27 Replacement -- Registration -- Federal rebate.
28 (1) In the issuance of bonds, the commission may determine by resolution:
29 (a) the manner of sale, including public or private sale;
30 (b) the terms and conditions of sale, including price, whether at, below, or above face
31 value;
1 (c) denominations;
2 (d) form;
3 (e) manner of execution;
4 (f) manner of authentication;
5 (g) place and medium of purchase;
6 (h) redemption terms; and
7 (i) other provisions and details it considers appropriate.
8 (2) The commission may by resolution adopt a plan of financing, which may include terms
9 and conditions of arrangements entered into by the commission on behalf of the state with
10 financial and other institutions for letters of credit, standby letters of credit, reimbursement
11 agreements, and remarketing, indexing, and tender agent agreements to secure the bonds, including
12 payment from any legally available source of fees, charges, or other amounts coming due under
13 the agreements entered into by the commission.
14 (3) (a) Any signature of a public official authorized by resolution of the commission to
15 sign the bonds may be a facsimile signature of that official imprinted, engraved, stamped, or
16 otherwise placed on the bonds.
17 (b) If all signatures of public officials on the bonds are facsimile signatures, provision shall
18 be made for a manual authenticating signature on the bonds by or on behalf of a designated
19 authentication agent.
20 (c) If an official ceases to hold office before delivery of the bonds signed by that official,
21 the signature or facsimile signature of the official is nevertheless valid for all purposes.
22 (d) A facsimile of the state seal may be imprinted, engraved, stamped, or otherwise placed
23 on the bonds.
24 (4) (a) The commission may enact resolutions providing for the replacement of lost,
25 destroyed, or mutilated bonds, or for the exchange of bonds after issuance for bonds of smaller or
26 larger denominations.
27 (b) Bonds in changed denominations shall:
28 (i) be exchanged for the original bonds in like aggregate principal amounts and in a
29 manner that prevents the duplication of interest; and
30 (ii) bear interest at the same rate, mature on the same date, and be as nearly as practicable
31 in the form of the original bonds.
1 (5) (a) Bonds may be registered as to both principal and interest or may be in a book entry
2 form under which the right to principal and interest may be transferred only through a book entry.
3 (b) The commission may provide for the services and payment for the services of one or
4 more financial institutions or other entities or persons, or nominees, within or outside the state, for
5 the authentication, registration, transfer, including record, bookkeeping, or book entry functions,
6 exchange, and payment of the bonds.
7 (c) The records of ownership, registration, transfer, and exchange of the bonds, and of
8 persons to whom payment with respect to the obligations are made, are private records as provided
9 in Section 63-2-302 or protected records as provided in Section 63-2-304.
10 (d) The bonds and any evidences of participation interest in the bonds may be issued,
11 executed, authenticated, registered, transferred, exchanged, and otherwise made to comply with
12 Title 15, Chapter 7, Registered Public Obligations Act, or any other act of the Legislature relating
13 to the registration of obligations enacted to meet the requirements of Section 149 of the Internal
14 Revenue Code of 1986, as amended, or any successor to it, and applicable regulations.
15 (6) The commission may:
16 (a) by resolution, provide for payment to the United States of whatever amounts are
17 necessary to comply with Section 148 (f) of the Internal Revenue Code of 1986, as amended; and
18 (b) enter into agreements with financial and other institutions and attorneys to provide for:
19 (i) the calculation, holding, and payment of those amounts; and
20 (ii) payment from any legally available source of fees, charges, or other amounts coming
21 due under any agreements entered into by the commission.
22 Section 7. Section 63B-6-106 is enacted to read:
23 63B-6-106. Constitutional debt limitation.
24 (1) The commission may not issue bonds under this chapter in an amount that violates the
25 limitation described in Utah Constitution Article XIV, Section 1.
26 (2) For purposes of applying the debt limitation contained in Utah Constitution Article
27 XIV, Section 1, the value of the taxable property in Utah is considered to be 100% of the fair
28 market value of the taxable property of the state, as computed from the last assessment for state
29 purposes previous to the issuance of the bonds.
30 Section 8. Section 63B-6-107 is enacted to read:
31 63B-6-107. Tax levy -- Abatement of tax.
1 (1) Each year after issuance of the bonds and until all outstanding bonds are retired, there
2 is levied a direct annual tax on all real and personal property within the state subject to state
3 taxation, sufficient to pay:
4 (a) applicable bond redemption premiums, if any;
5 (b) interest on the bonds as it becomes due; and
6 (c) principal of the bonds as it becomes due.
7 (2) (a) The State Tax Commission shall fix the rate of the direct annual tax levy each year.
8 (b) The tax shall be collected and the proceeds applied as provided in this chapter.
9 (3) The direct annual tax imposed under this section is abated to the extent money is
10 available from sources, other than ad valorem taxes in the sinking fund, for the payment of bond
11 interest, principal, and redemption premiums.
12 Section 9. Section 63B-6-108 is enacted to read:
13 63B-6-108. Creation of sinking fund.
14 (1) There is created a sinking fund, to be administered by the state treasurer, entitled the
15 "1997 General Obligation Bonds Sinking Fund."
16 (2) All monies deposited in the sinking fund, from whatever source, shall be used to pay
17 debt service on the bonds.
18 (3) The proceeds of all taxes levied under this chapter are appropriated to this fund.
19 (4) The state treasurer may create separate accounts within the sinking fund for each series
20 of bonds issued.
21 Section 10. Section 63B-6-109 is enacted to read:
22 63B-6-109. Payment of interest, principal, and redemption premiums.
23 (1) The Division of Finance shall draw warrants on the state treasury before any interest,
24 principal, or redemption premiums become due on the bonds.
25 (2) After receipt of the warrants, the state treasurer shall:
26 (a) promptly pay the warrants from funds within the sinking fund; and
27 (b) immediately transmit the amount paid to the paying agent for the bonds.
28 Section 11. Section 63B-6-110 is enacted to read:
29 63B-6-110. Investment of sinking fund money.
30 (1) The state treasurer may, by following the procedures and requirements of Title 51,
31 Chapter 7, State Money Management Act, invest any money contained in the sinking fund until
1 it is needed for the purposes for which the fund is created.
2 (2) Unless otherwise provided in the resolution of the commission authorizing the issuance
3 of bonds under this chapter, the treasurer shall retain all income from the investment of any money
4 contained in the sinking fund in the sinking fund and use it for the payment of debt service on the
5 bonds.
6 Section 12. Section 63B-6-111 is enacted to read:
7 63B-6-111. Bond proceeds -- Deposits -- Investment -- Disposition of investment
8 income and unexpended proceeds.
9 (1) (a) Proceeds from the sale of bonds issued under this chapter shall be deposited within
10 one or more accounts as determined by resolution of the commission.
11 (b) The state treasurer shall administer and maintain these accounts unless otherwise
12 provided by the commission by resolution.
13 (c) The commission by resolution may provide for the deposit of these monies with a
14 trustee and the administration, disposition, or investment of these monies by this trustee.
15 (2) (a) The commission by resolution shall provide for the kinds of investments in which
16 the proceeds of bonds issued under this chapter may be invested.
17 (b) Income from the investment of proceeds of bonds issued under this chapter shall be
18 applied as provided by resolution of the commission.
19 (3) Any unexpended bond proceeds issued under this chapter shall be deposited, upon
20 completion of the purposes for which the bonds were issued, in the sinking fund, unless otherwise
21 provided in the resolution of the commission authorizing the issuance of bonds under this chapter.
22 Section 13. Section 63B-6-112 is enacted to read:
23 63B-6-112. Refunding of bonds.
24 (1) The commission may provide for the refunding of any of the bonds in accordance with
25 Title 11, Chapter 27, Utah Refunding Bond Act.
26 (2) For purposes of Title 11, Chapter 27, Utah Refunding Bond Act, the state of Utah is
27 considered the public body and the commission its governing body.
28 Section 14. Section 63B-6-113 is enacted to read:
29 63B-6-113. Certification of satisfaction of conditions precedent -- Conclusiveness.
30 (1) The commission may not issue any bond under this chapter until it finds and certifies
31 that all conditions precedent to issuance of the bonds have been satisfied.
1 (2) A recital on any bond of this finding and certification conclusively establishes the
2 completion and satisfaction of all conditions precedent.
3 Section 15. Section 63B-6-114 is enacted to read:
4 63B-6-114. Tax exemption.
5 The bonds issued under this chapter, any interest paid on the bonds, and any income from
6 the bonds are not taxable in this state for any purpose, except for the corporate franchise tax.
7 Section 16. Section 63B-6-115 is enacted to read:
8 63B-6-115. Legal investment status.
9 Bonds issued under this chapter are legal investments for all state trust funds, insurance
10 companies, banks, trust companies, and the State School Fund and may be used as collateral to
11 secure legal obligations.
12 Section 17. Section 63B-6-116 is enacted to read:
13 63B-6-116. Publication of resolution or notice -- Limitation on actions to contest
14 legality.
15 (1) The commission may:
16 (a) publish any resolution it adopts under this chapter once in a newspaper having general
17 circulation in Utah; or
18 (b) in lieu of publishing the entire resolution, publish a notice of bonds to be issued, titled
19 as such, containing the information required in Subsection 11-14-21(3).
20 (2) (a) Any interested person, for 30 days after the date of publication, may contest:
21 (i) the legality of the resolution;
22 (ii) any of the bonds authorized under it; or
23 (iii) any of the provisions made for the security and repayment of the bonds.
24 (b) After 30 days, a person may not contest the legality of the resolution, any of the bonds
25 authorized under it, or any of the provisions made for the security and repayment of the bonds for
26 any cause.
27 Section 18. Section 63B-6-117 is enacted to read:
28 63B-6-117. Report to Legislature.
29 The governor shall report the commission's proceedings to each annual general session of
30 the Legislature in his budget for as long as bonds issued under this chapter remain outstanding.
31 Section 19. Section 63B-6-401 is enacted to read:
1
2 63B-6-401. State Bonding Commission authorized to issue general obligation bonds.
3 The commission created under Section 63B-1-201 may issue and sell general obligation
4 bonds of the state pledging the full faith, credit, and resources of the state for the payment of the
5 principal of and interest on the bonds to provide funds to the State Tax Commission.
6 Section 20. Section 63B-6-402 is enacted to read:
7 63B-6-402. Maximum amount -- Projects authorized.
8 (1) The total amount of bonds issued under this part may not exceed $9,000,000.
9 (2) (a) Proceeds from the issuance of bonds shall be provided to the State Tax Commission
10 to provide funds to pay all or part of the cost of the project described in this subsection.
11 (b) These costs may include:
12 (i) the cost of acquisition, development, and conversion of computer hardware and
13 software for motor vehicle fee systems and tax collection and accounting systems of the state;
14 (ii) interest estimated to accrue on these bonds during the period to be covered by that
15 development and conversion, plus a period of six months following the completion of the
16 development and conversion; and
17 (iii) all related engineering, consulting, and legal fees.
18 (c) For the State Tax Commission, proceeds shall be provided for the following:
19 PROJECT AMOUNT
20 DESCRIPTION FUNDED
21 UTAX SYSTEMS $8,500,000
22 ACQUISITION AND DEVELOPMENT
23 (3) The commission, by resolution may decline to issue bonds if the project could be
24 construed to violate state law or federal law or regulation.
25 (4) (a) For this project, for which only partial funding is provided in Subsection (2), it is
26 the intent of the Legislature that the balance necessary to complete the project be addressed by
27 future Legislatures, either through appropriations or through the issuance or sale of bonds.
28 (b) The State Tax Commission may enter into contracts for amounts not to exceed the
29 anticipated full project funding but may not allow work to be performed on those contracts in
30 excess of the funding already authorized by the Legislature.
31 (c) Those contracts shall contain a provision for termination of the contract for the
1 convenience of the state as required by Section 63-56-40.
2 (d) It is also the intent of the Legislature that this authorization to the State Tax
3 Commission does not bind future Legislatures to fund projects initiated from this authorization.
4 Section 21. Section 63B-6-403 is enacted to read:
5 63B-6-403. Use of bond proceeds for issuance and other costs.
6 The proceeds of bonds issued under this chapter shall be used for the purposes described
7 in Section 63B-6-402 and to pay all or part of any cost incident to the issuance and sale of the
8 bonds including, without limitation, printing, registration and transfer costs, legal fees, trustees'
9 fees, financial advisors' fees, and underwriters' discounts.
10 Section 22. Section 63B-6-404 is enacted to read:
11 63B-6-404. Manner of issuance -- Amounts, interest, and maturity.
12 (1) Bonds issued under this chapter may be authorized, sold, and issued at times and in a
13 manner determined by the commission by resolution.
14 (2) Bonds may be issued in one or more series, in amounts, and shall bear dates, interest
15 rate or rates, including a variable rate, and maturity dates as the commission determines by
16 resolution.
17 (3) A bond issued may not mature later than 20 years after the date of final passage of this
18 chapter.
19 Section 23. Section 63B-6-405 is enacted to read:
20 63B-6-405. Terms and conditions of sale -- Plan of financing -- Signatures --
21 Replacement -- Registration -- Federal rebate.
22 (1) In the issuance of bonds, the commission may determine by resolution:
23 (a) the manner of sale, including public or private sale;
24 (b) the terms and conditions of sale, including price, whether at, below, or above face
25 value;
26 (c) denominations;
27 (d) form;
28 (e) manner of execution;
29 (f) manner of authentication;
30 (g) place and medium of purchase;
31 (h) redemption terms; and
1 (i) other provisions and details it considers appropriate.
2 (2) The commission may by resolution adopt a plan of financing, which may include terms
3 and conditions of arrangements entered into by the commission on behalf of the state with
4 financial and other institutions for letters of credit, standby letters of credit, reimbursement
5 agreements, and remarketing, indexing, and tender agent agreements to secure the bonds, including
6 payment from any legally available source of fees, charges, or other amounts coming due under
7 the agreements entered into by the commission.
8 (3) (a) Any signature of a public official authorized by resolution of the commission to
9 sign the bonds may be a facsimile signature of that official imprinted, engraved, stamped, or
10 otherwise placed on the bonds.
11 (b) If all signatures of public officials on the bonds are facsimile signatures, provision shall
12 be made for a manual authenticating signature on the bonds by or on behalf of a designated
13 authentication agent.
14 (c) If an official ceases to hold office before delivery of the bonds signed by that official,
15 the signature or facsimile signature of the official is nevertheless valid for all purposes.
16 (d) A facsimile of the state seal may be imprinted, engraved, stamped, or otherwise placed
17 on the bonds.
18 (4) (a) The commission may enact resolutions providing for the replacement of lost,
19 destroyed, or mutilated bonds, or for the exchange of bonds after issuance for bonds of smaller or
20 larger denominations.
21 (b) Bonds in changed denominations shall:
22 (i) be exchanged for the original bonds in like aggregate principal amounts and in a
23 manner that prevents the duplication of interest; and
24 (ii) bear interest at the same rate, mature on the same date, and be as nearly as practicable
25 in the form of the original bonds.
26 (5) (a) Bonds may be registered as to both principal and interest or may be in a book entry
27 form under which the right to principal and interest may be transferred only through a book entry.
28 (b) The commission may provide for the services and payment for the services of one or
29 more financial institutions or other entities or persons, or nominees, within or outside the state, for
30 the authentication, registration, transfer, including record, bookkeeping, or book entry functions,
31 exchange, and payment of the bonds.
1 (c) The records of ownership, registration, transfer, and exchange of the bonds, and of
2 persons to whom payment with respect to the obligations are made, are private records as provided
3 in Section 63-2-302 or protected records as provided in Section 63-2-304.
4 (d) The bonds and any evidences of participation interest in the bonds may be issued,
5 executed, authenticated, registered, transferred, exchanged, and otherwise made to comply with
6 Title 15, Chapter 7, Registered Public Obligations Act, or any other act of the Legislature relating
7 to the registration of obligations enacted to meet the requirements of Section 149 of the Internal
8 Revenue Code of 1986, as amended, or any successor to it, and applicable regulations.
9 (6) The commission may:
10 (a) by resolution, provide for payment to the United States of whatever amounts are
11 necessary to comply with Section 148 (f) of the Internal Revenue Code of 1986, as amended; and
12 (b) enter into agreements with financial and other institutions and attorneys to provide for:
13 (i) the calculation, holding, and payment of those amounts; and
14 (ii) payment from any legally available source of fees, charges, or other amounts coming
15 due under any agreements entered into by the commission.
16 Section 24. Section 63B-6-406 is enacted to read:
17 63B-6-406. Constitutional debt limitation.
18 (1) The commission may not issue bonds under this chapter in an amount that violates the
19 limitation described in Utah Constitution Article XIV, Section 1.
20 (2) For purposes of applying the debt limitation contained in Utah Constitution Article
21 XIV, Section 1, the value of the taxable property in Utah is considered to be 100% of the fair
22 market value of the taxable property of the state, as computed from the last assessment for state
23 purposes previous to the issuance of the bonds.
24 Section 25. Section 63B-6-407 is enacted to read:
25 63B-6-407. Tax levy -- Abatement of tax.
26 (1) Each year after issuance of the bonds and until all outstanding bonds are retired, there
27 is levied a direct annual tax on all real and personal property within the state subject to state
28 taxation, sufficient to pay:
29 (a) applicable bond redemption premiums, if any;
30 (b) interest on the bonds as it becomes due; and
31 (c) principal of the bonds as it becomes due.
1 (2) (a) The State Tax Commission shall fix the rate of the direct annual tax levy each year.
2 (b) The tax shall be collected and the proceeds applied as provided in this chapter.
3 (3) The direct annual tax imposed under this section is abated to the extent money is
4 available from sources, other than ad valorem taxes in the sinking fund, for the payment of bond
5 interest, principal, and redemption premiums.
6 Section 26. Section 63B-6-408 is enacted to read:
7 63B-6-408. Creation of sinking fund.
8 (1) There is created a sinking fund, to be administered by the state treasurer, entitled the
9 "1997 General Obligation Project Bonds Sinking Fund."
10 (2) All monies deposited in the sinking fund, from whatever source, shall be used to pay
11 debt service on the bonds.
12 (3) The proceeds of all taxes levied under this chapter are appropriated to this fund.
13 (4) The state treasurer may create separate accounts within the sinking fund for each series
14 of bonds issued.
15 Section 27. Section 63B-6-409 is enacted to read:
16 63B-6-409. Payment of interest, principal, and redemption premiums.
17 (1) The Division of Finance shall draw warrants on the state treasury before any interest,
18 principal, or redemption premiums become due on the bonds.
19 (2) After receipt of the warrants, the state treasurer shall:
20 (a) promptly pay the warrants from funds within the sinking fund; and
21 (b) immediately transmit the amount paid to the paying agent for the bonds.
22 Section 28. Section 63B-6-410 is enacted to read:
23 63B-6-410. Investment of sinking fund money.
24 (1) The state treasurer may, by following the procedures and requirements of Title 51,
25 Chapter 7, State Money Management Act, invest any money contained in the sinking fund until
26 it is needed for the purposes for which the fund is created.
27 (2) Unless otherwise provided in the resolution of the commission authorizing the issuance
28 of bonds under this chapter, the treasurer shall retain all income from the investment of any money
29 contained in the sinking fund in the sinking fund and use it for the payment of debt service on the
30 bonds.
31 Section 29. Section 63B-6-411 is enacted to read:
1 63B-6-411. Bond proceeds -- Deposits -- Investment -- Disposition of investment
2 income and unexpended proceeds.
3 (1) (a) Proceeds from the sale of bonds issued under this chapter shall be deposited within
4 one or more accounts as determined by resolution of the commission.
5 (b) The state treasurer shall administer and maintain these accounts unless otherwise
6 provided by the commission by resolution.
7 (c) The commission by resolution may provide for the deposit of these monies with a
8 trustee and the administration, disposition, or investment of these monies by this trustee.
9 (2) (a) The commission by resolution shall provide for the kinds of investments in which
10 the proceeds of bonds issued under this chapter may be invested.
11 (b) Income from the investment of proceeds of bonds issued under this chapter shall be
12 applied as provided by resolution of the commission.
13 (3) Any unexpended bond proceeds issued under this chapter shall be deposited, upon
14 completion of the purposes for which the bonds were issued, in the sinking fund, unless otherwise
15 provided in the resolution of the commission authorizing the issuance of bonds under this chapter.
16 Section 30. Section 63B-6-412 is enacted to read:
17 63B-6-412. Refunding of bonds.
18 (1) The commission may provide for the refunding of any of the bonds in accordance with
19 Title 11, Chapter 27, Utah Refunding Bond Act.
20 (2) For purposes of Title 11, Chapter 27, Utah Refunding Bond Act, the state of Utah is
21 considered the public body and the commission its governing body.
22 Section 31. Section 63B-6-413 is enacted to read:
23 63B-6-413. Certification of satisfaction of conditions precedent -- Conclusiveness.
24 (1) The commission may not issue any bond under this chapter until it finds and certifies
25 that all conditions precedent to issuance of the bonds have been satisfied.
26 (2) A recital on any bond of this finding and certification conclusively establishes the
27 completion and satisfaction of all conditions precedent.
28 Section 32. Section 63B-6-414 is enacted to read:
29 63B-6-414. Tax exemption.
30 The bonds issued under this chapter, any interest paid on the bonds, and any income from
31 the bonds are not taxable in this state for any purpose, except for the corporate franchise tax.
1 Section 33. Section 63B-6-415 is enacted to read:
2 63B-6-415. Legal investment status.
3 Bonds issued under this chapter are legal investments for all state trust funds, insurance
4 companies, banks, trust companies, and the State School Fund and may be used as collateral to
5 secure legal obligations.
6 Section 34. Section 63B-6-416 is enacted to read:
7 63B-6-416. Publication of resolution or notice -- Limitation on actions to contest
8 legality.
9 (1) The commission may:
10 (a) publish any resolution it adopts under this chapter once in a newspaper having general
11 circulation in Utah; or
12 (b) in lieu of publishing the entire resolution, publish a notice of bonds to be issued, titled
13 as such, containing the information required in Subsection 11-14-21(3).
14 (2) (a) Any interested person, for 30 days after the date of publication, may contest:
15 (i) the legality of the resolution;
16 (ii) any of the bonds authorized under it; or
17 (iii) any of the provisions made for the security and repayment of the bonds.
18 (b) After 30 days, a person may not contest the legality of the resolution, any of the bonds
19 authorized under it, or any of the provisions made for the security and repayment of the bonds for
20 any cause.
21 Section 35. Section 63B-6-417 is enacted to read:
22 63B-6-417. Report to Legislature.
23 The governor shall report the commission's proceedings to each annual general session of
24 the Legislature in his budget for as long as bonds issued under this chapter remain outstanding.
25 Section 36. Section 63B-6-501 is enacted to read:
26
27 63B-6-501. Revenue bond authorizations.
28 (1) (a) It is the intent of the Legislature that:
29 (i) the State Board of Regents, on behalf of the University of Utah, issue, sell, and deliver
30 revenue bonds or other evidences of indebtedness of the University of Utah to borrow money on
31 the credit and income and revenues of the University of Utah, other than appropriations of the
1 Legislature, to finance the cost of constructing, furnishing, and equipping a renovation and
2 expansion of the Robert L. Rice Stadium; and
3 (ii) Olympic funds, University funds, and activity revenues be used as the primary revenue
4 sources for repayment of any obligation created under the authority of this Subsection (1).
5 (b) The bonds or other evidences of indebtedness authorized may provide up to
6 $50,000,000 together with other amounts necessary to pay costs of issuance, pay capitalized
7 interest, and fund any debt service reserve requirements.
8 (2) (a) The State Building Ownership Authority, under authority of Title 63, Chapter 9a,
9 State Building Ownership Authority Act, may issue or execute obligations or enter into or arrange
10 for a lease purchase agreement in which participation interests may be created to provide up to
11 $350,000 for the remodeling and completion of the Wasatch Mountain State Park Clubhouse for
12 the Division of Parks and Recreation, together with additional amounts necessary to pay costs of
13 issuance, pay capitalized interest, and fund any debt service reserve requirements.
14 (b) The State Building Ownership Authority shall work cooperatively with the Division
15 of Parks and Recreation to seek out the most cost effective and prudent lease purchase plan
16 available.
17 (c) It is the intent of the Legislature that park revenues be used as the primary revenue
18 sources for repayment of any obligation created under authority of this Subsection (2).
19 (3) It is the intent of the Legislature that:
20 (a) the Division of Facilities Construction and Management request proposals for the lease
21 purchase and operation of a privately constructed women's 400-bed, multicustody facility at the
22 Draper prison site;
23 (b) if the Division of Facilities Construction and Management determines that it is cost
24 beneficial to the state to have private ownership and financing of the facility, the division may
25 enter into a lease purchase agreement for the facility with a private entity in which participation
26 interests may be created;
27 (c) if the Division of Facilities Construction and Management determines that it is not cost
28 beneficial to the state to have private ownership and financing of the facility, the State Building
29 Ownership Authority, under authority of Title 63, Chapter 9a, State Building Ownership Act, issue
30 or execute obligations or enter into or arrange for a lease purchase agreement in which
31 participation interests may be created to provide up to $27,057,600 for the construction of this
1 facility, together with additional amounts necessary for issuance costs, capitalized interest, and
2 debt service reserve requirements;
3 (d) the Division of Facilities Construction and Management lease land at the Draper prison
4 to the private entity or the authority for this project;
5 (e) the Department of Corrections enter into a contract with a private entity to manage the
6 facility; and
7 (f) the General Fund be used as the primary revenue source for repayment of any
8 obligation created under authority of this Subsection (3).
9 (4) It is the intent of the Legislature that:
10 (a) the State Building Ownership Authority, under the authority of Title 63, Chapter 9a,
11 State Building Ownership Act, may issue or execute obligations, or enter into or arrange for a lease
12 purchase agreement in which participation interests may be created, to provide up to $6,000,000
13 for the construction, or acquisition, or both, of liquor stores, together with additional amounts
14 necessary to pay costs of issuance, pay capitalized interest, and fund any debt service
15 requirements; and
16 (b) liquor control funds be used as the primary revenue source for the repayment of any
17 obligation created under authority of this Subsection (4).
18 Section 37. Section 63B-6-502 is enacted to read:
19 63B-6-502. Other capital facility authorizations and intent language.
20 (1) It is the intent of the Legislature that the University of Utah use institutional funds to
21 plan, design, and construct:
22 (a) the Health Science Lab Building under the supervision of the director of the Division
23 of Facilities Construction and Management unless supervisory authority is delegated by the
24 director; and
25 (b) the gymnastics facility under the supervision of the director of the Division of Facilities
26 Construction and Management unless supervisory authority is delegated by the director.
27 (2) It is the intent of the Legislature that Southern Utah University use institutional funds
28 to plan, design, and construct a science center addition under the supervision of the director of the
29 Division of Facilities Construction and Management unless supervisory authority is delegated by
30 the director.
31 (3) It is the intent of the Legislature that Utah Valley State College use institutional funds
1 to plan, design, and construct a student center addition under the supervision of the director of the
2 Division of Facilities Construction and Management unless supervisor authority is delegated by
3 the director.
4 (4) (a) It is the intent of the Legislature that the Division of Facilities Construction and
5 Management lease property at the Draper Prison to a private entity for the purpose of constructing
6 a waste sorting and transfer facility to employ inmates if the following conditions are satisfactorily
7 met:
8 (i) the private entity assures continuous employment of state inmates;
9 (ii) the lease with the private entity provides an appropriate return to the state;
10 (iii) the lease has an initial term of not-to-exceed 20 years;
11 (iv) the lease protects the state from all liability;
12 (v) the private entity guarantees that no adverse environmental impact will occur;
13 (vi) the state retains the right to:
14 (A) monitor the types of wastes that are processed; and
15 (B) prohibit the processing of types of wastes that are considered to be a risk to the state
16 or surrounding property uses;
17 (vii) the lease provides for adequate security arrangements;
18 (viii) the private entity assumes responsibility for any taxes or fees associated with the
19 facility; and
20 (ix) the private entity assumes responsibility for bringing utilities to the site and any state
21 expenditures for roads, etc. are considered in establishing the return to the state.
22 (b) Except as provided in Subsections (4)(c) and (d), the facility may be constructed
23 without direct supervision by the Division of Facilities Construction and Management.
24 (c) Notwithstanding Subsection (4)(b), the Division of Facilities Construction and
25 Management shall:
26 (i) review the design, plans, and specifications of the project; and
27 (ii) approve them if they are appropriate.
28 (d) Notwithstanding Subsection (4)(b), the Division of Facilities Construction and
29 Management may:
30 (i) require that the project be submitted to the local building official for plan review and
31 inspection; and
1 (ii) inspect the project.
2 (5) It is the intent of the Legislature that:
3 (a) the $221,497.86 authorized for the Capitol Hill Day Care Center in Subsection (4) of
4 Section 56, Chapter 304, Laws of Utah 1992, be used for general capital improvements; and
5 (b) the Building Board should, in allocating the $221,497.86, if appropriate under the
6 Board's normal allocation and prioritization process, give preference to projects for the Division
7 of Parks and Recreation.
Legislative Review Note
as of 2-27-97 2:40 PM
A limited legal review of this bill raises no obvious constitutional or statutory concerns.
Office of Legislative Research and General Counsel
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