Download Zipped Enrolled WP 6.1 HB0002.ZIP 34,365 Bytes
[Introduced][Status][Bill Documents][Fiscal Note] [Bills Directory]
H.B. 2 Enrolled
AN ACT RELATING TO CAPITAL INFRASTRUCTURE; AUTHORIZING THE ISSUANCE
AND SALE OF GENERAL OBLIGATION BONDS FOR CAPITAL FACILITIES, LAND
PURCHASES, COMPUTER SOFTWARE, COMPUTER HARDWARE, COMPUTER
SYSTEM DEVELOPMENT, BUILDINGS, AND RELATED FACILITIES; SPECIFYING
THE USE OF BOND PROCEEDS AND THE MANNER OF ISSUANCE; IMPOSING AND
ABATING A PROPERTY TAX; CREATING SINKING FUNDS; APPROVING THE
ISSUANCE OF CERTAIN OBLIGATIONS BY THE STATE BUILDING OWNERSHIP
AUTHORITY; AUTHORIZING OTHER CAPITAL FACILITY EXPENDITURES;
PROVIDING FOR RELATED MATTERS; ELIMINATING OR MODIFYING CERTAIN
FUNDING AUTHORIZATIONS FROM PRIOR YEARS; MODIFYING THE STATE
BUILDING OWNERSHIP AUTHORITY'S JURISDICTION; AND MAKING TECHNICAL
CORRECTIONS.
This act affects sections of Utah Code Annotated 1953 as follows:
AMENDS:
63-9a-3, as last amended by Chapter 12, Laws of Utah 1996, Second Special Session
63B-6-102, as enacted by Chapter 391, Laws of Utah 1997
63B-6-501, as enacted by Chapter 391, Laws of Utah 1997
ENACTS:
63B-7-101, Utah Code Annotated 1953
63B-7-102, Utah Code Annotated 1953
63B-7-103, Utah Code Annotated 1953
63B-7-104, Utah Code Annotated 1953
63B-7-105, Utah Code Annotated 1953
63B-7-106, Utah Code Annotated 1953
63B-7-107, Utah Code Annotated 1953
63B-7-108, Utah Code Annotated 1953
63B-7-109, Utah Code Annotated 1953
63B-7-110, Utah Code Annotated 1953
63B-7-111, Utah Code Annotated 1953
63B-7-112, Utah Code Annotated 1953
63B-7-113, Utah Code Annotated 1953
63B-7-114, Utah Code Annotated 1953
63B-7-115, Utah Code Annotated 1953
63B-7-116, Utah Code Annotated 1953
63B-7-117, Utah Code Annotated 1953
63B-7-401, Utah Code Annotated 1953
63B-7-402, Utah Code Annotated 1953
63B-7-403, Utah Code Annotated 1953
63B-7-404, Utah Code Annotated 1953
63B-7-405, Utah Code Annotated 1953
63B-7-406, Utah Code Annotated 1953
63B-7-407, Utah Code Annotated 1953
63B-7-408, Utah Code Annotated 1953
63B-7-409, Utah Code Annotated 1953
63B-7-410, Utah Code Annotated 1953
63B-7-411, Utah Code Annotated 1953
63B-7-412, Utah Code Annotated 1953
63B-7-413, Utah Code Annotated 1953
63B-7-414, Utah Code Annotated 1953
63B-7-415, Utah Code Annotated 1953
63B-7-416, Utah Code Annotated 1953
63B-7-417, Utah Code Annotated 1953
63B-7-501, Utah Code Annotated 1953
63B-7-502, Utah Code Annotated 1953
Be it enacted by the Legislature of the state of Utah:
Section 1. Section 63-9a-3 is amended to read:
63-9a-3. Definitions.
As used in this chapter:
(1) "Authority" means the State Building Ownership Authority created by this chapter.
(2) (a) "Facility" or "facilities" means any public building, structure, or property for any
governmental purpose of state bodies, and the related and appurtenant easements, rights-of-way,
improvements, paving, utilities, landscaping, parking facilities, and the lands and grounds, together
with the personal property necessary, convenient, or appurtenant thereto.
(b) "Facility" includes a golf course.
(3) (a) "State body" or "state bodies" means the state and any department, board,
commission, or agency of the state.
(b) Except as provided in Subsection (c), "state body" or "state bodies" does not mean
colleges and universities.
(c) "State body" or "state bodies" includes a college or university when the obligation to be
issued will finance the acquisition or construction of research facilities, housing facilities, or student
centers at the college or university.
(d) "State body" or "state bodies" includes applied technology centers.
(4) "Obligations" means any mortgage certificates, notes, debentures, interim certificates,
revenue bonds, or other evidences of financial indebtedness, but not including general obligation
bonds.
(5) "Mortgage" means any mortgage, trust deed, indenture, pledge agreement, assignment,
security agreement, financing statement, or other instrument pursuant to which property may be
encumbered as security for obligations.
(6) "Acquire or construct," "acquired or constructed," "constructed or acquired," "acquiring
or constructing," or "acquisition or construction" means any acquisition, construction, reconstruction,
restoration, enlargement, improvement, renovation, repair, replacement, equipping or furnishing, in
whole or in part, of a facility.
Section 2. Section 63B-6-102 is amended to read:
63B-6-102. Maximum amount -- Projects authorized.
(1) The total amount of bonds issued under this part may not exceed $57,000,000.
(2) (a) Proceeds from the issuance of bonds shall be provided to the division to provide
funds to pay all or part of the cost of acquiring and constructing the projects listed in this Subsection
(2).
(b) These costs may include the cost of acquiring land, interests in land, easements and
rights-of-way, improving sites, and acquiring, constructing, equipping, and furnishing facilities and
all structures, roads, parking facilities, utilities, and improvements necessary, incidental, or
convenient to the facilities, interest estimated to accrue on these bonds during the period to be
covered by construction of the projects plus a period of six months after the end of the construction
period, and all related engineering, architectural, and legal fees.
(c) For the division, proceeds shall be provided for the following:
ESTIMATED
OPERATIONS
AMOUNT AND
PROJECT DESCRIPTION FUNDED MAINTENANCE
Youth Corrections - Carbon / Emery (18 beds) $2,298,100 $70,000
State Hospital - 100 bed Forensic Facility $13,800,700 $320,600
Utah State University - Widtsoe Hall $23,986,700 $750,200
Davis Applied Technology Center $6,344,900 $144,000
- Medical/Health Tech Addition
Southern Utah University -- Physical $1,100,000 $456,100
Education Building (Design)
Salt Lake Community College -- High $1,165,000 $718,500
Technology Building, 90th So. Campus (Design)
Department of Natural Resources - Antelope $3,600,000 None
Island Road
[
- Region 1 72 Secured Bed Facility
Department of Natural Resources - Dead Horse $1,350,000 $5,700
Point Visitors Center
TOTAL CAPITAL AND ECONOMIC $55,145,400
DEVELOPMENT
(d) For purposes of this section, operations and maintenance costs:
(i) are estimates only;
(ii) may include any operations and maintenance costs already funded in existing agency
budgets; and
(iii) are not commitments by this Legislature or future Legislatures to fund those operations
and maintenance costs.
(3) (a) The amounts funded as listed in Subsection (2) are estimates only and do not
constitute a limitation on the amount that may be expended for any project.
(b) The board may revise these estimates and redistribute the amount estimated for a project
among the projects authorized.
(c) The commission, by resolution and in consultation with the board, may delete one or
more projects from this list if the inclusion of that project or those projects in the list could be
construed to violate state law or federal law or regulation.
(4) (a) The division may enter into agreements related to these projects before the receipt
of proceeds of bonds issued under this chapter.
(b) The division shall make those expenditures from unexpended and unencumbered
building funds already appropriated to the Capital Projects Fund.
(c) The division shall reimburse the Capital Projects Fund upon receipt of the proceeds of
bonds issued under this chapter.
(d) The commission may, by resolution, make any statement of intent relating to that
reimbursement that is necessary or desirable to comply with federal tax law.
(5) (a) For those projects for which only partial funding is provided in Subsection (2), it is
the intent of the Legislature that the balance necessary to complete the projects be addressed by
future Legislatures, either through appropriations or through the issuance or sale of bonds.
(b) For those phased projects, the division may enter into contracts for amounts not to
exceed the anticipated full project funding but may not allow work to be performed on those
contracts in excess of the funding already authorized by the Legislature.
(c) Those contracts shall contain a provision for termination of the contract for the
convenience of the state as required by Section 63-56-40.
(d) It is also the intent of the Legislature that this authorization to the division does not bind
future Legislatures to fund projects initiated from this authorization.
Section 3. Section 63B-6-501 is amended to read:
63B-6-501. Revenue bond authorizations.
(1) (a) It is the intent of the Legislature that:
(i) the State Board of Regents, on behalf of the University of Utah, issue, sell, and deliver
revenue bonds or other evidences of indebtedness of the University of Utah to borrow money on the
credit and income and revenues of the University of Utah, other than appropriations of the
Legislature, to finance the cost of constructing, furnishing, and equipping a renovation and
expansion of the Robert L. Rice Stadium; and
(ii) Olympic funds, University funds, and activity revenues be used as the primary revenue
sources for repayment of any obligation created under the authority of this Subsection (1).
(b) The bonds or other evidences of indebtedness authorized may provide up to $50,000,000
together with other amounts necessary to pay costs of issuance, pay capitalized interest, and fund
any debt service reserve requirements.
(2) (a) The State Building Ownership Authority, under authority of Title 63, Chapter 9a,
State Building Ownership Authority Act, may issue or execute obligations or enter into or arrange
for a lease purchase agreement in which participation interests may be created to provide up to
$350,000 for the remodeling and completion of the Wasatch Mountain State Park Clubhouse for the
Division of Parks and Recreation, together with additional amounts necessary to pay costs of
issuance, pay capitalized interest, and fund any debt service reserve requirements.
(b) The State Building Ownership Authority shall work cooperatively with the Division of
Parks and Recreation to seek out the most cost effective and prudent lease purchase plan available.
(c) It is the intent of the Legislature that park revenues be used as the primary revenue
sources for repayment of any obligation created under authority of this Subsection (2).
[
[
[
[
[
[
[
[
(a) the State Building Ownership Authority, under the authority of Title 63, Chapter 9a, State
Building Ownership Act, may issue or execute obligations, or enter into or arrange for a lease
purchase agreement in which participation interests may be created, to provide up to $6,000,000 for
the construction, or acquisition, or both, of liquor stores, together with additional amounts necessary
to pay costs of issuance, pay capitalized interest, and fund any debt service requirements; and
(b) liquor control funds be used as the primary revenue source for the repayment of any
obligation created under authority of this Subsection [
Section 4. Section 63B-7-101 is enacted to read:
63B-7-101. State Bonding Commission authorized to issue general obligation bonds.
The commission created under Section 63B-1-201 may issue and sell general obligation
bonds of the state pledging the full faith, credit, and resources of the state for the payment of the
principal of and interest on the bonds to provide funds to the division.
Section 5. Section 63B-7-102 is enacted to read:
63B-7-102. Maximum amount -- Projects authorized.
(1) The total amount of bonds issued under this part may not exceed $33,600,000.
(2) (a) Proceeds from the issuance of bonds shall be provided to the division to provide
funds to pay all or part of the cost of acquiring and constructing the projects listed in this Subsection
(2).
(b) These costs may include the cost of acquiring land, interests in land, easements and
rights-of-way, improving sites, and acquiring, constructing, equipping, and furnishing facilities and
all structures, roads, parking facilities, utilities, and improvements necessary, incidental, or
convenient to the facilities, interest estimated to accrue on these bonds during the period to be
covered by construction of the projects plus a period of six months after the end of the construction
period, and all related engineering, architectural, and legal fees.
(c) For the division, proceeds shall be provided for the following:
PROJECT AMOUNT ESTIMATED
DESCRIPTION FUNDED OPERATIONS AND
MAINTENANCE
Southern Utah University $4,600,000 $0
Land Purchase
Salt Lake Community College $3,980,700 $507,900
High Tech Center -
Jordan Campus
Children's Special Health Care $755,400 $247,600
Needs Clinic
Youth Corrections - 2 @ 32 beds $419,500 $276,000
(Vernal / Logan)
Corrections - Gunnison 288 bed $8,425,600 $0
and Lagoon Expansion
University of Utah - $445,500 $101,700
Cowles Building
Utah Valley State College - $1,166,300 $391,000
Technical Building
Sevier Valley Applied Technology $3,014,300 $443,300
Center - Shop Expansion
Division of Parks and Recreation $1,000,000 $22,700
Statewide Restrooms
Murray Highway Patrol Office $2,300,000 $81,000
Department of Workforce $2,780,000 $128,100
Services - Davis County
Employment Center
National Guard - $1,600,000 $72,000
American Fork/Lehi Armory
Courts - 4th District $1,368,000 $0
Land - Provo
Dixie College - Land $1,000,000 $0
TOTAL CAPITAL AND $32,855,300
ECONOMIC DEVELOPMENT
(d) For purposes of this section, operations and maintenance costs:
(i) are estimates only;
(ii) may include any operations and maintenance costs already funded in existing agency
budgets; and
(iii) are not commitments by this Legislature or future Legislatures to fund those operations
and maintenance costs.
(3) (a) The amounts funded as listed in Subsection (2) are estimates only and do not
constitute a limitation on the amount that may be expended for any project.
(b) The board may revise these estimates and redistribute the amount estimated for a project
among the projects authorized.
(c) The commission, by resolution and in consultation with the board, may delete one or
more projects from this list if the inclusion of that project or those projects in the list could be
construed to violate state law or federal law or regulation.
(4) (a) The division may enter into agreements related to these projects before the receipt
of proceeds of bonds issued under this chapter.
(b) The division shall make those expenditures from unexpended and unencumbered
building funds already appropriated to the Capital Projects Fund.
(c) The division shall reimburse the Capital Projects Fund upon receipt of the proceeds of
bonds issued under this chapter.
(d) The commission may, by resolution, make any statement of intent relating to that
reimbursement that is necessary or desirable to comply with federal tax law.
(5) (a) For those projects for which only partial funding is provided in Subsection (2), it is
the intent of the Legislature that the balance necessary to complete the projects be addressed by
future Legislatures, either through appropriations or through the issuance or sale of bonds.
(b) For those phased projects, the division may enter into contracts for amounts not to
exceed the anticipated full project funding but may not allow work to be performed on those
contracts in excess of the funding already authorized by the Legislature.
(c) Those contracts shall contain a provision for termination of the contract for the
convenience of the state as required by Section 63-56-40.
(d) It is also the intent of the Legislature that this authorization to the division does not bind
future Legislatures to fund projects initiated from this authorization.
Section 6. Section 63B-7-103 is enacted to read:
63B-7-103. Use of bond proceeds for issuance and other costs.
The proceeds of bonds issued under this chapter shall be used for the purposes described in
Section 63B-7-102 and to pay all or part of any cost incident to the issuance and sale of the bonds
including, without limitation, printing, registration and transfer costs, legal fees, trustees' fees,
financial advisors' fees, and underwriters' discounts.
Section 7. Section 63B-7-104 is enacted to read:
63B-7-104. Manner of issuance -- Amounts, interest, and maturity.
(1) Bonds issued under this chapter may be authorized, sold, and issued at times and in a
manner determined by the commission by resolution.
(2) Bonds may be issued in one or more series, in amounts, and shall bear dates, interest rate
or rates, including a variable rate, and maturity dates as the commission determines by resolution.
(3) A bond issued may not mature later than 20 years after the date of final passage of this
chapter.
Section 8. Section 63B-7-105 is enacted to read:
63B-7-105. Terms and conditions of sale -- Plan of financing -- Signatures --
Replacement -- Registration -- Federal rebate.
(1) In the issuance of bonds, the commission may determine by resolution:
(a) the manner of sale, including public or private sale;
(b) the terms and conditions of sale, including price, whether at, below, or above face value;
(c) denominations;
(d) form;
(e) manner of execution;
(f) manner of authentication;
(g) place and medium of purchase;
(h) redemption terms; and
(i) other provisions and details it considers appropriate.
(2) The commission may by resolution adopt a plan of financing, which may include terms
and conditions of arrangements entered into by the commission on behalf of the state with financial
and other institutions for letters of credit, standby letters of credit, reimbursement agreements, and
remarketing, indexing, and tender agent agreements to secure the bonds, including payment from
any legally available source of fees, charges, or other amounts coming due under the agreements
entered into by the commission.
(3) (a) Any signature of a public official authorized by resolution of the commission to sign
the bonds may be a facsimile signature of that official imprinted, engraved, stamped, or otherwise
placed on the bonds.
(b) If all signatures of public officials on the bonds are facsimile signatures, provision shall
be made for a manual authenticating signature on the bonds by or on behalf of a designated
authentication agent.
(c) If an official ceases to hold office before delivery of the bonds signed by that official, the
signature or facsimile signature of the official is nevertheless valid for all purposes.
(d) A facsimile of the state seal may be imprinted, engraved, stamped, or otherwise placed
on the bonds.
(4) (a) The commission may enact resolutions providing for the replacement of lost,
destroyed, or mutilated bonds, or for the exchange of bonds after issuance for bonds of smaller or
larger denominations.
(b) Bonds in changed denominations shall:
(i) be exchanged for the original bonds in like aggregate principal amounts and in a manner
that prevents the duplication of interest; and
(ii) bear interest at the same rate, mature on the same date, and be as nearly as practicable
in the form of the original bonds.
(5) (a) Bonds may be registered as to both principal and interest or may be in a book entry
form under which the right to principal and interest may be transferred only through a book entry.
(b) The commission may provide for the services and payment for the services of one or
more financial institutions or other entities or persons, or nominees, within or outside the state, for
the authentication, registration, transfer, including record, bookkeeping, or book entry functions,
exchange, and payment of the bonds.
(c) The records of ownership, registration, transfer, and exchange of the bonds, and of
persons to whom payment with respect to the obligations are made, are private records as provided
in Section 63-2-302 or protected records as provided in Section 63-2-304.
(d) The bonds and any evidences of participation interest in the bonds may be issued,
executed, authenticated, registered, transferred, exchanged, and otherwise made to comply with Title
15, Chapter 7, Registered Public Obligations Act, or any other act of the Legislature relating to the
registration of obligations enacted to meet the requirements of Section 149 of the Internal Revenue
Code of 1986, as amended, or any successor to it, and applicable regulations.
(6) The commission may:
(a) by resolution, provide for payment to the United States of whatever amounts are
necessary to comply with Section 148 (f) of the Internal Revenue Code of 1986, as amended; and
(b) enter into agreements with financial and other institutions and attorneys to provide for:
(i) the calculation, holding, and payment of those amounts; and
(ii) payment from any legally available source of fees, charges, or other amounts coming due
under any agreements entered into by the commission.
Section 9. Section 63B-7-106 is enacted to read:
63B-7-106. Constitutional debt limitation.
(1) The commission may not issue bonds under this chapter in an amount that violates the
limitation described in Utah Constitution Article XIV, Section 1.
(2) For purposes of applying the debt limitation contained in Utah Constitution Article XIV,
Section 1, the value of the taxable property in Utah is considered to be 100% of the fair market value
of the taxable property of the state, as computed from the last assessment for state purposes previous
to the issuance of the bonds.
Section 10. Section 63B-7-107 is enacted to read:
63B-7-107. Tax levy -- Abatement of tax.
(1) Each year after issuance of the bonds and until all outstanding bonds are retired, there
is levied a direct annual tax on all real and personal property within the state subject to state taxation,
sufficient to pay:
(a) applicable bond redemption premiums, if any;
(b) interest on the bonds as it becomes due; and
(c) principal of the bonds as it becomes due.
(2) (a) The State Tax Commission shall fix the rate of the direct annual tax levy each year.
(b) The tax shall be collected and the proceeds applied as provided in this chapter.
(3) The direct annual tax imposed under this section is abated to the extent money is
available from sources, other than ad valorem taxes in the sinking fund, for the payment of bond
interest, principal, and redemption premiums.
Section 11. Section 63B-7-108 is enacted to read:
63B-7-108. Creation of sinking fund.
(1) There is created a sinking fund, to be administered by the state treasurer, entitled the
"1998 General Obligation Bonds Sinking Fund."
(2) All monies deposited in the sinking fund, from whatever source, shall be used to pay debt
service on the bonds.
(3) The proceeds of all taxes levied under this chapter are appropriated to this fund.
(4) The state treasurer may create separate accounts within the sinking fund for each series
of bonds issued.
Section 12. Section 63B-7-109 is enacted to read:
63B-7-109. Payment of interest, principal, and redemption premiums.
(1) The Division of Finance shall draw warrants on the state treasury before any interest,
principal, or redemption premiums become due on the bonds.
(2) After receipt of the warrants, the state treasurer shall:
(a) promptly pay the warrants from funds within the sinking fund; and
(b) immediately transmit the amount paid to the paying agent for the bonds.
Section 13. Section 63B-7-110 is enacted to read:
63B-7-110. Investment of sinking fund money.
(1) The state treasurer may, by following the procedures and requirements of Title 51,
Chapter 7, State Money Management Act, invest any money contained in the sinking fund until it
is needed for the purposes for which the fund is created.
(2) Unless otherwise provided in the resolution of the commission authorizing the issuance
of bonds under this chapter, the treasurer shall retain all income from the investment of any money
contained in the sinking fund in the sinking fund and use it for the payment of debt service on the
bonds.
Section 14. Section 63B-7-111 is enacted to read:
63B-7-111. Bond proceeds -- Deposits -- Investment -- Disposition of investment income
and unexpended proceeds.
(1) (a) Proceeds from the sale of bonds issued under this chapter shall be deposited within
one or more accounts as determined by resolution of the commission.
(b) The state treasurer shall administer and maintain these accounts unless otherwise
provided by the commission by resolution.
(c) The commission by resolution may provide for the deposit of these monies with a trustee
and the administration, disposition, or investment of these monies by this trustee.
(2) (a) The commission by resolution shall provide for the kinds of investments in which the
proceeds of bonds issued under this chapter may be invested.
(b) Income from the investment of proceeds of bonds issued under this chapter shall be
applied as provided by resolution of the commission.
(3) Any unexpended bond proceeds issued under this chapter shall be deposited, upon
completion of the purposes for which the bonds were issued, in the sinking fund, unless otherwise
provided in the resolution of the commission authorizing the issuance of bonds under this chapter.
Section 15. Section 63B-7-112 is enacted to read:
63B-7-112. Refunding of bonds.
(1) The commission may provide for the refunding of any of the bonds in accordance with
Title 11, Chapter 27, Utah Refunding Bond Act.
(2) For purposes of Title 11, Chapter 27, Utah Refunding Bond Act, the state of Utah is
considered the public body and the commission its governing body.
Section 16. Section 63B-7-113 is enacted to read:
63B-7-113. Certification of satisfaction of conditions precedent -- Conclusiveness.
(1) The commission may not issue any bond under this chapter until it finds and certifies that
all conditions precedent to issuance of the bonds have been satisfied.
(2) A recital on any bond of this finding and certification conclusively establishes the
completion and satisfaction of all conditions precedent.
Section 17. Section 63B-7-114 is enacted to read:
63B-7-114. Tax exemption.
The bonds issued under this chapter, any interest paid on the bonds, and any income from
the bonds are not taxable in this state for any purpose, except for the corporate franchise tax.
Section 18. Section 63B-7-115 is enacted to read:
63B-7-115. Legal investment status.
Bonds issued under this chapter are legal investments for all state trust funds, insurance
companies, banks, trust companies, and the State School Fund and may be used as collateral to
secure legal obligations.
Section 19. Section 63B-7-116 is enacted to read:
63B-7-116. Publication of resolution or notice -- Limitation on actions to contest
legality.
(1) The commission may:
(a) publish any resolution it adopts under this chapter once in a newspaper having general
circulation in Utah; or
(b) in lieu of publishing the entire resolution, publish a notice of bonds to be issued, titled
as such, containing the information required in Subsection 11-14-21(3).
(2) (a) Any interested person, for 30 days after the date of publication, may contest:
(i) the legality of the resolution;
(ii) any of the bonds authorized under it; or
(iii) any of the provisions made for the security and repayment of the bonds.
(b) After 30 days, a person may not contest the legality of the resolution, any of the bonds
authorized under it, or any of the provisions made for the security and repayment of the bonds for
any cause.
Section 20. Section 63B-7-117 is enacted to read:
63B-7-117. Report to Legislature.
The governor shall report the commission's proceedings to each annual general session of
the Legislature in his budget for as long as bonds issued under this chapter remain outstanding.
Section 21. Section 63B-7-401 is enacted to read:
63B-7-401. State Bonding Commission authorized to issue general obligation bonds.
The commission created under Section 63B-1-201 may issue and sell general obligation
bonds of the state pledging the full faith, credit, and resources of the state for the payment of the
principal of and interest on the bonds to provide funds to the State Tax Commission.
Section 22. Section 63B-7-402 is enacted to read:
63B-7-402. Maximum amount -- Projects authorized.
(1) The total amount of bonds issued under this part may not exceed $16,500,000.
(2) (a) Proceeds from the issuance of bonds shall be provided to the State Tax Commission
to provide funds to pay all or part of the cost of the project described in this Subsection (2).
(b) These costs may include:
(i) the cost of acquisition, development, and conversion of computer hardware and software
for motor vehicle fee systems and tax collection and accounting systems of the state;
(ii) interest estimated to accrue on these bonds during the period to be covered by that
development and conversion, plus a period of six months following the completion of the
development and conversion; and
(iii) all related engineering, consulting, and legal fees.
(c) For the State Tax Commission, proceeds shall be provided for the following:
PROJECT AMOUNT
DESCRIPTION FUNDED
UTAX SYSTEMS $15,650,000
ACQUISITION AND DEVELOPMENT
(3) The commission, by resolution may decline to issue bonds if the project could be
construed to violate state law or federal law or regulation.
(4) (a) For this project, for which only partial funding is provided in Subsection (2), it is the
intent of the Legislature that the balance necessary to complete the project be addressed by future
Legislatures, either through appropriations or through the issuance or sale of bonds.
(b) The State Tax Commission may enter into contracts for amounts not to exceed the
anticipated full project funding but may not allow work to be performed on those contracts in excess
of the funding already authorized by the Legislature.
(c) Those contracts shall contain a provision for termination of the contract for the
convenience of the state as required by Section 63-56-40.
(d) It is also the intent of the Legislature that this authorization to the State Tax Commission
does not bind future Legislatures to fund projects initiated from this authorization.
Section 23. Section 63B-7-403 is enacted to read:
63B-7-403. Use of bond proceeds for issuance and other costs.
The proceeds of bonds issued under this chapter shall be used for the purposes described in
Section 63B-7-402 and to pay all or part of any cost incident to the issuance and sale of the bonds
including, without limitation, printing, registration and transfer costs, legal fees, trustees' fees,
financial advisors' fees, and underwriters' discounts.
Section 24. Section 63B-7-404 is enacted to read:
63B-7-404. Manner of issuance -- Amounts, interest, and maturity.
(1) Bonds issued under this chapter may be authorized, sold, and issued at times and in a
manner determined by the commission by resolution.
(2) Bonds may be issued in one or more series, in amounts, and shall bear dates, interest rate
or rates, including a variable rate, and maturity dates as the commission determines by resolution.
(3) A bond issued may not mature later than 20 years after the date of final passage of this
chapter.
Section 25. Section 63B-7-405 is enacted to read:
63B-7-405. Terms and conditions of sale -- Plan of financing -- Signatures --
Replacement -- Registration -- Federal rebate.
(1) In the issuance of bonds, the commission may determine by resolution:
(a) the manner of sale, including public or private sale;
(b) the terms and conditions of sale, including price, whether at, below, or above face value;
(c) denominations;
(d) form;
(e) manner of execution;
(f) manner of authentication;
(g) place and medium of purchase;
(h) redemption terms; and
(i) other provisions and details it considers appropriate.
(2) The commission may by resolution adopt a plan of financing, which may include terms
and conditions of arrangements entered into by the commission on behalf of the state with financial
and other institutions for letters of credit, standby letters of credit, reimbursement agreements, and
remarketing, in