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S.B. 2

             1     

2001 GENERAL OBLIGATION BOND AND

             2     
CAPITAL FACILITIES AUTHORIZATIONS

             3     
2001 GENERAL SESSION

             4     
STATE OF UTAH

             5     
Sponsor: Beverly Ann Evans

             6      This act authorizes issuance of state of Utah general obligation bonds and bond anticipation
             7      notes by the State Bonding Commission for capital facilities, buildings, and related facilities.
             8      This act defines the process and requirements for issuing the bonds and notes and specifies
             9      the use of the proceeds. This act imposes a statewide property tax and abates it. This act
             10      creates a sinking fund to pay debt service on the bonds. This act authorizes the issuance of
             11      other debt obligations by the State Building Ownership Authority. This act authorizes other
             12      capital facility expenditures. h This act modifies previously adopted intent language. h This act
             12a      exempts the bonds and notes authorized by this section
             13      from the statutory debt limit. This act provides for related matters and makes technical
             14      corrections.
             15      This act affects sections of Utah Code Annotated 1953 as follows:
             16      AMENDS:
             17          63-9a-6, as last amended by Chapter 21, Laws of Utah 1999
             18          63-38c-402, as last amended by Chapter 354, Laws of Utah 2000
             18a           h 63B-6-502, as enacted by Chapter 391, Laws of Utah 1997 h
             19      ENACTS:
             20          63B-10-101, Utah Code Annotated 1953
             21          63B-10-102, Utah Code Annotated 1953
             22          63B-10-103, Utah Code Annotated 1953
             23          63B-10-104, Utah Code Annotated 1953
             24          63B-10-105, Utah Code Annotated 1953
             25          63B-10-106, Utah Code Annotated 1953
             26          63B-10-107, Utah Code Annotated 1953
             27          63B-10-108, Utah Code Annotated 1953


             28          63B-10-109, Utah Code Annotated 1953
             29          63B-10-110, Utah Code Annotated 1953
             30          63B-10-111, Utah Code Annotated 1953
             31          63B-10-112, Utah Code Annotated 1953
             32          63B-10-113, Utah Code Annotated 1953
             33          63B-10-114, Utah Code Annotated 1953
             34          63B-10-115, Utah Code Annotated 1953
             35          63B-10-116, Utah Code Annotated 1953
             36          63B-10-117, Utah Code Annotated 1953
             37          63B-10-201, Utah Code Annotated 1953
             38          63B-10-202, Utah Code Annotated 1953
             39          63B-10-203, Utah Code Annotated 1953
             40          63B-10-204, Utah Code Annotated 1953
             41          63B-10-501, Utah Code Annotated 1953
             42          63B-10-601, Utah Code Annotated 1953
             43      Be it enacted by the Legislature of the state of Utah:
             44          Section 1. Section 63-9a-6 is amended to read:
             45           63-9a-6. Obligations issued by authority -- Limitation of liability on obligations --
             46      Limitation on amount of obligations issued.
             47          (1) (a) All obligations issued by the authority under this chapter shall be limited
             48      obligations of the authority and shall not constitute, nor give rise to, a general obligation or liability
             49      of, nor a charge against the general credit or taxing power of, this state or any of its political
             50      subdivisions.
             51          (b) This limitation shall be plainly stated upon all obligations.
             52          (2) (a) No authority obligations incurred under this section may be issued in an amount
             53      exceeding the difference between the total indebtedness of the state and an amount equal to 1 1/2%
             54      of the value of the taxable property of the state.
             55          (b) Debt issued under authority of [Title 63B, Chapter 6, Part 2, 1997 Highway General
             56      Obligation Bond Authorization, and Title 63B, Chapter 6, Part 3, 1997 Highway Bond
             57      Anticipation Note Authorization,] the following parts may not be included as part of the total
             58      indebtedness of the state of Utah in determining the debt limit established by this Subsection (2)[.]:


             59          (i) Title 63B, Chapter 6, Part 2, 1997 Highway General Obligation Bond Authorization;
             60          (ii) Title 63B, Chapter 6, Part 3, 1997 Highway Bond Anticipation Note Authorization;
             61          (iii) Title 63B, Chapter 7, Part 2, 1998 Highway General Obligation Bond Authorization;
             62          (iv) Title 63B, Chapter 7, Part 3, 1998 Highway Bond Anticipation Note Authorization;
             63          (v) Title 63B, Chapter 8, Part 2, 1999 Highway General Obligation Bond Authorization;
             64          (vi) Title 63B, Chapter 8, Part 3, 1999 Highway Bond Anticipation Note Authorization;
             65          (vii) Title 63B, Chapter 9, Part 2, 2000 Highway General Obligation Bond;
             66          (viii) Title 63B, Chapter 10, Part 1, 2001 Highway General Obligation Bond; and
             67          (ix) Title 63B, Chapter 10, Part 2, 2001 Highway General Obligation Bond Anticipation
             68      Notes Authorization.
             69          (c) Debt issued under authority of Section 63B-7-503 may not be included as part of the
             70      total indebtedness of the state in determining the debt limit established by this Subsection (2).
             71          (3) The obligations shall be authorized by resolution of the authority, following approval
             72      of the Legislature, and may:
             73          (a) be executed and delivered at any time, and from time to time, as the authority may
             74      determine;
             75          (b) be sold at public or private sale in the manner and at the prices, either at, in excess of,
             76      or below their face value and at such times as the authority may determine;
             77          (c) be in the form and denominations as the authority may determine;
             78          (d) be of the tenor as the authority may determine;
             79          (e) be in registered or bearer form either as to principal or interest or both;
             80          (f) be payable in those installments and at the times as the authority may determine;
             81          (g) be payable at the places, either within or without this state, as the authority may
             82      determine;
             83          (h) bear interest at the rate or rates, payable at the place or places, and evidenced in the
             84      manner, as the authority may determine;
             85          (i) be redeemable prior to maturity, with or without premium;
             86          (j) contain such other provisions not inconsistent with this chapter as shall be deemed for
             87      the best interests of the authority and provided for in the proceedings of the authority under which
             88      the bonds shall be authorized to be issued; and
             89          (k) bear facsimile signatures and seals.


             90          (4) The authority may pay any expenses, premiums or commissions, which it deems
             91      necessary or advantageous in connection with the authorization, sale, and issuance of these
             92      obligations, from the proceeds of the sale of the obligations or from the revenues of the projects
             93      involved.
             94          Section 2. Section 63-38c-402 is amended to read:
             95           63-38c-402. Debt limitation -- Vote requirement needed to exceed limitation --
             96      Exceptions.
             97          (1) (a) Except as provided in Subsection (1)(b), the outstanding general obligation debt
             98      of the state may not exceed 20% of the maximum allowable appropriations limit unless approved
             99      by more than a two-thirds vote of both houses of the Legislature.
             100          (b) Notwithstanding the limitation contained in Subsection (1)(a), debt issued under the
             101      authority of the following parts is not subject to the debt limitation established by this section:
             102          (i) Title 63B, Chapter 6, Part 2, 1997 Highway General Obligation Bond Authorization[,];
             103          (ii) Title 63B, Chapter 6, Part 3, 1997 Highway Bond Anticipation Note Authorization[,];
             104          (iii) Title 63B, Chapter 7, Part 2, 1998 Highway General Obligation Bond
             105      Authorization[,];
             106          (iv) Title 63B, Chapter 7, Part 3, 1998 Highway Bond Anticipation Note Authorization[,];
             107          (v) Title 63B, Chapter 8, Part 2, 1999 Highway General Obligation Bond Authorization[,];
             108          (vi) Title 63B, Chapter 8, Part 3, 1999 Highway Bond Anticipation Note Authorization[,];
             109          (vii) Title 63B, Chapter 9, Part 2, 2000 Highway General Obligation Bond[, is not subject
             110      to the debt limitation established by this section.];
             111          (viii) Title 63B, Chapter 10, Part 1, 2001 Highway General Obligation Bond; and
             112          (ix) Title 63B, Chapter 10, Part 2, 2001 Highway General Obligation Bond Anticipation
             113      Notes Authorization.
             114          (2) This section does not apply if contractual rights will be impaired.
             114a           h Section 3. Section 63B-6-502 is amended to read:
             114b          63B-6-502.   Other capital facility authorizations and intent language.
             114c          (1) It is the intent of the Legislature that the University of Utah use institutional funds to plan,
             114d      design, and construct:
             114e          (a) the Health Science Lab Building under the supervision of the director of the Division of
             114f      Facilities Construction and Management unless supervisory authority is delegated by the director;
             114g      and
             114h          (b) the gymnastics facility under the supervision of the director of the Division of Facilities
             114i      Construction and Management unless supervisory authority is delegated by the director.
             114j          (2) It is the intent of the Legislature that Southern Utah University use institutional funds to h


             114k      h plan, design, and construct a science center addition under the supervision of the director of
             114l      the Division of Facilities Construction and Management unless supervisory authority is delegated
             114m      by the director.
             114n          (3) It is the intent of the Legislature that Utah Valley State College use institutional funds to
             114o      plan, design, and construct a student center addition under the supervision of the director of the
             114p      Division of Facilities Construction and Management unless supervisory authority is delegated by the
             114q      director.
             114r          (4) (a) It is the intent of the Legislature that the Division of Facilities Construction and
             114s      Management lease property at the Draper Prison to a private entity for the purpose of constructing a
             114t      waste [sorting and transfer] RECYCLING facility to employ inmates if the following conditions are
             114u      satisfactorily met:
             114v          (i) the private entity assures continuous employment of state inmates;
             114w          (ii) the lease with the private entity provides an appropriate return to the state;
             114x          (iii) the lease has an initial term of not to exceed 20 years;
             114y          (iv) the lease protects the state from all liability;
             114z          (v) the private entity guarantees that no adverse environmental impact will occur;
             114aa          (vi) the state retains the right to:
             114ab          (A) monitor the types of wastes that are processed; and
             114ac          (B) prohibit the processing of types of wastes that are considered to be a risk to the state or
             114ad      surrounding property uses;
             114ae          (vii) the lease provides for adequate security arrangements;
             114af          (viii) the private entity assumes responsibility for any taxes or fees associated with the
             114ag      facility; and
             114ah          (ix) the private entity assumes responsibility for bringing utilities to the site and any state
             114ai      expenditures for roads, etc. are considered in establishing the return to the state.
             114aj          (b) Except as provided in Subsections (4)(c) and (d), the facility may be constructed without
             114ak      direct supervision by the Division of Facilities Construction and Management.
             114al          (c) Notwithstanding Subsection (4)(b), the Division of Facilities Construction and Management
             114am      shall:
             114an          (i) review the design, plans, and specifications of the project; and
             114ao          (ii) approve them if they are appropriate.
             114ap          (d) Notwithstanding Subsection (4)(b), the Division of Facilities Construction and Management
             114aq      may:
             114ar          (i) require that the project be submitted to the local building official for plan review and
             114as      inspection; and
             114at          (ii) inspect the project.
             114au          (5) It is the intent of the Legislature that:
             114av          (a) the $221,497.86 authorized for the Capitol Hill Day Care Center in Subsection (4) of Section
             114aw      56, Chapter 304, Laws of Utah 1992, be used for general capital improvements; and
             114ax          (b) the Building Board should, in allocating the $221,497.86, if appropriate under the h


             114ay      h Board's normal allocation and prioritization process, give preference to projects for the Division
             114az      of Parks and Recreation. h
             115          Section h [ 3. ] 4. h Section 63B-10-101 is enacted to read:
             116     
CHAPTER 10. 2001 BONDING

             117     
Part 1. 2001 Highway General Obligation Bond

             118          63B-10-101. State Bonding Commission authorized to issue general obligation bonds.
             119          The commission created under Section 63B-1-201 may issue and sell general obligation
             120      bonds of the state pledging the full faith, credit, and resources of the state for the payment of the


             121      principal of and interest on the bonds, to provide funds to the Department of Transportation.
             122          Section 4. Section 63B-10-102 is enacted to read:
             123          63B-10-102. Maximum amount -- Projects authorized.
             124          (1) The total amount of bonds issued under this part may not exceed $126,250,000.
             125          (2) (a) Proceeds from the issuance of bonds shall be provided to the Department of
             126      Transportation to provide funds to pay all or part of the costs of state highway construction or
             127      reconstruction projects.
             128          (b) These costs may include the cost of acquiring land, interests in land, easements and
             129      rights-of-way, improving sites, and making all improvements necessary, incidental, or convenient
             130      to the facilities, interest estimated to accrue on these bonds during the period to be covered by
             131      construction of the projects plus a period of six months after the end of the construction period,
             132      interest estimated to accrue on any bond anticipation notes issued under the authority of Chapter
             133      10, Part 2, 2001 Highway General Obligation Bond Anticipation Notes Authorization, and all
             134      related engineering, architectural, and legal fees.
             135          (3) The commission or the state treasurer may make any statement of intent relating to a
             136      reimbursement that is necessary or desirable to comply with federal tax law.
             137          (4) The Department of Transportation may enter into agreements related to that project
             138      before the receipt of proceeds of bonds issued under this chapter.
             139          Section 5. Section 63B-10-103 is enacted to read:
             140          63B-10-103. Bond proceeds may be used to pay costs of issuance and sale.
             141          The proceeds of bonds issued under this chapter shall be used for the purposes described
             142      in Section 63B-10-102 and to pay all or part of any cost incident to the issuance and sale of the
             143      bonds including, without limitation, printing, registration and transfer costs, legal fees, trustees'
             144      fees, financial advisors' fees, and underwriters' discount.
             145          Section 6. Section 63B-10-104 is enacted to read:
             146          63B-10-104. Manner of issuance -- Amounts, interest, and maturity.
             147          (1) Bonds issued under this chapter may be authorized, sold, and issued at times and in a
             148      manner determined by the commission by resolution.
             149          (2) Bonds may be issued in one or more series, in amounts, and shall bear dates, interest
             150      rates, including a variable rate, and maturity dates as the commission determines by resolution.
             151          (3) A bond issued may not mature later than 15 years after the date of final passage of this


             152      chapter.
             153          Section 7. Section 63B-10-105 is enacted to read:
             154          63B-10-105. Terms and conditions of sale -- Plan of financing -- Signatures --
             155      Replacement -- Registration -- Federal rebate.
             156          (1) In the issuance of bonds, the commission may determine by resolution:
             157          (a) the manner of sale, including public or private sale;
             158          (b) the terms and conditions of sale, including price, whether at, below, or above face
             159      value;
             160          (c) denominations;
             161          (d) form;
             162          (e) manner of execution;
             163          (f) manner of authentication;
             164          (g) place and medium of purchase;
             165          (h) redemption terms; and
             166          (i) other provisions and details it considers appropriate.
             167          (2) The commission may, by resolution, adopt a plan of financing, which may include
             168      terms and conditions of arrangements entered into by the commission on behalf of the state with
             169      financial and other institutions for letters of credit, standby letters of credit, reimbursement
             170      agreements, and remarketing, indexing, and tender agent agreements to secure the bonds, including
             171      payment from any legally available source of fees, charges, or other amounts coming due under
             172      the agreements entered into by the commission.
             173          (3) (a) Any signature of a public official authorized by resolution of the commission to
             174      sign the bonds may be a facsimile signature of that official imprinted, engraved, stamped, or
             175      otherwise placed on the bonds.
             176          (b) If all signatures of public officials on the bonds are facsimile signatures, provision shall
             177      be made for a manual authenticating signature on the bonds by or on behalf of a designated
             178      authentication agent.
             179          (c) If an official ceases to hold office before delivery of the bonds signed by that official,
             180      the signature or facsimile signature of the official is nevertheless valid for all purposes.
             181          (d) A facsimile of the state seal may be imprinted, engraved, stamped, or otherwise placed
             182      on the bonds.


             183          (4) (a) The commission may enact resolutions providing for the replacement of lost,
             184      destroyed, or mutilated bonds, or for the exchange of bonds after issuance for bonds of smaller or
             185      larger denominations.
             186          (b) Bonds in changed denominations shall:
             187          (i) be exchanged for the original bonds in like aggregate principal amounts and in a
             188      manner that prevents the duplication of interest; and
             189          (ii) bear interest at the same rate, mature on the same date, and be as nearly as practicable
             190      in the form of the original bonds.
             191          (5) (a) Bonds may be registered as to both principal and interest or may be in a book entry
             192      form under which the right to principal and interest may be transferred only through a book entry.
             193          (b) The commission may provide for the services and payment for the services of one or
             194      more financial institutions or other entities or persons, or nominees, within or outside the state, for
             195      the authentication, registration, transfer, including record, bookkeeping, or book entry functions,
             196      exchange, and payment of the bonds.
             197          (c) The records of ownership, registration, transfer, and exchange of the bonds, and of
             198      persons to whom payment with respect to the obligations is made, are private records as provided
             199      in Section 63-2-302 , or protected records as provided in Section 63-2-304 .
             200          (d) The bonds and any evidences of participation interest in the bonds may be issued,
             201      executed, authenticated, registered, transferred, exchanged, and otherwise made to comply with
             202      Title 15, Chapter 7, Registered Public Obligations Act, or any other act of the Legislature relating
             203      to the registration of obligations enacted to meet the requirements of Section 149 of the Internal
             204      Revenue Code of 1986, as amended, or any successor to it, and applicable regulations.
             205          (6) The commission may:
             206          (a) by resolution, provide for payment to the United States of whatever amounts are
             207      necessary to comply with Section 148 (f) of the Internal Revenue Code of 1986, as amended; and
             208          (b) enter into agreements with financial and other institutions and attorneys to provide for:
             209          (i) the calculation, holding, and payment of those amounts; and
             210          (ii) payment from any legally available source of fees, charges, or other amounts coming
             211      due under any agreements entered into by the commission.
             212          Section 8. Section 63B-10-106 is enacted to read:
             213          63B-10-106. Constitutional debt limitation.


             214          (1) The commission may not issue bonds under this chapter in an amount that violates the
             215      limitation described in Utah Constitution Article XIV, Section 1.
             216          (2) For purposes of applying the debt limitation contained in Utah Constitution Article
             217      XIV, Section 1, the value of the taxable property in Utah is considered to be 100% of the fair
             218      market value of the taxable property of the state, including fee-in-lieu property, as computed from
             219      the last assessment for state purposes previous to the issuance of the bonds.
             220          Section 9. Section 63B-10-107 is enacted to read:
             221          63B-10-107. Tax levy -- Abatement of tax.
             222          (1) Each year after issuance of the bonds and until all outstanding bonds are retired, there
             223      is levied a direct annual tax on all real and personal property within the state subject to state
             224      taxation, sufficient to pay:
             225          (a) applicable bond redemption premiums, if any;
             226          (b) interest on the bonds as it becomes due; and
             227          (c) principal of the bonds as it becomes due.
             228          (2) (a) The State Tax Commission shall fix the rate of the direct annual tax levy each year.
             229          (b) The tax shall be collected and the proceeds applied as provided in this chapter.
             230          (3) The direct annual tax imposed under this section is abated to the extent money is
             231      available from sources, other than ad valorem taxes in the sinking fund, for the payment of bond
             232      interest, principal, and redemption premiums.
             233          Section 10. Section 63B-10-108 is enacted to read:
             234          63B-10-108. Creation of sinking fund.
             235          (1) There is created a sinking fund, to be administered by the state treasurer, entitled the
             236      "2001 Highway General Obligation Bonds Sinking Fund."
             237          (2) All monies deposited in the sinking fund, from whatever source, shall be used to pay
             238      debt service on the bonds.
             239          (3) The proceeds of all taxes levied under this chapter are appropriated to this fund.
             240          (4) The state treasurer may create separate accounts within the sinking fund for each series
             241      of bonds issued.
             242          Section 11. Section 63B-10-109 is enacted to read:
             243          63B-10-109. Payment of interest, principal, and redemption premiums.
             244          (1) The Division of Finance shall draw warrants on the state treasury before any interest,


             245      principal, or redemption premiums become due on the bonds.
             246          (2) After receipt of the warrants, the state treasurer shall:
             247          (a) promptly pay the warrants from funds within the sinking fund; and
             248          (b) immediately transmit the amount paid to the paying agent for the bonds.
             249          Section 12. Section 63B-10-110 is enacted to read:
             250          63B-10-110. Investment of sinking fund money.
             251          (1) The state treasurer may, by following the procedures and requirements of Title 51,
             252      Chapter 7, State Money Management Act, invest any money contained in the sinking fund until
             253      it is needed for the purposes for which the fund is created.
             254          (2) Unless otherwise provided in the resolution of the commission authorizing the issuance
             255      of bonds under this chapter, the treasurer shall retain all income from the investment of any money
             256      contained in the sinking fund in the sinking fund and use it for the payment of debt service on the
             257      bonds.
             258          Section 13. Section 63B-10-111 is enacted to read:
             259          63B-10-111. Bond proceeds -- Deposits -- Investment -- Disposition of investment
             260      income and unexpended proceeds.
             261          (1) (a) Proceeds from the sale of bonds issued under this chapter shall be deposited within
             262      one or more accounts as determined by resolution of the commission.
             263          (b) The state treasurer shall administer and maintain these accounts unless otherwise
             264      provided by the commission by resolution.
             265          (c) The commission, by resolution, may provide for the deposit of these monies with a
             266      trustee and the administration, disposition, or investment of these monies by this trustee.
             267          (2) (a) The commission, by resolution, shall provide for the kinds of investments in which
             268      the proceeds of bonds issued under this chapter may be invested.
             269          (b) Income from the investment of proceeds of bonds issued under this chapter shall be
             270      applied as provided by resolution of the commission.
             271          (3) Any unexpended bond proceeds issued under this chapter shall be deposited, upon
             272      completion of the purposes for which the bonds were issued, in the sinking fund, unless otherwise
             273      provided in the resolution of the commission authorizing the issuance of bonds under this chapter.
             274          Section 14. Section 63B-10-112 is enacted to read:
             275          63B-10-112. Refunding of bonds.


             276          (1) The commission may provide for the refunding of any of the bonds in accordance with
             277      Title 11, Chapter 27, Utah Refunding Bond Act.
             278          (2) For purposes of Title 11, Chapter 27, Utah Refunding Bond Act, the state of Utah is
             279      considered the public body and the commission its governing body.
             280          Section 15. Section 63B-10-113 is enacted to read:
             281          63B-10-113. Certification of satisfaction of conditions precedent -- Conclusiveness.
             282          (1) The commission may not issue any bond under this chapter until it finds and certifies
             283      that all conditions precedent to issuance of the bonds have been satisfied.
             284          (2) A recital on any bond of this finding and certification conclusively establishes the
             285      completion and satisfaction of all these conditions.
             286          Section 16. Section 63B-10-114 is enacted to read:
             287          63B-10-114. Tax exemption.
             288          The bonds issued under this chapter, any interest paid on the bonds, and any income from
             289      the bonds are not taxable in this state for any purpose, except for the corporate franchise tax.
             290          Section 17. Section 63B-10-115 is enacted to read:
             291          63B-10-115. Legal investment status.
             292          Bonds issued under this chapter are legal investments for all state trust funds, insurance
             293      companies, banks, trust companies, and the State School Fund and may be used as collateral to
             294      secure legal obligations.
             295          Section 18. Section 63B-10-116 is enacted to read:
             296          63B-10-116. Publication of resolution or notice -- Limitation on actions to contest
             297      legality.
             298          (1) The commission may:
             299          (a) publish any resolution it adopts under this chapter once in a newspaper having general
             300      circulation in Utah; or
             301          (b) in lieu of publishing the entire resolution, publish a notice of bonds to be issued, titled
             302      as such, containing the information required by Subsection 11-14-21 (3).
             303          (2) (a) Any interested person, for 30 days after the date of publication, may contest:
             304          (i) the legality of the resolution;
             305          (ii) any of the bonds authorized under it; or
             306          (iii) any of the provisions made for the security and repayment of the bonds.


             307          (b) After 30 days, a person may not contest the legality of the resolution, any of the bonds
             308      authorized under it, or any of the provisions made for the security and repayment of the bonds for
             309      any cause.
             310          Section 19. Section 63B-10-117 is enacted to read:
             311          63B-10-117. Report to Legislature.
             312          The governor shall report the commission's proceedings to each annual general session of
             313      the Legislature in his budget for as long as bonds issued under this chapter remain outstanding.
             314          Section 20. Section 63B-10-201 is enacted to read:
             315     
Part 2. 2001 Highway General Obligation Bond Anticipation Notes Authorization

             316          63B-10-201. Definitions.
             317          As used in this part:
             318          (1) "Bond anticipation note" means a note issued in anticipation of the receipt of the
             319      proceeds of the sale of the bonds authorized under Part 1 of this chapter.
             320          (2) "Flexible note" means a bond anticipation note whose interest is payable at, and on one
             321      or more dates before, maturity.
             322          (3) (a) "Short-term series note" means a bond anticipation note that is one of a series of
             323      notes issued pursuant to a financing program under which it is expected that:
             324          (i) each note will be paid from the proceeds of one or more renewal notes of that series;
             325      and
             326          (ii) the final note or notes of the series will be paid from:
             327          (A) the proceeds of bonds in anticipation of the receipt of which the note or notes were
             328      issued; or
             329          (B) monies of the state on hand and legally available for that purpose.
             330          (b) "Short-term series note" includes any note issued pursuant to a revolving credit
             331      agreement or other similar liquidity facility for the purpose of renewing or paying outstanding
             332      short-term series notes on their stated maturity dates when those short-term series notes are not
             333      renewed or paid from the proceeds of one or more other renewal notes of the series.
             334          Section 21. Section 63B-10-202 is enacted to read:
             335          63B-10-202. Authorization, terms, and procedures.
             336          (1) The state treasurer may, by written order, issue bond anticipation notes and renewals
             337      of bond anticipation notes, including, but not limited to, flexible notes and short-term series notes,


             338      in the form and with the terms that he determines.
             339          (2) The state treasurer may:
             340          (a) enter into whatever agreements with other persons that he considers necessary or
             341      appropriate in connection with the issuance, sale, and resale of the notes; and
             342          (b) resell or retire any notes purchased by the state before the stated maturity of those
             343      notes.
             344          (3) (a) The notes and renewals of the notes shall:
             345          (i) bear the interest rate or rates as determined by the state treasurer; and
             346          (ii) mature within a period not to exceed five years from the date of original issuance.
             347          (b) The notes and renewals of notes may:
             348          (i) bear a variable interest rate; and
             349          (ii) be redeemed prior to maturity by the state treasurer, but only in accordance with the
             350      provisions of the notes relating to redemption prior to maturity.
             351          (4) The proceeds from the sale of the notes may be used only for:
             352          (a) the purposes established in Section 63B-10-102 ;
             353          (b) the payment of principal of and, if not otherwise provided, interest on, bond
             354      anticipation notes;
             355          (c) the payment of costs of issuance; or
             356          (d) any combination of Subsections (4)(a), (b), and (c).
             357          (5) (a) All of the notes and any renewals of the notes shall be payable from the proceeds
             358      of the sale of bonds.
             359          (b) A renewal of any note may not be issued after the sale of bonds in anticipation of
             360      which the original note was issued.
             361          (6) If a sale of the bonds has not occurred before the maturity of the notes issued in
             362      anticipation of the sale, the state treasurer shall, in order to meet the notes then maturing:
             363          (a) issue renewal notes for that purpose;
             364          (b) pay the notes from state monies legally available for paying those notes; or
             365          (c) any combination of Subsections (6)(a) and (b).
             366          (7) Each note and any renewal of any note, with the interest on the note or renewal,
             367      constitute general obligations of the state.
             368          (8) Each note and any renewal of any note, with the interest on the note or renewal, shall


             369      be:
             370          (a) secured by the full faith, credit, and resources of the state in the manner provided in
             371      Part 1 of this chapter;
             372          (b) payable from:
             373          (i) the proceeds of the sale of the bonds and not from any other borrowing; and
             374          (ii) monies of the state on hand and legally available for that purpose; or
             375          (iii) any combination of Subsections (8)(b)(i) and (ii); and
             376          (c) payable within five years from the date of original issue.
             377          (9) (a) As used in this Subsection (9), "total amount of bonds authorized to be issued but
             378      not yet issued" includes bonds authorized to be issued only if one or more conditions are met.
             379          (b) The total amount of notes or renewals of notes issued and outstanding at any one time
             380      may not exceed the total amount of bonds authorized to be issued but not yet issued.
             381          (10) The state treasurer shall, in his annual report to the governor, include a detailed
             382      statement of all notes and bonds issued during the year and of his actions in relation to them.
             383          Section 22. Section 63B-10-203 is enacted to read:
             384          63B-10-203. Purchase and redemption requirements.
             385          (1) The notes and renewals of notes may provide the holders of the notes or renewals of
             386      notes with the right to require the state or other persons to purchase or redeem the notes or renewal
             387      notes before the stated maturity of the notes or renewals.
             388          (2) Notwithstanding Subsection (1), the holders of the notes and renewals of notes may
             389      not be provided with the right to require the state to repurchase or redeem the notes and renewals
             390      of the notes before their stated maturity unless the state has entered into one or more letter of credit
             391      agreements or other liquidity facility agreements:
             392          (a) for the express purpose of those sales;
             393          (b) that require a financially responsible party or parties to the agreement or agreements,
             394      other than the state, to purchase or redeem all or any portion of the notes and renewals of notes
             395      tendered by the holders of the notes or renewals of notes for repurchase or redemption before the
             396      stated maturity of the notes and renewals of notes; and
             397          (c) that continue until the right of the holders of the notes and renewals of notes to require
             398      repurchase or redemption of the notes and renewals of notes before the stated maturity has ceased.
             399          Section 23. Section 63B-10-204 is enacted to read:


             400          63B-10-204. General provisions -- Funds and accounts.
             401          (1) (a) Sections 63B-10-105 , 63B-10-106 , 63B-10-113 , 63B-10-114 , 63B-10-115 , and
             402      63B-10-116 apply to any notes or renewals of notes issued under this part.
             403          (b) (i) For purposes of this part, any action that those sections require or permit the
             404      commission to take shall be considered sufficient if taken by the state treasurer.
             405          (ii) The treasurer may take action by issuing a written order, or in some other manner that
             406      he finds necessary or convenient, to accomplish the purposes of this part.
             407          (2) The treasurer may:
             408          (a) in a written order, establish whatever funds and accounts are necessary or desirable to
             409      carry out the purposes of this part; and
             410          (b) until the monies are needed for the purpose for which the fund or account was created,
             411      invest the monies held in those funds and accounts by following the procedures and requirements
             412      of Title 51, Chapter 7, State Money Management Act.
             413          Section 24. Section 63B-10-501 is enacted to read:
             414     
Part 5. 2001 Revenue Bond Authorizations

             415          63B-10-501. Revenue bond authorizations.
             416          (1) (a) It is the intent of the Legislature that the State Building Ownership Authority, under
             417      the authority of Title 63, Chapter 9a, State Building Ownership Act, may issue or execute
             418      obligations, or enter into or arrange for a lease purchase agreement in which participation interests
             419      may be created, to provide up to $8,281,000 for the construction of an expansion of the
             420      Department of Alcoholic Beverage Control warehouse together with additional amounts necessary
             421      to pay costs of issuance, pay capitalized interest, and fund any debt service reserve requirements.
             422          (b) It is the intent of the Legislature that enhanced revenues of the Department of
             423      Alcoholic Beverage Control be used as the primary revenue source for repayment of any obligation
             424      created under authority of this Subsection (1).
             425          (2) (a) It is the intent of the Legislature that the State Building Ownership Authority, under
             426      the authority of Title 63, Chapter 9a, State Building Ownership Act, may issue or execute
             427      obligations, or enter into or arrange for a lease purchase agreement in which participation interests
             428      may be created, to provide up to $957,100 for the acquisition of a site and construction of a store
             429      in the western part of Salt Lake County for the Department of Alcoholic Beverage Control together
             430      with additional amounts necessary to pay costs of issuance, pay capitalized interest, and fund any


             431      debt service reserve requirements.
             432          (b) It is the intent of the Legislature that enhanced revenues of the Department of
             433      Alcoholic Beverage Control be used as the primary revenue source for repayment of any obligation
             434      created under authority of this Subsection (2).
             435          (3) (a) It is the intent of the Legislature that the State Building Ownership Authority, under
             436      the authority of Title 63, Chapter 9a, State Building Ownership Act, may issue or execute
             437      obligations, or enter into or arrange for a lease purchase agreement in which participation interests
             438      may be created, to provide up to $1,497,700 for the acquisition of a site and construction of a store
             439      in the southern part of Salt Lake County for the Department of Alcoholic Beverage Control
             440      together with additional amounts necessary to pay costs of issuance, pay capitalized interest, and
             441      fund any debt service reserve requirements.
             442          (b) It is the intent of the Legislature that enhanced revenues of the Department of
             443      Alcoholic Beverage Control be used as the primary revenue source for repayment of any obligation
             444      created under authority of this Subsection (3).
             445          (4) (a) It is the intent of the Legislature that the State Building Ownership Authority, under
             446      the authority of Title 63, Chapter 9a, State Building Ownership Act, may issue or execute
             447      obligations, or enter into or arrange for a lease purchase agreement in which participation interests
             448      may be created, to provide up to $100,000,000 for the acquisition and construction of a cancer
             449      clinical research hospital facility adjacent to the University of Utah Medical Center, together with
             450      additional amounts necessary to pay costs of issuance, pay capitalized interest, and fund any debt
             451      service reserve requirements.
             452          (b) The State Building Ownership Authority shall work cooperatively with the Division
             453      of Facilities Construction and Management and the University of Utah to seek out the most cost
             454      effective and prudent lease purchase plan available.
             455          (c) It is the intent of the Legislature that the University of Utah lease land to the State
             456      Building Ownership Authority for the construction of a cancer clinical research hospital facility
             457      adjacent to the University of Utah Medical Center.
             458          (d) The anticipated revenue sources for repayment of any obligation created under
             459      authority of this section are:
             460          (i) 60% from the Huntsman Cancer Foundation; and
             461          (ii) 40% from institutional funds of the University of Utah, including the University's


             462      annual distribution of tobacco settlement funds from the state.
             463          (5) It is the intent of the Legislature that:
             464          (a) the Board of Regents, on behalf of the University of Utah, issue, sell, and deliver
             465      revenue bonds or other evidences of indebtedness of the University of Utah to borrow money on
             466      the credit, revenues, and reserves of the University of Utah, other than appropriations of the
             467      Legislature, to finance the cost of acquiring, constructing, furnishing, and equipping an expansion
             468      of the University Hospital;
             469          (b) University Hospital revenues be used as the primary revenue source for repayment of
             470      any obligation created under authority of this section; and
             471          (c) the bonds or other evidences of indebtedness authorized by this section may provide
             472      up to $25,000,000, together with other amounts necessary to pay costs of issuance, pay capitalized
             473      interest, and fund any debt service reserve requirements.
             474          (6) It is the intent of the Legislature that:
             475          (a) the Board of Regents, on behalf of Salt Lake Community College, issue, sell, and
             476      deliver revenue bonds or other evidences of indebtedness of Salt Lake Community College to
             477      borrow money on the credit, revenues, and reserves of Salt Lake Community College, other than
             478      appropriations of the Legislature, to finance the cost of acquiring, constructing, furnishing, and
             479      equipping the remodel of the cafeteria and expansion of the Student Center;
             480          (b) student fees be used as the primary revenue source for repayment of any obligation
             481      created under authority of this section; and
             482          (c) the bonds or other evidences of indebtedness authorized by this section may provide
             483      up to $6,000,000, together with other amounts necessary to pay costs of issuance, pay capitalized
             484      interest, and fund any debt service reserve requirements.
             485          (7) It is the intent of the Legislature that:
             486          (a) the Board of Regents, on behalf of Dixie College, issue, sell, and deliver revenue bonds
             487      or other evidences of indebtedness of Dixie College to borrow money on the credit, revenues, and
             488      reserves of Dixie College, other than appropriations of the Legislature, to finance the cost of
             489      acquiring, constructing, furnishing, and equipping an expansion of the Gardner Student Center;
             490          (b) student fees be used as the primary revenue source for repayment of any obligation
             491      created under authority of this section; and
             492          (c) the bonds or other evidences of indebtedness authorized by this section may provide


             493      up to $1,500,000, together with other amounts necessary to pay costs of issuance, pay capitalized
             494      interest, and fund any debt service reserve requirements.
             495          Section 25. Section 63B-10-601 is enacted to read:
             496     
Part 6. Other 2001 Capital Facilities Authorizations and Intent Language

             497          63B-10-601. Other capital facility authorizations and intent language.
             498          (1) It is the intent of the Legislature that:
             499          (a) Utah State University use institutional funds to plan, design, and construct an
             500      expansion of the HPER Building under the direction of the director of the Division of Facilities
             501      Construction and Management unless supervisory authority has been delegated;
             502          (b) no state funds be used for any portion of this project; and
             503          (c) the university may request state funds for operations and maintenance to the extent that
             504      the university is able to demonstrate to the Board of Regents that the facility meets approved
             505      academic and training purposes under Board of Regents policy R710.
             506          (2) It is the intent of the Legislature that:
             507          (a) the University of Utah use institutional funds to plan, design, and construct the Moran
             508      Eye Center II project under the direction of the director of the Division of Facilities Construction
             509      and Management unless supervisory authority has been delegated;
             510          (b) no state funds be used for any portion of this project; and
             511          (c) the university may request state funds for operations and maintenance to the extent that
             512      the university is able to demonstrate to the Board of Regents that the facility meets approved
             513      academic and training purposes under Board of Regents policy R710.
             514          (3) It is the intent of the Legislature that:
             515          (a) the University of Utah use institutional funds to plan, design, and construct the E. E.
             516      Jones Medical Science Addition under the direction of the director of the Division of Facilities
             517      Construction and Management unless supervisory authority has been delegated;
             518          (b) no state funds be used for any portion of this project; and
             519          (c) the university may request state funds for operations and maintenance to the extent that
             520      the university is able to demonstrate to the Board of Regents that the facility meets approved
             521      academic and training purposes under Board of Regents policy R710.
             522          (4) It is the intent of the Legislature that:
             523          (a) the University of Utah use institutional funds to plan, design, and construct a Museum


             524      of Natural History under the direction of the director of the Division of Facilities Construction and
             525      Management unless supervisory authority has been delegated;
             526          (b) no state funds be used for any portion of this project; and
             527          (c) the university may request state funds for operations and maintenance to the extent that
             528      the university is able to demonstrate to the Board of Regents that the facility meets approved
             529      academic and training purposes under Board of Regents policy R710.
             530          (5) It is the intent of the Legislature that:
             531          (a) Dixie College use institutional funds to plan, design, and construct the Hurricane
             532      Education Center under the direction of the director of the Division of Facilities Construction and
             533      Management unless supervisory authority has been delegated;
             534          (b) no state funds be used for any portion of this project; and
             535          (c) the college may request state funds for operations and maintenance to the extent that
             536      the university is able to demonstrate to the Board of Regents that the facility meets approved
             537      academic and training purposes under Board of Regents policy R710.
             538          (6) It is the intent of the Legislature that:
             539          (a) Southern Utah University use institutional funds to plan, design, and construct the
             540      Shakespearean Festival Center under the direction of the director of the Division of Facilities
             541      Construction and Management unless supervisory authority has been delegated;
             542          (b) no state funds be used for any portion of this project; and
             543          (c) the college may not request state funds for operations and maintenance.
             544          (7) It is the intent of the Legislature that:
             545          (a) the Department of Corrections use donations to plan, design, and construct the Wasatch
             546      Family History Center under the direction of the director of the Division of Facilities Construction
             547      and Management unless supervisory authority has been delegated;
             548          (b) no state funds be used for any portion of this project; and
             549          (c) the department may request state funds for operations and maintenance.
             550          (8) It is the intent of the Legislature that:
             551          (a) the Department of Workforce Services use $1,186,700 from its Special Administrative
             552      Expense Fund to plan, design, and construct an addition to the Cedar City Employment Center
             553      under the direction of the director of the Division of Facilities Construction and Management
             554      unless supervisory authority has been delegated; and


             555          (b) the department may request state funds for operations and maintenance.
             556          (9) It is the intent of the Legislature that the Division of Facilities Construction and
             557      Management, acting on behalf of the Department of Natural Resources, may enter into a lease
             558      purchase agreement with Carbon County to provide needed space for agency programs in the area
             559      if the Department of Natural Resources obtains the approval of the State Building Board by
             560      demonstrating that the lease purchase will be a benefit to the state and that the lease, including
             561      operation and maintenance costs, can be funded within existing agency budgets.
             562          (10) It is the intent of the Legislature that:
             563          (a) the Division of Facilities Construction and Management use $17,294,400 to erect a new
             564      Engineering lab and classroom building at Utah State University and place $5,943,500 in escrow
             565      for the renovation of the existing engineering building to be matched against $10,000,000 in
             566      non-State funds raised by the university; and
             567          (b) no state funds be expended on the remodel of the Utah State University Engineering
             568      Building until the university has received all of the $10 million.
             569          (11) It is the intent of the Legislature that:
             570          (a) the Division of Facilities Construction and Management use $4,613,000 to remodel the
             571      Merrill Engineering Building at the University of Utah and place $15,000,000 in escrow for a new
             572      engineering building to be matched against $30,000,000 in non-State funds raised by the
             573      university; and
             574          (b) no state funds be expended on the new Engineering Building until the university has
             575      received at least $13,000,000.




Legislative Review Note
    as of 2-23-01 9:31 AM


A limited legal review of this legislation raises no obvious constitutional or statutory concerns.

Office of Legislative Research and General Counsel


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