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[Introduced][Amended][Status][Bill Documents][Fiscal Note][Bills Directory]

S.B. 2 Enrolled

                 

2001 GENERAL OBLIGATION BOND AND

                 
CAPITAL FACILITIES AUTHORIZATIONS

                 
2001 GENERAL SESSION

                 
STATE OF UTAH

                 
Sponsor: Beverly Ann Evans

                  This act authorizes issuance of state of Utah general obligation bonds and bond anticipation
                  notes by the State Bonding Commission for highways. This act defines the process and
                  requirements for issuing the bonds and notes and specifies the use of the proceeds. This act
                  imposes a statewide property tax and abates it. This act creates a sinking fund to pay debt
                  service on the bonds. This act authorizes the issuance of other debt obligations by the State
                  Building Ownership Authority. This act authorizes other capital facility expenditures. This
                  act modifies previously adopted intent language. This act exempts the bonds and notes
                  authorized by this section from the statutory debt limit. This act provides for related
                  matters and makes technical corrections.
                  This act affects sections of Utah Code Annotated 1953 as follows:
                  AMENDS:
                      63-9a-6, as last amended by Chapter 21, Laws of Utah 1999
                      63-38c-402, as last amended by Chapter 354, Laws of Utah 2000
                      63B-6-502, as enacted by Chapter 391, Laws of Utah 1997
                  ENACTS:
                      63B-10-101, Utah Code Annotated 1953
                      63B-10-102, Utah Code Annotated 1953
                      63B-10-103, Utah Code Annotated 1953
                      63B-10-104, Utah Code Annotated 1953
                      63B-10-105, Utah Code Annotated 1953
                      63B-10-106, Utah Code Annotated 1953
                      63B-10-107, Utah Code Annotated 1953
                      63B-10-108, Utah Code Annotated 1953
                      63B-10-109, Utah Code Annotated 1953


                      63B-10-110, Utah Code Annotated 1953
                      63B-10-111, Utah Code Annotated 1953
                      63B-10-112, Utah Code Annotated 1953
                      63B-10-113, Utah Code Annotated 1953
                      63B-10-114, Utah Code Annotated 1953
                      63B-10-115, Utah Code Annotated 1953
                      63B-10-116, Utah Code Annotated 1953
                      63B-10-117, Utah Code Annotated 1953
                      63B-10-201, Utah Code Annotated 1953
                      63B-10-202, Utah Code Annotated 1953
                      63B-10-203, Utah Code Annotated 1953
                      63B-10-204, Utah Code Annotated 1953
                      63B-10-501, Utah Code Annotated 1953
                      63B-10-601, Utah Code Annotated 1953
                  Be it enacted by the Legislature of the state of Utah:
                      Section 1. Section 63-9a-6 is amended to read:
                       63-9a-6. Obligations issued by authority -- Limitation of liability on obligations --
                  Limitation on amount of obligations issued.
                      (1) (a) All obligations issued by the authority under this chapter shall be limited obligations
                  of the authority and shall not constitute, nor give rise to, a general obligation or liability of, nor a
                  charge against the general credit or taxing power of, this state or any of its political subdivisions.
                      (b) This limitation shall be plainly stated upon all obligations.
                      (2) (a) No authority obligations incurred under this section may be issued in an amount
                  exceeding the difference between the total indebtedness of the state and an amount equal to 1 1/2%
                  of the value of the taxable property of the state.
                      (b) Debt issued under authority of [Title 63B, Chapter 6, Part 2, 1997 Highway General
                  Obligation Bond Authorization, and Title 63B, Chapter 6, Part 3, 1997 Highway Bond Anticipation
                  Note Authorization,] the following parts may not be included as part of the total indebtedness of the

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                  state of Utah in determining the debt limit established by this Subsection (2)[.]:
                      (i) Title 63B, Chapter 6, Part 2, 1997 Highway General Obligation Bond Authorization;
                      (ii) Title 63B, Chapter 6, Part 3, 1997 Highway Bond Anticipation Note Authorization;
                      (iii) Title 63B, Chapter 7, Part 2, 1998 Highway General Obligation Bond Authorization;
                      (iv) Title 63B, Chapter 7, Part 3, 1998 Highway Bond Anticipation Note Authorization;
                      (v) Title 63B, Chapter 8, Part 2, 1999 Highway General Obligation Bond Authorization;
                      (vi) Title 63B, Chapter 8, Part 3, 1999 Highway Bond Anticipation Note Authorization;
                      (vii) Title 63B, Chapter 9, Part 2, 2000 Highway General Obligation Bond;
                      (viii) Title 63B, Chapter 10, Part 1, 2001 Highway General Obligation Bond; and
                      (ix) Title 63B, Chapter 10, Part 2, 2001 Highway General Obligation Bond Anticipation
                  Notes Authorization.
                      (c) Debt issued under authority of Section 63B-7-503 may not be included as part of the total
                  indebtedness of the state in determining the debt limit established by this Subsection (2).
                      (3) The obligations shall be authorized by resolution of the authority, following approval of
                  the Legislature, and may:
                      (a) be executed and delivered at any time, and from time to time, as the authority may
                  determine;
                      (b) be sold at public or private sale in the manner and at the prices, either at, in excess of,
                  or below their face value and at such times as the authority may determine;
                      (c) be in the form and denominations as the authority may determine;
                      (d) be of the tenor as the authority may determine;
                      (e) be in registered or bearer form either as to principal or interest or both;
                      (f) be payable in those installments and at the times as the authority may determine;
                      (g) be payable at the places, either within or without this state, as the authority may
                  determine;
                      (h) bear interest at the rate or rates, payable at the place or places, and evidenced in the
                  manner, as the authority may determine;
                      (i) be redeemable prior to maturity, with or without premium;

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                      (j) contain such other provisions not inconsistent with this chapter as shall be deemed for
                  the best interests of the authority and provided for in the proceedings of the authority under which
                  the bonds shall be authorized to be issued; and
                      (k) bear facsimile signatures and seals.
                      (4) The authority may pay any expenses, premiums or commissions, which it deems
                  necessary or advantageous in connection with the authorization, sale, and issuance of these
                  obligations, from the proceeds of the sale of the obligations or from the revenues of the projects
                  involved.
                      Section 2. Section 63-38c-402 is amended to read:
                       63-38c-402. Debt limitation -- Vote requirement needed to exceed limitation --
                  Exceptions.
                      (1) (a) Except as provided in Subsection (1)(b), the outstanding general obligation debt of
                  the state may not exceed 20% of the maximum allowable appropriations limit unless approved by
                  more than a two-thirds vote of both houses of the Legislature.
                      (b) Notwithstanding the limitation contained in Subsection (1)(a), debt issued under the
                  authority of the following parts is not subject to the debt limitation established by this section:
                      (i) Title 63B, Chapter 6, Part 2, 1997 Highway General Obligation Bond Authorization[,];
                      (ii) Title 63B, Chapter 6, Part 3, 1997 Highway Bond Anticipation Note Authorization[,];
                      (iii) Title 63B, Chapter 7, Part 2, 1998 Highway General Obligation Bond Authorization[,];
                      (iv) Title 63B, Chapter 7, Part 3, 1998 Highway Bond Anticipation Note Authorization[,];
                      (v) Title 63B, Chapter 8, Part 2, 1999 Highway General Obligation Bond Authorization[,];
                      (vi) Title 63B, Chapter 8, Part 3, 1999 Highway Bond Anticipation Note Authorization[,];
                      (vii) Title 63B, Chapter 9, Part 2, 2000 Highway General Obligation Bond[, is not subject
                  to the debt limitation established by this section.];
                      (viii) Title 63B, Chapter 10, Part 1, 2001 Highway General Obligation Bond; and
                      (ix) Title 63B, Chapter 10, Part 2, 2001 Highway General Obligation Bond Anticipation
                  Notes Authorization.
                      (2) This section does not apply if contractual rights will be impaired.

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                      Section 3. Section 63B-6-502 is amended to read:
                       63B-6-502. Other capital facility authorizations and intent language.
                      (1) It is the intent of the Legislature that the University of Utah use institutional funds to
                  plan, design, and construct:
                      (a) the Health Science Lab Building under the supervision of the director of the Division of
                  Facilities Construction and Management unless supervisory authority is delegated by the director;
                  and
                      (b) the gymnastics facility under the supervision of the director of the Division of Facilities
                  Construction and Management unless supervisory authority is delegated by the director.
                      (2) It is the intent of the Legislature that Southern Utah University use institutional funds
                  to plan, design, and construct a science center addition under the supervision of the director of the
                  Division of Facilities Construction and Management unless supervisory authority is delegated by the
                  director.
                      (3) It is the intent of the Legislature that Utah Valley State College use institutional funds
                  to plan, design, and construct a student center addition under the supervision of the director of the
                  Division of Facilities Construction and Management unless supervisory authority is delegated by the
                  director.
                      (4) (a) It is the intent of the Legislature that the Division of Facilities Construction and
                  Management lease property at the Draper Prison to [a private] an entity for the purpose of
                  constructing [a waste sorting] recycling and transfer [facility] facilities to employ inmates if the
                  following conditions are satisfactorily met:
                      (i) the [private] entity assures continuous employment of state inmates;
                      (ii) the lease with the [private] entity provides an appropriate return to the state;
                      (iii) the lease has an initial term of not to exceed 20 years;
                      (iv) the lease protects the state from all liability;
                      (v) the [private] entity guarantees that no adverse environmental impact will occur;
                      (vi) the state retains the right to:
                      (A) monitor the types of wastes that are processed; and

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                      (B) prohibit the processing of types of wastes that are considered to be a risk to the state or
                  surrounding property uses;
                      (vii) the lease provides for adequate security arrangements;
                      (viii) the [private] entity assumes responsibility for any taxes or fees associated with the
                  facility; and
                      (ix) the [private] entity assumes responsibility for bringing utilities to the site and any state
                  expenditures for roads, etc. are considered in establishing the return to the state.
                      (b) Except as provided in Subsections (4)(c) and (d), the facility may be constructed without
                  direct supervision by the Division of Facilities Construction and Management.
                      (c) Notwithstanding Subsection (4)(b), the Division of Facilities Construction and
                  Management shall:
                      (i) review the design, plans, and specifications of the project; and
                      (ii) approve them if they are appropriate.
                      (d) Notwithstanding Subsection (4)(b), the Division of Facilities Construction and
                  Management may:
                      (i) require that the project be submitted to the local building official for plan review and
                  inspection; and
                      (ii) inspect the project.
                      (5) It is the intent of the Legislature that:
                      (a) the $221,497.86 authorized for the Capitol Hill Day Care Center in Subsection (4) of
                  Section 56, Chapter 304, Laws of Utah 1992, be used for general capital improvements; and
                      (b) the Building Board should, in allocating the $221,497.86, if appropriate under the
                  Board's normal allocation and prioritization process, give preference to projects for the Division of
                  Parks and Recreation.
                      Section 4. Section 63B-10-101 is enacted to read:
                 
CHAPTER 10. 2001 BONDING

                 
Part 1. 2001 Highway General Obligation Bonds

                      63B-10-101. State Bonding Commission authorized to issue general obligation bonds.

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                      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 Department of Transportation.
                      Section 5. Section 63B-10-102 is enacted to read:
                      63B-10-102. Maximum amount -- Projects authorized.
                      (1) The total amount of bonds issued under this part may not exceed $126,250,000.
                      (2) (a) Proceeds from the issuance of bonds shall be provided to the Department of
                  Transportation to provide funds to pay all or part of the costs of state highway construction or
                  reconstruction projects.
                      (b) These costs may include the cost of acquiring land, interests in land, easements and
                  rights-of-way, improving sites, and making all 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,
                  interest estimated to accrue on any bond anticipation notes issued under the authority of Chapter 10,
                  Part 2, 2001 Highway General Obligation Bond Anticipation Notes Authorization, and all related
                  engineering, architectural, and legal fees.
                      (3) The commission or the state treasurer may make any statement of intent relating to a
                  reimbursement that is necessary or desirable to comply with federal tax law.
                      (4) The Department of Transportation may enter into agreements related to that project
                  before the receipt of proceeds of bonds issued under this chapter.
                      Section 6. Section 63B-10-103 is enacted to read:
                      63B-10-103. Bond proceeds may be used to pay costs of issuance and sale.
                      The proceeds of bonds issued under this chapter shall be used for the purposes described in
                  Section 63B-10-102 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' discount.
                      Section 7. Section 63B-10-104 is enacted to read:
                      63B-10-104. Manner of issuance -- Amounts, interest, and maturity.

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                      (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
                  rates, including a variable rate, and maturity dates as the commission determines by resolution.
                      (3) A bond issued may not mature later than 15 years after the date of final passage of this
                  chapter.
                      Section 8. Section 63B-10-105 is enacted to read:
                      63B-10-105. 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.

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                      (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 is 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

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                  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-10-106 is enacted to read:
                      63B-10-106. 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, including fee-in-lieu property, as computed from the last
                  assessment for state purposes previous to the issuance of the bonds.
                      Section 10. Section 63B-10-107 is enacted to read:
                      63B-10-107. 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

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                  interest, principal, and redemption premiums.
                      Section 11. Section 63B-10-108 is enacted to read:
                      63B-10-108. Creation of sinking fund.
                      (1) There is created a sinking fund, to be administered by the state treasurer, entitled the
                  "2001 Highway 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-10-109 is enacted to read:
                      63B-10-109. 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-10-110 is enacted to read:
                      63B-10-110. 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-10-111 is enacted to read:
                      63B-10-111. Bond proceeds -- Deposits -- Investment -- Disposition of investment

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                  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-10-112 is enacted to read:
                      63B-10-112. 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-10-113 is enacted to read:
                      63B-10-113. 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 these conditions.
                      Section 17. Section 63B-10-114 is enacted to read:
                      63B-10-114. Tax exemption.

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                      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-10-115 is enacted to read:
                      63B-10-115. 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-10-116 is enacted to read:
                      63B-10-116. 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 by 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-10-117 is enacted to read:
                      63B-10-117. 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-10-201 is enacted to read:
                 
Part 2. 2001 Highway General Obligation Bond Anticipation Notes Authorization


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                      63B-10-201. Definitions.
                      As used in this part:
                      (1) "Bond anticipation note" means a note issued in anticipation of the receipt of the
                  proceeds of the sale of the bonds authorized under Part 1 of this chapter.
                      (2) "Flexible note" means a bond anticipation note whose interest is payable at, and on one
                  or more dates before, maturity.
                      (3) (a) "Short-term series note" means a bond anticipation note that is one of a series of notes
                  issued pursuant to a financing program under which it is expected that:
                      (i) each note will be paid from the proceeds of one or more renewal notes of that series; and
                      (ii) the final note or notes of the series will be paid from:
                      (A) the proceeds of bonds in anticipation of the receipt of which the note or notes were
                  issued; or
                      (B) monies of the state on hand and legally available for that purpose.
                      (b) "Short-term series note" includes any note issued pursuant to a revolving credit
                  agreement or other similar liquidity facility for the purpose of renewing or paying outstanding
                  short-term series notes on their stated maturity dates when those short-term series notes are not
                  renewed or paid from the proceeds of one or more other renewal notes of the series.
                      Section 22. Section 63B-10-202 is enacted to read:
                      63B-10-202. Authorization, terms, and procedures.
                      (1) The state treasurer may, by written order, issue bond anticipation notes and renewals of
                  bond anticipation notes, including, but not limited to, flexible notes and short-term series notes, in
                  the form and with the terms that he determines.
                      (2) The state treasurer may:
                      (a) enter into whatever agreements with other persons that he considers necessary or
                  appropriate in connection with the issuance, sale, and resale of the notes; and
                      (b) resell or retire any notes purchased by the state before the stated maturity of those notes.
                      (3) (a) The notes and renewals of the notes shall:
                      (i) bear the interest rate or rates as determined by the state treasurer; and

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                      (ii) mature within a period not to exceed five years from the date of original issuance.
                      (b) The notes and renewals of notes may:
                      (i) bear a variable interest rate; and
                      (ii) be redeemed prior to maturity by the state treasurer, but only in accordance with the
                  provisions of the notes relating to redemption prior to maturity.
                      (4) The proceeds from the sale of the notes may be used only for:
                      (a) the purposes established in Section 63B-10-102 ;
                      (b) the payment of principal of and, if not otherwise provided, interest on, bond anticipation
                  notes;
                      (c) the payment of costs of issuance; or
                      (d) any combination of Subsections (4)(a), (b), and (c).
                      (5) (a) All of the notes and any renewals of the notes shall be payable from the proceeds of
                  the sale of bonds.
                      (b) A renewal of any note may not be issued after the sale of bonds in anticipation of which
                  the original note was issued.
                      (6) If a sale of the bonds has not occurred before the maturity of the notes issued in
                  anticipation of the sale, the state treasurer shall, in order to meet the notes then maturing:
                      (a) issue renewal notes for that purpose;
                      (b) pay the notes from state monies legally available for paying those notes; or
                      (c) any combination of Subsections (6)(a) and (b).
                      (7) Each note and any renewal of any note, with the interest on the note or renewal,
                  constitute general obligations of the state.
                      (8) Each note and any renewal of any note, with the interest on the note or renewal, shall be:
                      (a) secured by the full faith, credit, and resources of the state in the manner provided in Part
                  1 of this chapter;
                      (b) payable from:
                      (i) the proceeds of the sale of the bonds and not from any other borrowing; and
                      (ii) monies of the state on hand and legally available for that purpose; or

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                      (iii) any combination of Subsections (8)(b)(i) and (ii); and
                      (c) payable within five years from the date of original issue.
                      (9) (a) As used in this Subsection (9), "total amount of bonds authorized to be issued but not
                  yet issued" includes bonds authorized to be issued only if one or more conditions are met.
                      (b) The total amount of notes or renewals of notes issued and outstanding at any one time
                  may not exceed the total amount of bonds authorized to be issued but not yet issued.
                      (10) The state treasurer shall, in his annual report to the governor, include a detailed
                  statement of all notes and bonds issued during the year and of his actions in relation to them.
                      Section 23. Section 63B-10-203 is enacted to read:
                      63B-10-203. Purchase and redemption requirements.
                      (1) The notes and renewals of notes may provide the holders of the notes or renewals of
                  notes with the right to require the state or other persons to purchase or redeem the notes or renewal
                  notes before the stated maturity of the notes or renewals.
                      (2) Notwithstanding Subsection (1), the holders of the notes and renewals of notes may not
                  be provided with the right to require the state to repurchase or redeem the notes and renewals of the
                  notes before their stated maturity unless the state has entered into one or more letter of credit
                  agreements or other liquidity facility agreements:
                      (a) for the express purpose of those sales;
                      (b) that require a financially responsible party or parties to the agreement or agreements,
                  other than the state, to purchase or redeem all or any portion of the notes and renewals of notes
                  tendered by the holders of the notes or renewals of notes for repurchase or redemption before the
                  stated maturity of the notes and renewals of notes; and
                      (c) that continue until the right of the holders of the notes and renewals of notes to require
                  repurchase or redemption of the notes and renewals of notes before the stated maturity has ceased.
                      Section 24. Section 63B-10-204 is enacted to read:
                      63B-10-204. General provisions -- Funds and accounts.
                      (1) (a) Sections 63B-10-105 , 63B-10-106 , 63B-10-113 , 63B-10-114 , 63B-10-115 , and
                  63B-10-116 apply to any notes or renewals of notes issued under this part.

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                      (b) (i) For purposes of this part, any action that those sections require or permit the
                  commission to take shall be considered sufficient if taken by the state treasurer.
                      (ii) The treasurer may take action by issuing a written order, or in some other manner that
                  he finds necessary or convenient, to accomplish the purposes of this part.
                      (2) The treasurer may:
                      (a) in a written order, establish whatever funds and accounts are necessary or desirable to
                  carry out the purposes of this part; and
                      (b) until the monies are needed for the purpose for which the fund or account was created,
                  invest the monies held in those funds and accounts by following the procedures and requirements
                  of Title 51, Chapter 7, State Money Management Act.
                      Section 25. Section 63B-10-501 is enacted to read:
                 
Part 5. 2001 Revenue Bond Authorizations

                      63B-10-501. Revenue bond authorizations.
                      (1) (a) It is the intent of the Legislature that 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 $8,281,000 for the construction of an expansion of the Department
                  of Alcoholic Beverage Control warehouse together with additional amounts necessary to pay costs
                  of issuance, pay capitalized interest, and fund any debt service reserve requirements.
                      (b) It is the intent of the Legislature that enhanced revenues of the Department of Alcoholic
                  Beverage Control be used as the primary revenue source for repayment of any obligation created
                  under authority of this Subsection (1).
                      (2) (a) It is the intent of the Legislature that 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 $957,100 for the acquisition of a site and construction of a store in
                  the western part of Salt Lake County for the Department of Alcoholic Beverage Control together
                  with additional amounts necessary to pay costs of issuance, pay capitalized interest, and fund any

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                  debt service reserve requirements.
                      (b) It is the intent of the Legislature that enhanced revenues of the Department of Alcoholic
                  Beverage Control be used as the primary revenue source for repayment of any obligation created
                  under authority of this Subsection (2).
                      (3) (a) It is the intent of the Legislature that 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 $1,497,700 for the acquisition of a site and construction of a store
                  in the southern part of Salt Lake County for the Department of Alcoholic Beverage Control together
                  with additional amounts necessary to pay costs of issuance, pay capitalized interest, and fund any
                  debt service reserve requirements.
                      (b) It is the intent of the Legislature that enhanced revenues of the Department of Alcoholic
                  Beverage Control be used as the primary revenue source for repayment of any obligation created
                  under authority of this Subsection (3).
                      (4) (a) It is the intent of the Legislature that 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 $100,000,000 for the acquisition and construction of a cancer
                  clinical research hospital facility adjacent to the University of Utah Medical Center, 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
                  Facilities Construction and Management and the University of Utah to seek out the most cost
                  effective and prudent lease purchase plan available.
                      (c) It is the intent of the Legislature that the University of Utah lease land to the State
                  Building Ownership Authority for the construction of a cancer clinical research hospital facility
                  adjacent to the University of Utah Medical Center.
                      (d) The anticipated revenue sources for repayment of any obligation created under authority

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                  of this section are:
                      (i) 60% from the Huntsman Cancer Foundation; and
                      (ii) 40% from institutional funds of the University of Utah, including the University's annual
                  distribution of tobacco settlement funds from the state.
                      (5) It is the intent of the Legislature that:
                      (a) the 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,
                  revenues, and reserves of the University of Utah, other than appropriations of the Legislature, to
                  finance the cost of acquiring, constructing, furnishing, and equipping an expansion of the University
                  Hospital;
                      (b) University Hospital revenues be used as the primary revenue source for repayment of any
                  obligation created under authority of this section; and
                      (c) the bonds or other evidences of indebtedness authorized by this section may provide up
                  to $25,000,000, together with other amounts necessary to pay costs of issuance, pay capitalized
                  interest, and fund any debt service reserve requirements.
                      (6) It is the intent of the Legislature that:
                      (a) the Board of Regents, on behalf of Salt Lake Community College, issue, sell, and deliver
                  revenue bonds or other evidences of indebtedness of Salt Lake Community College to borrow money
                  on the credit, revenues, and reserves of Salt Lake Community College, other than appropriations of
                  the Legislature, to finance the cost of acquiring, constructing, furnishing, and equipping the remodel
                  of the cafeteria and expansion of the Student Center;
                      (b) student fees be used as the primary revenue source for repayment of any obligation
                  created under authority of this section; and
                      (c) the bonds or other evidences of indebtedness authorized by this section may provide up
                  to $6,000,000, together with other amounts necessary to pay costs of issuance, pay capitalized
                  interest, and fund any debt service reserve requirements.
                      (7) It is the intent of the Legislature that:
                      (a) the Board of Regents, on behalf of Dixie College, issue, sell, and deliver revenue bonds

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                  or other evidences of indebtedness of Dixie College to borrow money on the credit, revenues, and
                  reserves of Dixie College, other than appropriations of the Legislature, to finance the cost of
                  acquiring, constructing, furnishing, and equipping an expansion of the Gardner Student Center;
                      (b) student fees be used as the primary revenue source for repayment of any obligation
                  created under authority of this section; and
                      (c) the bonds or other evidences of indebtedness authorized by this section may provide up
                  to $1,500,000, together with other amounts necessary to pay costs of issuance, pay capitalized
                  interest, and fund any debt service reserve requirements.
                      Section 26. Section 63B-10-601 is enacted to read:
                 
Part 6. Other 2001 Capital Facilities Authorizations and Intent Language

                      63B-10-601. Other capital facility authorizations and intent language.
                      (1) It is the intent of the Legislature that:
                      (a) Utah State University use institutional funds to plan, design, and construct an expansion
                  of the HPER Building under the direction of the director of the Division of Facilities Construction
                  and Management unless supervisory authority has been delegated;
                      (b) no state funds be used for any portion of this project; and
                      (c) the university may request state funds for operations and maintenance to the extent that
                  the university is able to demonstrate to the Board of Regents that the facility meets approved
                  academic and training purposes under Board of Regents policy R710.
                      (2) It is the intent of the Legislature that:
                      (a) the University of Utah use institutional funds to plan, design, and construct the Moran
                  Eye Center II project under the direction of the director of the Division of Facilities Construction and
                  Management unless supervisory authority has been delegated;
                      (b) no state funds be used for any portion of this project; and
                      (c) the university may request state funds for operations and maintenance to the extent that
                  the university is able to demonstrate to the Board of Regents that the facility meets approved
                  academic and training purposes under Board of Regents policy R710.
                      (3) It is the intent of the Legislature that:

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                      (a) the University of Utah use institutional funds to plan, design, and construct the E. E.
                  Jones Medical Science Addition under the direction of the director of the Division of Facilities
                  Construction and Management unless supervisory authority has been delegated;
                      (b) no state funds be used for any portion of this project; and
                      (c) the university may request state funds for operations and maintenance to the extent that
                  the university is able to demonstrate to the Board of Regents that the facility meets approved
                  academic and training purposes under Board of Regents policy R710.
                      (4) It is the intent of the Legislature that:
                      (a) the University of Utah use institutional funds to plan, design, and construct a Museum
                  of Natural History under the direction of the director of the Division of Facilities Construction and
                  Management unless supervisory authority has been delegated;
                      (b) no state funds be used for any portion of this project; and
                      (c) the university may request state funds for operations and maintenance to the extent that
                  the university is able to demonstrate to the Board of Regents that the facility meets approved
                  academic and training purposes under Board of Regents policy R710.
                      (5) It is the intent of the Legislature that:
                      (a) Dixie College use institutional funds to plan, design, and construct the Hurricane
                  Education Center under the direction of the director of the Division of Facilities Construction and
                  Management unless supervisory authority has been delegated;
                      (b) no state funds be used for any portion of this project; and
                      (c) the college may request state funds for operations and maintenance to the extent that the
                  university is able to demonstrate to the Board of Regents that the facility meets approved academic
                  and training purposes under Board of Regents policy R710.
                      (6) It is the intent of the Legislature that:
                      (a) Southern Utah University use institutional funds to plan, design, and construct the
                  Shakespearean Festival Center under the direction of the director of the Division of Facilities
                  Construction and Management unless supervisory authority has been delegated;
                      (b) no state funds be used for any portion of this project; and

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                      (c) the college may not request state funds for operations and maintenance.
                      (7) It is the intent of the Legislature that:
                      (a) the Department of Corrections use donations to plan, design, and construct the Wasatch
                  Family History Center under the direction of the director of the Division of Facilities Construction
                  and Management unless supervisory authority has been delegated;
                      (b) no state funds be used for any portion of this project; and
                      (c) the department may request state funds for operations and maintenance.
                      (8) It is the intent of the Legislature that:
                      (a) the Department of Workforce Services use $1,186,700 from its Special Administrative
                  Expense Fund to plan, design, and construct an addition to the Cedar City Employment Center under
                  the direction of the director of the Division of Facilities Construction and Management unless
                  supervisory authority has been delegated; and
                      (b) the department may request state funds for operations and maintenance.
                      (9) It is the intent of the Legislature that the Division of Facilities Construction and
                  Management, acting on behalf of the Department of Natural Resources, may enter into a lease
                  purchase agreement with Carbon County to provide needed space for agency programs in the area
                  if the Department of Natural Resources obtains the approval of the State Building Board by
                  demonstrating that the lease purchase will be a benefit to the state and that the lease, including
                  operation and maintenance costs, can be funded within existing agency budgets.
                      (10) It is the intent of the Legislature that:
                      (a) the Division of Facilities Construction and Management use $17,294,400 to erect a new
                  Engineering lab and classroom building at Utah State University and place $5,943,500 in escrow for
                  the renovation of the existing engineering building to be matched against $10,000,000 in non-State
                  funds raised by the university; and
                      (b) no state funds be expended on the remodel of the Utah State University Engineering
                  Building until the university has received all of the $10 million.
                      (11) It is the intent of the Legislature that:
                      (a) the Division of Facilities Construction and Management use $4,613,000 to remodel the

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                  Merrill Engineering Building at the University of Utah and place $15,000,000 in escrow for a new
                  engineering building to be matched against $30,000,000 in non-State funds raised by the university;
                  and
                      (b) no state funds be expended on the new Engineering Building until the university has
                  received at least $13,000,000.

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