Download Zipped Enrolled WP 9 HB0021.ZIP
[Introduced][Status][Bill Documents][Fiscal Note] [Bills Directory]
H.B. 21 Enrolled
This act modifies provisions governing the State Building Ownership Authority. This act
removes the State Building Board as the State Building Ownership Authority and
designates the governor, state treasurer, and chair of the State Building Board as the
State Building Ownership Authority. This act requires the Division of Facilities
Construction and Management to perform certain duties formerly directed to be
performed by the State Building Board. This act recodifies the State Building Ownership
Authority sections into the Bond title and makes other technical corrections.
This act affects sections of Utah Code Annotated 1953 as follows:
RENUMBERS AND AMENDS:
63B-1-301, (Renumbered from 63-9a-1, as last amended by Chapter 260, Laws of Utah
1981)
63B-1-302, (Renumbered from 63-9a-2, as last amended by Chapter 314, Laws of Utah
1998)
63B-1-303, (Renumbered from 63-9a-3, as last amended by Chapters 67 and 314, Laws
of Utah 1998)
63B-1-304, (Renumbered from 63-9a-4, as last amended by Chapter 243, Laws of Utah
1996)
63B-1-305, (Renumbered from 63-9a-5, as last amended by Chapter 260, Laws of Utah
1981)
63B-1-306, (Renumbered from 63-9a-6, as last amended by Chapter 266, Laws of Utah
2002)
63B-1-307, (Renumbered from 63-9a-7, as last amended by Chapter 260, Laws of Utah
1981)
63B-1-308, (Renumbered from 63-9a-8, as last amended by Chapter 260, Laws of Utah
1981)
63B-1-309, (Renumbered from 63-9a-9, as last amended by Chapter 260, Laws of Utah
1981)
63B-1-310, (Renumbered from 63-9a-10, as enacted by Chapter 230, Laws of Utah 1979)
63B-1-311, (Renumbered from 63-9a-11, as last amended by Chapter 260, Laws of Utah
1981)
63B-1-312, (Renumbered from 63-9a-12, as enacted by Chapter 230, Laws of Utah 1979)
63B-1-313, (Renumbered from 63-9a-13, as last amended by Chapter 20, Laws of Utah
1995)
63B-1-314, (Renumbered from 63-9a-14, as enacted by Chapter 230, Laws of Utah 1979)
63B-1-315, (Renumbered from 63-9a-15, as last amended by Chapter 61, Laws of Utah
1984)
63B-1-316, (Renumbered from 63-9a-16, as enacted by Chapter 230, Laws of Utah 1979)
63B-1-317, (Renumbered from 63-9a-17, as last amended by Chapter 260, Laws of Utah
1981)
63B-1-318, (Renumbered from 63-9a-18, as last amended by Chapter 260, Laws of Utah
1981)
63B-1-319, (Renumbered from 63-9a-19, as last amended by Chapter 260, Laws of Utah
1981)
63B-1-320, (Renumbered from 63-9a-20, as enacted by Chapter 230, Laws of Utah 1979)
63B-1-321, (Renumbered from 63-9a-20.5, as enacted by Chapter 260, Laws of Utah
1981)
REPEALS:
63-9a-21, as last amended by Chapter 20, Laws of Utah 1995
63-9a-22, as last amended by Chapter 82, Laws of Utah 1997
Be it enacted by the Legislature of the state of Utah:
Section 1. Section 63B-1-301 , which is renumbered from Section 63-9a-1 is renumbered
and amended to read:
[
This [
Authority Act."
Section 2. Section 63B-1-302 , which is renumbered from Section 63-9a-2 is renumbered
and amended to read:
[
The Legislature finds and declares as follows:
(1) it is the policy of this state to provide office space and related facilities for state
bodies and such other governmental facilities and property, including highways and highway
rights-of-way, as may be necessary or desirable, in the most efficient and economical way
possible;
(2) many state bodies are inadequately provided with necessary office space, related
facilities, other governmental facilities, and property to serve the public welfare;
(3) the state is renting space for state bodies in privately owned buildings with funds
which could more efficiently and economically be put to use toward the purchase and acquisition
of facilities by the state;
(4) in order to provide for a fully adequate supply of office space, related facilities, other
governmental facilities, and property at the lowest possible cost, this Legislature should establish
a State Building Ownership Authority for the purpose of financing, owning, leasing, operating, or
encumbering such facilities to meet the needs of the state government and to serve the public
welfare;
(5) the foregoing involve public purposes and uses for which public moneys may be
borrowed, expended, advanced, loaned, or granted, the activities specified would serve a public
purpose in improving or otherwise benefiting the people of this state and, therefore, this [
is in the public interest and is [
express legislative determination; and
(6) the compelling need within this state for the creation of an adequate supply of office
space, related facilities, other government facilities, and property for state bodies at a low cost
can be best met by the establishment of a body corporate and politic vested with the powers and
duties specified in this [
Section 3. Section 63B-1-303 , which is renumbered from Section 63-9a-3 is renumbered
and amended to read:
[
As used in this [
(1) "Acquire or construct," "acquired or constructed," "constructed or acquired,"
"acquiring or constructing," or "acquisition or construction" means any acquisition, construction,
reconstruction, restoration, enlargement, improvement, renovation, repair, replacement,
equipping or furnishing, in whole or in part, of a facility.
(2) "Authority" means the State Building Ownership Authority created by this [
part.
(3) "Division" means the Division of Facilities Construction and Management.
[
property for any governmental purpose of state bodies, and the related and appurtenant
easements, rights-of-way, improvements, paving, utilities, landscaping, parking facilities, and the
lands, interests in land, and grounds, together with the personal property necessary, convenient,
or appurtenant [
(b) "Facility" includes a golf course.
[
assignment, security agreement, financing statement, or other instrument [
encumbers property [
[
certificates, revenue bonds, or other evidences of financial indebtedness[
(b) "Obligations" does not mean general obligation bonds.
[
commission, or agency of the state.
(b) Except as provided in Subsection [
mean colleges and universities.
(c) "State body" or "state bodies" includes a college or university when the obligation to
be issued will finance the acquisition or construction of research facilities, housing facilities, or
student centers at the college or university.
[
Section 4. Section 63B-1-304 , which is renumbered from Section 63-9a-4 is renumbered
and amended to read:
[
-- Compensation -- Location in Department of Administrative Services.
(1) There is created a body politic and corporate to be known as the State Building
Ownership Authority[
(a) the governor;
(b) the state treasurer; and
(c) the chair of the State Building Board created under Section 63A-5-101 [
[
compensation or benefits for their services, but may receive per diem and expenses incurred in
the performance of the member's official duties at the rates established by the Division of
Finance under Sections 63A-3-106 and 63A-3-107 .
(ii) Members may decline to receive per diem and expenses for their service.
(b) (i) State government officer and employee members who do not receive salary, per
diem, or expenses from their agency for their service may receive per diem and expenses incurred
in the performance of their official duties from the authority at the rates established by the
Division of Finance under Sections 63A-3-106 and 63A-3-107 .
(ii) State government officer and employee members may decline to receive per diem
and expenses for their service.
[
Building Ownership Authority [
(b) The State Building Ownership Authority may seek and obtain independent financial
advice, support, and information from the state financial advisor created under Section 67-4-16 .
Section 5. Section 63B-1-305 , which is renumbered from Section 63-9a-5 is renumbered
and amended to read:
[
(1) The authority shall have [
succession as a body politic and corporate[
(2) The authority may:
[
[
[
[
obligations, including refunding obligations;
[
States or this state, in the form of money, property, labor, or other things of value to be held, used
and applied to carry out the purposes of this [
this aid and contributions are made, for any purpose consistent with this [
[
United States or this state, financial institutions, or contractors for the purpose of leasing,
maintaining, and operating any facility;
[
consent to any modification relating to rate of interest, time and payment of any installment of
principal or interest, security or any other term of any contract, mortgage, mortgage loan,
mortgage loan commitment, contract or agreement of any kind to which it is a party;
[
relating to that facility, including interest on obligations, and to redeem those obligations;
[
assignments, security agreements, and financing statements encumbering property acquired, or
constructed under this [
[
this chapter by it or the [
[
[
[
necessary or appropriate to carry out and effectuate the purposes of this [
Section 6. Section 63B-1-306 , which is renumbered from Section 63-9a-6 is renumbered
and amended to read:
[
on obligations -- Limitation on amount of obligations issued.
(1) (a) All obligations issued by the authority under this [
obligations of the authority and [
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 the following parts may not be included as part of the
total indebtedness of the 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 [
and
(ix) Title 63B, Chapter 10, Part 2, 2001 Highway General Obligation Bond Anticipation
Notes [
(x) Title 63B, Chapter 11, Part 5, 2002 Highway General Obligation [
Salt Lake County; and
(xi) Title 63B, Chapter 11, Part 6, 2002 Highway General Obligation Bond Anticipation
Notes for Salt Lake County [
(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 [
determines;
(c) be in the form and denominations [
(d) be of the tenor [
(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 [
(g) be payable at the places, either within or without this state, [
[
(h) bear interest at the rate or rates, payable at the place or places, and evidenced in the
manner, [
(i) be redeemable [
(j) contain [
the proceedings of the authority under which the bonds [
(k) bear facsimile signatures and seals.
(4) The authority may pay any expenses, premiums, or commissions, [
[
issuance of these obligations, from the proceeds of the sale of the obligations or from the
revenues of the projects involved.
Section 7. Section 63B-1-307 , which is renumbered from Section 63-9a-7 is renumbered
and amended to read:
[
(1) The authority and state bodies shall enter into leases or agreements for the use and
occupancy of any portion of any facility constructed or acquired under this [
(2) The leases or agreements may provide for the operation, maintenance, and insurance
of the facility. [
(3) The leases and agreements shall provide that:
(a) the rental to be paid annually by each state body to the authority for the use and
occupancy [
(b) those rentals shall be in an amount sufficient to completely pay all principal and
interest on those obligations as they come due; and
(c) those rentals may include:
(i) the cost of maintenance, operation, and insurance of those facilities [
(ii) the expenses of the authority in administering the facilities under this [
part;
(iii) amounts needed to provide reserves to secure obligations, to maintain, repair,
renovate, reconstruct, or replace those facilities[
(iv) any other reserves and funds [
advisable in order to sell its obligations.
Section 8. Section 63B-1-308 , which is renumbered from Section 63-9a-8 is renumbered
and amended to read:
[
governmental entities not liable for payment -- Appropriations for increased rentals --
Defaulting bodies to quit premises.
(1) Except as secured as provided in this [
(a) each obligation issued or caused to be issued by the authority, and the interest
[
by the authority for the facilities constructed or acquired under this [
part; and
(b) each obligation shall [
(2) Except to the extent that facilities are encumbered, nothing in this [
may be construed [
(a) require the state, or any department, board, commission, agency, or political
subdivision of the state, other than the authority, to pay any part of any obligation issued or
caused to be issued under this [
those obligations;
(b) require the state or any department, board, commission, agency or political
subdivision of the state, other than the state body or state bodies leasing any portion of the
facilities, to pay any rental due to the authority by any state body under the terms of any lease of
facilities[
(c) require the Legislature to appropriate any money to pay these obligations, interest, or
rentals.
(3) If the rentals paid by a state body to the authority are insufficient to pay the principal
and interest on the obligations or other amounts payable from rentals when due, the governor
may request the Legislature to appropriate additional funds to that body for the payment of
increased rentals.
(4) If a state body fails to pay any rentals due to the authority under the terms of any lease
or agreement for facilities, that body shall immediately quit and vacate [
facility [
under the [
Section 9. Section 63B-1-309 , which is renumbered from Section 63-9a-9 is renumbered
and amended to read:
[
security -- Procedure upon default.
(1) The principal and interest on any obligation issued under this [
(a) shall be secured by a pledge and assignment of the revenues out of which that
obligation shall be made payable;
(b) may be secured by a mortgage covering all or any part of the facility for which the
revenues from the obligation were used;
(c) may be secured by a pledge and assignment of the lease of that facility; and
(d) may be secured by any other security device on that facility [
is considered most advantageous by the authority.
(2) (a) The proceedings under which the obligations are authorized to be issued under
this [
agreements and provisions customarily contained in instruments securing obligations, including,
but not limited to, provisions respecting:
[
mortgage;
[
[
[
from the proceeds of sale of obligations or from the revenues of that facility; and
[
obligations or to the trustee under a mortgage, as the authority may determine in accordance with
this [
(b) All these mortgages, trust deeds, security agreements, or trust indentures shall
provide that no deficiency judgment upon foreclosure may be entered against the authority, this
state, or any of its political subdivisions.
(3) The proceedings authorizing obligations under this [
securing these obligations, may provide that, [
of the principal of or the interest on these obligations or in the performance of any agreement
contained in the proceedings or mortgage, the payment or performance may be enforced by the
appointment of a receiver relative to that facility with power to charge and collect rents and to
apply the revenues from the facility in accordance with the proceedings or the provisions of the
mortgage.
(4) (a) Any mortgage made under this [
to it may also provide that, in the event of a default in the payment of [
violation of any agreement contained in the mortgage, the mortgage may be foreclosed or
otherwise realized on in any manner permitted by law.
(b) The mortgage may also provide that any trustee under the mortgage or the holder of
any of the obligations secured by the mortgage may become the purchaser at any foreclosure sale,
if that trustee is highest bidder. [
(c) A breach of the agreement [
upon, nor a charge against, the authority or the general credit or taxing power of this state or any
of its political subdivisions.
Section 10. Section 63B-1-310 , which is renumbered from Section 63-9a-10 is
renumbered and amended to read:
[
(1) The proceeds from the sale of obligations issued [
part may be applied only for the purposes for which the obligations were issued. [
(2) Any accrued interest and premium received upon [
[
were issued, [
[
Section 11. Section 63B-1-311 , which is renumbered from Section 63-9a-11 is
renumbered and amended to read:
[
The cost of acquiring or constructing any facility shall be [
the following:
(1) the actual cost of acquiring or improving real estate;
(2) the actual cost of enlarging, constructing, reconstructing, improving, replacing,
restoring, renovating, maintaining, equipping, or furnishing all or any part of a facility, including
architects' or engineers' fees; and
(3) all expenses connected with the authorization, sale, and issuance of the obligations to
finance the acquisition or construction, including:
(a) fees for outside attorneys or accountants[
issuance of those obligations[
(b) financial advisors' fees and commissions [
(c) printing costs[
(d) those amounts [
bond reserves and maintenance, repair, replacement, and contingency funds and accounts[
(e) the interest on these obligations for a reasonable time [
for a reasonable period of time after, completion of[
Section 12. Section 63B-1-312 , which is renumbered from Section 63-9a-12 is
renumbered and amended to read:
[
Continuing validity.
If any of the members or officers of the authority [
position at the time of the delivery of any obligations signed by them, their signatures or
facsimiles [
purposes, as if they had remained in office until that delivery.
Section 13. Section 63B-1-313 , which is renumbered from Section 63-9a-13 is
renumbered and amended to read:
[
All obligations of the authority [
the meaning of, and for all purposes of Title 70A, Uniform Commercial Code, subject only to
any provisions of those obligations relating to registration.
Section 14. Section 63B-1-314 , which is renumbered from Section 63-9a-14 is
renumbered and amended to read:
[
No person executing any obligations issued [
is subject to personal liability or accountability [
Section 15. Section 63B-1-315 , which is renumbered from Section 63-9a-15 is
renumbered and amended to read:
[
(1) All property acquired or held by the authority under this [
be public property used for essential public and governmental purposes.
(2) All property and income from it, and all obligations issued under this [
the interest payable on them, and income derived from them, [
taxation imposed by this state or any of its political subdivisions, except for the corporate
franchise tax.
Section 16. Section 63B-1-316 , which is renumbered from Section 63-9a-16 is
renumbered and amended to read:
[
(1) The obligations issued [
which all persons and organizations authorized to invest in any obligations of this state may
properly and legally invest any funds, including capital belonging to them or within their control.
(2) These obligations are also declared to be securities [
legally be deposited with, and received by, any state, county, or municipal officer, or agency of
the state for any purpose for which the deposit of any obligations of the state is authorized by
law.
Section 17. Section 63B-1-317 , which is renumbered from Section 63-9a-17 is
renumbered and amended to read:
[
proceedings -- Mandamus to compel official to sign obligations.
(1) The authority may provide for the publication of any resolution it adopts for the
authorization of obligations under this [
circulation in this state.
(2) In case of resolution or other proceeding providing for the issuance of obligations
under this [
proceeding, publish a notice of obligations to be issued, titled as such, containing:
(a) the name of the authority;
(b) the purpose of the issue;
(c) the type of obligations and the principal amount to be issued;
(d) the maximum maturity of the obligations;
(e) the maximum net effective rate of interest payable on the issue of obligations;
(f) the maximum discount from par which is to be permitted if the obligations may be
sold at a discount below par value; and
(g) the times and place where a copy of the resolution or other proceeding may be
examined, during regular business hours, for a period of at least 30 days after the publication of
the notice.
(3) (a) For a period of 30 days after the date of publication under Subsection (1) or (2),
any interested person may contest the legality of the resolution, of the obligations authorized by
it, or any of the provisions made for the security and payment of these obligations.
(b) After this period, no one shall have any cause of action to contest the regularity,
formality, or legality of same for any cause whatsoever, except as provided in Subsection (4).
(4) (a) If any official required to sign the obligations [
alleges that the obligations to be signed are illegal, the authority may bring an original action in
the supreme court for a writ of mandamus requiring the official to sign the obligations. [
(b) Because of the importance of the facilities construction and acquisition program
provided for in this [
(i) give this action [
the court[
(ii) consider and determine these matters at the earliest possible time.
Section 18. Section 63B-1-318 , which is renumbered from Section 63-9a-18 is
renumbered and amended to read:
[
(1) The [
(a) construct, maintain, allocate the space in, and dispose of all facilities acquired or
constructed for the authority with the proceeds of obligations of the authority[
(b) do all things necessary to keep those facilities in good order and repair [
(2) The division may perform all [
pursuant to contracts with the authority.
(3) The [
authority from funds derived from rental or lease payments.
(4) Nothing contained in this part may be construed to limit, supersede, or otherwise
change in any way the authority of the division provided in Title 63A, Chapter 5, State Building
Board - Division of Facilities Construction and Management.
Section 19. Section 63B-1-319 , which is renumbered from Section 63-9a-19 is
renumbered and amended to read:
[
(1) The attorney general shall provide all legal services, and the state auditor shall provide
all accounting and auditing services, required by the authority, without reimbursement from that
authority.
(2) Subsection (1) [
[
(3) The authority may:
(a) obtain accounting and auditing services in addition to those specified in [
Subsections (1) and (2) from outside accountants and auditors, with the consent of the state
auditor[
(b) obtain legal services in addition to those specified in [
and (2) from outside attorneys, with the consent of the attorney general[
(c) include the costs of these services:
(i) in the rentals and charges payable to it under leases or agreements between it and state
bodies for the use of space in facilities; or
(ii) as a cost payable from the proceeds of the sale of obligations [
which [
Section 20. Section 63B-1-320 , which is renumbered from Section 63-9a-20 is
renumbered and amended to read:
[
encumbrances paid or authority dissolved.
(1) Each facility shall immediately vest in and become the property of this state when the
obligations encumbering it are paid.
(2) If the authority is dissolved at any time, for any reason, all property of the authority
shall immediately vest in and become the property of this state, which shall succeed to all rights
of the authority and to any encumbrances which may then exist on any particular facilities, to the
extent provided by this [
Section 21. Section 63B-1-321 , which is renumbered from Section 63-9a-20.5 is
renumbered and amended to read:
[
All obligations issued by the authority [
and all proceedings had in the authorization and issuance of these obligations and all agreements
with respect to them and the security for them are:
(1) validated, ratified, and confirmed; and
(2) all these obligations, agreements, and security are declared to constitute legally
binding obligations of the authority and all state bodies relating to them in accordance with their
terms.
Section 22. Repealer.
This act repeals:
Section 63-9a-21, State Building Ownership Authority Program of 1979 --
Obligations for general office building facility authorized.
Section 63-9a-22, State Building Ownership Authority Program -- Obligations for
agriculture and food department office building facility authorized.
[Bill Documents][Bills Directory]