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H.B. 21 Enrolled

                 

STATE BUILDING OWNERSHIP AUTHORITY

                 
RECODIFICATION AND REVISION

                 
2003 GENERAL SESSION

                 
STATE OF UTAH

                 
Sponsor: Neil A. Hansen

                  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:

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Part 3. State Building Ownership Authority Act

                       [63-9a-1].     63B-1-301. Title.
                      This [chapter] part shall be known [and may be cited] as the "State Building Ownership
                  Authority Act."
                      Section 2. Section 63B-1-302 , which is renumbered from Section 63-9a-2 is renumbered
                  and amended to read:
                       [63-9a-2].     63B-1-302. Legislative findings.
                      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 [act] part
                  is in the public interest and is [hereby so] declared to be in the public interest as a matter of
                  express legislative determination; and
                      (6) the compelling need within this state for the creation of an adequate supply of office

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                  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 [act] part.
                      Section 3. Section 63B-1-303 , which is renumbered from Section 63-9a-3 is renumbered
                  and amended to read:
                       [63-9a-3].     63B-1-303. Definitions.
                      As used in this [chapter] part:
                      (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 [chapter]
                  part.
                      (3) "Division" means the Division of Facilities Construction and Management.
                      [(3)] (4) (a) "Facility" or "facilities" means any public building, structure, highway, or
                  property for any governmental purpose of state bodies, and the related and appurtenant
                  easements, rights-of-way, improvements, paving, utilities, landscaping, parking facilities, and the
                  lands, interests in land, and grounds, together with the personal property necessary, convenient,
                  or appurtenant [thereto] to them.
                      (b) "Facility" includes a golf course.
                      [(4)] (5) "Mortgage" means any mortgage, trust deed, indenture, pledge agreement,
                  assignment, security agreement, financing statement, or other instrument [pursuant to which] that
                  encumbers property [may be encumbered] as security for obligations.
                      [(5)] (6) (a) "Obligations" means any mortgage certificates, notes, debentures, interim
                  certificates, revenue bonds, or other evidences of financial indebtedness[, but not including].
                      (b) "Obligations" does not mean general obligation bonds.
                      [(6)] (7) (a) "State body" or "state bodies" means the state and any department, board,
                  commission, or agency of the state.

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                      (b) Except as provided in Subsection [(6)] (7)(c), "state body" or "state bodies" does not
                  mean colleges and universities.
                      (c) "State body" or "state bodies" includes a college or university when the obligation to
                  be issued will finance the acquisition or construction of research facilities, housing facilities, or
                  student centers at the college or university.
                      [(d) "State body" or "state bodies" includes applied technology centers.]
                      Section 4. Section 63B-1-304 , which is renumbered from Section 63-9a-4 is renumbered
                  and amended to read:
                       [63-9a-4].     63B-1-304. State Building Ownership Authority created -- Members
                  -- 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[. (2) The members] composed of:
                      (a) the governor;
                      (b) the state treasurer; and
                      (c) the chair of the State Building Board created under Section 63A-5-101 [shall serve as
                  members of the State Building Ownership Authority].
                      [(3)] (2) (a) (i) Members who are not government employees shall receive no
                  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.
                      [(4) The] (3) (a) Upon request, the division shall provide staff support to the State

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                  Building Ownership Authority [shall be located within the Department of Administrative
                  Services for administrative purposes and shall receive staff support and all necessary information
                  and resources from the department as required].
                      (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:
                       [63-9a-5].     63B-1-305. Powers and duties of authority.
                      (1) The authority shall have [the following powers and duties: (1) to have] perpetual
                  succession as a body politic and corporate[;].
                      (2) The authority may:
                      [(2) to] (a) sue and to be sued in its own name;
                      [(3) to] (b) have, and alter at will, an official seal;
                      [(4) to] (c) contract with experts, advisers, consultants, and agents for needed services;
                      [(5)] (d) with the prior approval of the Legislature, [to] borrow money and issue
                  obligations, including refunding obligations;
                      [(6) to] (e) receive and accept aid or contributions from any source, including the United
                  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 [chapter] part, subject to the conditions upon which
                  this aid and contributions are made, for any purpose consistent with this [chapter] part;
                      [(7) to] (f) enter into agreements with any department, agency or instrumentality of the
                  United States or this state, financial institutions, or contractors for the purpose of leasing,
                  maintaining, and operating any facility;
                      [(8)] (g) to the extent permitted under its contract with the holders of its obligations, [to]
                  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;
                      [(9) to] (h) pledge revenues from any facility to secure the payment of obligations

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                  relating to that facility, including interest on obligations, and to redeem those obligations;
                      [(10) to] (i) cause to be executed mortgages, trust deeds, indentures, pledge agreements,
                  assignments, security agreements, and financing statements encumbering property acquired, or
                  constructed under this [chapter] part;
                      [(11) to] (j) own, lease, operate, and encumber facilities acquired or constructed under
                  this chapter by it or the [state building board] division;
                      [(12) to] (k) exercise the power of eminent domain;
                      [(13) to] (l) rent or lease any facility in whole or in part to any state body; and
                      [(14) to] (m) have and exercise [such] any other powers or duties [as may be] that are
                  necessary or appropriate to carry out and effectuate the purposes of this [chapter] part.
                      Section 6. Section 63B-1-306 , which is renumbered from Section 63-9a-6 is renumbered
                  and amended to read:
                       [63-9a-6].     63B-1-306. 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] part shall be limited
                  obligations of the authority and [shall] may 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 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;

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                      (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] Bonds;
                  and
                      (ix) Title 63B, Chapter 10, Part 2, 2001 Highway General Obligation Bond Anticipation
                  Notes [Authorization];
                      (x) Title 63B, Chapter 11, Part 5, 2002 Highway General Obligation [Bond] Bonds for
                  Salt Lake County; and
                      (xi) Title 63B, Chapter 11, Part 6, 2002 Highway General Obligation Bond Anticipation
                  Notes for Salt Lake County [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] the times [as] that the authority [may determine]
                  determines;
                      (c) be in the form and denominations [as] that the authority [may determine] determines;
                      (d) be of the tenor [as] that the authority [may determine] determines;
                      (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] that the authority [may
                  determine] determines;
                      (g) be payable at the places, either within or without this state, [as] that the authority
                  [may determine] determines;

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                      (h) bear interest at the rate or rates, payable at the place or places, and evidenced in the
                  manner, [as] that the authority [may determine] determines;
                      (i) be redeemable [prior to] before maturity, with or without premium;
                      (j) contain [such] any other provisions not inconsistent with this [chapter as shall be
                  deemed] part that are considered to be for the best interests of the authority and provided for in
                  the proceedings of the authority under which the bonds [shall be] are authorized to be issued; and
                      (k) bear facsimile signatures and seals.
                      (4) The authority may pay any expenses, premiums, or commissions, [which] that it
                  [deems] considers 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 7. Section 63B-1-307 , which is renumbered from Section 63-9a-7 is renumbered
                  and amended to read:
                       [63-9a-7].     63B-1-307. Lease of facilities to state bodies -- Rental.
                      (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 [chapter, which] part.
                      (2) The leases or agreements may provide for the operation, maintenance, and insurance
                  of the facility. [The]
                      (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 [shall be] is in proportion to the space occupied in the facility by that state body [and];
                      (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 [and];
                      (ii) the expenses of the authority in administering the facilities under this [chapter and]
                  part;
                      (iii) amounts needed to provide reserves to secure obligations, to maintain, repair,

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                  renovate, reconstruct, or replace those facilities[,]; and [such]
                      (iv) any other reserves and funds [as] that the authority [deems] considers necessary or
                  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:
                       [63-9a-8].     63B-1-308. Payment of obligations out of rentals -- Other
                  governmental entities not liable for payment -- Appropriations for increased rentals --
                  Defaulting bodies to quit premises.
                      (1) Except as secured as provided in this [chapter, every] part:
                      (a) each obligation issued or caused to be issued by the authority, and the interest
                  [thereon, shall be] on that obligation, is payable solely out of rentals or lease payments received
                  by the authority for the facilities constructed or acquired under this [chapter, and all obligations]
                  part; and
                      (b) each obligation shall [so] state that information on [their] its face.
                      (2) Except to the extent that facilities are encumbered, nothing in this [chapter shall] part
                  may be construed [as requiring] to:
                      (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 [chapter] part, or any interest [thereon, or as requiring] on any of
                  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[. Neither shall anything in this chapter be construed as requiring]; or
                      (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

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                  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 [such] the portion of that
                  facility [as] that it has occupied under that lease or agreement, and the rental or lease obligation
                  under the [same] lease or agreement shall then cease.
                      Section 9. Section 63B-1-309 , which is renumbered from Section 63-9a-9 is renumbered
                  and amended to read:
                       [63-9a-9].     63B-1-309. Securing of obligations -- Provisions in mortgages given as
                  security -- Procedure upon default.
                      (1) The principal and interest on any obligation issued under this [chapter] part:
                      (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 [as may be deemed] that
                  is considered most advantageous by the authority.
                      (2) (a) The proceedings under which the obligations are authorized to be issued under
                  this [chapter] part and any mortgage given to secure the [same] obligations may contain any
                  agreements and provisions customarily contained in instruments securing obligations, including,
                  but not limited to, provisions respecting:
                      [(a)] (i) the fixing and collection of rents for any facility covered by the proceedings or
                  mortgage;
                      [(b)] (ii) the terms to be incorporated in the lease of that facility;
                      [(c)] (iii) the operation, maintenance, and insurance of that facility;
                      [(d)] (iv) the creation and maintenance of special reserve or other funds and accounts
                  from the proceeds of sale of obligations or from the revenues of that facility; and

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                      [(e)] (v) the rights and remedies available in the event of a default to the holders of
                  obligations or to the trustee under a mortgage, as the authority may determine in accordance with
                  this [chapter] part.
                      (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 [chapter] part, and any mortgage
                  securing these obligations, may provide that, [in the event of] if there is a default in the payment
                  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 [chapter] part to secure obligations issued pursuant
                  to it may also provide that, in the event of a default in the payment of [same] the mortgage or the
                  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. [No]
                      (c) A breach of the agreement [shall] does not impose any general obligation or liability
                  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:
                       [63-9a-10].     63B-1-310. Proceeds from sale of obligations -- Use.
                      (1) The proceeds from the sale of obligations issued [pursuant to this act shall] under this
                  part may be applied only for the purposes for which the obligations were issued. [However, any]

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                      (2) Any accrued interest and premium received upon [such] the sale, and any portion of
                  [such] the proceeds [which] that may not be needed for the purposes for which the obligations
                  were issued, [that portion] shall be applied to the payment of the principal of, or the interest on,
                  [such] the obligations.
                      Section 11. Section 63B-1-311 , which is renumbered from Section 63-9a-11 is
                  renumbered and amended to read:
                       [63-9a-11].     63B-1-311. Cost of acquiring or constructing facility.
                      The cost of acquiring or constructing any facility shall be [deemed] considered to include
                  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[,] whose opinions are required to secure the
                  issuance of those obligations[,];
                      (b) financial advisors' fees and commissions [and];
                      (c) printing costs[,];
                      (d) those amounts [as] that the authority [shall find] considers necessary to establish
                  bond reserves and maintenance, repair, replacement, and contingency funds and accounts[,]; and
                      (e) the interest on these obligations for a reasonable time [prior to] before, during, and
                  for a reasonable period of time after, completion of[,] the acquisition or construction.
                      Section 12. Section 63B-1-312 , which is renumbered from Section 63-9a-12 is
                  renumbered and amended to read:
                       [63-9a-12].     63B-1-312. Signature of former member or officer of authority --
                  Continuing validity.
                      If any of the members or officers of the authority [shall] no longer occupy [such] their

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                  position at the time of the delivery of any obligations signed by them, their signatures or
                  facsimiles [thereof shall nevertheless be] of their signatures are valid and sufficient for all
                  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:
                       [63-9a-13].     63B-1-313. Negotiability of obligations -- Registration.
                      All obligations of the authority [shall be deemed to be] are negotiable instruments within
                  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:
                       [63-9a-14].     63B-1-314. Person executing obligations not personally liable.
                      No person executing any obligations issued [pursuant to this act shall be] under this part
                  is subject to personal liability or accountability [by reason] because of the issuance [thereof].
                      Section 15. Section 63B-1-315 , which is renumbered from Section 63-9a-15 is
                  renumbered and amended to read:
                       [63-9a-15].     63B-1-315. Tax exemption.
                      (1) All property acquired or held by the authority under this [chapter] part is declared to
                  be public property used for essential public and governmental purposes.
                      (2) All property and income from it, and all obligations issued under this [chapter] part,
                  the interest payable on them, and income derived from them, [shall be] are exempt from all
                  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:
                       [63-9a-16].     63B-1-316. Obligations as legal investments -- Deposit of obligations.
                      (1) The obligations issued [pursuant to] under this [act shall be] part are securities in
                  which all persons and organizations authorized to invest in any obligations of this state may

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                  properly and legally invest any funds, including capital belonging to them or within their control.
                      (2) These obligations are also declared to be securities [which] that may properly and
                  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:
                       [63-9a-17].     63B-1-317. Publication of resolution or other proceeding -- Contest of
                  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 [chapter] part in one issue of a newspaper having general
                  circulation in this state.
                      (2) In case of resolution or other proceeding providing for the issuance of obligations
                  under this [chapter] part, the authority may, in lieu of publishing the entire resolution or other
                  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.

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                      (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 [shall refuse to affix his signature to
                  them, alleging as the reason for this the illegality of] refuses to sign them because the official
                  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. [In view]
                      (b) Because of the importance of the facilities construction and acquisition program
                  provided for in this [chapter,] part, the Utah Supreme Court shall:
                      (i) give this action [should be given] precedence over any other matters pending before
                  the court[,]; and [the court is requested to]
                      (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:
                       [63-9a-18].     63B-1-318. State Building Board duties -- Reimbursement.
                      (1) The [State Building Board] division shall:
                      (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[, and the board
                  shall]; and
                      (b) do all things necessary to keep those facilities in good order and repair [and].
                      (2) The division may perform all [these acts] of the duties established in Subsection (1)
                  pursuant to contracts with the authority.
                      (3) The [board] division shall be reimbursed for all direct costs of maintenance by 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:

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                       [63-9a-19].     63B-1-319. Legal, accounting, and auditing services.
                      (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) [shall] does not apply to attorneys' or accountants' opinions
                  [necessitated] required for the issuance of any obligations.
                      (3) The authority may:
                      (a) obtain accounting and auditing services in addition to those specified in [Subsection]
                  Subsections (1) and (2) from outside accountants and auditors, with the consent of the state
                  auditor[, and];
                      (b) obtain legal services in addition to those specified in [Subsection] Subsections (1)
                  and (2) from outside attorneys, with the consent of the attorney general[,]; and [may]
                      (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 [with respect to] for
                  which [such] those services [are utilized] were provided.
                      Section 20. Section 63B-1-320 , which is renumbered from Section 63-9a-20 is
                  renumbered and amended to read:
                       [63-9a-20].     63B-1-320. State to succeed to property of authority when
                  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 [act] part.
                      Section 21. Section 63B-1-321 , which is renumbered from Section 63-9a-20.5 is

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                  renumbered and amended to read:
                       [63-9a-20.5].     63B-1-321. Validation of prior obligations.
                      All obligations issued by the authority [prior to] before the effective date of this [act] part
                  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.

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