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H.B. 21
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6 This act modifies provisions governing the State Building Ownership Authority. This act
7 removes the State Building Board as the State Building Ownership Authority and
8 designates the governor, state treasurer, and chair of the State Building Board as the
9 State Building Ownership Authority. This act requires the Division of Facilities
10 Construction and Management to perform certain duties formerly directed to be
11 performed by the State Building Board. This act recodifies the State Building Ownership
12 Authority sections into the Bond title and makes other technical corrections.
13 This act affects sections of Utah Code Annotated 1953 as follows:
14 RENUMBERS AND AMENDS:
15 63B-1-301, (Renumbered from 63-9a-1, as last amended by Chapter 260, Laws of Utah
16 1981)
17 63B-1-302, (Renumbered from 63-9a-2, as last amended by Chapter 314, Laws of Utah
18 1998)
19 63B-1-303, (Renumbered from 63-9a-3, as last amended by Chapters 67 and 314, Laws
20 of Utah 1998)
21 63B-1-304, (Renumbered from 63-9a-4, as last amended by Chapter 243, Laws of Utah
22 1996)
23 63B-1-305, (Renumbered from 63-9a-5, as last amended by Chapter 260, Laws of Utah
24 1981)
25 63B-1-306, (Renumbered from 63-9a-6, as last amended by Chapter 266, Laws of Utah
26 2002)
27 63B-1-307, (Renumbered from 63-9a-7, as last amended by Chapter 260, Laws of Utah
28 1981)
29 63B-1-308, (Renumbered from 63-9a-8, as last amended by Chapter 260, Laws of Utah
30 1981)
31 63B-1-309, (Renumbered from 63-9a-9, as last amended by Chapter 260, Laws of Utah
32 1981)
33 63B-1-310, (Renumbered from 63-9a-10, as enacted by Chapter 230, Laws of Utah
34 1979)
35 63B-1-311, (Renumbered from 63-9a-11, as last amended by Chapter 260, Laws of
36 Utah 1981)
37 63B-1-312, (Renumbered from 63-9a-12, as enacted by Chapter 230, Laws of Utah
38 1979)
39 63B-1-313, (Renumbered from 63-9a-13, as last amended by Chapter 20, Laws of Utah
40 1995)
41 63B-1-314, (Renumbered from 63-9a-14, as enacted by Chapter 230, Laws of Utah
42 1979)
43 63B-1-315, (Renumbered from 63-9a-15, as last amended by Chapter 61, Laws of Utah
44 1984)
45 63B-1-316, (Renumbered from 63-9a-16, as enacted by Chapter 230, Laws of Utah
46 1979)
47 63B-1-317, (Renumbered from 63-9a-17, as last amended by Chapter 260, Laws of
48 Utah 1981)
49 63B-1-318, (Renumbered from 63-9a-18, as last amended by Chapter 260, Laws of
50 Utah 1981)
51 63B-1-319, (Renumbered from 63-9a-19, as last amended by Chapter 260, Laws of
52 Utah 1981)
53 63B-1-320, (Renumbered from 63-9a-20, as enacted by Chapter 230, Laws of Utah
54 1979)
55 63B-1-321, (Renumbered from 63-9a-20.5, as enacted by Chapter 260, Laws of Utah
56 1981)
57 REPEALS:
58 63-9a-21, as last amended by Chapter 20, Laws of Utah 1995
59 63-9a-22, as last amended by Chapter 82, Laws of Utah 1997
60 Be it enacted by the Legislature of the state of Utah:
61 Section 1. Section 63B-1-301 , which is renumbered from Section 63-9a-1 is
62 renumbered and amended to read:
63
64 [
65 This [
66 Authority Act."
67 Section 2. Section 63B-1-302 , which is renumbered from Section 63-9a-2 is
68 renumbered and amended to read:
69 [
70 The Legislature finds and declares as follows:
71 (1) it is the policy of this state to provide office space and related facilities for state
72 bodies and such other governmental facilities and property, including highways and highway
73 rights-of-way, as may be necessary or desirable, in the most efficient and economical way
74 possible;
75 (2) many state bodies are inadequately provided with necessary office space, related
76 facilities, other governmental facilities, and property to serve the public welfare;
77 (3) the state is renting space for state bodies in privately owned buildings with funds
78 which could more efficiently and economically be put to use toward the purchase and
79 acquisition of facilities by the state;
80 (4) in order to provide for a fully adequate supply of office space, related facilities,
81 other governmental facilities, and property at the lowest possible cost, this Legislature should
82 establish a State Building Ownership Authority for the purpose of financing, owning, leasing,
83 operating, or encumbering such facilities to meet the needs of the state government and to
84 serve the public welfare;
85 (5) the foregoing involve public purposes and uses for which public moneys may be
86 borrowed, expended, advanced, loaned, or granted, the activities specified would serve a public
87 purpose in improving or otherwise benefiting the people of this state and, therefore, this [
88 part is in the public interest and is [
89 express legislative determination; and
90 (6) the compelling need within this state for the creation of an adequate supply of
91 office space, related facilities, other government facilities, and property for state bodies at a
92 low cost can be best met by the establishment of a body corporate and politic vested with the
93 powers and duties specified in this [
94 Section 3. Section 63B-1-303 , which is renumbered from Section 63-9a-3 is
95 renumbered and amended to read:
96 [
97 As used in this [
98 (1) "Acquire or construct," "acquired or constructed," "constructed or acquired,"
99 "acquiring or constructing," or "acquisition or construction" means any acquisition,
100 construction, reconstruction, restoration, enlargement, improvement, renovation, repair,
101 replacement, equipping or furnishing, in whole or in part, of a facility.
102 (2) "Authority" means the State Building Ownership Authority created by this [
103 part.
104 (3) " Division" means the Division of Facilities Construction and Management.
105 [
106 property for any governmental purpose of state bodies, and the related and appurtenant
107 easements, rights-of-way, improvements, paving, utilities, landscaping, parking facilities, and
108 the lands, interests in land, and grounds, together with the personal property necessary,
109 convenient, or appurtenant [
110 (b) "Facility" includes a golf course.
111 [
112 assignment, security agreement, financing statement, or other instrument [
113 that encumbers property [
114 [
115 certificates, revenue bonds, or other evidences of financial indebtedness[
116 (b) "Obligations" does not mean general obligation bonds.
117 [
118 commission, or agency of the state.
119 (b) Except as provided in Subsection [
120 not mean colleges and universities.
121 (c) "State body" or "state bodies" includes a college or university when the obligation
122 to be issued will finance the acquisition or construction of research facilities, housing facilities,
123 or student centers at the college or university.
124 [
125 Section 4. Section 63B-1-304 , which is renumbered from Section 63-9a-4 is
126 renumbered and amended to read:
127 [
128 Members -- Compensation -- Location in Department of Administrative Services.
129 (1) There is created a body politic and corporate to be known as the State Building
130 Ownership Authority[
131 (a) the governor;
132 (b) the state treasurer; and
133 (c) the chair of the State Building Board created under Section 63A-5-101 [
134
135 [
136 compensation or benefits for their services, but may receive per diem and expenses incurred in
137 the performance of the member's official duties at the rates established by the Division of
138 Finance under Sections 63A-3-106 and 63A-3-107 .
139 (ii) Members may decline to receive per diem and expenses for their service.
140 (b) (i) State government officer and employee members who do not receive salary, per
141 diem, or expenses from their agency for their service may receive per diem and expenses
142 incurred in the performance of their official duties from the authority at the rates established by
143 the Division of Finance under Sections 63A-3-106 and 63A-3-107 .
144 (ii) State government officer and employee members may decline to receive per diem
145 and expenses for their service.
146 [
147 Building Ownership Authority [
148
149
150 (b) The State Building Ownership Authority may seek and obtain independent financial
151 advice, support, and information from the state financial advisor created under Section
152 67-4-16 .
153 Section 5. Section 63B-1-305 , which is renumbered from Section 63-9a-5 is
154 renumbered and amended to read:
155 [
156 (1) The authority shall have [
157 succession as a body politic and corporate[
158 (2) The authority may:
159 [
160 [
161 [
162 [
163 obligations, including refunding obligations;
164 [
165 United States or this state, in the form of money, property, labor, or other things of value to be
166 held, used and applied to carry out the purposes of this [
167 upon which this aid and contributions are made, for any purpose consistent with this [
168 part;
169 [
170 United States or this state, financial institutions, or contractors for the purpose of leasing,
171 maintaining, and operating any facility;
172 [
173 [
174 of principal or interest, security or any other term of any contract, mortgage, mortgage loan,
175 mortgage loan commitment, contract or agreement of any kind to which it is a party;
176 [
177 relating to that facility, including interest on obligations, and to redeem those obligations;
178 [
179 agreements, assignments, security agreements, and financing statements encumbering property
180 acquired, or constructed under this [
181 [
182 this chapter by it or the [
183 [
184 [
185 [
186 necessary or appropriate to carry out and effectuate the purposes of this [
187 Section 6. Section 63B-1-306 , which is renumbered from Section 63-9a-6 is
188 renumbered and amended to read:
189 [
190 on obligations -- Limitation on amount of obligations issued.
191 (1) (a) All obligations issued by the authority under this [
192 obligations of the authority and [
193 or liability of, nor a charge against the general credit or taxing power of, this state or any of its
194 political subdivisions.
195 (b) This limitation shall be plainly stated upon all obligations.
196 (2) (a) No authority obligations incurred under this section may be issued in an amount
197 exceeding the difference between the total indebtedness of the state and an amount equal to
198 1-1/2% of the value of the taxable property of the state.
199 (b) Debt issued under authority of the following parts may not be included as part of
200 the total indebtedness of the state of Utah in determining the debt limit established by this
201 Subsection (2):
202 (i) Title 63B, Chapter 6, Part 2, 1997 Highway General Obligation Bond
203 Authorization;
204 (ii) Title 63B, Chapter 6, Part 3, 1997 Highway Bond Anticipation Note Authorization;
205 (iii) Title 63B, Chapter 7, Part 2, 1998 Highway General Obligation Bond
206 Authorization;
207 (iv) Title 63B, Chapter 7, Part 3, 1998 Highway Bond Anticipation Note
208 Authorization;
209 (v) Title 63B, Chapter 8, Part 2, 1999 Highway General Obligation Bond
210 Authorization;
211 (vi) Title 63B, Chapter 8, Part 3, 1999 Highway Bond Anticipation Note
212 Authorization;
213 (vii) Title 63B, Chapter 9, Part 2, 2000 Highway General Obligation Bond;
214 (viii) Title 63B, Chapter 10, Part 1, 2001 Highway General Obligation [
215 and
216 (ix) Title 63B, Chapter 10, Part 2, 2001 Highway General Obligation Bond
217 Anticipation Notes [
218 (x) Title 63B, Chapter 11, Part 5, 2002 Highway General Obligation [
219 Salt Lake County; and
220 (xi) Title 63B, Chapter 11, Part 6, 2002 Highway General Obligation Bond
221 Anticipation Notes for Salt Lake County [
222 (c) Debt issued under authority of Section 63B-7-503 may not be included as part of
223 the total indebtedness of the state in determining the debt limit established by this Subsection
224 (2).
225 (3) The obligations shall be authorized by resolution of the authority, following
226 approval of the Legislature, and may:
227 (a) be executed and delivered at any time, and from time to time, as the authority may
228 determine;
229 (b) be sold at public or private sale in the manner and at the prices, either at, in excess
230 of, or below their face value and at [
231 determines;
232 (c) be in the form and denominations [
233 determines;
234 (d) be of the tenor [
235 (e) be in registered or bearer form either as to principal or interest or both;
236 (f) be payable in those installments and at the times [
237
238 (g) be payable at the places, either within or without this state, [
239 [
240 (h) bear interest at the rate or rates, payable at the place or places, and evidenced in the
241 manner, [
242 (i) be redeemable [
243 (j) contain [
244
245 the proceedings of the authority under which the bonds [
246 and
247 (k) bear facsimile signatures and seals.
248 (4) The authority may pay any expenses, premiums, or commissions, [
249 [
250 issuance of these obligations, from the proceeds of the sale of the obligations or from the
251 revenues of the projects involved.
252 Section 7. Section 63B-1-307 , which is renumbered from Section 63-9a-7 is
253 renumbered and amended to read:
254 [
255 (1) The authority and state bodies shall enter into leases or agreements for the use and
256 occupancy of any portion of any facility constructed or acquired under this [
257 part.
258 (2) The leases or agreements may provide for the operation, maintenance, and
259 insurance of the facility. [
260 (3) The leases and agreements shall provide that:
261 (a) the rental to be paid annually by each state body to the authority for the use and
262 occupancy [
263 [
264 (b) those rentals shall be in an amount sufficient to completely pay all principal and
265 interest on those obligations as they come due; and
266 (c) those rentals may include:
267 (i) the cost of maintenance, operation, and insurance of those facilities [
268 (ii) the expenses of the authority in administering the facilities under this [
269 part;
270 (iii) amounts needed to provide reserves to secure obligations, to maintain, repair,
271 renovate, reconstruct, or replace those facilities[
272 (iv) any other reserves and funds [
273 advisable in order to sell its obligations.
274 Section 8. Section 63B-1-308 , which is renumbered from Section 63-9a-8 is
275 renumbered and amended to read:
276 [
277 governmental entities not liable for payment -- Appropriations for increased rentals --
278 Defaulting bodies to quit premises.
279 (1) Except as secured as provided in this [
280 (a) each obligation issued or caused to be issued by the authority, and the interest
281 [
282 by the authority for the facilities constructed or acquired under this [
283
284 (b) each obligation shall [
285 (2) Except to the extent that facilities are encumbered, nothing in this [
286 part may be construed [
287 (a) require the state, or any department, board, commission, agency, or political
288 subdivision of the state, other than the authority, to pay any part of any obligation issued or
289 caused to be issued under this [
290 those obligations;
291 (b) require the state or any department, board, commission, agency or political
292 subdivision of the state, other than the state body or state bodies leasing any portion of the
293 facilities, to pay any rental due to the authority by any state body under the terms of any lease
294 of facilities[
295 (c) require the Legislature to appropriate any money to pay these obligations, interest,
296 or rentals.
297 (3) If the rentals paid by a state body to the authority are insufficient to pay the
298 principal and interest on the obligations or other amounts payable from rentals when due, the
299 governor may request the Legislature to appropriate additional funds to that body for the
300 payment of increased rentals.
301 (4) If a state body fails to pay any rentals due to the authority under the terms of any
302 lease or agreement for facilities, that body shall immediately quit and vacate [
303 of that facility [
304 obligation under the [
305 Section 9. Section 63B-1-309 , which is renumbered from Section 63-9a-9 is
306 renumbered and amended to read:
307 [
308 as security -- Procedure upon default.
309 (1) The principal and interest on any obligation issued under this [
310 (a) shall be secured by a pledge and assignment of the revenues out of which that
311 obligation shall be made payable;
312 (b) may be secured by a mortgage covering all or any part of the facility for which the
313 revenues from the obligation were used;
314 (c) may be secured by a pledge and assignment of the lease of that facility; and
315 (d) may be secured by any other security device on that facility [
316 that is considered most advantageous by the authority.
317 (2) (a) The proceedings under which the obligations are authorized to be issued under
318 this [
319 agreements and provisions customarily contained in instruments securing obligations,
320 including, but not limited to, provisions respecting:
321 [
322 mortgage;
323 [
324 [
325 [
326 from the proceeds of sale of obligations or from the revenues of that facility; and
327 [
328 obligations or to the trustee under a mortgage, as the authority may determine in accordance
329 with this [
330 (b) All these mortgages, trust deeds, security agreements, or trust indentures shall
331 provide that no deficiency judgment upon foreclosure may be entered against the authority, this
332 state, or any of its political subdivisions.
333 (3) The proceedings authorizing obligations under this [
334 mortgage securing these obligations, may provide that, [
335 the payment of the principal of or the interest on these obligations or in the performance of any
336 agreement contained in the proceedings or mortgage, the payment or performance may be
337 enforced by the appointment of a receiver relative to that facility with power to charge and
338 collect rents and to apply the revenues from the facility in accordance with the proceedings or
339 the provisions of the mortgage.
340 (4) (a) Any mortgage made under this [
341 pursuant to it may also provide that, in the event of a default in the payment of [
342 mortgage or the violation of any agreement contained in the mortgage, the mortgage may be
343 foreclosed or otherwise realized on in any manner permitted by law.
344 (b) The mortgage may also provide that any trustee under the mortgage or the holder of
345 any of the obligations secured by the mortgage may become the purchaser at any foreclosure
346 sale, if that trustee is highest bidder. [
347 (c) A breach of the agreement [
348 liability upon, nor a charge against, the authority or the general credit or taxing power of this
349 state or any of its political subdivisions.
350 Section 10. Section 63B-1-310 , which is renumbered from Section 63-9a-10 is
351 renumbered and amended to read:
352 [
353 (1) The proceeds from the sale of obligations issued [
354 this part may be applied only for the purposes for which the obligations were issued. [
355
356 (2) Any accrued interest and premium received upon [
357 [
358 were issued, [
359 [
360 Section 11. Section 63B-1-311 , which is renumbered from Section 63-9a-11 is
361 renumbered and amended to read:
362 [
363 The cost of acquiring or constructing any facility shall be [
364 include the following:
365 (1) the actual cost of acquiring or improving real estate;
366 (2) the actual cost of enlarging, constructing, reconstructing, improving, replacing,
367 restoring, renovating, maintaining, equipping, or furnishing all or any part of a facility,
368 including architects' or engineers' fees; and
369 (3) all expenses connected with the authorization, sale, and issuance of the obligations
370 to finance the acquisition or construction, including:
371 (a) fees for outside attorneys or accountants[
372 the issuance of those obligations[
373 (b) financial advisors' fees and commissions [
374 (c) printing costs[
375 (d) those amounts [
376 bond reserves and maintenance, repair, replacement, and contingency funds and accounts[
377 and
378 (e) the interest on these obligations for a reasonable time [
379 for a reasonable period of time after, completion of[
380 Section 12. Section 63B-1-312 , which is renumbered from Section 63-9a-12 is
381 renumbered and amended to read:
382 [
383 Continuing validity.
384 If any of the members or officers of the authority [
385 position at the time of the delivery of any obligations signed by them, their signatures or
386 facsimiles [
387 purposes, as if they had remained in office until that delivery.
388 Section 13. Section 63B-1-313 , which is renumbered from Section 63-9a-13 is
389 renumbered and amended to read:
390 [
391 All obligations of the authority [
392 within the meaning of, and for all purposes of Title 70A, Uniform Commercial Code, subject
393 only to any provisions of those obligations relating to registration.
394 Section 14. Section 63B-1-314 , which is renumbered from Section 63-9a-14 is
395 renumbered and amended to read:
396 [
397 No person executing any obligations issued [
398 is subject to personal liability or accountability [
399 Section 15. Section 63B-1-315 , which is renumbered from Section 63-9a-15 is
400 renumbered and amended to read:
401 [
402 (1) All property acquired or held by the authority under this [
403 to be public property used for essential public and governmental purposes.
404 (2) All property and income from it, and all obligations issued under this [
405 the interest payable on them, and income derived from them, [
406 taxation imposed by this state or any of its political subdivisions, except for the corporate
407 franchise tax.
408 Section 16. Section 63B-1-316 , which is renumbered from Section 63-9a-16 is
409 renumbered and amended to read:
410 [
411 obligations.
412 (1) The obligations issued [
413 which all persons and organizations authorized to invest in any obligations of this state may
414 properly and legally invest any funds, including capital belonging to them or within their
415 control.
416 (2) These obligations are also declared to be securities [
417 legally be deposited with, and received by, any state, county, or municipal officer, or agency of
418 the state for any purpose for which the deposit of any obligations of the state is authorized by
419 law.
420 Section 17. Section 63B-1-317 , which is renumbered from Section 63-9a-17 is
421 renumbered and amended to read:
422 [
423 of proceedings -- Mandamus to compel official to sign obligations.
424 (1) The authority may provide for the publication of any resolution it adopts for the
425 authorization of obligations under this [
426 general circulation in this state.
427 (2) In case of resolution or other proceeding providing for the issuance of obligations
428 under this [
429 proceeding, publish a notice of obligations to be issued, titled as such, containing:
430 (a) the name of the authority;
431 (b) the purpose of the issue;
432 (c) the type of obligations and the principal amount to be issued;
433 (d) the maximum maturity of the obligations;
434 (e) the maximum net effective rate of interest payable on the issue of obligations;
435 (f) the maximum discount from par which is to be permitted if the obligations may be
436 sold at a discount below par value; and
437 (g) the times and place where a copy of the resolution or other proceeding may be
438 examined, during regular business hours, for a period of at least 30 days after the publication of
439 the notice.
440 (3) (a) For a period of 30 days after the date of publication under Subsection (1) or (2),
441 any interested person may contest the legality of the resolution, of the obligations authorized by
442 it, or any of the provisions made for the security and payment of these obligations.
443 (b) After this period, no one shall have any cause of action to contest the regularity,
444 formality, or legality of same for any cause whatsoever, except as provided in Subsection (4).
445 (4) (a) If any official required to sign the obligations [
446
447 alleges that the obligations to be signed are illegal, the authority may bring an original action in
448 the supreme court for a writ of mandamus requiring the official to sign the obligations. [
449
450 (b) Because of the importance of the facilities construction and acquisition program
451 provided for in this [
452 (i) give this action [
453 the court[
454 (ii) consider and determine these matters at the earliest possible time.
455 Section 18. Section 63B-1-318 , which is renumbered from Section 63-9a-18 is
456 renumbered and amended to read:
457 [
458 (1) The [
459 (a) construct, maintain, allocate the space in, and dispose of all facilities acquired or
460 constructed for the authority with the proceeds of obligations of the authority[
461
462 (b) do all things necessary to keep those facilities in good order and repair [
463 (2) The division may perform all [
464 pursuant to contracts with the authority.
465 (3) The [
466 authority from funds derived from rental or lease payments.
467 (4) Nothing contained in this part may be construed to limit, supersede, or otherwise
468 change in any way the authority of the division provided in Title 63A, Chapter 5, State
469 Building Board - Division of Facilities Construction and Management.
470 Section 19. Section 63B-1-319 , which is renumbered from Section 63-9a-19 is
471 renumbered and amended to read:
472 [
473 (1) The attorney general shall provide all legal services, and the state auditor shall
474 provide all accounting and auditing services, required by the authority, without reimbursement
475 from that authority.
476 (2) Subsection (1) [
477 [
478 (3) The authority may:
479 (a) obtain accounting and auditing services in addition to those specified in
480 [
481 the state auditor[
482 (b) obtain legal services in addition to those specified in [
483 and (2) from outside attorneys, with the consent of the attorney general[
484 (c) include the costs of these services:
485 (i) in the rentals and charges payable to it under leases or agreements between it and
486 state bodies for the use of space in facilities; or
487 (ii) as a cost payable from the proceeds of the sale of obligations [
488 which [
489 Section 20. Section 63B-1-320 , which is renumbered from Section 63-9a-20 is
490 renumbered and amended to read:
491 [
492 encumbrances paid or authority dissolved.
493 (1) Each facility shall immediately vest in and become the property of this state when
494 the obligations encumbering it are paid.
495 (2) If the authority is dissolved at any time, for any reason, all property of the authority
496 shall immediately vest in and become the property of this state, which shall succeed to all
497 rights of the authority and to any encumbrances which may then exist on any particular
498 facilities, to the extent provided by this [
499 Section 21. Section 63B-1-321 , which is renumbered from Section 63-9a-20.5 is
500 renumbered and amended to read:
501 [
502 All obligations issued by the authority [
503 part and all proceedings had in the authorization and issuance of these obligations and all
504 agreements with respect to them and the security for them are:
505 (1) validated, ratified, and confirmed; and
506 (2) all these obligations, agreements, and security are declared to constitute legally
507 binding obligations of the authority and all state bodies relating to them in accordance with
508 their terms.
509 Section 22. Repealer.
510 This act repeals:
511 Section 63-9a-21, State Building Ownership Authority Program of 1979 --
512 Obligations for general office building facility authorized.
513 Section 63-9a-22, State Building Ownership Authority Program -- Obligations for
514 agriculture and food department office building facility authorized.
Legislative Review Note
as of 11-20-02 5:16 PM
A limited legal review of this legislation raises no obvious constitutional or statutory concerns.
Office of Legislative Research and General Counsel
Interim Committee Note
as of 12-12-02 3:48 PM
The Government Operations Interim Committee recommended this bill.
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