Download Zipped Introduced WP 9 HB0021.ZIP
[Status][Bill Documents][Fiscal Note][Bills Directory]

H.B. 21

             1     

STATE BUILDING OWNERSHIP AUTHORITY

             2     
RECODIFICATION AND REVISION

             3     
2003 GENERAL SESSION

             4     
STATE OF UTAH

             5     
Sponsor: Neil A. Hansen

             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     
Part 3. State Building Ownership Authority Act

             64           [63-9a-1].     63B-1-301. Title.
             65          This [chapter] part shall be known [and may be cited] as the "State Building Ownership
             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           [63-9a-2].     63B-1-302. Legislative findings.
             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 [act]
             88      part is in the public interest and is [hereby so] declared to be in the public interest as a matter of
             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 [act] part.
             94          Section 3. Section 63B-1-303 , which is renumbered from Section 63-9a-3 is
             95      renumbered and amended to read:
             96           [63-9a-3].     63B-1-303. Definitions.
             97          As used in this [chapter] part:
             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 [chapter]
             103      part.
             104          (3) " Division" means the Division of Facilities Construction and Management.
             105          [(3)] (4) (a) "Facility" or "facilities" means any public building, structure, highway, or
             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 [thereto] to them.
             110          (b) "Facility" includes a golf course.
             111          [(4)] (5) "Mortgage" means any mortgage, trust deed, indenture, pledge agreement,
             112      assignment, security agreement, financing statement, or other instrument [pursuant to which]
             113      that encumbers property [may be encumbered] as security for obligations.
             114          [(5)] (6) (a) "Obligations" means any mortgage certificates, notes, debentures, interim
             115      certificates, revenue bonds, or other evidences of financial indebtedness[, but not including].
             116          (b) "Obligations" does not mean general obligation bonds.
             117          [(6)] (7) (a) "State body" or "state bodies" means the state and any department, board,
             118      commission, or agency of the state.
             119          (b) Except as provided in Subsection [(6)] (7)(c), "state body" or "state bodies" does
             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          [(d) "State body" or "state bodies" includes applied technology centers.]
             125          Section 4. Section 63B-1-304 , which is renumbered from Section 63-9a-4 is
             126      renumbered and amended to read:
             127           [63-9a-4].     63B-1-304. State Building Ownership Authority created --
             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[. (2) The members] composed of:
             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 [shall serve
             134      as members of the State Building Ownership Authority].
             135          [(3)] (2) (a) (i) Members who are not government employees shall receive no
             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          [(4) The] (3) (a) Upon request, the division shall provide staff support to the State
             147      Building Ownership Authority [shall be located within the Department of Administrative
             148      Services for administrative purposes and shall receive staff support and all necessary
             149      information and resources from the department as required].
             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           [63-9a-5].     63B-1-305. Powers and duties of authority.
             156          (1) The authority shall have [the following powers and duties: (1) to have] perpetual
             157      succession as a body politic and corporate[;].
             158          (2) The authority may:
             159          [(2) to] (a) sue and to be sued in its own name;
             160          [(3) to] (b) have, and alter at will, an official seal;
             161          [(4) to] (c) contract with experts, advisers, consultants, and agents for needed services;
             162          [(5)] (d) with the prior approval of the Legislature, [to] borrow money and issue
             163      obligations, including refunding obligations;
             164          [(6) to] (e) receive and accept aid or contributions from any source, including the
             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 [chapter] part, subject to the conditions
             167      upon which this aid and contributions are made, for any purpose consistent with this [chapter]
             168      part;
             169          [(7) to] (f) enter into agreements with any department, agency or instrumentality of the
             170      United States or this state, financial institutions, or contractors for the purpose of leasing,
             171      maintaining, and operating any facility;
             172          [(8)] (g) to the extent permitted under its contract with the holders of its obligations,
             173      [to] consent to any modification relating to rate of interest, time and payment of any installment
             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          [(9) to] (h) pledge revenues from any facility to secure the payment of obligations
             177      relating to that facility, including interest on obligations, and to redeem those obligations;
             178          [(10) to] (i) cause to be executed mortgages, trust deeds, indentures, pledge
             179      agreements, assignments, security agreements, and financing statements encumbering property
             180      acquired, or constructed under this [chapter] part;
             181          [(11) to] (j) own, lease, operate, and encumber facilities acquired or constructed under
             182      this chapter by it or the [state building board] division;


             183          [(12) to] (k) exercise the power of eminent domain;
             184          [(13) to] (l) rent or lease any facility in whole or in part to any state body; and
             185          [(14) to] (m) have and exercise [such] any other powers or duties [as may be] that are
             186      necessary or appropriate to carry out and effectuate the purposes of this [chapter] part.
             187          Section 6. Section 63B-1-306 , which is renumbered from Section 63-9a-6 is
             188      renumbered and amended to read:
             189           [63-9a-6].     63B-1-306. Obligations issued by authority -- Limitation of liability
             190      on obligations -- Limitation on amount of obligations issued.
             191          (1) (a) All obligations issued by the authority under this [chapter] part shall be limited
             192      obligations of the authority and [shall] may not constitute, nor give rise to, a general obligation
             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 [Bond] Bonds;
             215      and
             216          (ix) Title 63B, Chapter 10, Part 2, 2001 Highway General Obligation Bond
             217      Anticipation Notes [Authorization];
             218          (x) Title 63B, Chapter 11, Part 5, 2002 Highway General Obligation [Bond] Bonds for
             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 [Authorization].
             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 [such] the times [as] that the authority [may determine]
             231      determines;
             232          (c) be in the form and denominations [as] that the authority [may determine]
             233      determines;
             234          (d) be of the tenor [as] that the authority [may determine] determines;
             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 [as] that the authority [may
             237      determine] determines;
             238          (g) be payable at the places, either within or without this state, [as] that the authority
             239      [may determine] determines;
             240          (h) bear interest at the rate or rates, payable at the place or places, and evidenced in the
             241      manner, [as] that the authority [may determine] determines;
             242          (i) be redeemable [prior to] before maturity, with or without premium;
             243          (j) contain [such] any other provisions not inconsistent with this [chapter as shall be
             244      deemed] part that are considered to be for the best interests of the authority and provided for in


             245      the proceedings of the authority under which the bonds [shall be] are authorized to be issued;
             246      and
             247          (k) bear facsimile signatures and seals.
             248          (4) The authority may pay any expenses, premiums, or commissions, [which] that it
             249      [deems] considers necessary or advantageous in connection with the authorization, sale, and
             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           [63-9a-7].     63B-1-307. Lease of facilities to state bodies -- Rental.
             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 [chapter, which]
             257      part.
             258          (2) The leases or agreements may provide for the operation, maintenance, and
             259      insurance of the facility. [The]
             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 [shall be] is in proportion to the space occupied in the facility by that state body
             263      [and];
             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 [and];
             268          (ii) the expenses of the authority in administering the facilities under this [chapter and]
             269      part;
             270          (iii) amounts needed to provide reserves to secure obligations, to maintain, repair,
             271      renovate, reconstruct, or replace those facilities[,]; and [such]
             272          (iv) any other reserves and funds [as] that the authority [deems] considers necessary or
             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           [63-9a-8].     63B-1-308. Payment of obligations out of rentals -- Other
             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 [chapter, every] part:
             280          (a) each obligation issued or caused to be issued by the authority, and the interest
             281      [thereon, shall be] on that obligation, is payable solely out of rentals or lease payments received
             282      by the authority for the facilities constructed or acquired under this [chapter, and all
             283      obligations] part; and
             284          (b) each obligation shall [so] state that information on [their] its face.
             285          (2) Except to the extent that facilities are encumbered, nothing in this [chapter shall]
             286      part may be construed [as requiring] to:
             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 [chapter] part, or any interest [thereon, or as requiring] on any of
             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[. Neither shall anything in this chapter be construed as requiring]; or
             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 [such] the portion
             303      of that facility [as] that it has occupied under that lease or agreement, and the rental or lease
             304      obligation under the [same] lease or agreement shall then cease.
             305          Section 9. Section 63B-1-309 , which is renumbered from Section 63-9a-9 is
             306      renumbered and amended to read:


             307           [63-9a-9].     63B-1-309. Securing of obligations -- Provisions in mortgages given
             308      as security -- Procedure upon default.
             309          (1) The principal and interest on any obligation issued under this [chapter] part:
             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 [as may be deemed]
             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 [chapter] part and any mortgage given to secure the [same] obligations may contain any
             319      agreements and provisions customarily contained in instruments securing obligations,
             320      including, but not limited to, provisions respecting:
             321          [(a)] (i) the fixing and collection of rents for any facility covered by the proceedings or
             322      mortgage;
             323          [(b)] (ii) the terms to be incorporated in the lease of that facility;
             324          [(c)] (iii) the operation, maintenance, and insurance of that facility;
             325          [(d)] (iv) the creation and maintenance of special reserve or other funds and accounts
             326      from the proceeds of sale of obligations or from the revenues of that facility; and
             327          [(e)] (v) the rights and remedies available in the event of a default to the holders of
             328      obligations or to the trustee under a mortgage, as the authority may determine in accordance
             329      with this [chapter] part.
             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 [chapter] part, and any
             334      mortgage securing these obligations, may provide that, [in the event of] if there is a default in
             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 [chapter] part to secure obligations issued
             341      pursuant to it may also provide that, in the event of a default in the payment of [same] the
             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. [No]
             347          (c) A breach of the agreement [shall] does not impose any general obligation or
             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           [63-9a-10].     63B-1-310. Proceeds from sale of obligations -- Use.
             353          (1) The proceeds from the sale of obligations issued [pursuant to this act shall] under
             354      this part may be applied only for the purposes for which the obligations were issued. [However,
             355      any]
             356          (2) Any accrued interest and premium received upon [such] the sale, and any portion of
             357      [such] the proceeds [which] that may not be needed for the purposes for which the obligations
             358      were issued, [that portion] shall be applied to the payment of the principal of, or the interest on,
             359      [such] the obligations.
             360          Section 11. Section 63B-1-311 , which is renumbered from Section 63-9a-11 is
             361      renumbered and amended to read:
             362           [63-9a-11].     63B-1-311. Cost of acquiring or constructing facility.
             363          The cost of acquiring or constructing any facility shall be [deemed] considered to
             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[,] whose opinions are required to secure
             372      the issuance of those obligations[,];
             373          (b) financial advisors' fees and commissions [and];
             374          (c) printing costs[,];
             375          (d) those amounts [as] that the authority [shall find] considers necessary to establish
             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 [prior to] before, during, and
             379      for a reasonable period of time after, completion of[,] the acquisition or construction.
             380          Section 12. Section 63B-1-312 , which is renumbered from Section 63-9a-12 is
             381      renumbered and amended to read:
             382           [63-9a-12].     63B-1-312. Signature of former member or officer of authority --
             383      Continuing validity.
             384          If any of the members or officers of the authority [shall] no longer occupy [such] their
             385      position at the time of the delivery of any obligations signed by them, their signatures or
             386      facsimiles [thereof shall nevertheless be] of their signatures are valid and sufficient for all
             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           [63-9a-13].     63B-1-313. Negotiability of obligations -- Registration.
             391          All obligations of the authority [shall be deemed to be] are negotiable instruments
             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           [63-9a-14].     63B-1-314. Person executing obligations not personally liable.
             397          No person executing any obligations issued [pursuant to this act shall be] under this part
             398      is subject to personal liability or accountability [by reason] because of the issuance [thereof].
             399          Section 15. Section 63B-1-315 , which is renumbered from Section 63-9a-15 is


             400      renumbered and amended to read:
             401           [63-9a-15].     63B-1-315. Tax exemption.
             402          (1) All property acquired or held by the authority under this [chapter] part is declared
             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 [chapter] part,
             405      the interest payable on them, and income derived from them, [shall be] are exempt from all
             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           [63-9a-16].     63B-1-316. Obligations as legal investments -- Deposit of
             411      obligations.
             412          (1) The obligations issued [pursuant to] under this [act shall be] part are securities in
             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 [which] that may properly and
             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           [63-9a-17].     63B-1-317. Publication of resolution or other proceeding -- Contest
             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 [chapter] part in one issue of a newspaper having
             426      general circulation in this state.
             427          (2) In case of resolution or other proceeding providing for the issuance of obligations
             428      under this [chapter] part, the authority may, in lieu of publishing the entire resolution or other
             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 [shall refuse to affix his signature
             446      to them, alleging as the reason for this the illegality of] refuses to sign them because the official
             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. [In
             449      view]
             450          (b) Because of the importance of the facilities construction and acquisition program
             451      provided for in this [chapter,] part, the Utah Supreme Court shall:
             452          (i) give this action [should be given] precedence over any other matters pending before
             453      the court[,]; and [the court is requested to]
             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           [63-9a-18].     63B-1-318. State Building Board duties -- Reimbursement.
             458          (1) The [State Building Board] division shall:
             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[, and the board
             461      shall]; and


             462          (b) do all things necessary to keep those facilities in good order and repair [and].
             463          (2) The division may perform all [these acts] of the duties established in Subsection (1)
             464      pursuant to contracts with the authority.
             465          (3) The [board] division shall be reimbursed for all direct costs of maintenance by 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           [63-9a-19].     63B-1-319. Legal, accounting, and auditing services.
             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) [shall] does not apply to attorneys' or accountants' opinions
             477      [necessitated] required for the issuance of any obligations.
             478          (3) The authority may:
             479          (a) obtain accounting and auditing services in addition to those specified in
             480      [Subsection] Subsections (1) and (2) from outside accountants and auditors, with the consent of
             481      the state auditor[, and];
             482          (b) obtain legal services in addition to those specified in [Subsection] Subsections (1)
             483      and (2) from outside attorneys, with the consent of the attorney general[,]; and [may]
             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 [with respect to] for
             488      which [such] those services [are utilized] were provided.
             489          Section 20. Section 63B-1-320 , which is renumbered from Section 63-9a-20 is
             490      renumbered and amended to read:
             491           [63-9a-20].     63B-1-320. State to succeed to property of authority when
             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 [act] part.
             499          Section 21. Section 63B-1-321 , which is renumbered from Section 63-9a-20.5 is
             500      renumbered and amended to read:
             501           [63-9a-20.5].     63B-1-321. Validation of prior obligations.
             502          All obligations issued by the authority [prior to] before the effective date of this [act]
             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.


[Bill Documents][Bills Directory]