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S.B. 2 Enrolled
This act modifies the Bonding Code by authorizing the issuance and sale of general
obligation bonds by the State Bonding Commission for capital facilities and for certain
highways and related facilities. This act specifies the use of the bond proceeds and the
manner of issuance. This act approves the issuance of certain obligations by the State
Building Ownership Authority and authorizes other capital facility expenditures.
This act affects sections of Utah Code Annotated 1953 as follows:
ENACTS:
63B-12-101, Utah Code Annotated 1953
63B-12-102, Utah Code Annotated 1953
63B-12-201, Utah Code Annotated 1953
63B-12-301, Utah Code Annotated 1953
Be it enacted by the Legislature of the state of Utah:
Section 1. Section 63B-12-101 is enacted to read:
63B-12-101. Capital facilities bonds -- Maximum amount -- Projects authorized.
(1) The total amount of bonds issued under this section may not exceed $65,300,000.
(2) (a) Proceeds from the issuance of bonds shall be provided to the division to provide
funds to pay all or part of the cost of acquiring and constructing the projects listed in this
Subsection (2).
(b) These costs may include the cost of acquiring land, interests in land, easements and
rights-of-way, improving sites, and acquiring, constructing, equipping, and furnishing facilities
and all structures, roads, parking facilities, utilities, and improvements necessary, incidental, or
convenient to the facilities, interest estimated to accrue on these bonds during the period to be
covered by construction of the projects plus a period of six months after the end of the
construction period, and all related engineering, architectural, and legal fees.
(c) For the division, proceeds shall be provided for the following:
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CAPITAL IMPROVEMENTS
Alterations, Repairs,
and Improvements $4,200,000
TOTAL CAPITAL IMPROVEMENTS $4,200,000
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CAPITAL DEVELOPMENT PROJECTS
Estimated
Operations Project
Project and Amount
Description Maintenance Funded
---------------------------- ----------------- ----------------
Division of Archives -
Building $143,000 $8,000,000
Utah Valley State College -
Purchase of
Vineyard Elementary $629,800 $6,600,000
Capitol Restoration $0 $5,800,000
Utah State University -
Library $600,000 $40,000,000
TOTAL CAPITAL
DEVELOPMENT
PROJECTS $60,400,000
-------------------------------------------------------------------------------------------------------------- -----
TOTAL GENERAL OBLIGATION BOND AUTHORIZATION
FOR CAPITAL IMPROVEMENTS AND
CAPITAL DEVELOPMENT PROJECTS $64,600,000
-------------------------------------------------------------------------------------------------------------- -----
(d) For purposes of this section, operations and maintenance costs:
(i) are estimates only;
(ii) may include any operations and maintenance costs already funded in existing agency
budgets; and
(iii) are not commitments by this Legislature or future Legislatures to fund those
operations and maintenance costs.
(3) (a) The amounts funded as listed in Subsection (2) are estimates only and do not
constitute a limitation on the amount that may be expended for any project.
(b) The board may revise these estimates and redistribute the amount estimated for a
project among the projects authorized.
(c) The commission, by resolution and in consultation with the board, may delete one or
more projects from this list if the inclusion of that project or those projects in the list could be
construed to violate state law or federal law or regulation.
(4) (a) The division may enter into agreements related to these projects before the receipt
of proceeds of bonds issued under this chapter.
(b) The division shall make those expenditures from unexpended and unencumbered
building funds already appropriated to the Capital Projects Fund.
(c) The division shall reimburse the Capital Projects Fund upon receipt of the proceeds
of bonds issued under this chapter.
(d) The commission or the state treasurer may make any statement of intent relating to
that reimbursement that is necessary or desirable to comply with federal tax law.
Section 2. Section 63B-12-102 is enacted to read:
63B-12-102. Highway bonds -- Maximum amount -- Projects authorized.
(1) The total amount of bonds issued under this part may not exceed $109,500,000.
(2) (a) Proceeds from the issuance of bonds shall be provided to the Department of
Transportation to provide funds to pay all or part of the costs of state highway construction or
reconstruction projects.
(b) These costs may include the cost of acquiring land, interests in land, easements and
rights-of-way, improving sites, and making all improvements necessary, incidental, or convenient
to the facilities, interest estimated to accrue on these bonds during the period to be covered by
construction of the projects plus a period of six months after the end of the construction period,
interest estimated to accrue on any bond anticipation notes issued under the authority of this title,
and all related engineering, architectural, and legal fees.
(3) The commission or the state treasurer may make any statement of intent relating to a
reimbursement that is necessary or desirable to comply with federal tax law.
(4) The Department of Transportation may enter into agreements related to that project
before the receipt of proceeds of bonds issued under this chapter.
Section 3. Section 63B-12-201 is enacted to read:
63B-12-201. Revenue bond authorizations.
(1) (a) It is the intent of the Legislature that the State Building Ownership Authority,
under the authority of Title 63, Chapter 9a, State Building Ownership Act, may issue or execute
obligations, or enter into or arrange for a lease purchase agreement in which participation
interests may be created, to provide up to $14,099,000 for the construction of a state courthouse
in the City of West Jordan together with additional amounts necessary to pay costs of issuance,
pay capitalized interest, and fund any debt service reserve requirements.
(b) It is the intent of the Legislature that, before entering into the obligations authorized
by this Subsection (1), the State Building Ownership Authority shall confirm that the projected
amount of fees in the Courts Complex Fund, Fund 106, along with other funds in existing
budgets of the courts are adequate to cover the repayment of any obligation created under
authority of this Subsection (1).
(c) It is further the intent of the Legislature that when Sandy City has entered into a
binding agreement with the Division of Facilities Construction and Management to purchase the
existing Sandy Courthouse at an amount that will provide sale proceeds, net of any rent that may
be charged to the courts for occupying the Sandy Courthouse during construction of the new
courthouse, of not less than $4,500,000, those proceeds may be used to include replacement
space for the district court in the new courthouse.
(2) (a) It is the intent of the Legislature that the State Building Ownership Authority,
under the authority of Title 63, Chapter 9a, State Building Ownership Act, issue or execute
obligations, or enter into or arrange for a lease purchase agreement in which participation
interests may be created, to provide up to $1,242,000 for the construction of a driver license
office in West Valley City, together with additional amounts necessary to pay costs of issuance,
pay capitalized interest, and fund any debt service reserve requirements.
(b) It is further the intent of the Legislature that fees for driver licenses be used as the
primary revenue source for repayment of any obligation created under authority of this
Subsection (2).
Section 4. Section 63B-12-301 is enacted to read:
63B-12-301. Other capital facilities authorizations.
(1) It is the intent of the Legislature that:
(a) Utah State University use institutional funds to plan, design, and construct an addition
to the Laboratory Research Center under the direction of the director of the Division of Facilities
Construction and Management unless supervisory authority has been delegated;
(b) no state funds be used for any portion of this project; and
(c) the university may request state funds for operations and maintenance to the extent
that the university is able to demonstrate to the Board of Regents that the facility meets approved
academic and training purposes under Board of Regents policy R710.
(2) It is the intent of the Legislature that:
(a) Utah State University use institutional funds to plan, design, and construct an addition
to the Biology/Natural Resources Building under the direction of the director of the Division of
Facilities Construction and Management unless supervisory authority has been delegated;
(b) no state funds be used for any portion of this project; and
(c) the university may request state funds for operations and maintenance to the extent
that the university is able to demonstrate to the Board of Regents that the facility meets approved
academic and training purposes under Board of Regents policy R710.
(3) It is the intent of the Legislature that:
(a) Snow College use grants and loans from the Community Impact Board together with
other institutional funds to plan, design, and construct an addition to the Activities Center under
the direction of the director of the Division of Facilities Construction and Management unless
supervisory authority has been delegated;
(b) no state funds be used for any portion of this project;
(c) before proceeding with the project, the Board of Regents and the State Building
Board review and approve the scope and funding of the project; and
(d) the college may request state funds for operations and maintenance to the extent that
the college is able to demonstrate to the Board of Regents that the facility meets approved
academic and training purposes under Board of Regents policy R710.
(4) (a) It is the intent of the Legislature that the Division of Facilities Construction and
Management sell the state's interest in the Iron County Correction Facility to Iron County for
$2,000,000 according to the terms specified in this Subsection (4).
(b) Iron County will pay the state $1,550,000 in cash.
(c) To pay the $450,000 balance of the purchase price, Iron County will:
(i) provide office space for the Department of Corrections' Adult Probation and Parole in
the Iron County Correction Facility for ten years at no cost to the state of Utah, at an estimated
value of $45,000 per year for a total ten year value of $450,000; and
(ii) contract with the Department of Corrections to house 15 state prisoners in the Iron
County Correctional Facility for at least five years.
(d) (i) The Department of Corrections shall select the 15 prisoners to house at the Iron
County Correctional Facility from beds currently under contract in other counties.
(ii) Nothing in this section may be construed to authorize or require the Department of
Corrections to increase the number of prisoners currently housed in county correctional facilities
on state contract.
(e) If the Department of Corrections' Adult Probation and Parole chooses, for whatever
reason, not to use the office space offered by Iron County, Iron County is not liable for, and need
not pay, the state the value of that estimated rent.
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