H.B. 1001

1

AMENDMENTS TO MASTER BOND ACT
2 2003 FIRST SPECIAL SESSION
3 STATE OF UTAH
4 Sponsor: Ron Bigelow
5 This act modifies the Master Bond Act by amending provisions governing the maturity
6 dates of bonds. This act takes effect immediately.
7 This act affects sections of Utah Code Annotated 1953 as follows:
8 AMENDS:
9 63B-1a-101, as enacted by Chapter 2, Laws of Utah 2003
10 Be it enacted by the Legislature of the state of Utah:
11 Section 1. Section 63B-1a-101 is amended to read:
12 63B-1a-101. Definitions -- Bonds authorized -- Prohibitions -- Purposes --
13 Maturity -- Use of bonds proceeds.
14 (1) As used in this section:
15 (a) "Cost" includes:
16 (i) all costs related to the authorized capital project, including the cost of equipment
17 and furnishings for, interests in, or improvements necessary, incidental, or convenient to, those
18 capital projects;
19 (ii) all costs incident to the authorization and issuance of bonds;
20 (iii) interest estimated to accrue on bonds during the period to be covered by the
21 acquisition and construction of the capital project and for up to 12 months after that period; and
22 (iv) other amounts that the commission finds necessary to establish reserve funds and
23 to provide working capital related to the capital project.
24 (b) "Taxable property of the state" includes all real and personal property subject to ad
25 valorem taxation within the state, including all property subject to a fee-in lieu of tax.
26 (2) When authorized by the Legislature, the commission may, in the manner specified
27 in this chapter, issue bonds to provide funds to the state for the purpose of paying all or part of

28 the cost of designing, acquiring, constructing, improving, or extending:
29 (a) any one or more capital projects; or
30 (b) any interest in one or more or any combination of capital projects.
31 (3) Before issuing any bonds, the commission shall determine that the Legislature has:
32 (a) affirmatively authorized the issuance of the bonds; and
33 (b) has specified:
34 (i) the capital projects to be funded; and
35 (ii) the maximum amount of the bonds[; and].
36 [(iii) the latest maturity of the bonds.]
37 (4) The commission shall either:
38 (a) comply with any maturity requirements established by the Legislature; or
39 (b) in the absence of any maturity requirements, establish, by resolution, a bond
40 maturity date or dates that are not later than 15 years after the date of delivery of the bonds.
41 [(4)] (5) (a) The commission may not issue bonds under this chapter in an amount that
42 violates the limitation described in the Utah Constitution Article XIV, Section 1 or payable
43 beyond the period described in the Utah Constitution Article XIII, Section 5(3).
44 (b) For purposes of applying the debt limitation contained in the Utah Constitution
45 Article XIV, Section 1, the value of the taxable property in Utah is considered to be 100% of
46 the fair market value of the taxable property of the state as computed from the last assessment
47 for state purposes made before the issuance of the bonds.
48 Section 2. Effective date.
49 If approved by two-thirds of all the members elected to each house, this act takes effect
50 upon approval by the governor, or the day following the constitutional time limit of Utah
51 Constitution Article VII, Section 8, without the governor's signature, or in the case of a veto,
52 the date of veto override.




Legislative Review Note
as of 5-16-03 9:42 AM

A limited legal review of this legislation raises no obvious constitutional or statutory concerns.

Office of Legislative Research and General Counsel