Second Substitute H.B. 2

Senator Michael G. Waddoups proposes the following substitute bill:

1 GENERAL OBLIGATION BONDS
2 AUTHORIZATIONS
3 2004 GENERAL SESSION
4 STATE OF UTAH
5 Sponsor: Loraine T. Pace
6
7 LONG TITLE
8 General Description:
9 This bill authorizes the issuance of general obligation bonds for certain capital
10 facilities.
11 Highlighted Provisions:
12 This bill:
13 . modifies the Bonding Code by authorizing the issuance and sale of general
14 obligation bonds by the State Bonding Commission for capital facilities and for
15 certain related facilities;
16 . specifies the use of the general obligation bond proceeds and the manner of
17 issuance; and
18 . provides expressions of legislative intent.
19 Monies Appropriated in this Bill:
20 None
21 Other Special Clauses:
22 None
23 Utah Code Sections Affected:
24 ENACTS:
25 63B-13-101, Utah Code Annotated 1953

26
27 Be it enacted by the Legislature of the state of Utah:
28 Section 1. Section 63B-13-101 is enacted to read:
29 CHAPTER 13. 2004 BONDING AND FINANCING AUTHORIZATIONS
30 Part 1. 2004 General Obligation Bonds
31 63B-13-101. Capital facilities bonds -- Maximum amount -- Projects authorized.
32 (1) The total amount of bonds issued under this section may not exceed $85,000,000.
33 (2) (a) Proceeds from the issuance of bonds shall be provided to the division to provide
34 funds to pay all or part of the cost of acquiring and constructing the projects listed in this
35 Subsection (2).
36 (b) These costs may include the cost of acquiring land, interests in land, easements and
37 rights-of-way, improving sites, and acquiring, constructing, equipping, and furnishing facilities
38 and all structures, roads, parking facilities, utilities, and improvements necessary, incidental, or
39 convenient to the facilities, interest estimated to accrue on these bonds during the period to be
40 covered by construction of the projects plus a period of six months after the end of the
41 construction period, and all related engineering, architectural, and legal fees.
42 (c) For the division, proceeds shall be provided for the following:
43 ------------------------------------------------------------------------------------------------------------ -------
44 CAPITAL DEVELOPMENT PROJECTS
45 Estimated
46 Operations Project
47 Project and Amount
48 Description Maintenance Funded
49 ---------------------------- ----------------- ----------------
50 State Capitol Remodel $0 $50,000,000
51 Weber State University -
52 Swenson Building Remodel $75,400 $5,569,000
53 Salt Lake Community College -
54 Health Sciences Building
55 (West Jordan) $762,000 $21,000,000
56 Utah National Guard -

57 North Salt Lake
58 Readiness Center $42,500 $2,719,000
59 Oxbow Prison Purchase $0 $4,800,000
60 TOTAL CAPITAL
61 DEVELOPMENT
62 PROJECTS $84,088,000
63 ------------------------------------------------------------------------------------------------------------ -------
64 TOTAL GENERAL OBLIGATION BOND AUTHORIZATION
65 FOR CAPITAL DEVELOPMENT PROJECTS $84,088,000
66 ------------------------------------------------------------------------------------------------------------ -------
67 (d) For purposes of this section, operations and maintenance costs:
68 (i) are estimates only;
69 (ii) may include any operations and maintenance costs already funded in existing
70 agency budgets; and
71 (iii) are not commitments by this Legislature or future Legislatures to fund those
72 operations and maintenance costs.
73 (3) (a) The amounts funded as listed in Subsection (2) are estimates only and do not
74 constitute a limitation on the amount that may be expended for any project.
75 (b) The board may revise these estimates and redistribute the amount estimated for a
76 project among the projects authorized.
77 (c) The commission, by resolution and in consultation with the board, may delete one
78 or more projects from this list if the inclusion of that project or those projects in the list could
79 be construed to violate state law or federal law or regulation.
80 (4) (a) The division may enter into agreements related to these projects before the
81 receipt of proceeds of bonds issued under this chapter.
82 (b) The division shall make those expenditures from unexpended and unencumbered
83 building funds already appropriated to the Capital Projects Fund.
84 (c) The division shall reimburse the Capital Projects Fund upon receipt of the proceeds
85 of bonds issued under this chapter.
86 (d) The state intends to use proceeds of tax-exempt bonds to reimburse itself for
87 expenditures for costs of the projects listed in Subsection (2)(c).

88 (5) It is the intent of the Legislature that:
89 (a) the funding authorized for projects in Subsection (2) includes funds for public art,
90 except for the following projects:
91 (i) state capitol remodel;
92 (ii) Utah National Guard North Salt Lake Readiness Center; and
93 (iii) Oxbow prison;
94 (b) no state funds may be expended for the National Guard North Salt Lake Readiness
95 Center project until the United States Congress appropriates monies for the project; and
96 (c) the Bonding Commission may not issue bonds for the National Guard North Salt
97 Lake Readiness Center project until the United States Congress appropriates monies for the
98 project.