H.B. 369

1

GENERAL OBLIGATION BOND
2 AUTHORIZATION FOR HIGHWAYS
3 2006 GENERAL SESSION
4 STATE OF UTAH
5 Chief Sponsor: James A. Ferrin
6 Senate Sponsor: ____________
7
8 LONG TITLE
9 General Description:
10 This bill authorizes the issuance of general obligation bonds for reconstruction of
11 Highway 6 and exempts those bonds from the statutory debt limit.
12 Highlighted Provisions:
13 This bill:
14 . modifies the Bonding Code by authorizing the issuance and sale of $1.3 billion in
15 general obligation bonds by the State Bonding Commission for reconstruction of
16 U.S. Highway 6;
17 . specifies the use of the general obligation bond proceeds and the manner of
18 issuance; and
19 . exempts bonds issued from the statutory debt limit.
20 Monies Appropriated in this Bill:
21 None
22 Other Special Clauses:
23 None
24 Utah Code Sections Affected:
25 AMENDS:
26 63-38c-402, as last amended by Chapters 308 and 318, Laws of Utah 2004
27 ENACTS:

28 63B-15-103, Utah Code Annotated 1953
29
30 Be it enacted by the Legislature of the state of Utah:
31 Section 1. Section 63-38c-402 is amended to read:
32 63-38c-402. Debt limitation -- Vote requirement needed to exceed limitation --
33 Exceptions.
34 (1) (a) Except as provided in Subsection (1)(b), the outstanding general obligation debt
35 of the state may not exceed 45% of the maximum allowable appropriations limit unless
36 approved by more than a two-thirds vote of both houses of the Legislature.
37 (b) Notwithstanding the limitation contained in Subsection (1)(a), debt issued under the
38 authority of the following parts or sections is not subject to the debt limitation established by
39 this section:
40 (i) Title 63B, Chapter 6, Part 2, 1997 Highway General Obligation Bond
41 Authorization;
42 (ii) Title 63B, Chapter 6, Part 3, 1997 Highway Bond Anticipation Note Authorization;
43 (iii) Title 63B, Chapter 7, Part 2, 1998 Highway General Obligation Bond
44 Authorization;
45 (iv) Title 63B, Chapter 7, Part 3, 1998 Highway Bond Anticipation Note
46 Authorization;
47 (v) Title 63B, Chapter 8, Part 2, 1999 Highway General Obligation Bond
48 Authorization;
49 (vi) Title 63B, Chapter 8, Part 3, 1999 Highway Bond Anticipation Note
50 Authorization;
51 (vii) Title 63B, Chapter 9, Part 2, 2000 Highway General Obligation Bond;
52 (viii) Title 63B, Chapter 10, Part 1, 2001 Highway General Obligation [Bond] Bonds;
53 (ix) Title 63B, Chapter 10, Part 2, 2001 Highway General Obligation Bond
54 Anticipation Notes;
55 (x) Title 63B, Chapter 11, Part 5, 2002 Highway General Obligation [Bond] Bonds for
56 Salt Lake County;
57 (xi) Title 63B, Chapter 11, Part 6, 2002 Highway General Obligation Bond
58 Anticipation Notes for Salt Lake County [Authorization]; [and]

59 (xii) Section 63B-13-102 [.]; and
60 (xiii) Section 63B-15-103 .
61 (2) This section does not apply if contractual rights will be impaired.
62 Section 2. Section 63B-15-103 is enacted to read:
63 63B-15-103. Highway bonds -- Maximum amount -- Projects authorized.
64 (1) The total amount of bonds issued under this part may not exceed $1,300,000,000.
65 (2) (a) Proceeds from the issuance of bonds shall be provided to the Department of
66 Transportation to provide funds to pay all or part of the costs of state highway construction or
67 reconstruction projects on U.S. Highway 6 from Interstate 15 to Interstate 70.
68 (b) These costs may include the cost of acquiring land, interests in land, easements and
69 rights-of-way, improving sites, and making all improvements necessary, incidental, or
70 convenient to the facilities, interest estimated to accrue on these bonds during the period to be
71 covered by construction of the projects plus a period of six months after the end of the
72 construction period, interest estimated to accrue on any bond anticipation notes issued under
73 the authority of this title, and all related engineering, architectural, and legal fees.
74 (3) The commission or the state treasurer may make any statement of intent relating to
75 a reimbursement that is necessary or desirable to comply with federal tax law.
76 (4) The Department of Transportation may enter into agreements related to that project
77 before the receipt of proceeds of bonds issued under this chapter.




Legislative Review Note
as of 1-24-06 3:36 PM

Based on a limited legal review, this legislation has not been determined to have a high
probability of being held unconstitutional.

Office of Legislative Research and General Counsel