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First Substitute H.B. 473

Senator Scott K. Jenkins proposes the following substitute bill:


             1     
REVENUE BOND AND CAPITAL FACILITIES

             2     
AUTHORIZATIONS

             3     
2007 GENERAL SESSION

             4     
STATE OF UTAH

             5     
Chief Sponsor: D. Gregg Buxton

             6     
Senate Sponsor: Scott K. Jenkins

             7     
             8      LONG TITLE
             9      General Description:
             10          This bill authorizes certain state agencies and higher education institutions to issue
             11      revenue bonds, build capital facilities using agency or institutional funds, or acquire or
             12      exchange property.
             13      Highlighted Provisions:
             14          This bill:
             15          .    authorizes the issuance of revenue bonds by the State Building Ownership Authority
             16      and the State Board of Regents;
             17          .    authorizes other capital facility construction from agency or institutional funds;
             18          .    authorizes the acquisition or exchange of certain higher education property;
             19          .    approves the sale of a state building and directs the use of the sale proceeds;
             20          .    approves the purchase of a building and directs its use; and
             21          .    directs that the Division of Facilities Construction and Management enter into a
             22      lease with the new owner of the sold building to allow the building's current tenants
             23      to continue to occupy it until alternatives become available.
             24      Monies Appropriated in this Bill:
             25          None


             26      Other Special Clauses:
             27          None
             28      Utah Code Sections Affected:
             29      ENACTS:
             30          63B-16-101, Utah Code Annotated 1953
             31          63B-16-102, Utah Code Annotated 1953
             32          63B-16-201, Utah Code Annotated 1953
             33          63B-16-301, Utah Code Annotated 1953
             34     
             35      Be it enacted by the Legislature of the state of Utah:
             36          Section 1. Section 63B-16-101 is enacted to read:
             37     
CHAPTER 16. 2007 FINANCING AUTHORIZATIONS

             38     
Part 1. Revenue Bond Authorizations

             39          63B-16-101. Revenue Bond Authorizations -- State Building Ownership
             40      Authority.
             41          (1) It is the intent of the Legislature that:
             42          (a) the State Building Ownership Authority, under the authority of Title 63B, Chapter
             43      1, Part 3, State Building Ownership Authority Act, may issue or execute obligations, or enter
             44      into or arrange for a lease-purchase agreement in which participation interests may be created,
             45      to provide up to $5,662,000 for the acquisition and construction of three stores for the
             46      Department of Alcoholic Beverage Control, together with additional amounts necessary to pay
             47      costs of issuance, pay capitalized interest, and fund any debt service reserve requirements;
             48          (b) the stores to be addressed through this authorization are:
             49          (i) expansion of the North Temple store in Salt Lake County;
             50          (ii) expansion of the Taylorsville store in Salt Lake County; and
             51          (iii) reconstruction of the Bountiful store in Davis County;
             52          (c) increased sales revenues be used as the primary revenue source for repayment of
             53      any obligation created under authority of this section; and
             54          (d) the Department of Alcoholic Beverage Control may request operation and
             55      maintenance funding from sales revenues.
             56          (2) It is the intent of the Legislature that:


             57          (a) the State Building Ownership Authority, under the authority of Title 63B, Chapter
             58      1, Part 3, State Building Ownership Authority Act, may issue or execute obligations, or enter
             59      into or arrange for a lease purchase agreement in which participation interests may be created,
             60      to provide up to $1,476,000 for the acquisition and construction of a production warehouse for
             61      Utah Correctional Industries, together with additional amounts necessary to pay costs of
             62      issuance, pay capitalized interest, and fund any debt service reserve requirements;
             63          (b) Utah Correctional Industries' revenues be used as the primary revenue source for
             64      repayment of any obligation created under authority of this section;
             65          (c) Utah Correctional Industries may plan, design, and construct the production
             66      warehouse subject to requirements in Section 63A-5-206 ; and
             67          (d) Utah Correctional Industries may not request state funds for operation and
             68      maintenance costs or capital improvements.
             69          Section 2. Section 63B-16-102 is enacted to read:
             70          63B-16-102. Revenue Bond Authorizations -- Board of Regents.
             71          (1) It is the intent of the Legislature that:
             72          (a) when the University of Utah certifies to the Board of Regents that the university has
             73      obtained reliable commitments, convertible to cash, of $15,000,000 or more in nonstate funds
             74      to construct an on-campus student life center, the Board of Regents, on behalf of the University
             75      of Utah, may issue, sell, and deliver revenue bonds or other evidences of indebtedness of the
             76      University of Utah to borrow money on the credit, revenues, and reserves of the University of
             77      Utah, other than appropriations from the Legislature, to finance the cost of constructing an
             78      on-campus student life center;
             79          (b) student recreation fees be used as the primary revenue source for repayment of any
             80      obligation created under authority of this section;
             81          (c) the University of Utah may increase student recreation fees to not more than $60
             82      per semester for not more than 20 years, and use those revenues, together with the $15,000,000
             83      collected under Subsection (1)(a), to service the student life center revenue bond debt;
             84          (d) the bonds or other evidences of indebtedness authorized by this section may
             85      provide up to $42,500,000, together with other amounts necessary to pay costs of issuance, pay
             86      capitalized interest, and fund any debt service reserve requirements;
             87          (e) the University of Utah may plan, design, and construct the on-campus student life


             88      center subject to requirements in UCA 63A-5-206 ; and
             89          (f) the university may not request state funds for operation and maintenance costs or
             90      capital improvements.
             91          (2) It is the intent of the Legislature that:
             92          (a) the Board of Regents, on behalf of Southern Utah University, may issue, sell, and
             93      deliver revenue bonds or other evidences of indebtedness of Southern Utah University to
             94      borrow money on the credit, revenues, and reserves of Southern Utah University, other than
             95      appropriations of the Legislature, to finance the cost of constructing on-campus student
             96      dormitories;
             97          (b) student housing rental fees be used as the primary revenue source for repayment of
             98      any obligation created under authority of this section;
             99          (c) the bonds or other evidences of indebtedness authorized by this section may provide
             100      up to $17,500,000, together with other amounts necessary to pay costs of issuance, pay
             101      capitalized interest, and fund any debt service reserve requirements;
             102          (d) Southern Utah University may plan, design, and construct the on-campus student
             103      dormitories subject to requirements in Section 63A-5-206 ; and
             104          (e) the university may not request state funds for operation and maintenance costs or
             105      capital improvements.
             106          Section 3. Section 63B-16-201 is enacted to read:
             107     
Part 2. Capital Facility Construction Authorizations

             108          63B-16-201. Authorizations to construct capital facilities using institutional or
             109      agency funds.
             110          (1) It is the intent of the Legislature that:
             111          (a) Utah State University may, subject to requirements in Section 63A-5-206 , plan,
             112      design, and construct a classroom building funded and owned by Tooele County on the
             113      university's Tooele campus;
             114          (b) no state funds be used for any portion of this project, including for future purchase
             115      or otherwise acquiring the building from Tooele County;
             116          (c) the university may not request state funds for operation and maintenance costs or
             117      capital improvements while the building is not owned by the university; and
             118          (d) the university may request state funds for operations and maintenance costs and


             119      capital improvements if the building is donated to the university and if the university is able to
             120      demonstrate to the Board of Regents that the facility meets approved academic and training
             121      purposes under Board of Regents policy R710.
             122          (2) It is the intent of the Legislature that:
             123          (a) Weber State University may, subject to requirements in Section 63A-5-206 , use
             124      donations and other institutional funds to plan, design, and construct a Lifelong Learning
             125      Center;
             126          (b) no state funds be used for any portion of this project; and
             127          (c) the university may request state funds for operations and maintenance costs and
             128      capital improvements to the extent that the university is able to demonstrate to the Board of
             129      Regents that the facility meets approved academic and training purposes under Board of
             130      Regents policy R710.
             131          (3) It is the intent of the Legislature that:
             132          (a) Salt Lake Community College may, subject to requirements in Section 63A-5-206 ,
             133      use institutional funds to plan, design, and construct a Facilities/Security/Parking Services
             134      Building;
             135          (b) no state funds be used for any portion of this project; and
             136          (c) the college may request state funds for operations and maintenance costs and capital
             137      improvements to the extent that the college is able to demonstrate to the Board of Regents that
             138      the facility meets approved academic and training purposes under Board of Regents policy
             139      R710.
             140          Section 4. Section 63B-16-301 is enacted to read:
             141     
Part 3. Property Acquisition, Sale, Lease, and Exchange Authorizations

             142          63B-16-301. Authorizations to acquire, sell, lease, or exchange property.
             143          (1) It is the intent of the Legislature that:
             144          (a) the Southeast Applied Technology Campus of the Utah College of Applied
             145      Technology and the College of Eastern Utah may cooperatively enter into negotiations with a
             146      nonstate entity and complete a real property exchange to acquire an applied technology facility
             147      in Price;
             148          (b) no state funds be used for any portion of this project; and
             149          (c) the college may request state funds for operations and maintenance costs and capital


             150      improvements to the extent that the college is able to demonstrate to the Board of Regents that
             151      the facility meets approved academic and training purposes under Board of Regents policy
             152      R710.
             153          (2) It is the intent of the Legislature that:
             154          (a) the Mountainland Applied Technology Campus of the Utah College of Applied
             155      Technology may exercise its option to purchase additional property in northern Utah County
             156      adjacent to property purchased with the appropriation in Chapter 367, Item 41, Laws of Utah
             157      2006;
             158          (b) the purchase be financed through donations, institutional funds, a land exchange
             159      involving Lehi City and the Utah Transit Authority, or some combination of donations,
             160      institutional funds, and a land exchange involving Lehi City and the Utah Transit Authority for
             161      future development of a commuter rail station;
             162          (c) the purchase be conducted under the direction of the director of the Division of
             163      Facilities Construction and Management; and
             164          (d) no state funds be used for any portion of this purchase.
             165          (3) It is the intent of the Legislature that:
             166          (a) the Department of Human Services Complex located at 120 North 200 West, Salt
             167      Lake City, Utah be sold for $11,000,000;
             168          (b) that the proceeds from the sale be used to:
             169          (i) pay-off the outstanding bond on the Human Services Complex;
             170          (ii) purchase the Brigham Young University Salt Lake Center located at 3760 South
             171      Highland Drive, Salt Lake City, Utah for up to $6,000,000 for occupancy by the Utah State
             172      Board of Education Schools for the Deaf and Blind; and
             173          (iii) the remaining funds be used to remodel the Salt Lake Center; and
             174          (c) the Division of Facilities, Construction and Management enter into a lease with the
             175      buyer of the Human Services Complex for and on behalf of the Department of Human Services
             176      that allows the Department of Human Services to continue to occupy the complex for the
             177      period of time needed for the state to purchase, construct, or lease a replacement facility for the
             178      Department of Human Services.


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