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S.B. 4

             1     

GENERAL OBLIGATION BOND

             2     
AUTHORIZATION

             3     
2008 GENERAL SESSION

             4     
STATE OF UTAH

             5     
Chief Sponsor: Scott K. Jenkins

             6     
House Sponsor: Kevin S. Garn

             7     
             8      LONG TITLE
             9      General Description:
             10          This bill authorizes the issuance of general obligation bonds for certain capital
             11      facilities and repeals obsolete authorizations.
             12      Highlighted Provisions:
             13          This bill:
             14          .    modifies the bonding code by authorizing the issuance and sale of general
             15      obligation bonds by the State Bonding Commission for capital facilities;
             16          .    specifies the use of the general obligation bond proceeds and the manner of
             17      issuance;
             18          .    repeals obsolete general obligation bond issuance authorizations; and
             19          .    provides expressions of legislative intent.
             20      Monies Appropriated in this Bill:
             21          None
             22      Other Special Clauses:
             23          None
             24      Utah Code Sections Affected:
             25      AMENDS:
             26          63B-11-502, as last amended by Laws of Utah 2003, Chapter 335
             27      ENACTS:


             28          63B-17-101, Utah Code Annotated 1953
             29      REPEALS:
             30          63B-9-201, as enacted by Laws of Utah 2000, Chapter 354
             31          63B-9-202, as enacted by Laws of Utah 2000, Chapter 354
             32          63B-9-203, as enacted by Laws of Utah 2000, Chapter 354
             33          63B-9-204, as enacted by Laws of Utah 2000, Chapter 354
             34          63B-9-205, as enacted by Laws of Utah 2000, Chapter 354
             35          63B-9-206, as enacted by Laws of Utah 2000, Chapter 354
             36          63B-9-207, as enacted by Laws of Utah 2000, Chapter 354
             37          63B-9-208, as enacted by Laws of Utah 2000, Chapter 354
             38          63B-9-209, as enacted by Laws of Utah 2000, Chapter 354
             39          63B-9-210, as enacted by Laws of Utah 2000, Chapter 354
             40          63B-9-211, as enacted by Laws of Utah 2000, Chapter 354
             41          63B-9-212, as enacted by Laws of Utah 2000, Chapter 354
             42          63B-9-213, as enacted by Laws of Utah 2000, Chapter 354
             43          63B-9-214, as enacted by Laws of Utah 2000, Chapter 354
             44          63B-9-215, as enacted by Laws of Utah 2000, Chapter 354
             45          63B-9-216, as last amended by Laws of Utah 2005, Chapter 105
             46          63B-9-217, as enacted by Laws of Utah 2000, Chapter 354
             47          63B-14-101, as enacted by Laws of Utah 2005, First Special Session, Chapter 7
             48     
             49      Be it enacted by the Legislature of the state of Utah:
             50          Section 1. Section 63B-11-502 is amended to read:
             51           63B-11-502. Maximum amount -- Projects authorized.
             52          (1) The total amount of bonds issued under this part may not exceed [$78,500,000]
             53      $52,101,800.
             54          (2) (a) (i) Proceeds from the issuance of bonds shall be provided to the Department of
             55      Transportation to provide funds to pay all or part of the costs of accelerating any of the
             56      following state highway construction or reconstruction projects in Salt Lake County:
             57          (A) I-15: 10600 South to the Utah County line;
             58          (B) Final Environmental Impact Statement for Western Transportation Corridor: I-80


             59      to Utah County;
             60          (C) I-215: Redwood Road to 4700 South;
             61          (D) State Street Reconstruction: 9000 South to 10600 South; and
             62          (E) except as provided in Subsection (2)(d), State Street Reconstruction: 7800 South to
             63      8000 South.
             64          (ii) If the Department of Transportation is unable to begin or complete a project
             65      authorized by this Subsection (2)(a) because of a court order, the Department of
             66      Transportation, with the approval of Salt Lake County, may expend bond proceeds to construct
             67      one or more projects identified in Subsection (2)(e).
             68          (b) When the Utah Transit Authority certifies to the Transportation Commission that
             69      the Utah Transit Authority will pay half the costs of reconstruction of the Utah Transit
             70      Authority railroad overpass on 8000 South State Street, the Department of Transportation may
             71      provide funds from bond proceeds to pay the other half of the costs of reconstruction of the
             72      Utah Transit Authority railroad overpass on 8000 South.
             73          (c) As used in Subsections (2)(a) and (b), "costs" may include the cost of acquiring
             74      land, interests in land, easements and rights-of-way, improving sites, and making all
             75      improvements necessary, incidental, or convenient to the facilities, interest estimated to accrue
             76      on these bonds during the period to be covered by construction of the projects plus a period of
             77      six months after the end of the construction period, interest estimated to accrue on any bond
             78      anticipation notes issued under the authority of Chapter 11, Part 6, 2002 Highway General
             79      Obligation Bond Anticipation Notes for Salt Lake County, and all related engineering,
             80      architectural, and legal fees.
             81          (d) Bond proceeds may not be expended on the State Street Reconstruction: 7800 to
             82      8000 South project until the Transportation Commission has received the certification required
             83      by Subsection (2)(b) from the Utah Transit Authority.
             84          (e) As the following projects or future projects identified by Salt Lake County and the
             85      Legislature are prepared and ready for construction by the Department of Transportation, it is
             86      the intent of the Legislature that they will be accelerated and funded from future general
             87      obligation bonds issued in anticipation of receiving debt service funds from Salt Lake County's
             88      1/4 of 1/4% sales tax proceeds earmarked by Section 59-12-502 and from other funding
             89      sources available to the Department of Transportation, including monies available from the


             90      Centennial Highway Fund and the Statewide Transportation Improvement Plan: 5600 West
             91      Reconstruction: 4500 South to 7000 South; Redwood Road: 12600 South to Bangerter
             92      Highway; I-15: Beck Street Overpass; I-215: 4700 South to SR-201; acquisition of
             93      rights-of-way for the Western Transportation Corridor; 11400 South: I-15 to Redwood Road;
             94      and State Street Reconstruction 6400 South to 7800 South and 8000 South to 9000 South.
             95          (3) If any portion of the proceeds of the tax paid to the state are not required to pay
             96      principal, interest, and issuance costs of the bonds and the principal, interest, and issuance costs
             97      of the bond have been paid off, or if, after completion of the projects authorized under
             98      Subsection (2)(a) and payment of the costs of issuing and selling the bonds under Section
             99      63B-11-503 , any bond proceeds remain unexpended, the Department of Transportation may
             100      use those unexpended proceeds to pay all or part of the costs of construction projects in Salt
             101      Lake County that have been approved and prioritized by the Transportation Commission.
             102          (4) The commission, by resolution, or the state treasurer may make any statement of
             103      intent relating to a reimbursement that is necessary or desirable to comply with federal tax law.
             104          (5) The Department of Transportation may enter into agreements related to the projects
             105      before the receipt of proceeds of bonds issued under this chapter.
             106          Section 2. Section 63B-17-101 is enacted to read:
             107     
CHAPTER 17. 2008 BONDING AND FINANCING AUTHORIZATIONS

             108     
Part 1. 2008 General Obligation Bond Authorizations

             109          63B-17-101. Capital facilities bonds -- Maximum amount -- Projects authorized.
             110          (1) (a) The total amount of bonds issued under this section may not exceed
             111      $43,750,000.
             112          (b) When Utah State University provides written certification to the commission that
             113      the President of the United States has signed a federal appropriations bill appropriating monies
             114      for the United States Department of Agriculture - Agricultural Research Service's portion of the
             115      Agricultural Science Classroom Building and that those monies are available for expenditure,
             116      the commission may issue and sell general obligation bonds in a total amount not to exceed
             117      71.85% of the amount of unexpended and available federal monies in the federal
             118      appropriations bill or $43,111,000, whichever is less.
             119          (2) (a) Proceeds from the issuance of bonds shall be provided to the division to provide
             120      funds to pay all or part of the cost of acquiring and constructing the projects listed in this


             121      Subsection (2).
             122          (b) These costs may include the cost of acquiring land, interests in land, easements and
             123      rights-of-way, improving sites, and acquiring, constructing, equipping, and furnishing facilities
             124      and all structures, roads, parking facilities, utilities, and improvements necessary, incidental, or
             125      convenient to the facilities, interest estimated to accrue on these bonds during the period to be
             126      covered by construction of the projects plus a period of six months after the end of the
             127      construction period, and all related engineering, architectural, and legal fees.
             128          (c) For the division, proceeds shall be provided for the following:
             129      ----------------------------------------------------------------------------------------------------------------
             130      CAPITAL DEVELOPMENT PROJECTS
             131                          Estimated        
             132                          Operations        Project
             133      Project                and            Amount
             134      Description                Maintenance        Funded
             135      ----------------------------         ----------------- ----------------
             136      USU Agricultural Science
             137      Classroom Building            $493,400        $43,111,000
             138      TOTAL CAPITAL
             139      DEVELOPMENT
             140      PROJECTS                            $43,111,000
             141      -------------------------------------------------------------------------------------------------------------------
             142      TOTAL GENERAL OBLIGATION BOND AUTHORIZATION
             143      FOR CAPITAL DEVELOPMENT PROJECTS                $43,111,000
             144      -------------------------------------------------------------------------------------------------------------------
             145          (d) For purposes of this section, operations and maintenance costs:
             146          (i) are estimates only;
             147          (ii) may include any operations and maintenance costs already funded in existing
             148      agency budgets; and
             149          (iii) are not commitments by this Legislature or future Legislatures to fund those
             150      operations and maintenance costs.
             151          (3) (a) The amounts funded as listed in Subsection (2) are estimates only and do not


             152      constitute a limitation on the amount that may be expended for any project.
             153          (b) The board may revise these estimates and redistribute the amount estimated for a
             154      project among the projects authorized.
             155          (c) The commission, by resolution and in consultation with the board, may delete one
             156      or more projects from this list if the inclusion of that project or those projects in the list could
             157      be construed to violate state law or federal law or regulation.
             158          (4) (a) The division may enter into agreements related to these projects before the
             159      receipt of proceeds of bonds issued under this chapter.
             160          (b) The division shall make those expenditures from unexpended and unencumbered
             161      building funds already appropriated to the Capital Projects Fund.
             162          (c) The division shall reimburse the Capital Projects Fund upon receipt of the proceeds
             163      of bonds issued under this chapter.
             164          (d) The state intends to use proceeds of tax-exempt bonds to reimburse itself for
             165      expenditures for costs of the projects listed in Subsection (2)(c).
             166          (5) It is the intent of the Legislature that the funding authorized for projects in
             167      Subsection (2) does not include funds for public art.
             168          Section 3. Repealer.
             169          This bill repeals:
             170          Section 63B-9-201, State Bonding Commission authorized to issue general
             171      obligation bonds.
             172          Section 63B-9-202, Maximum amount -- Projects authorized.
             173          Section 63B-9-203, Bond proceeds may be used to pay costs of issuance and sale.
             174          Section 63B-9-204, Manner of issuance -- Amounts, interest, and maturity.
             175          Section 63B-9-205, Terms and conditions of sale -- Plan of financing -- Signatures
             176      -- Replacement -- Registration -- Federal rebate.
             177          Section 63B-9-206, Constitutional debt limitation.
             178          Section 63B-9-207, Tax levy -- Abatement of tax.
             179          Section 63B-9-208, Creation of sinking fund.
             180          Section 63B-9-209, Payment of interest, principal, and redemption premiums.
             181          Section 63B-9-210, Investment of sinking fund money.
             182          Section 63B-9-211, Bond proceeds -- Deposits -- Investment -- Disposition of


             183      investment income and unexpended proceeds.
             184          Section 63B-9-212, Refunding of bonds.
             185          Section 63B-9-213, Certification of satisfaction of conditions precedent --
             186      Conclusiveness.
             187          Section 63B-9-214, Tax exemption.
             188          Section 63B-9-215, Legal investment status.
             189          Section 63B-9-216, Publication of resolution or notice -- Limitation on actions to
             190      contest legality.
             191          Section 63B-9-217, Report to Legislature.
             192          Section 63B-14-101, Capital facilities bonds -- Maximum amount -- Projects
             193      authorized.




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    as of 2-28-08 5:46 PM


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