H.B. 4

1

GENERAL OBLIGATION BONDS
2 AUTHORIZATIONS
3 2009 GENERAL SESSION
4 STATE OF UTAH
5 Chief Sponsor: Stephen D. Clark
6 Senate Sponsor: Wayne L. Niederhauser
7
8 LONG TITLE
9 General Description:
10 This bill authorizes the issuance of general obligation bonds for certain capital
11 facilities.
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; and
18 . provides expressions of legislative intent.
19 Monies Appropriated in this Bill:
20 None
21 Other Special Clauses:
22 This bill provides an immediate effective date.
23 Utah Code Sections Affected:
24 ENACTS:
25 63B-18-101, Utah Code Annotated 1953
26
27 Be it enacted by the Legislature of the state of Utah:

28 Section 1. Section 63B-18-101 is enacted to read:
29 CHAPTER 18. 2009 BONDING AND FINANCING AUTHORIZATIONS
30 Part 1. 2009 General Obligation Bond Authorizations
31 63B-18-101. Capital facilities bonds -- Maximum amount -- Projects authorized.
32 (1) The total amount of bonds issued under this section may not exceed $32,320,000.
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 Multi-agency Government
51 Office Building $447,500 $18,000,000
52 Snow College Library $452,200 $14,000,000
53 TOTAL CAPITAL
54 DEVELOPMENT
55 PROJECTS $32,000,000
56 -------------------------------------------------------------------------------------------------------------------
57 TOTAL GENERAL OBLIGATION BOND AUTHORIZATION
58 FOR CAPITAL DEVELOPMENT PROJECTS $32,000,000

59 -------------------------------------------------------------------------------------------------------------------
60 (d) For purposes of this section, operations and maintenance costs:
61 (i) are estimates only;
62 (ii) may include any operations and maintenance costs already funded in existing
63 agency budgets; and
64 (iii) are not commitments by this Legislature or future Legislatures to fund those
65 operations and maintenance costs.
66 (3) (a) The amounts funded as listed in Subsection (2) are estimates only and do not
67 constitute a limitation on the amount that may be expended for any project.
68 (b) The board may revise these estimates and redistribute the amount estimated for a
69 project among the projects authorized.
70 (c) The commission, by resolution and in consultation with the board, may delete one
71 or more projects from this list if the inclusion of that project or those projects in the list could
72 be construed to violate state law or federal law or regulation.
73 (4) (a) The division may enter into agreements related to these projects before the
74 receipt of proceeds of bonds issued under this chapter.
75 (b) The division shall make those expenditures from unexpended and unencumbered
76 building funds already appropriated to the Capital Projects Fund.
77 (c) The division shall reimburse the Capital Projects Fund upon receipt of the proceeds
78 of bonds issued under this chapter.
79 (d) The state intends to use proceeds of tax-exempt bonds to reimburse itself for
80 expenditures for costs of the projects listed in Subsection (2)(c).
81 (5) It is the intent of the Legislature that the funding authorized for projects in
82 Subsection (2) does not include funds for public art.
83 Section 2. Effective date.
84 If approved by two-thirds of all the members elected to each house, this bill takes effect
85 upon approval by the governor, or the day following the constitutional time limit of Utah
86 Constitution Article VII, Section 8, without the governor's signature, or in the case of a veto,
87 the date of veto override.

Legislative Review Note
as of 2-23-09 2:40 PM

Office of Legislative Research and General Counsel