S.B. 201

1

GENERAL OBLIGATION BOND
2 AUTHORIZATION AMENDMENTS
3 2009 GENERAL SESSION
4 STATE OF UTAH
5 Chief Sponsor: Wayne L. Niederhauser
6 House Sponsor: Stephen D. Clark
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 . makes technical changes;
15 . modifies the bonding code by authorizing the issuance and sale of general
16 obligation bonds by the State Bonding Commission for capital facilities;
17 . specifies the use of the general obligation bond proceeds and the manner of
18 issuance; and
19 . provides expressions of legislative intent.
20 Monies Appropriated in this Bill:
21 None
22 Other Special Clauses:
23 This bill provides an immediate effective date.
24 Utah Code Sections Affected:
25 AMENDS:
26 63B-17-201, as enacted by Laws of Utah 2008, Chapter 128
27 ENACTS:

28 63B-18-102, Utah Code Annotated 1953
29
30 Be it enacted by the Legislature of the state of Utah:
31 Section 1. Section 63B-17-201 is amended to read:
32 63B-17-201. Revenue bond authorizations -- State Building Ownership
33 Authority.
34 (1) The Legislature intends that:
35 (a) the State Building Ownership Authority, under the authority of Title 63B, Chapter
36 1, Part 3, State Building Ownership Authority Act, may issue or execute obligations, or enter
37 into or arrange for a lease purchase agreement in which participation interests may be created,
38 to provide up to $90,000,000 for the acquisition and construction of phase II-B of a cancer
39 clinical research hospital facility adjacent to the University of Utah Medical Center, together
40 with additional amounts necessary to pay costs of issuance, pay capitalized interest, and fund
41 any debt service reserve requirements;
42 (b) the University of Utah use institutional funds as the primary revenue source for
43 repayment of any obligation created under authority of this section;
44 (c) the university may plan, design, and construct phase II-B of a cancer clinical
45 research hospital facility subject to the requirements of Section 63A-5-206 ; and
46 (d) the university may not request state funds for operation and maintenance costs or
47 capital improvements.
48 (2) The Legislature intends that:
49 (a) the State Building Ownership Authority, under the authority of Title 63B, Chapter
50 1, Part 3, State Building Ownership Authority Act, may issue or execute obligations, or enter
51 into or arrange for a lease-purchase agreement in which participation interests may be created,
52 to provide up to $23,700,000 for the acquisition and construction of five stores for the
53 Department of Alcoholic Beverage Control, together with additional amounts necessary to pay
54 costs of issuance, pay capitalized interest, and fund any debt service reserve requirements;
55 (b) the stores to be addressed through this authorization are:
56 (i) the replacement of a liquor store in Cedar City;
57 (ii) a new Utah County North liquor store;
58 (iii) a new Utah County South liquor store;

59 (iv) a new Washington County South liquor store; and
60 (v) a new [Summit] Wasatch County Heber/Midway liquor store;
61 (c) the Department of Alcoholic Beverage Control use increased sales revenues as the
62 primary revenue source for repayment of any obligation created under authority of this section;
63 and
64 (d) the Department of Alcoholic Beverage Control may request operation and
65 maintenance funding from sales revenues.
66 Section 2. Section 63B-18-102 is enacted to read:
67 63B-18-102. Additional capital facilities bonds -- Maximum amount -- Projects
68 authorized.
69 (1) The total amount of bonds issued under this section may not exceed $116,117,680.
70 (2) (a) Proceeds from the issuance of bonds shall be provided to the division to provide
71 funds to pay all or part of the cost of acquiring and constructing the projects listed in this
72 Subsection (2).
73 (b) These costs may include the cost of acquiring land, interests in land, easements and
74 rights-of-way, improving sites, and acquiring, constructing, equipping, and furnishing facilities
75 and all structures, roads, parking facilities, utilities, and improvements necessary, incidental, or
76 convenient to the facilities, interest estimated to accrue on these bonds during the period to be
77 covered by construction of the projects plus a period of six months after the end of the
78 construction period, and all related engineering, architectural, and legal fees.
79 (c) For the division, proceeds shall be provided for the following:
80 ----------------------------------------------------------------------------------------------------------------
81 CAPITAL DEVELOPMENT PROJECTS
82 Estimated
83 Operations Project
84 Project and Amount
85 Description Maintenance Funded
86 ---------------------------- ----------------- ----------------
87 Purchase and renovation of School
88 for Deaf and Blind $0 $6,500,000
89 SLCC Digital Design/Communication

90 Technology Center $141,400 $21,305,000
91 MATC North Utah County Campus
92 Building $513,800 $18,800,000
93 Replacement and expansion of
94 U of U School of Business $1,055,100 $22,900,000
95 OWATC Health Technology Building $445,300 $21,812,000
96 Upgrades and repairs to Armories $0 $4,000,000
97 SUU Gibson Science Center $324,400 $13,851,000
98 Dixie State College Centennial
99 Commons Building -- Design -- $3,000,000
100 UVU Science/Health Science
101 Building Addition -- Design -- $2,800,000
102 TOTAL CAPITAL
103 DEVELOPMENT
104 PROJECTS $114,968,000
105 -------------------------------------------------------------------------------------------------------------------
106 TOTAL GENERAL OBLIGATION BOND AUTHORIZATION
107 FOR CAPITAL DEVELOPMENT PROJECTS $114,968,000
108 -------------------------------------------------------------------------------------------------------------------
109 (d) For purposes of this section, operations and maintenance costs:
110 (i) are estimates only;
111 (ii) may include any operations and maintenance costs already funded in existing
112 agency budgets; and
113 (iii) are not commitments by this Legislature or future Legislatures to fund those
114 operations and maintenance costs.
115 (3) (a) The amounts funded as listed in Subsection (2) are estimates only and do not
116 constitute a limitation on the amount that may be expended for any project.
117 (b) The board may revise these estimates and redistribute the amount estimated for a
118 project among the projects authorized.
119 (c) The commission, by resolution and in consultation with the board, may delete one
120 or more projects from this list if the inclusion of that project or those projects in the list could

121 be construed to violate state law or federal law or regulation.
122 (4) (a) The division may enter into agreements related to these projects before the
123 receipt of proceeds of bonds issued under this chapter.
124 (b) The division shall make those expenditures from unexpended and unencumbered
125 building funds already appropriated to the Capital Projects Fund.
126 (c) The division shall reimburse the Capital Projects Fund upon receipt of the proceeds
127 of bonds issued under this chapter.
128 (d) The state intends to use proceeds of tax-exempt bonds to reimburse itself for
129 expenditures for costs of the projects listed in Subsection (2)(c).
130 (5) It is the intent of the Legislature that the funding authorized for projects in
131 Subsection (2) does not include funds for public art.
132 Section 3. Effective date.
133 If approved by two-thirds of all the members elected to each house, this bill takes effect
134 upon approval by the governor, or the day following the constitutional time limit of Utah
135 Constitution Article VII, Section 8, without the governor's signature, or in the case of a veto,
136 the date of veto override.




Legislative Review Note
as of 3-9-09 11:36 AM

Office of Legislative Research and General Counsel