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S.B. 280 Enrolled

             1     

2010 GENERAL OBLIGATION BOND AUTHORIZATION

             2     
2010 GENERAL SESSION

             3     
STATE OF UTAH

             4     
Chief Sponsor: Lyle W. Hillyard

             5     
House Sponsor: Fred R Hunsaker

             6     
             7      LONG TITLE
             8      General Description:
             9          This bill authorizes the issuance of general obligation bonds for certain capital
             10      facilities and modifies the terms for issuing bonds on existing capital improvement
             11      projects.
             12      Highlighted Provisions:
             13          This bill:
             14          .    modifies existing language and dollar amounts on authorized costs and
             15      authorization caps to comply with current language and funding practices;
             16          .    removes the prerequisites for issuing and selling general obligation bonds for the
             17      Utah State University Agricultural Science Classroom Building capital facility
             18      project;
             19          .    modifies the bonding code by authorizing the issuance and sale of general
             20      obligation bonds by the State Building Commission for capital facilities;
             21          .    specifies the use of the general obligation bond proceeds and the manner of
             22      issuance; and
             23          .    provides expressions of legislative intent.
             24      Monies Appropriated in this Bill:
             25          None
             26      Other Special Clauses:
             27          This bill provides an immediate effective date.
             28      Utah Code Sections Affected:
             29      AMENDS:


             30          63B-17-101, as enacted by Laws of Utah 2008, Chapter 224
             31      ENACTS:
             32          63B-19-101, Utah Code Annotated 1953
             33     
             34      Be it enacted by the Legislature of the state of Utah:
             35          Section 1. Section 63B-17-101 is amended to read:
             36           63B-17-101. Capital facilities bonds -- Maximum amount -- Projects authorized.
             37          (1) [(a)] The total amount of bonds issued under this section may not exceed
             38      [$43,750,000] $43,111,000 for acquisition and construction proceeds, plus additional amounts
             39      necessary to pay costs of issuance, to pay capitalized interest, and to fund any debt service
             40      reserve requirements, with the total amount of the bonds not to exceed $43,542,100.
             41          [(b) When Utah State University provides written certification to the commission that
             42      the President of the United States has signed a federal appropriations bill appropriating monies
             43      for the United States Department of Agriculture - Agricultural Research Service's portion of
             44      the Agricultural Science Classroom Building and that those monies are available for
             45      expenditure, the commission may issue and sell general obligation bonds in a total amount not
             46      to exceed 71.85% of the amount of unexpended and available federal monies in the federal
             47      appropriations bill or $43,111,000, whichever is less.]
             48          (2) (a) Proceeds from the issuance of bonds shall be provided to the division to
             49      provide funds to pay all or part of the cost of acquiring and constructing the projects listed in
             50      this Subsection (2).
             51          (b) These costs may include the cost of acquiring land, interests in land, easements
             52      and rights-of-way, improving sites, and acquiring, constructing, equipping, and furnishing
             53      facilities and all structures, roads, parking facilities, utilities, and improvements necessary,
             54      incidental, or convenient to the facilities, interest estimated to accrue on these bonds during
             55      the period to be covered by construction of the projects plus a period of six months after the
             56      end of the construction period, and all related engineering, architectural, and legal fees.
             57          (c) For the division, proceeds shall be provided for the following:


             58      ----------------------------------------------------------------------------------------------------------------
             59      CAPITAL DEVELOPMENT PROJECTS
             60                          Estimated        
             61                          Operations        Project
             62      Project                and            Amount
             63      Description                Maintenance        Funded
             64      ----------------------------         ----------------- ----------------
             65      USU Agricultural Science
             66      Classroom Building            $493,400        $43,111,000
             67      TOTAL CAPITAL
             68      DEVELOPMENT
             69      PROJECTS                                    $43,111,000
             70      -------------------------------------------------------------------------------------------------------------------
             71      ADDITIONAL AUTHORIZED AMOUNTS        $431,100
             72      TOTAL GENERAL OBLIGATION BOND AUTHORIZATION
             73      FOR CAPITAL DEVELOPMENT PROJECTS            [$43,111,000] $43,542,100
             74      -------------------------------------------------------------------------------------------------------------------
             75          (d) For purposes of this section, operations and maintenance costs:
             76          (i) are estimates only;
             77          (ii) may include any operations and maintenance costs already funded in existing
             78      agency budgets; and
             79          (iii) are not commitments by this Legislature or future Legislatures to fund those
             80      operations and maintenance costs.
             81          (3) (a) The amounts funded as listed in Subsection (2) are estimates only and do not
             82      constitute a limitation on the amount that may be expended for any project.
             83          (b) The board may revise these estimates and redistribute the amount estimated for a
             84      project among the projects authorized.
             85          (c) The commission, by resolution and in consultation with the board, may delete one


             86      or more projects from this list if the inclusion of that project or those projects in the list could
             87      be construed to violate state law or federal law or regulation.
             88          (4) (a) The division may enter into agreements related to these projects before the
             89      receipt of proceeds of bonds issued under this chapter.
             90          (b) The division shall make those expenditures from unexpended and unencumbered
             91      building funds already appropriated to the Capital Projects Fund.
             92          (c) The division shall reimburse the Capital Projects Fund upon receipt of the proceeds
             93      of bonds issued under this chapter.
             94          (d) The state intends to use proceeds of tax-exempt bonds to reimburse itself for
             95      expenditures for costs of the projects listed in Subsection (2)(c).
             96          (5) It is the intent of the Legislature that the funding authorized for projects in
             97      Subsection (2) does not include funds for public art.
             98          Section 2. Section 63B-19-101 is enacted to read:
             99     
CHAPTER 19. 2010 FINANCING AUTHORIZATIONS

             100     
Part 1. 2010 General Obligation Bonds

             101          63B-19-101. Capital facilities bonds -- Utah Science Technology and Research
             102      Governing Authority -- Maximum amount -- Projects authorized.
             103          (1) The bonds issued under this section may not exceed $46,000,000 for acquisition
             104      and construction proceeds, plus additional amounts necessary to pay costs of issuance, to pay
             105      capitalized interest, and to fund any debt service reserve requirements, with the total amount
             106      of the bonds not to exceed $46,460,000.
             107          (2) (a) Proceeds from the issuance of bonds shall be provided to the Utah Science
             108      Technology and Research Governing Authority to provide funds to pay all or part of the cost
             109      of constructing the projects listed in this Subsection (2).
             110          (b) These costs may include the cost of acquiring easements and rights-of-way,
             111      improving sites, and acquiring, constructing, equipping, and furnishing facilities and all
             112      structures, roads, parking facilities, utilities, and improvements necessary, incidental, or
             113      convenient to the facilities, interest estimated to accrue on these bonds during the period to be


             114      covered by construction of the projects plus a period of six months after the end of the
             115      construction period, and all related engineering, architectural, and legal fees.
             116          (c) For the Utah Science Technology and Research Governing Authority, proceeds
             117      shall be provided for the following:
             118      -------------------------------------------------------------------------------------------------------------------
             119          CAPITAL DEVELOPMENT PROJECTS
             120                               Estimated Operations    Amount
             121          Project Description              and Maintenance        Funded
             122      -------------------------------------------------------------------------------------------------------------------
             123          Bio Innovations Research Institute --
             124              Utah State University                $0        $18,400,000
             125          Neuroscience and Biomedical Technology
             126              Research Building -- University of Utah    $0        $27,600,000
             127      TOTAL CAPITAL DEVELOPMENT PROJECTS                    $46,000,000
             128      -------------------------------------------------------------------------------------------------------------------
             129      ADDITIONAL AUTHORIZED AMOUNTS                $460,000
             130      TOTAL GENERAL OBLIGATION BOND AUTHORIZATION
             131          FOR CAPITAL DEVELOPMENT PROJECTS                $46,460,000
             132      -------------------------------------------------------------------------------------------------------------------
             133          (d) The Legislature intends that the Utah Science Technology and Research Governing
             134      Authority pay the operations and maintenance costs on the research buildings authorized by
             135      this section.
             136          (3) (a) The amounts funded as listed in Subsection (2) are estimates only and do not
             137      constitute a limitation on the amount that may be expended for the projects.
             138          (b) The commission, by resolution and in consultation with the Utah Science
             139      Technology and Research Governing Authority, may delete the project if the inclusion of that
             140      project could be construed to violate state law or federal law or regulation.
             141          (4) The Utah Science Technology and Research Governing Authority may enter into


             142      agreements related to the project before the receipt of proceeds of bonds issued under this
             143      chapter.
             144          (5) The commission or the state treasurer may make any statement of intent relating to
             145      that reimbursement that is necessary or desirable to comply with federal tax law.
             146          (6) The Utah Science Technology and Research Governing Authority shall contract
             147      with the Division of Facilities Construction and Management to oversee construction of the
             148      buildings.
             149          (7) The Utah Science Technology and Research Governing Authority may not delegate
             150      authority over construction of the capital development projects identified in this section to any
             151      entity other than the Division of Facilities Construction and Management.
             152          Section 3. Effective date.
             153          If approved by two-thirds of all the members elected to each house, this bill takes effect
             154      upon approval by the governor, or the day following the constitutional time limit of Utah
             155      Constitution Article VII, Section 8, without the governor's signature, or in the case of a veto,
             156      the date of veto override.


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