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First Substitute S.B. 280

Representative Fred R Hunsaker proposes the following substitute bill:


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


             26          This bill provides an immediate effective date.
             27      Utah Code Sections Affected:
             28      AMENDS:
             29          63B-17-101, as enacted by Laws of Utah 2008, Chapter 224
             30      ENACTS:
             31          63B-19-101, Utah Code Annotated 1953
             32     
             33      Be it enacted by the Legislature of the state of Utah:
             34          Section 1. Section 63B-17-101 is amended to read:
             35           63B-17-101. Capital facilities bonds -- Maximum amount -- Projects authorized.
             36          (1) [(a)] The total amount of bonds issued under this section may not exceed
             37      [$43,750,000] $43,111,000 for acquisition and construction proceeds, plus additional amounts
             38      necessary to pay costs of issuance, to pay capitalized interest, and to fund any debt service
             39      reserve requirements, with the total amount of the bonds not to exceed $43,542,100.
             40          [(b) When Utah State University provides written certification to the commission that
             41      the President of the United States has signed a federal appropriations bill appropriating monies
             42      for the United States Department of Agriculture - Agricultural Research Service's portion of the
             43      Agricultural Science Classroom Building and that those monies are available for expenditure,
             44      the commission may issue and sell general obligation bonds in a total amount not to exceed
             45      71.85% of the amount of unexpended and available federal monies in the federal
             46      appropriations bill or $43,111,000, whichever is less.]
             47          (2) (a) Proceeds from the issuance of bonds shall be provided to the division to provide
             48      funds to pay all or part of the cost of acquiring and constructing the projects listed in this
             49      Subsection (2).
             50          (b) These costs may include the cost of acquiring land, interests in land, easements and
             51      rights-of-way, improving sites, and acquiring, constructing, equipping, and furnishing facilities
             52      and all structures, roads, parking facilities, utilities, and improvements necessary, incidental, or
             53      convenient to the facilities, interest estimated to accrue on these bonds during the period to be
             54      covered by construction of the projects plus a period of six months after the end of the
             55      construction period, and all related engineering, architectural, and legal fees.
             56          (c) For the division, proceeds shall be provided for the following:


             57      ----------------------------------------------------------------------------------------------------------------
             58      CAPITAL DEVELOPMENT PROJECTS
             59                          Estimated        
             60                          Operations        Project
             61      Project                and            Amount
             62      Description                Maintenance        Funded
             63      ----------------------------         ----------------- ----------------
             64      USU Agricultural Science
             65      Classroom Building            $493,400        $43,111,000
             66      TOTAL CAPITAL
             67      DEVELOPMENT
             68      PROJECTS                            $43,111,000
             69      -------------------------------------------------------------------------------------------------------------------
             70      ADDITIONAL AUTHORIZED AMOUNTS                $431,100
             71      TOTAL GENERAL OBLIGATION BOND AUTHORIZATION
             72      FOR CAPITAL DEVELOPMENT PROJECTS            [$43,111,000] $43,542,100
             73      -------------------------------------------------------------------------------------------------------------------
             74          (d) For purposes of this section, operations and maintenance costs:
             75          (i) are estimates only;
             76          (ii) may include any operations and maintenance costs already funded in existing
             77      agency budgets; and
             78          (iii) are not commitments by this Legislature or future Legislatures to fund those
             79      operations and maintenance costs.
             80          (3) (a) The amounts funded as listed in Subsection (2) are estimates only and do not
             81      constitute a limitation on the amount that may be expended for any project.
             82          (b) The board may revise these estimates and redistribute the amount estimated for a
             83      project among the projects authorized.
             84          (c) The commission, by resolution and in consultation with the board, may delete one
             85      or more projects from this list if the inclusion of that project or those projects in the list could
             86      be construed to violate state law or federal law or regulation.
             87          (4) (a) The division may enter into agreements related to these projects before the


             88      receipt of proceeds of bonds issued under this chapter.
             89          (b) The division shall make those expenditures from unexpended and unencumbered
             90      building funds already appropriated to the Capital Projects Fund.
             91          (c) The division shall reimburse the Capital Projects Fund upon receipt of the proceeds
             92      of bonds issued under this chapter.
             93          (d) The state intends to use proceeds of tax-exempt bonds to reimburse itself for
             94      expenditures for costs of the projects listed in Subsection (2)(c).
             95          (5) It is the intent of the Legislature that the funding authorized for projects in
             96      Subsection (2) does not include funds for public art.
             97          Section 2. Section 63B-19-101 is enacted to read:
             98     
CHAPTER 19. 2010 FINANCING AUTHORIZATIONS

             99     
Part 1. 2010 General Obligation Bonds

             100          63B-19-101. Capital facilities bonds -- Utah Science Technology and Research
             101      Governing Authority -- Maximum amount -- Projects authorized.
             102          (1) The bonds issued under this section may not exceed $46,000,000 for acquisition
             103      and construction proceeds, plus additional amounts necessary to pay costs of issuance, to pay
             104      capitalized interest, and to fund any debt service reserve requirements, with the total amount of
             105      the bonds not to exceed $46,460,000.
             106          (2) (a) Proceeds from the issuance of bonds shall be provided to the Utah Science
             107      Technology and Research Governing Authority to provide funds to pay all or part of the cost of
             108      constructing the projects listed in this Subsection (2).
             109          (b) These costs may include the cost of acquiring easements and rights-of-way,
             110      improving sites, and acquiring, constructing, equipping, and furnishing facilities and all
             111      structures, roads, parking facilities, utilities, and improvements necessary, incidental, or
             112      convenient to the facilities, interest estimated to accrue on these bonds during the period to be
             113      covered by construction of the projects plus a period of six months after the end of the
             114      construction period, and all related engineering, architectural, and legal fees.
             115          (c) For the Utah Science Technology and Research Governing Authority, proceeds
             116      shall be provided for the following:
             117      -------------------------------------------------------------------------------------------------------------------
             118          CAPITAL DEVELOPMENT PROJECTS


             119                               Estimated Operations    Amount
             120          Project Description              and Maintenance        Funded
             121      -------------------------------------------------------------------------------------------------------------------
             122          Bio Innovations Research Institute --
             123              Utah State University                $0        $18,400,000
             124          Neuroscience and Biomedical Technology
             125              Research Building -- University of Utah    $0        $27,600,000
             126      TOTAL CAPITAL DEVELOPMENT PROJECTS                    $46,000,000
             127      -------------------------------------------------------------------------------------------------------------------
             128      ADDITIONAL AUTHORIZED AMOUNTS                $460,000
             129      TOTAL GENERAL OBLIGATION BOND AUTHORIZATION
             130          FOR CAPITAL DEVELOPMENT PROJECTS                $46,460,000
             131      -------------------------------------------------------------------------------------------------------------------
             132          (d) The Legislature intends that the Utah Science Technology and Research Governing
             133      Authority pay the operations and maintenance costs on the research buildings authorized by
             134      this section.
             135          (3) (a) The amounts funded as listed in Subsection (2) are estimates only and do not
             136      constitute a limitation on the amount that may be expended for the projects.
             137          (b) The commission, by resolution and in consultation with the Utah Science
             138      Technology and Research Governing Authority, may delete the project if the inclusion of that
             139      project could be construed to violate state law or federal law or regulation.
             140          (4) The Utah Science Technology and Research Governing Authority may enter into
             141      agreements related to the project before the receipt of proceeds of bonds issued under this
             142      chapter.
             143          (5) The commission or the state treasurer may make any statement of intent relating to
             144      that reimbursement that is necessary or desirable to comply with federal tax law.
             145          (6) The Utah Science Technology and Research Governing Authority shall contract
             146      with the Division of Facilities Construction and Management to oversee construction of the
             147      buildings.
             148          (7) The Utah Science Technology and Research Governing Authority may not delegate
             149      authority over construction of the capital development projects identified in this section to any


             150      entity other than the Division of Facilities Construction and Management.
             151          Section 3. Effective date.
             152          If approved by two-thirds of all the members elected to each house, this bill takes effect
             153      upon approval by the governor, or the day following the constitutional time limit of Utah
             154      Constitution Article VII, Section 8, without the governor's signature, or in the case of a veto,
             155      the date of veto override.


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