H.B. 4

1

GENERAL OBLIGATIONS BONDS AUTHORIZATIONS
2 2011 GENERAL SESSION
3 STATE OF UTAH
4 Chief Sponsor: Gage Froerer
5 Senate Sponsor: J. Stuart Adams
6
7 LONG TITLE
8 General Description:
9 This bill authorizes the issuance of general obligation bonds for certain capital
10 facilities.
11 Highlighted Provisions:
12 This bill:
13 . modifies the Bonding Code by authorizing the issuance and sale of general
14 obligations bonds by the State Bonding Commission for capital facilities;
15 . specifies the use of the general obligations bond proceeds and the manner of
16 issuance; and
17 . provides expressions of legislative intent.
18 Money Appropriated in this Bill:
19 None
20 Other Special Clauses:
21 This bill provides an immediate effective date.
22 Utah Code Sections Affected:
23 ENACTS:
24 63B-20-101, Utah Code Annotated 1953
25
26 Be it enacted by the Legislature of the state of Utah:
27 Section 1. Section 63B-20-101 is enacted to read:

28 CHAPTER 20. 2011 FINANCING AUTHORIZATIONS
29 Part 1. 2011 General Obligation Bond Authorizations
30 63B-20-101. Capital Facilities bonds -- Maximum amount -- Projects authorized.
31 (1) The total amount of bonds issued under this section may not exceed $88,516,000
32 for acquisition and construction proceeds, plus additional amounts necessary to pay costs of
33 issuance, to pay capitalized interest, and to fund any debt service reserve requirements, with the
34 total amount of the bonds not to exceed $89,401,200.
35 (2) (a) Proceeds from the issuance of bonds shall be provided to the division to provide
36 funds to pay all or part of the cost of acquiring and constructing the projects listed in this
37 Subsection (2).
38 (b) These costs may include the cost of acquiring land, interests in land, easements and
39 rights-of-way, improving sites, and acquiring, constructing, equipping, and furnishing facilities
40 and all structures, roads, parking facilities, utilities, and improvements necessary, incidental, or
41 convenient to the facilities, interest estimated to accrue on these bonds during the period to be
42 covered by construction of the projects plus a period of six months after the end of the
43 construction period, and all related engineering, architectural, and legal fees.
44 (c) For the division, proceeds shall be provided for the following:
45 ------------------------------------------------------------------------------------------------------------
46 CAPITAL DEVELOPMENT PROJECTS
47 Estimated Operations Amount
48 Project Description and Maintenance Funded
49 ------------------------------------------------------------------------------------------------------------
50 Utah State Hospital Building Consolidation
51 Department of Human Services $14,500 $25,000,000
52 Professional Programs Classroom Building
53 Weber State University $725,000 $31,535,000
54 Tooele County Campus
55 Tooele Applied Technology College $569,000 $9,981,000
56 Business Building Addition/Remodel
57 Utah State University $797,000 $14,000,000
58 State Warehouse Remodel

59 State Archives and Davis Applied
60 Technology College $80,000 $5,000,000
61 Herriman Land Purchase
62 Salt Lake Community College $0 $3,000,000
63 TOTAL CAPITAL DEVELOPMENT PROJECTS $88,516,000
64 ------------------------------------------------------------------------------------------------------------
65 ADDITIONAL AUTHORIZED AMOUNTS $885,200
66 TOTAL GENERAL OBLIGATION BOND AUTHORIZATION
67 FOR CAPITAL DEVELOPMENT PROJECTS $89,401,200
68 ------------------------------------------------------------------------------------------------------------
69 (d) For purposes of this section, operations and maintenance costs:
70 (i) are estimates only;
71 (ii) may include any operations and maintenance costs already funded in existing
72 agency budgets; and
73 (iii) are not commitments by this Legislature or future Legislatures to fund those
74 operations and maintenance costs.
75 (e) Notwithstanding prohibitions on using state funds for operations and maintenance
76 costs for that portion of the professional programs classroom building for Weber State
77 University, that project shall be authorized to receive operations and maintenance costs as
78 specifically provided in this section.
79 (3) (a) The amounts funded as listed in Subsection (2) are estimates only and do not
80 constitute a limitation on the amount that may be expended for any project.
81 (b) The board may revise these estimates and redistribute the amount estimated for a
82 project among the projects authorized.
83 (c) The commission, by resolution and in consultation with the board, may delete one
84 or more projects from this list if the inclusion of that project or those projects in the list could
85 be construed to violate state law or federal law or regulation.
86 (4) (a) The division may enter into agreements related to these projects before the
87 receipt of proceeds of bonds issued under this chapter.
88 (b) The division shall make those expenditures from unexpended and unencumbered
89 building funds already appropriated to the Capital Projects Fund.

90 (c) The division shall reimburse the Capital Projects Fund upon receipt of the proceeds
91 of bonds issued under this chapter.
92 (d) The state intends to use proceeds of tax-exempt bonds to reimburse itself for
93 expenditures for costs of the projects listed in Subsection (2)(c).
94 (5) It is the intent of the Legislature that the funding authorized for projects in
95 Subsection (2) does not include funds for public art.
96 Section 2. Effective date.
97 If approved by two-thirds of all the members elected to each house, this bill takes effect
98 upon approval by the governor, or the day following the constitutional time limit of Utah
99 Constitution Article VII, Section 8, without the governor's signature, or in the case of a veto,
100 the date of veto override.




Legislative Review Note
as of 3-10-11 5:49 PM

Office of Legislative Research and General Counsel