1     
REVENUE BOND AND CAPITAL FACILITIES

2     
AMENDMENTS

3     
2015 GENERAL SESSION

4     
STATE OF UTAH

5     
Chief Sponsor: Wayne A. Harper

6     
House Sponsor: Gage Froerer

7     

8     LONG TITLE
9     General Description:
10          This bill authorizes certain state agencies and institutions to issue revenue bonds, and
11     authorizes the construction or renovation of capital facilities using agency, institutional,
12     or donated funds.
13     Highlighted Provisions:
14          This bill:
15          ▸     modifies an authorization to use institutional or agency funds to plan, design, and
16     construct a capital facilities project;
17          ▸     authorizes the State Building Ownership Authority to issue revenue bonds as
18     follows:
19               •     $86,936,000 for expanding the Fourth District Provo Courthouse; and
20               •     $4,447,900 for constructing a West Valley Liquor Store; and
21          ▸     authorizes the Board of Regents to issue revenue bonds as follows:
22               •     up to $45,000,000 for redeveloping Orson Spencer Hall at the University of
23     Utah;
24               •     up to $23,100,000 for replacing the Valley View Residence Hall at Utah State
25     University;
26               •     up to $23,000,000 for renovating Romney Stadium at Utah State University; and
27               •     up to $20,000,000 for constructing a student housing project at Dixie State

28     University.
29     Money Appropriated in this Bill:
30          None
31     Other Special Clauses:
32          None
33     Utah Code Sections Affected:
34     AMENDS:
35          63B-23-201, as enacted by Laws of Utah 2014, Chapter 113
36     ENACTS:
37          63B-24-101, Utah Code Annotated 1953
38          63B-24-102, Utah Code Annotated 1953
39          63B-24-201, Utah Code Annotated 1953
40     

41     Be it enacted by the Legislature of the state of Utah:
42          Section 1. Section 63B-23-201 is amended to read:
43          63B-23-201. Authorizations to design and construct capital facilities using
44     institutional or agency funds.
45          (1) The Legislature intends that:
46          (a) the University of Utah may, subject to requirements in Title 63A, Chapter 5, State
47     Building Board - Division of Facilities Construction and Management, use up to $10,000,000
48     in donations and institutional funds to plan, design, and construct an expansion and renovation
49     of the Alumni House at the University of Utah with up to an additional 17,000 new square feet;
50          (b) the university may not use state funds for any portion of this project; and
51          (c) the university may not use state funds for operation and maintenance costs or
52     capital improvements.
53          (2) The Legislature intends that:
54          (a) the Department of Public Safety may, subject to requirements in Title 63A, Chapter
55     5, State Building Board - Division of Facilities Construction and Management, use up to
56     $875,000 in nonlapsing balances and an additional $400,000 appropriated from the Department
57     of Public Safety Restricted Account to plan, design, and construct a Communications and
58     Drivers License Building in Vernal with up to 3,500 square feet;

59          (b) the department may not use state funds for any portion of this project; and
60          (c) the department may use state funds for operation and maintenance costs or capital
61     improvements.
62          Section 2. Section 63B-24-101 is enacted to read:
63     
CHAPTER 24. BONDING AND FINANCING AUTHORIZATIONS

64     
Part 1. 2015 Revenue Bond Authorizations

65          63B-24-101. Revenue bond authorizations -- State Building Ownership Authority.
66          (1) The Legislature intends that:
67          (a) the State Building Ownership Authority, under the authority of Title 63B, Chapter
68     1, Part 3, State Building Ownership Authority Act, may issue or execute obligations, or may
69     enter into or arrange for a lease-purchase agreement in which participation interests may be
70     created, to provide up to $86,936,000 for the Fourth District Provo Courthouse Expansion,
71     together with additional amounts necessary to pay costs of issuance, pay capitalized interest,
72     and fund any existing debt service reserve requirements;
73          (b) the judicial branch use court fees and existing lease budgets as the primary revenue
74     sources for repayment of any obligation created under authority of this Subsection (1); and
75          (c) the judicial branch may use state funds for operation and maintenance costs or
76     capital improvements.
77          (2) The Legislature intends that:
78          (a) the State Building Ownership Authority, under the authority of Title 63B, Chapter
79     1, Part 3, State Building Ownership Authority Act, may issue or execute obligations, or may
80     enter into or arrange for a lease-purchase agreement in which participation interests may be
81     created, to provide up to $4,447,900 for a West Valley Liquor Store, together with additional
82     amounts necessary to pay costs of issuance, pay capitalized interest, and fund any existing debt
83     service reserve requirements;
84          (b) the Department of Alcoholic Beverage Control use increased sales revenues as the
85     primary revenue source for repayment of any obligation created under authority of this
86     Subsection (2); and
87          (c) the Department of Alcoholic Beverage Control may request operation and
88     maintenance funding from sales revenues.
89          Section 3. Section 63B-24-102 is enacted to read:

90          63B-24-102. Revenue bond authorizations -- Board of Regents.
91          (1) The Legislature intends that:
92          (a) the Board of Regents, on behalf of the University of Utah, may issue, sell, and
93     deliver revenue bonds or other evidences of indebtedness of the University of Utah to borrow
94     money on the credit, revenues, and reserves of the university, other than appropriations of the
95     Legislature, to finance the cost of constructing the Orson Spencer Hall Redevelopment;
96          (b) the University of Utah use student fees and donations as the primary revenue
97     sources for repayment of any obligation created under authority of this Subsection (1);
98          (c) the maximum amount of revenue bonds or evidences of indebtedness authorized by
99     this Subsection (1) is $45,000,000, together with other amounts necessary to pay costs of
100     issuance, pay capitalized interest, and fund any debt service reserve requirements;
101          (d) the university shall plan, design, and construct the Orson Spencer Hall
102     Redevelopment subject to the requirements of Title 63A, Chapter 5, State Building Board -
103     Division of Facilities Construction and Management; and
104          (e) the university may use state funds for operation and maintenance costs or capital
105     improvements.
106          (2) The Legislature intends that:
107          (a) the Board of Regents, on behalf of Utah State University, may issue, sell, and
108     deliver revenue bonds or other evidences of indebtedness of Utah State University to borrow
109     money on the credit, revenues, and reserves of the university, other than appropriations of the
110     Legislature, to finance the cost of constructing the Valley View Residence Hall Replacement;
111          (b) Utah State University use revenues from housing operations as the primary revenue
112     source for repayment of any obligation created under authority of this Subsection (2);
113          (c) the maximum amount of revenue bonds or evidences of indebtedness authorized by
114     this Subsection (2) is $23,100,000, together with other amounts necessary to pay costs of
115     issuance, pay capitalized interest, and fund any debt service reserve requirements;
116          (d) the university shall plan, design, and construct the Valley View Residence Hall
117     Replacement subject to the requirements of Title 63A, Chapter 5, State Building Board -
118     Division of Facilities Construction and Management; and
119          (e) the university may not request state funds for operation and maintenance costs or
120     capital improvements.

121          (3) The Legislature intends that:
122          (a) the Board of Regents, on behalf of Utah State University, may issue, sell, and
123     deliver revenue bonds or other evidences of indebtedness of Utah State University to borrow
124     money on the credit, revenues, and reserves of the university, other than appropriations of the
125     Legislature, to finance the cost of constructing the Romney Stadium Westside Renovation;
126          (b) Utah State University use gate receipts and donations as the primary revenue
127     sources for repayment of any obligation created under authority of this Subsection (3);
128          (c) the maximum amount of revenue bonds or evidences of indebtedness authorized by
129     this Subsection (3) is $23,000,000, together with other amounts necessary to pay costs of
130     issuance, pay capitalized interest, and fund any debt service reserve requirements;
131          (d) the university shall plan, design, and construct the Romney Stadium Westside
132     Renovation subject to the requirements of Title 63A, Chapter 5, State Building Board -
133     Division of Facilities Construction and Management; and
134          (e) the university may not request state funds for operation and maintenance costs or
135     capital improvements.
136          (4) The Legislature intends that:
137          (a) the Board of Regents, on behalf of Dixie State University, may issue, sell, and
138     deliver revenue bonds or other evidences of indebtedness of Dixie State University to borrow
139     money on the credit, revenues, and reserves of the university, other than appropriations of the
140     Legislature, to finance the cost of constructing a Student Housing Project;
141          (b) Dixie State University use rental fees and other auxiliary income as the primary
142     revenue sources for repayment of any obligation created under authority of this Subsection (4);
143          (c) the maximum amount of revenue bonds or evidences of indebtedness authorized by
144     this Subsection (4) is $20,000,000, together with other amounts necessary to pay costs of
145     issuance, pay capitalized interest, and fund any debt service reserve requirements;
146          (d) the university shall plan, design, and construct the Student Housing Project subject
147     to the requirements of Title 63A, Chapter 5, State Building Board - Division of Facilities
148     Construction and Management; and
149          (e) the university may not request state funds for operation and maintenance costs or
150     capital improvements.
151          Section 4. Section 63B-24-201 is enacted to read:

152     
Part 2. 2015 Capital Facility Design and Construction Authorizations

153          63B-24-201. Authorizations to design and construct capital facilities using
154     institutional or agency funds.
155          (1) The Legislature intends that:
156          (a) the University of Utah may, subject to the requirements of Title 63A, Chapter 5,
157     State Building Board - Division of Facilities Construction and Management, use up to
158     $8,200,000 in institutional funds to plan, design, and construct the William C. Browning
159     Building Addition with up to 24,000 square feet;
160          (b) the university may not use state funds for any portion of this project; and
161          (c) the university may use state funds for operation and maintenance costs or capital
162     improvements.
163          (2) The Legislature intends that:
164          (a) Utah State University may, subject to the requirements of Title 63A, Chapter 5,
165     State Building Board - Division of Facilities Construction and Management, use up to
166     $10,000,000 in institutional funds to plan, design, and construct the Fine Arts Complex
167     Addition/Renovation with up to 17,000 square feet;
168          (b) the university may not use state funds for any portion of this project; and
169          (c) the university may use state funds for operation and maintenance costs or capital
170     improvements.
171          (3) The Legislature intends that:
172          (a) Salt Lake Community College may, subject to the requirements of Title 63A,
173     Chapter 5, State Building Board - Division of Facilities Construction and Management, use up
174     to $3,900,000 in institutional funds to plan, design, and construct a Strength and Conditioning
175     Center with up to 11,575 square feet;
176          (b) the college may not use state funds for any portion of this project; and
177          (c) the college may not request state funds for operation and maintenance costs or
178     capital improvements.
179          (4) The Legislature intends that:
180          (a) the Governor's Office of Economic Development may, subject to the requirements
181     of Title 63A, Chapter 5, State Building Board - Division of Facilities Construction and
182     Management, use up to $1,800,000 in nonlapsing balances and donations to plan, design, and

183     construct a Southern Utah Welcome Center with up to 5,000 square feet;
184          (b) the office may request additional state funds for the project, unless the office
185     receives donations and begins design or construction of the project; and
186          (c) the office may use state funds for operation and maintenance costs or capital
187     improvements.






Legislative Review Note
     as of 3-9-15 7:00 AM


Office of Legislative Research and General Counsel