1     
REVENUE BOND AMENDMENTS

2     
2016 GENERAL SESSION

3     
STATE OF UTAH

4     
Chief Sponsor: Gage Froerer

5     
Senate Sponsor: Wayne A. Harper

6     

7     LONG TITLE
8     General Description:
9          This bill authorizes certain state agencies and institutions to issue revenue bonds.
10     Highlighted Provisions:
11          This bill:
12          ▸     authorizes the State Building Ownership Authority to issue revenue bonds as
13     follows:
14               •     up to $3,000,000 for the Fourth District Provo Courthouse parking lot; and
15               •     up to $5,043,400 for constructing a Syracuse liquor store; and
16          ▸     authorizes the Board of Regents to issue revenue bonds as follows:
17               •     up to $50,000,000 for constructing the David Eccles School of Business
18     Executive Education Building at the University of Utah;
19               •     up to $20,000,000 for purchasing a student apartment building complex and
20     surrounding property at Utah State University; and
21               •     up to $12,000,000 for constructing the Space Dynamics Laboratory Phase II at
22     Utah State University.
23     Money Appropriated in this Bill:
24          None
25     Other Special Clauses:
26          None
27     Utah Code Sections Affected:

28     ENACTS:
29          63B-26-101, Utah Code Annotated 1953
30          63B-26-102, Utah Code Annotated 1953
31     

32     Be it enacted by the Legislature of the state of Utah:
33          Section 1. Section 63B-26-101 is enacted to read:
34     
CHAPTER 26. 2016 BONDING AND FINANCING AUTHORIZATIONS

35     
Part 1. 2016 Revenue Bond Authorizations

36          63B-26-101. Revenue Bond authorizations -- State Building Ownership Authority.
37          (1) The Legislature intends that:
38          (a) the State Building Ownership Authority, under the authority of Title 63B, Chapter
39     1, Part 3, State Building Ownership Authority Act, may issue or execute obligations, or may
40     enter into or arrange for a lease-purchase agreement in which participation interests may be
41     created, to provide up to $3,000,000 for the Fourth District Provo Courthouse parking lot,
42     together with additional amounts necessary to pay costs of issuance, pay capitalized interest,
43     and fund any existing debt service reserve requirements;
44          (b) the judicial branch use court fees and existing lease budgets as the primary revenue
45     sources for repayment of any obligation created under authority of this Subsection (1);
46          (c) the judicial branch may use state funds for operation and maintenance costs or
47     capital improvements; and
48          (d) the revenue bond authorized under this Subsection (1) may not be issued until on or
49     after March 1, 2017.
50          (2) The Legislature intends that:
51          (a) the State Building Ownership Authority, under the authority of Title 63B, Chapter
52     1, Part 3, State Building Ownership Authority Act, may issue or execute obligations, or may
53     enter into or arrange for a lease-purchase agreement in which participation interests may be
54     created, to provide up to $5,043,400 for a Syracuse liquor store, together with additional
55     amounts necessary to pay costs of issuance, pay capitalized interest, and fund any existing debt
56     service reserve requirements;
57          (b) the Department of Alcoholic Beverage Control use sales revenues as the primary
58     revenue source for repayment of any obligation created under authority of this Subsection (2);

59     and
60          (c) the Department of Alcoholic Beverage Control may request operation and
61     maintenance funding from sales revenues.
62          Section 2. Section 63B-26-102 is enacted to read:
63          63B-26-102. Revenue bond authorizations -- Board of Regents.
64          (1) The Legislature intends that:
65          (a) the Board of Regents, on behalf of the University of Utah, may issue, sell, and
66     deliver revenue bonds or other evidences of indebtedness of the University of Utah to borrow
67     money on the credit, revenues, and reserves of the university, other than appropriations of the
68     Legislature, to finance the cost of constructing the David Eccles School of Business Executive
69     Education Building;
70          (b) the University of Utah use institutional funds and donations as the primary revenue
71     sources for repayment of any obligation created under authority of this Subsection (1);
72          (c) the maximum amount of revenue bonds or evidences of indebtedness authorized by
73     this Subsection (1) is $50,000,000, together with other amounts necessary to pay costs of
74     issuance, pay capitalized interest, and fund any debt service reserve requirements;
75          (d) the University of Utah may, subject to the requirements of Title 63A, Chapter 5,
76     State Building Board - Division of Facilities Construction and Management, use up to
77     $30,000,000 in donations and institutional funds to plan, design, and construct the David
78     Eccles School of Business Executive Education Building with up to 150,000 square feet;
79          (e) the university shall plan, design, and construct the David Eccles School of Business
80     Executive Education Center, subject to the requirements of Title 63A, Chapter 5, State
81     Building Board - Division of Facilities Construction and Management; and
82          (f) the university may use previously authorized state funds for operation and
83     maintenance costs or capital improvements.
84          (2) The Legislature intends that:
85          (a) the Board of Regents, on behalf of Utah State University, may issue, sell, and
86     deliver revenue bonds or other evidences of indebtedness of Utah State University to borrow
87     money on the credit, revenues, and reserves of the university, other than appropriations of the
88     Legislature, to finance the cost of purchasing a student apartment building complex and
89     surrounding property;

90          (b) Utah State University use revenues from housing operations as the primary revenue
91     source for repayment of any obligation created under authority of this Subsection (2);
92          (c) the maximum amount of revenue bonds or evidences of indebtedness authorized by
93     this Subsection (2) is $20,000,000, together with other amounts necessary to pay costs of
94     issuance, pay capitalized interest, and fund any debt service reserve requirements; and
95          (d) the university may not request state funds for operation and maintenance costs or
96     capital improvements.
97          (3) The Legislature intends that:
98          (a) the Board of Regents, on behalf of Utah State University, may issue, sell, and
99     deliver revenue bonds or other evidences of indebtedness of Utah State University to borrow
100     money on the credit, revenues, and reserves of the university, other than appropriations of the
101     Legislature, to finance the cost of constructing the Space Dynamics Laboratory Phase II;
102          (b) Utah State University use reimbursement from research projects as the primary
103     revenue source for repayment of any obligation created under authority of this Subsection (3);
104          (c) the maximum amount of revenue bonds or evidences of indebtedness authorized by
105     this Subsection (3) is $12,000,000, together with other amounts necessary to pay costs of
106     issuance, pay capitalized interest, and fund any debt service reserve requirements;
107          (d) the university shall plan, design, and construct the Space Dynamics Laboratory
108     Phase II, subject to the requirements of Title 63A, Chapter 5, State Building Board - Division
109     of Facilities Construction and Management; and
110          (e) the university may not request state funds for operation and maintenance costs or
111     capital improvements.






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