1     
REVENUE BONDS AND CAPITAL FACILITIES AUTHORIZATIONS

2     
2018 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 and
10     authorizes the construction or lease of certain capital facilities.
11     Highlighted Provisions:
12          This bill:
13          ▸     authorizes the State Building Ownership Authority to issue revenue bonds as
14     follows:
15               •     up to $5,451,800 for constructing a Pleasant Grove or Lehi market area liquor
16     store; and
17               •     up to $8,659,000 for reconstructing the Store 4: Foothill liquor store;
18          ▸     authorizes the Board of Regents to issue revenue bonds as follows:
19               •     up to $105,217,000 for constructing a south campus student housing and dining
20     project at the University of Utah;
21               •     up to $31,400,000 for constructing the Space Dynamics Laboratory Phase II at
22     Utah State University; and
23               •     up to $13,000,000 for constructing a student center on the Jordan Campus at
24     Salt Lake Community College;
25          ▸     authorizes Weber State University to use up to $17,604,700 of agency, institutional,
26     or donated funds to plan, design, and construct the Davis Campus Computer and
27     Automotive Engineering Building and authorizes the use of state funds for
28     operation and maintenance costs and capital improvements of the building; and
29          ▸     modifies an existing authorization to allow the Governor's Office of Economic

30     Development to lease, rather than construct, a building for a Southern Utah Welcome Center.
31     Money Appropriated in this Bill:
32          None
33     Other Special Clauses:
34          This bill provides a special effective date.
35     Utah Code Sections Affected:
36     AMENDS:
37          63B-24-201, as enacted by Laws of Utah 2015, Chapter 281
38     ENACTS:
39          63B-28-101, Utah Code Annotated 1953
40          63B-28-102, Utah Code Annotated 1953
41          63B-28-201, Utah Code Annotated 1953
42     

43     Be it enacted by the Legislature of the state of Utah:
44          Section 1. Section 63B-24-201 is amended to read:
45          63B-24-201. Authorizations to design and construct capital facilities using
46     institutional or agency funds.
47          (1) The Legislature intends that:
48          (a) the University of Utah may, subject to the requirements of Title 63A, Chapter 5,
49     State Building Board - Division of Facilities Construction and Management, use up to
50     $8,200,000 in institutional funds to plan, design, and construct the William C. Browning
51     Building Addition with up to 24,000 square feet;
52          (b) the university may not use state funds for any portion of this project; and
53          (c) the university may use state funds for operation and maintenance costs or capital
54     improvements.
55          (2) The Legislature intends that:
56          (a) Utah State University may, subject to the requirements of Title 63A, Chapter 5,
57     State Building Board - Division of Facilities Construction and Management, use up to

58     $10,000,000 in institutional funds to plan, design, and construct the Fine Arts Complex
59     Addition/Renovation with up to 17,000 square feet;
60          (b) the university may not use state funds for any portion of this project; and
61          (c) the university may use state funds for operation and maintenance costs or capital
62     improvements.
63          (3) The Legislature intends that:
64          (a) Salt Lake Community College may, subject to the requirements of Title 63A,
65     Chapter 5, State Building Board - Division of Facilities Construction and Management, use up
66     to $3,900,000 in institutional funds to plan, design, and construct a Strength and Conditioning
67     Center with up to 11,575 square feet;
68          (b) the college may not use state funds for any portion of this project; and
69          (c) the college may not request state funds for operation and maintenance costs or
70     capital improvements.
71          (4) The Legislature intends that:
72          (a) the Governor's Office of Economic Development may, subject to the requirements
73     of Title 63A, Chapter 5, State Building Board - Division of Facilities Construction and
74     Management, use up to $1,800,000 in nonlapsing balances and donations to plan, design, and
75     construct or lease a Southern Utah Welcome Center with up to 5,000 square feet;
76          (b) the office may request additional state funds for the project, unless the office
77     receives donations and begins design or construction of the project; and
78          (c) the office may use state funds for operation and maintenance costs or capital
79     improvements.
80          Section 2. Section 63B-28-101 is enacted to read:
81     
CHAPTER 28. 2018 BONDING AND FINANCING AUTHORIZATIONS

82     
Part 1. 2018 Revenue Bond Authorizations

83          63B-28-101. Revenue bond authorizations -- State Building Ownership Authority.
84          (1) The Legislature intends that:
85          (a) the State Building Ownership Authority, under the authority of Title 63B, Chapter

86     1, Part 3, State Building Ownership Authority Act, may issue or execute obligations, or may
87     enter into or arrange for a lease-purchase agreement in which participation interests may be
88     created, to provide up to $5,451,800 for a Pleasant Grove or Lehi market area liquor store,
89     together with additional amounts necessary to pay costs of issuance, pay capitalized interest,
90     and fund any existing debt service reserve requirements;
91          (b) the Department of Alcoholic Beverage Control use sales revenues as the primary
92     revenue source for repayment of any obligation created under authority of this Subsection (1);
93     and
94          (c) the Department of Alcoholic Beverage Control may request operation and
95     maintenance funding from sales revenues.
96          (2) The Legislature intends that:
97          (a) the State Building Ownership Authority, under the authority of Title 63B, Chapter
98     1, Part 3, State Building Ownership Authority Act, may issue or execute obligations, or may
99     enter into or arrange for a lease-purchase agreement in which participation interests may be
100     created, to provide up to $8,659,000 for reconstructing the Store 4: Foothill liquor store,
101     together with additional amounts necessary to pay costs of issuance, pay capitalized interest,
102     and fund any existing debt service reserve requirements;
103          (b) the Department of Alcoholic Beverage Control use sales revenues as the primary
104     revenue source for repayment of any obligation created under authority of this Subsection (2);
105     and
106          (c) the Department of Alcoholic Beverage Control may request operation and
107     maintenance funding from sales revenues.
108          Section 3. Section 63B-28-102 is enacted to read:
109          63B-28-102. Revenue bond authorizations -- Board of Regents.
110          (1) The Legislature intends that:
111          (a) the Board of Regents, on behalf of the University of Utah, may issue, sell, and
112     deliver revenue bonds or other evidences of indebtedness of the University of Utah to borrow
113     money on the credit, revenues, and reserves of the university, other than appropriations of the

114     Legislature, to finance the cost of constructing a south campus student housing and dining
115     project;
116          (b) the University of Utah use student housing rental fees and other auxiliary revenues
117     as the primary revenue sources for repayment of any obligation created under authority of this
118     Subsection (1);
119          (c) the maximum amount of revenue bonds or evidences of indebtedness authorized by
120     this Subsection (1) may not exceed $105,217,000 for acquisition and construction proceeds,
121     together with other amounts necessary to pay costs of issuance, pay capitalized interest, and
122     fund any debt service reserve requirements;
123          (d) the university may plan, design, and construct a south campus student housing and
124     dining project, subject to the requirements of Title 63A, Chapter 5, State Building Board -
125     Division of Facilities Construction and Management; and
126          (e) the university may not request state funds for operation and maintenance costs or
127     capital improvements.
128          (2) The Legislature intends that:
129          (a) the Board of Regents, on behalf of Utah State University, may issue, sell, and
130     deliver revenue bonds or other evidences of indebtedness of Utah State University to borrow
131     money on the credit, revenues, and reserves of the university, other than appropriations of the
132     Legislature, to finance the cost of constructing the Space Dynamics Laboratory Phase II;
133          (b) Utah State University use reimbursement from research projects as the primary
134     revenue sources for repayment of any obligation created under authority of this Subsection (2);
135          (c) the maximum amount of revenue bonds or evidences of indebtedness authorized by
136     this Subsection (2) may not exceed $31,400,000 for acquisition and construction proceeds,
137     together with other amounts necessary to pay costs of issuance, pay capitalized interest, and
138     fund any debt service reserve requirements;
139          (d) the university may plan, design, and construct the Space Dynamics Laboratory
140     Phase II, subject to the requirements of Title 63A, Chapter 5, State Building Board - Division
141     of Facilities Construction and Management; and

142          (e) the university may not request state funds for operation and maintenance costs or
143     capital improvements.
144          (3) The Legislature intends that:
145          (a) the Board of Regents, on behalf of Salt Lake Community College, may issue, sell,
146     and deliver revenue bonds or other evidences of indebtedness of Salt Lake Community College
147     to borrow money on the credit, revenues, and reserves of the college, other than appropriations
148     of the Legislature, to finance the cost of constructing a student center on the Jordan Campus;
149          (b) Salt Lake Community College use student fees as the primary revenue sources for
150     repayment of any obligation created under authority of this Subsection (3);
151          (c) the maximum amount of revenue bonds or evidences of indebtedness authorized by
152     this Subsection (3) may not exceed $13,000,000 for acquisition and construction proceeds,
153     together with other amounts necessary to pay costs of issuance, pay capitalized interest, and
154     fund any debt service reserve requirements;
155          (d) the college may plan, design, and construct a student center on the Jordan Campus,
156     subject to the requirements of Title 63A, Chapter 5, State Building Board - Division of
157     Facilities Construction and Management; and
158          (e) the college may not request state funds for operation and maintenance costs or
159     capital improvements.
160          Section 4. Section 63B-28-201 is enacted to read:
161     
Part 2. 2018 Capital Facility Design and Construction Authorizations

162          63B-28-201. Authorization to design and construct capital facilities using
163     institutional or agency funds.
164          The Legislature intends that:
165          (1) Weber State University may, subject to the requirements in Title 63A, Chapter 5,
166     State Building Board - Division of Facilities Construction and Management, use up to
167     $17,604,700 in donations and institutional funds to plan, design, and construct the Davis
168     Campus Computer and Automotive Engineering Building;
169          (2) the university may not use state funds for any portion of this project; and

170          (3) the university may use state funds for operation and maintenance costs and capital
171     improvements.
172          Section 5. Effective date.
173          If approved by two-thirds of all the members elected to each house, this bill takes effect
174     upon approval by the governor, or the day following the constitutional time limit of Utah
175     Constitution, Article VII, Section 8, without the governor's signature, or in the case of a veto,
176     the date of veto override.