Representative Gage Froerer proposes the following substitute bill:


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 Automotive
27     Engineering Building and authorizes the use of state funds for operation and maintenance costs
28     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
31     Welcome Center.
32     Money Appropriated in this Bill:
33          None
34     Other Special Clauses:
35          This bill provides a special effective date.
36     Utah Code Sections Affected:
37     AMENDS:
38          63B-24-201, as enacted by Laws of Utah 2015, Chapter 281
39     ENACTS:
40          63B-28-101, Utah Code Annotated 1953
41          63B-28-102, Utah Code Annotated 1953
42          63B-28-201, Utah Code Annotated 1953
43     

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

57          (a) Utah State University may, subject to the requirements of Title 63A, Chapter 5,
58     State Building Board - Division of Facilities Construction and Management, use up to
59     $10,000,000 in institutional funds to plan, design, and construct the Fine Arts Complex
60     Addition/Renovation with up to 17,000 square feet;
61          (b) the university may not use state funds for any portion of this project; and
62          (c) the university may use state funds for operation and maintenance costs or capital
63     improvements.
64          (3) The Legislature intends that:
65          (a) Salt Lake Community College may, subject to the requirements of Title 63A,
66     Chapter 5, State Building Board - Division of Facilities Construction and Management, use up
67     to $3,900,000 in institutional funds to plan, design, and construct a Strength and Conditioning
68     Center with up to 11,575 square feet;
69          (b) the college may not use state funds for any portion of this project; and
70          (c) the college may not request state funds for operation and maintenance costs or
71     capital improvements.
72          (4) The Legislature intends that:
73          (a) the Governor's Office of Economic Development may, subject to the requirements
74     of Title 63A, Chapter 5, State Building Board - Division of Facilities Construction and
75     Management, use up to $1,800,000 in nonlapsing balances and donations to plan, design, and
76     construct or lease a Southern Utah Welcome Center with up to 5,000 square feet;
77          (b) the office may request additional state funds for the project, unless the office
78     receives donations and begins design or construction of the project; and
79          (c) the office may use state funds for operation and maintenance costs or capital
80     improvements.
81          Section 2. Section 63B-28-101 is enacted to read:
82     
CHAPTER 28. BONDING AND FINANCING AUTHORIZATIONS

83     
Part 1. Revenue Bond Authorizations

84          63B-28-101. Revenue bond authorizations -- State Building Ownership Authority.
85          (1) The Legislature intends that:
86          (a) the State Building Ownership Authority, under the authority of Title 63B, Chapter
87     1, Part 3, State Building Ownership Authority Act, may issue or execute obligations, or may

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

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

150          (b) Salt Lake Community College use student fees as the primary revenue sources for
151     repayment of any obligation created under authority of this Subsection (3);
152          (c) the maximum amount of revenue bonds or evidences of indebtedness authorized by
153     this Subsection (3) may not exceed $13,000,000 for acquisition and construction proceeds,
154     together with other amounts necessary to pay costs of issuance, pay capitalized interest, and
155     fund any debt service reserve requirements;
156          (d) the college may plan, design, and construct a student center on the Jordan Campus,
157     subject to the requirements of Title 63A, Chapter 5, State Building Board - Division of
158     Facilities Construction and Management; and
159          (e) the college may not request state funds for operation and maintenance costs or
160     capital improvements.
161          Section 4. Section 63B-28-201 is enacted to read:
162     
Part 2. 2018 Capital Facility Design and Construction Authorizations

163          63B-28-201. Authorization to design and construct capital facilities using
164     institutional or agency funds.
165          The Legislature intends that:
166          (1) Weber State University may, subject to the requirements in Title 63A, Chapter 5,
167     State Building Board - Division of Facilities Construction and Management, use up to
168     $17,604,700 in donations and institutional funds to plan, design, and construct the Davis
169     Campus Computer and Automotive Engineering Building;
170          (2) the university may not use state funds for any portion of this project; and
171          (3) the university may use state funds for operation and maintenance costs and capital
172     improvements.
173          Section 5. Effective date.
174          If approved by two-thirds of all the members elected to each house, this bill takes effect
175     upon approval by the governor, or the day following the constitutional time limit of Utah
176     Constitution, Article VII, Section 8, without the governor's signature, or in the case of a veto,
177     the date of veto override.