1     
REVENUE BONDS AND CAPITAL FACILITIES

2     
AUTHORIZATIONS

3     
2019 GENERAL SESSION

4     
STATE OF UTAH

5     
Chief Sponsor: Kirk A. Cullimore

6     
House Sponsor: Douglas V. Sagers

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 lease of certain capital facilities.
12     Highlighted Provisions:
13          This bill:
14          ▸     authorizes the State Building Ownership Authority to issue revenue bonds as
15     follows:
16               •     up to $10,091,100 in revenue bonds for the downtown liquor store relocation;
17     and
18               •     up to $14,000,000 in revenue bonds for constructing two liquor stores in the
19     Taylorsville and West Valley City market areas;
20          ▸     authorizes the Board of Regents to issue revenue bonds as follows:
21               •     up to $40,000,000 for constructing the Kathryn F. Kirk Center for
22     Comprehensive Cancer Care and Women's Cancers at the University of Utah;
23               •     up to $80,000,000 for the Rice-Eccles Stadium South End Zone upgrade at the
24     University of Utah;
25               •     up to $41,600,000 for constructing the Mountain View Residence Hall
26     replacement at Utah State University;
27               •     up to $11,700,000 for constructing the east parking terrace at Utah State
28     University;
29               •     up to $37,700,000 for constructing the Space Dynamics Laboratory Research

30     Building at Utah State University;
31               •     up to $15,000,000 for constructing the Space Dynamics Laboratory High Bay
32     Building at Utah State University;
33               •     up to $41,835,000 for constructing a student housing facility at Dixie State
34     University; and
35               •     up to $24,560,000 for the remodel and expansion of the Sorensen Center at Utah
36     Valley University;
37          ▸     authorizes the University of Utah to use up to $89,000,000 in donations and other
38     Huntsman Cancer Institute Funds to plan, design, and construct the Kathryn F. Kirk
39     Center for Comprehensive Cancer Care and Women's Cancers;
40          ▸     authorizes Utah State University to use up to $7,700,000 in institutional funds to
41     plan, design, and construct an information technology services building and
42     authorizes the university to use state funds for operation and maintenance costs and
43     capital improvements of the building; and
44          ▸     authorizes Utah State University to use up to $11,000,000 in institutional funds to
45     plan, design, and construct the Moab Academic Building and authorizes the
46     university to use state funds for operation and maintenance costs and capital
47     improvements of the building.
48     Money Appropriated in this Bill:
49          None
50     Other Special Clauses:
51          None
52     Utah Code Sections Affected:
53     ENACTS:
54          63B-29-101, Utah Code Annotated 1953
55          63B-29-102, Utah Code Annotated 1953
56          63B-29-201, Utah Code Annotated 1953
57     


58     Be it enacted by the Legislature of the state of Utah:
59          Section 1. Section 63B-29-101 is enacted to read:
60     
CHAPTER 29. 2019 BONDING AND FINANCING AUTHORIZATIONS

61     
Part 1. 2019 Revenue Bond Authorizations

62          63B-29-101. Revenue bond authorizations -- State Building Ownership Authority.
63          (1) The Legislature intends that:
64          (a) the State Building Ownership Authority, under the authority of Chapter 1, Part 3,
65     State Building Ownership Authority Act, may issue or execute obligations, or may
66     enter into or arrange for a lease-purchase agreement in which participation interests may be
67     created, to provide up to $10,091,100 for the downtown liquor store relocation, together with
68     additional amounts necessary to pay costs of issuance, pay capitalized interest, and fund any
69     existing debt service reserve requirements;
70          (b) the Department of Alcoholic Beverage Control use sales revenue as the primary
71     revenue source for repayment of any obligation created under authority of this Subsection (1);
72     and
73          (c) the Department of Alcoholic Beverage Control may request operation and
74     maintenance funding from sales revenue.
75          (2) The Legislature intends that:
76          (a) the State Building Ownership Authority, under the authority of Chapter 1, Part 3,
77     State Building Ownership Authority Act, may issue or execute obligations, or may enter into or
78     arrange for a lease-purchase agreement in which participation interests may be created, to
79     provide up to $14,000,000 for two liquor stores in the Taylorsville and West Valley City
80     market areas, together with additional amounts necessary to pay costs of issuance, pay
81     capitalized interest, and fund any existing debt service reserve requirements;
82          (b) the Department of Alcoholic Beverage Control use sales revenue as the primary
83     revenue source for repayment of any obligation created under authority of this Subsection (2);
84     and
85          (c) the Department of Alcoholic Beverage Control may request operation and

86     maintenance funding from sales revenue.
87          Section 2. Section 63B-29-102 is enacted to read:
88          63B-29-102. Revenue bond authorizations -- Board of Regents.
89          (1) The Legislature intends that:
90          (a) the Board of Regents, on behalf of the University of Utah, may issue, sell, and
91     deliver revenue bonds or other evidences of indebtedness of the University of Utah to borrow
92     money on the credit, revenue, and reserves of the university, other than appropriations of the
93     Legislature, to finance the cost of constructing the Kathryn F. Kirk Center for Comprehensive
94     Cancer Care and Women's Cancers;
95          (b) the University of Utah use hospital revenue and donations as the primary revenue
96     sources for repayment of any obligation created under authority of this Subsection (1);
97          (c) the maximum amount of revenue bonds or evidences of indebtedness authorized by
98     this Subsection (1) may not exceed $40,000,000 for acquisition and construction proceeds,
99     together with other amounts necessary to pay costs of issuance, pay capitalized interest, and
100     fund any debt service reserve requirements;
101          (d) the university may, subject to the requirements of Title 63A, Chapter 5, State
102     Building Board - Division of Facilities Construction and Management, use up to $89,000,000
103     in donations and other Huntsman Cancer Institute funds together with proceeds authorized
104     under Subsection (1)(c) to plan, design, and construct the Kathryn F. Kirk Center for
105     Comprehensive Cancer Care and Women's Cancers; and
106          (e) the university may not request state funds for operation and maintenance costs or
107     capital improvements.
108          (2) The Legislature intends that:
109          (a) the Board of Regents, on behalf of the University of Utah, may issue, sell, and
110     deliver revenue bonds or other evidences of indebtedness of the University of Utah to borrow
111     money on the credit, revenue, and reserves of the university, other than appropriations of the
112     Legislature, to finance the cost of constructing the Rice-Eccles Stadium South End Zone
113     upgrade;

114          (b) the University of Utah use athletic revenue and other institutional funds as the
115     primary revenue sources for repayment of any obligation created under authority of this
116     Subsection (2);
117          (c) the maximum amount of revenue bonds or evidences of indebtedness authorized by
118     this Subsection (2) may not exceed $80,000,000 for acquisition and construction proceeds,
119     together with other amounts necessary to pay costs of issuance, pay capitalized interest, and
120     fund any debt service reserve requirements;
121          (d) the university may plan, design, and construct the Rice-Eccles Stadium South End
122     Zone upgrade, subject to the requirements of Title 63A, Chapter 5, State Building Board -
123     Division of Facilities Construction and Management; and
124          (e) the university may not request state funds for operation and maintenance costs or
125     capital improvements.
126          (3) The Legislature intends that:
127          (a) the Board of Regents, on behalf of Utah State University, may issue, sell, and
128     deliver revenue bonds or other evidences of indebtedness of Utah State University to borrow
129     money on the credit, revenue, and reserves of the university, other than appropriations of the
130     Legislature, to finance the cost of constructing the Mountain View Residence Hall
131     replacement;
132          (b) Utah State University use student housing rental fees and other auxiliary revenue as
133     the primary revenue sources for repayment of any obligation created under authority of this
134     Subsection (3);
135          (c) the maximum amount of revenue bonds or evidences of indebtedness authorized by
136     this Subsection (3) may not exceed $41,600,000 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 Mountain View Residence Hall
140     replacement, subject to the requirements of Title 63A, Chapter 5, State Building Board -
141     Division 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          (4) The Legislature intends that:
145          (a) the Board of Regents, on behalf of Utah State University, may issue, sell, and
146     deliver revenue bonds or other evidences of indebtedness of Utah State University to borrow
147     money on the credit, revenue, and reserves of the university, other than appropriations of the
148     Legislature, to finance the cost of constructing the East Parking Terrace;
149          (b) Utah State University use parking fees and other auxiliary revenue as the primary
150     revenue sources for repayment of any obligation created under authority of this Subsection (4);
151          (c) the maximum amount of revenue bonds or evidences of indebtedness authorized by
152     this Subsection (4) may not exceed $11,700,000 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 university may plan, design, and construct the East Parking Terrace, subject to
156     the requirements of Title 63A, Chapter 5, State Building Board - Division of Facilities
157     Construction and Management; and
158          (e) the university may not request state funds for operation and maintenance costs or
159     capital improvements.
160          (5) The Legislature intends that:
161          (a) the Board of Regents, on behalf of Utah State University, may issue, sell, and
162     deliver revenue bonds or other evidences of indebtedness of Utah State University to borrow
163     money on the credit, revenue, and reserves of the university, other than appropriations of the
164     Legislature, to finance the cost of constructing the Space Dynamics Laboratory Research
165     Building;
166          (b) Utah State University use reimbursement from research projects as the primary
167     revenue sources for repayment of any obligation created under authority of this Subsection (5);
168          (c) the maximum amount of revenue bonds or evidences of indebtedness authorized by
169     this Subsection (5) may not exceed $37,700,000 for acquisition and construction proceeds,

170     together with other amounts necessary to pay costs of issuance, pay capitalized interest, and
171     fund any debt service reserve requirements;
172          (d) the university may plan, design, and construct the Space Dynamics Laboratory
173     Research Building, subject to the requirements of Title 63A, Chapter 5, State Building Board -
174     Division of Facilities Construction and Management; and
175          (e) the university may not request state funds for operation and maintenance costs or
176     capital improvements.
177          (6) The Legislature intends that:
178          (a) the Board of Regents, on behalf of Utah State University, may issue, sell, and
179     deliver revenue bonds or other evidences of indebtedness of Utah State University to borrow
180     money on the credit, revenue, and reserves of the university, other than appropriations of the
181     Legislature, to finance the cost of constructing the Space Dynamics Laboratory High Bay
182     Building;
183          (b) Utah State University use reimbursement from research projects as the primary
184     revenue sources for repayment of any obligation created under authority of this Subsection (6);
185          (c) the maximum amount of revenue bonds or evidences of indebtedness authorized by
186     this Subsection (6) may not exceed $15,000,000 for acquisition and construction proceeds,
187     together with other amounts necessary to pay costs of issuance, pay capitalized interest, and
188     fund any debt service reserve requirements;
189          (d) the university may plan, design, and construct the Space Dynamics Laboratory High
190     Bay Building, subject to the requirements of Title 63A, Chapter 5, State Building Board -
191     Division of Facilities Construction and Management; and
192          (e) the university may not request state funds for operation and maintenance costs or
193     capital improvements.
194          (7) The Legislature intends that:
195          (a) the Board of Regents, on behalf of Dixie State University, may issue, sell, and
196     deliver revenue bonds or other evidences of indebtedness of Dixie State University to borrow
197     money on the credit, revenue, and reserves of the university, other than appropriations of the

198     Legislature, to finance the cost of constructing a student housing facility;
199          (b) Dixie State University use student housing rental fees and other auxiliary revenues
200     as the primary revenue sources for repayment of any obligation created under authority of this
201     Subsection (7);
202          (c) the maximum amount of revenue bonds or evidences of indebtedness authorized by
203     this Subsection (7) may not exceed $41,835,000 for acquisition and construction proceeds,
204     together with other amounts necessary to pay costs of issuance, pay capitalized interest, and
205     fund any debt service reserve requirements;
206          (d) the university may plan, design, and construct a student housing facility, subject to
207     the requirements of Title 63A, Chapter 5, State Building Board - Division of Facilities
208     Construction and Management; and
209          (e) the university may not request state funds for operation and maintenance costs or
210     capital improvements.
211          (8) The Legislature intends that:
212          (a) the Board of Regents, on behalf of Utah Valley University, may issue, sell, and
213     deliver revenue bonds or other evidences of indebtedness of Utah Valley University to borrow
214     money on the credit, revenue, and reserves of the university, other than appropriations of the
215     Legislature, to finance the cost of remodeling and expanding the Sorensen Center;
216          (b) Utah Valley University use student fees and auxiliary revenue as the primary
217     revenue sources for repayment of any obligation created under authority of this Subsection (8);
218          (c) the maximum amount of revenue bonds or evidences of indebtedness authorized by
219     this Subsection (8) may not exceed $24,560,000 for acquisition and construction proceeds,
220     together with other amounts necessary to pay costs of issuance, pay capitalized interest, and
221     fund any debt service reserve requirements;
222          (d) the university may plan, design, and construct the remodel and expansion of the
223     Sorensen Center, subject to the requirements of Title 63A, Chapter 5, State Building Board -
224     Division of Facilities Construction and Management; and
225          (e) the university may not request state funds for operation and maintenance costs or

226     capital improvements.
227          Section 3. Section 63B-29-201 is enacted to read:
228     
Part 2. Capital Facility Design and Construction Authorizations

229          63B-29-201. Authorization to design and construct capital facilities using
230     institutional or agency funds.
231          (1) The Legislature intends that:
232          (a) Utah State University may, subject to the requirements of Title 63A, Chapter 5,
233     State Building Board - Division of Facilities Construction and Management, use up to
234     $7,700,000 in institutional funds to plan, design, and construct an information technology
235     services building;
236          (b) the university may not use state funds for any portion of this project; and
237          (c) the university may use state funds for operation and maintenance costs and capital
238     improvements.
239          (2) The Legislature intends that:
240          (a) Utah State University may, subject to the requirements of Title 63A, Chapter 5,
241     State Building Board - Division of Facilities Construction and Management, use up to
242     $11,000,000 in donations and institutional funds to plan, design, and construct the Moab
243     Academic Building;
244          (b) the university may not use state funds for any portion of this project; and
245          (c) the university may use state funds for operation and maintenance costs and capital
246     improvements.