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8 LONG TITLE
9 General Description:
10 This bill amends and enacts provisions relating to revenue bonds and funding for
11 certain capital facility design and construction projects.
12 Highlighted Provisions:
13 This bill:
14 ▸ addresses the use of money appropriated to the State Store Land Acquisition and
15 Building Construction Fund; and
16 ▸ expresses the Legislature's intent relating to the Utah Board of Higher Education's
17 issuance, sale, and delivery of revenue bonds to finance the construction of:
18 • the West Village Family and Graduate Housing Phase Two at the University of
19 Utah;
20 • the Undergraduate Student Housing project at the University of Utah;
21 • the South Campus Garage at the University of Utah;
22 • the John and Marcia Price Computing and Engineering project at the University
23 of Utah;
24 • the South Campus Residence Hall at Utah State University; and
25 • the South Campus Parking Terrace project at Utah State University.
26 Money Appropriated in this Bill:
27 None
28 Other Special Clauses:
29 None
30 Utah Code Sections Affected:
31 AMENDS:
32 32B-2-307, as last amended by Laws of Utah 2022, Chapter 315 and last amended by
33 Coordination Clause, Laws of Utah 2022, Chapter 315
34 ENACTS:
35 63B-33-101, Utah Code Annotated 1953
36
37 Be it enacted by the Legislature of the state of Utah:
38 Section 1. Section 32B-2-307 is amended to read:
39 32B-2-307. State Store Land Acquisition and Building Construction Fund.
40 (1) As used in this section, "fund" means the State Store Land Acquisition and
41 Building Construction Fund created in this section.
42 (2) There is created an enterprise fund known as the State Store Land Acquisition and
43 Building Construction Fund.
44 (3) The fund is funded from the following sources:
45 (a) appropriations made to the fund by the Legislature;
46 (b) in accordance with Subsection (6)(a), proceeds from revenue bonds authorized by
47 Title 63B, Bonds;
48 (c) subject to Subsection (7)(b), repayments to the fund; and
49 (d) the interest described in Subsection (4).
50 (4) (a) The fund shall earn interest.
51 (b) Interest earned on the fund shall be deposited into the fund.
52 (5) Subject to Subsection (6), the department may use the money deposited into the
53 fund:
54 (a) for construction of new state stores, including to purchase or lease property; and
55 (b) for maintenance or renovation of existing state stores or facilities.
56 (6) (a) Before the department spends or commits money from the fund, the department
57 shall:
58 (i) present to the Infrastructure and General Government Appropriations Subcommittee
59 a description of how the department will spend the money; and
60 (ii) if the department intends to spend or commit money from the fund for construction
61 of a new state store:
62 (A) receive approval from the Division of Facilities Construction and Management,
63 created in Section 63A-5b-301; and
64 (B) receive authorization in an appropriations act.
65 (b) Following a presentation described in Subsection (6)(a)(i), the Infrastructure and
66 General Government Appropriations Subcommittee shall recommend whether the department
67 spend the money in accordance with the department's presentation.
68 (7) (a) If the department uses money in the fund for a purpose described in Subsection
69 (5), and subsequently issues a revenue bond for that purpose, the department shall repay the
70 money with proceeds from the revenue bond.
71 (b) If the department uses money from the fund for a purpose described in Subsection
72 (5), and subsequently uses, instead of issuing bonds, cash funding appropriated by the
73 Legislature to fund that purpose, the department shall reimburse the fund:
74 (i) with proceeds from liquor revenue in the Liquor Control Fund, created in Section
75 32B-2-301, on a long-term payment schedule set by the state treasurer; and
76 (ii) before the transfer described in Subsection 32B-2-301(7).
77 (8) (a) If the department uses money from the fund that the Legislature appropriated as
78 a loan to be used for the purposes described in Subsection (5), the department shall repay the
79 money with proceeds from liquor revenue in the Liquor Control Fund, created in Section
80 32B-2-301:
81 (i) with interest at prevailing municipal revenue bond rates for the state of Utah at the
82 time of loan origination minus 50 basis points; and
83 (ii) on a term not to exceed 15 years.
84 (b) The department shall make each payment under Subsection (8)(a) before the
85 transfer described in Subsection 32B-2-301(7).
86 Section 2. Section 63B-33-101 is enacted to read:
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89 63B-33-101. Revenue bond authorizations -- Utah Board of Higher Education.
90 (1) The Legislature intends that:
91 (a) the Utah Board of Higher Education, on behalf of the University of Utah, may
92 issue, sell, and deliver revenue bonds or other evidences of indebtedness of the University of
93 Utah to borrow money on the credit, revenues, and reserves of the university, other than
94 appropriations of the Legislature, to finance the cost of constructing the West Village Family
95 and Graduate Housing Phase Two;
96 (b) the University of Utah use student housing rental fees and other auxiliary revenues
97 as the primary revenue sources for repayment of any obligation created under authority of this
98 Subsection (1);
99 (c) the amount of revenue bonds or evidences of indebtedness authorized by this
100 Subsection (1) may not exceed $214,000,000 for acquisition and construction proceeds,
101 together with other amounts necessary to pay costs of issuance, pay capitalized interest, and
102 fund any debt service reserve requirements;
103 (d) the university may plan, design, and construct the West Village Family and
104 Graduate Housing Phase Two subject to the requirements of Title 63A, Chapter 5b,
105 Administration of State Facilities; and
106 (e) the university may not request additional state funds for operation and maintenance
107 costs or capital improvements.
108 (2) The Legislature intends that:
109 (a) the Utah Board of Higher Education, on behalf of the University of Utah, may
110 issue, sell, and deliver revenue bonds or other evidences of indebtedness of the University of
111 Utah to borrow money on the credit, revenues, and reserves of the university, other than
112 appropriations of the Legislature, to finance the cost of constructing the Undergraduate Student
113 Housing project;
114 (b) the University of Utah use student housing rental fees and other auxiliary revenues
115 as the primary revenue sources for repayment of any obligation created under authority of this
116 Subsection (2);
117 (c) the amount of revenue bonds or evidences of indebtedness authorized by this
118 Subsection (2) may not exceed $382,415,000 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 Undergraduate Student Housing
122 project subject to the requirements of Title 63A, Chapter 5b, Administration of State Facilities;
123 and
124 (e) the university may not request additional state funds for operation and maintenance
125 costs or capital improvements.
126 (3) The Legislature intends that:
127 (a) the Utah Board of Higher Education, on behalf of the University of Utah, may
128 issue, sell, and deliver revenue bonds or other evidences of indebtedness of the University of
129 Utah to borrow money on the credit, revenues, and reserves of the university, other than
130 appropriations of the Legislature, to finance the cost of constructing the South Campus Garage;
131 (b) the University of Utah use parking fees and other auxiliary revenues as the primary
132 revenue sources for repayment of any obligation created under authority of this Subsection (3);
133 (c) the amount of revenue bonds or evidences of indebtedness authorized by this
134 Subsection (3) may not exceed $116,300,000 for acquisition and construction proceeds,
135 together with other amounts necessary to pay costs of issuance, pay capitalized interest, and
136 fund any debt service reserve requirements;
137 (d) the university may plan, design, and construct the South Campus Garage subject to
138 the requirements of Title 63A, Chapter 5b, Administration of State Facilities; and
139 (e) the university may not request additional state funds for operation and maintenance
140 costs or capital improvements.
141 (4) The Legislature intends that:
142 (a) the Utah Board of Higher Education, on behalf of the University of Utah, may
143 issue, sell, and deliver revenue bonds or other evidences of indebtedness of the University of
144 Utah to borrow money on the credit, revenues, and reserves of the university, other than
145 appropriations of the Legislature, to finance the cost of constructing the John and Marcia Price
146 Computing and Engineering project;
147 (b) the University of Utah use donations, parking revenues, federal funds, and other
148 institutional revenues as the primary revenue sources for repayment of any obligation created
149 under authority of this Subsection (4);
150 (c) the amount of revenue bonds or evidences of indebtedness authorized by this
151 Subsection (4) may not exceed $76,198,000 for acquisition and construction proceeds, together
152 with other amounts necessary to pay costs of issuance, pay capitalized interest, and fund any
153 debt service reserve requirements;
154 (d) the university may plan, design, and construct the John and Marcia Price
155 Computing and Engineering building subject to the requirements of Title 63A, Chapter 5b,
156 Administration of State Facilities; and
157 (e) the university may request additional state funds for operation and maintenance
158 costs and capital improvements.
159 (5) The Legislature intends that:
160 (a) the Utah Board of Higher Education, on behalf of Utah State University, may issue,
161 sell, and deliver revenue bonds or other evidences of indebtedness of Utah State University to
162 borrow money on the credit, revenues, and reserves of the university, other than appropriations
163 of the Legislature, to finance the cost of constructing the South Campus Residence Hall;
164 (b) Utah State University use student housing rental fees and other auxiliary revenues
165 as the primary revenue sources for repayment of any obligation created under authority of this
166 Subsection (5);
167 (c) the amount of revenue bonds or evidences of indebtedness authorized by this
168 Subsection (5) may not exceed $49,293,000 for acquisition and construction proceeds, together
169 with other amounts necessary to pay costs of issuance, pay capitalized interest, and fund any
170 debt service reserve requirements;
171 (d) the university may plan, design, and construct the South Campus Residence Hall
172 subject to the requirements of Title 63A, Chapter 5b, Administration of State Facilities; and
173 (e) the university may not request additional state funds for operation and maintenance
174 costs or capital improvements.
175 (6) The Legislature intends that:
176 (a) the Utah Board of Higher Education, on behalf of Utah State University, may issue,
177 sell, and deliver revenue bonds or other evidences of indebtedness of Utah State University to
178 borrow money on the credit, revenues, and reserves of the university, other than appropriations
179 of the Legislature, to finance the cost of constructing the South Campus Parking Terrace
180 project;
181 (b) Utah State University use parking fees and other auxiliary revenues as the primary
182 revenue sources for repayment of any obligation created under authority of this Subsection (6);
183 (c) the amount of revenue bonds or evidences of indebtedness authorized by this
184 Subsection (6) may not exceed $22,925,000 for acquisition and construction proceeds, together
185 with other amounts necessary to pay costs of issuance, pay capitalized interest, and fund any
186 debt service reserve requirements;
187 (d) the university may plan, design, and construct the South Campus Parking Terrace
188 project subject to the requirements of Title 63A, Chapter 5b, Administration of State Facilities;
189 and
190 (e) the university may not request additional state funds for operation and maintenance
191 costs or capital improvements.