Rep. Norm Thurston — Voting Record

Bill

Number

S.B. 110 First Substitute (2018GS)

Sponsor

Sen. Harper, W.

Final action

Governor Signed 3/19/2018

Outcome

Became law — signed by Gov. Gary R. Herbert

Summary

What it does

• This bill:
• amends language regarding the costs of issuance, capitalized interest, and debt service reserve requirements for certain highway general obligation bonds;
• amends the bonding authority for certain bonds and specifies how certain bond proceeds shall be used to provide funding for certain projects; and
• makes technical changes.

Every vote on this bill

Bill text

BOND AUTHORIZATION AMENDMENTS
GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Wayne A. Harper
House Sponsor: 
Gage Froerer
LONG TITLE
General Description:
This bill modifies provisions relating to certain bond authorizations. 
Highlighted Provisions:
This bill:
▸ amends language regarding the costs of issuance, capitalized interest, and debt
service reserve requirements for certain highway general obligation bonds;
▸ amends the bonding authority for certain bonds and specifies how certain bond
proceeds shall be used to provide funding for certain projects; and
▸ makes technical changes. 
Money Appropriated in this Bill:
None
Other Special Clauses:
None
Utah Code Sections Affected:
AMENDS:
63B-25-101
, as last amended by Laws of Utah 2017, Chapter 89
63B-27-101
, as enacted by Laws of Utah 2017, Chapter 436
63B-27-102
, as enacted by Laws of Utah 2017, Chapter 436
Be it enacted by the Legislature of the state of Utah:
Section 1. Section 
63B-25-101
 is amended to read:
63B-25-101.
General obligation bonds for prison project -- Maximum amount --
Use of proceeds.
(1) As used in this section:
(a) "Prison project" means the same as that term is defined in Section 
63C-16-102
.
(b) "Prison project fund" means the capital projects fund created in Subsection
63A-5-225
(7).
(2) The commission may issue general obligation bonds as provided in this section.
(3) (a) The total amount of bonds to be issued under this section may not exceed
$570,000,000 
for acquisition and construction proceeds
, plus additional amounts necessary to
pay costs of issuance, to pay capitalized interest, and to fund any 
existing
 debt service reserve
requirements, with the total amount of the bonds not to exceed $575,700,000.
(b) The maturity of bonds issued under this section may not exceed 10 years.
(4) The commission shall ensure that proceeds from the issuance of bonds under this
section are deposited into the Prison Project Fund for use by the division to pay all or part of
the cost of the prison project, including:
(a) interest estimated to accrue on the bonds authorized in this section until the
completion of construction of the prison project, plus a period of 12 months after the end of
construction; and
(b) all related engineering, architectural, and legal fees.
(5) (a) The division may enter into agreements related to the prison project before the
receipt of proceeds of bonds issued under this section.
(b) The division shall make those expenditures from unexpended and unencumbered
building funds already appropriated to the Prison Project Fund.
(c) The division shall reimburse the Prison Project Fund upon receipt of the proceeds
of bonds issued under this chapter.
(d) The state intends to use proceeds of tax-exempt bonds to reimburse itself for
expenditures for costs of the prison project.
(6) Before issuing bonds authorized under this section, the commission shall request
and consider a recommendation from the Prison Development Commission, created in Section
63C-16-201
, regarding the timing and amount of the issuance.
Section 2. Section 
63B-27-101
 is amended to read:
63B-27-101.
Highway bonds -- Maximum amount -- Use of proceeds for highway
projects.
(1) (a) Subject to the restriction in Subsection (1)(c), the total amount of bonds issued
under this section may not exceed $1,000,000,000 
for acquisition and construction proceeds ,
plus additional amounts necessary to pay costs of issuance, to pay capitalized interest, and to
fund any existing debt service reserve requirements, with the total amount of the bonds not to
exceed $1,010,000,000 
.
(b) When the Department of Transportation certifies to the commission that the
requirements of Subsection 
72-2-124
(5) have been met and certifies the amount of bond
proceeds that the commission needs to provide funding for the projects described in Subsection
(2) for the current or next fiscal year, the commission may issue and sell general obligation
bonds in an amount equal to the certified amount
,
 plus 
 additional amounts necessary to pay 
costs of issuance
 , to pay capitalized interest, and to fund any existing debt service reserve
requirements, not to exceed one percent of the certified amount 
.
(c) The commission may not issue general obligation bonds authorized under this
section if the issuance of the general obligation bonds would result in the total current
outstanding general obligation debt of the state exceeding 50% of the limitation described in
the Utah Constitution, Article XIV, Section 1.
(2) Except as provided in [
Subsection
] 
Subsections
 (3) 
and (4)
, proceeds from the
issuance of bonds shall be provided to the Department of Transportation to pay all or part of
the costs of the following state highway construction or reconstruction projects:
(a) state and federal highways prioritized by the Transportation Commission through
the prioritization process for new transportation capacity projects adopted under Section
72-1-304
, giving priority consideration for projects with a regional significance or that support
economic development within the state, including:
(i) projects that are prioritized but exceed available cash flow beyond the normal
programming horizon; or
(ii) projects prioritized in the state highway construction program; and
(b) $100,000,000 to be used by the Department of Transportation for transportation
improvements as prioritized by the Transportation Commission for projects that:
(i) have a significant economic development impact associated with recreation and
tourism within the state; and
(ii) address significant needs for congestion mitigation.
(3) [
Nineteen
] 
Thirty-nine
 million dollars of the bond proceeds issued under this
section shall be provided to the Transportation Infrastructure Loan Fund created by Section
72-2-202
 to make funds available for a transportation infrastructure loan or transportation
infrastructure assistance under Title 72, Chapter 2, Part 2, Transportation Infrastructure Loan
Fund, 
including the amounts
 as follows:
(a) [
$10,000,000
] 
$14,000,000
 to the military installation development authority
created in Section 
63H-1-201
; 
and
(b) $5,000,000 for right-of-way acquisition and highway construction in [
Davis
County; and
] 
Salt Lake County for roads in the northwest quadrant of Salt Lake City.
[
(c)
] 
(4) (a)
 [
$4,000,000 for pedestrian access and crossings by
] 
Four million dollars of
the bond proceeds issued under this section shall be used for
 a public transit fixed guideway
rail station [
and
] 
associated with or adjacent to
 an institution of higher education.
(b) Ten million dollars of the bond proceeds issued under this section shall be used by
the Department of Transportation for the design, engineering, construction, or reconstruction of
underpasses under a state highway connecting a state park and a project area created by a
military installation development authority created in Section 
63H-1-201
.
[
(4)
] 
(5)
 The bond proceeds issued under this section shall be provided to the
Department of Transportation.
[
(5)
] 
(6)
 The costs under Subsection (2) may include the costs of studies necessary to
make transportation infrastructure improvements, the costs of acquiring land, interests in land,
and easements and rights-of-way, the costs of improving sites, and making all improvements
necessary, incidental, or convenient to the facilities, and the costs of interest estimated to
accrue on these bonds during the period to be covered by construction of the projects plus a
period of six months after the end of the construction period, interest estimated to accrue on
any bond anticipation notes issued under the authority of this title, and all related engineering,
architectural, and legal fees.
[
(6)
] 
(7)
 The commission or the state treasurer may make any statement of intent
relating to a reimbursement that is necessary or desirable to comply with federal tax law.
[
(7)
] 
(8)
 The Department of Transportation may enter into agreements related to the
projects described in Subsection (2) before the receipt of proceeds of bonds issued under this
section.
Section 3. Section 
63B-27-102
 is amended to read:
63B-27-102.
Highway bonds -- Maximum amount -- Use of proceeds for Salt
Lake County highway projects.
(1) (a) Subject to the restriction in Subsection (1)(c), the total amount of bonds issued
under this section may not exceed $47,000,000 
for acquisition and construction proceeds , plus
additional amounts necessary to pay costs of issuance, to pay capitalized interest, and to fund
any existing debt service reserve requirements, with the total amount of the bonds not to
exceed $47,470,000 
.
(b) When the Department of Transportation certifies to the commission the amount of
bond proceeds that the commission needs to provide funding for the projects described in
Subsection (2), the commission may issue and sell general obligation bonds in an amount equal
to the certified amount
,
 plus 
 additional amounts necessary to pay 
 costs of issuance
 , to pay
capitalized interest, and to fund any existing debt service reserve requirements, not to exceed
one percent of the certified amount 
.
(c) The commission may not issue general obligation bonds authorized under this
section if the issuance of the general obligation bonds would result in the total current
outstanding general obligation debt of the state exceeding 50% of the limitation described in
the Utah Constitution, Article XIV, Section 1.
(2) (a) Proceeds from the bonds issued under this section shall be provided to the
Department of Transportation to pay for or to provide funds to a municipality or county to pay
for the costs of right-of-way acquisition, construction, reconstruction, renovations, or
improvements to highways, transportation facilities, or multimodal transportation projects
described in Subsection (2)(b).
(b) Bond proceeds described under Subsection (2)(a) shall be used to pay for state and
local highway projects or transportation facilities or multimodal transportation projects
described in Subsection 
72-2-121
(4)(c) in Salt Lake County prioritized by the county.
(c) The costs under this Subsection (2) may include the costs of acquiring land,
interests in land, and easements and rights-of-way, the costs of improving sites, and making all
improvements necessary, incidental, or convenient to the facilities, and the costs of interest
estimated to accrue on these bonds during the period to be covered by construction of the
projects plus a period of six months after the end of the construction period, interest estimated
to accrue on any bond anticipation notes issued under the authority of this title, and all related
engineering, architectural, and legal fees.
(3) The commission or the state treasurer may make any statement of intent relating to
a reimbursement that is necessary or desirable to comply with federal tax law.
(4) The Department of Transportation may enter into agreements related to the project
before the receipt of proceeds of bonds issued under this chapter.