Rep. Norm Thurston — Voting Record

Bill

Number

S.B. 297 (2023GS)

Sponsor

Sen. Wilson, C.

Final action

Governor Signed 3/23/2023

Outcome

Became law — signed by Gov. Spencer J. Cox

Summary

What it does

• This bill:
• addresses the use of

Every vote on this bill

Bill text

REVENUE BOND AND CAPITAL FACILITIES
AMENDMENTS
GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Chris H. Wilson
House Sponsor: 
Keven J. Stratton
LONG TITLE
General Description:
This bill amends and enacts provisions relating to revenue bonds and funding for
certain capital facility design and construction projects.
Highlighted Provisions:
This bill:
▸ addresses the use of money appropriated to the State Store Land Acquisition and
Building Construction Fund; and
▸ expresses the Legislature's intent relating to the Utah Board of Higher Education's
issuance, sale, and delivery of revenue bonds to finance the construction of:
• the West Village Family and Graduate Housing Phase Two at the University of
Utah;
• the Undergraduate Student Housing project at the University of Utah;
• the South Campus Garage at the University of Utah;
• the John and Marcia Price Computing and Engineering project at the University
of Utah;
• the South Campus Residence Hall at Utah State University; and
• the South Campus Parking Terrace project at Utah State University.
Money Appropriated in this Bill:
None
Other Special Clauses:
None
Utah Code Sections Affected:
AMENDS:
32B-2-307
, as last amended by Laws of Utah 2022, Chapter 315 and last amended by
Coordination Clause, Laws of Utah 2022, Chapter 315
ENACTS:
63B-33-101
, Utah Code Annotated 1953
Be it enacted by the Legislature of the state of Utah:
Section 1. Section 
32B-2-307
 is amended to read:
32B-2-307.
State Store Land Acquisition and Building Construction Fund.
(1) As used in this section, "fund" means the State Store Land Acquisition and
Building Construction Fund created in this section.
(2) There is created an enterprise fund known as the State Store Land Acquisition and
Building Construction Fund.
(3) The fund is funded from the following sources:
(a) appropriations made to the fund by the Legislature;
(b) in accordance with Subsection (6)(a), proceeds from revenue bonds authorized by
Title 63B, Bonds;
(c) subject to Subsection (7)(b), repayments to the fund; and
(d) the interest described in Subsection (4).
(4) (a) The fund shall earn interest.
(b) Interest earned on the fund shall be deposited into the fund.
(5) Subject to Subsection (6), the department may use the money deposited into the
fund:
(a) for construction of new state stores, including to purchase or lease property; and
(b) for maintenance or renovation of existing state stores or facilities.
(6) (a) Before the department spends or commits money from the fund, the department
shall:
(i) present to the Infrastructure and General Government Appropriations Subcommittee
a description of how the department will spend the money; and
(ii) if the department intends to spend or commit money from the fund for construction
of a new state store:
(A) receive approval from the Division of Facilities Construction and Management,
created in Section 
63A-5b-301
; and
(B) receive authorization in an appropriations act.
(b) Following a presentation described in Subsection (6)(a)(i), the Infrastructure and
General Government Appropriations Subcommittee shall recommend whether the department
spend the money in accordance with the department's presentation.
(7) (a) If the department uses money in the fund for a purpose described in Subsection
(5), and subsequently issues a revenue bond for that purpose, the department shall repay the
money with proceeds from the revenue bond.
(b) If the department uses money from the fund for a purpose described in Subsection
(5), and subsequently uses, instead of issuing bonds, cash funding appropriated by the
Legislature to fund that purpose, the department shall reimburse the fund:
(i) with proceeds from liquor revenue in the Liquor Control Fund, created in Section
32B-2-301
, on a long-term payment schedule set by the state treasurer; and
(ii) before the transfer described in Subsection 
32B-2-301
(7).
(8) (a) If the department uses money from the fund that the Legislature appropriated as
a loan to be used for the purposes described in Subsection (5), the department shall repay the
money with proceeds from liquor revenue in the Liquor Control Fund, created in Section
32B-2-301
:
(i) with interest at prevailing municipal revenue bond rates for the state of Utah at the
time of loan origination minus 50 basis points; and
(ii) on a term not to exceed 15 years.
(b) The department shall make each payment under Subsection (8)(a) before the
transfer described in Subsection 
32B-2-301
(7).
Section 2. Section 
63B-33-101
 is enacted to read:
CHAPTER 33. 2023 BONDING AND FINANCING AUTHORIZATIONS
Part 1. 2023 Revenue Bond Authorizations
 63B-33-101.
Revenue bond authorizations -- Utah Board of Higher Education.
(1) The Legislature intends that:
(a) the Utah Board of Higher Education, on behalf of the University of Utah, may
issue, sell, and deliver revenue bonds or other evidences of indebtedness of the University of
Utah to borrow money on the credit, revenues, and reserves of the university, other than
appropriations of the Legislature, to finance the cost of constructing the West Village Family
and Graduate Housing Phase Two;
(b) the University of Utah use student housing rental fees and other auxiliary revenues
as the primary revenue sources for repayment of any obligation created under authority of this
Subsection (1);
(c) the amount of revenue bonds or evidences of indebtedness authorized by this
Subsection (1) may not exceed $214,000,000 for acquisition and construction proceeds,
together with other amounts necessary to pay costs of issuance, pay capitalized interest, and
fund any debt service reserve requirements;
(d) the university may plan, design, and construct the West Village Family and
Graduate Housing Phase Two subject to the requirements of Title 63A, Chapter 5b,
Administration of State Facilities; and
(e) the university may not request additional state funds for operation and maintenance
costs or capital improvements.
(2) The Legislature intends that:
(a) the Utah Board of Higher Education, on behalf of the University of Utah, may
issue, sell, and deliver revenue bonds or other evidences of indebtedness of the University of
Utah to borrow money on the credit, revenues, and reserves of the university, other than
appropriations of the Legislature, to finance the cost of constructing the Undergraduate Student
Housing project;
(b) the University of Utah use student housing rental fees and other auxiliary revenues
as the primary revenue sources for repayment of any obligation created under authority of this
Subsection (2);
(c) the amount of revenue bonds or evidences of indebtedness authorized by this
Subsection (2) may not exceed $382,415,000 for acquisition and construction proceeds,
together with other amounts necessary to pay costs of issuance, pay capitalized interest, and
fund any debt service reserve requirements;
(d) the university may plan, design, and construct the Undergraduate Student Housing
project subject to the requirements of Title 63A, Chapter 5b, Administration of State Facilities;
and
(e) the university may not request additional state funds for operation and maintenance
costs or capital improvements.
(3) The Legislature intends that:
(a) the Utah Board of Higher Education, on behalf of the University of Utah, may
issue, sell, and deliver revenue bonds or other evidences of indebtedness of the University of
Utah to borrow money on the credit, revenues, and reserves of the university, other than
appropriations of the Legislature, to finance the cost of constructing the South Campus Garage;
(b) the University of Utah use parking fees and other auxiliary revenues as the primary
revenue sources for repayment of any obligation created under authority of this Subsection (3);
(c) the amount of revenue bonds or evidences of indebtedness authorized by this
Subsection (3) may not exceed $116,300,000 for acquisition and construction proceeds,
together with other amounts necessary to pay costs of issuance, pay capitalized interest, and
fund any debt service reserve requirements;
(d) the university may plan, design, and construct the South Campus Garage subject to
the requirements of Title 63A, Chapter 5b, Administration of State Facilities; and
(e) the university may not request additional state funds for operation and maintenance
costs or capital improvements.
(4) The Legislature intends that:
(a) the Utah Board of Higher Education, on behalf of the University of Utah, may
issue, sell, and deliver revenue bonds or other evidences of indebtedness of the University of
Utah to borrow money on the credit, revenues, and reserves of the university, other than
appropriations of the Legislature, to finance the cost of constructing the John and Marcia Price
Computing and Engineering project;
(b) the University of Utah use donations, parking revenues, federal funds, and other
institutional revenues as the primary revenue sources for repayment of any obligation created
under authority of this Subsection (4);
(c) the amount of revenue bonds or evidences of indebtedness authorized by this
Subsection (4) may not exceed $76,198,000 for acquisition and construction proceeds, together
with other amounts necessary to pay costs of issuance, pay capitalized interest, and fund any
debt service reserve requirements;
(d) the university may plan, design, and construct the John and Marcia Price
Computing and Engineering building subject to the requirements of Title 63A, Chapter 5b,
Administration of State Facilities; and
(e) the university may request additional state funds for operation and maintenance
costs and capital improvements.
(5) The Legislature intends that:
(a) the Utah Board of Higher Education, on behalf of Utah State University, may issue,
sell, and deliver revenue bonds or other evidences of indebtedness of Utah State University to
borrow money on the credit, revenues, and reserves of the university, other than appropriations
of the Legislature, to finance the cost of constructing the South Campus Residence Hall;
(b) Utah State University use student housing rental fees and other auxiliary revenues
as the primary revenue sources for repayment of any obligation created under authority of this
Subsection (5);
(c) the amount of revenue bonds or evidences of indebtedness authorized by this
Subsection (5) may not exceed $49,293,000 for acquisition and construction proceeds, together
with other amounts necessary to pay costs of issuance, pay capitalized interest, and fund any
debt service reserve requirements;
(d) the university may plan, design, and construct the South Campus Residence Hall
subject to the requirements of Title 63A, Chapter 5b, Administration of State Facilities; and
(e) the university may not request additional state funds for operation and maintenance
costs or capital improvements.
(6) The Legislature intends that:
(a) the Utah Board of Higher Education, on behalf of Utah State University, may issue,
sell, and deliver revenue bonds or other evidences of indebtedness of Utah State University to
borrow money on the credit, revenues, and reserves of the university, other than appropriations
of the Legislature, to finance the cost of constructing the South Campus Parking Terrace
project;
(b) Utah State University use parking fees and other auxiliary revenues as the primary
revenue sources for repayment of any obligation created under authority of this Subsection (6);
(c) the amount of revenue bonds or evidences of indebtedness authorized by this
Subsection (6) may not exceed $22,925,000 for acquisition and construction proceeds, together
with other amounts necessary to pay costs of issuance, pay capitalized interest, and fund any
debt service reserve requirements;
(d) the university may plan, design, and construct the South Campus Parking Terrace
project subject to the requirements of Title 63A, Chapter 5b, Administration of State Facilities;
and
(e) the university may not request additional state funds for operation and maintenance
costs or capital improvements.