Bill Summary – FastDemocracy

Enrolled Copy                                                                         H.B. 191
                        REVENUE BOND AND CAPITAL FACILITIES
                                           AMENDMENTS
                                       2022 GENERAL SESSION
                                           STATE OF UTAH
                               Chief Sponsor: Douglas V. Sagers
                                 Senate Sponsor: Chris H. Wilson
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 LONG TITLE
 General Description:
         This bill amends and enacts provisions relating to calendar year 2022 revenue bonds
 and revenue for certain capital facility design and construction.
 Highlighted Provisions:
         This bill:
         < increases the amount of revenue bonds previously approved for construction of the
 Impact-Epicenter building at the University of Utah;
         < increases the amount of obligations previously approved for reconstructing the Store
 4: Foothill liquor store;
         < increases the amount of obligations previously approved for the downtown liquor
 store relocation;
         < expresses the Legislature's intent relating to the Utah Board of Higher Education's
 issuance, sale, and delivery of revenue bonds to finance:
             C   the construction of the fourth wing of Kahlert Village at the University of Utah;
             C   the construction of the West Valley Health and Community Center at the
 University of Utah;
             C   the construction of improvements to Maverik Stadium at Utah State University;
             C   the construction of Campus View Suites Phase Three at Dixie State University;
             C   the construction of a parking garage at Utah Valley University;
             C   the construction of the Applied Sciences Building at the University of Utah;
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            C   the construction of the Mental Health Facility at the University of Utah;
            C   the purchase, on behalf of Southern Utah University, of The Cottages at
 Shakespeare Lane apartment complex and adjoining home; and
            C   the construction of an indoor football practice facility at the University of Utah;
        < expresses the Legislature's intent relating to the State Building Ownership
 Authority's issuance of obligations to finance:
            C   a new state liquor store in Park City; and
            C   a new state liquor store in St. George;
        < creates the State Store Land Acquisition and Building Construction Fund (fund);
        < authorizes uses for the fund; and
        < makes conforming changes.
 Money Appropriated in this Bill:
        None
 Other Special Clauses:
        This bill provides a coordination clause.
 Utah Code Sections Affected:
 AMENDS:
        32B-2-307, as enacted by Laws of Utah 2018, Chapter 329
        63B-28-101, as last amended by Laws of Utah 2020, Chapter 301
        63B-29-101, as enacted by Laws of Utah 2019, Chapter 410
        63B-31-201, as enacted by Laws of Utah 2021, Chapter 320
        63B-31-202, as enacted by Laws of Utah 2021, Chapter 320
 ENACTS:
        63B-32-101, Utah Code Annotated 1953
        63B-32-102, Utah Code Annotated 1953
 Utah Code Sections Affected by Coordination Clause:
        32B-2-307, as enacted by Laws of Utah 2018, Chapter 329
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       Enrolled Copy                                                                          H.B. 191
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 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.
         [(1)] (2) There is created an enterprise fund known as the State Store Land Acquisition
 and Building Construction Fund.
         [(2)] (3) The [State Store Land Acquisition Fund] fund is funded from the following
 sources:
         (a) appropriations made to the [State Store Land Acquisition Fund] fund by the
 Legislature; [and]
         (b) in accordance with Subsection [(5)] (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.
         [(3)] (5) Subject to Subsection [(4)] (6), the department may use the money deposited
 into the [State Store Land Acquisition Fund to purchase or lease property for new state stores.]
 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.
         [(4)] (6) (a) Before the department spends or commits money from the [State Store
 Land Acquisition Fund] 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
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        (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 [(4)(a)] (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.
        [(5) When the department uses money in the State Store Land Acquisition Fund to
 purchase or lease property for a new state store]
        (7) (a) If the department uses money in the fund for a purpose described in Subsection
 (5), and subsequently issues a revenue bond for [the state store for which the department
 purchased or leased the property] that purpose, the department shall repay the money [used to
 purchase or lease the property] 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).
        Section 2. Section 63B-28-101 is amended to read:
        63B-28-101. Revenue bond authorizations -- State Building Ownership
 Authority.
        (1) The Legislature intends that:
        (a) the State Building Ownership Authority, under the authority of [Title 63B,] Chapter
 1, Part 3, State Building Ownership Authority Act, may issue or execute obligations, or may
 enter into or arrange for a lease-purchase agreement in which participation interests may be
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       Enrolled Copy                                                                           H.B. 191
 created, to provide up to $5,451,800 for a Pleasant Grove or Lehi market area liquor store,
 together with additional amounts necessary to pay costs of issuance, pay capitalized interest,
 and fund any existing debt service reserve requirements;
        (b) the Department of Alcoholic Beverage Control use sales revenues as the primary
 revenue source for repayment of any obligation created under authority of this Subsection (1);
 and
        (c) the Department of Alcoholic Beverage Control may request operation and
 maintenance funding from sales revenues.
        (2) The Legislature intends that:
        (a) the State Building Ownership Authority, under the authority of [Title 63B,] Chapter
 1, Part 3, State Building Ownership Authority Act, may issue or execute obligations, or may
 enter into or arrange for a lease-purchase agreement in which participation interests may be
 created, to provide up to [$10,759,000] $12,859,000 for reconstructing the Store 4: Foothill
 liquor store, together with additional amounts necessary to pay costs of issuance, pay
 capitalized interest, and fund any existing debt service reserve requirements;
        (b) the Department of Alcoholic Beverage Control use sales revenues as the primary
 revenue source for repayment of any obligation created under authority of this Subsection (2);
 and
        (c) the Department of Alcoholic Beverage Control may request operation and
 maintenance funding from sales revenues.
        Section 3. Section 63B-29-101 is amended to read:
        63B-29-101. Revenue bond authorizations -- State Building Ownership
 Authority.
        (1) The Legislature intends that:
        (a) the State Building Ownership Authority, under the authority of Chapter 1, Part 3,
 State Building Ownership Authority Act, may issue or execute obligations, or may enter into or
 arrange for a lease-purchase agreement in which participation interests may be created, to
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 provide up to [$10,091,100] $14,591,000 for the downtown liquor store relocation, together
 with additional amounts necessary to pay costs of issuance, pay capitalized interest, and fund
 any existing debt service reserve requirements;
        (b) the Department of Alcoholic Beverage Control use sales revenue as the primary
 revenue source for repayment of any obligation created under authority of this Subsection (1);
 and
        (c) the Department of Alcoholic Beverage Control may request operation and
 maintenance funding from sales revenue.
        (2) The Legislature intends that:
        (a) the State Building Ownership Authority, under the authority of Chapter 1, Part 3,
 State Building Ownership Authority Act, may issue or execute obligations, or may enter into or
 arrange for a lease-purchase agreement in which participation interests may be created, to
 provide up to $14,000,000 for two liquor stores in the Taylorsville and West Valley City
 market areas, together with additional amounts necessary to pay costs of issuance, pay
 capitalized interest, and fund any existing debt service reserve requirements;
        (b) the Department of Alcoholic Beverage Control use sales revenue as the primary
 revenue source for repayment of any obligation created under authority of this Subsection (2);
 and
        (c) the Department of Alcoholic Beverage Control may request operation and
 maintenance funding from sales revenue.
        Section 4. Section 63B-31-201 is amended to read:
        63B-31-201. 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 Graduate
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        Enrolled Copy                                                                          H.B. 191
 and Family Student Housing;
         (b) the University of Utah use student housing rental fees and other auxiliary revenue
 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 $125,800,000 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 Graduate and
 Family Student Housing, subject to the requirements of Title 63A, Chapter 5b, Administration
 of State Facilities; and
         (e) the university may not request 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 Impact - Epicenter
 building;
         (b) the University of Utah use donations, student housing rental fees, and other
 auxiliary revenue 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 [$85,700,000] $118,700,000 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 Impact - Epicenter building,
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 subject to the requirements of Title 63A, Chapter 5b, Administration of State Facilities; and
        (e) the university may not request 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 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 an expansion of the Electric Vehicle and
 Roadway building;
        (b) Utah State University use research revenue, donations, and institutional funds 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 $9,200,000 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 expansion of the Electric Vehicle
 and Roadway building, subject to the requirements of Title 63A, Chapter 5b, Administration of
 State Facilities; and
        (e) the university may not request 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 Weber State University, may
 issue, sell, and deliver revenue bonds or other evidences of indebtedness of Weber 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 Stewart Stadium east
 bleachers;
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        Enrolled Copy                                                                        H.B. 191
        (b) Weber State University use student fees and institutional funds 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 $4,000,000 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 Stewart Stadium east bleachers,
 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.
        (5) The Legislature intends that:
        (a) the Utah Board of Higher Education, on behalf of Weber State University, may
 issue, sell, and deliver revenue bonds or other evidences of indebtedness of Weber 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 Noorda Engineering
 and Applied Science building;
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