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House approves $21.25 million bonding authority to let universities finance engineering buildings
Summary
The House voted 71–2 to substitute and pass HB 252, authorizing up to $21,250,000 in general obligation bonds to allow Utah State University and the University of Utah to finance engineering buildings; sponsors said institutions must raise matching funds and projects will be publicly bid.
Salt Lake City — The Utah House on Feb. 4 approved a substituted version of House Bill 252, granting bonding authority to let state universities finance engineering building projects.
Representative Adair, who moved to uncircle and present the measure, said the bill authorizes the state to issue general-obligation bonds for the projects but requires the universities to provide matching funds. “If you go over to the line it's page 5 ... Utah State $5,943,500. At University of Utah, it was $15,000,000,” the sponsor said while describing matching expectations and how the House balanced the 2002 budget by reclaiming prior cash appropriations.
Members asked whether the bond proceeds would obligate the state to repay and whether construction would be subject to public bidding. The sponsor stated the state issues the bonds and ultimately is responsible if the borrower defaults, but the universities had agreed to raise specified matching cash. He also assured the body that the work would be subject to public bidding procedures.
The bill sets a maximum issuance under the part of $21,250,000 and includes provisions on pledges and project conversion to cash. After debate, the House recorded the vote: 71 yes, 2 no, and referred the first-substitute bill to the Senate.
Next steps: The substituted HB 252 will proceed to the Senate for further consideration; sponsors said they will circulate additional bond and indebtedness information to members.
