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House adopts bond-authorization changes and limits added issuance fees
Summary
The House passed first substitute Senate Bill 110, clarifying GO bond accounting and reallocating certain project amounts; lawmakers also adopted an amendment capping added issuance fees at 1% before final passage (70-0).
SALT LAKE CITY — First substitute Senate Bill 110, a bill clarifying how general-obligation (GO) bond authorization amounts are calculated, passed the Utah House after floor amendments.
Sponsor Representative Frower said the bill clarifies that the amounts to be issued for GO bonds include the amounts originally authorized by the Legislature plus the costs necessary to issue those bonds (issuance costs, capitalized interest and reserve requirements). The House adopted an amendment under Representative Frower's name that changed allocations for several projects (one cited example moved a highway allocation from $19 million to $39 million).
Representative Schultz offered an amendment to cap fees and other costs added onto bond authorizations at 1 percent of the authorized amount, citing concern that uncapped added costs could effectively increase the bond amount in higher-cost market conditions. Representative Frower described the amendment as friendly and supported it on the floor. The House passed the amended bill by a recorded vote of 70-0.
Next steps: the bill will be returned to the Senate for consideration of the House amendments and signature procedures.
