Third Substitute H.B. 158

Representative Michael E. Noel proposes the following substitute bill:

1 AMENDMENTS TO TRANSPORTATION
2 PROVISIONS
3 2007 GENERAL SESSION
4 STATE OF UTAH
5 Chief Sponsor: Wayne A. Harper
6 Senate Sponsor: Howard A. Stephenson
7
8 LONG TITLE
9 General Description:
10 This bill amends provisions relating to transportation.
11 Highlighted Provisions:
12 This bill:
13 . provides definitions;
14 . creates the Mountain View Corridor Fund;
15 . provides that the following shall be deposited in the Mountain View Corridor Fund:
16 . the local corridor preservation fee imposed in a county of the first class;
17 . 25% of the .25% Public Transit Tax revenue in a county of the first class when
18 certain bonds have been paid off; and
19 . 25% of the County Option Sales and Use Tax for Transportation tax revenue
20 imposed in a county of the first class that is designated for corridor preservation;
21 . exempts the Mountain View Corridor Fund from spending limit provisions;
22 . authorizes issuance of a $300,000,000 general obligation bond to pay all or part of
23 the cost of acquiring and constructing a highway construction project within the
24 Mountain View Corridor;
25 . exempts the general obligation bond from certain debt limitation provisions;

26 . authorizes the Department of Transportation to spend revenues deposited in the
27 Transportation Corridor Preservation Revolving Loan Fund on administrative costs
28 for transportation corridor preservation;
29 . restricts the use of the Local Transportation Corridor Preservation Fund revenue to
30 preserve highway corridors that are rights-of-way for certain highways;
31 . requires the Division of Finance to transfer funds from the State Public
32 Transportation System Tax Highway Fund into the Mountain View Corridor Fund if
33 the fund monies are not required to pay certain costs for certain highway projects in
34 the current fiscal year;
35 . provides that local revenues from a county of the first class that are deposited in the
36 Mountain View Corridor Fund and used to pay for the purchase of rights-of-way or
37 construction costs for a project within the Mountain View Corridor shall be
38 considered a local matching contribution; and
39 . makes technical changes.
40 Monies Appropriated in this Bill:
41 None
42 Other Special Clauses:
43 This bill takes effect on July 1, 2007.
44 Utah Code Sections Affected:
45 AMENDS:
46 41-1a-1222, as enacted by Chapter 284, Laws of Utah 2005
47 59-12-502, as last amended by Chapters 253 and 329, Laws of Utah 2006
48 59-12-1703, as enacted by Chapter 1, Laws of Utah 2006, Fourth Special Session
49 63-38c-103, as last amended by Chapter 1, Laws of Utah 2005, First Special Session
50 63-38c-402, as last amended by Chapters 308 and 318, Laws of Utah 2004
51 72-2-117, as last amended by Chapter 284, Laws of Utah 2005
52 72-2-117.5, as last amended by Chapter 1, Laws of Utah 2006, Fourth Special Session
53 72-2-121, as last amended by Chapter 1, Laws of Utah 2006, Fourth Special Session
54 ENACTS:
55 63B-16-101, Utah Code Annotated 1953
56 72-2-125, Utah Code Annotated 1953

57
58 Be it enacted by the Legislature of the state of Utah:
59 Section 1. Section 41-1a-1222 is amended to read:
60 41-1a-1222. Local option transportation corridor preservation fee -- Exemptions
61 -- Deposit -- County ordinance -- Notice.
62 (1) (a) (i) A county legislative body may impose a local option transportation corridor
63 preservation fee of up to $10 on each motor vehicle registration within the county.
64 (ii) A fee imposed under Subsection (1)(a)(i) shall be set in whole dollar increments.
65 (b) If imposed under Subsection (1)(a), at the time application is made for registration
66 or renewal of registration of a motor vehicle under this chapter, the applicant shall pay the local
67 option transportation corridor preservation fee established by the county legislative body.
68 (c) A motor vehicle that is exempt from the registration fee under Section 41-1a-1209
69 or Subsection 41-1a-419 (3) is also exempt from the local option transportation corridor
70 preservation fee required by this section.
71 (d) A commercial motor vehicle with an apportioned registration under Section
72 41-1a-301 is exempt from the local option transportation corridor preservation fee required by
73 this section.
74 (2) [The] (a) Except as provided in Subsection (2)(b), the revenue generated under this
75 section shall be:
76 [(a)] (i) deposited in the Local Transportation Corridor Preservation Fund created in
77 Section 72-2-117.5 ;
78 [(b)] (ii) credited to the county from which it is generated; and
79 [(c)] (iii) used and distributed in accordance with Section 72-2-117.5 .
80 (b) The revenue generated by a fee imposed under this section in a county of the first
81 class shall be:
82 (i) deposited in the Mountain View Corridor Fund created in Section 72-2-125 ; and
83 (ii) used in accordance with Section 72-2-125 .
84 (3) To impose or change the amount of a fee under this section, the county legislative
85 body shall pass an ordinance:
86 (a) approving the fee;
87 (b) setting the amount of the fee; and

88 (c) providing an effective date for the fee as provided in Subsection (4).
89 (4) (a) If a county legislative body enacts, changes, or repeals a fee under this section,
90 the enactment, change, or repeal shall take effect on July 1 if the commission receives notice
91 meeting the requirements of Subsection (4)(b) from the county prior to April 1.
92 (b) The notice described in Subsection (4)(a) shall:
93 (i) state that the county will enact, change, or repeal a fee under this part;
94 (ii) include a copy of the ordinance imposing the fee; and
95 (iii) if the county enacts or changes the fee under this section, state the amount of the
96 fee.
97 Section 2. Section 59-12-502 is amended to read:
98 59-12-502. Additional public transit tax for expanded system and fixed guideway
99 and interstate improvements -- Base -- Rate -- Voter approval.
100 (1) (a) (i) In addition to other sales and use taxes, including the public transit district tax
101 authorized by Section 59-12-501 , a county, city, or town within a transit district organized
102 under Title 17A, Chapter 2, Part 10, Utah Public Transit District Act, may impose a sales and
103 use tax of .25% on the transactions described in Subsection 59-12-103 (1) located within the
104 county, city, or town, to fund a fixed guideway and expanded public transportation system.
105 (ii) Notwithstanding Subsection (1)(a)(i), a county, city, or town may not impose a tax
106 under this section on:
107 (A) the sales and uses described in Section 59-12-104 to the extent the sales and uses
108 are exempt from taxation under Section 59-12-104 ; and
109 (B) any amounts paid or charged by a seller that collects a tax under Subsection
110 59-12-107 (1)(b).
111 (b) For purposes of this Subsection (1), the location of a transaction shall be
112 determined in accordance with Section 59-12-207 .
113 (c) (i) A county, city, or town may impose the tax under this section only if the
114 governing body of the county, city, or town submits, by resolution, the proposal to all the
115 qualified voters within the county, city, or town for approval at a general or special election
116 conducted in the manner provided by statute.
117 (ii) Notice of the election under Subsection (1)(c)(i) shall be given by the county, city,
118 or town governing body 15 days in advance in the manner prescribed by statute.

119 (2) If the majority of the voters voting in this election approve the proposal, it shall
120 become effective on the date provided by the county, city, or town governing body.
121 (3) (a) This section may not be construed to require an election in jurisdictions where
122 voters have previously approved a public transit sales or use tax.
123 (b) This section shall be construed to require an election to impose the sales and use
124 tax authorized by this section, including jurisdictions where the voters have previously
125 approved the sales and use tax authorized by Section 59-12-501 , but this section may not be
126 construed to affect the sales and use tax authorized by Section 59-12-501 .
127 (4) No public funds shall be spent to promote the required election.
128 (5) (a) Notwithstanding the designated use of revenues in Subsection (1), of the
129 revenues generated by the tax imposed under this section by any county of the first class:
130 (i) 75% shall be allocated to fund a fixed guideway and expanded public transportation
131 system; and
132 (ii) except as provided in Subsection (5)(b), 25% shall be allocated to fund new
133 construction, major renovations, and improvements to Interstate 15 and state highways within
134 the county and to pay any debt service and bond issuance costs related to those projects.
135 [(b) Notwithstanding the designated use of revenues in Subsection (1), beginning on
136 July 1, 2006, and ending on July 1, 2007, a county of the first class may expend an amount not
137 to exceed $3,500,000 of the revenues described in Subsection (5)(a)(ii) for expenses relating to
138 reconfiguring railroad curves within that county to reduce rail congestion.]
139 (b) (i) As used in this Subsection (5)(b), "Mountain View Corridor" means the land
140 area of Salt Lake County running from Interstate 80 south between SR-154 and SR-111 to
141 12600 South and then south and southeasterly to the northern portion of Utah County west of
142 SR-15.
143 (ii) Beginning on July 1, 2008 and except as provided in Subsection (5)(c), a bond may
144 not be issued to fund new construction, major renovations, and improvements to Interstate 15
145 and state highways within the county if the bond is intended to be paid from revenues allocated
146 under Subsection (5)(a)(ii).
147 (iii) When all bonds incurred before July 1, 2008 for new construction, major
148 renovations, and improvements to Interstate 15 and state highways within the county which
149 were intended to be paid from revenues allocated under Subsection (5)(a)(ii) have been paid

150 off, the revenues generated by the tax imposed under this section that are allocated under
151 Subsection (5)(a)(ii) shall be deposited in the Mountain View Corridor Fund created in Section
152 72-2-125 .
153 (iv) The Department of Transportation shall notify the commission when all bonds that
154 are intended to be paid from revenues allocated under Subsection (5)(a)(ii) have been paid off.
155 (6) A county of the first class may, through an interlocal agreement, authorize the
156 deposit or transfer of the portion of the revenues described in Subsection (5)(a)(ii) to the Public
157 Transportation System Tax Highway Fund created in Section 72-2-121 .
158 Section 3. Section 59-12-1703 is amended to read:
159 59-12-1703. Opinion question election -- Base -- Rate -- Imposition of tax -- Use of
160 tax revenues -- Administration, collection, and enforcement of tax by commission --
161 Administrative fee -- Enactment or repeal of tax -- Annexation -- Notice.
162 (1) (a) Beginning on or after April 1, 2007, and subject to the other provisions of this
163 part, a county legislative body may impose a sales and use tax of up to .25%:
164 (i) on the transactions:
165 (A) described in Subsection 59-12-103 (1); and
166 (B) within the county, including the cities and towns within the county;
167 (ii) for the purposes described in Subsection (4); and
168 (iii) in addition to any other sales and use tax authorized under this chapter.
169 (b) Notwithstanding Subsection (1)(a)(i), a county legislative body may not impose a
170 tax under this section on:
171 (i) the sales and uses described in Section 59-12-104 to the extent the sales and uses
172 are exempt from taxation under Section 59-12-104 ; or
173 (ii) any amounts paid or charged by a seller that collects a tax under Subsection
174 59-12-107 (1)(b).
175 (c) For purposes of this Subsection (1), the location of a transaction shall be
176 determined in accordance with Section 59-12-207 .
177 (2) (a) Except as provided in Subsection (2)(d), before imposing a tax under this part, a
178 county legislative body shall:
179 (i) obtain approval from a majority of the members of the county legislative body to
180 impose the tax; and

181 (ii) submit an opinion question to the county's registered voters voting on the
182 imposition of the tax so that each registered voter has the opportunity to express the registered
183 voter's opinion on whether a tax should be imposed under this part.
184 (b) (i) In a county of the first or second class, the opinion question required by
185 Subsection (2)(a)(ii) shall state the following:
186 "Shall (insert the name of the county), Utah, be authorized to impose a (insert the
187 amount of the sales and use tax up to .25%) sales and use tax for corridor preservation,
188 congestion mitigation, or to expand capacity for regionally significant transportation facilities?"
189 (ii) In a county of the third, fourth, fifth, or sixth class, the opinion question required by
190 Subsection (2)(a)(ii) shall state the following:
191 "Shall (insert the name of the county), Utah, be authorized to impose a (insert the
192 amount of the sales and use tax up to .25%) sales and use tax for transportation projects,
193 corridor preservation, congestion mitigation, or to expand capacity for regionally significant
194 transportation facilities?"
195 (c) Except as provided in Subsection (2)(d), the election required by this Subsection (2)
196 shall be held:
197 (i) at a regular general election conducted in accordance with the procedures and
198 requirements of Title 20A, Election Code, governing regular elections; or
199 (ii) at a special election called by the county legislative body that is:
200 (A) held only on the date of a municipal general election as provided in Subsection
201 20A-1-202 (1); and
202 (B) authorized in accordance with the procedures and requirements of Section
203 20A-1-203 .
204 (d) Notwithstanding Subsection (2)(a) or (c), if a county seeks to impose a tax under
205 this part on or after April 1, 2007, but on or before December 31, 2007, the county legislative
206 body shall:
207 (i) obtain the approval required by Subsection (2)(a)(i) within five calendar days of
208 September 20, 2006;
209 (ii) direct the county clerk to submit the opinion question required by Subsection
210 (2)(a)(ii) during the November 7, 2006 general election; and
211 (iii) hold the election required by this section on November 7, 2006.

212 (3) If a county legislative body determines that a majority of the county's registered
213 voters voting on the imposition of the tax have voted in favor of the imposition of the tax in
214 accordance with Subsection (2), the county legislative body shall impose the tax in accordance
215 with this section.
216 (4) (a) Subject to Subsections (5) and (6), the revenues generated by a tax under this
217 part may only be expended for:
218 (i) a project or service:
219 (A) relating to a regionally significant transportation facility;
220 (B) for the portion of the project or service that is performed within the county;
221 (C) for new capacity or congestion mitigation if the project or service is performed
222 within a county:
223 (I) of the first class;
224 (II) of the second class; or
225 (III) that is part of an area metropolitan planning organization;
226 (D) (I) if the project or service is a principal arterial highway or a minor arterial
227 highway in a county of the first or second class, that is part of the county and municipal master
228 plan and part of:
229 (Aa) the statewide long-range plan; or
230 (Bb) the regional transportation plan of the area metropolitan planning organization if a
231 metropolitan planning organization exists for the area; or
232 (II) if the project or service is for a fixed guideway or an airport, that is part of the
233 regional transportation plan of the area metropolitan planning organization if a metropolitan
234 planning organization exists for the area; and
235 (E) that is on a priority list:
236 (I) created by the county's council of governments in accordance with Subsection (5);
237 and
238 (II) approved by the county legislative body in accordance with Subsection (6);
239 (ii) corridor preservation for a project described in Subsection (4)(a)(i) as provided in
240 Subsection (7)(b); or
241 (iii) any debt service and bond issuance costs related to a project described in
242 Subsection (4)(a)(i) or (ii).

243 (b) In a county of the first or second class, a regionally significant transportation
244 facility project or service described in Subsection (4)(a)(i)(A) must have a funded year priority
245 designation on a Statewide Transportation Improvement Program and Transportation
246 Improvement Program if the project or service described in Subsection (4)(a)(i) is:
247 (i) a principal arterial highway as defined in Section 72-4-102.5 ;
248 (ii) a minor arterial highway as defined in Section 72-4-102.5 ; or
249 (iii) a major collector highway:
250 (A) as defined in Section 72-4-102.5 ; and
251 (B) in a rural area.
252 (c) Notwithstanding the designated use of revenues in Subsection (4)(a), of the
253 revenues generated by the tax imposed under this section by any county of the first or second
254 class, 25% or more shall be expended for the purpose described in Subsection (4)(a)(ii).
255 (d) For purposes of this Subsection (4), the revenues a county will receive from a tax
256 under this part do not include amounts retained by the commission in accordance with
257 Subsection (8).
258 (5) (a) The county's council of governments shall create a priority list of regionally
259 significant transportation facility projects described in Subsection (4)(a) using the process
260 described in Subsection (5)(b) and present the priority list to the county's legislative body for
261 approval as described in Subsection (6).
262 (b) Subject to Sections 59-12-1704 and 59-12-1705 , a council of governments shall
263 establish a council of governments' endorsement process which includes prioritization and
264 application procedures for use of the revenues a county will receive from a tax under this part.
265 (6) (a) The council of governments shall submit the priority list described in
266 Subsection (5) to the county's legislative body and obtain approval of the list from a majority of
267 the members of the county legislative body.
268 (b) A county's council of governments may only submit one priority list per calendar
269 year.
270 (c) A county legislative body may only consider and approve one priority list per
271 calendar year.
272 (7) (a) (i) Except as provided in Subsections (7)(a)(ii) and (7)(b), revenues described in
273 Subsection (4) shall be transmitted:

274 (A) by the commission;
275 (B) to the county;
276 (C) monthly; and
277 (D) by electronic funds transfer.
278 (ii) A county may request that the commission transfer a portion of the revenues
279 described in Subsection (4):
280 (A) directly to a public transit district:
281 (I) organized under Title 17A, Chapter 2, Part 10, Utah Public Transit District Act; and
282 (II) designated by the county; and
283 (B) by providing written notice to the commission:
284 (I) requesting the revenues to be transferred directly to a public transit district as
285 provided in Subsection (7)(a)(ii)(A); and
286 (II) designating the public transit district to which the revenues are requested to be
287 transferred.
288 (b) (i) Except as provided in Subsection (7)(b)(ii), revenues generated by a tax under
289 this part that are allocated for a purpose described in Subsection (4)(a)(ii) shall be:
290 (A) deposited in or transferred to the Local Transportation Corridor Preservation Fund
291 created by Section 72-2-117.5 ; and
292 (B) expended as provided in Section 72-2-117.5 .
293 (ii) In a county of the first class, revenues generated by a tax under this part that are
294 allocated for a purpose described in Subsection (4)(a)(ii) shall be:
295 (A) deposited in or transferred to the [Public Transportation System Tax Highway]
296 Mountain View Corridor Fund created by Section [ 72-2-121 ] 72-2-125 ; and
297 (B) expended as provided in Section [ 72-2-121 ] 72-2-125 .
298 (8) (a) (i) Except as provided in Subsection (8)(b), the tax authorized under this part
299 shall be administered, collected, and enforced in accordance with:
300 (A) the same procedures used to administer, collect, and enforce the tax under:
301 (I) Part 1, Tax Collection; or
302 (II) Part 2, Local Sales and Use Tax Act; and
303 (B) Chapter 1, General Taxation Policies.
304 (ii) A tax under this part is not subject to Subsections 59-12-205 (2) through (7).

305 (b) (i) The commission may retain an amount of tax collected under this part of not to
306 exceed the lesser of:
307 (A) 1.5%; or
308 (B) an amount equal to the cost to the commission of administering this part.
309 (ii) Any amount the commission retains under Subsection (8)(b)(i) shall be:
310 (A) placed in the Sales and Use Tax Administrative Fees Account; and
311 (B) used as provided in Subsection 59-12-206 (2).
312 (9) (a) (i) Except as provided in Subsection (9)(b) or (c), if, on or after April 1, 2007, a
313 county enacts or repeals a tax or changes the rate of a tax under this part, the enactment, repeal,
314 or change shall take effect:
315 (A) on the first day of a calendar quarter; and
316 (B) after a 90-day period beginning on the date the commission receives notice meeting
317 the requirements of Subsection (9)(a)(ii) from the county.
318 (ii) The notice described in Subsection (9)(a)(i)(B) shall state:
319 (A) that the county will enact, repeal, or change the rate of a tax under this part;
320 (B) the statutory authority for the tax described in Subsection (9)(a)(ii)(A);
321 (C) the effective date of the tax described in Subsection (9)(a)(ii)(A); and
322 (D) if the county enacts the tax or changes the rate of the tax described in Subsection
323 (9)(a)(ii)(A), the rate of the tax.
324 (b) (i) For a transaction described in Subsection (9)(b)(iii), if the billing period for the
325 transaction begins before the effective date of the enactment of the tax or tax rate increase
326 under Subsection (1), the enactment of a tax or a tax rate increase shall take effect on the first
327 day of the first billing period that begins after the effective date of the enactment of the tax or
328 the tax rate increase.
329 (ii) For a transaction described in Subsection (9)(b)(iii), if the billing period for the
330 transaction begins before the effective date of the repeal of the tax or the tax rate decrease
331 imposed under Subsection (1), the repeal of a tax or a tax rate decrease shall take effect on the
332 first day of the last billing period that began before the effective date of the repeal of the tax or
333 the tax rate decrease.
334 (iii) Subsections (9)(b)(i) and (ii) apply to transactions subject to a tax under:
335 (A) Subsection 59-12-103 (1)(b);

336 (B) Subsection 59-12-103 (1)(c);
337 (C) Subsection 59-12-103 (1)(d);
338 (D) Subsection 59-12-103 (1)(e);
339 (E) Subsection 59-12-103 (1)(f);
340 (F) Subsection 59-12-103 (1)(g);
341 (G) Subsection 59-12-103 (1)(h);
342 (H) Subsection 59-12-103 (1)(i);
343 (I) Subsection 59-12-103 (1)(j); or
344 (J) Subsection 59-12-103 (1)(k).
345 (c) (i) If a tax due under this chapter on a catalogue sale is computed on the basis of
346 sales and use tax rates published in the catalogue, an enactment, repeal, or change in the rate of
347 a tax described in Subsection (9)(a)(i) takes effect:
348 (A) on the first day of a calendar quarter; and
349 (B) beginning 60 days after the effective date of the enactment, repeal, or change in the
350 rate of the tax under Subsection (9)(a)(i).
351 (ii) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act,
352 the commission may by rule define the term "catalogue sale."
353 (d) (i) Except as provided in Subsection (9)(e) or (f), if, for an annexation that occurs
354 on or after April 1, 2007, the annexation will result in the enactment, repeal, or change in the
355 rate of a tax under this part for an annexing area, the enactment, repeal, or change shall take
356 effect:
357 (A) on the first day of a calendar quarter; and
358 (B) after a 90-day period beginning on the date the commission receives notice meeting
359 the requirements of Subsection (9)(d)(ii) from the county that annexes the annexing area.
360 (ii) The notice described in Subsection (9)(d)(i)(B) shall state:
361 (A) that the annexation described in Subsection (9)(d)(i)(B) will result in an enactment,
362 repeal, or change in the rate of a tax under this part for the annexing area;
363 (B) the statutory authority for the tax described in Subsection (9)(d)(ii)(A);
364 (C) the effective date of the tax described in Subsection (9)(d)(ii)(A); and
365 (D) if the county enacts the tax or changes the rate of the tax described in Subsection
366 (9)(d)(ii)(A), the rate of the tax.

367 (e) (i) For a transaction described in Subsection (9)(e)(iii), if the billing period for the
368 transaction begins before the effective date of the enactment of the tax or a tax rate increase
369 under Subsection (1), the enactment of a tax or a tax rate increase shall take effect on the first
370 day of the first billing period that begins after the effective date of the enactment of the tax or
371 the tax rate increase.
372 (ii) For a transaction described in Subsection (9)(e)(iii), if the billing period for the
373 transaction begins before the effective date of the repeal of the tax or the tax rate decrease
374 imposed under Subsection (1), the repeal of a tax or a tax rate decrease shall take effect on the
375 first day of the last billing period that began before the effective date of the repeal of the tax or
376 the tax rate decrease.
377 (iii) Subsections (9)(e)(i) and (ii) apply to transactions subject to a tax under:
378 (A) Subsection 59-12-103 (1)(b);
379 (B) Subsection 59-12-103 (1)(c);
380 (C) Subsection 59-12-103 (1)(d);
381 (D) Subsection 59-12-103 (1)(e);
382 (E) Subsection 59-12-103 (1)(f);
383 (F) Subsection 59-12-103 (1)(g);
384 (G) Subsection 59-12-103 (1)(h);
385 (H) Subsection 59-12-103 (1)(i);
386 (I) Subsection 59-12-103 (1)(j); or
387 (J) Subsection 59-12-103 (1)(k).
388 (f) (i) If a tax due under this chapter on a catalogue sale is computed on the basis of
389 sales and use tax rates published in the catalogue, an enactment, repeal, or change in the rate of
390 a tax described in Subsection (9)(d)(i) takes effect:
391 (A) on the first day of a calendar quarter; and
392 (B) beginning 60 days after the effective date of the enactment, repeal, or change in the
393 rate under Subsection (9)(d)(i).
394 (ii) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act,
395 the commission may by rule define the term "catalogue sale."
396 Section 4. Section 63-38c-103 is amended to read:
397 63-38c-103. Definitions.

398 As used in this chapter:
399 (1) (a) "Appropriations" means actual unrestricted capital and operating appropriations
400 from unrestricted General Fund sources and from non-Uniform School Fund income tax
401 revenues as presented in the governor's executive budgets.
402 (b) "Appropriation" includes appropriations that are contingent upon available
403 surpluses in the General Fund.
404 (c) "Appropriations" does not mean:
405 (i) debt service expenditures;
406 (ii) emergency expenditures;
407 (iii) expenditures from all other fund or subfund sources presented in the executive
408 budgets;
409 (iv) transfers into, or appropriations made to, the General Fund Budget Reserve
410 Account established in Section 63-38-2.5 ;
411 (v) transfers into, or appropriations made to, the Education Budget Reserve Account
412 established in Section 63-38-2.6 ;
413 (vi) monies appropriated to fund the total one-time project costs for the construction of
414 capital developments as defined in Section 63A-5-104 ;
415 (vii) appropriations made to the Centennial Highway Fund Restricted Account created
416 by Section 72-2-118 ; [or]
417 (viii) appropriations made to the Transportation Investment Fund of 2005 created by
418 Section 72-2-124 [.]; or
419 (ix) appropriations made to the Mountain View Corridor Fund created by Section
420 72-2-125 .
421 (2) "Base year real per capita appropriations" means the result obtained for the state by
422 dividing the fiscal year 1985 actual appropriations of the state less debt monies by:
423 (a) the state's July 1, 1983 population; and
424 (b) the fiscal year 1983 inflation index divided by 100.
425 (3) "Calendar year" means the time period beginning on January 1 of any given year
426 and ending on December 31 of the same year.
427 (4) "Fiscal emergency" means an extraordinary occurrence requiring immediate
428 expenditures and includes the settlement under Chapter 4, Laws of Utah 1988, Fourth Special

429 Session.
430 (5) "Fiscal year" means the time period beginning on July 1 of any given year and
431 ending on June 30 of the subsequent year.
432 (6) "Fiscal year 1985 actual base year appropriations" means fiscal year 1985 actual
433 capital and operations appropriations from General Fund and non-Uniform School Fund
434 income tax revenue sources, less debt monies.
435 (7) "Inflation index" means the change in the general price level of goods and services
436 as measured by the Gross National Product Implicit Price Deflator of the Bureau of Economic
437 Analysis, U.S. Department of Commerce calculated as provided in Section 63-38c-202 .
438 (8) (a) "Maximum allowable appropriations limit" means the appropriations that could
439 be, or could have been, spent in any given year under the limitations of this chapter.
440 (b) "Maximum allowable appropriations limit" does not mean actual appropriations
441 spent or actual expenditures.
442 (9) "Most recent fiscal year's inflation index" means the fiscal year inflation index two
443 fiscal years previous to the fiscal year for which the maximum allowable inflation and
444 population appropriations limit is being computed under this chapter.
445 (10) "Most recent fiscal year's population" means the fiscal year population two fiscal
446 years previous to the fiscal year for which the maximum allowable inflation and population
447 appropriations limit is being computed under this chapter.
448 (11) "Population" means the number of residents of the state as of July 1 of each year
449 as calculated by the Governor's Office of Planning and Budget according to the procedures and
450 requirements of Section 63-38c-202 .
451 (12) "Revenues" means the revenues of the state from every tax, penalty, receipt, and
452 other monetary exaction and interest connected with it that are recorded as unrestricted revenue
453 of the General Fund and from non-Uniform School Fund income tax revenues, except as
454 specifically exempted by this chapter.
455 (13) "Security" means any bond, note, warrant, or other evidence of indebtedness,
456 whether or not the bond, note, warrant, or other evidence of indebtedness is or constitutes an
457 "indebtedness" within the meaning of any provision of the constitution or laws of this state.
458 Section 5. Section 63-38c-402 is amended to read:
459 63-38c-402. Debt limitation -- Vote requirement needed to exceed limitation --

460 Exceptions.
461 (1) (a) Except as provided in Subsection (1)(b), the outstanding general obligation debt
462 of the state may not exceed 45% of the maximum allowable appropriations limit unless
463 approved by more than a two-thirds vote of both houses of the Legislature.
464 (b) Notwithstanding the limitation contained in Subsection (1)(a), debt issued under the
465 authority of the following parts or sections is not subject to the debt limitation established by
466 this section:
467 (i) Title 63B, Chapter 6, Part 2, 1997 Highway General Obligation Bond
468 Authorization;
469 (ii) Title 63B, Chapter 6, Part 3, 1997 Highway Bond Anticipation Note Authorization;
470 (iii) Title 63B, Chapter 7, Part 2, 1998 Highway General Obligation Bond
471 Authorization;
472 (iv) Title 63B, Chapter 7, Part 3, 1998 Highway Bond Anticipation Note
473 Authorization;
474 (v) Title 63B, Chapter 8, Part 2, 1999 Highway General Obligation Bond
475 Authorization;
476 (vi) Title 63B, Chapter 8, Part 3, 1999 Highway Bond Anticipation Note
477 Authorization;
478 (vii) Title 63B, Chapter 9, Part 2, 2000 Highway General Obligation Bond;
479 (viii) Title 63B, Chapter 10, Part 1, 2001 Highway General Obligation Bond;
480 (ix) Title 63B, Chapter 10, Part 2, 2001 Highway General Obligation Bond
481 Anticipation Notes;
482 (x) Title 63B, Chapter 11, Part 5, 2002 Highway General Obligation Bond for Salt
483 Lake County;
484 (xi) Title 63B, Chapter 11, Part 6, 2002 Highway General Obligation Bond
485 Anticipation Notes for Salt Lake County Authorization; [and]
486 (xii) Section 63B-13-102 [.]; and
487 (xiii) Section 63B-16-101 .
488 (2) This section does not apply if contractual rights will be impaired.
489 Section 6. Section 63B-16-101 is enacted to read:
490 Part 1. 2007 General Bond Obligations

491 63B-16-101. Highway bonds -- Maximum amount -- Projects authorized.
492 (1) The total amount of bonds issued under this section may not exceed $300,000,000.
493 (2) (a) Proceeds from the issuance of bonds shall be:
494 (i) deposited in the Mountain View Corridor Fund created by Section 72-2-125 ; and
495 (ii) used by the Department of Transportation to pay for the costs of acquiring and
496 constructing a highway construction project within the Mountain View Corridor as defined in
497 Section 72-2-125 .
498 (b) The Department of Transportation shall use bond proceeds to pay for the portion of
499 the highway construction project described in Subsection (2)(a)(ii) that is located in Salt Lake
500 County.
501 (c) The costs under this Subsection (2) may include the cost of acquiring land, interests
502 in land, easements and rights-of-way, improving sites, and making all improvements necessary,
503 incidental, or convenient to the facilities, interest estimated to accrue on these bonds during the
504 period to be covered by construction of the projects plus a period of six months after the end of
505 the construction period, interest estimated to accrue on any bond anticipation notes issued
506 under the authority of this title, and all related engineering, architectural, and legal fees.
507 (3) The commission or the state treasurer may make any statement of intent relating to
508 a reimbursement that is necessary or desirable to comply with federal tax law.
509 (4) The Department of Transportation may enter into agreements related to the project
510 before the receipt of proceeds of bonds issued under this chapter.
511 Section 7. Section 72-2-117 is amended to read:
512 72-2-117. Transportation Corridor Preservation Revolving Loan Fund --
513 Distribution -- Repayment -- Rulemaking.
514 (1) There is created the Transportation Corridor Preservation Revolving Loan Fund
515 within the Transportation Fund.
516 (2) The fund shall be funded from the following sources:
517 (a) motor vehicle rental tax imposed under Section 59-12-1201 ;
518 (b) appropriations made to the fund by the Legislature;
519 (c) contributions from other public and private sources for deposit into the fund;
520 (d) interest earnings on cash balances;
521 (e) all monies collected for repayments and interest on fund monies;

522 (f) all monies collected from rents and sales of real property acquired with fund
523 monies; and
524 (g) proceeds from general obligation bonds, revenue bonds, or other obligations as
525 authorized by Title 63B, Bonds.
526 (3) All monies appropriated to the Transportation Corridor Preservation Revolving
527 Loan Fund are nonlapsing.
528 (4) (a) The commission shall authorize the expenditure of fund monies to allow the
529 department to acquire real property or any interests in real property for state, county, and
530 municipal transportation corridors subject to:
531 (i) monies available in the fund;
532 (ii) rules made under Subsection (7); and
533 (iii) Subsection (9).
534 (b) Fund monies may be used to pay interest on debts incurred in accordance with this
535 section.
536 (5) Administrative costs [of the Transportation Corridor Preservation Revolving Loan
537 Fund] for transportation corridor preservation shall be paid from the fund.
538 (6) The department:
539 (a) may apply to the commission under this section for monies from the Transportation
540 Corridor Preservation Revolving Loan Fund for a specified transportation corridor project,
541 including for county and municipal projects; and
542 (b) shall repay the fund monies authorized for the project to the fund as required under
543 Subsection (7).
544 (7) The commission shall:
545 (a) administer the Transportation Corridor Preservation Revolving Loan Fund to:
546 (i) preserve transportation corridors;
547 (ii) promote long-term statewide transportation planning;
548 (iii) save on acquisition costs; and
549 (iv) promote the best interests of the state in a manner which minimizes impact on
550 prime agricultural land;
551 (b) prioritize fund monies based on considerations, including:
552 (i) areas with rapidly expanding population;

553 (ii) the willingness of local governments to complete studies and impact statements
554 that meet department standards;
555 (iii) the preservation of corridors by the use of local planning and zoning processes;
556 (iv) the availability of other public and private matching funds for a project; and
557 (v) the cost-effectiveness of the preservation projects;
558 (c) designate high priority corridor preservation projects in cooperation with a
559 metropolitan planning organization;
560 (d) administer the program for the purposes provided in this section;
561 (e) prioritize fund monies in accordance with this section; and
562 (f) make rules in accordance with Title 63, Chapter 46a, Utah Administrative
563 Rulemaking Act, establishing:
564 (i) the procedures for the awarding of fund monies;
565 (ii) the procedures for the department to apply for transportation corridor preservation
566 monies for projects; and
567 (iii) repayment conditions of the monies to the fund from the specified project funds.
568 (8) (a) The proceeds from any bonds or other obligations secured by revenues of the
569 Transportation Corridor Preservation Revolving Loan Fund shall be used for:
570 (i) the acquisition of real property in hardship cases; and
571 (ii) any of the purposes authorized for funds in the Transportation Corridor
572 Preservation Revolving Loan Fund under this section.
573 (b) The commission shall pledge the necessary part of the revenues of the
574 Transportation Corridor Preservation Revolving Loan Fund to the payment of principal of and
575 interest on the bonds or other obligations.
576 (9) (a) The department may not apply for monies under this section unless the highway
577 authority has an access management policy or ordinance in effect that meets the requirements
578 under Subsection (9)(b).
579 (b) The access management policy or ordinance shall:
580 (i) be for the purpose of balancing the need for reasonable access to land uses with the
581 need to preserve the smooth flow of traffic on the highway system in terms of safety, capacity,
582 and speed; and
583 (ii) include provisions:

584 (A) limiting the number of conflict points at driveway locations;
585 (B) separating conflict areas;
586 (C) reducing the interference of through traffic;
587 (D) spacing at-grade signalized intersections; and
588 (E) providing for adequate on-site circulation and storage.
589 (c) The department shall develop a model access management policy or ordinance that
590 meets the requirements of this Subsection (9) for the benefit of a county or municipality under
591 this section.
592 (10) (a) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking
593 Act, the commission shall make rules establishing a corridor preservation advisory council.
594 (b) The corridor preservation advisory council shall:
595 (i) assist with and help coordinate the corridor preservation efforts of the department
596 and local governments;
597 (ii) provide recommendations and priorities concerning corridor preservation and the
598 use of fund monies to the department and to the commission; and
599 (iii) include members designated by each metropolitan planning organization in the
600 state to represent local governments that are involved with corridor preservation through
601 official maps and planning.
602 Section 8. Section 72-2-117.5 is amended to read:
603 72-2-117.5. Local Transportation Corridor Preservation Fund -- Distribution.
604 (1) As used in this section:
605 (a) "Council of governments" means a decision-making body in each county composed
606 of the county governing body and the mayors of each municipality in the county.
607 (b) "Metropolitan planning organization" has the same meaning as defined in Section
608 72-1-208.5 .
609 (2) There is created the Local Transportation Corridor Preservation Fund within the
610 Transportation Fund.
611 (3) The fund shall be funded from the following sources:
612 (a) a local option transportation corridor preservation fee imposed under Section
613 41-1a-1222 ;
614 (b) appropriations made to the fund by the Legislature;

615 (c) contributions from other public and private sources for deposit into the fund;
616 (d) interest earnings on cash balances;
617 (e) all monies collected from rents and sales of real property acquired with fund
618 monies;
619 (f) proceeds from general obligation bonds, revenue bonds, or other obligations issued
620 as authorized by Title 63B, Bonds; and
621 (g) the portion of the sales and use tax described in Subsection 59-12-1703 (4)(a)(ii)
622 and required by Subsection 59-12-1703 (7)(b)(i) to be deposited into the fund.
623 (4) (a) All monies appropriated to the Local Transportation Corridor Preservation Fund
624 are nonlapsing.
625 (b) The State Tax Commission shall provide the department with sufficient data for the
626 department to allocate the revenues:
627 (i) provided under Subsection (3)(a) to each county imposing a local option
628 transportation corridor preservation fee under Section 41-1a-1222 ; and
629 (ii) provided under Subsection 59-12-1703 (4)(a)(ii) to each county imposing a county
630 option sales and use tax for transportation.
631 (c) The monies allocated under Subsection (4)(b):
632 (i) shall be used for the purposes provided in this section for each county; and
633 (ii) are allocated to each county as provided in this section:
634 (A) with the condition that the state will not be charged for any asset purchased with
635 the monies allocated under Subsection (4)(b); and
636 (B) are considered a local matching contribution for the purposes described under
637 Section 72-2-123 if used on a state highway.
638 (d) Administrative costs of the department to implement this section shall be paid from
639 the fund.
640 (5) (a) The department shall authorize the expenditure of fund monies to allow a
641 highway authority to acquire real property or any interests in real property for state, county, and
642 municipal transportation corridors subject to:
643 (i) monies available in the fund to each county under Subsection (4)(b); and
644 (ii) the provisions of this section.
645 (b) Fund monies may be used to pay interest on debts incurred in accordance with this

646 section.
647 (c) (i) (A) Fund monies may be used to pay maintenance costs of properties acquired
648 under this section but limited to a total of 5% of the purchase price of the property.
649 (B) Any additional maintenance cost shall be paid from funds other than under this
650 section.
651 (C) Revenue generated by any property acquired under this section is excluded from
652 the limitations under this Subsection (5)(c)(i).
653 (ii) Fund monies may be used to pay direct costs of acquisition of properties acquired
654 under this section.
655 (d) Fund monies allocated under Subsection (4)(b) may be used by a county highway
656 authority for countywide transportation planning if:
657 (i) the county is not included in a metropolitan planning organization;
658 (ii) the transportation planning is part of the county's continuing, cooperative, and
659 comprehensive process for transportation planning, corridor preservation, right-of-way
660 acquisition, and project programming;
661 (iii) no more than four years allocation every 20 years to each county is used for
662 transportation planning under this Subsection (5)(d); and
663 (iv) the county otherwise qualifies to use the fund monies as provided under this
664 section.
665 (e) (i) Fund monies allocated under Subsection (4)(b) may be used by a county
666 highway authority for transportation corridor planning that is part of the corridor elements of an
667 ongoing work program of transportation projects.
668 (ii) The transportation corridor planning under Subsection (5)(e)(i) shall be under the
669 direction of:
670 (A) the metropolitan planning organization if the county is within the boundaries of a
671 metropolitan planning organization; or
672 (B) the department if the county is not within the boundaries of a metropolitan
673 planning organization.
674 (6) (a) (i) The Local Transportation Corridor Preservation Fund shall be used to
675 preserve transportation corridors, promote long-term statewide transportation planning, save on
676 acquisition costs, and promote the best interests of the state in a manner which minimizes

677 impact on prime agricultural land.
678 (ii) The Local Transportation Corridor Preservation Fund shall only be used to preserve
679 a highway corridor that is right-of-way:
680 (A) in a county of the first or second class for a:
681 (I) state highway;
682 (II) a principal arterial highway as defined in Section 72-4-102.5 ; or
683 (III) a minor arterial highway as defined in Section 72-4-102.5 ; or
684 (B) in a county of the third, fourth, fifth, or sixth class:
685 (I) state highway;
686 (II) a principal arterial highway as defined in Section 72-4-102.5 ;
687 (III) a minor arterial highway as defined in Section 72-4-102.5 ;
688 (IV) a major collector highway as defined in Section 72-4-102.5 ; or
689 (V) a minor collector roads as defined in Section 72-4-102.5 .
690 [(ii)] (iii) The Local Transportation Corridor Preservation Fund may not be used for a
691 transportation corridor that is primarily a recreational trail as defined under Section
692 63-11a-101 .
693 (b) (i) The department shall develop and implement a program to educate highway
694 authorities on the objectives, application process, use, and responsibilities of the Local
695 Transportation Corridor Preservation Fund as provided under this section to promote the most
696 efficient and effective use of fund monies including priority use on designated high priority
697 corridor preservation projects.
698 (ii) The department shall develop a model transportation corridor property acquisition
699 policy or ordinance that meets federal requirements for the benefit of a highway authority to
700 acquire real property or any interests in real property under this section.
701 (c) The department shall authorize the expenditure of fund monies after determining
702 that the expenditure is being made in accordance with this section from applications that are:
703 (i) made by a highway authority; [and]
704 (ii) endorsed by the council of governments[.]; and
705 (iii) for a right-of-way purchase for a highway authorized under Subsection (6)(a)(ii).
706 (7) (a) (i) A council of governments may establish a council of governments
707 endorsement process which includes prioritization and application procedures for use of the

708 monies allocated to each county under this section.
709 (ii) The endorsement process under Subsection (7)(a)(i) may include review or
710 endorsement of the preservation project by the:
711 (A) metropolitan planning organization if the county is within the boundaries of a
712 metropolitan planning organization; or
713 (B) the department if the county is not within the boundaries of a metropolitan
714 planning organization.
715 (b) All fund monies shall be prioritized by each highway authority and council of
716 governments based on considerations, including:
717 (i) areas with rapidly expanding population;
718 (ii) the willingness of local governments to complete studies and impact statements
719 that meet department standards;
720 (iii) the preservation of corridors by the use of local planning and zoning processes;
721 (iv) the availability of other public and private matching funds for a project;
722 (v) the cost-effectiveness of the preservation projects;
723 (vi) long and short-term maintenance costs for property acquired; and
724 (vii) whether the transportation corridor is included as part of:
725 (A) the county and municipal master plan; and
726 (B) (I) the statewide long range plan; or
727 (II) the regional transportation plan of the area metropolitan planning organization if
728 one exists for the area.
729 (8) (a) Unless otherwise provided by written agreement with another highway
730 authority, the highway authority that holds the deed to the property is responsible for
731 maintenance of the property.
732 (b) The transfer of ownership for property acquired under this section from one
733 highway authority to another shall include a recorded deed for the property and a written
734 agreement between the highway authorities.
735 (9) (a) The proceeds from any bonds or other obligations secured by revenues of the
736 Local Transportation Corridor Preservation Fund shall be used for the purposes authorized for
737 funds under this section.
738 (b) The highway authority shall pledge the necessary part of the revenues of the Local

739 Transportation Corridor Preservation Fund to the payment of principal and interest on the
740 bonds or other obligations.
741 (10) (a) A highway authority may not apply for monies under this section unless the
742 highway authority has:
743 (i) a transportation corridor property acquisition policy or ordinance in effect that
744 meets federal requirements for the acquisition of real property or any interests in real property
745 under this section; and
746 (ii) an access management policy or ordinance in effect that meets the requirements
747 under Subsection 72-2-117 (9).
748 (b) The provisions of Subsection (10)(a)(i) do not apply if the highway authority has a
749 written agreement with the department for the acquisition of real property or any interests in
750 real property under this section.
751 Section 9. Section 72-2-121 is amended to read:
752 72-2-121. Public Transportation System Tax Highway Fund.
753 (1) There is created a special revenue fund entitled the Public Transportation System
754 Tax Highway Fund.
755 (2) The fund consists of monies generated from the following revenue sources:
756 (a) any voluntary contributions received for new construction, major renovations, and
757 improvements to Interstate 15 and state highways within a county of the first class; and
758 (b) the portion of the sales and use tax described in Subsection 59-12-502 (5)(a)(ii)
759 deposited in or transferred to the fund through an interlocal agreement[; and].
760 [(c) the portion of the sales and use tax described in Subsection 59-12-1703 (4)(a)(ii)
761 and required by Subsection 59-12-1703 (7)(b)(ii) to be deposited in or transferred to the fund.]
762 (3) (a) The fund shall earn interest.
763 (b) All interest earned on fund monies shall be deposited into the fund.
764 (4) (a) The Division of Finance shall, from funds that are deposited or transferred into
765 the Public Transportation System Tax Highway Fund, transfer into the Mountain View
766 Corridor created by Section 72-2-125 the amount of funds certified by the Department of
767 Transportation in accordance with Subsection (4)(b) that are not required to pay:
768 (i) principal, interest, and issuance costs of bonds issued for highway construction
769 projects authorized under Subsection 63B-11-502 (2)(a) or (e) in the current fiscal year; or

770 (ii) construction or reconstruction costs for projects authorized under Subsection
771 63B-11-502 (2)(a) or (e) in the current fiscal year.
772 (b) The Division of Finance shall transfer the amount under Subsection (7)(a) when the
773 Division of Finance receives a written letter from the Department of Transportation certifying
774 the amounts of funds available under Subsection (4)(a).
775 [(4)] (5) The executive director may use fund monies, as prioritized by the
776 Transportation Commission[: (a) for the portion of the monies generated from the revenue
777 sources described in Subsections (2)(a) and (b)], only for new construction, major renovations,
778 and improvements to Interstate 15 and state highways within a county of the first class and to
779 pay any debt service and bond issuance costs related to those projects[; and].
780 [(b) for the portion of the monies generated from the revenue sources described in
781 Subsection (2)(c), only for state highway corridor preservation for new state highway projects
782 within a county of the first class, to pay any debt service and bond issuance costs related to
783 those projects, and shall not supplant monies already designated for state projects.]
784 [(5)] (6) The additional administrative costs of the department to administer this fund
785 shall be paid from the monies in the fund.
786 Section 10. Section 72-2-125 is enacted to read:
787 72-2-125. Mountain View Corridor Fund.
788 (1) As used in this section, "Mountain View Corridor" means the land area of Salt Lake
789 County running from Interstate 80 south between SR-154 and SR-111 to 12600 South and then
790 south and southeasterly to the northern portion of Utah County west of SR-15.
791 (2) There is created a special revenue fund within the Transportation Fund entitled the
792 Mountain View Corridor Fund.
793 (3) The fund consists of monies generated from the following sources:
794 (a) any voluntary contributions received for the maintenance, construction,
795 reconstruction, or renovation of a state highway within the Mountain View Corridor;
796 (b) appropriations made to the fund by the Legislature;
797 (c) a local option transportation corridor preservation fee imposed in a county of the
798 first class under Section 41-1a-1222 ;
799 (d) a portion of the Public Transit Tax imposed in a county of the first class under
800 Section 59-12-502 ; and

801 (e) a portion of the County Option Sales and Use Tax for Transportation tax revenue
802 imposed in a county of the first class that is designated for corridor preservation under Section
803 59-12-1703 .
804 (4) (a) The fund shall earn interest.
805 (b) All interest earned on fund monies shall be deposited into the fund.
806 (5) The executive director may use fund monies only to pay for:
807 (a) the acquisition of real property within the Mountain View Corridor;
808 (b) a highway construction project within the Mountain View Corridor; and
809 (c) any debt service and bond issuance costs related to that project.
810 (6) The revenues described in Subsections (3)(c), (d), and (e) that are deposited in the
811 fund:
812 (a) shall be used on the portion of the project described in Subsection (5) that is located
813 in a county of the first class; and
814 (b) are considered a local matching contribution for the purposes described under
815 Section 72-2-123 .
816 Section 11. Effective date.
817 This bill takes effect on July 1, 2007.