Download Zipped Introduced WordPerfect HB0377.ZIP
[Status][Bill Documents][Fiscal Note][Bills Directory]

H.B. 377

             1     

TRANSPORTATION FUNDING MODIFICATIONS

             2     
2013 GENERAL SESSION

             3     
STATE OF UTAH

             4     
Chief Sponsor: Brad L. Dee

             5     
Senate Sponsor: J. Stuart Adams

             6     
             7      LONG TITLE
             8      General Description:
             9          This bill modifies provisions relating to transportation funding.
             10      Highlighted Provisions:
             11          This bill:
             12          .    reduces the bonding authority for certain bonds used to provide funding for projects
             13      prioritized through the Critical Highway Needs Fund;
             14          .    provides that a portion of certain bond proceeds shall be provided to the Department
             15      of Transportation to pay for, or to provide funds to, a municipality, county, or
             16      political subdivision to pay the costs of:
             17              .    right-of-way acquisition, construction, reconstruction, renovations, or
             18      improvements to certain highways;
             19              .    certain environmental impact studies; and
             20              .    certain public transit studies;
             21          .    provides that a portion of certain bond proceeds and funds available in the
             22      Transportation Investment Fund of 2005 shall be provided to the Transportation
             23      Infrastructure Loan Fund to make funds available for transportation infrastructure
             24      loans and transportation infrastructure assistance;
             25          .    repeals provisions requiring the Department of Transportation to manage the cash
             26      flow and construction timing for certain highway projects;
             27          .    provides that a portion of the revenues in the County of the First Class State


             28      Highway Projects Fund shall be transferred to the legislative body of a county of the first class
             29      to be used for certain purposes;
             30          .    provides that for fiscal year 2013-14 only, a portion of the revenues in the
             31      Transportation Investment Fund of 2005 shall be transferred to the County of the
             32      First Class State Highway Projects Fund; and
             33          .     makes technical corrections.
             34      Money Appropriated in this Bill:
             35          None
             36      Other Special Clauses:
             37          This bill takes effect on July 1, 2013.
             38      Utah Code Sections Affected:
             39      AMENDS:
             40          63B-16-101, as last amended by Laws of Utah 2008, Chapter 124
             41          63B-18-401, as last amended by Laws of Utah 2012, Chapter 400
             42          72-2-121, as last amended by Laws of Utah 2012, Chapters 131 and 400
             43          72-2-124, as last amended by Laws of Utah 2012, Chapters 207, 397, and 400
             44     
             45      Be it enacted by the Legislature of the state of Utah:
             46          Section 1. Section 63B-16-101 is amended to read:
             47           63B-16-101. Highway bonds -- Maximum amount -- Use of proceeds for highway
             48      projects.
             49          (1) (a) The total amount of bonds issued under this section may not exceed
             50      [$1,200,000,000] $1,145,000,000.
             51          (b) When the Department of Transportation certifies to the commission that the
             52      requirements of Subsection 72-2-125 (4)(e) have been met and certifies the amount of bond
             53      proceeds that it needs to provide funding for projects on the project list for the next fiscal year,
             54      the commission may issue and sell general obligation bonds in an amount equal to the certified
             55      amount plus costs of issuance.
             56          (2) (a) Proceeds from the issuance of bonds shall be provided to the Department of
             57      Transportation to pay all or part of the costs of state highway construction or reconstruction
             58      projects that are included in the project list established and prioritized in accordance with


             59      Subsection 72-2-125 (4).
             60          (b) The costs under Subsection (2)(a) may include the cost of acquiring land, interests
             61      in land, easements and rights-of-way, improving sites, and making all improvements necessary,
             62      incidental, or convenient to the facilities, interest estimated to accrue on these bonds during the
             63      period to be covered by construction of the projects plus a period of six months after the end of
             64      the construction period, interest estimated to accrue on any bond anticipation notes issued
             65      under the authority of this title, and all related engineering, architectural, and legal fees.
             66          (3) The commission or the state treasurer may make any statement of intent relating to
             67      a reimbursement that is necessary or desirable to comply with federal tax law.
             68          (4) The Department of Transportation may enter into agreements related to projects
             69      before the receipt of proceeds of bonds issued under this chapter.
             70          Section 2. Section 63B-18-401 is amended to read:
             71           63B-18-401. Highway bonds -- Maximum amount -- Use of proceeds for highway
             72      projects.
             73          (1) (a) The total amount of bonds issued under this section may not exceed
             74      $2,077,000,000.
             75          (b) [Subject to the restriction in Subsection (8) and when] When the Department of
             76      Transportation certifies to the commission that the requirements of Subsection 72-2-124 (6)
             77      have been met and certifies the amount of bond proceeds that it needs to provide funding for
             78      the projects described in Subsection (2) for the next fiscal year, the commission may issue and
             79      sell general obligation bonds in an amount equal to the certified amount plus costs of issuance.
             80          (2) Except as provided in Subsections (3) and (4), proceeds from the issuance of bonds
             81      shall be provided to the Department of Transportation to pay all or part of the costs of the
             82      following state highway construction or reconstruction projects:
             83          (a) Interstate 15 reconstruction in Utah County;
             84          (b) the Mountain View Corridor;
             85          (c) the Southern Parkway; and
             86          (d) state and federal highways prioritized by the Transportation Commission through:
             87          (i) the prioritization process for new transportation capacity projects adopted under
             88      Section 72-1-304 ; or
             89          (ii) the state highway construction program.


             90          (3) (a) [Subject to the restrictions and requirements in Subsection (8), $70,000,000 of]
             91      Except as provided in Subsection (5), the bond proceeds issued under this section shall be
             92      provided to the Department of Transportation.
             93          (b) The Department of Transportation shall use bond proceeds and the funds provided
             94      to it under Section 72-2-124 to pay for the costs of right-of-way acquisition, construction,
             95      reconstruction, renovations, or improvements to the following highways:
             96          (i) $35 million to add highway capacity on I-15 south of the Spanish Fork Main Street
             97      interchange to Payson;
             98          (ii) $28 million for improvements to Riverdale Road in Ogden;
             99          (iii) $1 million for intersection improvements on S.R. 36 at South Mountain Road;
             100          (iv) $2 million for capacity enhancements on S.R. 248 between Sidewinder Drive and
             101      Richardson Flat Road;
             102          (v) $12 million for Vineyard Connector from 800 North Geneva Road to Lake Shore
             103      Road;
             104          (vi) $7 million for 2600 South interchange modifications in Woods Cross;
             105          (vii) $9 million for reconfiguring the 1100 South interchange on I-15 in Box Elder
             106      County;
             107          (viii) $18 million for the Provo west-side connector; [and]
             108          (ix) $8 million for interchange modifications on I-15 in the Layton area[.];
             109          (x) $3,000,000 for an energy corridor study and environmental review for
             110      improvements in the Uintah Basin;
             111          (xi) $2,000,000 for highway improvements to Harrison Boulevard in Ogden City;
             112          (xii) $2,500,000 to be provided to Tooele City for roads around the Utah State
             113      University campus to create improved access to an institution of higher education;
             114          (xiii) $3,000,000 to be provided to the Office of Tourism within the Governor's Office
             115      of Economic Development for transportation infrastructure improvements associated with
             116      annual tourism events that have:
             117          (A) a significant economic development impact within the state; and
             118          (B) significant needs for congestion mitigation;
             119          (xiv) $4,500,000 to be provided to the Governor's Office of Economic Development
             120      for transportation infrastructure acquisitions and improvements that have a significant


             121      economic development impact within the state;
             122          (xv) $125,000,000 to pay all or part of the costs of state and federal highway
             123      construction or reconstruction projects prioritized by the Transportation Commission through
             124      the prioritization process for new transportation capacity projects adopted under Section
             125      72-1-304 ; and
             126          (xvi) $10,000,000 to the Transportation Fund to pay all or part of the costs of state and
             127      federal highway construction or reconstruction projects as prioritized by the Transportation
             128      Commission.
             129          [(4) (a) Subject to the restrictions and requirements in Subsection (8), $30,000,000 of
             130      the bond proceeds issued under this section shall be provided to the Department of
             131      Transportation.]
             132          [(b)] (4) (a) The Department of Transportation shall use bond proceeds and the funds
             133      under Section 72-2-121 to pay for, or to provide funds to, a municipality [or], county, or
             134      political subdivision to pay for the costs of right-of-way acquisition, construction,
             135      reconstruction, renovations, or improvements to the following highway or transit projects in
             136      Salt Lake County:
             137          (i) $4,000,000 to Taylorsville City for bus rapid transit planning on 4700 South;
             138          (ii) $3,500,000 to Taylorsville City for highway improvements to 6200 South and
             139      pedestrian crossings;
             140          [(ii) $1,250,000] (iii) $2,250,000 to Herriman City for highway improvements to the
             141      Salt Lake Community College Road;
             142          [(iii)] (iv) $5,300,000 to West Jordan City for highway improvements on 5600 West
             143      from 6200 South to 8600 South;
             144          (v) $4,000,000 to West Jordan City for highway improvements to 7800 South from
             145      1300 West to S.R. 111;
             146          [(iv) $2,300,000] (vi) $7,300,000 to Sandy City for highway improvements on Monroe
             147      Street;
             148          [(v)] (vii) $3,000,000 to Draper City for highway improvements to 13490 South from
             149      200 West to 700 West;
             150          (viii) $5,000,000 to Draper City for highway improvements to Suncrest Road;
             151          [(vi)] (ix) $1,200,000 to Murray City for highway improvements to 5900 South from


             152      State Street to 900 East;
             153          (x) $1,800,000 to Murray City for highway improvements to 1300 East;
             154          [(vii) $1,500,000] (xi) $3,000,000 to South Salt Lake City for intersection
             155      improvements on West Temple, Main Street, and State Street;
             156          [(viii)] (xii) $2,000,000 to Salt Lake County for highway improvements to 5400 South
             157      from 5600 West to Mountain View Corridor;
             158          [(ix)] (xiii) $3,000,000 to West Valley City for highway improvements to 6400 West
             159      from Parkway Boulevard to SR-201 Frontage Road;
             160          (xiv) $4,000,000 to West Valley City for highway improvements to 2400 South from
             161      4800 West to 7200 West;
             162          [(x)] (xv) $4,000,000 to Salt Lake City for highway improvements to 700 South from
             163      2800 West to 5600 West;
             164          [(xi) $1,250,000] (xvi) $2,750,000 to Riverton City for highway improvements to
             165      4570 West from 12600 South to Riverton Boulevard; [and]
             166          [(xii)] (xvii) [$1,200,000] $1,950,000 to Cottonwood Heights for improvements to
             167      Union Park Avenue from I-215 exit south to Creek Road and Wasatch Boulevard and Big
             168      Cottonwood Canyon[.];
             169          (xviii) $1,300,000 to Cottonwood Heights for highway improvements to Bengal
             170      Boulevard;
             171          (xix) $1,500,000 to Midvale City for highway improvements to 7200 South from I-15
             172      to 1000 West;
             173          (xx) $1,000,000 to Bluffdale City for an environmental impact study on Porter
             174      Rockwell Boulevard;
             175          (xxi) $2,900,000 to Utah Transit Authority for the following public transit studies:
             176          (A) a circulator study; and
             177          (B) a mountain transport study; and
             178          (xxii) $1,000,000 to South Jordan City for highway improvements to 2700 West.
             179          [(c)] (b) (i) Before providing funds to a municipality or county under this Subsection
             180      (4), the Department of Transportation shall obtain from the municipality or county:
             181          (A) a written certification signed by the county or city mayor or the mayor's designee
             182      certifying that the municipality or county will use the funds provided under this Subsection (4)


             183      solely for the projects described in Subsection (4)[(b)](a); and
             184          (B) other documents necessary to protect the state and the bondholders and to ensure
             185      that all legal requirements are met.
             186          (ii) Except as provided in Subsection (4)[(d)](c), by January 1 of each year, the
             187      municipality or county receiving funds described in this Subsection (4) shall submit to the
             188      Department of Transportation a statement of cash flow for the next fiscal year detailing the
             189      funds necessary to pay project costs for the projects described in Subsection (4)[(b)](a).
             190          (iii) [Except as provided in Subsection (4)(a), after] After receiving the statement
             191      required under Subsection (4)[(c)](b)(ii) and after July 1, the Department of Transportation
             192      shall provide funds to the municipality or county necessary to pay project costs for the next
             193      fiscal year based upon the statement of cash flow submitted by the municipality or county.
             194          (iv) Upon the financial close of each project described in Subsection (4)[(b)](a), the
             195      municipality or county receiving funds under this Subsection (4) shall submit a statement to the
             196      Department of Transportation detailing the expenditure of funds received for each project.
             197          [(d)] (c) For calendar year 2012 only:
             198          (i) the municipality or county shall submit to the Department of Transportation a
             199      statement of cash flow as provided in Subsection (4)[(c)](b)(ii) as soon as possible; and
             200          (ii) the Department of Transportation shall provide funds to the municipality or county
             201      necessary to pay project costs based upon the statement of cash flow.
             202          (5) Twenty million dollars of the bond proceeds issued under this section and funds
             203      available under Section 72-2-124 shall be provided to the Transportation Infrastructure Loan
             204      Fund created by Section 72-2-202 to make funds available for transportation infrastructure
             205      loans and transportation infrastructure assistance under Title 72, Chapter 2, Part 2,
             206      Transportation Infrastructure Loan Fund.
             207          [(5)] (6) The costs under Subsections (2), (3), and (4) may include the costs of studies
             208      necessary to make transportation infrastructure improvements, the cost of acquiring land,
             209      interests in land, easements and rights-of-way, improving sites, and making all improvements
             210      necessary, incidental, or convenient to the facilities, interest estimated to accrue on these bonds
             211      during the period to be covered by construction of the projects plus a period of six months after
             212      the end of the construction period, interest estimated to accrue on any bond anticipation notes
             213      issued under the authority of this title, and all related engineering, architectural, and legal fees.


             214          [(6)] (7) The commission or the state treasurer may make any statement of intent
             215      relating to a reimbursement that is necessary or desirable to comply with federal tax law.
             216          [(7)] (8) The Department of Transportation may enter into agreements related to the
             217      projects described in Subsections (2), (3), and (4) before the receipt of proceeds of bonds
             218      issued under this section.
             219          [(8) (a)] (9) The Department of Transportation may enter into a new or amend an
             220      existing interlocal agreement related to the projects described in Subsections (3) and (4) to
             221      establish any necessary covenants or requirements not otherwise provided for by law.
             222          [(b) For fiscal year 2012-13 only, the commission may not issue and sell general
             223      obligation bonds to pay all or part of the costs of the highway construction or reconstruction
             224      projects described in Subsections (3) and (4).]
             225          [(c) The Department of Transportation is responsible for the management of the cash
             226      flow for all the highway construction or reconstruction projects and project phases described in
             227      Subsections (3) and (4) and shall determine when those projects will be constructed based on
             228      revenues available:]
             229          [(i) from the bonds issued under this section;]
             230          [(ii) in the Transportation Investment Fund of 2005 created by Section 72-2-124 ; and]
             231          [(iii) in the County of the First Class State Highways Fund created by Section
             232      72-2-121 .]
             233          Section 3. Section 72-2-121 is amended to read:
             234           72-2-121. County of the First Class State Highway Projects Fund.
             235          (1) There is created a special revenue fund within the Transportation Fund known as
             236      the "County of the First Class State Highway Projects Fund."
             237          (2) The fund consists of money generated from the following revenue sources:
             238          (a) any voluntary contributions received for new construction, major renovations, and
             239      improvements to state highways within a county of the first class;
             240          (b) the portion of the sales and use tax described in Subsection 59-12-2214 (3)(b)
             241      deposited in or transferred to the fund;
             242          (c) the portion of the sales and use tax described in Subsection 59-12-2217 (2)(b) and
             243      required by Subsection 59-12-2217 (8)(b) to be deposited in or transferred to the fund; [and]
             244          (d) a portion of the local option highway construction and transportation corridor


             245      preservation fee imposed in a county of the first class under Section 41-1a-1222 deposited in or
             246      transferred to the fund[.]; and
             247          (e) for fiscal year 2013-14 only, the amount transferred to the fund in accordance with
             248      Subsection 72-2-124 (4)(a)(vii).
             249          (3) (a) The fund shall earn interest.
             250          (b) All interest earned on fund money shall be deposited into the fund.
             251          (4) The executive director shall use the fund money only:
             252          (a) to pay debt service and bond issuance costs for bonds issued under Sections
             253      63B-16-102 and 63B-18-402 ;
             254          (b) for right-of-way acquisition, new construction, major renovations, and
             255      improvements to state highways within a county of the first class and to pay any debt service
             256      and bond issuance costs related to those projects;
             257          (c) for fiscal year 2012-13 only, to pay for or to provide funds to a municipality or
             258      county to pay for a portion of right-of-way acquisition, construction, reconstruction,
             259      renovations, and improvements to highways described in Subsections 72-2-121.4 (7), (8), and
             260      (9);
             261          (d) to transfer to the 2010 Salt Lake County Revenue Bond Sinking Fund created by
             262      Section 72-2-121.3 the amount required in Subsection 72-2-121.3 (4)(c) minus the amounts
             263      transferred in accordance with Subsection 72-2-124 (5)(a)(iv); [and]
             264          (e) for a fiscal year beginning on or after July 1, 2013, to pay debt service and bond
             265      issuance costs for $30,000,000 of the bonds issued under Section 63B-18-401 for the projects
             266      described in Subsection 63B-18-401 (4)(b)[.]; and
             267          (f) for a fiscal year beginning on or after July 1, 2013, and after the department has
             268      verified that the amount required under Subsection 72-2-121.3 (4)(c)(i) is available in the fund,
             269      to transfer an amount equal to 30% of the revenue generated by the local option highway
             270      construction and transportation corridor preservation fee imposed under Section 41-1a-1222 in
             271      a county of the first class:
             272          (i) to the legislative body of a county of the first class; and
             273          (ii) to be used by a county of the first class for:
             274          (A) highway construction, reconstruction, or maintenance projects; or
             275          (B) the enforcement of state motor vehicle and traffic laws.


             276          (5) The revenues described in Subsections (2)(b), (c), and (d) that are deposited in the
             277      fund and bond proceeds from bonds issued under Sections 63B-16-102 and 63B-18-402 are
             278      considered a local matching contribution for the purposes described under Section 72-2-123 .
             279          (6) The additional administrative costs of the department to administer this fund shall
             280      be paid from money in the fund.
             281          (7) Notwithstanding any statutory or other restrictions on the use or expenditure of the
             282      revenue sources deposited into this fund, the Department of Transportation may use the money
             283      in this fund for any of the purposes detailed in Subsection (4).
             284          Section 4. Section 72-2-124 is amended to read:
             285           72-2-124. Transportation Investment Fund of 2005.
             286          (1) There is created a special revenue fund entitled the Transportation Investment Fund
             287      of 2005.
             288          (2) The fund consists of money generated from the following sources:
             289          (a) any voluntary contributions received for the maintenance, construction,
             290      reconstruction, or renovation of state and federal highways;
             291          (b) appropriations made to the fund by the Legislature;
             292          (c) the sales and use tax revenues deposited into the fund in accordance with Section
             293      59-12-103 ; and
             294          (d) registration fees designated under Section 41-1a-1201 .
             295          (3) (a) The fund shall earn interest.
             296          (b) All interest earned on fund money shall be deposited into the fund.
             297          (4) (a) Except as provided in Subsection (4)(b), the executive director may use fund
             298      money only to pay:
             299          (i) the costs of maintenance, construction, reconstruction, or renovation to state and
             300      federal highways prioritized by the Transportation Commission through the prioritization
             301      process for new transportation capacity projects adopted under Section 72-1-304 ;
             302          (ii) the costs of maintenance, construction, reconstruction, or renovation to the highway
             303      projects described in Subsections 63B-18-401 (2), (3), and (4);
             304          (iii) principal, interest, and issuance costs of bonds authorized by Section 63B-18-401
             305      minus the costs paid from the County of the First Class State Highway Projects Fund in
             306      accordance with Subsection 72-2-121 (4)(d); and


             307          (iv) for a fiscal year beginning on or after July 1, 2013, to transfer to the 2010 Salt
             308      Lake County Revenue Bond Sinking Fund created by Section 72-2-121.3 the amount certified
             309      by Salt Lake County in accordance with Subsection 72-2-121.3 (4)(c) as necessary to pay the
             310      debt service on $30,000,000 of the revenue bonds issued by Salt Lake County;
             311          (v) principal, interest, and issuance costs of bonds authorized by Section 63B-16-101
             312      for projects prioritized in accordance with Section 72-2-125 ; [and]
             313          (vi) all highway general obligation bonds that are intended to be paid from revenues in
             314      the Centennial Highway Fund Restricted Account created by Section 72-2-118 ; and
             315          (vii) for fiscal year 2013-14 only, to transfer up to $14,250,000 to the County of the
             316      First Class State Highway Projects Fund created in Section 72-2-121 to be used for the
             317      purposes described in Section 72-2-121 .
             318          (b) The executive director may use fund money to exchange for an equal or greater
             319      amount of federal transportation funds to be used as provided in Subsection (4)(a).
             320          (5) (a) Before bonds authorized by Section 63B-18-401 may be issued in any fiscal
             321      year, the department and the commission shall appear before the Executive Appropriations
             322      Committee of the Legislature and present the amount of bond proceeds that the department
             323      needs to provide funding for the projects identified in Subsection 63B-18-401 (2) for the next
             324      fiscal year.
             325          (b) The Executive Appropriations Committee of the Legislature shall review and
             326      comment on the amount of bond proceeds needed to fund the projects.
             327          (6) The Division of Finance shall, from money deposited into the fund, transfer the
             328      amount of funds necessary to pay principal, interest, and issuance costs of bonds authorized by
             329      Section 63B-18-401 in the current fiscal year to the appropriate debt service or sinking fund.
             330          Section 5. Effective date.
             331          This bill takes effect on July 1, 2013.




Legislative Review Note
    as of 2-26-13 3:26 PM


Office of Legislative Research and General Counsel


[Bill Documents][Bills Directory]