1     
CLASS B AND CLASS C ROAD FUND AMENDMENTS

2     
2016 FOURTH SPECIAL SESSION

3     
STATE OF UTAH

4     
Chief Sponsor: Johnny Anderson

5     
Senate Sponsor: Wayne A. Harper

6     

7     LONG TITLE
8     General Description:
9          This bill modifies provisions relating to funding for class B and class C roads.
10     Highlighted Provisions:
11          This bill:
12          ▸     amends the apportionment formula for funds available for use on class B and class
13     C roads; and
14          ▸     makes technical changes.
15     Money Appropriated in this Bill:
16          This bill appropriates in fiscal year 2017:
17          ▸     to Transportation - B and C Roads Additional Support, as a one-time appropriation:
18               •     from the General Fund, $3,000,000; and
19               •     from the Transportation Fund, $2,000,000; and
20          ▸     to Transportation - B and C Roads, as a one-time appropriation:
21               •     from the Transportation Fund, $5,678,000.
22     Other Special Clauses:
23          This bill provides a special effective date.
24          This bill provides retrospective operation.
25     Utah Code Sections Affected:
26     AMENDS:
27          63I-2-272, as renumbered and amended by Laws of Utah 2008, Chapter 382
28          72-2-108, as last amended by Laws of Utah 2016, Chapter 1
29     


30     Be it enacted by the Legislature of the state of Utah:
31          Section 1. Section 63I-2-272 is amended to read:
32          63I-2-272. Repeal dates -- Title 72.
33          (1) On July 1, 2018:
34          (a) in Subsection 72-2-108(2), the language that states "and except as provided in
35     Subsection (10)" is repealed;
36          (b) in Subsection 72-2-108(4)(c)(ii)(A), the language that states ", excluding any
37     amounts appropriated as additional support for class B and class C roads under Subsection
38     (10)," is repealed; and
39          (c) Subsection 72-2-108(10) is repealed.
40          (2) Section 72-3-113 is repealed January 1, 2020.
41          Section 2. Section 72-2-108 is amended to read:
42          72-2-108. Apportionment of funds available for use on class B and class C roads
43     -- Bonds.
44          (1) For purposes of this section:
45          (a) "Graveled road" means a road:
46          (i) that is:
47          (A) graded; and
48          (B) drained by transverse drainage systems to prevent serious impairment of the road
49     by surface water;
50          (ii) that has an improved surface; and
51          (iii) that has a wearing surface made of:
52          (A) gravel;
53          (B) broken stone;
54          (C) slag;
55          (D) iron ore;
56          (E) shale; or
57          (F) other material that is:

58          (I) similar to a material described in Subsection (1)(a)(iii)(A) through (E); and
59          (II) coarser than sand.
60          (b) "Paved road" includes a graveled road with a chip seal surface.
61          (c) "Road mile" means a one-mile length of road, regardless of:
62          (i) the width of the road; or
63          (ii) the number of lanes into which the road is divided.
64          (d) "Weighted mileage" means the sum of the following:
65          (i) paved road miles multiplied by five; and
66          (ii) all other road type road miles multiplied by two.
67          (2) Subject to the provisions of Subsections (3) through [(5)] (8) and except as
68     provided in Subsection (10), funds in the class B and class C roads account shall be
69     apportioned among counties and municipalities in the following manner:
70          (a) 50% in the ratio that the class B roads weighted mileage within each county and
71     class C roads weighted mileage within each municipality bear to the total class B and class C
72     roads weighted mileage within the state; and
73          (b) 50% in the ratio that the population of a county or municipality bears to the total
74     population of the state as of the last official federal census or the United States Bureau of
75     Census estimate, whichever is most recent, except that if population estimates are not available
76     from the United States Bureau of Census, population figures shall be derived from the estimate
77     from the Utah Population Estimates Committee.
78          (3) For purposes of Subsection (2)(b), "the population of a county" means:
79          (a) the population of a county outside the corporate limits of municipalities in that
80     county, if the population of the county outside the corporate limits of municipalities in that
81     county is not less than 14% of the total population of that county, including municipalities; and
82          (b) if the population of a county outside the corporate limits of municipalities in the
83     county is less than 14% of the total population:
84          (i) the aggregate percentage of the population apportioned to municipalities in that
85     county shall be reduced by an amount equal to the difference between:

86          (A) 14%; and
87          (B) the actual percentage of population outside the corporate limits of municipalities in
88     that county; and
89          (ii) the population apportioned to the county shall be 14% of the total population of
90     that county, including incorporated municipalities.
91          (4) [(a)] If an apportionment under Subsection (2) made in the current fiscal year
92     [2013-14] to a county or municipality with a population of less than 14,000 is less than 120%
93     of the amount apportioned to the county or municipality from the class B and class C roads
94     account in fiscal year 1996-97, the department shall[:(i)] reapportion the funds under
95     Subsection (2) to ensure that the county or municipality receives [an amount equal to]:
96          [(A) the amount apportioned to the county or municipality from the class B and class C
97     roads account in fiscal year 1996-97; plus]
98          [(B) the amount apportioned to the county or municipality from the class B and class C
99     roads account in fiscal year 1996-97 multiplied by the percentage increase in the class B and
100     class C roads account from fiscal year 1996-97 to the most recently completed fiscal year; and]
101          (a) subject to the requirement in Subsection (5) and for fiscal year 2016 only, an
102     amount equal to:
103          (i) the amount apportioned to the county or municipality for class B and class C roads
104     in fiscal year 2015 multiplied by 120%; plus
105          (ii) an amount equal to the amount apportioned to the county or municipality in fiscal
106     year 2015 multiplied by the percentage increase or decrease in the total funds available for
107     class B and class C roads between fiscal year 2015 and fiscal year 2016;
108          (b) for fiscal year 2017 only, an amount equal to the greater of:
109          (i) the amount apportioned to the county or municipality for class B and class C roads
110     in the current fiscal year under Subsection (2); or
111          (ii) (A) the amount apportioned to the county for class B and class C roads in fiscal
112     year 2015 multiplied by 120%; plus
113          (B) the amount calculated as described in Subsection (7); or

114          (c) for a fiscal year beginning on or after July 1, 2017, an amount equal to the greater
115     of:
116          (i) the amount apportioned to the county or municipality for class B and class C roads
117     in the current fiscal year under Subsection (2); or
118          (ii) (A) the amount apportioned to the county or municipality for class B and class C
119     roads through the apportionment formula under Subsection (2) or this Subsection (4),
120     excluding any amounts appropriated as additional support for class B and class C roads under
121     Subsection (10), in the prior fiscal year; plus
122          (B) the amount calculated as described in Subsection (7).
123          (5) For the purposes of calculating a final distribution of money collected in fiscal year
124     2016, the department shall subtract the payments previously made to a county or municipality
125     for money collected in fiscal year 2016 for class B and class C roads from the fiscal year 2016
126     total calculated in Subsection (4)(a).
127          [(ii)] (6) (a) The department shall decrease proportionately as provided in Subsection
128     [(4)] (6)(b) the apportionments to counties and municipalities for which the reapportionment
129     under Subsection (4)(a)[(i)], (b)(ii), or (c)(ii) does not apply.
130          (b) The aggregate amount of the funds that the department shall decrease
131     proportionately from the apportionments under Subsection [(4)] (6)(a)[(ii)] is an amount equal
132     to the aggregate amount reapportioned to counties and municipalities under Subsection
133     (4)(a)[(i)], (b)(ii), or (c)(ii).
134          [(5)] (7) (a) In addition to the apportionment adjustments made under Subsection (4), a
135     county or municipality that qualifies for reapportioned money under Subsection
136     (4)[(a)(i)](b)(ii) or (c)(ii) shall receive [the percentage change in the class B and class C roads
137     account compounded annually beginning in fiscal year 2006-07.] an amount equal to the
138     amount apportioned to the county or municipality under Subsection (4)(b)(ii) or (c)(ii) for class
139     B and class C roads in the prior fiscal year multiplied by the percentage increase or decrease in
140     the total funds available for class B and class C roads between the prior fiscal year and the
141     fiscal year that immediately preceded the prior fiscal year.

142          (b) The adjustment under Subsection [(5)] (7)(a) shall be made in the same way as
143     provided in [Subsection (4)(a)(ii)] Subsections (6)(a) and (b).
144          (8) (a) If a county or municipality does not qualify for a reapportionment under
145     Subsection (4)(c) in the current fiscal year but previously qualified for a reapportionment under
146     Subsection (4)(c) on or after July 1, 2017, the county or municipality shall receive an amount
147     equal to the greater of:
148          (i) the amount apportioned to the county or municipality for class B and class C roads
149     in the current fiscal year under Subsection (2); or
150          (ii) the amount apportioned to the county or municipality for class B and class C roads
151     in the prior fiscal year.
152          (b) The adjustment under Subsection (8)(a) shall be made in the same way as provided
153     in Subsections (6)(a) and (b).
154          [(6)] (9) The governing body of any municipality or county may issue bonds
155     redeemable up to a period of 10 years under Title 11, Chapter 14, Local Government Bonding
156     Act, to pay the costs of constructing, repairing, and maintaining class B or class C roads and
157     may pledge class B or class C road funds received pursuant to this section to pay principal,
158     interest, premiums, and reserves for the bonds.
159          (10) (a) For fiscal year 2017 only, the department shall distribute $5,000,000 of the
160     funds appropriated for additional support for class B and class C roads among the counties and
161     municipalities that qualified for reapportioned funds under Subsection (4) before May 1, 2016.
162          (b) The department shall distribute an amount to each county or municipality described
163     in Subsection (10)(a) considering the projected amount of revenue that each county or
164     municipality would have received under the reapportionment formula in effect before May 1,
165     2016.
166          (c) The department may consult with local government entities to determine the
167     distribution amounts under Subsection (10)(b).
168          (d) Before making the distributions required under this section, the department shall
169     report to the Executive Appropriations Committee of the Legislature by no later than December

170     31, 2016, the amount of funds the department will distribute to each county or municipality that
171     qualifies for a distribution under this Subsection (10).
172          (e) The Executive Appropriations Committee of the Legislature shall review and
173     comment on the amount of funds proposed to be distributed to each county or municipality that
174     qualifies for a distribution under this Subsection (10).
175          Section 3. Appropriation.
176          The following sums of money are appropriated for the fiscal year beginning July 1,
177     2016, and ending June 30, 2017. These are additions to amounts previously appropriated for
178     fiscal year 2017. Under the terms and conditions of Title 63J, Chapter 1, Budgetary Procedures
179     Act, the Legislature appropriates the following sums of money from the funds or accounts
180     indicated for the use and support of the government of the state of Utah.
181     ITEM 1
182          To Transportation - B and C Roads Additional Support
183               From General Fund, One-time
$3,000,000

184               From Transportation Fund, One-time          
$2,000,000

185                    Schedule of Programs:
186                    B and C Roads Additional Support          $5,000,000
187     ITEM 2
188          To Transportation - B and C Roads
189               From Transportation Fund, One-time          
$5,678,000

190                    Schedule of Programs:
191                    B and C Roads                    $5,678,000
192          The Legislature intends that the $2,000,000 appropriation in ITEM 1 and the
193     $5,678,000 appropriation in ITEM 2 represent the portion of the fiscal year 2016
194     Transportation Fund revenue surplus apportioned for class B and class C roads under the
195     formula described in Subsection 72-2-107(1).
196          Section 4. Effective date.
197          If approved by two-thirds of all the members elected to each house, this bill takes effect

198     upon approval by the governor, or the day following the constitutional time limit of Utah
199     Constitution, Article VII, Section 8, without the governor's signature, or in the case of a veto,
200     the date of veto override.
201          Section 5. Retrospective operation.
202          The amendments to Section 72-2-108 in this bill have retrospective operation to May 1,
203     2016.