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First Substitute S.B. 175





Sponsor: Michael G. Waddoups

9    DATE.
10    This act affects sections of Utah Code Annotated 1953 as follows:
11    AMENDS:
12         63-65-2, as last amended by Chapter 334, Laws of Utah 1995
13    ENACTS:
14         27-18-101, Utah Code Annotated 1953
15         27-18-102, Utah Code Annotated 1953
16         27-18-103, Utah Code Annotated 1953
17         27-18-104, Utah Code Annotated 1953
18         27-18-105, Utah Code Annotated 1953
19         27-18-106, Utah Code Annotated 1953
20         27-18-107, Utah Code Annotated 1953
21    Be it enacted by the Legislature of the state of Utah:
22        Section 1. Section 27-18-101 is enacted to read:

24         27-18-101. Title.
25        This chapter shall be known as the "Transportation Infrastructure Bank Act."
26        Section 2. Section 27-18-102 is enacted to read:
27         27-18-102. Definitions.

1        As used in this chapter:
2        (1) "Fund" means the Transportation Infrastructure Bank Fund created under Section
3    27-18-103.
4        (2) "Infrastructure assistance" means any use of fund moneys, except an infrastructure
5    loan, to provide financial assistance for transportation projects, including to finance leases, fund
6    reserves, make grants, make interest buy-down grants, leases, or loans obtained by a public entity
7    to finance transportation projects.
8        (3) "Infrastructure loan" means a loan of fund monies to finance a transportation project.
9        (4) "Public entity" means a state agency, county, municipality, special district, or an
10    intergovernmental entity organized under state law.
11        (5) "Transportation project" means a project to improve the state transportation systems
12    and includes the costs of acquisition, construction, reconstruction, rehabilitation, equipping, and
13    fixturing.
14        Section 3. Section 27-18-103 is enacted to read:
15         27-18-103. Transportation Infrastructure Bank Fund -- Creation -- Use of monies.
16        (1) There is created a revolving loan fund entitled the Transportation Infrastructure Bank
17    Fund.
18        (2) The fund consists of monies generated from the following revenue sources:
19        (a) appropriations made to the fund by the Legislature;
20        (b) federal monies and grants that are deposited in the fund;
21        (c) monies transferred to the fund by the commission from other monies available to the
22    department;
23        (d) state grants that are deposited in the fund;
24        (e) contributions or grants from any other private or public sources for deposit into the
25    fund; and
26        (f) all monies collected from repayments of fund monies used for infrastructure loans or
27    infrastructure assistance.
28        (3) (a) The fund shall earn interest.
29        (b) All interest earned on fund monies shall be deposited into the fund.
30        (4) Monies in the fund shall be used by the department, as prioritized by the commission,
31    only to:

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1        (a) provide infrastructure loans or infrastructure assistance; and
2        (b) pay the department for the costs of administering the fund, providing infrastructure
3    loans or infrastructure assistance, monitoring transportation projects, and obtaining repayments
4    of infrastructure loans or infrastructure assistance.
5        (5) (a) The department may establish separate accounts in the fund for infrastructure loans,
6    infrastructure assistance, administrative and operating expenses, or any other purpose to implement
7    this part.
8        (b) In accordance with Title, 63, Chapter 46a, Utah Administrative Rulemaking Act, the
9    department may make rules governing how the fund and its accounts may be held by an escrow
10    agent.
11        (6) Fund monies shall be invested by the state treasurer as provided in Title 51, Chapter
12    7, State Money Management Act, and the earnings from the investments shall be credited to the
13    fund.
14        Section 4. Section 27-18-104 is enacted to read:
15         27-18-104. Loans and assistance -- Authority -- Rulemaking.
16        (1) Monies in the fund may be used by the department, as prioritized by the commission,
17    to make infrastructure loans or to provide infrastructure assistance to any public entity for any
18    purpose consistent with any applicable constitutional limitation.
19        (2) In accordance with Title, 63, Chapter 46a, Utah Administrative Rulemaking Act, the
20    commission shall make rules providing procedures and standards for making infrastructure loans
21    and providing infrastructure assistance.
22        Section 5. Section 27-18-105 is enacted to read:
23         27-18-105. Loan program procedures -- Repayment.
24        (1) A public entity may obtain an infrastructure loan from the department, upon approval
25    by the commission, by entering into a loan contract with the department secured by legally issued
26    bonds, notes, or other evidence of indebtedness validly issued under state law, including pledging
27    all or any portion of a revenue source to the repayment of the loan.
28        (2) The public entity shall repay the infrastructure loan in accordance with the loan
29    contract from any of the following sources:
30        (a) transportation project revenues, including special assessment revenues;
31        (b) general funds of the public entity;

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1        (c) monies withheld under Subsection (5); or
2        (d) any other legally available revenues.
3        (3) An infrastructure loan contract with a public entity may provide that a portion of the
4    proceeds of the loan may be applied to fund a reserve fund to secure the repayment of the loan.
5        (4) Before obtaining an infrastructure loan, a county or municipality shall:
6        (a) publish its intention to obtain an infrastructure loan at least once in accordance with
7    the publication of notice requirements under Section 11-14-21; and
8        (b) adopt an ordinance or resolution authorizing the infrastructure loan.
9        (5) (a) If a public entity fails to comply with the terms of its infrastructure loan contract,
10    the department may seek any legal or equitable remedy to obtain compliance or payment of
11    damages.
12        (b) If a public entity fails to make infrastructure loan payments when due, the state shall,
13    at the request of the department, withhold an amount of monies due to the public entity and deposit
14    the withheld monies in the fund to pay the amounts due under the contract.
15        (c) The department may elect when to request the withholding of monies under this
16    Subsection (5).
17        (6) All loan contracts, bonds, notes, or other evidence of indebtedness securing the loan
18    contracts shall be held, collected, and accounted for in accordance with Section 63-65-4.
19        Section 6. Section 27-18-106 is enacted to read:
20         27-18-106. Loan contracts of state agencies.
21        (1) (a) Notwithstanding Sections 53B-21-113 and 63A-1-112, a state agency may obtain
22    an infrastructure loan.
23        (b) A state agency may contract to repay an infrastructure loan from the monies which are
24    appropriated to the agency and may pledge all or any portion of those monies to repay the loan.
25        (c) A state agency's infrastructure loan may not constitute a debt of the state or lending the
26    credit of the state within the meaning of any constitutional or statutory limitation.
27        (2) The terms of an infrastructure loan contract shall bind the state and a state agency, and
28    the state agency shall unconditionally repay the loan from the monies the agency has pledged
29    under the terms of the loan contract.
30        Section 7. Section 27-18-107 is enacted to read:
31         27-18-107. Department authority to contract.

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1        The department may, upon approval of the commission:
2        (1) make all contracts, execute all instruments, and do all things necessary or convenient
3    to provide financial assistance for transportation projects in accordance with this chapter; and
4        (2) enter into and perform the contracts and agreements with entities concerning the
5    planning, construction, lease, or other acquisition, installation, or financing of transportation
6    projects.
7        Section 8. Section 63-65-2 is amended to read:
8         63-65-2. Definitions.
9        As used in this chapter:
10        (1) "Agency bonds" means any bond, note, contract, or other evidence of indebtedness
11    representing loans or grants made by authorizing agencies.
12        (2) "Authorizing agency" means the board, person, or unit with legal responsibility for
13    administering and managing revolving loan funds.
14        (3) "Revenue bonds" means any special fund revenue bonds issued by the state treasurer
15    on behalf of the state pursuant to Section 63-65-8.
16        (4) "Revolving Loan Funds" means:
17        (a) the Water Resources Conservation and Development Fund, created in Section
18    73-10-24;
19        (b) the Water Resources Construction Fund, created in Section 73-10-8;
20        (c) the Water Resources Cities Water Loan Fund, created in Section 73-10-22;
21        (d) the Clean Fuel Conversion Funds, created in Title 9, Chapter 1, Part 7, Clean Fuels
22    Conversion Program;
23        (e) the Water Development Security Account and its subaccounts created in Section
24    73-10c-5;
25        (f) the Agriculture Resource Development Fund, created in Section 4-18-6;
26        (g) the Utah Rural Rehabilitation Fund, created in Section 4-19-4;
27        (h) the Permanent Community Impact Fund, created in Section 9-4-303; [and]
28        (i) the Petroleum Storage Tank Loan Fund, created in Section 19-6-405.3; and
29        (j) the Transportation Infrastructure Bank Fund, created in Section 27-18-103.
30        Section 9. Effective date.
31        If approved by two-thirds of all the members elected to each house, this act takes effect

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1    upon approval by the governor, or the day following the constitutional time limit of Utah
2    Constitution Article VII, Section 8, without the governor's signature, or in the case of a veto, the
3    date of veto override.

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