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S.B. 160






Sponsor: John W. Hickman

             6      This act modifies the Transportation Code to create the Aeronautics Construction Revolving
             7      Loan Fund for construction of airports. This act provides for application, approval, and
             8      repayment of loan funds and provides for rulemaking by the Transportation Commission.
             9      This act takes effect on July 1, 2002.
             10      This act affects sections of Utah Code Annotated 1953 as follows:
             11      ENACTS:
             12          72-2-122, Utah Code Annotated 1953
             13      Be it enacted by the Legislature of the state of Utah:
             14          Section 1. Section 72-2-122 is enacted to read:
             15          72-2-122. Aeronautics Construction Revolving Loan Fund -- Distribution --
             16      Repayment -- Rulemaking.
             17          (1) There is created the Aeronautics Construction Revolving Loan Fund within the
             18      Transportation Fund.
             19          (2) The fund shall include monies from the following sources:
             20          (a) appropriations made to the fund by the Legislature;
             21          (b) contributions from other public and private sources for deposit into the fund;
             22          (c) interest earnings on cash balances;
             23          (d) all monies collected for repayments and interest on fund monies; and
             24          (e) proceeds from revenue bonds or other obligations issued in accordance with Title 63,
             25      Chapter 9a, State Building Ownership Act, and Title 63B, Bonds.
             26          (3) All monies appropriated to the Aeronautics Construction Revolving Loan Fund are
             27      nonlapsing.

             28          (4) (a) The commission shall authorize the expenditure of fund monies for construction,
             29      major reconstruction, major renovation, or property acquisition of airports and airport runways for
             30      state, county, and municipal airports subject to:
             31          (i) monies available in the fund; and
             32          (ii) rules made under Subsection (7).
             33          (b) Fund monies may be used to pay interest on debts incurred in accordance with this
             34      section.
             35          (5) Administrative costs of the Aeronautics Construction Revolving Loan Fund shall be
             36      paid from the fund.
             37          (6) The Operations Division:
             38          (a) may apply to the commission under this section for monies from the Aeronautics
             39      Construction Revolving Loan Fund for a specified aeronautics project, including for county and
             40      municipal projects; and
             41          (b) shall repay the fund monies authorized for the project to the fund as required under
             42      Subsection (7).
             43          (7) The commission shall:
             44          (a) administer the Aeronautics Construction Revolving Loan Fund to promote long-term
             45      statewide aeronautics transportation;
             46          (b) prioritize fund monies based on considerations, including:
             47          (i) areas with rapidly expanding population;
             48          (ii) the willingness of local governments to:
             49          (A) complete studies and impact statements that meet department standards; and
             50          (B) preserve long-term airport operations by the use of local planning and zoning
             51      processes;
             52          (iii) the availability of other public and private matching funds for a project; and
             53          (iv) the cost-effectiveness of the projects; and
             54          (c) make rules in accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking
             55      Act, establishing:
             56          (i) the procedures for the awarding of fund monies;
             57          (ii) the procedures for the Operations Division to apply for Aeronautics Construction
             58      Revolving Loan Fund monies for projects; and

             59          (iii) repayment schedules and conditions of replacing the monies back into the fund.
             60          (8) For loans made under this section to a county or municipal airport, the Division of
             61      Finance shall:
             62          (a) collect and account for a loan made in accordance with this section; and
             63          (b) have custody of all loan documents evidencing indebtedness of the Aeronautics
             64      Construction Revolving Loan Fund, including all:
             65          (i) notes; and
             66          (ii) contracts.
             67          (9) (a) The proceeds from the revenue bonds or other obligations issued on revenues of
             68      the Aeronautics Construction Revolving Loan Fund shall be used for the purposes authorized for
             69      funds under this section.
             70          (b) The commission shall pledge the necessary part of the revenues of the Aeronautics
             71      Construction Revolving Loan Fund to the payment of principal of and interest on the revenue
             72      bonds or other obligations.
             73          Section 2. Effective date.
             74          This act takes effect on July 1, 2002.

Legislative Review Note
    as of 1-31-02 10:40 AM

A limited legal review of this legislation raises no obvious constitutional or statutory concerns.

Office of Legislative Research and General Counsel

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