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First Substitute S.B. 8

Senator Sheldon L. Killpack proposes the following substitute bill:


             1     
LOCAL CORRIDOR PRESERVATION FUNDING

             2     
2005 GENERAL SESSION

             3     
STATE OF UTAH

             4     
Sponsor: Sheldon L. Killpack

             5     
             6      LONG TITLE
             7      General Description:
             8          This bill modifies the Transportation Code and Motor Vehicles Code by creating the
             9      Local Transportation Corridor Preservation Fund and establishing a revenue source and
             10      an approval process for preservation projects for certain county and municipal
             11      governments.
             12      Highlighted Provisions:
             13          This bill:
             14          .    allows a county legislative body to impose up to a $20 local option transportation
             15      corridor preservation fee on motor vehicle registrations and renewals of registration;
             16          .    requires that revenues from the fee be:
             17              .    deposited in the Local Transportation Corridor Preservation Fund; and
             18              .    allocated for each county based on the total revenue received from the fee;
             19          .    defines council of governments and metropolitan planning organizations;
             20          .    allows fund monies to be used by counties that are not within a metropolitan
             21      planning organization for countywide transportation planning with certain
             22      limitations;
             23          .    provides that monies from the fee are a grant to each county provided that the state
             24      is not charged for any asset purchased with the monies;
             25          .    provides that unless otherwise provided by written agreement, the highway


             26      authority that holds the deed to the property is responsible for maintenance of the property and
             27      that transfer of ownership of property acquired shall be done with a written agreement;
             28          .    provides that fund monies may be used to pay maintenance costs of properties
             29      acquired limited to a total of 5% of the purchase price of the property;
             30          .    requires the department to develop and implement a program to educate highway
             31      authorities on the objectives, application process, use, and responsibilities of the
             32      fund monies;
             33          .    requires the department to develop a model transportation corridor property
             34      acquisition policy or ordinance that meets federal requirements;
             35          .    requires the department to authorize the expenditure of fund monies after
             36      determining that the expenditure is being made in accordance with certain
             37      provisions from applications by a highway authority and endorsed by the council of
             38      governments;
             39          .    allows a council of governments to establish prioritization and application
             40      procedures for use of the monies allocated to each county;
             41          .    requires all fund monies to be prioritized by each highway authority and council of
             42      governments based on certain provisions;
             43          .    prohibits a highway authority from applying for fund monies unless the highway
             44      authority has:
             45              .    a transportation corridor property acquisition policy or ordinance in effect that
             46      meets federal requirements unless the highway authority has a written
             47      agreement with the department for acquisition of property; and
             48              .    an access management policy or ordinance in effect that meets certain
             49      requirements; and
             50          .    makes technical changes.
             51      Monies Appropriated in this Bill:
             52          None
             53      Other Special Clauses:
             54          This bill takes effect on January 1, 2006.
             55      Utah Code Sections Affected:
             56      AMENDS:


             57          72-2-117, as last amended by Chapter 60, Laws of Utah 2001
             58      ENACTS:
             59          41-1a-1222, Utah Code Annotated 1953
             60          72-2-117.5, Utah Code Annotated 1953
             61     
             62      Be it enacted by the Legislature of the state of Utah:
             63          Section 1. Section 41-1a-1222 is enacted to read:
             64          41-1a-1222. Local option transportation corridor preservation fee -- Exemptions
             65      -- Deposit -- County ordinance -- Notice.
             66          (1) (a) (i) A county legislative body may impose a local option transportation corridor
             67      preservation fee of up to $20 on each motor vehicle registration within the county.
             68          (ii) A fee imposed under Subsection (1)(a)(i) shall be set in whole dollar increments.
             69          (b) If imposed under Subsection (1)(a), at the time application is made for registration
             70      or renewal of registration of a motor vehicle under this chapter, the applicant shall pay the local
             71      option transportation corridor preservation fee established by the county legislative body.
             72          (c) A motor vehicle that is exempt from the registration fee under Section 41-1a-1209
             73      or Subsection 41-1a-419 (3) is also exempt from the local option transportation corridor
             74      preservation fee required by this section.
             75          (2) The revenue generated under this section shall be:
             76          (a) deposited in the Local Transportation Corridor Preservation Fund created in Section
             77      72-2-117.5 ;
             78          (b) credited to the county from which it is generated; and
             79          (c) used and distributed in accordance with Section 72-2-117.5 .
             80          (3) To impose or change the amount of a fee under this section, the county legislative
             81      body shall pass an ordinance:
             82          (a) approving the fee;
             83          (b) setting the amount of the fee; and
             84          (c) providing an effective date for the fee as provided in Subsection (4).
             85          (4) (a) If a county legislative body enacts, changes, or repeals a fee under this section,
             86      the enactment, change, or repeal shall take effect on July 1 if the commission receives notice
             87      meeting the requirements of Subsection (4)(b) from the county prior to April 1.


             88          (b) The notice described in Subsection (4)(a) shall:
             89          (i) state that the county will enact, change, or repeal a fee under this part;
             90          (ii) include a copy of the ordinance imposing the fee; and
             91          (iii) if the county enacts or changes the fee under this section, state the amount of the
             92      fee.
             93          Section 2. Section 72-2-117 is amended to read:
             94           72-2-117. Transportation Corridor Preservation Revolving Loan Fund --
             95      Distribution -- Repayment -- Rulemaking.
             96          (1) There is created the Transportation Corridor Preservation Revolving Loan Fund
             97      within the Transportation Fund.
             98          (2) The fund shall be funded from the following sources:
             99          (a) motor vehicle rental tax imposed under Section 59-12-1201 ;
             100          (b) appropriations made to the fund by the Legislature;
             101          (c) contributions from other public and private sources for deposit into the fund;
             102          (d) interest earnings on cash balances;
             103          (e) all monies collected for repayments and interest on fund monies;
             104          (f) all monies collected from rents and sales of real property acquired with fund
             105      monies; and
             106          (g) proceeds from general obligation bonds, revenue bonds, or other obligations [issued
             107      in accordance with Title 63, Chapter 9a, State Building Ownership, and] as authorized by Title
             108      63B, Bonds.
             109          (3) All monies appropriated to the Transportation Corridor Preservation Revolving
             110      Loan Fund are nonlapsing.
             111          (4) (a) The commission shall authorize the expenditure of fund monies to allow the
             112      department to acquire real property or any interests in real property for state, county, and
             113      municipal transportation corridors subject to:
             114          (i) monies available in the fund;
             115          (ii) rules made under Subsection (7); and
             116          (iii) Subsection (9).
             117          (b) Fund monies may be used to pay interest on debts incurred in accordance with this
             118      section.


             119          (5) Administrative costs of the Transportation Corridor Preservation Revolving Loan
             120      Fund shall be paid from the fund.
             121          (6) The department:
             122          (a) may apply to the commission under this section for monies from the Transportation
             123      Corridor Preservation Revolving Loan Fund for a specified transportation corridor project,
             124      including for county and municipal projects; and
             125          (b) shall repay the fund monies authorized for the project to the fund as required under
             126      Subsection (7).
             127          (7) The commission shall:
             128          (a) administer the Transportation Corridor Preservation Revolving Loan Fund to:
             129          (i) preserve transportation corridors[,];
             130          (ii) promote long-term statewide transportation planning[,];
             131          (iii) save on acquisition costs[,]; and
             132          (iv) promote the best interests of the state in a manner which minimizes impact on
             133      prime agricultural land;
             134          (b) prioritize fund monies based on considerations, including:
             135          (i) areas with rapidly expanding population;
             136          (ii) the willingness of local governments to complete studies and impact statements
             137      that meet department standards;
             138          (iii) the preservation of corridors by the use of local planning and zoning processes;
             139          (iv) the availability of other public and private matching funds for a project; and
             140          (v) the cost-effectiveness of the preservation projects; [and]
             141          (c) designate high priority corridor preservation projects in cooperation with a
             142      metropolitan planning organization;
             143          (d) administer the program for the purposes provided in this section;
             144          (e) prioritize fund monies in accordance with this section; and
             145          [(c)] (f) make rules in accordance with Title 63, Chapter 46a, Utah Administrative
             146      Rulemaking Act, establishing:
             147          (i) the procedures for the awarding of fund monies;
             148          (ii) the procedures for the department to apply for transportation corridor preservation
             149      monies for projects; and


             150          (iii) repayment conditions of the monies to the fund from the specified project funds.
             151          (8) (a) The proceeds from [the revenue] any bonds or other obligations [issued on]
             152      secured by revenues of the Transportation Corridor Preservation Revolving Loan Fund shall be
             153      used for:
             154          (i) the acquisition of real property in hardship cases; and
             155          (ii) any of the purposes authorized for funds in the Transportation Corridor
             156      Preservation Revolving Loan Fund under this section.
             157          (b) The commission shall pledge the necessary part of the revenues of the
             158      Transportation Corridor Preservation Revolving Loan Fund to the payment of principal of and
             159      interest on the [revenue] bonds or other obligations.
             160          (9) (a) The department may not apply for monies under this section [for a] unless the
             161      highway authority [that does not have] has an access management policy or ordinance in effect
             162      that meets the requirements under Subsection (9)(b).
             163          (b) The access management policy or ordinance shall:
             164          (i) be for the purpose of balancing the need for reasonable access to land uses with the
             165      need to preserve the smooth flow of traffic on the highway system in terms of safety, capacity,
             166      and speed; and
             167          (ii) include provisions:
             168          (A) limiting the number of conflict points at driveway locations;
             169          (B) separating conflict areas;
             170          (C) reducing the interference of through traffic;
             171          (D) spacing at-grade signalized intersections; and
             172          (E) providing for adequate on-site circulation and storage.
             173          (c) The department shall develop a model access management policy or ordinance that
             174      meets the requirements of this Subsection (9) for the benefit of a county or municipality under
             175      this section.
             176          (10) (a) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking
             177      Act, the commission shall make rules establishing a corridor preservation advisory council.
             178          (b) The corridor preservation advisory council shall:
             179          (i) assist with and help coordinate the corridor preservation efforts of the department
             180      and local governments;


             181          (ii) provide recommendations and priorities concerning corridor preservation and the
             182      use of fund monies to the department and to the commission; and
             183          (iii) include members designated by each metropolitan planning organization in the
             184      state to represent local governments that are involved with corridor preservation through
             185      official maps and planning.
             186          Section 3. Section 72-2-117.5 is enacted to read:
             187          72-2-117.5. Local Transportation Corridor Preservation Fund -- Distribution --
             188      Rulemaking.
             189          (1) As used in this section:
             190          (a) "council of governments" means a decision-making body in each county composed
             191      of the county governing body and the mayors of each municipality in the county; and
             192          (b) "metropolitan planning organization" has the same meaning as defined in Section
             193      72-1-208.5 .
             194          (2) There is created the Local Transportation Corridor Preservation Fund within the
             195      Transportation Fund.
             196          (3) The fund shall be funded from the following sources:
             197          (a) a local option transportation corridor preservation fee imposed under Section
             198      41-1a-1222 ;
             199          (b) appropriations made to the fund by the Legislature;
             200          (c) contributions from other public and private sources for deposit into the fund;
             201          (d) interest earnings on cash balances;
             202          (e) all monies collected from rents and sales of real property acquired with fund
             203      monies; and
             204          (f) proceeds from general obligation bonds, revenue bonds, or other obligations issued
             205      as authorized by Title 63B, Bonds.
             206          (4) (a) All monies appropriated to the Local Transportation Corridor Preservation Fund
             207      are nonlapsing.
             208          (b) The Tax Commission shall provide the department with sufficient data for the
             209      department to allocate the revenues provided under Subsection (3)(a) to each county imposing
             210      a local option transportation corridor preservation fee under Section 41-1a-1222 .
             211          (c) The monies allocated under Subsection (4)(b):


             212          (i) shall be used for the purposes provided in this section for each county; and
             213          (ii) are allocated to each county as provided in this section:
             214          (A) with the condition that the state will not be charged for any asset purchased with
             215      the monies allocated under Subsection (4)(b); and
             216          (B) are considered a local matching contribution for the purposes described under
             217      Section 72-2-123 if used on a state highway.
             218          (d) Administrative costs of the department to implement this section shall be paid from
             219      the fund.
             220          (5) (a) The department shall authorize the expenditure of fund monies to allow a
             221      highway authority to acquire real property or any interests in real property for state, county, and
             222      municipal transportation corridors subject to:
             223          (i) monies available in the fund to each county under Subsection (4)(b); and
             224          (ii) the provisions of this section.
             225          (b) Fund monies may be used to pay interest on debts incurred in accordance with this
             226      section.
             227          (c) (i) (A) Fund monies may be used to pay maintenance costs of properties acquired
             228      under this section but limited to a total of 5% of the purchase price of the property.
             229          (B) Any additional maintenance cost shall be paid from funds other than under this
             230      section.
             231          (C) Revenue generated by any property acquired under this section is excluded from
             232      the limitations under this Subsection (5)(c)(i).
             233          (ii) Fund monies may be used to pay direct costs of acquisition of properties acquired
             234      under this section.
             235          (d) Fund monies allocated under Subsection (4)(b) may be used by a county highway
             236      authority for countywide transportation planning if:
             237          (i) the county is not included in a metropolitan planning organization;
             238          (ii) the transportation planning is part of the county's continuing, cooperative, and
             239      comprehensive process for transportation planning, corridor preservation, right-of-way
             240      acquisition, and project programming;
             241          (iii) no more than four years allocation every 20 years to each county is used for
             242      transportation planning under this Subsection (5)(d); and


             243          (iv) the county otherwise qualifies to use the fund monies as provided under this
             244      section.
             245          (e) (i) Fund monies allocated under Subsection (4)(b) may be used by a county
             246      highway authority for transportation corridor planning that is part of the corridor elements of an
             247      ongoing work program of transportation projects.
             248          (ii) The transportation corridor planning under Subsection (5)(e)(i) shall be under the
             249      direction of:
             250          (A) the metropolitan planning organization if the county is within the boundaries of a
             251      metropolitan planning organization; or
             252          (B) the department if the county is not within the boundaries of a metropolitan
             253      planning organization.
             254          (6) (a) (i) The Local Transportation Corridor Preservation Fund shall be used to
             255      preserve transportation corridors, promote long-term statewide transportation planning, save on
             256      acquisition costs, and promote the best interests of the state in a manner which minimizes
             257      impact on prime agricultural land.
             258          (ii) The Local Transportation Corridor Preservation Fund may not be used for a
             259      transportation corridor that is primarily a recreational trail as defined under Section
             260      63-11a-101 .
             261          (b) (i) The department shall develop and implement a program to educate highway
             262      authorities on the objectives, application process, use, and responsibilities of the Local
             263      Transportation Corridor Preservation Fund as provided under this section to promote the most
             264      efficient and effective use of fund monies including priority use on designated high priority
             265      corridor preservation projects.
             266          (ii) The department shall develop a model transportation corridor property acquisition
             267      policy or ordinance that meets federal requirements for the benefit of a highway authority to
             268      acquire real property or any interests in real property under this section.
             269          (c) The department shall authorize the expenditure of fund monies after determining
             270      that the expenditure is being made in accordance with this section from applications that are:
             271          (i) made by a highway authority; and
             272          (ii) endorsed by the council of governments;
             273          (7) (a) (i) A council of governments may establish a council of governments


             274      endorsement process which includes prioritization and application procedures for use of the
             275      monies allocated to each county under this section.
             276          (ii) The endorsement process under Subsection (7)(a)(i) may include review or
             277      endorsement of the preservation project by the:
             278          (A) metropolitan planning organization if the county is within the boundaries of a
             279      metropolitan planning organization; or
             280          (B) the department if the county is not within the boundaries of a metropolitan
             281      planning organization.
             282          (b) All fund monies shall be prioritized by each highway authority and council of
             283      governments based on considerations, including:
             284          (i) areas with rapidly expanding population;
             285          (ii) the willingness of local governments to complete studies and impact statements
             286      that meet department standards;
             287          (iii) the preservation of corridors by the use of local planning and zoning processes;
             288          (iv) the availability of other public and private matching funds for a project;
             289          (v) the cost-effectiveness of the preservation projects;
             290          (vi) long and short-term maintenance costs for property acquired; and
             291          (viii) whether the transportation corridor is included as part of:
             292          (A) the county and municipal master plan; and
             293          (B) (I) the statewide long range plan; or
             294          (II) the regional transportation plan of the area metropolitan planning organization if
             295      one exists for the area.
             296          (8) (a) Unless otherwise provided by written agreement with another highway
             297      authority, the highway authority that holds the deed to the property is responsible for
             298      maintenance of the property.
             299          (b) The transfer of ownership for property acquired under this section from one
             300      highway authority to another shall include a written agreement between the highway
             301      authorities.
             302          (9) (a) The proceeds from any bonds or other obligations secured by revenues of the
             303      Local Transportation Corridor Preservation Fund shall be used for the purposes authorized for
             304      funds under this section.


             305          (b) The highway authority shall pledge the necessary part of the revenues of the Local
             306      Transportation Corridor Preservation Fund to the payment of principal and interest on the
             307      bonds or other obligations.
             308          (10) (a) A highway authority may not apply for monies under this section unless the
             309      highway authority has:
             310          (i) a transportation corridor property acquisition policy or ordinance in effect that
             311      meets federal requirements for the acquisition of real property or any interests in real property
             312      under this section; and
             313          (ii) an access management policy or ordinance in effect that meets the requirements
             314      under Subsection 72-2-117 (9).
             315          (b) The provisions of Subsection (10)(a)(i) do not apply if the highway authority has a
             316      written agreement with the department for the acquisition of real property or any interests in
             317      real property under this section.
             318          Section 4. Effective date.
             319          This bill takes effect on January 1, 2006.


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