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S.B. 80


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House Floor Amendments 3-1-2006 ch/sch

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Senate 3rd Reading Amendments 2-14-2006 rd/sch
This document includes Senate 3rd Reading Floor Amendments incorporated into the bill on Tue, Feb 14, 2006 at 11:47 AM by rday. --> This document includes House Floor Amendments incorporated into the bill on Wed, Mar 1, 2006 at 1:14 PM by chopkin. -->              1
    
PUBLIC-PRIVATE PARTNERSHIPS FOR

             2     
TOLLWAY FACILITIES

             3     
2006 GENERAL SESSION

             4     
STATE OF UTAH

             5     
Chief Sponsor: Sheldon L. Killpack

             6     
House Sponsor: John Dougall


             7      Cosponsor: Carlene M. Walker

             8     

             9      LONG TITLE
             10      General Description:
             11          This bill modifies the S. [ Motor Vehicles Code, ] .S Revenue and Taxation Code, Utah
             12      Procurement Code, and the Transportation Code by amending provisions relating to
             13      public-private partnerships for tollway facilities.
             14      Highlighted Provisions:
             15          This bill:
             16          .    provides definitions;
             17          .    exempts from the privilege tax the use or possession of public property as a tollway
             18      by a private entity pursuant to a tollway development agreement;
             19          .    provides a procurement procedure for soliciting tollway development agreement
             20      proposals;
             21          .    redesignates the Tollway Restricted Account within the Transportation Fund as a
             22      restricted special revenue fund;
             23          .    authorizes the Department of Transportation H. , with approval of the
             23a      Transportation Commission, .H to enter into public-private
             24      partnerships for tollway facilities;
             25          .    requires the department H. and the commission .H to make rules establishing


            
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House Floor Amendments 3-1-2006 ch/sch
25a
     minimum guidelines for tollway
             26      development agreement proposals;
             27          .    authorizes the department H. and the commission .H to accept solicited
             27a      and unsolicited proposals for



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             28
     public-private partnerships for tollway facilities;
             29          .    requires the department H. and the commission .H to make rules establishing
             29a      procedures for accepting
             30      unsolicited proposals;
             31          .    requires the department to engage outside counsel and consultants to provide the
             32      state advice on developing rules and guidelines for public-private partnerships and
             33      on evaluating the risks of a tollway development agreement proposal;
             34          .    provides that toll rates on a tollway that is the subject of a tollway development
             35      agreement shall be established in the tollway development agreement;
             36          .    requires the Transportation Commission to S. [ makes ] make .S rules setting any
             36a      increases of tolls
             37      that are greater than the increases provided in a tollway development agreement;
             38          .    requires the department to submit H. [ certain provisions ] a tollway development
             38a      agreement proposal .H or amendments or
             39      modifications to H. [ certain provisions of ] .H a tollway development agreement proposal to
             40      the Transportation Commission for approval prior to entering into the tollway
             41      development agreement;
             42          H. [ .     requires the department to report certain provisions or amendments or modifications
             43      to certain provisions of a tollway development agreement proposal to the
             44      Legislature prior to entering into the tollway development agreement;
] .H

             45          .    requires the department to report H. [ annually ] .H to the Legislature
             45a      H. [ through the first year of
             46      operation of a tollway
] .H
on the status and progress of a tollway; and
             47          .    makes technical changes.
             48      Monies Appropriated in this Bill:
             49          None
             50      Other Special Clauses:
             51          None
             52      Utah Code Sections Affected:
             53      AMENDS:
             54          59-4-101, as last amended by Chapter 182, Laws of Utah 2003
             55          72-2-120, as last amended by Chapter 245, Laws of Utah 2005
             56          72-6-118, as last amended by Chapter 245, Laws of Utah 2005
             57      ENACTS:
             58          63-56-502.5, Utah Code Annotated 1953



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             59
         72-6-201, Utah Code Annotated 1953
             60          72-6-202, Utah Code Annotated 1953
             61          72-6-203, Utah Code Annotated 1953
             62          72-6-204, Utah Code Annotated 1953
             63          72-6-205, Utah Code Annotated 1953
             64          72-6-206, Utah Code Annotated 1953
             65     

             66      Be it enacted by the Legislature of the state of Utah:
             67          Section 1. Section 59-4-101 is amended to read:
             68           59-4-101. Tax basis -- Exceptions -- Assessment and collection.
             69          (1) (a) Except as provided in Subsections (1)(b) and (c), a tax is imposed on the
             70      possession or other beneficial use enjoyed by any person of any real or personal property which
             71      for any reason is exempt from taxation, if that property is used in connection with a business
             72      conducted for profit.
             73          (b) Any interest remaining in the state in state lands after subtracting amounts paid or
             74      due in part payment of the purchase price as provided in Subsection 59-2-1103 (2)(b)(i) under a
             75      contract of sale is subject to taxation under this chapter regardless of whether the property is
             76      used in connection with a business conducted for profit.
             77          (c) The tax imposed under Subsection (1)(a) does not apply to property exempt from
             78      taxation under Section 59-2-1114 .
             79          (2) The tax imposed under this chapter is the same amount that the ad valorem property
             80      tax would be if the possessor or user were the owner of the property. The amount of any
             81      payments which are made in lieu of taxes is credited against the tax imposed on the beneficial
             82      use of property owned by the federal government.
             83          (3) A tax is not imposed under this chapter on the following:
             84          (a) the use of property which is a concession in, or relative to, the use of a public
             85      airport, park, fairground, or similar property which is available as a matter of right to the use of
             86      the general public;
             87          (b) the use or possession of property by a religious, educational, or charitable
             88      organization;
             89          (c) the use or possession of property if the revenue generated by the possessor or user



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             90
     of the property through its possession or use of the property inures only to the benefit of a
             91      religious, educational, or charitable organization and not to the benefit of any other person;
             92          (d) the possession or other beneficial use of public land occupied under the terms of an
             93      agricultural lease or permit issued by the United States or this state;
             94          (e) the use or possession of any lease, permit, or easement unless the lease, permit, or
             95      easement entitles the lessee or permittee to exclusive possession of the premises to which the
             96      lease, permit, or easement relates. Every lessee, permittee, or other holder of a right to remove
             97      or extract the mineral covered by the holder's lease, right, permit, or easement except from
             98      brines of the Great Salt Lake, is considered to be in possession of the premises,
             99      notwithstanding the fact that other parties may have a similar right to remove or extract another
             100      mineral from the same lands or estates; [or]
             101          (f) the use or possession of property by a public agency, as defined in Section
             102      11-13-103 , to the extent that the ownership interest of the public agency in that property is
             103      subject to a fee in lieu of ad valorem property tax under Section 11-13-302 [.]; or
             104          (g) the possession or beneficial use of public property as a tollway by a private entity
             105      through a tollway development agreement as defined in Section 72-6-202 .
             106          (4) A tax imposed under this chapter is assessed to the possessors or users of the
             107      property on the same forms, and collected and distributed at the same time and in the same
             108      manner, as taxes assessed owners, possessors, or other claimants of property which is subject to
             109      ad valorem property taxation. The tax is not a lien against the property, and no tax-exempt
             110      property may be attached, encumbered, sold, or otherwise affected for the collection of the tax.
             111          Section 2. Section 63-56-502.5 is enacted to read:
             112          63-56-502.5. Definitions -- Procurement of tollway development agreements.
             113          (1) As used in this section:
             114          (a) "Department" means the Department of Transportation.
             115          (b) "Tollway development agreement" has the same meaning as defined in Section
             116      72-6-202 .
             117          (2) The department H. and the Transportation Commission .H :
             117a           H. (a) may solicit a tollway development agreement proposal by following the
             117b      requirements of this section;
             118           [ (a) ] (b) .H may award a solicited tollway development agreement contract for any tollway
             119      project by following the requirements of this section; and
             120           H. [ (b) ] (c) .H shall make rules, by following the procedures and requirements of
             120a      Title 63, Chapter



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             121
     46a, Utah Administrative Rulemaking Act, establishing requirements for the procurement of
             122      tollway development agreement proposals in addition to those required by this section.
             123          (3) (a) Before entering into a tollway development agreement, the department may
             124      issue a request for qualifications to prequalify potential contractors.
             125          (b) Public notice of the request for qualifications shall be given in accordance with
             126      policy board rules.
             127          (c) The department shall require, as part of the qualifications specified in the request
             128      for qualifications, that potential contractors at least provide:
             129          (i) a demonstration of their experience with other transportation concession projects
             130      with attributes similar to the project being procured;
             131          (ii) a financial statement of the firm or consortium of firms making the proposal;
             132          (iii) a conceptual project development plan and financing plan;
             133          (iv) the legal structure of the firm or consortium of firms making the proposal;
             134          (v) the organizational structure for the project; and
             135          (vi) a statement describing why the firm or consortium of firms is best qualified for the
             136      project.
             137          (d) The request for qualifications shall identify the number of eligible competing
             138      proposers that the department will select to submit a proposal.
             139          (4) The department shall:
             140          (a) evaluate the responses received from the request for qualifications;
             141          (b) select from their number those qualified to submit proposals; and
             142          (c) invite those respondents to submit proposals based upon the department's request
             143      for proposals.
             144          (5) The department shall issue a request for proposals to those qualified respondents
             145      that may require, as appropriate for the procurement:
             146          (a) a description of the proposed project or projects;
             147          (b) a financial plan for the project, including:
             148          (i) the anticipated financial commitment of all parties;
             149          (ii) equity, debt, and other financing mechanisms;
             150          (iii) an analysis of the projected return, rate of return, or both; and
             151          (iv) the monetary benefit and other value to a government entity;



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             152
         (c) assumptions about user fees or toll rates; H. [ and ] .H
             153          (d) a project development and management plan, including:
             154          (i) the contracting structure;
             155          (ii) the plan for quality management;
             156          (iii) the proposed toll enforcement plan; and
             157          (iv) the plan for safety management H. ; and
             157a          (e) the proposal to comply with the minimum guidelines for tollway development
             157b      agreement proposals under Section 72-6-204 .H .
             158          (6) The department H. and the Transportation Commission [ shall ] .H :
             159          (a) H. shall .H evaluate the submissions received in response to the request for
             159a      proposals from the
             160      prequalified proposers;
             161          (b) H. shall .H comply with rules relating to discussion of proposals, best and
             161a      final offers, and
             162      evaluations of the proposals submitted; and
             163          (c) H. may .H after considering price and other identified factors H. and complying
             163a      with the requirements of Section 72-6-206 .H , award the contract to the
             164      responsible proposer whose proposal is most advantageous to the state.
             165          Section 3. Section 72-2-120 is amended to read:
             166           72-2-120. Tollway Restricted Special Revenue Fund -- Revenue -- Nonlapsing.
             167          (1) There is created [within the Transportation Fund a restricted account] a restricted
             168      special revenue fund known as the "Tollway [Restricted Account] Restricted Special Revenue
             169      Fund."
             170          (2) The [account] fund shall be funded from the following sources:
             171          (a) tolls collected by the department under Section 72-6-118 ;
             172          (b) funds received by the department through a tollway development agreement under
             173      Section 72-6-203 ;
             174          [(b)] (c) appropriations made to the [account] fund by the Legislature;
             175          [(c)] (d) contributions from other public and private sources for deposit into the
             176      [account] fund;
             177          [(d)] (e) interest earnings on cash balances; and
             178          [(e)] (f) all monies collected for repayments and interest on [account] fund monies.
             179          (3) All monies appropriated to the [account] fund are nonlapsing.
             180          [(4) (a) Monies shall be appropriated by the Legislature from the restricted account to
             181      the commission for tollway purposes.]
             182          (4) The Division of Finance shall create a subaccount for each tollway as defined in



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             183
     Section 72-6-118 .
             184          [(b)] (5) The commission may authorize the monies [under Subsection (4)(a)]
             185      deposited into the fund to be spent by the department to establish and operate tollways and
             186      related facilities, including design, construction, reconstruction, operation, maintenance,
             187      enforcement, impacts from tollways, and the acquisition of right-of-way.
             188          Section 4. Section 72-6-118 is amended to read:
             189           72-6-118. Definitions -- Establishment and operation of tollways -- Imposition
             190      and collection of tolls -- Amount of tolls -- Rulemaking.
             191          (1) As used in this section:
             192          (a) "High occupancy toll lane" means a high occupancy vehicle lane designated under
             193      Section 41-6a-702 that may be used by an operator of a vehicle carrying less than the number
             194      of persons specified for the high occupancy vehicle lane if the operator of the vehicle pays a
             195      toll or fee.
             196          (b) "Toll" means any tax, fee, or charge assessed for the specific use of a tollway.
             197          (c) "Toll lane" means a designated new highway or additional lane capacity that is
             198      constructed, operated, or maintained for which a toll is charged for its use.
             199          (d) (i) "Tollway" means a highway, highway lane, bridge, path, tunnel, or right-of-way
             200      designed and used as a transportation route that is constructed, operated, or maintained through
             201      the use of toll revenues.
             202          (ii) "Tollway" includes a high occupancy toll lane and a toll lane.
             203          (e) "Tollway development agreement" has the same meaning as defined in Section
             204      72-6-202 .
             205          (2) Subject to the provisions of Subsection (3), the department may:
             206          (a) establish, expand, and operate tollways and related facilities for the purpose of
             207      funding in whole or in part the acquisition of right-of-way and the design, construction,
             208      reconstruction, operation, enforcement, and maintenance of or impacts from a transportation
             209      route for use by the public;
             210          (b) enter into contracts, agreements, licenses, franchises, tollway development
             211      agreements, or other arrangements to implement this section; [and]
             212          (c) impose and collect tolls on any tollway established under this section[.]; and
             213          (d) grant exclusive or nonexclusive rights to a private entity to impose and collect tolls



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             214
     pursuant to the terms and conditions of a tollway development agreement.
             215          (3) (a) Except as provided under Subsection (3)(d), the department or other entity may
             216      not establish or operate a tollway on an existing state highway, except as approved by the
             217      commission and the Legislature.
             218          (b) Between sessions of the Legislature, a state tollway may be designated or deleted if:
             219          (i) approved by the commission in accordance with the standards made under this
             220      section; and
             221          (ii) the tollways are submitted to the Legislature in the next year for legislative
             222      approval or disapproval.
             223          (c) In conjunction with a proposal submitted under Subsection (3)(b)(ii), the
             224      department shall provide a description of the tollway project, projected traffic, the anticipated
             225      amount of tolls to be charged, and projected toll revenue.
             226          (d) If approved by the commission, the department may:
             227          (i) establish high occupancy toll lanes on existing state highways; and
             228          (ii) establish tollways on new state highways or additional capacity lanes.
             229          (4) [In] (a) Except as provided in Subsection (4)(b), in accordance with Title 63,
             230      Chapter 46a, Utah Administrative Rulemaking Act, the commission shall:
             231          (i) set the amount of any toll imposed or collected on a tollway on a state highway[.];
             232      and
             233          (ii) for tolls established under Subsection (4)(b), set:
             234          (A) an increase in a toll rate or user fee above an increase specified in a tollway
             235      development agreement; or
             236          (B) an increase in a toll rate or user fee above a maximum toll rate specified in a
             237      tollway development agreement.
             238          (b) A toll or user fee and an increase to a toll or user fee imposed or collected on a
             239      tollway on a state highway that is the subject of a tollway development agreement shall be set
             240      in the tollway development agreement.
             241          (5) (a) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act,
             242      the department shall make rules:
             243          (i) necessary to establish and operate tollways on state highways; and
             244          (ii) that establish standards and specifications for automatic tolling systems.



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             245
         (b) The rules shall:
             246          (i) include minimum criteria for having a tollway; and
             247          (ii) conform to regional and national standards for automatic tolling.
             248          (6) (a) The commission may provide funds for public or private tollway pilot projects
             249      or high occupancy toll lanes from General Fund monies appropriated by the Legislature to the
             250      commission for that purpose.
             251          (b) The commission may determine priorities and funding levels for tollways
             252      designated under this section.
             253          (7) (a) [All] Except as provided in Subsection (7)(b), all revenue generated from a
             254      tollway on a state highway shall be deposited into the Tollway Restricted [Account] Special
             255      Revenue Fund created in Section 72-2-120 and used for acquisition of right-of-way and the
             256      design, construction, reconstruction, operation, maintenance, [and] enforcement of
             257      transportation facilities, and other facilities used exclusively for the operation of a tollway
             258      facility within the corridor served by the tollway.
             259          (b) Revenue generated from a tollway that is the subject of a tollway development
             260      agreement shall be deposited into the Tollway Restricted Special Revenue Fund and used in
             261      accordance with Subsection (7)(a) unless:
             262          (i) the revenue is to a private entity through the tollway development agreement; or
             263          (ii) the revenue is identified for a different purpose under the tollway development
             264      agreement.
             265          Section 5. Section 72-6-201 is enacted to read:
             266     
Part 2. Public-Private Partnerships for Tollways Act

             267          72-6-201. Title.
             268          This part is known as the "Public-Private Partnerships for Tollways Act."
             269          Section 6. Section 72-6-202 is enacted to read:
             270          72-6-202. Definitions.
             271          As used in this part:
             272          (1) "High occupancy toll lane" has the same meaning as defined in Section 72-6-118 .
             273          (2) "Toll" has the same meaning as defined in Section 72-6-118 .
             274          (3) "Toll lane" has the same meaning as defined in Section 72-6-118 .
             275          (4) "Tollway" has the same meaning as defined in Section 72-6-118 .



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             276
         (5) (a) "Tollway development agreement" means a contractual agreement with a public
             277      or private entity that provides for any predevelopment activities, design, construction,
             278      reconstruction, financing, acquisition, maintenance, or operation of a tollway or any or all of
             279      them.
             280          (b) "Tollway development agreement" may include:
             281          (i) predevelopment agreements;
             282          (ii) franchise and concession agreements;
             283          (iii) leases;
             284          (iv) right-of-entry agreements;
             285          (v) financial participation agreements;
             286          (vi) other financing agreements;
             287          (vii) design-build agreements;
             288          (viii) operating agreements;
             289          (ix) agreements for services of independent engineers;
             290          (x) agreements for the enforcement of tolls on a tollway; or
             291          (xi) any combination of Subsections S. [ (1) ] (5) .S (b)(i) through (x).
             292          Section 7. Section 72-6-203 is enacted to read:
             293          72-6-203. Authority to enter into public-private partnership agreements for
             294      tollways.
             295          (1) Subject to the provisions of this part, the department may:
             296          (a) enter into a tollway development agreement with one or more public or private
             297      entities to permit the entity or entities to, independently or jointly with the department, study,
             298      perform predevelopment activities, design, finance, acquire, construct, reconstruct, maintain,
             299      repair, operate, extend, or expand a tollway facility;
             300          (b) enter into an agreement with other public agencies or private entities to
             301      independently or jointly provide services, or to study the feasibility of a tollway; and
             302          (c) negotiate the terms of private participation in a tollway, including:
             303          (i) methods to determine the applicable cost, profit, and revenue distribution between
             304      the private participants and the department;
             305          (ii) a reasonable method to determine toll rates or user fees, including:
             306          (A) identification of vehicle or user classifications, or both, for toll rates;



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             307
         (B) the original proposed toll rate or user fee for the tollway facility;
             308          (C) proposed toll rate or user fee increases; and
             309          (D) a maximum toll rate or user fee for the tollway facility;
             310          (iii) acceptable safety and policing standards; and
             311          (iv) other applicable professional, consulting, design, engineering, construction,
             312      operation and maintenance standards, requirements, expenses, and costs;
             313          (d) grant to a private entity through a tollway development agreement the right to
             314      impose and collect tolls or user fees under Section 72-6-118 and the right to enforce toll
             315      violations; and
             316          (e) provide to the private entity, on mutually agreed terms, services in support of the
             317      tollway development, operation, and maintenance including planning, environmental review,
             318      design, right-of-way acquisition, oversight, inspection and monitoring, maintenance, and
             319      policing.
             320          (2) The department shall engage outside consultants and counsel to:
             321          (a) provide the state with professional services, including legal and financial guidance,
             322      to develop rules and guidelines for public-private partnerships;
             323          (b) assist the department in evaluating the risks and benefits of a proposed
             324      public-private partnership; and
             325          (c) assist in the selection and terms of a tollway development agreement.
             326          (3) A tollway development agreement entered into under this section shall include:
             327          (a) a provision for the application of tolls and other operating revenues to the payment
             328      of operating and maintenance costs, indebtedness by the private entity for the tollway, reserves
             329      for reconstruction, rehabilitation, resurfacing and restoration, return on equity or investment,
             330      and sums owing the department;
             331          (b) a provision authorizing the department to purchase, under terms agreed to by the
             332      parties, the interest of a private participant in a tollway development agreement; and
             333          (c) a provision requiring that, at the termination of the tollway development agreement,
             334      the tollway project shall:
             335          (i) be in a state of proper maintenance as outlined in the agreement and determined by
             336      the department; and
             337          (ii) be returned to the department in satisfactory condition at no further cost to the



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             338
     department.
             339          (4) A tollway development agreement entered into under this section may include:
             340          (a) allocations of liability, risk, and responsibility;
             341          (b) combinations of public and private funding and financing;
             342          (c) compensation to the department for the grant of the tollway development agreement
             343      or the right to impose and collect tolls;
             344          (d) participation by the department in tollway revenue, proceeds of refinancings and
             345      proceeds of sale of the tollway or interests in the private entity;
             346          (e) extensions of time for, and exceptions to, performance by the private entity and
             347      compensation from the department to the private entity, due to stated events or circumstances;
             348          (f) requirements for performance security, including payment and performance bonds,
             349      letters of credit, security deposits, guarantees, and similar protections;
             350          (g) rights and obligations to expand the tollway, extend the tollway, add capacity
             351      improvements, add intelligent transportation systems, and otherwise upgrade the tollway during
             352      the term of the tollway development agreement;
             353          (h) alternative dispute resolution procedures;
             354          (i) limitations on liability and waivers of consequential damages;
             355          (j) lender rights and protections; and
             356          (k) other terms necessary or desirable to attract private investment and protect the
             357      department's interests.
             358          (5) (a) A tollway that is the subject of a tollway development agreement with a private
             359      entity, including the facilities acquired or constructed on the tollway, is public property and
             360      title to the tollway and facilities is vested in the state.
             361          (b) A tollway that is the subject of a tollway development agreement is part of the state
             362      highway system for purposes of identification, maintenance, enforcement of traffic laws, and
             363      other purposes.
             364          (c) The department may enter into one or more agreements that provide for:
             365          (i) the lease of rights-of-way, improvements, and all or any portion of the
             366      appurtenances over and under the tollway facility to the private entity for a term ending not
             367      later than 99 years after commencement of revenue operations, provided that the agreement
             368      provides upon termination for reversion of the leased property, together with the right to



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             369
     impose and collect tolls, to the department;
             370          (ii) the granting of easements;
             371          (iii) the issuance of franchises, licenses, or permits; or
             372          (iv) any other lawful uses to enable a private entity to construct, operate, maintain, or
             373      finance a tollway.
             374          Section 8. Section 72-6-204 is enacted to read:
             375          72-6-204. Minimum requirements for a tollway development agreement proposal.
             376          (1) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
             377      department H. and the commission .H shall make rules establishing minimum guidelines
             377a      for tollway development
             378      agreement proposals.
             379          (2) The guidelines under Subsection (1) shall require the proposal to include:
             380          (a) a map indicating the location of the tollway facility;
             381          (b) a description of the tollway facility;
             382          (c) a list of the major permits and approvals required for developing or operating
             383      improvements to the tollway facility from local, state, or federal agencies and a projected
             384      schedule for obtaining the permits and approvals;
             385          (d) a description of the types of public utility facilities, if any, that will be crossed by
             386      the tollway facility and a statement of the plans to accommodate the crossing;
             387          (e) an estimate of the design and construction costs of the tollway facility;
             388          (f) a statement setting forth the private entity's general plans for developing or
             389      operating the tollway facility, including identification of any revenue, public or private, or
             390      proposed debt or equity investment proposed by the private entity;
             391          (g) a statement of the estimated level of funding, if any, required to be provided by the
             392      state;
             393          (h) the name and addresses of the persons who may be contacted for further
             394      information concerning the tollway development agreement proposal; and
             395          (i) any other material or information that the department requires by rules made under
             396      this section.
             397          (3) The department is not required to review a tollway development agreement
             398      proposal if it determines that the proposal does not meet the guidelines established under this
             399      section.



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             400
         Section 9. Section 72-6-205 is enacted to read:
             401          72-6-205. Solicited and unsolicited tollway development agreement proposals.
             402          (1) In accordance with this section, the department may:
             403          (a) accept unsolicited tollway development agreement proposals; or
             404          (b) solicit tollway development agreement proposals for a proposed project.
             405          (2) The department shall solicit tollway development agreement proposals in
             406      accordance with Section 63-56-502.5 .
             407          (3) In accordance with Title 63, Chapter, 46a, Utah Administrative Rulemaking Act,
             408      the department H. and the commission .H shall establish rules and procedures for accepting
             408a      unsolicited proposals that
             409      require the:
             410          (a) private entity that submits the unsolicited proposal to comply with the minimum
             411      requirements for tollway development agreement proposals under Section 72-6-204 ;
             412          (b) department to issue a request for competing proposals and qualifications that
             413      includes:
             414          (i) a description of the proposed tollway development facility and the terms and
             415      conditions of a tollway development agreement;
             416          (ii) submittal requirements;
             417          (iii) the criteria to be used to evaluate the proposals;
             418          (iv) the relative weight given to the criteria; and
             419          (v) the deadline by which competing proposals must be received; and
             420          (c) department to publish a notice advertising the request for competing proposals and
             421      providing information regarding how to obtain a copy of the request.
             422          (4) (a) The department may establish a fee in accordance with Section 63-38-3.2 for
             423      reviewing unsolicited proposals and competing proposals submitted under this section.
             424          (b) The department may waive the fee under Subsection (4)(a) if it determines that it is
             425      reasonable and in the best interest of the state.
             426          Section 10. Section 72-6-206 is enacted to read:
             427          72-6-206. Commission approval and legislative review of tollway development
             428      agreement provisions.
             429          (1) Prior to the department entering into a tollway development agreement under
             430      Section 72-6-203 , the department shall H. [ :



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             431
         (a)
] .H
submit to the commission for approval the H. [ following included
             431a      in a ] .H tollway
             432      development agreement H. , including .H :
             433           H. [ (i) ] (a) .H a description of the tollway facility, including the conceptual design
             433a      of the facility
             434      and all proposed interconnections with other transportation facilities;
             435           H. [ (ii) ] (b) .H the proposed date for development, operation, or both of the
             435a      tollway facility;
             436           H. [ (iii) ] (c) .H the proposed term of the tollway development agreement;
             437           H. [ (iv) ] (d) .H the proposed method to determine toll rates or user fees, including:
             438           H. [ (A) ] (i) .H identification of vehicle or user classifications, or both, for toll rates;
             439           H. [ (B) ] (ii) .H the original proposed toll rate or user fee for the tollway facility;
             440           H. [ (C) ] (iii) .H proposed toll rate or user fee increases; and
             441           H. [ (D) ] (iv) .H a maximum toll rate or user fee for the tollway facility; and
             442           H. [ (v) ] (e) .H any proposed revenue, public or private, or proposed debt or equity
             442a      investment that
             443      will be used for the design, construction, financing, acquisition, maintenance, or operation of
             444      the tollway facility H. [ ; and
             445          (b) submit the provisions of a proposed tollway development agreement approved by
             446      the commission under Subsection (1)(a) to the Executive Appropriations Committee and the
             447      Transportation Interim Committee or another committee designated by the Legislative
             448      Management Committee for review prior to entering into the agreement
] .H
.
             449          (2) Prior to amending or modifying H. [ a provision of ] .H a tollway development
             449a      agreement
             450      H. [ specified under Subsection (1)(a) ] .H , the department shall H. [ :
             451          (a)
] .H
submit the proposed amendment or modification to the commission for
             451a      approval H. [ ;
             452      and
             453          (b) report the proposed amendment or modification approved by the commission under
             454      Subsection (2)(a) to the Executive Appropriations Committee and the Transportation Interim
             455      Committee or another committee designated by the Legislative Management Committee for
             456      review
] .H
.
             457          (3) The department shall report H. [ annually ] .H to the Executive Appropriations
             457a      Committee,
             458      Transportation Interim Committee, or another committee designated by the Legislative


            
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459
     Management Committee H. [ through the first year of operation ] on the status and progress .H
             459a      of a tollway subject to a tollway
             460      development agreement under Section 72-6-203 H. [ on the status and progress of the
             460a      tollway ] .H .



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Legislative Review Note
    as of 1-27-06 10:12 AM


Based on a limited legal review, this legislation has not been determined to have a high
probability of being held unconstitutional.

Office of Legislative Research and General Counsel


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