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Fourth Substitute H.B. 158

Senator Wayne L. Niederhauser proposes the following substitute bill:


             1     
AMENDMENTS TO TRANSPORTATION

             2     
PROVISIONS

             3     
2007 GENERAL SESSION

             4     
STATE OF UTAH

             5     
Chief Sponsor: Wayne A. Harper

             6     
Senate Sponsor: Howard A. Stephenson

             7     
             8      LONG TITLE
             9      General Description:
             10          This bill amends provisions relating to transportation.
             11      Highlighted Provisions:
             12          This bill:
             13          .    provides definitions;
             14          .    renames the Public Transportation System Tax Highway Fund as the County of the
             15      First Class State Highway Projects Fund and requires fund monies to be used to pay
             16      debt service and bond issuance costs for certain general obligation bonds;
             17          .    provides that the following shall be deposited in the County of the First Class State
             18      Highway Projects Fund:
             19              .    a portion of the local corridor preservation fee imposed in a county of the first
             20      class; and
             21              .    a portion of the Public Transit Tax revenue in a county of the first class;
             22          .    authorizes issuance of $100,000,000 general obligation bonds to pay all or part of
             23      the cost of acquiring rights-of-way and constructing a highway construction project
             24      within the Mountain View Corridor;
             25          .    exempts the general obligation bonds from certain debt limitation provisions;


             26          .    authorizes the Department of Transportation to spend revenues deposited in the
             27      Transportation Corridor Preservation Revolving Loan Fund on administrative costs
             28      for transportation corridor preservation;
             29          .    restricts the use of the Local Transportation Corridor Preservation Fund revenue to
             30      preserve highway corridors that are rights-of-way for certain highways;
             31          .    provides that local revenues from a county of the first class that are deposited in the
             32      County of the First Class State Highway Projects shall be considered a local
             33      matching contribution; and
             34          .    makes technical changes.
             35      Monies Appropriated in this Bill:
             36          None
             37      Other Special Clauses:
             38          This bill takes effect on July 1, 2007.
             39      Utah Code Sections Affected:
             40      AMENDS:
             41          41-1a-1222, as enacted by Chapter 284, Laws of Utah 2005
             42          59-12-502, as last amended by Chapters 253 and 329, Laws of Utah 2006
             43          59-12-1703, as enacted by Chapter 1, Laws of Utah 2006, Fourth Special Session
             44          63-38c-402, as last amended by Chapters 308 and 318, Laws of Utah 2004
             45          72-2-117, as last amended by Chapter 284, Laws of Utah 2005
             46          72-2-117.5, as last amended by Chapter 1, Laws of Utah 2006, Fourth Special Session
             47          72-2-121, as last amended by Chapter 1, Laws of Utah 2006, Fourth Special Session
             48      ENACTS:
             49          63B-16-101, Utah Code Annotated 1953
             50     
             51      Be it enacted by the Legislature of the state of Utah:
             52          Section 1. Section 41-1a-1222 is amended to read:
             53           41-1a-1222. Local option transportation corridor preservation fee -- Exemptions
             54      -- Deposit -- County ordinance -- Notice.
             55          (1) (a) (i) A county legislative body may impose a local option transportation corridor
             56      preservation fee of up to $10 on each motor vehicle registration within the county.


             57          (ii) A fee imposed under Subsection (1)(a)(i) shall be set in whole dollar increments.
             58          (b) If imposed under Subsection (1)(a), at the time application is made for registration
             59      or renewal of registration of a motor vehicle under this chapter, the applicant shall pay the local
             60      option transportation corridor preservation fee established by the county legislative body.
             61          (c) A motor vehicle that is exempt from the registration fee under Section 41-1a-1209
             62      or Subsection 41-1a-419 (3) is also exempt from the local option transportation corridor
             63      preservation fee required by this section.
             64          (d) A commercial motor vehicle with an apportioned registration under Section
             65      41-1a-301 is exempt from the local option transportation corridor preservation fee required by
             66      this section.
             67          (2) [The] (a) Except as provided in Subsection (2)(b), the revenue generated under this
             68      section shall be:
             69          [(a)] (i) deposited in the Local Transportation Corridor Preservation Fund created in
             70      Section 72-2-117.5 ;
             71          [(b)] (ii) credited to the county from which it is generated; and
             72          [(c)] (iii) used and distributed in accordance with Section 72-2-117.5 .
             73          (b) Seventy percent of the revenue generated by a fee imposed under this section in a
             74      county of the first class shall be:
             75          (i) deposited in the County of the First Class State Highway Projects Fund created in
             76      Section 72-2-121 ; and
             77          (ii) used in accordance with Section 72-2-121 .
             78          (3) To impose or change the amount of a fee under this section, the county legislative
             79      body shall pass an ordinance:
             80          (a) approving the fee;
             81          (b) setting the amount of the fee; and
             82          (c) providing an effective date for the fee as provided in Subsection (4).
             83          (4) (a) If a county legislative body enacts, changes, or repeals a fee under this section,
             84      the enactment, change, or repeal shall take effect on July 1 if the commission receives notice
             85      meeting the requirements of Subsection (4)(b) from the county prior to April 1.
             86          (b) The notice described in Subsection (4)(a) shall:
             87          (i) state that the county will enact, change, or repeal a fee under this part;


             88          (ii) include a copy of the ordinance imposing the fee; and
             89          (iii) if the county enacts or changes the fee under this section, state the amount of the
             90      fee.
             91          Section 2. Section 59-12-502 is amended to read:
             92           59-12-502. Additional public transit tax for expanded system and fixed guideway
             93      and interstate improvements -- Base -- Rate -- Voter approval.
             94          (1) (a) (i) In addition to other sales and use taxes, including the public transit district tax
             95      authorized by Section 59-12-501 , a county, city, or town within a transit district organized
             96      under Title 17A, Chapter 2, Part 10, Utah Public Transit District Act, may impose a sales and
             97      use tax of .25% on the transactions described in Subsection 59-12-103 (1) located within the
             98      county, city, or town, to fund a fixed guideway and expanded public transportation system.
             99          (ii) Notwithstanding Subsection (1)(a)(i), a county, city, or town may not impose a tax
             100      under this section on:
             101          (A) the sales and uses described in Section 59-12-104 to the extent the sales and uses
             102      are exempt from taxation under Section 59-12-104 ; and
             103          (B) any amounts paid or charged by a seller that collects a tax under Subsection
             104      59-12-107 (1)(b).
             105          (b) For purposes of this Subsection (1), the location of a transaction shall be
             106      determined in accordance with Section 59-12-207 .
             107          (c) (i) A county, city, or town may impose the tax under this section only if the
             108      governing body of the county, city, or town submits, by resolution, the proposal to all the
             109      qualified voters within the county, city, or town for approval at a general or special election
             110      conducted in the manner provided by statute.
             111          (ii) Notice of the election under Subsection (1)(c)(i) shall be given by the county, city,
             112      or town governing body 15 days in advance in the manner prescribed by statute.
             113          (2) If the majority of the voters voting in this election approve the proposal, it shall
             114      become effective on the date provided by the county, city, or town governing body.
             115          (3) (a) This section may not be construed to require an election in jurisdictions where
             116      voters have previously approved a public transit sales or use tax.
             117          (b) This section shall be construed to require an election to impose the sales and use
             118      tax authorized by this section, including jurisdictions where the voters have previously


             119      approved the sales and use tax authorized by Section 59-12-501 , but this section may not be
             120      construed to affect the sales and use tax authorized by Section 59-12-501 .
             121          (4) No public funds shall be spent to promote the required election.
             122          (5) (a) Notwithstanding the designated use of revenues in Subsection (1), of the
             123      revenues generated by the tax imposed under this section by any county of the first class:
             124          (i) 75% shall be allocated to fund a fixed guideway and expanded public transportation
             125      system; and
             126          (ii) [except as provided in Subsection (5)(b),] 25% shall be [allocated to fund new
             127      construction, major renovations, and improvements to Interstate 15 and state highways within
             128      the county and to pay any debt service and bond issuance costs related to those projects]
             129      deposited into the County of the First Class State Highway Projects Fund created by Section
             130      72-2-121 .
             131          [(b) Notwithstanding the designated use of revenues in Subsection (1), beginning on
             132      July 1, 2006, and ending on July 1, 2007, a county of the first class may expend an amount not
             133      to exceed $3,500,000 of the revenues described in Subsection (5)(a)(ii) for expenses relating to
             134      reconfiguring railroad curves within that county to reduce rail congestion.]
             135          [(6) A county of the first class may, through an interlocal agreement, authorize the
             136      deposit or transfer of the portion of the revenues described in Subsection (5)(a)(ii) to the Public
             137      Transportation System Tax Highway Fund created in Section 72-2-121 .]
             138          Section 3. Section 59-12-1703 is amended to read:
             139           59-12-1703. Opinion question election -- Base -- Rate -- Imposition of tax -- Use of
             140      tax revenues -- Administration, collection, and enforcement of tax by commission --
             141      Administrative fee -- Enactment or repeal of tax -- Annexation -- Notice.
             142          (1) (a) Beginning on or after April 1, 2007, and subject to the other provisions of this
             143      part, a county legislative body may impose a sales and use tax of up to .25%:
             144          (i) on the transactions:
             145          (A) described in Subsection 59-12-103 (1); and
             146          (B) within the county, including the cities and towns within the county;
             147          (ii) for the purposes described in Subsection (4); and
             148          (iii) in addition to any other sales and use tax authorized under this chapter.
             149          (b) Notwithstanding Subsection (1)(a)(i), a county legislative body may not impose a


             150      tax under this section on:
             151          (i) the sales and uses described in Section 59-12-104 to the extent the sales and uses
             152      are exempt from taxation under Section 59-12-104 ; or
             153          (ii) any amounts paid or charged by a seller that collects a tax under Subsection
             154      59-12-107 (1)(b).
             155          (c) For purposes of this Subsection (1), the location of a transaction shall be
             156      determined in accordance with Section 59-12-207 .
             157          (2) (a) Except as provided in Subsection (2)(d), before imposing a tax under this part, a
             158      county legislative body shall:
             159          (i) obtain approval from a majority of the members of the county legislative body to
             160      impose the tax; and
             161          (ii) submit an opinion question to the county's registered voters voting on the
             162      imposition of the tax so that each registered voter has the opportunity to express the registered
             163      voter's opinion on whether a tax should be imposed under this part.
             164          (b) (i) In a county of the first or second class, the opinion question required by
             165      Subsection (2)(a)(ii) shall state the following:
             166          "Shall (insert the name of the county), Utah, be authorized to impose a (insert the
             167      amount of the sales and use tax up to .25%) sales and use tax for corridor preservation,
             168      congestion mitigation, or to expand capacity for regionally significant transportation facilities?"
             169          (ii) In a county of the third, fourth, fifth, or sixth class, the opinion question required by
             170      Subsection (2)(a)(ii) shall state the following:
             171          "Shall (insert the name of the county), Utah, be authorized to impose a (insert the
             172      amount of the sales and use tax up to .25%) sales and use tax for transportation projects,
             173      corridor preservation, congestion mitigation, or to expand capacity for regionally significant
             174      transportation facilities?"
             175          (c) Except as provided in Subsection (2)(d), the election required by this Subsection (2)
             176      shall be held:
             177          (i) at a regular general election conducted in accordance with the procedures and
             178      requirements of Title 20A, Election Code, governing regular elections; or
             179          (ii) at a special election called by the county legislative body that is:
             180          (A) held only on the date of a municipal general election as provided in Subsection


             181      20A-1-202 (1); and
             182          (B) authorized in accordance with the procedures and requirements of Section
             183      20A-1-203 .
             184          (d) Notwithstanding Subsection (2)(a) or (c), if a county seeks to impose a tax under
             185      this part on or after April 1, 2007, but on or before December 31, 2007, the county legislative
             186      body shall:
             187          (i) obtain the approval required by Subsection (2)(a)(i) within five calendar days of
             188      September 20, 2006;
             189          (ii) direct the county clerk to submit the opinion question required by Subsection
             190      (2)(a)(ii) during the November 7, 2006 general election; and
             191          (iii) hold the election required by this section on November 7, 2006.
             192          (3) If a county legislative body determines that a majority of the county's registered
             193      voters voting on the imposition of the tax have voted in favor of the imposition of the tax in
             194      accordance with Subsection (2), the county legislative body shall impose the tax in accordance
             195      with this section.
             196          (4) (a) Subject to Subsections (5) and (6), the revenues generated by a tax under this
             197      part may only be expended for:
             198          (i) a project or service:
             199          (A) relating to a regionally significant transportation facility;
             200          (B) for the portion of the project or service that is performed within the county;
             201          (C) for new capacity or congestion mitigation if the project or service is performed
             202      within a county:
             203          (I) of the first class;
             204          (II) of the second class; or
             205          (III) that is part of an area metropolitan planning organization;
             206          (D) (I) if the project or service is a principal arterial highway or a minor arterial
             207      highway in a county of the first or second class, that is part of the county and municipal master
             208      plan and part of:
             209          (Aa) the statewide long-range plan; or
             210          (Bb) the regional transportation plan of the area metropolitan planning organization if a
             211      metropolitan planning organization exists for the area; or


             212          (II) if the project or service is for a fixed guideway or an airport, that is part of the
             213      regional transportation plan of the area metropolitan planning organization if a metropolitan
             214      planning organization exists for the area; and
             215          (E) that is on a priority list:
             216          (I) created by the county's council of governments in accordance with Subsection (5);
             217      and
             218          (II) approved by the county legislative body in accordance with Subsection (6);
             219          (ii) corridor preservation for a project described in Subsection (4)(a)(i) as provided in
             220      Subsection (7)(b); or
             221          (iii) any debt service and bond issuance costs related to a project described in
             222      Subsection (4)(a)(i) or (ii).
             223          (b) In a county of the first or second class, a regionally significant transportation
             224      facility project or service described in Subsection (4)(a)(i)(A) must have a funded year priority
             225      designation on a Statewide Transportation Improvement Program and Transportation
             226      Improvement Program if the project or service described in Subsection (4)(a)(i) is:
             227          (i) a principal arterial highway as defined in Section 72-4-102.5 ;
             228          (ii) a minor arterial highway as defined in Section 72-4-102.5 ; or
             229          (iii) a major collector highway:
             230          (A) as defined in Section 72-4-102.5 ; and
             231          (B) in a rural area.
             232          (c) Notwithstanding the designated use of revenues in Subsection (4)(a), of the
             233      revenues generated by the tax imposed under this section by any county of the first or second
             234      class, 25% or more shall be expended for the purpose described in Subsection (4)(a)(ii).
             235          (d) For purposes of this Subsection (4), the revenues a county will receive from a tax
             236      under this part do not include amounts retained by the commission in accordance with
             237      Subsection (8).
             238          (5) (a) The county's council of governments shall create a priority list of regionally
             239      significant transportation facility projects described in Subsection (4)(a) using the process
             240      described in Subsection (5)(b) and present the priority list to the county's legislative body for
             241      approval as described in Subsection (6).
             242          (b) Subject to Sections 59-12-1704 and 59-12-1705 , a council of governments shall


             243      establish a council of governments' endorsement process which includes prioritization and
             244      application procedures for use of the revenues a county will receive from a tax under this part.
             245          (6) (a) The council of governments shall submit the priority list described in
             246      Subsection (5) to the county's legislative body and obtain approval of the list from a majority of
             247      the members of the county legislative body.
             248          (b) A county's council of governments may only submit one priority list per calendar
             249      year.
             250          (c) A county legislative body may only consider and approve one priority list per
             251      calendar year.
             252          (7) (a) (i) Except as provided in Subsections (7)(a)(ii) and (7)(b), revenues described in
             253      Subsection (4) shall be transmitted:
             254          (A) by the commission;
             255          (B) to the county;
             256          (C) monthly; and
             257          (D) by electronic funds transfer.
             258          (ii) A county may request that the commission transfer a portion of the revenues
             259      described in Subsection (4):
             260          (A) directly to a public transit district:
             261          (I) organized under Title 17A, Chapter 2, Part 10, Utah Public Transit District Act; and
             262          (II) designated by the county; and
             263          (B) by providing written notice to the commission:
             264          (I) requesting the revenues to be transferred directly to a public transit district as
             265      provided in Subsection (7)(a)(ii)(A); and
             266          (II) designating the public transit district to which the revenues are requested to be
             267      transferred.
             268          (b) (i) Except as provided in Subsection (7)(b)(ii), revenues generated by a tax under
             269      this part that are allocated for a purpose described in Subsection (4)(a)(ii) shall be:
             270          (A) deposited in or transferred to the Local Transportation Corridor Preservation Fund
             271      created by Section 72-2-117.5 ; and
             272          (B) expended as provided in Section 72-2-117.5 .
             273          (ii) In a county of the first class, revenues generated by a tax under this part that are


             274      allocated for a purpose described in Subsection (4)(a)(ii) shall be:
             275          (A) deposited in or transferred to the [Public Transportation System Tax Highway]
             276      County of the First Class State Highway Projects Fund created by Section 72-2-121 ; and
             277          (B) expended as provided in Section 72-2-121 .
             278          (8) (a) (i) Except as provided in Subsection (8)(b), the tax authorized under this part
             279      shall be administered, collected, and enforced in accordance with:
             280          (A) the same procedures used to administer, collect, and enforce the tax under:
             281          (I) Part 1, Tax Collection; or
             282          (II) Part 2, Local Sales and Use Tax Act; and
             283          (B) Chapter 1, General Taxation Policies.
             284          (ii) A tax under this part is not subject to Subsections 59-12-205 (2) through (7).
             285          (b) (i) The commission may retain an amount of tax collected under this part of not to
             286      exceed the lesser of:
             287          (A) 1.5%; or
             288          (B) an amount equal to the cost to the commission of administering this part.
             289          (ii) Any amount the commission retains under Subsection (8)(b)(i) shall be:
             290          (A) placed in the Sales and Use Tax Administrative Fees Account; and
             291          (B) used as provided in Subsection 59-12-206 (2).
             292          (9) (a) (i) Except as provided in Subsection (9)(b) or (c), if, on or after April 1, 2007, a
             293      county enacts or repeals a tax or changes the rate of a tax under this part, the enactment, repeal,
             294      or change shall take effect:
             295          (A) on the first day of a calendar quarter; and
             296          (B) after a 90-day period beginning on the date the commission receives notice meeting
             297      the requirements of Subsection (9)(a)(ii) from the county.
             298          (ii) The notice described in Subsection (9)(a)(i)(B) shall state:
             299          (A) that the county will enact, repeal, or change the rate of a tax under this part;
             300          (B) the statutory authority for the tax described in Subsection (9)(a)(ii)(A);
             301          (C) the effective date of the tax described in Subsection (9)(a)(ii)(A); and
             302          (D) if the county enacts the tax or changes the rate of the tax described in Subsection
             303      (9)(a)(ii)(A), the rate of the tax.
             304          (b) (i) For a transaction described in Subsection (9)(b)(iii), if the billing period for the


             305      transaction begins before the effective date of the enactment of the tax or tax rate increase
             306      under Subsection (1), the enactment of a tax or a tax rate increase shall take effect on the first
             307      day of the first billing period that begins after the effective date of the enactment of the tax or
             308      the tax rate increase.
             309          (ii) For a transaction described in Subsection (9)(b)(iii), if the billing period for the
             310      transaction begins before the effective date of the repeal of the tax or the tax rate decrease
             311      imposed under Subsection (1), the repeal of a tax or a tax rate decrease shall take effect on the
             312      first day of the last billing period that began before the effective date of the repeal of the tax or
             313      the tax rate decrease.
             314          (iii) Subsections (9)(b)(i) and (ii) apply to transactions subject to a tax under:
             315          (A) Subsection 59-12-103 (1)(b);
             316          (B) Subsection 59-12-103 (1)(c);
             317          (C) Subsection 59-12-103 (1)(d);
             318          (D) Subsection 59-12-103 (1)(e);
             319          (E) Subsection 59-12-103 (1)(f);
             320          (F) Subsection 59-12-103 (1)(g);
             321          (G) Subsection 59-12-103 (1)(h);
             322          (H) Subsection 59-12-103 (1)(i);
             323          (I) Subsection 59-12-103 (1)(j); or
             324          (J) Subsection 59-12-103 (1)(k).
             325          (c) (i) If a tax due under this chapter on a catalogue sale is computed on the basis of
             326      sales and use tax rates published in the catalogue, an enactment, repeal, or change in the rate of
             327      a tax described in Subsection (9)(a)(i) takes effect:
             328          (A) on the first day of a calendar quarter; and
             329          (B) beginning 60 days after the effective date of the enactment, repeal, or change in the
             330      rate of the tax under Subsection (9)(a)(i).
             331          (ii) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act,
             332      the commission may by rule define the term "catalogue sale."
             333          (d) (i) Except as provided in Subsection (9)(e) or (f), if, for an annexation that occurs
             334      on or after April 1, 2007, the annexation will result in the enactment, repeal, or change in the
             335      rate of a tax under this part for an annexing area, the enactment, repeal, or change shall take


             336      effect:
             337          (A) on the first day of a calendar quarter; and
             338          (B) after a 90-day period beginning on the date the commission receives notice meeting
             339      the requirements of Subsection (9)(d)(ii) from the county that annexes the annexing area.
             340          (ii) The notice described in Subsection (9)(d)(i)(B) shall state:
             341          (A) that the annexation described in Subsection (9)(d)(i)(B) will result in an enactment,
             342      repeal, or change in the rate of a tax under this part for the annexing area;
             343          (B) the statutory authority for the tax described in Subsection (9)(d)(ii)(A);
             344          (C) the effective date of the tax described in Subsection (9)(d)(ii)(A); and
             345          (D) if the county enacts the tax or changes the rate of the tax described in Subsection
             346      (9)(d)(ii)(A), the rate of the tax.
             347          (e) (i) For a transaction described in Subsection (9)(e)(iii), if the billing period for the
             348      transaction begins before the effective date of the enactment of the tax or a tax rate increase
             349      under Subsection (1), the enactment of a tax or a tax rate increase shall take effect on the first
             350      day of the first billing period that begins after the effective date of the enactment of the tax or
             351      the tax rate increase.
             352          (ii) For a transaction described in Subsection (9)(e)(iii), if the billing period for the
             353      transaction begins before the effective date of the repeal of the tax or the tax rate decrease
             354      imposed under Subsection (1), the repeal of a tax or a tax rate decrease shall take effect on the
             355      first day of the last billing period that began before the effective date of the repeal of the tax or
             356      the tax rate decrease.
             357          (iii) Subsections (9)(e)(i) and (ii) apply to transactions subject to a tax under:
             358          (A) Subsection 59-12-103 (1)(b);
             359          (B) Subsection 59-12-103 (1)(c);
             360          (C) Subsection 59-12-103 (1)(d);
             361          (D) Subsection 59-12-103 (1)(e);
             362          (E) Subsection 59-12-103 (1)(f);
             363          (F) Subsection 59-12-103 (1)(g);
             364          (G) Subsection 59-12-103 (1)(h);
             365          (H) Subsection 59-12-103 (1)(i);
             366          (I) Subsection 59-12-103 (1)(j); or


             367          (J) Subsection 59-12-103 (1)(k).
             368          (f) (i) If a tax due under this chapter on a catalogue sale is computed on the basis of
             369      sales and use tax rates published in the catalogue, an enactment, repeal, or change in the rate of
             370      a tax described in Subsection (9)(d)(i) takes effect:
             371          (A) on the first day of a calendar quarter; and
             372          (B) beginning 60 days after the effective date of the enactment, repeal, or change in the
             373      rate under Subsection (9)(d)(i).
             374          (ii) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act,
             375      the commission may by rule define the term "catalogue sale."
             376          Section 4. Section 63-38c-402 is amended to read:
             377           63-38c-402. Debt limitation -- Vote requirement needed to exceed limitation --
             378      Exceptions.
             379          (1) (a) Except as provided in Subsection (1)(b), the outstanding general obligation debt
             380      of the state may not exceed 45% of the maximum allowable appropriations limit unless
             381      approved by more than a two-thirds vote of both houses of the Legislature.
             382          (b) Notwithstanding the limitation contained in Subsection (1)(a), debt issued under the
             383      authority of the following parts or sections is not subject to the debt limitation established by
             384      this section:
             385          (i) Title 63B, Chapter 6, Part 2, 1997 Highway General Obligation Bond
             386      Authorization;
             387          (ii) Title 63B, Chapter 6, Part 3, 1997 Highway Bond Anticipation Note Authorization;
             388          (iii) Title 63B, Chapter 7, Part 2, 1998 Highway General Obligation Bond
             389      Authorization;
             390          (iv) Title 63B, Chapter 7, Part 3, 1998 Highway Bond Anticipation Note
             391      Authorization;
             392          (v) Title 63B, Chapter 8, Part 2, 1999 Highway General Obligation Bond
             393      Authorization;
             394          (vi) Title 63B, Chapter 8, Part 3, 1999 Highway Bond Anticipation Note
             395      Authorization;
             396          (vii) Title 63B, Chapter 9, Part 2, 2000 Highway General Obligation Bond;
             397          (viii) Title 63B, Chapter 10, Part 1, 2001 Highway General Obligation Bond;


             398          (ix) Title 63B, Chapter 10, Part 2, 2001 Highway General Obligation Bond
             399      Anticipation Notes;
             400          (x) Title 63B, Chapter 11, Part 5, 2002 Highway General Obligation Bond for Salt
             401      Lake County;
             402          (xi) Title 63B, Chapter 11, Part 6, 2002 Highway General Obligation Bond
             403      Anticipation Notes for Salt Lake County Authorization; [and]
             404          (xii) Section 63B-13-102 [.]; and
             405          (xiii) Section 63B-16-101 .
             406          (2) This section does not apply if contractual rights will be impaired.
             407          Section 5. Section 63B-16-101 is enacted to read:
             408     
Part 1. 2007 General Bond Obligations

             409          63B-16-101. Highway bonds -- Maximum amount -- Projects authorized.
             410          (1) (a) The total amount of bonds issued under this section may not exceed
             411      $100,000,000.
             412          (b) When the Department of Transportation certifies to the commission the amount of
             413      bond proceeds that it needs to provide funding for the highway construction project described
             414      in Subsection (2) for the next fiscal year, the commission may issue and sell general obligation
             415      bonds in an amount equal to the certified amount plus costs of issuance.
             416          (2) (a) As used in this Subsection (2), "Mountain View Corridor" means the land area
             417      of Salt Lake County running from Interstate 80 south between SR-154 and SR-111 to 12600
             418      South and then south and southeasterly to the northern portion of Utah County west of SR-15.
             419          (b) Proceeds from the issuance of bonds shall be provided to the Department of
             420      Transportation to pay for the costs of acquiring rights-of-way and constructing a highway
             421      construction project within the Mountain View Corridor.
             422          (c) The Department of Transportation shall use bond proceeds to pay for the portion of
             423      the highway construction project described in Subsection (2) that is located in Salt Lake
             424      County.
             425          (d) The costs under this Subsection (2) may include the cost of acquiring land, interests
             426      in land, easements and rights-of-way, improving sites, and making all improvements necessary,
             427      incidental, or convenient to the facilities, interest estimated to accrue on these bonds during the
             428      period to be covered by construction of the projects plus a period of six months after the end of


             429      the construction period, interest estimated to accrue on any bond anticipation notes issued
             430      under the authority of this title, and all related engineering, architectural, and legal fees.
             431          (3) The commission or the state treasurer may make any statement of intent relating to
             432      a reimbursement that is necessary or desirable to comply with federal tax law.
             433          (4) The Department of Transportation may enter into agreements related to the project
             434      before the receipt of proceeds of bonds issued under this chapter.
             435          Section 6. Section 72-2-117 is amended to read:
             436           72-2-117. Transportation Corridor Preservation Revolving Loan Fund --
             437      Distribution -- Repayment -- Rulemaking.
             438          (1) There is created the Transportation Corridor Preservation Revolving Loan Fund
             439      within the Transportation Fund.
             440          (2) The fund shall be funded from the following sources:
             441          (a) motor vehicle rental tax imposed under Section 59-12-1201 ;
             442          (b) appropriations made to the fund by the Legislature;
             443          (c) contributions from other public and private sources for deposit into the fund;
             444          (d) interest earnings on cash balances;
             445          (e) all monies collected for repayments and interest on fund monies;
             446          (f) all monies collected from rents and sales of real property acquired with fund
             447      monies; and
             448          (g) proceeds from general obligation bonds, revenue bonds, or other obligations as
             449      authorized by Title 63B, Bonds.
             450          (3) All monies appropriated to the Transportation Corridor Preservation Revolving
             451      Loan Fund are nonlapsing.
             452          (4) (a) The commission shall authorize the expenditure of fund monies to allow the
             453      department to acquire real property or any interests in real property for state, county, and
             454      municipal transportation corridors subject to:
             455          (i) monies available in the fund;
             456          (ii) rules made under Subsection (7); and
             457          (iii) Subsection (9).
             458          (b) Fund monies may be used to pay interest on debts incurred in accordance with this
             459      section.


             460          (5) Administrative costs [of the Transportation Corridor Preservation Revolving Loan
             461      Fund] for transportation corridor preservation shall be paid from the fund.
             462          (6) The department:
             463          (a) may apply to the commission under this section for monies from the Transportation
             464      Corridor Preservation Revolving Loan Fund for a specified transportation corridor project,
             465      including for county and municipal projects; and
             466          (b) shall repay the fund monies authorized for the project to the fund as required under
             467      Subsection (7).
             468          (7) The commission shall:
             469          (a) administer the Transportation Corridor Preservation Revolving Loan Fund to:
             470          (i) preserve transportation corridors;
             471          (ii) promote long-term statewide transportation planning;
             472          (iii) save on acquisition costs; and
             473          (iv) promote the best interests of the state in a manner which minimizes impact on
             474      prime agricultural land;
             475          (b) prioritize fund monies based on considerations, including:
             476          (i) areas with rapidly expanding population;
             477          (ii) the willingness of local governments to complete studies and impact statements
             478      that meet department standards;
             479          (iii) the preservation of corridors by the use of local planning and zoning processes;
             480          (iv) the availability of other public and private matching funds for a project; and
             481          (v) the cost-effectiveness of the preservation projects;
             482          (c) designate high priority corridor preservation projects in cooperation with a
             483      metropolitan planning organization;
             484          (d) administer the program for the purposes provided in this section;
             485          (e) prioritize fund monies in accordance with this section; and
             486          (f) make rules in accordance with Title 63, Chapter 46a, Utah Administrative
             487      Rulemaking Act, establishing:
             488          (i) the procedures for the awarding of fund monies;
             489          (ii) the procedures for the department to apply for transportation corridor preservation
             490      monies for projects; and


             491          (iii) repayment conditions of the monies to the fund from the specified project funds.
             492          (8) (a) The proceeds from any bonds or other obligations secured by revenues of the
             493      Transportation Corridor Preservation Revolving Loan Fund shall be used for:
             494          (i) the acquisition of real property in hardship cases; and
             495          (ii) any of the purposes authorized for funds in the Transportation Corridor
             496      Preservation Revolving Loan Fund under this section.
             497          (b) The commission shall pledge the necessary part of the revenues of the
             498      Transportation Corridor Preservation Revolving Loan Fund to the payment of principal of and
             499      interest on the bonds or other obligations.
             500          (9) (a) The department may not apply for monies under this section unless the highway
             501      authority has an access management policy or ordinance in effect that meets the requirements
             502      under Subsection (9)(b).
             503          (b) The access management policy or ordinance shall:
             504          (i) be for the purpose of balancing the need for reasonable access to land uses with the
             505      need to preserve the smooth flow of traffic on the highway system in terms of safety, capacity,
             506      and speed; and
             507          (ii) include provisions:
             508          (A) limiting the number of conflict points at driveway locations;
             509          (B) separating conflict areas;
             510          (C) reducing the interference of through traffic;
             511          (D) spacing at-grade signalized intersections; and
             512          (E) providing for adequate on-site circulation and storage.
             513          (c) The department shall develop a model access management policy or ordinance that
             514      meets the requirements of this Subsection (9) for the benefit of a county or municipality under
             515      this section.
             516          (10) (a) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking
             517      Act, the commission shall make rules establishing a corridor preservation advisory council.
             518          (b) The corridor preservation advisory council shall:
             519          (i) assist with and help coordinate the corridor preservation efforts of the department
             520      and local governments;
             521          (ii) provide recommendations and priorities concerning corridor preservation and the


             522      use of fund monies to the department and to the commission; and
             523          (iii) include members designated by each metropolitan planning organization in the
             524      state to represent local governments that are involved with corridor preservation through
             525      official maps and planning.
             526          Section 7. Section 72-2-117.5 is amended to read:
             527           72-2-117.5. Local Transportation Corridor Preservation Fund -- Distribution.
             528          (1) As used in this section:
             529          (a) "Council of governments" means a decision-making body in each county composed
             530      of the county governing body and the mayors of each municipality in the county.
             531          (b) "Metropolitan planning organization" has the same meaning as defined in Section
             532      72-1-208.5 .
             533          (2) There is created the Local Transportation Corridor Preservation Fund within the
             534      Transportation Fund.
             535          (3) The fund shall be funded from the following sources:
             536          (a) a local option transportation corridor preservation fee imposed under Section
             537      41-1a-1222 ;
             538          (b) appropriations made to the fund by the Legislature;
             539          (c) contributions from other public and private sources for deposit into the fund;
             540          (d) interest earnings on cash balances;
             541          (e) all monies collected from rents and sales of real property acquired with fund
             542      monies;
             543          (f) proceeds from general obligation bonds, revenue bonds, or other obligations issued
             544      as authorized by Title 63B, Bonds; and
             545          (g) the portion of the sales and use tax described in Subsection 59-12-1703 (4)(a)(ii)
             546      and required by Subsection 59-12-1703 (7)(b)(i) to be deposited into the fund.
             547          (4) (a) All monies appropriated to the Local Transportation Corridor Preservation Fund
             548      are nonlapsing.
             549          (b) The State Tax Commission shall provide the department with sufficient data for the
             550      department to allocate the revenues:
             551          (i) provided under Subsection (3)(a) to each county imposing a local option
             552      transportation corridor preservation fee under Section 41-1a-1222 ; and


             553          (ii) provided under Subsection 59-12-1703 (4)(a)(ii) to each county imposing a county
             554      option sales and use tax for transportation.
             555          (c) The monies allocated under Subsection (4)(b):
             556          (i) shall be used for the purposes provided in this section for each county; and
             557          (ii) are allocated to each county as provided in this section:
             558          (A) with the condition that the state will not be charged for any asset purchased with
             559      the monies allocated under Subsection (4)(b); and
             560          (B) are considered a local matching contribution for the purposes described under
             561      Section 72-2-123 if used on a state highway.
             562          (d) Administrative costs of the department to implement this section shall be paid from
             563      the fund.
             564          (5) (a) The department shall authorize the expenditure of fund monies to allow a
             565      highway authority to acquire real property or any interests in real property for state, county, and
             566      municipal transportation corridors subject to:
             567          (i) monies available in the fund to each county under Subsection (4)(b); and
             568          (ii) the provisions of this section.
             569          (b) Fund monies may be used to pay interest on debts incurred in accordance with this
             570      section.
             571          (c) (i) (A) Fund monies may be used to pay maintenance costs of properties acquired
             572      under this section but limited to a total of 5% of the purchase price of the property.
             573          (B) Any additional maintenance cost shall be paid from funds other than under this
             574      section.
             575          (C) Revenue generated by any property acquired under this section is excluded from
             576      the limitations under this Subsection (5)(c)(i).
             577          (ii) Fund monies may be used to pay direct costs of acquisition of properties acquired
             578      under this section.
             579          (d) Fund monies allocated under Subsection (4)(b) may be used by a county highway
             580      authority for countywide transportation planning if:
             581          (i) the county is not included in a metropolitan planning organization;
             582          (ii) the transportation planning is part of the county's continuing, cooperative, and
             583      comprehensive process for transportation planning, corridor preservation, right-of-way


             584      acquisition, and project programming;
             585          (iii) no more than four years allocation every 20 years to each county is used for
             586      transportation planning under this Subsection (5)(d); and
             587          (iv) the county otherwise qualifies to use the fund monies as provided under this
             588      section.
             589          (e) (i) Fund monies allocated under Subsection (4)(b) may be used by a county
             590      highway authority for transportation corridor planning that is part of the corridor elements of an
             591      ongoing work program of transportation projects.
             592          (ii) The transportation corridor planning under Subsection (5)(e)(i) shall be under the
             593      direction of:
             594          (A) the metropolitan planning organization if the county is within the boundaries of a
             595      metropolitan planning organization; or
             596          (B) the department if the county is not within the boundaries of a metropolitan
             597      planning organization.
             598          (6) (a) (i) The Local Transportation Corridor Preservation Fund shall be used to
             599      preserve transportation corridors, promote long-term statewide transportation planning, save on
             600      acquisition costs, and promote the best interests of the state in a manner which minimizes
             601      impact on prime agricultural land.
             602          (ii) The Local Transportation Corridor Preservation Fund shall only be used to preserve
             603      a highway corridor that is right-of-way:
             604          (A) in a county of the first or second class for a:
             605          (I) state highway;
             606          (II) a principal arterial highway as defined in Section 72-4-102.5 ;
             607          (III) a minor arterial highway as defined in Section 72-4-102.5 ; or
             608          (IV) a collector highway in an urban area as defined in Section 72-4-102.5 ; or
             609          (B) in a county of the third, fourth, fifth, or sixth class:
             610          (I) state highway;
             611          (II) a principal arterial highway as defined in Section 72-4-102.5 ;
             612          (III) a minor arterial highway as defined in Section 72-4-102.5 ;
             613          (IV) a major collector highway as defined in Section 72-4-102.5 ; or
             614          (V) a minor collector road as defined in Section 72-4-102.5 .


             615          [(ii)] (iii) The Local Transportation Corridor Preservation Fund may not be used for a
             616      transportation corridor that is primarily a recreational trail as defined under Section
             617      63-11a-101 .
             618          (b) (i) The department shall develop and implement a program to educate highway
             619      authorities on the objectives, application process, use, and responsibilities of the Local
             620      Transportation Corridor Preservation Fund as provided under this section to promote the most
             621      efficient and effective use of fund monies including priority use on designated high priority
             622      corridor preservation projects.
             623          (ii) The department shall develop a model transportation corridor property acquisition
             624      policy or ordinance that meets federal requirements for the benefit of a highway authority to
             625      acquire real property or any interests in real property under this section.
             626          (c) The department shall authorize the expenditure of fund monies after determining
             627      that the expenditure is being made in accordance with this section from applications that are:
             628          (i) made by a highway authority; [and]
             629          (ii) endorsed by the council of governments[.]; and
             630          (iii) for a right-of-way purchase for a highway authorized under Subsection (6)(a)(ii).
             631          (7) (a) (i) A council of governments may establish a council of governments
             632      endorsement process which includes prioritization and application procedures for use of the
             633      monies allocated to each county under this section.
             634          (ii) The endorsement process under Subsection (7)(a)(i) may include review or
             635      endorsement of the preservation project by the:
             636          (A) metropolitan planning organization if the county is within the boundaries of a
             637      metropolitan planning organization; or
             638          (B) the department if the county is not within the boundaries of a metropolitan
             639      planning organization.
             640          (b) All fund monies shall be prioritized by each highway authority and council of
             641      governments based on considerations, including:
             642          (i) areas with rapidly expanding population;
             643          (ii) the willingness of local governments to complete studies and impact statements
             644      that meet department standards;
             645          (iii) the preservation of corridors by the use of local planning and zoning processes;


             646          (iv) the availability of other public and private matching funds for a project;
             647          (v) the cost-effectiveness of the preservation projects;
             648          (vi) long and short-term maintenance costs for property acquired; and
             649          (vii) whether the transportation corridor is included as part of:
             650          (A) the county and municipal master plan; and
             651          (B) (I) the statewide long range plan; or
             652          (II) the regional transportation plan of the area metropolitan planning organization if
             653      one exists for the area.
             654          (8) (a) Unless otherwise provided by written agreement with another highway
             655      authority, the highway authority that holds the deed to the property is responsible for
             656      maintenance of the property.
             657          (b) The transfer of ownership for property acquired under this section from one
             658      highway authority to another shall include a recorded deed for the property and a written
             659      agreement between the highway authorities.
             660          (9) (a) The proceeds from any bonds or other obligations secured by revenues of the
             661      Local Transportation Corridor Preservation Fund shall be used for the purposes authorized for
             662      funds under this section.
             663          (b) The highway authority shall pledge the necessary part of the revenues of the Local
             664      Transportation Corridor Preservation Fund to the payment of principal and interest on the
             665      bonds or other obligations.
             666          (10) (a) A highway authority may not apply for monies under this section unless the
             667      highway authority has:
             668          (i) a transportation corridor property acquisition policy or ordinance in effect that
             669      meets federal requirements for the acquisition of real property or any interests in real property
             670      under this section; and
             671          (ii) an access management policy or ordinance in effect that meets the requirements
             672      under Subsection 72-2-117 (9).
             673          (b) The provisions of Subsection (10)(a)(i) do not apply if the highway authority has a
             674      written agreement with the department for the acquisition of real property or any interests in
             675      real property under this section.
             676          Section 8. Section 72-2-121 is amended to read:


             677           72-2-121. County of the First Class State Highway Projects Fund.
             678          (1) There is created a special revenue fund entitled the [Public Transportation System
             679      Tax Highway] County of the First Class State Highway Projects Fund.
             680          (2) The fund consists of monies generated from the following revenue sources:
             681          (a) any voluntary contributions received for new construction, major renovations, and
             682      improvements to [Interstate 15 and] state highways within a county of the first class;
             683          (b) the portion of the sales and use tax described in Subsection 59-12-502 (5)(a)(ii)
             684      deposited in or transferred to the fund [through an interlocal agreement]; [and]
             685          (c) the portion of the sales and use tax described in Subsection 59-12-1703 (4)(a)(ii)
             686      and required by Subsection 59-12-1703 (7)(b)(ii) to be deposited in or transferred to the fund[.];
             687      and
             688          (d) a portion of the local option transportation corridor preservation fee imposed in a
             689      county of the first class under Section 41-1a-1222 deposited in or transferred to the fund.
             690          (3) (a) The fund shall earn interest.
             691          (b) All interest earned on fund monies shall be deposited into the fund.
             692          (4) The executive director may use fund monies[, as prioritized by the Transportation
             693      Commission: (a) for the portion of the monies generated from the revenue sources described in
             694      Subsections (2)(a) and (b),] only [for]:
             695          (A) to pay debt service and bond issuance costs for bonds issued under Section
             696      63B-16-101 ; and
             697          (B) for right-of-way acquisition, new construction, major renovations, and
             698      improvements to [Interstate 15 and] state highways within a county of the first class and to pay
             699      any debt service and bond issuance costs related to those projects[; and].
             700          [(b) for the portion of the monies generated from the revenue sources described in
             701      Subsection (2)(c), only for state highway corridor preservation for new state highway projects
             702      within a county of the first class, to pay any debt service and bond issuance costs related to
             703      those projects, and shall not supplant monies already designated for state projects.]
             704          (5) The revenues described in Subsections (2)(b), (c), and (d) that are deposited in the
             705      fund and bond proceeds from bonds issued under Section 62B-16-101 are considered a local
             706      matching contribution for the purposes described under Section 72-2-123 .
             707          [(5)] (6) The additional administrative costs of the department to administer this fund


             708      shall be paid from the monies in the fund.
             709          Section 9. Effective date.
             710          This bill takes effect on July 1, 2007.


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