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First Substitute S.B. 283

Senator Sheldon L. Killpack proposes the following substitute bill:


             1     
TRANSPORTATION FUNDING AMENDMENTS

             2     
2008 GENERAL SESSION

             3     
STATE OF UTAH

             4     
Chief Sponsor: Sheldon L. Killpack

             5     
House Sponsor: John Dougall

             6     
             7      LONG TITLE
             8      General Description:
             9          This bill amends provisions relating to the Critical Highway Needs Fund.
             10      Highlighted Provisions:
             11          This bill:
             12          .    increases the amount of bonds authorized to $1,200,000,000 for highway
             13      construction and reconstruction projects prioritized through the Critical Highway
             14      Needs Fund;
             15          .    requires the Transportation Commission to give priority consideration to projects
             16      that meet certain criteria when prioritizing projects for funds available in the
             17      Critical Highway Needs Fund;
             18          .    increases the expenditure cap for projects prioritized through the Critical Highway
             19      Needs Fund;
             20          .    clarifies that the expenditure cap for projects prioritized through the Critical
             21      Highway Needs Fund applies only to bond proceeds; and
             22          .    makes technical changes.
             23      Monies Appropriated in this Bill:
             24          None
             25      Other Special Clauses:


             26          This bill takes effect on July 1, 2008.
             27      Utah Code Sections Affected:
             28      AMENDS:
             29          63B-16-101, as enacted by Laws of Utah 2007, Chapter 206
             30          72-2-125, as enacted by Laws of Utah 2007, Chapter 206
             31     
             32      Be it enacted by the Legislature of the state of Utah:
             33          Section 1. Section 63B-16-101 is amended to read:
             34           63B-16-101. Highway bonds -- Maximum amount -- Use of proceeds for highway
             35      projects.
             36          (1) (a) The total amount of bonds issued under this section may not exceed
             37      [$1,000,000,000] $1,200,000,000.
             38          (b) When the Department of Transportation certifies to the commission that the
             39      requirements of Subsection 72-2-125 (4)(e) have been met and certifies the amount of bond
             40      proceeds that it needs to provide funding for projects on the project list for the next fiscal year,
             41      the commission may issue and sell general obligation bonds in an amount equal to the certified
             42      amount plus costs of issuance.
             43          (2) (a) Proceeds from the issuance of bonds shall be provided to the Department of
             44      Transportation to pay all or part of the costs of state highway construction or reconstruction
             45      projects that are included in the project list established and prioritized in accordance with
             46      Subsection 72-2-125 (4).
             47          (b) The costs under Subsection (2)(a) may include the cost of acquiring land, interests
             48      in land, easements and rights-of-way, improving sites, and making all improvements necessary,
             49      incidental, or convenient to the facilities, interest estimated to accrue on these bonds during the
             50      period to be covered by construction of the projects plus a period of six months after the end of
             51      the construction period, interest estimated to accrue on any bond anticipation notes issued
             52      under the authority of this title, and all related engineering, architectural, and legal fees.
             53          (3) The commission or the state treasurer may make any statement of intent relating to
             54      a reimbursement that is necessary or desirable to comply with federal tax law.
             55          (4) The Department of Transportation may enter into agreements related to projects
             56      before the receipt of proceeds of bonds issued under this chapter.


             57          Section 2. Section 72-2-125 is amended to read:
             58           72-2-125. Critical Highway Needs Fund.
             59          (1) There is created a restricted special revenue fund entitled the Critical Highway
             60      Needs Fund.
             61          (2) The fund consists of monies generated from the following sources:
             62          (a) any voluntary contributions received for the maintenance, construction,
             63      reconstruction, or renovation of state and federal highways;
             64          (b) appropriations made to the fund by the Legislature; and
             65          (c) the sales and use tax revenues deposited into the fund in accordance with
             66      Subsection 59-12-103 (10).
             67          (3) (a) The fund shall earn interest.
             68          (b) All interest earned on fund monies shall be deposited into the fund.
             69          (4) (a) The executive director shall use monies deposited into the fund to pay:
             70          (i) the costs of right-of-way acquisition, maintenance, construction, reconstruction, or
             71      renovation to state and federal highways identified by the department and prioritized by the
             72      commission in accordance with this Subsection (4); and
             73          (ii) principal, interest, and issuance costs of bonds authorized by Section 63B-16-101 .
             74          (b) (i) The department shall:
             75          (A) establish a complete list of projects to be maintained, constructed, reconstructed, or
             76      renovated using the funding described in Subsection (4)(a) based on the following criteria:
             77          (I) the highway construction project is a high priority project due to high growth in the
             78      surrounding area;
             79          (II) the highway construction project addresses critical access needs that have a high
             80      impact due to commercial and energy development;
             81          (III) the highway construction project mitigates congestion;
             82          (IV) whether local matching funds are available for the highway construction project;
             83      and
             84          (V) the highway construction project is a critical alternative route for priority Interstate
             85      15 reconstruction projects; and
             86          (B) submit the list of projects to the commission for prioritization in accordance with
             87      Subsection (4)(c).


             88          (ii) A project that is included in the list under this Subsection (4):
             89          (A) is not required to be currently listed in the statewide long-range plan; and
             90          (B) is not required to be prioritized through the prioritization process for new
             91      transportation capacity projects adopted under Section 72-1-304 .
             92          (c) (i) The commission shall prioritize the project list submitted by the department in
             93      accordance with Subsection (4)(b).
             94          (ii) For projects prioritized under this Subsection (4)(c), the commission shall give
             95      priority consideration to fully funding a project that meets the criteria under Subsection
             96      (4)(b)(i)(A)(V).
             97          (d) (i) Expenditures of bond proceeds issued in accordance with Section 63B-16-101
             98      by the department for the construction of highway projects prioritized under this Subsection (4)
             99      may not exceed [$1,000,000,000] $1,200,000,000.
             100          (ii) Monies expended from the fund for principal, interest, and issuance costs of bonds
             101      issued under Section 63B-16-101 are not considered expenditures for purposes of the
             102      [$1,000,000,000] $1,200,000,000 cap under Subsection (4)(d)(i).
             103          (e) (i) Before bonds authorized by Section 63B-16-101 may be issued in any fiscal
             104      year, the department and the commission shall appear before the Executive Appropriations
             105      Committee of the Legislature and present:
             106          (A) the commission's current list of projects established and prioritized in accordance
             107      with this Subsection (4); and
             108          (B) the amount of bond proceeds that the department needs to provide funding for
             109      projects on the project list prioritized in accordance with this Subsection (4) for the next fiscal
             110      year.
             111          (ii) The Executive Appropriations Committee of the Legislature shall review and
             112      comment on the prioritized project list and the amount of bond proceeds needed to fund the
             113      projects on the prioritized list.
             114          (f) The Division of Finance shall, from monies deposited into the fund, transfer the
             115      amount of funds necessary to pay principal, interest, and issuance costs of bonds authorized by
             116      Section 63B-16-101 in the current fiscal year to the appropriate debt service or sinking fund.
             117          (5) When the general obligation bonds authorized by Section 63B-16-101 have been
             118      paid off and the highway projects completed that are included in the prioritized project list


             119      under Subsection (4), the Division of Finance shall transfer any existing balance in the fund
             120      into the Transportation Investment Fund of 2005 created by Section 72-2-124 .
             121          (6) (a) The Division of Finance shall monitor the general obligation bonds authorized
             122      by Section 63B-16-101 .
             123          (b) The department shall monitor the highway construction or reconstruction projects
             124      that are included in the prioritized project list under Subsection (4).
             125          (c) Upon request by the Executive Appropriations Committee of the Legislature:
             126          (i) the Division of Finance shall report to the committee the status of all general
             127      obligation bonds issued under Section 63B-16-101 ; and
             128          (ii) the department shall report to the committee the status of all highway construction
             129      or reconstruction projects that are included in the prioritized project list under Subsection (4).
             130          (d) When the Division of Finance has reported that the general obligation bonds issued
             131      by Section 63B-16-101 have been paid off and the department has reported that projects
             132      included in the prioritized project list are complete to the Executive Appropriations Committee
             133      of the Legislature, the Division of Finance shall transfer any existing fund balance in
             134      accordance with Subsection (5).
             135          Section 3. Effective date.
             136          This bill takes effect on July 1, 2008.


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