! The Capitol Complex is closed to the public due to COVID-19. All meetings will be held virtually online. View virtual meeting instructions (PDF).

Download Zipped Enrolled WordPerfect HB0185.ZIP
[Introduced][Status][Bill Documents][Fiscal Note] [Bills Directory]

H.B. 185 Enrolled

             1     

TRANSPORTATION AMENDMENTS

             2     
2009 GENERAL SESSION

             3     
STATE OF UTAH

             4     
Chief Sponsor: Wayne A. Harper

             5     
Senate Sponsor: Sheldon L. Killpack

             6     
             7      LONG TITLE
             8      General Description:
             9          This bill modifies general obligation bond provisions and the Transportation Code by
             10      amending provisions relating to transportation funding.
             11      Highlighted Provisions:
             12          This bill:
             13          .    changes the transportation projects for which a portion of certain general obligation
             14      bond proceeds previously authorized that were allocated for certain transportation
             15      projects shall be used;
             16          .    authorizes issuance of $39,895,000 in general obligation bonds to pay all or part of
             17      the costs of constructing, reconstructing, renovating, or improving certain highways
             18      within a county of the first class;
             19          .    exempts the general obligation bonds from certain debt limitation provisions;
             20          .    provides that for a fiscal year beginning on or after July 1, 2010, the executive
             21      director shall use at least a certain portion of the fund monies in the County of the
             22      First Class State Highway Projects Fund to pay for:
             23              .    east-west transportation route improvements in a county of the first class; and
             24              .    state highway capacity improvement and congestion mitigation projects in a
             25      county of the first class; and
             26          .    makes technical changes.
             27      Monies Appropriated in this Bill:
             28          None
             29      Other Special Clauses:


             30          This bill takes effect on July 1, 2009.
             31      Utah Code Sections Affected:
             32      AMENDS:
             33          63B-1-306, as last amended by Laws of Utah 2004, Chapter 308
             34          63B-16-102, as last amended by Laws of Utah 2008, Second Special Session, Chapter
             35      4
             36          63J-3-402, as renumbered and amended by Laws of Utah 2008, Chapter 382
             37          72-2-121, as last amended by Laws of Utah 2008, Chapters 286 and 337
             38      ENACTS:
             39          63B-18-101, Utah Code Annotated 1953
             40     
             41      Be it enacted by the Legislature of the state of Utah:
             42          Section 1. Section 63B-1-306 is amended to read:
             43           63B-1-306. Obligations issued by authority -- Limitation of liability on
             44      obligations -- Limitation on amount of obligations issued.
             45          (1) (a) All obligations issued by the authority under this part shall be limited
             46      obligations of the authority and may not constitute, nor give rise to, a general obligation or
             47      liability of, nor a charge against the general credit or taxing power of, this state or any of its
             48      political subdivisions.
             49          (b) This limitation shall be plainly stated upon all obligations.
             50          (2) (a) No authority obligations incurred under this section may be issued in an
             51      amount exceeding the difference between the total indebtedness of the state and an amount
             52      equal to 1-1/2% of the value of the taxable property of the state.
             53          (b) Debt issued under authority of the following parts or sections may not be included
             54      as part of the total indebtedness of the state of Utah in determining the debt limit established
             55      by this Subsection (2):
             56          (i) Title 63B, Chapter 6, Part 2, 1997 Highway General Obligation Bond
             57      Authorization;


             58          (ii) Title 63B, Chapter 6, Part 3, 1997 Highway Bond Anticipation Note
             59      Authorization;
             60          (iii) Title 63B, Chapter 7, Part 2, 1998 Highway General Obligation Bond
             61      Authorization;
             62          (iv) Title 63B, Chapter 7, Part 3, 1998 Highway Bond Anticipation Note
             63      Authorization;
             64          (v) Title 63B, Chapter 8, Part 2, 1999 Highway General Obligation Bond
             65      Authorization;
             66          (vi) Title 63B, Chapter 8, Part 3, 1999 Highway Bond Anticipation Note
             67      Authorization;
             68          (vii) Title 63B, Chapter 9, Part 2, 2000 Highway General Obligation Bond;
             69          (viii) Title 63B, Chapter 10, Part 1, 2001 Highway General Obligation Bonds;
             70          (ix) Title 63B, Chapter 10, Part 2, 2001 Highway General Obligation Bond
             71      Anticipation Notes;
             72          (x) Title 63B, Chapter 11, Part 5, 2002 Highway General Obligation Bonds for Salt
             73      Lake County;
             74          (xi) Title 63B, Chapter 11, Part 6, 2002 Highway General Obligation Bond
             75      Anticipation Notes for Salt Lake County; [and]
             76          (xii) Section 63B-13-102 ; and
             77          (xiii) Section 63B-18-101 .
             78          (c) Debt issued under authority of Section 63B-7-503 may not be included as part of
             79      the total indebtedness of the state in determining the debt limit established by this Subsection
             80      (2).
             81          (3) The obligations shall be authorized by resolution of the authority, following
             82      approval of the Legislature, and may:
             83          (a) be executed and delivered at any time, and from time to time, as the authority may
             84      determine;
             85          (b) be sold at public or private sale in the manner and at the prices, either at, in excess


             86      of, or below their face value and at the times that the authority determines;
             87          (c) be in the form and denominations that the authority determines;
             88          (d) be of the tenor that the authority determines;
             89          (e) be in registered or bearer form either as to principal or interest or both;
             90          (f) be payable in those installments and at the times that the authority determines;
             91          (g) be payable at the places, either within or without this state, that the authority
             92      determines;
             93          (h) bear interest at the rate or rates, payable at the place or places, and evidenced in the
             94      manner, that the authority determines;
             95          (i) be redeemable before maturity, with or without premium;
             96          (j) contain any other provisions not inconsistent with this part that are considered to be
             97      for the best interests of the authority and provided for in the proceedings of the authority under
             98      which the bonds are authorized to be issued; and
             99          (k) bear facsimile signatures and seals.
             100          (4) The authority may pay any expenses, premiums, or commissions, that it considers
             101      necessary or advantageous in connection with the authorization, sale, and issuance of these
             102      obligations, from the proceeds of the sale of the obligations or from the revenues of the
             103      projects involved.
             104          Section 2. Section 63B-16-102 is amended to read:
             105           63B-16-102. Highway bonds -- Maximum amount -- Projects authorized.
             106          (1) (a) The total amount of bonds issued under this section may not exceed
             107      $100,000,000.
             108          (b) When the Department of Transportation certifies to the commission the amount of
             109      bond proceeds that it needs to provide funding for the highway construction project described
             110      in Subsection (2) for the next fiscal year, the commission may issue and sell general obligation
             111      bonds in an amount equal to the certified amount plus costs of issuance.
             112          (2) (a) As used in this Subsection (2), "Mountain View Corridor" means the land area
             113      of Salt Lake County running from Interstate 80 south between SR-154 and SR-111 to 12600


             114      South and then south and southeasterly to the northern portion of Utah County west of SR-15.
             115          (b) Except as provided in Subsection (3), proceeds from the issuance of bonds shall be
             116      provided to the Department of Transportation to pay for the costs of acquiring rights-of-way
             117      and constructing a highway construction project within the Mountain View Corridor.
             118          (c) The Department of Transportation shall use bond proceeds to pay for the portion of
             119      the highway construction project described in this Subsection (2) that is located in Salt Lake
             120      County.
             121          (d) The costs under this Subsection (2) may include the cost of acquiring land,
             122      interests in land, easements and rights-of-way, improving sites, and making all improvements
             123      necessary, incidental, or convenient to the facilities, interest estimated to accrue on these
             124      bonds during the period to be covered by construction of the projects plus a period of six
             125      months after the end of the construction period, interest estimated to accrue on any bond
             126      anticipation notes issued under the authority of this title, and all related engineering,
             127      architectural, and legal fees.
             128          (3) (a) Thirty million dollars of the bond proceeds issued under this section shall be
             129      provided to the Department of Transportation and funds under Subsection 72-2-121 (4)(c) shall
             130      be used by the Department of Transportation to pay for or to provide funds to a municipality
             131      or county to pay for the costs of right-of-way acquisition, construction, reconstruction,
             132      renovations, or improvements to highways described in Subsection (3)(b).
             133          (b) Bond proceeds described under Subsection (3)(a) and funds under Subsection
             134      72-2-121 (4)(c) shall be used to pay the amounts described in this Subsection (3)(b) for the
             135      following highways in Salt Lake County:
             136          (i) $6,500,000 to Taylorsville City for:
             137          (A) 6200 South and Redwood Road intersection, interchange, and highway
             138      improvements; and
             139          (B) an environmental study and preliminary engineering at 5400 South and Interstate
             140      215;
             141          (ii) $2,000,000 to West Valley City for 7200 West;


             142          (iii) $4,000,000 to West Jordan City for 7800 South and Airport Road intersection and
             143      highway improvements;
             144          (iv) $6,250,000 to Sandy City for 1300 East, 9000 South to 11400 South, and State
             145      Street to Interstate 15;
             146          (v) $1,500,000 to Riverton City for right-of-way acquisition between Mountain View
             147      Corridor and Bangerter Highway north of 13400 South;
             148          (vi) $3,500,000 for highway [and bridge construction and reconstruction on 14600
             149      South], access, and other improvements for the new commuter rail station in the south end of
             150      Salt Lake County;
             151          (vii) $11,000,000 to Draper City for the costs of highway improvements in the Salt
             152      Lake County portion of Draper City;
             153          (viii) $1,000,000 to Murray City for highway improvements [for] between
             154      Cottonwood Street and 4500 South;
             155          (ix) $1,000,000 to Cottonwood Heights for Fort Union Boulevard between 1300 East
             156      and Highland Drive;
             157          (x) $1,000,000 to Midvale City for State Street between 7200 South and 9000 South;
             158      and
             159          (xi) $250,000 to Salt Lake County for 2300 East.
             160          (c) Prior to a municipality or county receiving funds described in this Subsection (3),
             161      the municipality or county shall sign and file a written certification with the department
             162      certifying that it will use the funds provided under this Subsection (3) solely for the projects
             163      described in Subsection (3)(b).
             164          (4) The commission or the state treasurer may make any statement of intent relating to
             165      a reimbursement that is necessary or desirable to comply with federal tax law.
             166          (5) The Department of Transportation may enter into agreements related to the project
             167      before the receipt of proceeds of bonds issued under this chapter.
             168          Section 3. Section 63B-18-101 is enacted to read:
             169     
Part 1. 2009 Highway General Obligation Bonds


             170          63B-18-101. Highway bonds -- Maximum amount -- Projects authorized.
             171          (1) (a) The total amount of bonds issued under this section may not exceed
             172      $39,895,000.
             173          (b) When the Department of Transportation certifies to the commission the amount of
             174      bond proceeds that it needs to provide funding for the highway construction projects described
             175      in Subsection (2), the commission may issue and sell general obligation bonds in an amount
             176      equal to the certified amount plus costs of issuance.
             177          (2) (a) Proceeds from the bonds issued under this section shall be provided to the
             178      Department of Transportation and funds under Subsection 72-2-121 (4)(d) shall be used by the
             179      Department of Transportation to pay for or to provide funds to a municipality or county to pay
             180      for the costs of right-of-way acquisition, construction, reconstruction, renovations, or
             181      improvements to highways described in Subsection (2)(b).
             182          (b) Bond proceeds described under Subsection (2)(a) and funds under Subsection
             183      72-2-121 (4)(d) shall be used to pay the amounts described in this Subsection (2)(b) for the
             184      following highway projects in Salt Lake County:
             185          (i) $15,000,000 to pay for projects in the following priority order:
             186          (A) interchange improvements at 5400 South and Bangerter Highway;
             187          (B) interchange improvements at 4700 South and Bangerter Highway;
             188          (C) reversible lanes on 5400 South from Bangerter Highway going east, terminating at
             189      either Redwood Road or Interstate 15; and
             190          (D) any remaining proceeds from the amount described in Subsection (2)(b)(i) not
             191      required for the projects described in Subsections (2)(b)(i)(A), (B), and (C), to pay for
             192      intersection and congestion mitigation projects identified by the Department of Transportation
             193      in the east-west transportation route improvement study;
             194          (ii) $20,000,000 to Salt Lake City for the viaduct on North Temple and 400 West; and
             195          (iii) $4,500,000 to Sandy City for the widening and improvement of 1300 East
             196      between 9800 South to 11000 South.
             197          (c) Prior to a municipality or county receiving funds described in this Subsection (2),


             198      the municipality or county shall sign and file a written certification with the Department of
             199      Transportation certifying that it will use the funds provided under this Subsection (2) solely
             200      for the projects described in Subsection (2)(b).
             201          (d) The costs under this Subsection (2) may include the cost of acquiring land,
             202      interests in land, easements and rights-of-way, improving sites, and making all improvements
             203      necessary, incidental, or convenient to the facilities, interest estimated to accrue on these
             204      bonds during the period to be covered by construction of the projects plus a period of six
             205      months after the end of the construction period, interest estimated to accrue on any bond
             206      anticipation notes issued under the authority of this title, and all related engineering,
             207      architectural, and legal fees.
             208          (3) The commission or the state treasurer may make any statement of intent relating to
             209      a reimbursement that is necessary or desirable to comply with federal tax law.
             210          (4) The Department of Transportation may enter into agreements related to the project
             211      before the receipt of proceeds of bonds issued under this chapter.
             212          Section 4. Section 63J-3-402 is amended to read:
             213           63J-3-402. Debt limitation -- Vote requirement needed to exceed limitation --
             214      Exceptions.
             215          (1) (a) Except as provided in Subsection (1)(b), the outstanding general obligation
             216      debt of the state may not exceed 45% of the maximum allowable appropriations limit unless
             217      approved by more than a two-thirds vote of both houses of the Legislature.
             218          (b) Notwithstanding the limitation contained in Subsection (1)(a), debt issued under
             219      the authority of the following parts or sections is not subject to the debt limitation established
             220      by this section:
             221          (i) Title 63B, Chapter 6, Part 2, 1997 Highway General Obligation Bond
             222      Authorization;
             223          (ii) Title 63B, Chapter 6, Part 3, 1997 Highway Bond Anticipation Note
             224      Authorization;
             225          (iii) Title 63B, Chapter 7, Part 2, 1998 Highway General Obligation Bond


             226      Authorization;
             227          (iv) Title 63B, Chapter 7, Part 3, 1998 Highway Bond Anticipation Note
             228      Authorization;
             229          (v) Title 63B, Chapter 8, Part 2, 1999 Highway General Obligation Bond
             230      Authorization;
             231          (vi) Title 63B, Chapter 8, Part 3, 1999 Highway Bond Anticipation Note
             232      Authorization;
             233          (vii) Title 63B, Chapter 9, Part 2, 2000 Highway General Obligation Bond;
             234          (viii) Title 63B, Chapter 10, Part 1, 2001 Highway General Obligation Bond;
             235          (ix) Title 63B, Chapter 10, Part 2, 2001 Highway General Obligation Bond
             236      Anticipation Notes;
             237          (x) Title 63B, Chapter 11, Part 5, 2002 Highway General Obligation Bond for Salt
             238      Lake County;
             239          (xi) Title 63B, Chapter 11, Part 6, 2002 Highway General Obligation Bond
             240      Anticipation Notes for Salt Lake County Authorization;
             241          (xii) Section 63B-13-102 ;
             242          (xiii) Section 63B-16-101 ; [and]
             243          (xiv) Section 63B-16-102 ; and
             244          (xv) Section 63B-18-101 .
             245          (2) This section does not apply if contractual rights will be impaired.
             246          Section 5. Section 72-2-121 is amended to read:
             247           72-2-121. County of the First Class State Highway Projects Fund.
             248          (1) There is created a special revenue fund entitled the County of the First Class State
             249      Highway Projects Fund.
             250          (2) The fund consists of monies generated from the following revenue sources:
             251          (a) any voluntary contributions received for new construction, major renovations, and
             252      improvements to state highways within a county of the first class;
             253          (b) the portion of the sales and use tax described in Subsection 59-12-502 (5)(a)


             254      deposited in or transferred to the fund;
             255          (c) the portion of the sales and use tax described in Subsection 59-12-1703 (4)(a)(ii)
             256      and required by Subsection 59-12-1703 (7)(b)(ii) to be deposited in or transferred to the fund;
             257      and
             258          (d) a portion of the local option highway construction and transportation corridor
             259      preservation fee imposed in a county of the first class under Section 41-1a-1222 deposited in
             260      or transferred to the fund.
             261          (3) (a) The fund shall earn interest.
             262          (b) All interest earned on fund monies shall be deposited into the fund.
             263          (4) The executive director shall use fund monies only:
             264          (a) to pay debt service and bond issuance costs for bonds issued under [Section]
             265      Sections 63B-16-102 and 63B-18-101 ;
             266          (b) for right-of-way acquisition, new construction, major renovations, and
             267      improvements to state highways within a county of the first class and to pay any debt service
             268      and bond issuance costs related to those projects; [and]
             269          (c) for fiscal year 2008-09 only, to pay for or to provide funds to a municipality or
             270      county to pay for right-of-way acquisition, construction, reconstruction, renovations, and
             271      improvements to highways described in Subsection 63B-16-102 (3)[.]; and
             272          (d) for fiscal year 2009-10 only, to pay for or to provide funds to a municipality or
             273      county to pay for right-of-way acquisition, construction, reconstruction, renovations, and
             274      improvements to highways described in Subsection 63B-18-101 (2).
             275          (5) (a) For fiscal years beginning with fiscal year 2010-11 and ending with fiscal year
             276      2012-13, the executive director shall use at least 20% of fund monies available that are not
             277      required to pay principal, interest, and issuance costs of bonds issued under Sections
             278      63B-16-102 and 63B-18-101 to pay for:
             279          (i) east-west transportation route improvements in a county of the first class; and
             280          (ii) state highway capacity improvement and congestion mitigation projects in a
             281      county of the first class.


             282          (b) For a fiscal year beginning on or after July 1, 2013, the executive director shall use
             283      at least 25% of fund monies available that are not required to pay principal, interest, and
             284      issuance costs of bonds issued under Sections 63B-16-102 and 63B-18-101 to pay for:
             285          (i) east-west transportation route improvements in a county of the first class; and
             286          (ii) state highway capacity improvement and congestion mitigation projects in a
             287      county of the first class.
             288          [(5)] (6) The revenues described in Subsections (2)(b), (c), and (d) that are deposited
             289      in the fund and bond proceeds from bonds issued under [Section] Sections 63B-16-102 and
             290      63B-18-101 are considered a local matching contribution for the purposes described under
             291      Section 72-2-123 .
             292          [(6)] (7) The additional administrative costs of the department to administer this fund
             293      shall be paid from the monies in the fund.
             294          Section 6. Effective date.
             295          This bill takes effect on July 1, 2009.


[Bill Documents][Bills Directory]