Third Substitute H.B. 185

Senator Sheldon L. Killpack proposes the following substitute bill:

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

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

88 (f) be payable in those installments and at the times that the authority determines;
89 (g) be payable at the places, either within or without this state, that the authority
90 determines;
91 (h) bear interest at the rate or rates, payable at the place or places, and evidenced in the
92 manner, that the authority determines;
93 (i) be redeemable before maturity, with or without premium;
94 (j) contain any other provisions not inconsistent with this part that are considered to be
95 for the best interests of the authority and provided for in the proceedings of the authority under
96 which the bonds are authorized to be issued; and
97 (k) bear facsimile signatures and seals.
98 (4) The authority may pay any expenses, premiums, or commissions, that it considers
99 necessary or advantageous in connection with the authorization, sale, and issuance of these
100 obligations, from the proceeds of the sale of the obligations or from the revenues of the projects
101 involved.
102 Section 2. Section 63B-16-102 is amended to read:
103 63B-16-102. Highway bonds -- Maximum amount -- Projects authorized.
104 (1) (a) The total amount of bonds issued under this section may not exceed
105 $100,000,000.
106 (b) When the Department of Transportation certifies to the commission the amount of
107 bond proceeds that it needs to provide funding for the highway construction project described
108 in Subsection (2) for the next fiscal year, the commission may issue and sell general obligation
109 bonds in an amount equal to the certified amount plus costs of issuance.
110 (2) (a) As used in this Subsection (2), "Mountain View Corridor" means the land area
111 of Salt Lake County running from Interstate 80 south between SR-154 and SR-111 to 12600
112 South and then south and southeasterly to the northern portion of Utah County west of SR-15.
113 (b) Except as provided in Subsection (3), proceeds from the issuance of bonds shall be
114 provided to the Department of Transportation to pay for the costs of acquiring rights-of-way
115 and constructing a highway construction project within the Mountain View Corridor.
116 (c) The Department of Transportation shall use bond proceeds to pay for the portion of
117 the highway construction project described in this Subsection (2) that is located in Salt Lake
118 County.

119 (d) The costs under this Subsection (2) may include the cost of acquiring land, interests
120 in land, easements and rights-of-way, improving sites, and making all improvements necessary,
121 incidental, or convenient to the facilities, interest estimated to accrue on these bonds during the
122 period to be covered by construction of the projects plus a period of six months after the end of
123 the construction period, interest estimated to accrue on any bond anticipation notes issued
124 under the authority of this title, and all related engineering, architectural, and legal fees.
125 (3) (a) Thirty million dollars of the bond proceeds issued under this section shall be
126 provided to the Department of Transportation and funds under Subsection 72-2-121 (4)(c) shall
127 be used by the Department of Transportation to pay for or to provide funds to a municipality or
128 county to pay for the costs of right-of-way acquisition, construction, reconstruction,
129 renovations, or improvements to highways described in Subsection (3)(b).
130 (b) Bond proceeds described under Subsection (3)(a) and funds under Subsection
131 72-2-121 (4)(c) shall be used to pay the amounts described in this Subsection (3)(b) for the
132 following highways in Salt Lake County:
133 (i) $6,500,000 to Taylorsville City for:
134 (A) 6200 South and Redwood Road intersection, interchange, and highway
135 improvements; and
136 (B) an environmental study and preliminary engineering at 5400 South and Interstate
137 215;
138 (ii) $2,000,000 to West Valley City for 7200 West;
139 (iii) $4,000,000 to West Jordan City for 7800 South and Airport Road intersection and
140 highway improvements;
141 (iv) $6,250,000 to Sandy City for 1300 East, 9000 South to 11400 South, and State
142 Street to Interstate 15;
143 (v) $1,500,000 to Riverton City for right-of-way acquisition between Mountain View
144 Corridor and Bangerter Highway north of 13400 South;
145 (vi) $3,500,000 for highway [and bridge construction and reconstruction on 14600
146 South], access, and other improvements for the new commuter rail station in the south end of
147 Salt Lake County;
148 (vii) $11,000,000 to Draper City for the costs of highway improvements in the Salt
149 Lake County portion of Draper City;

150 (viii) $1,000,000 to Murray City for highway improvements [for] between Cottonwood
151 Street and 4500 South;
152 (ix) $1,000,000 to Cottonwood Heights for Fort Union Boulevard between 1300 East
153 and Highland Drive;
154 (x) $1,000,000 to Midvale City for State Street between 7200 South and 9000 South;
155 and
156 (xi) $250,000 to Salt Lake County for 2300 East.
157 (c) Prior to a municipality or county receiving funds described in this Subsection (3),
158 the municipality or county shall sign and file a written certification with the department
159 certifying that it will use the funds provided under this Subsection (3) solely for the projects
160 described in Subsection (3)(b).
161 (4) The commission or the state treasurer may make any statement of intent relating to
162 a reimbursement that is necessary or desirable to comply with federal tax law.
163 (5) The Department of Transportation may enter into agreements related to the project
164 before the receipt of proceeds of bonds issued under this chapter.
165 Section 3. Section 63B-18-101 is enacted to read:
166 63B-18-101. Highway bonds -- Maximum amount -- Projects authorized.
167 (1) (a) The total amount of bonds issued under this section may not exceed
168 $39,895,000.
169 (b) When the Department of Transportation certifies to the commission the amount of
170 bond proceeds that it needs to provide funding for the highway construction projects described
171 in Subsection (2), the commission may issue and sell general obligation bonds in an amount
172 equal to the certified amount plus costs of issuance.
173 (2) (a) Proceeds from the bonds issued under this section shall be provided to the
174 Department of Transportation and funds under Subsection 72-2-121 (4)(d) shall be used by the
175 Department of Transportation to pay for or to provide funds to a municipality or county to pay
176 for the costs of right-of-way acquisition, construction, reconstruction, renovations, or
177 improvements to highways described in Subsection (2)(b).
178 (b) Bond proceeds described under Subsection (2)(a) and funds under Subsection
179 72-2-121 (4)(d) shall be used to pay the amounts described in this Subsection (2)(b) for the
180 following highways projects in Salt Lake County:

181 (i) $15,000,000 to pay for projects in the following priority order:
182 (A) interchange improvements at 5400 South and Bangerter Highway;
183 (B) interchange improvements at 4700 South and Bangerter Highway;
184 (C) reversible lanes on 5400 South from Bangerter Highway going east, terminating at
185 either Redwood Road or Interstate 15; and
186 (D) any remaining proceeds from the amount described in Subsection (2)(b)(i) not
187 required for the projects described in Subsections (2)(b)(i)(A), (B), and (C), to pay for
188 intersection and congestion mitigation projects identified by the Department of Transportation
189 in the east-west transportation route improvement study;
190 (ii) $20,000,000 to Salt Lake City for the viaduct on North Temple and 400 West; and
191 (iii) $4,500,000 to Sandy City for the widening and improvement of 1300 East between
192 9800 South to 11000 South.
193 (c) Prior to a municipality or county receiving funds described in this Subsection (2),
194 the municipality or county shall sign and file a written certification with the Department of
195 Transportation certifying that it will use the funds provided under this Subsection (2) solely for
196 the projects described in Subsection (2)(b).
197 (d) The costs under this Subsection (2) may include the cost of acquiring land, interests
198 in land, easements and rights-of-way, improving sites, and making all improvements necessary,
199 incidental, or convenient to the facilities, interest estimated to accrue on these bonds during the
200 period to be covered by construction of the projects plus a period of six months after the end of
201 the construction period, interest estimated to accrue on any bond anticipation notes issued
202 under the authority of this title, and all related engineering, architectural, and legal fees.
203 (3) The commission or the state treasurer may make any statement of intent relating to
204 a reimbursement that is necessary or desirable to comply with federal tax law.
205 (4) The Department of Transportation may enter into agreements related to the project
206 before the receipt of proceeds of bonds issued under this chapter.
207 Section 4. Section 63J-3-402 is amended to read:
208 63J-3-402. Debt limitation -- Vote requirement needed to exceed limitation --
209 Exceptions.
210 (1) (a) Except as provided in Subsection (1)(b), the outstanding general obligation debt
211 of the state may not exceed 45% of the maximum allowable appropriations limit unless

212 approved by more than a two-thirds vote of both houses of the Legislature.
213 (b) Notwithstanding the limitation contained in Subsection (1)(a), debt issued under the
214 authority of the following parts or sections is not subject to the debt limitation established by
215 this section:
216 (i) Title 63B, Chapter 6, Part 2, 1997 Highway General Obligation Bond
217 Authorization;
218 (ii) Title 63B, Chapter 6, Part 3, 1997 Highway Bond Anticipation Note Authorization;
219 (iii) Title 63B, Chapter 7, Part 2, 1998 Highway General Obligation Bond
220 Authorization;
221 (iv) Title 63B, Chapter 7, Part 3, 1998 Highway Bond Anticipation Note
222 Authorization;
223 (v) Title 63B, Chapter 8, Part 2, 1999 Highway General Obligation Bond
224 Authorization;
225 (vi) Title 63B, Chapter 8, Part 3, 1999 Highway Bond Anticipation Note
226 Authorization;
227 (vii) Title 63B, Chapter 9, Part 2, 2000 Highway General Obligation Bond;
228 (viii) Title 63B, Chapter 10, Part 1, 2001 Highway General Obligation Bond;
229 (ix) Title 63B, Chapter 10, Part 2, 2001 Highway General Obligation Bond
230 Anticipation Notes;
231 (x) Title 63B, Chapter 11, Part 5, 2002 Highway General Obligation Bond for Salt
232 Lake County;
233 (xi) Title 63B, Chapter 11, Part 6, 2002 Highway General Obligation Bond
234 Anticipation Notes for Salt Lake County Authorization;
235 (xii) Section 63B-13-102 ;
236 (xiii) Section 63B-16-101 ; [and]
237 (xiv) Section 63B-16-102 ; and
238 (xv) Section 63B-18-101 .
239 (2) This section does not apply if contractual rights will be impaired.
240 Section 5. Section 72-2-121 is amended to read:
241 72-2-121. County of the First Class State Highway Projects Fund.
242 (1) There is created a special revenue fund entitled the County of the First Class State

243 Highway Projects Fund.
244 (2) The fund consists of monies generated from the following revenue sources:
245 (a) any voluntary contributions received for new construction, major renovations, and
246 improvements to state highways within a county of the first class;
247 (b) the portion of the sales and use tax described in Subsection 59-12-502 (5)(a)
248 deposited in or transferred to the fund;
249 (c) the portion of the sales and use tax described in Subsection 59-12-1703 (4)(a)(ii)
250 and required by Subsection 59-12-1703 (7)(b)(ii) to be deposited in or transferred to the fund;
251 and
252 (d) a portion of the local option highway construction and transportation corridor
253 preservation fee imposed in a county of the first class under Section 41-1a-1222 deposited in or
254 transferred to the fund.
255 (3) (a) The fund shall earn interest.
256 (b) All interest earned on fund monies shall be deposited into the fund.
257 (4) The executive director shall use fund monies only:
258 (a) to pay debt service and bond issuance costs for bonds issued under [Section]
259 Sections 63B-16-102 and 63B-18-101 ;
260 (b) for right-of-way acquisition, new construction, major renovations, and
261 improvements to state highways within a county of the first class and to pay any debt service
262 and bond issuance costs related to those projects; [and]
263 (c) for fiscal year 2008-09 only, to pay for or to provide funds to a municipality or
264 county to pay for right-of-way acquisition, construction, reconstruction, renovations, and
265 improvements to highways described in Subsection 63B-16-102 (3)[.]; and
266 (d) for fiscal year 2009-10 only, to pay for or to provide funds to a municipality or
267 county to pay for right-of-way acquisition, construction, reconstruction, renovations, and
268 improvements to highways described in Subsection 63B-18-101 (2).
269 (5) (a) For fiscal years beginning with fiscal year 2010-11 and ending with fiscal year
270 2012-13, the executive director shall use at least 20% of fund monies available that are not
271 required to pay principal, interest, and issuance costs of bonds issued under Sections
272 63B-16-102 and Section 63B-18-101 to pay for:
273 (i) east-west transportation route improvements in a county of the first class; and

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