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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.


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