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S.B. 239

             1     

TRANSPORTATION REVISIONS

             2     
2009 GENERAL SESSION

             3     
STATE OF UTAH

             4     
Chief Sponsor: Sheldon L. Killpack

             5     
House Sponsor: Kevin S. Garn

             6     
             7      LONG TITLE
             8      General Description:
             9          This bill enacts and amends provisions relating to transportation funding.
             10      Highlighted Provisions:
             11          This bill:
             12          .    increases certain motor vehicle registration fees by $20;
             13          .    provides that $20 of certain motor vehicle registration fees shall be deposited in the
             14      Transportation Investment Fund of 2005;
             15          .    authorizes the issuance of general obligation bonds to pay for certain state highway
             16      construction or reconstruction projects;
             17          .    specifies the use of general obligation bond proceeds and the manner of issuance;
             18          .    exempts certain general obligation bonds from certain debt limitation provisions;
             19          .    requires the Department of Transportation and the Transportation Commission to
             20      report the amount of bonds needed to fund certain projects in the next fiscal year to
             21      the Executive Appropriations Committee of the Legislature before the bonds may
             22      be issued; and
             23          .    makes technical changes.
             24      Monies Appropriated in this Bill:
             25          None
             26      Other Special Clauses:
             27          This bill takes effect on July 1, 2009.


             28      Utah Code Sections Affected:
             29      AMENDS:
             30          41-1a-1201, as last amended by Laws of Utah 2008, Chapter 143
             31          41-1a-1206, as last amended by Laws of Utah 2008, Chapter 210
             32          63B-1-306, as last amended by Laws of Utah 2004, Chapter 308
             33          63J-3-402, as renumbered and amended by Laws of Utah 2008, Chapter 382
             34          72-2-124, as last amended by Laws of Utah 2008, Chapters 153 and 389
             35      ENACTS:
             36          63B-18-101, Utah Code Annotated 1953
             37     
             38      Be it enacted by the Legislature of the state of Utah:
             39          Section 1. Section 41-1a-1201 is amended to read:
             40           41-1a-1201. Disposition of fees.
             41          (1) All fees received and collected under this part shall be transmitted daily to the state
             42      treasurer.
             43          (2) Except as provided in Subsections (3), (4), [and] (6), and (7) and Sections
             44      41-1a-422 , 41-1a-1220 , and 41-1a-1221 , all fees collected under this part shall be deposited in
             45      the Transportation Fund.
             46          (3) (a) Funds generated under Subsections 41-1a-1211 (1)(b)(i), (6)(b)(i), and (7) and
             47      Section 41-1a-1212 may be used by the commission as a dedicated credit to cover the costs
             48      incurred in issuing license plates under Part 4, License Plates and Registration Indicia.
             49          (b) Fees for statehood centennial license plates shall be collected and deposited in the
             50      Transportation Fund, less production and administrative costs incurred by the commission.
             51          (4) All funds available to the commission for purchase and distribution of license
             52      plates and decals are nonlapsing.
             53          (5) Except as provided in Subsection (3) and Section 41-1a-1205 , the expenses of the
             54      commission in enforcing and administering this part shall be provided for by legislative
             55      appropriation from the revenues of the Transportation Fund.
             56          (6) (a) Except as provided in Subsection (6)(b), the following portions of the
             57      registration fees imposed under Section 41-1a-1206 for each vehicle shall be deposited in the
             58      Centennial Highway Fund Restricted Account created under Section 72-2-118 :


             59          (i) $10 of the registration fees imposed under Subsections 41-1a-1206 (1)(a), (1)(b), (2),
             60      and (5);
             61          (ii) $1 of the registration fees imposed under Subsections 41-1a-1206 (1)(c)(i),
             62      (1)(c)(ii), and (1)(d)(ii);
             63          (iii) $2 of the registration fee imposed under Subsection 41-1a-1206 (1)(e)(ii);
             64          (iv) $3 of the registration fee imposed under Subsection 41-1a-1206 (1)(d)(i); and
             65          (v) $4.50 of the registration fee imposed under Subsection 41-1a-1206 (1)(e)(i).
             66          (b) When the highway general obligation bonds have been paid off and the highway
             67      projects completed that are intended to be paid from revenues deposited in the Centennial
             68      Highway Fund Restricted Account as determined by the Executive Appropriations Committee
             69      under Subsection 72-2-118 (6)(d), the portions of the registration fees deposited under
             70      Subsection (6)(a) for each vehicle shall be deposited in the Transportation Investment Fund of
             71      2005 created by Section 72-2-124 .
             72          (7) Twenty dollars of each registration fee collected under Subsections 41-1a-1206
             73      (1)(a), (1)(b), (1)(c), (1)(d)(i), (1)(e), (2)(a), and (5) shall be deposited in the Transportation
             74      Investment Fund of 2005 created by Section 72-2-124 .
             75          Section 2. Section 41-1a-1206 is amended to read:
             76           41-1a-1206. Registration fees -- Fees by gross laden weight.
             77          (1) Except as provided in Subsection (2), at the time application is made for
             78      registration or renewal of registration of a vehicle or combination of vehicles under this
             79      chapter, a registration fee shall be paid to the division as follows:
             80          (a) [$22.50] $42.50 for each motorcycle;
             81          (b) [$21] $41 for each motor vehicle of 12,000 pounds or less gross laden weight,
             82      excluding motorcycles;
             83          (c) unless the semitrailer or trailer is exempt from registration under Section 41-1a-202
             84      or is registered under Section 41-1a-301 :
             85          (i) [$11] $31 for each trailer or semitrailer over 750 pounds gross unladen weight; or
             86          (ii) [$8.50] $28.50 for each commercial trailer or commercial semitrailer of 750
             87      pounds or less gross unladen weight;
             88          (d) (i) [$33] $53 for each farm truck over 12,000 pounds, but not exceeding 14,000
             89      pounds gross laden weight; plus


             90          (ii) $9 for each 2,000 pounds over 14,000 pounds gross laden weight; and
             91          (e) (i) [$49.50] $69.50 for each motor vehicle or combination of motor vehicles,
             92      excluding farm trucks, over 12,000 pounds, but not exceeding 14,000 pounds gross laden
             93      weight; plus
             94          (ii) [$18.50] $19 for each 2,000 pounds over 14,000 pounds gross laden weight.
             95          (2) (a) The initial registration fee for a vintage vehicle is [$20] $40.
             96          (b) A vintage vehicle is exempt from the renewal of registration fees under Subsection
             97      (1).
             98          (c) A vehicle with a Purple Heart special group license plate issued in accordance with
             99      Section 41-1a-421 is exempt from the registration fees under Subsection (1).
             100          (3) If a motor vehicle is operated in combination with a semitrailer or trailer, each
             101      motor vehicle shall register for the total gross laden weight of all units of the combination if the
             102      total gross laden weight of the combination exceeds 12,000 pounds.
             103          (4) (a) Registration fee categories under this section are based on the gross laden
             104      weight declared in the licensee's application for registration.
             105          (b) Gross laden weight shall be computed in units of 2,000 pounds. A fractional part
             106      of 2,000 pounds is a full unit.
             107          (5) The owner of a commercial trailer or commercial semitrailer may, as an alternative
             108      to registering under Subsection (1)(c), apply for and obtain a special registration and license
             109      plate for a fee of [$110] $130.
             110          (6) Except as provided in Section 41-6a-1642 , a truck may not be registered as a farm
             111      truck unless:
             112          (a) the truck meets the definition of a farm truck under Section 41-1a-102 ; and
             113          (b) (i) the truck has a gross vehicle weight rating of more than 12,000 pounds; or
             114          (ii) the truck has a gross vehicle weight rating of 12,000 pounds or less and the owner
             115      submits to the division a certificate of emissions inspection or a waiver in compliance with
             116      Section 41-6a-1642 .
             117          (7) A violation of Subsection (6) is a class B misdemeanor that shall be punished by a
             118      fine of not less than $200.
             119          (8) Trucks used exclusively to pump cement, bore wells, or perform crane services
             120      with a crane lift capacity of five or more tons, are exempt from 50% of the amount of the fees


             121      required for those vehicles under this section.
             122          Section 3. Section 63B-1-306 is amended to read:
             123           63B-1-306. Obligations issued by authority -- Limitation of liability on
             124      obligations -- Limitation on amount of obligations issued.
             125          (1) (a) All obligations issued by the authority under this part shall be limited
             126      obligations of the authority and may not constitute, nor give rise to, a general obligation or
             127      liability of, nor a charge against the general credit or taxing power of, this state or any of its
             128      political subdivisions.
             129          (b) This limitation shall be plainly stated upon all obligations.
             130          (2) (a) No authority obligations incurred under this section may be issued in an amount
             131      exceeding the difference between the total indebtedness of the state and an amount equal to
             132      1-1/2% of the value of the taxable property of the state.
             133          (b) Debt issued under authority of the following parts or sections may not be included
             134      as part of the total indebtedness of the state of Utah in determining the debt limit established by
             135      this Subsection (2):
             136          (i) Title 63B, Chapter 6, Part 2, 1997 Highway General Obligation Bond
             137      Authorization;
             138          (ii) Title 63B, Chapter 6, Part 3, 1997 Highway Bond Anticipation Note Authorization;
             139          (iii) Title 63B, Chapter 7, Part 2, 1998 Highway General Obligation Bond
             140      Authorization;
             141          (iv) Title 63B, Chapter 7, Part 3, 1998 Highway Bond Anticipation Note
             142      Authorization;
             143          (v) Title 63B, Chapter 8, Part 2, 1999 Highway General Obligation Bond
             144      Authorization;
             145          (vi) Title 63B, Chapter 8, Part 3, 1999 Highway Bond Anticipation Note
             146      Authorization;
             147          (vii) Title 63B, Chapter 9, Part 2, 2000 Highway General Obligation Bond;
             148          (viii) Title 63B, Chapter 10, Part 1, 2001 Highway General Obligation Bonds;
             149          (ix) Title 63B, Chapter 10, Part 2, 2001 Highway General Obligation Bond
             150      Anticipation Notes Authorization;
             151          (x) Title 63B, Chapter 11, Part 5, 2002 Highway General Obligation Bonds for Salt


             152      Lake County;
             153          (xi) Title 63B, Chapter 11, Part 6, 2002 Highway General Obligation Bond
             154      Anticipation Notes for Salt Lake County; [and]
             155          (xii) Section 63B-13-102 [.];
             156          (xiii) Section 63B-16-101 ;
             157          (xiv) Section 63B-16-102 ; and
             158          (xv) Section 63B-18-101 .
             159          (c) Debt issued under authority of Section 63B-7-503 may not be included as part of
             160      the total indebtedness of the state in determining the debt limit established by this Subsection
             161      (2).
             162          (3) The obligations shall be authorized by resolution of the authority, following
             163      approval of the Legislature, and may:
             164          (a) be executed and delivered at any time, and from time to time, as the authority may
             165      determine;
             166          (b) be sold at public or private sale in the manner and at the prices, either at, in excess
             167      of, or below their face value and at the times that the authority determines;
             168          (c) be in the form and denominations that the authority determines;
             169          (d) be of the tenor that the authority determines;
             170          (e) be in registered or bearer form either as to principal or interest or both;
             171          (f) be payable in those installments and at the times that the authority determines;
             172          (g) be payable at the places, either within or without this state, that the authority
             173      determines;
             174          (h) bear interest at the rate or rates, payable at the place or places, and evidenced in the
             175      manner, that the authority determines;
             176          (i) be redeemable before maturity, with or without premium;
             177          (j) contain any other provisions not inconsistent with this part that are considered to be
             178      for the best interests of the authority and provided for in the proceedings of the authority under
             179      which the bonds are authorized to be issued; and
             180          (k) bear facsimile signatures and seals.
             181          (4) The authority may pay any expenses, premiums, or commissions, that it considers
             182      necessary or advantageous in connection with the authorization, sale, and issuance of these


             183      obligations, from the proceeds of the sale of the obligations or from the revenues of the projects
             184      involved.
             185          Section 4. Section 63B-18-101 is enacted to read:
             186     
Part 1. 2009 Highway General Obligation Bonds

             187          63B-18-101. Highway bonds -- Maximum amount -- Use of proceeds for highway
             188      projects.
             189          (1) (a) The total amount of bonds issued under this section may not exceed
             190      $2,186,000,000.
             191          (b) When the Department of Transportation certifies to the commission that the
             192      requirements of Subsection 72-2-124 (6) have been met and certifies the amount of bond
             193      proceeds that it needs to provide funding for the projects described in Subsection (2) for the
             194      next fiscal year, the commission may issue and sell general obligation bonds in an amount
             195      equal to the certified amount plus costs of issuance.
             196          (2) (a) Proceeds from the issuance of bonds shall be provided to the Department of
             197      Transportation to pay all or part of the costs of the following state highway construction or
             198      reconstruction projects:
             199          (i) Interstate 15 reconstruction in Utah County;
             200          (ii) the Mountain View Corridor;
             201          (iii) the Southern Parkway; and
             202          (iv) state and federal highways prioritized by the Transportation Commission through:
             203          (A) the prioritization process for new transportation capacity projects adopted under
             204      Section 72-1-304 ; or
             205          (B) the state highway construction program.
             206          (b) The costs under Subsection (2)(a) may include the cost of acquiring land, interests
             207      in land, easements and rights-of-way, improving sites, and making all improvements necessary,
             208      incidental, or convenient to the facilities, interest estimated to accrue on these bonds during the
             209      period to be covered by construction of the projects plus a period of six months after the end of
             210      the construction period, interest estimated to accrue on any bond anticipation notes issued
             211      under the authority of this title, and all related engineering, architectural, and legal fees.
             212          (3) The commission or the state treasurer may make any statement of intent relating to
             213      a reimbursement that is necessary or desirable to comply with federal tax law.


             214          (4) The Department of Transportation may enter into agreements related to the projects
             215      described in Subsection (2) before the receipt of proceeds of bonds issued under this section.
             216          Section 5. Section 63J-3-402 is amended to read:
             217           63J-3-402. Debt limitation -- Vote requirement needed to exceed limitation --
             218      Exceptions.
             219          (1) (a) Except as provided in Subsection (1)(b), the outstanding general obligation debt
             220      of the state may not exceed 45% of the maximum allowable appropriations limit unless
             221      approved by more than a two-thirds vote of both houses of the Legislature.
             222          (b) Notwithstanding the limitation contained in Subsection (1)(a), debt issued under the
             223      authority of the following parts or sections is not subject to the debt limitation established by
             224      this section:
             225          (i) Title 63B, Chapter 6, Part 2, 1997 Highway General Obligation Bond
             226      Authorization;
             227          (ii) Title 63B, Chapter 6, Part 3, 1997 Highway Bond Anticipation Note Authorization;
             228          (iii) Title 63B, Chapter 7, Part 2, 1998 Highway General Obligation Bond
             229      Authorization;
             230          (iv) Title 63B, Chapter 7, Part 3, 1998 Highway Bond Anticipation Note
             231      Authorization;
             232          (v) Title 63B, Chapter 8, Part 2, 1999 Highway General Obligation Bond
             233      Authorization;
             234          (vi) Title 63B, Chapter 8, Part 3, 1999 Highway Bond Anticipation Note
             235      Authorization;
             236          (vii) Title 63B, Chapter 9, Part 2, 2000 Highway General Obligation Bond;
             237          (viii) Title 63B, Chapter 10, Part 1, 2001 Highway General Obligation Bond;
             238          (ix) Title 63B, Chapter 10, Part 2, 2001 Highway General Obligation Bond
             239      Anticipation Notes Authorization;
             240          (x) Title 63B, Chapter 11, Part 5, 2002 Highway General Obligation Bond for Salt
             241      Lake County;
             242          (xi) Title 63B, Chapter 11, Part 6, 2002 Highway General Obligation Bond
             243      Anticipation Notes for Salt Lake County Authorization;
             244          (xii) Section 63B-13-102 ;


             245          (xiii) Section 63B-16-101 ; [and]
             246          (xiv) Section 63B-16-102 [.]; and
             247          (xv) Section 63B-18-101 .
             248          (2) This section does not apply if contractual rights will be impaired.
             249          Section 6. Section 72-2-124 is amended to read:
             250           72-2-124. Transportation Investment Fund of 2005.
             251          (1) There is created a special revenue fund entitled the Transportation Investment Fund
             252      of 2005.
             253          (2) The fund consists of monies generated from the following sources:
             254          (a) any voluntary contributions received for the maintenance, construction,
             255      reconstruction, or renovation of state and federal highways;
             256          (b) appropriations made to the fund by the Legislature; and
             257          (c) the sales and use tax revenues deposited into the fund in accordance with Section
             258      59-12-103 .
             259          (3) When the highway general obligation bonds have been paid off and the highway
             260      projects completed that are intended to be paid from revenues deposited in the Centennial
             261      Highway Fund Restricted Account as determined by the Executive Appropriations Committee
             262      under Subsection 72-2-118 (6)(d), the fund shall also consist of monies generated from the
             263      following sources:
             264          (a) registration fees designated under Subsection 41-1a-1201 (6)(a); and
             265          (b) the sales and use tax amounts provided for in Section 59-12-103 .
             266          (4) (a) The fund shall earn interest.
             267          (b) All interest earned on fund monies shall be deposited into the fund.
             268          (5) (a) Except as provided in [Subsections] Subsection (5)(b) [and (c)], the executive
             269      director may use fund monies only to pay:
             270          (i) the costs of maintenance, construction, reconstruction, or renovation to state and
             271      federal highways prioritized by the Transportation Commission through the prioritization
             272      process for new transportation capacity projects adopted under Section 72-1-304 [.];
             273          [(b) The executive director may use fund monies deposited into the fund in fiscal year
             274      2006 only to pay the costs of maintenance, construction, reconstruction, or renovation to state
             275      and federal highways prioritized by the Transportation Commission.]


             276          (ii) the costs of maintenance, construction, reconstruction, or renovation to the highway
             277      projects described in Subsection 63B-18-101 (2); and
             278          (iii) principal, interest, and issuance costs of bonds authorized by Section 63B-18-101 .
             279          [(c)] (b) The executive director may use fund monies to exchange for an equal or
             280      greater amount of federal transportation funds to be used as provided in Subsection (5)(a).
             281          (6) (a) Before bonds authorized by Section 63B-18-101 may be issued in any fiscal
             282      year, the department and the commission shall appear before the Executive Appropriations
             283      Committee of the Legislature and present the amount of bond proceeds that the department
             284      needs to provide funding for the projects identified in Subsection 63B-18-101 (2) for the next
             285      fiscal year.
             286          (b) The Executive Appropriations Committee of the Legislature shall review and
             287      comment on the amount of bond proceeds needed to fund the projects.
             288          (7) The Division of Finance shall, from monies deposited into the fund, transfer the
             289      amount of funds necessary to pay principal, interest, and issuance costs of bonds authorized by
             290      Section 63B-18-101 in the current fiscal year to the appropriate debt service or sinking fund.
             291          Section 7. Effective date.
             292          This bill takes effect on July 1, 2009.




Legislative Review Note
    as of 3-9-09 6:25 PM


Office of Legislative Research and General Counsel


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