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First Substitute S.B. 215

This document includes House Floor Amendments incorporated into the bill on Thu, Mar 11, 2010 at 8:16 PM by lerror. -->

Senator Wayne L. Niederhauser proposes the following substitute bill:


             1     
HIGHWAY PROJECT FUNDING - SALT LAKE COUNTY

             2     
2010 GENERAL SESSION

             3     
STATE OF UTAH

             4     
Chief Sponsor: Wayne L. Niederhauser

             5     
House Sponsor: Wayne A. Harper

             6     

             7      LONG TITLE
             8      General Description:
             9          This bill provides a mechanism for financing and constructing certain highway projects
             10      in Salt Lake County using revenues generated wholly in Salt Lake County.
             11      Highlighted Provisions:
             12          This bill:
             13          .    authorizes Salt Lake County and the state of Utah to enter into an interlocal
             14      agreement for financing certain highway projects in Salt Lake County;
             15          .    specifies certain provisions of that agreement;
             16          .    provides for Salt Lake County to issue revenue bonds and transmit a portion of the
             17      proceeds to the Department of Transportation and to certain municipalities;
             18          .    provides for the state of Utah to transfer money from the state fund that receives
             19      certain Salt Lake County revenues to Salt Lake County to pay debt service on the
             20      revenue bonds;
             21          .    modifies existing statutory provisions to provide revenues necessary to pay debt
             22      service on the Salt Lake County revenue bonds; and
             23          .    makes technical corrections.
             24      Monies Appropriated in this Bill:
             25          None



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             26
     Other Special Clauses:
             27          None
             28      Utah Code Sections Affected:
             29      AMENDS:
             30          72-2-121, as last amended by Laws of Utah 2009, Chapter 275
             31      ENACTS:
             32          72-2-121.3, Utah Code Annotated 1953
             33          72-2-121.4, Utah Code Annotated 1953
             34     

             35      Be it enacted by the Legislature of the state of Utah:
             36          Section 1. Section 72-2-121 is amended to read:
             37           72-2-121. County of the First Class State Highway Projects Fund.
             38          (1) There is created a special revenue fund entitled the County of the First Class State
             39      Highway Projects Fund.
             40          (2) The fund consists of monies generated from the following revenue sources:
             41          (a) any voluntary contributions received for new construction, major renovations, and
             42      improvements to state highways within a county of the first class;
             43          (b) the portion of the sales and use tax described in Subsection 59-12-502 (5)(a)
             44      deposited in or transferred to the fund;
             45          (c) the portion of the sales and use tax described in Subsection 59-12-1703 (4)(a)(ii)
             46      and required by Subsection 59-12-1703 (7)(b)(ii) to be deposited in or transferred to the fund;
             47      and
             48          (d) a portion of the local option highway construction and transportation corridor
             49      preservation fee imposed in a county of the first class under Section 41-1a-1222 deposited in or
             50      transferred to the fund.
             51          (3) (a) The fund shall earn interest.
             52          (b) All interest earned on fund monies shall be deposited into the fund.
             53          (4) The executive director shall use fund monies only:
             54          (a) to pay debt service and bond issuance costs for bonds issued under Sections
             55      63B-16-102 and 63B-18-402 ;
             56          (b) for right-of-way acquisition, new construction, major renovations, and



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             57
     improvements to state highways within a county of the first class and to pay any debt service
             58      and bond issuance costs related to those projects;
             59          (c) for fiscal year 2008-09 only, to pay for or to provide funds to a municipality or
             60      county to pay for right-of-way acquisition, construction, reconstruction, renovations, and
             61      improvements to highways described in Subsection 63B-16-102 (3); and
             62          (d) for fiscal year 2009-10 only, to pay for or to provide funds to a municipality or
             63      county to pay for right-of-way acquisition, construction, reconstruction, renovations, and
             64      improvements to highways described in Subsection 63B-18-402 (2).
             65          [(5) (a) For fiscal years beginning with fiscal year 2010-11 and ending with fiscal year
             66      2012-13, the executive director shall use at least 20% of fund monies available that are not
             67      required to pay principal, interest, and issuance costs of bonds issued under Sections
             68      63B-16-102 and 63B-18-402 to pay for:]
             69          [(i) east-west transportation route improvements in a county of the first class; and]
             70          [(ii) state highway capacity improvement and congestion mitigation projects in a
             71      county of the first class.]
             72          [(b) For a fiscal year beginning on or after July 1, 2013, the executive director shall use
             73      at least 25% of fund monies available that are not required to pay principal, interest, and
             74      issuance costs of bonds issued under Sections 63B-16-102 and 63B-18-402 to pay for:]
             75          [(i) east-west transportation route improvements in a county of the first class; and]
             76          [(ii) state highway capacity improvement and congestion mitigation projects in a
             77      county of the first class.]
             78          [(6)] (5) The revenues described in Subsections (2)(b), (c), and (d) that are deposited in
             79      the fund and bond proceeds from bonds issued under Sections 63B-16-102 and 63B-18-402 are
             80      considered a local matching contribution for the purposes described under Section 72-2-123 .
             81          [(7)] (6) The additional administrative costs of the department to administer this fund
             82      shall be paid from the monies in the fund.
             83          (7) Notwithstanding any statutory or other restrictions on the use or expenditure of the
             84      revenue sources deposited into this fund, the Department of Transportation may use the money
             85      in this fund for any of the purposes detailed in Subsection (4).
             86          Section 2. Section 72-2-121.3 is enacted to read:
             87          72-2-121.3. Special revenue fund -- 2010 Salt Lake County Revenue Bonds



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             88
     Sinking Fund.
             89          (1) There is created a special revenue fund within the County of the First Class State
             90      Highway Projects Fund entitled "2010 Salt Lake County Revenue Bond Sinking Fund."
             91          (2) The fund consists of monies transferred into the fund from the County of the First
             92      Class State Highway Projects Fund.
             93          (3) (a) The fund shall earn interest.
             94          (b) All interest earned on fund monies shall be deposited into the fund.
             95          (4) (a) The director of the Division of Finance may use fund monies only as provided
             96      in this section.
             97          (b) The director of the Division of Finance may not distribute any money from the fund
             98      under this section until the director has received a formal opinion from the attorney general that
             99      Salt Lake County has entered into a binding agreement with the state of Utah containing all of
             100      the terms required by Section 72-2-121.4 .
             101          (c) Except as provided in Subsection (4)(b), and until the bonds issued by Salt Lake
             102      County as provided in the interlocal agreement required by Section 72-2-121.4 are paid off, on
             103      July 1 of each year beginning July 1, 2011, the director of the Division of Finance shall transfer
             104      from the County of the First Class State Highway Projects Fund to the 2010 Salt Lake County
             105      Revenue Bond Sinking Fund the amount certified by Salt Lake County that is necessary to pay:
             106          (i) up to two times the debt service requirement necessary to pay debt service on the
             107      revenue bonds issued by Salt Lake County for that fiscal year; and
             108          (ii) any additional amounts necessary to pay costs of issuance, pay capitalized interest,
             109      and fund any debt service reserve requirements.
             110          (d) Except as provided in Subsection (4)(b), and until the bonds issued by Salt Lake
             111      County as provided in the interlocal agreement required by Section 72-2-121.4 are paid off, the
             112      director of the Division of Finance shall, upon request from Salt Lake County, transfer to Salt
             113      Lake County or its designee from the 2010 Salt Lake County Revenue Bond Sinking Fund the
             114      amount certified by Salt Lake County as necessary to pay:
             115          (i) the debt service on the revenue bonds issued by Salt Lake County as provided in the
             116      interlocal agreement required by Section 72-2-121.4 ; and
             117          (ii) any additional amounts necessary to pay costs of issuance, pay capitalized interest,
             118      and fund any debt service reserve requirements.



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House Floor Amendments 3-11-2010 le/sch
             119
         (5) Any money remaining in the 2010 Salt Lake County Revenue Bond Sinking Fund
             120      at the end of the fiscal year lapses to the County of the First Class State Highway Projects
             121      Fund.
             122          Section 3. Section 72-2-121.4 is enacted to read:
             123          72-2-121.4. 2010 interlocal agreement governing state highway projects in Salt
             124      Lake County.
             125          (1) Under the direction of the attorney general, the state of Utah and Salt Lake County
             126      may enter into an interlocal agreement that includes, at minimum, the provisions specified in
             127      this section.
             128          (2) The attorney general shall ensure that, in the agreement, Salt Lake County
             129      covenants to:
             130          (a) issue revenue bonds in an amount generating proceeds of at least $77,000,000,
             131      together with additional amounts necessary to pay costs of issuance, pay capitalized interest,
             132      and fund any debt service reserve requirements, and secured by revenues received from the
             133      state of Utah under Section 72-2-121.3 ; and
             134          (b) transfer at least $68,500,000 to the Department of Transportation to be used for
             135      state highway projects in Salt Lake County as provided in the interlocal agreement; and
             136          (c) use or transfer to a municipality to use $8,500,000 to pay all or part of the costs of
             137      the following highway construction projects in Salt Lake County in the following amounts:
             138          (i) $2,000,000 to Salt Lake County for 2300 East in Salt Lake County H. [ and Holladay
             139      City
] .H
;
             140          (ii) $3,500,000 to Salt Lake City for North Temple;
             141          (iii) $1,500,000 to Murray City for 4800 South; and
             142          (iv) $1,500,000 to Riverton City 13400 South -- 4000 West to 4570 West.
             143          (3) The attorney general shall ensure that, in the agreement, the state of Utah covenants
             144      to:
             145          (a) use the money transferred by Salt Lake County under Subsection (2)(b) to pay all or
             146      part of the costs of the following state highway construction or reconstruction projects within
             147      Salt Lake County:
             148          (i) 5400 South -- Bangerter Highway to 4000 West;
             149          (ii) Bangerter Highway at SR-201;



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             150
         (iii) 12300 South at State Street;
             151          (iv) Bangerter Highway at 6200 South;
             152          (v) Bangerter Highway at 7000 South;
             153          (vi) Bangerter Highway at 3100 South;
             154          (vii) 5400 South -- 4000 West to past 4800 West;
             155          (viii) 9400 South and Wasatch Boulevard; and
             156          (ix) I-215 West Interchange -- 3500 South to 3800 South and ramp work;
             157          (b) widen and improve US-89 between 7200 South and 9000 South with available
             158      highway funding identified by the commission; and
             159          (c) transfer to Salt Lake County or its designee from the 2010 Salt Lake County
             160      Revenue Bond Sinking Fund the amount certified by Salt Lake County as necessary to pay:
             161          (i) the debt service on the revenue bonds issued by Salt Lake County; and
             162          (ii) any additional amounts necessary to pay costs of issuance, pay capitalized interest,
             163      and fund any debt service reserve requirements.
             164          (4) The costs under Subsections (2)(c) and (3)(a) may include the cost of acquiring
             165      land, interests in land, easements and rights-of-way, improving sites, and making all
             166      improvements necessary, incidental, or convenient to the facilities and all related engineering,
             167      architectural, and legal fees.
             168          (5) In preparing the agreement required by this section, the attorney general and Salt
             169      Lake County shall:
             170          (a) review each existing interlocal agreement with Salt Lake County concerning Salt
             171      Lake County revenues received by the state for state highway projects within Salt Lake County;
             172      and
             173          (b) as necessary, modify those agreements or draft a new interlocal agreement
             174      encompassing all of the provisions necessary to reflect the state's and Salt Lake County's
             175      obligations for those revenues and projects.


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