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First Substitute H.B. 173

This document includes House Floor Amendments incorporated into the bill on Thu, Mar 1, 2012 at 4:07 PM by lerror. -->

Representative Brad L. Dee proposes the following substitute bill:


             1     
TRANSPORTATION FUNDING MODIFICATIONS

             2     
2012 GENERAL SESSION

             3     
STATE OF UTAH

             4     
Chief Sponsor: Brad L. Dee

             5     
Senate Sponsor: Ralph Okerlund

             6     
             7      LONG TITLE
             8      General Description:
             9          This bill modifies provisions relating to transportation funding.
             10      Highlighted Provisions:
             11          This bill:
             12          .    provides that county option sales and use tax revenues for transportation may be
             13      used for a project that is a collector road in a county of the second class in certain
             14      circumstances;
             15          .    reduces the amount of bonds that may be issued to pay for the costs of construction,
             16      reconstruction, renovations, or improvements to certain highway projects;
             17          .    provides that a portion of certain bond proceeds shall be provided to the Department
             18      of Transportation to pay for, or to provide funds to, a municipality or county to pay
             19      for the costs of right-of-way acquisition, construction, reconstruction, renovations,
             20      or improvements to certain highways;
             21          .    provides that debt service and bond issuance costs for certain bonds that have been
             22      issued shall be paid by the Transportation Investment Fund of 2005 and the County
             23      of the First Class State Highways Fund; and
             24          .    makes technical changes.
             25      Money Appropriated in this Bill:


             26          None
             27      Other Special Clauses:
             28          This bill takes effect on July 1, 2012.
             29      Utah Code Sections Affected:
             30      AMENDS:
             31          59-12-2217, as enacted by Laws of Utah 2010, Chapter 263
             32          63B-18-401, as enacted by Laws of Utah 2009, Chapter 241
             33          72-2-121, as last amended by Laws of Utah 2010, Chapters 168, 263, and 278
             34          72-2-121.3, as enacted by Laws of Utah 2010, Chapter 168
             35          72-2-124, as last amended by Laws of Utah 2011, Chapter 189
             36     
             37      Be it enacted by the Legislature of the state of Utah:
             38          Section 1. Section 59-12-2217 is amended to read:
             39           59-12-2217. County option sales and use tax for transportation -- Base -- Rate --
             40      Written prioritization process -- Approval by county legislative body.
             41          (1) Subject to the other provisions of this part, a county legislative body may impose a
             42      sales and use tax of up to .25% on the transactions described in Subsection 59-12-103 (1)
             43      within the county, including the cities and towns within the county.
             44          (2) Subject to Subsections (3) through (8) and Section 59-12-2207 , the revenues
             45      collected from a sales and use tax under this section may only be expended for:
             46          (a) a project or service:
             47          (i) relating to a regionally significant transportation facility for the portion of the
             48      project or service that is performed within the county;
             49          (ii) for new capacity or congestion mitigation if the project or service is performed
             50      within a county:
             51          (A) of the first or second class; or
             52          (B) if that county is part of an area metropolitan planning organization; and
             53          (iii) that is on a priority list:
             54          (A) created by the county's council of governments in accordance with Subsection (7);
             55      and
             56          (B) approved by the county legislative body in accordance with Subsection (7);


             57          (b) corridor preservation for a project or service described in Subsection (2)(a) as
             58      provided in Subsection (8); or
             59          (c) debt service or bond issuance costs related to a project or service described in
             60      Subsection (2)(a)(i) or (ii).
             61          (3) If a project or service described in Subsection (2) is for:
             62          (a) a principal arterial highway or a minor arterial highway in a county of the first or
             63      second class or a collector road in a county of the second class, that project or service shall be
             64      part of the:
             65          (i) county and municipal master plan; and
             66          (ii) (A) statewide long-range plan; or
             67          (B) regional transportation plan of the area metropolitan planning organization if a
             68      metropolitan planning organization exists for the area; or
             69          (b) a fixed guideway or an airport, that project or service shall be part of the regional
             70      transportation plan of the area metropolitan planning organization if a metropolitan planning
             71      organization exists for the area.
             72          (4) In a county of the first or second class, a regionally significant transportation
             73      facility project or service described in Subsection (2)(a)(i) shall have a funded year priority
             74      designation on a Statewide Transportation Improvement Program and Transportation
             75      Improvement Program if the project or service described in Subsection (2)(a)(i) is:
             76          (a) a principal arterial highway;
             77          (b) a minor arterial highway; [or]
             78          (c) a collector road in a county of the second class; or
             79          [(c)] (d) a major collector highway in a rural area.
             80          (5) Of the revenues collected from a sales and use tax imposed under this section
             81      within a county of the first or second class, 25% or more shall be expended for the purpose
             82      described in Subsection (2)(b).
             83          (6) (a) As provided in this Subsection (6), a council of governments shall:
             84          (i) develop a written prioritization process for the prioritization of projects to be funded
             85      by revenues collected from a sales and use tax under this section;
             86          (ii) create a priority list of regionally significant transportation facility projects or
             87      services described in Subsection (2)(a)(i) in accordance with Subsection (7); and


             88          (iii) present the priority list to the county legislative body for approval in accordance
             89      with Subsection (7).
             90          (b) The written prioritization process described in Subsection (6)(a)(i) shall include:
             91          (i) a definition of the type of projects to which the written prioritization process
             92      applies;
             93          (ii) subject to Subsection (6)(c), the specification of a weighted criteria system that the
             94      council of governments will use to rank proposed projects and how that weighted criteria
             95      system will be used to determine which proposed projects will be prioritized;
             96          (iii) the specification of data that is necessary to apply the weighted criteria system;
             97          (iv) application procedures for a project to be considered for prioritization by the
             98      council of governments; and
             99          (v) any other provision the council of governments considers appropriate.
             100          (c) The weighted criteria system described in Subsection (6)(b)(ii) shall include the
             101      following:
             102          (i) the cost effectiveness of a project;
             103          (ii) the degree to which a project will mitigate regional congestion;
             104          (iii) the compliance requirements of applicable federal laws or regulations;
             105          (iv) the economic impact of a project;
             106          (v) the degree to which a project will require tax revenues to fund maintenance and
             107      operation expenses; and
             108          (vi) any other provision the council of governments considers appropriate.
             109          (d) A council of governments of a county of the first or second class shall submit the
             110      written prioritization process described in Subsection (6)(a)(i) to the Executive Appropriations
             111      Committee for approval prior to taking final action on:
             112          (i) the written prioritization process; or
             113          (ii) any proposed amendment to the written prioritization process.
             114          (7) (a) A council of governments shall use the weighted criteria system adopted in the
             115      written prioritization process developed in accordance with Subsection (6) to create a priority
             116      list of regionally significant transportation facility projects or services for which revenues
             117      collected from a sales and use tax under this section may be expended.
             118          (b) Before a council of governments may finalize a priority list or the funding level of a


             119      project, the council of governments shall conduct a public meeting on:
             120          (i) the written prioritization process; and
             121          (ii) the merits of the projects that are prioritized as part of the written prioritization
             122      process.
             123          (c) A council of governments shall make the weighted criteria system ranking for each
             124      project prioritized as part of the written prioritization process publicly available before the
             125      public meeting required by Subsection (7)(b) is held.
             126          (d) If a council of governments prioritizes a project over another project with a higher
             127      rank under the weighted criteria system, the council of governments shall:
             128          (i) identify the reasons for prioritizing the project over another project with a higher
             129      rank under the weighted criteria system at the public meeting required by Subsection (7)(b);
             130      and
             131          (ii) make the reasons described in Subsection (7)(d)(i) publicly available.
             132          (e) Subject to Subsections (7)(f) and (g), after a council of governments finalizes a
             133      priority list in accordance with this Subsection (7), the council of governments shall:
             134          (i) submit the priority list to the county legislative body for approval; and
             135          (ii) obtain approval of the priority list from a majority of the members of the county
             136      legislative body.
             137          (f) A council of governments may only submit one priority list per calendar year to the
             138      county legislative body.
             139          (g) A county legislative body may only consider and approve one priority list submitted
             140      under Subsection (7)(e) per calendar year.
             141          (8) (a) Except as provided in Subsection (8)(b), revenues collected from a sales and use
             142      tax under this section that a county allocates for a purpose described in Subsection (2)(b) shall
             143      be:
             144          (i) deposited in or transferred to the Local Transportation Corridor Preservation Fund
             145      created by Section 72-2-117.5 ; and
             146          (ii) expended as provided in Section 72-2-117.5 .
             147          (b) In a county of the first class, revenues collected from a sales and use tax under this
             148      section that a county allocates for a purpose described in Subsection (2)(b) shall be:
             149          (i) deposited in or transferred to the County of the First Class State Highway Projects


             150      Fund created by Section 72-2-121 ; and
             151          (ii) expended as provided in Section 72-2-121 .
             152          Section 2. Section 63B-18-401 is amended to read:
             153           63B-18-401. Highway bonds -- Maximum amount -- Use of proceeds for highway
             154      projects.
             155          (1) (a) The total amount of bonds issued under this section may not exceed
             156      [$2,207,000,000] $2,077,000,000.
             157          (b) When the Department of Transportation certifies to the commission that the
             158      requirements of Subsection 72-2-124 (6) have been met and certifies the amount of bond
             159      proceeds that it needs to provide funding for the projects described in Subsection (2) for the
             160      next fiscal year, the commission may issue and sell general obligation bonds in an amount
             161      equal to the certified amount plus costs of issuance.
             162          (2) [(a) Proceeds] Except as provided in Subsections (3)(b) and (4), proceeds from the
             163      issuance of bonds shall be provided to the Department of Transportation to pay all or part of
             164      the costs of the following state highway construction or reconstruction projects:
             165          [(i)] (a) Interstate 15 reconstruction in Utah County;
             166          [(ii)] (b) the Mountain View Corridor;
             167          [(iii)] (c) the Southern Parkway; and
             168          [(iv)] (d) state and federal highways prioritized by the Transportation Commission
             169      through:
             170          [(A)] (i) the prioritization process for new transportation capacity projects adopted
             171      under Section 72-1-304 ; or
             172          [(B)] (ii) the state highway construction program.
             173          (3) (a) Seventy million dollars of the bond proceeds issued under this section shall be
             174      provided to the Department of Transportation.
             175          (b) The Department of Transportation shall use bond proceeds and the funds provided
             176      to it under Section 72-2-124 to pay for the costs of right-of-way acquisition, construction,
             177      reconstruction, renovations, or improvements to the following highways:
             178          (i) $35 million to add highway capacity on I-15 south of the Spanish Fork Main Street
             179      interchange to Payson;
             180          (ii) $28 million for improvements to Riverdale Road in Ogden;


             181          (iii) $1 million for intersection improvements on S.R. 36 at South Mountain Road;
             182          (iv) $2 million for capacity enhancements on S.R. 248 between Sidewinder Drive and
             183      Richardson Flat Road;
             184          (v) $12 million for Vineyard Connector from 800 North Geneva Road to Lake Shore
             185      Road;
             186          (vi) $7 million for 2600 South interchange modifications in Woods Cross;
             187          (vii) $9 million for reconfiguring the 1100 South interchange on I-15 in Box Elder
             188      County;
             189          (viii) $18 million for the Provo west-side connector; and
             190          (ix) $8 million for interchange modifications on I-15 in the Layton area.
             191          (4) (a) Thirty million dollars of the bond proceeds issued under this section shall be
             192      provided to the Department of Transportation.
             193          (b) The Department of Transportation shall use bond proceeds and the funds under
             194      Section 72-2-121 to pay for, or to provide funds to, a municipality or county to pay for the
             195      costs of right-of-way acquisition, construction, reconstruction, renovations, or improvements to
             196      the following highway or transit projects in Salt Lake County:
             197          (i) $4,000,000 to Taylorsville City for bus rapid transit planning on 4700 South;
             198          (ii) $1,250,000 to Herriman City for highway improvements to the Salt Lake
             199      Community College Road;
             200          (iii) $5,300,000 to West Jordan City for highway improvements on 5600 West from
             201      6200 South to 8600 South;
             202          (iv) $2,300,000 to Sandy City for highway improvements on Monroe Street;
             203          (v) $3,000,000 to Draper City for highway improvements to 13490 South from 200
             204      West to 700 West;
             205          (vi) $1,200,000 to Murray City for highway improvements to 5900 South from State
             206      Street to 900 East;
             207          (vii) $1,500,000 to South Salt Lake City for intersection improvements on West
             208      Temple, Main Street, and State Street;
             209          (viii) $2,000,000 to Salt Lake County for highway improvements to 5400 South from
             210      5600 West to Mountain View Corridor;
             211          (ix) $3,000,000 to West Valley City for highway improvements to 6400 West from


             212      Parkway Boulevard to SR-201 Frontage Road;
             213          (x) $4,000,000 to Salt Lake City for highway improvements to 700 South from 2800
             214      West to 5600 West;
             215          (xi) $1,250,000 to Riverton City for highway improvements to 4570 West from 12600
             216      South to Riverton Boulevard; and
             217          (xii) $1,200,000 to Cottonwood Heights for improvements to Union Park Avenue from
             218      I-215 exit south to Creek Road and Wasatch Boulevard and Big Cottonwood Canyon.
             219          (c) (i) Before providing funds to a municipality or county under this Subsection (4), the
             220      Department of Transportation shall obtain from the municipality or county:
             221          (A) a written certification signed by the county or city mayor or the mayor's designee
             222      certifying that the municipality or county will use the funds provided under this Subsection (4)
             223      solely for the projects described in Subsection (4)(b); and
             224          (B) other documents necessary to protect the state H. [ , ] and .H the bondholders
             224a      H. [ , ] .H and to ensure that
             225      all legal requirements are met.
             226          (ii) Except as provided in Subsection (4)(d), by January 1 of each year, the
             227      municipality or county receiving funds described in this Subsection (4) shall submit to the
             228      Department of Transportation a statement of cash flow for the current fiscal year detailing the
             229      funds necessary to pay project costs for the projects described in Subsection (4)(b).
             230          (iii) Except as provided in Subsection (4)(a), after receiving the statement required
             231      under Subsection (4)(c)(ii) and after July 1, the Department of Transportation shall provide
             232      funds to the municipality or county necessary to pay project costs for the current fiscal year
             233      based upon the statement of cash flow submitted by the municipality or county.
             234          (iv) Upon the financial close of each project described in Subsection (4)(b), the
             235      municipality or county receiving funds under this Subsection (4) shall submit a statement to the
             236      Department of Transportation detailing the expenditure of funds received for each project.
             237          (d) For calendar year 2012 only:
             238          (i) the municipality or county shall submit to the Department of Transportation a
             239      statement of cash flow as provided in Subsection (4)(c)(ii) as soon as possible; and
             240          (ii) the Department of Transportation shall provide funds to the municipality or county
             241      necessary to pay project costs based upon the statement of cash flow.
             242          [(b)] (5) The costs under [Subsection (2)(a)] Subsections (2), (3), and (4) may include


             243      the cost of acquiring land, interests in land, easements and rights-of-way, improving sites, and
             244      making all improvements necessary, incidental, or convenient to the facilities, interest
             245      estimated to accrue on these bonds during the period to be covered by construction of the
             246      projects plus a period of six months after the end of the construction period, interest estimated
             247      to accrue on any bond anticipation notes issued under the authority of this title, and all related
             248      engineering, architectural, and legal fees.
             249          [(3)] (6) The commission or the state treasurer may make any statement of intent
             250      relating to a reimbursement that is necessary or desirable to comply with federal tax law.
             251          [(4)] (7) The Department of Transportation may enter into agreements related to the
             252      projects described in [Subsection (2)] Subsections (2), (3), and (4) before the receipt of
             253      proceeds of bonds issued under this section.
             254          (8) The Department of Transportation may enter into a new or amend an existing
             255      interlocal agreement related to the projects described in Subsections (3) and (4) to establish any
             256      necessary covenants or requirements not otherwise provided for by law.
             257          Section 3. Section 72-2-121 is amended to read:
             258           72-2-121. County of the First Class State Highway Projects Fund.
             259          (1) There is created a special revenue fund within the Transportation Fund known as
             260      the "County of the First Class State Highway Projects Fund."
             261          (2) The fund consists of money generated from the following revenue sources:
             262          (a) any voluntary contributions received for new construction, major renovations, and
             263      improvements to state highways within a county of the first class;
             264          (b) the portion of the sales and use tax described in Subsection 59-12-2214 (3)(b)
             265      deposited in or transferred to the fund;
             266          (c) the portion of the sales and use tax described in Subsection 59-12-2217 (2)(b) and
             267      required by Subsection 59-12-2217 (8)(b) to be deposited in or transferred to the fund; and
             268          (d) a portion of the local option highway construction and transportation corridor
             269      preservation fee imposed in a county of the first class under Section 41-1a-1222 deposited in or
             270      transferred to the fund.
             271          (3) (a) The fund shall earn interest.
             272          (b) All interest earned on fund money shall be deposited into the fund.
             273          (4) The executive director shall use the fund money only:


             274          (a) to pay debt service and bond issuance costs for bonds issued under Sections
             275      63B-16-102 and 63B-18-402 ;
             276          (b) for right-of-way acquisition, new construction, major renovations, and
             277      improvements to state highways within a county of the first class and to pay any debt service
             278      and bond issuance costs related to those projects;
             279          [(c) for fiscal year 2008-09 only, to pay for or to provide funds to a municipality or
             280      county to pay for right-of-way acquisition, construction, reconstruction, renovations, and
             281      improvements to highways described in Subsection 63B-16-102 (3); and]
             282          [(d) for fiscal year 2009-10 only, to pay for or to provide funds to a municipality or
             283      county to pay for right-of-way acquisition, construction, reconstruction, renovations, and
             284      improvements to highways described in Subsection 63B-18-402 (2).]
             285          (c) to transfer to the 2010 Salt Lake County Revenue Bond Sinking Fund created by
             286      Section 72-2-121.3 the amount required in Subsection 72-2-121.3 (4)(c) minus the amounts
             287      transferred in accordance with Subsection 72-2-124 (5)(a)(iv); and
             288          (d) to pay debt service and bond issuance costs for $30,000,000 of the bonds issued
             289      under Sections 63B-18-401 for the projects described in Subsection 63B-18-401 (4)(b).
             290          (5) The revenues described in Subsections (2)(b), (c), and (d) that are deposited in the
             291      fund and bond proceeds from bonds issued under Sections 63B-16-102 and 63B-18-402 are
             292      considered a local matching contribution for the purposes described under Section 72-2-123 .
             293          (6) The additional administrative costs of the department to administer this fund shall
             294      be paid from money in the fund.
             295          (7) Notwithstanding any statutory or other restrictions on the use or expenditure of the
             296      revenue sources deposited into this fund, the Department of Transportation may use the money
             297      in this fund for any of the purposes detailed in Subsection (4).
             298          Section 4. Section 72-2-121.3 is amended to read:
             299           72-2-121.3. Special revenue fund -- 2010 Salt Lake County Revenue Bonds
             300      Sinking Fund.
             301          (1) There is created a special revenue fund within the County of the First Class State
             302      Highway Projects Fund entitled "2010 Salt Lake County Revenue Bond Sinking Fund."
             303          (2) The fund consists of:
             304          (a) money transferred into the fund from the County of the First Class State Highway


             305      Projects Fund in accordance with Subsection 72-2-121 (4)(c); and
             306          (b) money transferred into the fund from the Transportation Investment Fund of 2005
             307      in accordance with Subsection 72-2-124 (5)(a)(iv).
             308          (3) (a) The fund shall earn interest.
             309          (b) All interest earned on fund money shall be deposited into the fund.
             310          (4) (a) The director of the Division of Finance may use fund money only as provided in
             311      this section.
             312          (b) The director of the Division of Finance may not distribute any money from the fund
             313      under this section until the director has received a formal opinion from the attorney general that
             314      Salt Lake County has entered into a binding agreement with the state of Utah containing all of
             315      the terms required by Section 72-2-121.4 .
             316          (c) Except as provided in Subsection (4)(b), and until the bonds issued by Salt Lake
             317      County as provided in the interlocal agreement required by Section 72-2-121.4 are paid off, on
             318      July 1 of each year beginning July 1, 2011, the director of the Division of Finance shall transfer
             319      from the County of the First Class State Highway Projects Fund and the Transportation
             320      Investment Fund of 2005 to the 2010 Salt Lake County Revenue Bond Sinking Fund the
             321      amount certified by Salt Lake County that is necessary to pay:
             322          (i) up to two times the debt service requirement necessary to pay debt service on the
             323      revenue bonds issued by Salt Lake County for that fiscal year; and
             324          (ii) any additional amounts necessary to pay costs of issuance, pay capitalized interest,
             325      and fund any debt service reserve requirements.
             326          (d) Except as provided in Subsection (4)(b), and until the bonds issued by Salt Lake
             327      County as provided in the interlocal agreement required by Section 72-2-121.4 are paid off, the
             328      director of the Division of Finance shall, upon request from Salt Lake County, transfer to Salt
             329      Lake County or its designee from the 2010 Salt Lake County Revenue Bond Sinking Fund the
             330      amount certified by Salt Lake County as necessary to pay:
             331          (i) the debt service on the revenue bonds issued by Salt Lake County as provided in the
             332      interlocal agreement required by Section 72-2-121.4 ; and
             333          (ii) any additional amounts necessary to pay costs of issuance, pay capitalized interest,
             334      and fund any debt service reserve requirements.
             335          (5) Any money remaining in the 2010 Salt Lake County Revenue Bond Sinking Fund


             336      at the end of the fiscal year lapses to the County of the First Class State Highway Projects
             337      Fund.
             338          Section 5. Section 72-2-124 is amended to read:
             339           72-2-124. Transportation Investment Fund of 2005.
             340          (1) There is created a special revenue fund entitled the Transportation Investment Fund
             341      of 2005.
             342          (2) The fund consists of money generated from the following sources:
             343          (a) any voluntary contributions received for the maintenance, construction,
             344      reconstruction, or renovation of state and federal highways;
             345          (b) appropriations made to the fund by the Legislature;
             346          (c) the sales and use tax revenues deposited into the fund in accordance with Section
             347      59-12-103 ; and
             348          (d) registration fees designated under Subsection 41-1a-1201 (7).
             349          (3) When the highway general obligation bonds have been paid off and the highway
             350      projects completed that are intended to be paid from revenues deposited in the Centennial
             351      Highway Fund Restricted Account as determined by the Executive Appropriations Committee
             352      under Subsection 72-2-118 (6)(d), the fund shall also consist of money generated from the
             353      following sources:
             354          (a) registration fees designated under Subsection 41-1a-1201 (6)(a); and
             355          (b) the sales and use tax amounts provided for in Section 59-12-103 .
             356          (4) (a) The fund shall earn interest.
             357          (b) All interest earned on fund money shall be deposited into the fund.
             358          (5) (a) Except as provided in Subsection (5)(b), the executive director may use fund
             359      money only to pay:
             360          (i) the costs of maintenance, construction, reconstruction, or renovation to state and
             361      federal highways prioritized by the Transportation Commission through the prioritization
             362      process for new transportation capacity projects adopted under Section 72-1-304 ;
             363          (ii) the costs of maintenance, construction, reconstruction, or renovation to the highway
             364      projects described in [Subsection] Subsections 63B-18-401 (2) and (3); [and]
             365          (iii) principal, interest, and issuance costs of bonds authorized by Section
             366      63B-18-401 [.] minus the costs paid from the County of the First Class State Highway Projects


             367      Fund in accordance with Subsection 72-2-121 (4)(d); and
             368          (iv) to transfer to the 2010 Salt Lake County Revenue Bond Sinking Fund created by
             369      Section 72-2-121.3 the amount certified by Salt Lake County in accordance with Subsection
             370      72-2-121.3 (4)(c) as necessary to pay the debt service on $30,000,000 of the revenue bonds
             371      issued by Salt Lake County.
             372          (b) The executive director may use fund money to exchange for an equal or greater
             373      amount of federal transportation funds to be used as provided in Subsection (5)(a).
             374          (6) (a) Before bonds authorized by Section 63B-18-401 may be issued in any fiscal
             375      year, the department and the commission shall appear before the Executive Appropriations
             376      Committee of the Legislature and present the amount of bond proceeds that the department
             377      needs to provide funding for the projects identified in Subsection 63B-18-401 (2) for the next
             378      fiscal year.
             379          (b) The Executive Appropriations Committee of the Legislature shall review and
             380      comment on the amount of bond proceeds needed to fund the projects.
             381          (7) The Division of Finance shall, from money deposited into the fund, transfer the
             382      amount of funds necessary to pay principal, interest, and issuance costs of bonds authorized by
             383      Section 63B-18-401 in the current fiscal year to the appropriate debt service or sinking fund.
             384          Section 6. Effective date.
             385          This bill takes effect on July 1, 2012.


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