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First Substitute S.B. 164

Senator Jerry W. Stevenson proposes the following substitute bill:


             1     
TRANSPORTATION FUNDING AMENDMENTS

             2     
2012 GENERAL SESSION

             3     
STATE OF UTAH

             4     
Chief Sponsor: Jerry W. Stevenson

             5     
House Sponsor: Wayne A. Harper

             6     
             7      LONG TITLE
             8      General Description:
             9          This bill modifies the Transportation Code by amending provisions relating to funding
             10      for highway projects within Salt Lake County.
             11      Highlighted Provisions:
             12          This bill:
             13          .    provides that if project savings are identified by the Department of Transportation
             14      from certain projects, and if the use of funds is not in violation of any agreement,
             15      the Department of Transportation shall provide $3,000,000 to West Valley City to
             16      fund certain highway improvements;
             17          .    provides that if project savings are identified by the Department of Transportation,
             18      and if the use of funds is not in violation of any agreement, the Department of
             19      Transportation shall provide $1,100,000 of the funds to West Jordan City for certain
             20      highway improvements; and
             21          .    provides that a municipality receiving project funds shall certify that it will use the
             22      funds provided solely for the specified projects.
             23      Money Appropriated in this Bill:
             24          None
             25      Other Special Clauses:


             26          None
             27      Utah Code Sections Affected:
             28      AMENDS:
             29          72-2-121, as last amended by Laws of Utah 2010, Chapters 168, 263, and 278
             30          72-2-121.4, as last amended by Laws of Utah 2011, Chapter 225
             31     
             32      Be it enacted by the Legislature of the state of Utah:
             33          Section 1. Section 72-2-121 is amended to read:
             34           72-2-121. County of the First Class State Highway Projects Fund.
             35          (1) There is created a special revenue fund within the Transportation Fund known as
             36      the "County of the First Class State Highway Projects Fund."
             37          (2) The fund consists of money generated from the following revenue sources:
             38          (a) any voluntary contributions received for new construction, major renovations, and
             39      improvements to state highways within a county of the first class;
             40          (b) the portion of the sales and use tax described in Subsection 59-12-2214 (3)(b)
             41      deposited in or transferred to the fund;
             42          (c) the portion of the sales and use tax described in Subsection 59-12-2217 (2)(b) and
             43      required by Subsection 59-12-2217 (8)(b) to be deposited in or transferred to the fund; and
             44          (d) a portion of the local option highway construction and transportation corridor
             45      preservation fee imposed in a county of the first class under Section 41-1a-1222 deposited in or
             46      transferred to the fund.
             47          (3) (a) The fund shall earn interest.
             48          (b) All interest earned on fund money shall be deposited into the fund.
             49          (4) The executive director shall use the fund money only:
             50          (a) to pay debt service and bond issuance costs for bonds issued under Sections
             51      63B-16-102 and 63B-18-402 ;
             52          (b) for right-of-way acquisition, new construction, major renovations, and
             53      improvements to state highways within a county of the first class and to pay any debt service
             54      and bond issuance costs related to those projects;
             55          (c) for fiscal year 2008-09 only, to pay for or to provide funds to a municipality or
             56      county to pay for right-of-way acquisition, construction, reconstruction, renovations, and


             57      improvements to highways described in Subsection 63B-16-102 (3); [and]
             58          (d) for fiscal year 2009-10 only, to pay for or to provide funds to a municipality or
             59      county to pay for right-of-way acquisition, construction, reconstruction, renovations, and
             60      improvements to highways described in Subsection 63B-18-402 (2)[.]; and
             61          (e) for fiscal year 2012-13 only, to pay for or to provide funds to a municipality or
             62      county to pay for a portion of right-of-way acquisition, construction, reconstruction,
             63      renovations, and improvements to highways described in Subsections 72-2-121.4 (7) and (8).
             64          (5) The revenues described in Subsections (2)(b), (c), and (d) that are deposited in the
             65      fund and bond proceeds from bonds issued under Sections 63B-16-102 and 63B-18-402 are
             66      considered a local matching contribution for the purposes described under Section 72-2-123 .
             67          (6) The additional administrative costs of the department to administer this fund shall
             68      be paid from money in the fund.
             69          (7) Notwithstanding any statutory or other restrictions on the use or expenditure of the
             70      revenue sources deposited into this fund, the Department of Transportation may use the money
             71      in this fund for any of the purposes detailed in Subsection (4).
             72          Section 2. Section 72-2-121.4 is amended to read:
             73           72-2-121.4. 2010 interlocal agreement governing state highway projects in Salt
             74      Lake County.
             75          (1) Under the direction of the attorney general, the state of Utah and Salt Lake County
             76      may enter into an interlocal agreement that includes, at minimum, the provisions specified in
             77      this section.
             78          (2) The attorney general shall ensure that, in the agreement, Salt Lake County
             79      covenants to:
             80          (a) issue revenue bonds in an amount generating proceeds of at least $77,000,000,
             81      together with additional amounts necessary to pay costs of issuance, pay capitalized interest,
             82      and fund any debt service reserve requirements, and secured by revenues received from the
             83      state of Utah under Section 72-2-121.3 ;
             84          (b) transfer at least $68,500,000 to the Department of Transportation to be used for
             85      state highway projects in Salt Lake County as provided in the interlocal agreement; and
             86          (c) use or transfer to a municipality to use $8,500,000 to pay all or part of the costs of
             87      the following highway construction projects in Salt Lake County in the following amounts:


             88          (i) $2,000,000 to Salt Lake County for 2300 East in Salt Lake County;
             89          (ii) $3,500,000 to Salt Lake City for North Temple;
             90          (iii) $1,500,000 to Murray City for 4800 South; and
             91          (iv) $1,500,000 to Riverton City for 13400 South -- 4000 West to 4570 West.
             92          (3) The attorney general shall ensure that, in the agreement, the state of Utah covenants
             93      to:
             94          (a) use the money transferred by Salt Lake County under Subsection (2)(b) to pay all or
             95      part of the costs of the following state highway construction or reconstruction projects within
             96      Salt Lake County:
             97          (i) 5400 South -- Bangerter Highway to 4000 West;
             98          (ii) Bangerter Highway at SR-201;
             99          (iii) 12300 South at State Street;
             100          (iv) Bangerter Highway at 6200 South;
             101          (v) Bangerter Highway at 7000 South;
             102          (vi) Bangerter Highway at 3100 South;
             103          (vii) 5400 South -- 4000 West to past 4800 West;
             104          (viii) 9400 South and Wasatch Boulevard; and
             105          (ix) I-215 West Interchange -- 3500 South to 3800 South and ramp work;
             106          (b) widen and improve US-89 between 7200 South and 9000 South with available
             107      highway funding identified by the commission; and
             108          (c) transfer to Salt Lake County or its designee from the 2010 Salt Lake County
             109      Revenue Bond Sinking Fund the amount certified by Salt Lake County as necessary to pay:
             110          (i) the debt service on the revenue bonds issued by Salt Lake County; and
             111          (ii) any additional amounts necessary to pay costs of issuance, pay capitalized interest,
             112      and fund any debt service reserve requirements.
             113          (4) The costs under Subsections (2)(c) and (3)(a) may include the cost of acquiring
             114      land, interests in land, easements and rights-of-way, improving sites, and making all
             115      improvements necessary, incidental, or convenient to the facilities and all related engineering,
             116      architectural, and legal fees.
             117          (5) In preparing the agreement required by this section, the attorney general and Salt
             118      Lake County shall:


             119          (a) review each existing interlocal agreement with Salt Lake County concerning Salt
             120      Lake County revenues received by the state for state highway projects within Salt Lake County;
             121      and
             122          (b) as necessary, modify those agreements or draft a new interlocal agreement
             123      encompassing all of the provisions necessary to reflect the state of Utah's and Salt Lake
             124      County's obligations for those revenues and projects.
             125          (6) If project savings are identified by the Department of Transportation from the funds
             126      provided to the Department of Transportation as described in Subsection (2)(b) and if the use
             127      of funds is not in violation of any agreement, the Department of Transportation shall provide
             128      $1,000,000 of the funds described in Subsection (2)(b) to Draper City to pay for highway
             129      improvements to 13490 South.
             130          (7) If project savings are identified from the funds provided to the Department of
             131      Transportation as described in Subsection (2)(b) and if the use of funds is not in violation of
             132      any agreement, the Department of Transportation shall provide $3,000,000 of the funds
             133      described in Subsection (2)(b) and from funds in the County of the First Class State Highway
             134      Projects Fund created by Section 72-2-121 to fund the following highway projects:
             135          (a) $2,000,000 to West Valley City to pay for highway improvements to SR-201
             136      Frontage Road at Bangerter Highway and associated roads to ease traffic flow onto Bangerter
             137      Highway between SR-201 and Lake Park Boulevard; and
             138          (b) $1,000,000 to West Valley City for improvements to SR-201 Frontage Road at
             139      7200 West.
             140          (8) If project savings are identified by the Department of Transportation from the funds
             141      provided to the Department of Transportation as described in Subsection (2)(b) and if the use
             142      of funds is not in violation of any agreement, the Department of Transportation shall provide
             143      $1,100,000 of the funds described in Subsection (2)(b) and from funds in the County of the
             144      First Class State Highway Projects Fund created by Section 72-2-121 to West Jordan City for
             145      highway improvements on 4000 West from 7800 South to Old Bingham Highway.
             146          (9) (a) (i) Before providing funds to a municipality or county under Subsections (7) and
             147      (8), the Department of Transportation shall obtain from the municipality or county:
             148          (A) a written certification signed by the county or city mayor or the mayor's designee
             149      certifying that the municipality or county will use the funds provided under Subsections (7) and


             150      (8) solely for the projects described in Subsections (7) and (8); and
             151          (B) other documents necessary to protect the state and the bondholders and to ensure
             152      that all legal requirements are met.
             153          (ii) Except as provided in Subsection (9)(b), by January 1 of each year, the
             154      municipality or county receiving funds described in Subsections (7) and (8) shall submit to the
             155      Department of Transportation a statement of cash flow for the current fiscal year detailing the
             156      funds necessary to pay project costs for the projects described in Subsections (7) and (8).
             157          (iii) Except as provided in Subsection (4)(b), after receiving the statement required
             158      under Subsection (9)(a)(ii) and after July 1, the Department of Transportation shall provide
             159      funds to the municipality or county necessary to pay project costs for the current fiscal year
             160      based upon the statement of cash flow submitted by the municipality or county.
             161          (iv) Upon the financial close of each project described in Subsections (7) and (8), the
             162      municipality or county receiving funds under Subsections (7) and (8) shall submit a statement
             163      to the Department of Transportation detailing the expenditure of funds received for each
             164      project.
             165          (b) For calendar year 2012 only:
             166          (i) the municipality or county shall submit to the Department of Transportation a
             167      statement of cash flow as provided in Subsection (9)(a)(ii) as soon as possible; and
             168          (ii) the Department of Transportation shall provide funds to the municipality or county
             169      necessary to pay project costs based upon the statement of cash flow.
             170          (c) The commission or the state treasurer may make any statement of intent relating to
             171      a reimbursement under this Subsection (9) that is necessary or desirable to comply with federal
             172      tax law.


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