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H.B. 11 Enrolled

             1     

LOCAL TRANSPORTATION CORRIDOR PRESERVATION

             2     
FUND AMENDMENTS

             3     
2013 GENERAL SESSION

             4     
STATE OF UTAH

             5     
Chief Sponsor: Bradley G. Last

             6     
Senate Sponsor: Evan J. Vickers

             7     
             8      LONG TITLE
             9      General Description:
             10          This bill modifies the Transportation Code by amending provisions relating to the Local
             11      Transportation Corridor Preservation Fund.
             12      Highlighted Provisions:
             13          This bill:
             14          .    provides that a county highway authority may use funds in the Local Transportation
             15      Corridor Preservation Fund for countywide transportation planning if the county's
             16      planning focus area is outside the boundaries of a metropolitan planning
             17      organization;
             18          .    provides that a county, city, or town that imposes a local option highway
             19      construction and transportation corridor preservation fee may elect to administer the
             20      funds allocated to that county, city, or town in the Local Transportation Corridor
             21      Preservation Fund as a revolving loan fund;
             22          .    requires a county, city, or town that elects to administer the funds allocated to that
             23      county, city, or town as a revolving loan fund to establish repayment conditions of
             24      the money to the fund from the specified project funds; and
             25          .    makes technical changes.
             26      Money Appropriated in this Bill:
             27          None
             28      Other Special Clauses:
             29          None


             30      Utah Code Sections Affected:
             31      AMENDS:
             32          72-2-117.5, as last amended by Laws of Utah 2011, Chapters 303 and 342
             33     
             34      Be it enacted by the Legislature of the state of Utah:
             35          Section 1. Section 72-2-117.5 is amended to read:
             36           72-2-117.5. Definitions -- Local Transportation Corridor Preservation Fund --
             37      Disposition of fund money.
             38          (1) As used in this section:
             39          (a) "Council of governments" means a decision-making body in each county composed
             40      of the county governing body and the mayors of each municipality in the county.
             41          (b) "Metropolitan planning organization" has the same meaning as defined in Section
             42      72-1-208.5 .
             43          (2) There is created the Local Transportation Corridor Preservation Fund within the
             44      Transportation Fund.
             45          (3) The fund shall be funded from the following sources:
             46          (a) a local option highway construction and transportation corridor preservation fee
             47      imposed under Section 41-1a-1222 ;
             48          (b) appropriations made to the fund by the Legislature;
             49          (c) contributions from other public and private sources for deposit into the fund;
             50          (d) all money collected from rents and sales of real property acquired with fund money;
             51          (e) proceeds from general obligation bonds, revenue bonds, or other obligations issued
             52      as authorized by Title 63B, Bonds;
             53          (f) the portion of the sales and use tax described in Subsection 59-12-2217 (2)(b) and
             54      required by Subsection 59-12-2217 (8)(a) to be deposited into the fund; and
             55          (g) sales and use tax revenues deposited into the fund in accordance with Section
             56      59-12-2218 .
             57          (4) (a) The fund shall earn interest.


             58          (b) All interest earned on fund money shall be deposited into the fund.
             59          (c) The State Tax Commission shall provide the department with sufficient data for the
             60      department to allocate the revenues:
             61          (i) provided under Subsection (3)(a) to each county imposing a local option highway
             62      construction and transportation corridor preservation fee under Section 41-1a-1222 ;
             63          (ii) provided under Subsection 59-12-2217 (2)(b) to each county imposing a county
             64      option sales and use tax for transportation; and
             65          (iii) provided under Subsection (3)(g) to each county of the second class or city or town
             66      within a county of the second class that imposes the sales and use tax authorized by Section
             67      59-12-2218 .
             68          (d) (i) The department shall annually allocate the interest earned on fund money to each
             69      county based on the proportionate amount of interest earned on each county's allocation of
             70      funds under Subsection (4)(c) on an average monthly balance basis.
             71          (ii) The initial annual allocation of fund interest shall include all interest earned on
             72      fund money since the creation of the fund.
             73          (e) The money allocated under Subsection (4)(c):
             74          (i) shall be used for the purposes provided in this section for each county, city, or town;
             75      [and]
             76          (ii) [are] is allocated to each county, city, or town as provided in this section[: (A)]
             77      with the condition that the state will not be charged for any asset purchased with the money
             78      allocated under Subsections (4)(c) and (d); and
             79          [(B) are] (iii) is considered a local matching contribution for the purposes described
             80      under Section 72-2-123 if used on a state highway.
             81          (f) Administrative costs of the department to implement this section shall be paid from
             82      the fund.
             83          (5) (a) The department shall authorize the expenditure of fund money to allow a
             84      highway authority to acquire real property or any interests in real property for state, county, and
             85      municipal highway corridors subject to:


             86          (i) money available in the fund to each county under Subsections (4)(c) and (d); and
             87          (ii) the provisions of this section.
             88          (b) Fund money may be used to pay interest on debts incurred in accordance with this
             89      section.
             90          (c) (i) (A) Fund money may be used to pay maintenance costs of properties acquired
             91      under this section but limited to a total of 5% of the purchase price of the property.
             92          (B) Any additional maintenance cost shall be paid from funds other than under this
             93      section.
             94          (C) Revenue generated by any property acquired under this section is excluded from
             95      the limitations under this Subsection (5)(c)(i).
             96          (ii) Fund money may be used to pay direct costs of acquisition of properties acquired
             97      under this section.
             98          (d) Fund money allocated under Subsections (4)(c) and (d) may be used by a county
             99      highway authority for countywide transportation planning if:
             100          (i) the [county is not included in] county's planning focus area is outside the boundaries
             101      of a metropolitan planning organization;
             102          (ii) the transportation planning is part of the county's continuing, cooperative, and
             103      comprehensive process for transportation planning, corridor preservation, right-of-way
             104      acquisition, and project programming;
             105          (iii) no more than four years allocation every 20 years to each county is used for
             106      transportation planning under this Subsection (5)(d); and
             107          (iv) the county otherwise qualifies to use the fund money as provided under this
             108      section.
             109          (e) (i) Subject to Subsection (11), fund money allocated under Subsections (4)(c) and
             110      (d) may be used by a county highway authority for transportation corridor planning that is part
             111      of the corridor elements of an ongoing work program of transportation projects.
             112          (ii) The transportation corridor planning under Subsection (5)(e)(i) shall be under the
             113      direction of:


             114          (A) the metropolitan planning organization if the county is within the boundaries of a
             115      metropolitan planning organization; or
             116          (B) the department if the county is not within the boundaries of a metropolitan
             117      planning organization.
             118          (f) (i) A county, city, or town that imposes a local option highway construction and
             119      transportation corridor preservation fee under Section 41-1a-1222 may elect to administer the
             120      funds allocated to that county, city, or town under Subsection (4)(c) as a revolving loan fund.
             121          (ii) If a county, city, or town elects to administer the funds allocated to that county,
             122      city, or town under Subsection (4)(c) as a revolving loan fund, a local highway authority shall:
             123          (A) apply to the department as required under this section for money from the fund
             124      created in this section for a specified transportation corridor project; and
             125          (B) repay the fund money authorized for the project to the fund.
             126          (iii) A county, city, or town that elects to administer the funds allocated to that county,
             127      city, or town under Subsection (4)(c) as a revolving loan fund shall establish repayment
             128      conditions of the money to the fund from the specified project funds.
             129          (6) (a) (i) The Local Transportation Corridor Preservation Fund shall be used to
             130      preserve highway corridors, promote long-term statewide transportation planning, save on
             131      acquisition costs, and promote the best interests of the state in a manner which minimizes
             132      impact on prime agricultural land.
             133          (ii) The Local Transportation Corridor Preservation Fund shall only be used to preserve
             134      a highway corridor that is right-of-way:
             135          (A) in a county of the first or second class for [a]:
             136          (I) a state highway;
             137          (II) a principal arterial highway as defined in Section 72-4-102.5 ;
             138          (III) a minor arterial highway as defined in Section 72-4-102.5 ; or
             139          (IV) a collector highway in an urban area as defined in Section 72-4-102.5 ; or
             140          (B) in a county of the third, fourth, fifth, or sixth class for [a]:
             141          (I) a state highway;


             142          (II) a principal arterial highway as defined in Section 72-4-102.5 ;
             143          (III) a minor arterial highway as defined in Section 72-4-102.5 ;
             144          (IV) a major collector highway as defined in Section 72-4-102.5 ; or
             145          (V) a minor collector road as defined in Section 72-4-102.5 .
             146          (iii) The Local Transportation Corridor Preservation Fund may not be used for a
             147      highway corridor that is primarily a recreational trail as defined under Section 79-5-102 .
             148          (b) (i) The department shall develop and implement a program to educate highway
             149      authorities on the objectives, application process, use, and responsibilities of the Local
             150      Transportation Corridor Preservation Fund as provided under this section to promote the most
             151      efficient and effective use of fund money including priority use on designated high priority
             152      corridor preservation projects.
             153          (ii) The department shall develop a model transportation corridor property acquisition
             154      policy or ordinance that meets federal requirements for the benefit of a highway authority to
             155      acquire real property or any interests in real property under this section.
             156          (c) The department shall authorize the expenditure of fund money after determining
             157      that the expenditure is being made in accordance with this section from applications that are:
             158          (i) made by a highway authority;
             159          (ii) endorsed by the council of governments; and
             160          (iii) for a right-of-way purchase for a highway authorized under Subsection (6)(a)(ii).
             161          (7) (a) (i) A council of governments shall establish a council of governments
             162      endorsement process which includes prioritization and application procedures for use of the
             163      money allocated to each county under this section.
             164          (ii) The endorsement process under Subsection (7)(a)(i) may include review or
             165      endorsement of the preservation project by [the]:
             166          (A) the metropolitan planning organization if the county is within the boundaries of a
             167      metropolitan planning organization; or
             168          (B) the department if the county is not within the boundaries of a metropolitan
             169      planning organization.


             170          (b) All fund money shall be prioritized by each highway authority and council of
             171      governments based on considerations, including:
             172          (i) areas with rapidly expanding population;
             173          (ii) the willingness of local governments to complete studies and impact statements
             174      that meet department standards;
             175          (iii) the preservation of corridors by the use of local planning and zoning processes;
             176          (iv) the availability of other public and private matching funds for a project;
             177          (v) the cost-effectiveness of the preservation projects;
             178          (vi) long and short-term maintenance costs for property acquired; and
             179          (vii) whether the transportation corridor is included as part of:
             180          (A) the county and municipal master plan; and
             181          (B) (I) the statewide long range plan; or
             182          (II) the regional transportation plan of the area metropolitan planning organization if
             183      one exists for the area.
             184          (c) The council of governments shall:
             185          (i) establish a priority list of highway corridor preservation projects within the county;
             186          (ii) submit the list described in Subsection (7)(c)(i) to the county's legislative body for
             187      approval; and
             188          (iii) obtain approval of the list described in Subsection (7)(c)(i) from a majority of the
             189      members of the county legislative body.
             190          (d) A county's council of governments may only submit one priority list described in
             191      Subsection (7)(c)(i) per calendar year.
             192          (e) A county legislative body may only consider and approve one priority list described
             193      in Subsection (7)(c)(i) per calendar year.
             194          (8) (a) Unless otherwise provided by written agreement with another highway
             195      authority, the highway authority that holds the deed to the property is responsible for
             196      maintenance of the property.
             197          (b) The transfer of ownership for property acquired under this section from one


             198      highway authority to another shall include a recorded deed for the property and a written
             199      agreement between the highway authorities.
             200          (9) (a) The proceeds from any bonds or other obligations secured by revenues of the
             201      Local Transportation Corridor Preservation Fund shall be used for the purposes authorized for
             202      funds under this section.
             203          (b) The highway authority shall pledge the necessary part of the revenues of the Local
             204      Transportation Corridor Preservation Fund to the payment of principal and interest on the
             205      bonds or other obligations.
             206          (10) (a) A highway authority may not apply for money under this section to purchase a
             207      right-of-way for a state highway unless the highway authority has:
             208          (i) a transportation corridor property acquisition policy or ordinance in effect that
             209      meets federal requirements for the acquisition of real property or any interests in real property
             210      under this section; and
             211          (ii) an access management policy or ordinance in effect that meets the requirements
             212      under Subsection 72-2-117 (8).
             213          (b) The provisions of Subsection (10)(a)(i) do not apply if the highway authority has a
             214      written agreement with the department for the acquisition of real property or any interests in
             215      real property under this section.
             216          (11) (a) The department shall, in expending or authorizing the expenditure of fund
             217      money, ensure to the extent possible that the fund money allocated to a city or town in
             218      accordance with Subsection (4) is expended:
             219          (i) to fund a project or service as allowed by this section within the city or town to
             220      which the fund money is allocated;
             221          (ii) to pay debt service, principal, or interest on a bond or other obligation as allowed
             222      by this section if that bond or other obligation is:
             223          (A) secured by money allocated to the city or town; and
             224          (B) issued to finance a project or service as allowed by this section within the city or
             225      town to which the fund money is allocated;


             226          (iii) to fund transportation planning as allowed by this section within the city or town
             227      to which the fund money is allocated; or
             228          (iv) for another purpose allowed by this section within the city or town to which the
             229      fund money is allocated.
             230          (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             231      department may make rules to implement the requirements of Subsection (11)(a).


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