1     
LOCAL TRANSPORTATION CORRIDOR PRESERVATION

2     
FUND AMENDMENTS

3     
2015 GENERAL SESSION

4     
STATE OF UTAH

5     
Chief Sponsor: Michael S. Kennedy

6     
Senate Sponsor: Kevin T. Van Tassell

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 the expenditure of revenues from the Local Transportation Corridor
15     Preservation Fund shall be authorized and managed by the local highway authority
16     rather than the Department of Transportation;
17          ▸     requires the State Tax Commission to allocate the revenues provided to each
18     county, city, or town imposing certain fees and taxes of funds;
19          ▸     requires the Department of Transportation to distribute the funds allocated to each
20     county, city, or town;
21          ▸     provides that a highway authority may not expend money to purchase a right-of-way
22     for a state highway unless the highway authority has a transportation corridor
23     property acquisition policy or ordinance in effect that meets Department of
24     Transportation requirements for the acquisition of real property or any interests in
25     real property except in certain circumstances; and
26          ▸     makes technical and conforming changes.
27     Money Appropriated in this Bill:
28          None
29     Other Special Clauses:
30          None
31     Utah Code Sections Affected:
32     AMENDS:
33          72-2-117.5, as last amended by Laws of Utah 2013, Chapter 35
34     

35     Be it enacted by the Legislature of the state of Utah:
36          Section 1. Section 72-2-117.5 is amended to read:
37          72-2-117.5. Definitions -- Local Transportation Corridor Preservation Fund --
38     Disposition of fund money.
39          (1) As used in this section:
40          (a) "Council of governments" means a decision-making body in each county composed
41     of the county governing body and the mayors of each municipality in the county.
42          (b) "Metropolitan planning organization" has the same meaning as defined in Section
43     72-1-208.5.
44          (2) There is created the Local Transportation Corridor Preservation Fund within the
45     Transportation Fund.
46          (3) The fund shall be funded from the following sources:
47          (a) a local option highway construction and transportation corridor preservation fee
48     imposed under Section 41-1a-1222;
49          (b) appropriations made to the fund by the Legislature;
50          (c) contributions from other public and private sources for deposit into the fund;
51          (d) all money collected from rents and sales of real property acquired with fund money;
52          (e) proceeds from general obligation bonds, revenue bonds, or other obligations issued
53     as authorized by Title 63B, Bonds;
54          (f) the portion of the sales and use tax described in Subsection 59-12-2217(2)(b) and
55     required by Subsection 59-12-2217(8)(a) to be deposited into the fund; and
56          (g) sales and use tax revenues deposited into the fund in accordance with Section
57     59-12-2218.
58          (4) (a) The fund shall earn interest.
59          (b) All interest earned on fund money shall be deposited into the fund.
60          (c) The State Tax Commission shall [provide the department with sufficient data for
61     the department to] allocate the revenues:
62          (i) provided under Subsection (3)(a) to each county imposing a local option highway
63     construction and transportation corridor preservation fee under Section 41-1a-1222;
64          (ii) provided under Subsection 59-12-2217(2)(b) to each county imposing a county
65     option sales and use tax for transportation; and
66          (iii) provided under Subsection (3)(g) to each county of the second class or city or town
67     within a county of the second class that imposes the sales and use tax authorized by Section
68     59-12-2218.
69          [(d) (i) The department shall annually allocate the interest earned on fund money to
70     each county based on the proportionate amount of interest earned on each county's allocation of
71     funds under Subsection (4)(c) on an average monthly balance basis.]
72          [(ii) The initial annual allocation of fund interest shall include all interest earned on
73     fund money since the creation of the fund.]
74          (d) The department shall distribute the funds allocated to each county, city, or town
75     under Subsection (4)(c) to each county, city, or town.
76          (e) The money allocated and distributed under this Subsection (4)[(c)]:
77          (i) shall be used for the purposes provided in this section for each county, city, or town;
78          (ii) is allocated to each county, city, or town as provided in this section with the
79     condition that the state will not be charged for any asset purchased with the money allocated
80     [under Subsections (4)(c) and (d)] and distributed under this Subsection (4); and
81          (iii) is considered a local matching contribution for the purposes described under
82     Section 72-2-123 if used on a state highway.
83          (f) Administrative costs of the department to implement this section shall be paid from
84     the fund.
85          (5) (a) [The department shall authorize the expenditure of fund money to allow a] A
86     highway authority [to] may acquire real property or any interests in real property for state,
87     county, and municipal highway corridors subject to:
88          (i) money available in the fund to each county under [Subsections] Subsection (4)[(c)
89     and (d)]; and
90          (ii) the provisions of this section.
91          (b) Fund money may be used to pay interest on debts incurred in accordance with this
92     section.
93          (c) (i) (A) Fund money may be used to pay maintenance costs of properties acquired
94     under this section but limited to a total of 5% of the purchase price of the property.
95          (B) Any additional maintenance cost shall be paid from funds other than under this
96     section.
97          (C) Revenue generated by any property acquired under this section is excluded from
98     the limitations under this Subsection (5)(c)(i).
99          (ii) Fund money may be used to pay direct costs of acquisition of properties acquired
100     under this section.
101          (d) Fund money allocated [under Subsections (4)(c) and (d)] and distributed under
102     Subsection (4) may be used by a county highway authority for countywide transportation
103     planning if:
104          (i) the county's planning focus area is outside the boundaries of a metropolitan
105     planning organization;
106          (ii) the transportation planning is part of the county's continuing, cooperative, and
107     comprehensive process for transportation planning, corridor preservation, right-of-way
108     acquisition, and project programming;
109          (iii) no more than four years allocation every 20 years to each county is used for
110     transportation planning under this Subsection (5)(d); and
111          (iv) the county otherwise qualifies to use the fund money as provided under this
112     section.
113          (e) (i) Subject to Subsection (11), fund money allocated [under Subsections (4)(c) and
114     (d)] and distributed under Subsection (4) may be used by a county highway authority for
115     transportation corridor planning that is part of the corridor elements of an ongoing work
116     program of transportation projects.
117          (ii) The transportation corridor planning under Subsection (5)(e)(i) shall be under the
118     direction of:
119          (A) the metropolitan planning organization if the county is within the boundaries of a
120     metropolitan planning organization; or
121          (B) the department if the county is not within the boundaries of a metropolitan
122     planning organization.
123          (f) (i) A county, city, or town that imposes a local option highway construction and
124     transportation corridor preservation fee under Section 41-1a-1222 may elect to administer the
125     funds allocated and distributed to that county, city, or town under Subsection (4)[(c)] as a
126     revolving loan fund.
127          (ii) If a county, city, or town elects to administer the funds allocated and distributed to
128     that county, city, or town under Subsection (4)[(c)] as a revolving loan fund, a local highway
129     authority shall[: (A) apply to the department as required under this section for money from the
130     fund created in this section for a specified transportation corridor project; and (B)] repay the
131     fund money authorized for the project to the fund.
132          (iii) A county, city, or town that elects to administer the funds allocated and distributed
133     to that county, city, or town under Subsection (4)[(c)] as a revolving loan fund shall establish
134     repayment conditions of the money to the fund from the specified project funds.
135          (6) (a) (i) The Local Transportation Corridor Preservation Fund shall be used to
136     preserve highway corridors, promote long-term statewide transportation planning, save on
137     acquisition costs, and promote the best interests of the state in a manner which minimizes
138     impact on prime agricultural land.
139          (ii) The Local Transportation Corridor Preservation Fund shall only be used to preserve
140     a highway corridor that is right-of-way:
141          (A) in a county of the first or second class for:
142          (I) a state highway;
143          (II) a principal arterial highway as defined in Section 72-4-102.5;
144          (III) a minor arterial highway as defined in Section 72-4-102.5; or
145          (IV) a collector highway in an urban area as defined in Section 72-4-102.5; or
146          (B) in a county of the third, fourth, fifth, or sixth class for:
147          (I) a state highway;
148          (II) a principal arterial highway as defined in Section 72-4-102.5;
149          (III) a minor arterial highway as defined in Section 72-4-102.5;
150          (IV) a major collector highway as defined in Section 72-4-102.5; or
151          (V) a minor collector road as defined in Section 72-4-102.5.
152          (iii) The Local Transportation Corridor Preservation Fund may not be used for a
153     highway corridor that is primarily a recreational trail as defined under Section 79-5-102.
154          [(b) (i) The department shall develop and implement a program to educate highway
155     authorities on the objectives, application process, use, and responsibilities of the Local
156     Transportation Corridor Preservation Fund as provided under this section to promote the most
157     efficient and effective use of fund money including priority use on designated high priority
158     corridor preservation projects.]
159          [(ii) The department shall develop a model transportation corridor property acquisition
160     policy or ordinance that meets federal requirements for the benefit of a highway authority to
161     acquire real property or any interests in real property under this section.]
162          [(c) The department]
163          (b) A highway authority shall authorize the expenditure of fund money after
164     determining that the expenditure is being made in accordance with this section from
165     applications that are:
166          [(i) made by a highway authority;]
167          [(ii)] (i) endorsed by the council of governments; and
168          [(iii)] (ii) for a right-of-way purchase for a highway authorized under Subsection
169     (6)(a)(ii).
170          (7) (a) (i) A council of governments shall establish a council of governments
171     endorsement process which includes prioritization and application procedures for use of the
172     money allocated to each county under this section.
173          (ii) The endorsement process under Subsection (7)(a)(i) may include review or
174     endorsement of the preservation project by:
175          (A) the metropolitan planning organization if the county is within the boundaries of a
176     metropolitan planning organization; or
177          (B) the department if the county is not within the boundaries of a metropolitan
178     planning organization.
179          (b) All fund money shall be prioritized by each highway authority and council of
180     governments based on considerations, including:
181          (i) areas with rapidly expanding population;
182          (ii) the willingness of local governments to complete studies and impact statements
183     that meet department standards;
184          (iii) the preservation of corridors by the use of local planning and zoning processes;
185          (iv) the availability of other public and private matching funds for a project;
186          (v) the cost-effectiveness of the preservation projects;
187          (vi) long and short-term maintenance costs for property acquired; and
188          (vii) whether the transportation corridor is included as part of:
189          (A) the county and municipal master plan; and
190          (B) (I) the statewide long range plan; or
191          (II) the regional transportation plan of the area metropolitan planning organization if
192     one exists for the area.
193          (c) The council of governments shall:
194          (i) establish a priority list of highway corridor preservation projects within the county;
195          (ii) submit the list described in Subsection (7)(c)(i) to the county's legislative body for
196     approval; and
197          (iii) obtain approval of the list described in Subsection (7)(c)(i) from a majority of the
198     members of the county legislative body.
199          (d) A county's council of governments may only submit one priority list described in
200     Subsection (7)(c)(i) per calendar year.
201          (e) A county legislative body may only consider and approve one priority list described
202     in Subsection (7)(c)(i) per calendar year.
203          (8) (a) Unless otherwise provided by written agreement with another highway
204     authority, the highway authority that holds the deed to the property is responsible for
205     maintenance of the property.
206          (b) The transfer of ownership for property acquired under this section from one
207     highway authority to another shall include a recorded deed for the property and a written
208     agreement between the highway authorities.
209          (9) (a) The proceeds from any bonds or other obligations secured by revenues of the
210     Local Transportation Corridor Preservation Fund shall be used for the purposes authorized for
211     funds under this section.
212          (b) The highway authority shall pledge the necessary part of the revenues of the Local
213     Transportation Corridor Preservation Fund to the payment of principal and interest on the
214     bonds or other obligations.
215          (10) (a) A highway authority may not [apply for] expend money under this section to
216     purchase a right-of-way for a state highway unless the highway authority has:
217          (i) a transportation corridor property acquisition policy or ordinance in effect that
218     meets [federal] department requirements for the acquisition of real property or any interests in
219     real property under this section; and
220          (ii) an access management policy or ordinance in effect that meets the requirements
221     under Subsection 72-2-117(8).
222          (b) The provisions of Subsection (10)(a)(i) do not apply if the highway authority has a
223     written agreement with the department for [the acquisition of] the department to acquire real
224     property or any interests in real property on behalf of the local highway authority under this
225     section.
226          (11) [(a)] The [department] county shall[, in expending or authorizing the expenditure
227     of fund money,] ensure, to the extent possible, that the fund money allocated and distributed to
228     a city or town in accordance with Subsection (4) is expended:
229          [(i)] (a) to fund a project or service as allowed by this section within the city or town to
230     which the fund money is allocated;
231          [(ii)] (b) to pay debt service, principal, or interest on a bond or other obligation as
232     allowed by this section if that bond or other obligation is:
233          [(A)] (i) secured by money allocated to the city or town; and
234          [(B)] (ii) issued to finance a project or service as allowed by this section within the city
235     or town to which the fund money is allocated;
236          [(iii)] (c) to fund transportation planning as allowed by this section within the city or
237     town to which the fund money is allocated; or
238          [(iv)] (d) for another purpose allowed by this section within the city or town to which
239     the fund money is allocated.
240          [(b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
241     the department may make rules to implement the requirements of Subsection (11)(a).]




Legislative Review Note
     as of 2-12-15 11:20 AM

Office of Legislative Research and General Counsel