Representative Michael E. Noel proposes the following substitute bill:


1     
CLASS B AND CLASS C ROAD FUNDS AMENDMENTS

2     
2018 GENERAL SESSION

3     
STATE OF UTAH

4     
Chief Sponsor: Michael E. Noel

5     
Senate Sponsor: Evan J. Vickers

6     

7     LONG TITLE
8     General Description:
9          This bill amends provisions relating to class B and class C road funds.
10     Highlighted Provisions:
11          This bill:
12          ▸     amends provisions related to the calculation of amounts allocated to political
13     subdivisions for class B and class C roads;
14          ▸     amends provisions related to class B and class C road funds to allow a portion of
15     those funds for:
16               •     maintenance and development of class D roads to be added to the class B and C
17     road inventory; and
18               •     administering, managing, and planning the class B, class C, and class D road
19     networks and adjacent lands; and
20          ▸     makes technical changes.
21     Money Appropriated in this Bill:
22          None
23     Other Special Clauses:
24          This bill provides retrospective operation.
25     Utah Code Sections Affected:
26     AMENDS:
27          63I-2-272, as last amended by Laws of Utah 2017, Chapter 427
28          72-2-108, as last amended by Laws of Utah 2017, Chapter 144
29          72-2-110, as last amended by Laws of Utah 2017, Chapter 144
30     

31     Be it enacted by the Legislature of the state of Utah:
32          Section 1. Section 63I-2-272 is amended to read:
33          63I-2-272. Repeal dates -- Title 72.
34          (1) On July 1, 2018:
35          (a) in Subsection 72-2-108(2), the language that states "and except as provided in
36     Subsection [(10)] (9)" is repealed;
37          (b) in Subsection 72-2-108(4)[(c)(ii)(A)](b)(i), the language that states ", excluding any
38     amounts appropriated as additional support for class B and class C roads under Subsection
39     [(10)] (9)," is repealed; and
40          (c) Subsection 72-2-108[(10)](9) is repealed.
41          (2) Section 72-3-113 is repealed January 1, 2020.
42          (3) Section 72-15-101 is repealed on March 31, 2018.
43          Section 2. Section 72-2-108 is amended to read:
44          72-2-108. Apportionment of funds available for use on class B and class C roads
45     -- Bonds.
46          (1) For purposes of this section:
47          (a) "Eligible county " means a county of the fifth class, as described in Section
48     17-50-501, that received a distribution for fiscal year 2015:
49          (i) that was reapportioned to include money in addition to the amount calculated under
50     Subsection (2); and
51          (ii) the portion of the distribution derived from the calculation under Subsection (2)
52     was less than 60% of the total distribution.
53          [(a)] (b) "Graveled road" means a road:
54          (i) that is:
55          (A) graded; and
56          (B) drained by transverse drainage systems to prevent serious impairment of the road
57     by surface water;
58          (ii) that has an improved surface; and
59          (iii) that has a wearing surface made of:
60          (A) gravel;
61          (B) broken stone;
62          (C) slag;
63          (D) iron ore;
64          (E) shale; or
65          (F) other material that is:
66          (I) similar to a material described in Subsection (1)[(a)](b)(iii)(A) through (E); and
67          (II) coarser than sand.
68          [(b)] (c) "Paved road" includes a graveled road with a chip seal surface.
69          [(c)] (d) "Road mile" means a one-mile length of road, regardless of:
70          (i) the width of the road; or
71          (ii) the number of lanes into which the road is divided.
72          [(d)] (e) "Weighted mileage" means the sum of the following:
73          (i) paved road miles multiplied by five; and
74          (ii) all other road type road miles multiplied by two.
75          (2) Subject to the provisions of Subsections (3) through [(8)] (7) and except as
76     provided in Subsection [(10)] (9), funds appropriated for class B and class C roads shall be
77     apportioned among counties and municipalities in the following manner:
78          (a) 50% in the ratio that the class B roads weighted mileage within each county and
79     class C roads weighted mileage within each municipality bear to the total class B and class C
80     roads weighted mileage within the state; and
81          (b) 50% in the ratio that the population of a county or municipality bears to the total
82     population of the state as of the last official federal census or the United States Bureau of
83     Census estimate, whichever is most recent, except that if population estimates are not available
84     from the United States Bureau of Census, population figures shall be derived from the estimate
85     from the Utah Population Estimates Committee.
86          (3) For purposes of Subsection (2)(b), "the population of a county" means:
87          (a) the population of a county outside the corporate limits of municipalities in that
88     county, if the population of the county outside the corporate limits of municipalities in that
89     county is not less than 14% of the total population of that county, including municipalities; and
90          (b) if the population of a county outside the corporate limits of municipalities in the
91     county is less than 14% of the total population:
92          (i) the aggregate percentage of the population apportioned to municipalities in that
93     county shall be reduced by an amount equal to the difference between:
94          (A) 14%; and
95          (B) the actual percentage of population outside the corporate limits of municipalities in
96     that county; and
97          (ii) the population apportioned to the county shall be 14% of the total population of
98     that county, including incorporated municipalities.
99          (4) [If an apportionment under Subsection (2) made in the current fiscal year to a
100     county or municipality with a population of less than 14,000 is less than 120% of the amount
101     apportioned to the county or municipality for class B and class C roads in fiscal year 1996-97,]
102     For an eligible county, the department shall reapportion the funds under Subsection (2) to
103     ensure that the county or municipality receives, for a fiscal year beginning on or after July 1,
104     2017, an amount equal to the greater of:
105          [(a) subject to the requirement in Subsection (5) and for fiscal year 2016 only, an
106     amount equal to:]
107          [(i) the amount apportioned to the county or municipality for class B and class C roads
108     in fiscal year 2015 multiplied by 120%; plus]
109          [(ii) an amount equal to the amount apportioned to the county or municipality in fiscal
110     year 2015 multiplied by the percentage increase or decrease in the total funds available for
111     class B and class C roads between fiscal year 2015 and fiscal year 2016;]
112          [(b) for fiscal year 2017 only, an amount equal to the greater of:]
113          [(i) the amount apportioned to the county or municipality for class B and class C roads
114     in the current fiscal year under Subsection (2); or]
115          [(ii) (A) the amount apportioned to the county for class B and class C roads in fiscal
116     year 2015 multiplied by 120%; plus]
117          [(B) the amount calculated as described in Subsection (7); or]
118          [(c) for a fiscal year beginning on or after July 1, 2017, an amount equal to the greater
119     of:]
120          [(i)] (a) the amount apportioned to the county or municipality for class B and class C
121     roads in the current fiscal year under Subsection (2); or
122          [(ii) (A)] (b) (i) the amount apportioned to the county or municipality for class B and
123     class C roads through the apportionment formula under Subsection (2) or this Subsection (4),
124     excluding any amounts appropriated as additional support for class B and class C roads under
125     Subsection [(10)] (9), in the prior fiscal year; plus
126          [(B)] (ii) the amount calculated as described in Subsection [(7)] (6).
127          [(5) For the purposes of calculating a final distribution of money collected in fiscal
128     year 2016, the department shall subtract the payments previously made to a county or
129     municipality for money collected in fiscal year 2016 for class B and class C roads from the
130     fiscal year 2016 total calculated in Subsection (4)(a).]
131          [(6)] (5) (a) The department shall decrease proportionately as provided in Subsection
132     (6)(b) the apportionments to counties and municipalities for which the reapportionment under
133     Subsection (4)[(a), (b)(ii), or (c)(ii)] does not apply.
134          (b) The aggregate amount of the funds that the department shall decrease
135     proportionately from the apportionments under Subsection (6)(a) is an amount equal to the
136     aggregate amount reapportioned to counties and municipalities under Subsection (4)[(a),
137     (b)(ii), or (c)(ii)].
138          [(7)] (6) (a) In addition to the apportionment adjustments made under Subsection (4), a
139     county or municipality that qualifies for reapportioned money under Subsection (4)[(b)(ii) or
140     (c)(ii)] shall receive an amount equal to the amount apportioned to the eligible county or
141     municipality under Subsection (4)[(b)(ii) or (c)(ii)] for class B and class C roads in the prior
142     fiscal year multiplied by the percentage increase or decrease in the total funds available for
143     class B and class C roads between the prior fiscal year and the fiscal year that immediately
144     preceded the prior fiscal year.
145          (b) The adjustment under Subsection [(7)] (6)(a) shall be made in the same way as
146     provided in Subsections [(6)] (5)(a) and (b).
147          [(8)] (7) (a) If a county or municipality does not qualify for a reapportionment under
148     Subsection (4)[(c)] in the current fiscal year but previously qualified for a reapportionment
149     under Subsection (4)[(c)] on or after July 1, 2017, the county or municipality shall receive an
150     amount equal to the greater of:
151          (i) the amount apportioned to the county or municipality for class B and class C roads
152     in the current fiscal year under Subsection (2); or
153          (ii) the amount apportioned to the county or municipality for class B and class C roads
154     in the prior fiscal year.
155          (b) The adjustment under Subsection [(8)] (7)(a) shall be made in the same way as
156     provided in Subsections [(6)] (5)(a) and (b).
157          [(9)] (8) The governing body of any municipality or county may issue bonds
158     redeemable up to a period of 10 years under Title 11, Chapter 14, Local Government Bonding
159     Act, to pay the costs of constructing, repairing, and maintaining class B or class C roads and
160     may pledge class B or class C road funds received pursuant to this section to pay principal,
161     interest, premiums, and reserves for the bonds.
162          [(10)] (9) (a) For fiscal year 2017 only, the department shall distribute $5,000,000 of
163     the funds appropriated for additional support for class B and class C roads among the counties
164     and municipalities that qualified for reapportioned funds under Subsection (4) before May 1,
165     2016.
166          (b) The department shall distribute an amount to each county or municipality described
167     in Subsection [(10)] (9)(a) considering the projected amount of revenue that each county or
168     municipality would have received under the reapportionment formula in effect before May 1,
169     2016.
170          (c) The department may consult with local government entities to determine the
171     distribution amounts under Subsection [(10)] (9)(b).
172          (d) Before making the distributions required under this section, the department shall
173     report to the Executive Appropriations Committee of the Legislature by no later than December
174     31, 2016, the amount of funds the department will distribute to each county or municipality that
175     qualifies for a distribution under this Subsection [(10)] (9).
176          (e) The Executive Appropriations Committee of the Legislature shall review and
177     comment on the amount of funds proposed to be distributed to each county or municipality that
178     qualifies for a distribution under this Subsection [(10)] (9).
179          Section 3. Section 72-2-110 is amended to read:
180          72-2-110. Funds allocated to class B and class C roads -- Matching federal funds
181     -- R.S. 2477 rights.
182          A county or municipality may:
183          (1) use funds which are allocated to class B and class C roads for matching federal
184     funds for the construction of secondary roads now available or which may later become
185     available in accordance with the provisions of law; and
186          (2) use up to 30% of the class B and class C road funds allocated to the county or
187     municipality to:
188          (a) pay the costs of asserting, defending, or litigating local government rights under
189     R.S. 2477 on class B, class C, or class D roads[.];
190          (b) maintain or develop class D roads to be added to the class B or class C inventory;
191     or
192          (c) administer, manage, and plan the class B, class C, and class D road networks and
193     lands adjacent thereto.
194          Section 4. Retrospective operation.
195          The amendments to Section 72-2-108 in this bill have retrospective operation to July 1,
196     2017.