1     
TRANSPORTATION FUNDING AMENDMENTS

2     
2018 GENERAL SESSION

3     
STATE OF UTAH

4     
Chief Sponsor: Wayne A. Harper

5     
House Sponsor: ____________

6     

7     LONG TITLE
8     General Description:
9          This bill requires a report by the Department of Transportation regarding the status of
10     the County of the First Class Highway Projects fund and provides instructions regarding
11     the ranking of projects for disbursement of the funds.
12     Highlighted Provisions:
13          This bill:
14          ▸     requires the Department of Transportation to present a report regarding the status of
15     the County of the First Class Highway Projects fund to certain county and municipal
16     leaders, certain legislative committees, and certain legislative leadership;
17          ▸     requires county and municipal leaders to prioritize and rank proposed projects for
18     disbursement of money within the fund; and
19          ▸     requires approval from the Infrastructure and General Government Appropriations
20     Subcommittee prior to disbursement of the funds.
21     Money Appropriated in this Bill:
22          None
23     Other Special Clauses:
24          None
25     Utah Code Sections Affected:
26     AMENDS:
27          72-2-121, as last amended by Laws of Utah 2017, Chapter 436

28     

29     Be it enacted by the Legislature of the state of Utah:
30          Section 1. Section 72-2-121 is amended to read:
31          72-2-121. County of the First Class Highway Projects Fund.
32          (1) There is created a special revenue fund within the Transportation Fund known as
33     the "County of the First Class Highway Projects Fund."
34          (2) The fund consists of money generated from the following revenue sources:
35          (a) any voluntary contributions received for new construction, major renovations, and
36     improvements to highways within a county of the first class;
37          (b) the portion of the sales and use tax described in Subsection 59-12-2214(3)(b)
38     deposited in or transferred to the fund;
39          (c) the portion of the sales and use tax described in Subsection 59-12-2217(2)(b) and
40     required by Subsection 59-12-2217(8)(b) to be deposited in or transferred to the fund; and
41          (d) a portion of the local option highway construction and transportation corridor
42     preservation fee imposed in a county of the first class under Section 41-1a-1222 deposited in or
43     transferred to the fund.
44          (3) (a) The fund shall earn interest.
45          (b) All interest earned on fund money shall be deposited into the fund.
46          (4) The executive director shall use the fund money only:
47          (a) to pay debt service and bond issuance costs for bonds issued under Sections
48     63B-16-102, 63B-18-402, and 63B-27-102;
49          (b) for right-of-way acquisition, new construction, major renovations, and
50     improvements to highways within a county of the first class and to pay any debt service and
51     bond issuance costs related to those projects, including improvements to a highway located
52     within a municipality in a county of the first class where the municipality is located within the
53     boundaries of more than a single county;
54          (c) for the construction, acquisition, use, maintenance, or operation of:
55          (i) an active transportation facility for nonmotorized vehicles;
56          (ii) multimodal transportation that connects an origin with a destination; or
57          (iii) a facility that may include a:
58          (A) pedestrian or nonmotorized vehicle trail;

59          (B) nonmotorized vehicle storage facility;
60          (C) pedestrian or vehicle bridge; or
61          (D) vehicle parking lot or parking structure;
62          (d) for fiscal year 2012-13 only, to pay for or to provide funds to a municipality or
63     county to pay for a portion of right-of-way acquisition, construction, reconstruction,
64     renovations, and improvements to highways described in Subsections 72-2-121.4(7), (8), and
65     (9);
66          (e) to transfer to the 2010 Salt Lake County Revenue Bond Sinking Fund created by
67     Section 72-2-121.3 the amount required in Subsection 72-2-121.3(4)(c) minus the amounts
68     transferred in accordance with Subsection 72-2-124(4)(a)(iv);
69          (f) for a fiscal year beginning on or after July 1, 2013, to pay debt service and bond
70     issuance costs for $30,000,000 of the bonds issued under Section 63B-18-401 for the projects
71     described in Subsection 63B-18-401(4)(a);
72          (g) for a fiscal year beginning on or after July 1, 2013, and after the department has
73     verified that the amount required under Subsection 72-2-121.3(4)(c) is available in the fund, to
74     transfer an amount equal to 50% of the revenue generated by the local option highway
75     construction and transportation corridor preservation fee imposed under Section 41-1a-1222 in
76     a county of the first class:
77          (i) to the legislative body of a county of the first class; and
78          (ii) to be used by a county of the first class for:
79          (A) highway construction, reconstruction, or maintenance projects; or
80          (B) the enforcement of state motor vehicle and traffic laws;
81          (h) for fiscal year 2015 only, and after the department has verified that the amount
82     required under Subsection 72-2-121.3(4)(c) is available in the fund and the transfer under
83     Subsection (4)(f) has been made, to transfer an amount equal to the remainder of the revenue
84     available in the fund for the 2015 fiscal year:
85          (i) to the legislative body of a county of the first class; and
86          (ii) to be used by a county of the first class for:
87          (A) highway construction, reconstruction, or maintenance projects; or
88          (B) the enforcement of state motor vehicle and traffic laws;
89          (i) for fiscal year 2015-16 only, and after the department has verified that the amount

90     required under Subsection 72-2-121.3(4)(c) is available in the fund and the transfer under
91     Subsection (4)(f) has been made, to transfer an amount equal to $25,000,000:
92          (i) to the legislative body of a county of the first class; and
93          (ii) to be used by the county for the purposes described in this section;
94          (j) for a fiscal year beginning on or after July 1, 2015, after the department has verified
95     that the amount required under Subsection 72-2-121.3(4)(c) is available in the fund and the
96     transfer under Subsection (4)(f) has been made, to annually transfer an amount equal to up to
97     42.5% of the sales and use tax revenue imposed in a county of the first class and deposited into
98     the fund in accordance with Subsection 59-12-2214(3)(b) to:
99          (i) the appropriate debt service or sinking fund for the repayment of bonds issued under
100     Section 63B-27-102; and
101          (ii) the Transportation Investment Fund of 2005 created in Section 72-2-124 until
102     $28,079,000 has been deposited into the Transportation Investment Fund of 2005; and
103          (k) for a fiscal year beginning after the amount described in Subsection (4)(j) has been
104     repaid to the Transportation Investment Fund of 2005 until fiscal year 2030, after the
105     department has verified that the amount required under Subsection 72-2-121.3(4)(c) is
106     available in the fund and the transfer under Subsection (4)(f) has been made, and after the
107     bonds under Section 63B-27-102 have been repaid, to annually transfer an amount equal to up
108     to 42.5% of the sales and use tax revenue imposed in a county of the first class and deposited
109     into the fund in accordance with Subsection 59-12-2214(3)(b):
110          (i) to the legislative body of a county of the first class; and
111          (ii) to be used by the county for the purposes described in this section.
112          (5) The revenues described in Subsections (2)(b), (c), and (d) that are deposited in the
113     fund and bond proceeds from bonds issued under Sections 63B-16-102, 63B-18-402, and
114     63B-27-102 are considered a local matching contribution for the purposes described under
115     Section 72-2-123.
116          (6) The additional administrative costs of the department to administer this fund shall
117     be paid from money in the fund.
118          (7) Notwithstanding any statutory or other restrictions on the use or expenditure of the
119     revenue sources deposited into this fund, the Department of Transportation may use the money
120     in this fund for any of the purposes detailed in Subsection (4).

121          (8) (a) The department shall annually create a report including the following
122     information:
123          (i) the total amount of money in the fund;
124          (ii) the amount currently committed to debt service; and
125          (iii) the amount currently available for allocation.
126          (b) The department shall annually submit the report described in Subsection (8)(a) by
127     mail or electronic transmission to the chief executive officers of a county of the first class and
128     each municipality within a county of the first class.
129          (c) The department shall annually send the report described in Subsection (8)(a) by
130     mail or by electronic transmission to the chairs of the Infrastructure and General Government
131     Appropriations Subcommittee, the Transportation Interim Committee, the speaker of the House
132     of Representatives, and the president of the Senate.
133          (9) (a) As used in this section, "council of governments" means the same as that term is
134     defined in Section 72-2-117.5.
135          (b) The chief executive officers of each municipality within a county of the first class,
136     in consultation with any applicable metropolitan planning organization, shall submit to the
137     chief executive officer of the county a prioritized list of projects of regional significance for
138     which the municipality or county is requesting funds under this section.
139          (c) The council of governments of a county of the first class shall evaluate the list of
140     projects submitted under Subsection (9)(b) and rank the projects according to criteria
141     developed pursuant to Subsection 59-12-2217(6).
142          (d) The chief executive officer of a county of the first class and the chair and vice chair
143     of the council of governments of a county of the first class shall present the ranked priority
144     projects to the Infrastructure and General Government Appropriations Subcommittee of the
145     Legislature for review and recommendation.
146          (e) After review and recommendation from the Infrastructure and General Government
147     Appropriations Subcommittee of the Legislature, the department shall allocate and disperse the
148     funds to each project sponsor according to the ranking established by the council of
149     governments as described in Subsection (9)(c).







Legislative Review Note
Office of Legislative Research and General Counsel