Representative Michael K. McKell proposes the following substitute bill:


1     
THROUGHPUT INFRASTRUCTURE AMENDMENTS

2     
2019 GENERAL SESSION

3     
STATE OF UTAH

4     
Chief Sponsor: Ralph Okerlund

5     
House Sponsor: Michael K. McKell

6     

7     LONG TITLE
8     General Description:
9          This bill addresses throughput infrastructure amendments.
10     Highlighted Provisions:
11          This bill:
12          ▸     imposes requirements for the first throughput infrastructure project considered by
13     the Permanent Community Impact Fund Board; and
14          ▸     makes technical changes.
15     Money Appropriated in this Bill:
16          None
17     Other Special Clauses:
18          None
19     Utah Code Sections Affected:
20     AMENDS:
21          35A-8-309, as last amended by Laws of Utah 2017, Chapters 181 and 421
22     

23     Be it enacted by the Legislature of the state of Utah:
24          Section 1. Section 35A-8-309 is amended to read:
25          35A-8-309. Throughput Infrastructure Fund administered by impact board --

26     Uses -- Review by board -- Annual report.
27          (1) The impact board shall:
28          (a) make grants and loans from the Throughput Infrastructure Fund created in Section
29     35A-8-308 for a throughput infrastructure project;
30          (b) use money transferred to the Throughput Infrastructure Fund in accordance with
31     Subsection 59-12-103(12) to provide a loan or grant to finance the cost of acquisition or
32     construction of a throughput infrastructure project to one or more local political subdivisions,
33     including a Utah interlocal [entity] agency created under Title 11, Chapter 13, Interlocal
34     Cooperation Act;
35          (c) administer the Throughput Infrastructure Fund in a manner that will keep a portion
36     of the fund revolving;
37          (d) determine provisions for repayment of loans;
38          (e) establish criteria for awarding loans and grants; and
39          (f) establish criteria for determining eligibility for assistance under this section.
40          (2) The cost of acquisition or construction of a throughput infrastructure project
41     includes amounts for working capital, reserves, transaction costs, and other amounts
42     determined by the impact board to be allocable to a throughput infrastructure project.
43          (3) The impact board may restructure or forgive all or part of a local political
44     subdivision's or interlocal [entity's] agency's obligation to repay loans for extenuating
45     circumstances.
46          (4) [In order to] To receive assistance under this section, a local political subdivision or
47     an interlocal [entity] agency shall submit a formal application containing the information that
48     the impact board requires.
49          (5) (a) The impact board shall:
50          (i) review the proposed uses of the Throughput Infrastructure Fund for a loan or grant
51     before approving the loan or grant and may condition its approval on whatever assurances the
52     impact board considers necessary to ensure that proceeds of the loan or grant will be used in
53     accordance with this section;
54          (ii) ensure that each loan specifies terms for interest deferments, accruals, and
55     scheduled principal repayment; and
56          (iii) ensure that repayment terms are evidenced by bonds, notes, or other obligations of

57     the appropriate local political subdivision or interlocal [entity] agency issued to the impact
58     board and payable from the net revenues of a throughput infrastructure project.
59          (b) An instrument described in Subsection (5)(a)(iii) may be:
60          (i) non-recourse to the local political subdivision or interlocal [entity] agency; and
61          (ii) limited to a pledge of the net revenues from a throughput infrastructure project.
62          (6) (a) Subject to the restriction in Subsection (6)(b), the impact board shall allocate
63     from the Throughput Infrastructure Fund to the board those amounts that are appropriated by
64     the Legislature for the administration of the Throughput Infrastructure Fund.
65          (b) The amount described in Subsection (6)(a) may not exceed 2% of the annual
66     receipts to the fund.
67          (7) The board shall include in the annual written report described in Section
68     35A-1-109:
69          (a) the number and type of loans and grants made under this section; and
70          (b) a list of local political subdivisions or interlocal [entities] agencies that received
71     assistance under this section.
72          (8) (a) The first throughput infrastructure project considered by the impact board shall
73     be a bulk commodities ocean terminal project.
74          (b) Upon receipt of an application from an interlocal agency created for the sole
75     purpose of undertaking a throughput infrastructure project that is a bulk commodities ocean
76     terminal project, the impact board shall:
77          (i) grant up to 2% of the money in the Throughput Infrastructure Fund to the interlocal
78     agency to pay or reimburse costs incurred by the interlocal agency preliminary to its acquisition
79     of the throughput infrastructure project; and
80          (ii) fund the interlocal agency's application if the application meets all criteria
81     established by the impact board.