Senator Kirk A. Cullimore proposes the following substitute bill:


1     
STATE INFRASTRUCTURE BANK AMENDMENTS

2     
2020 GENERAL SESSION

3     
STATE OF UTAH

4     
Chief Sponsor: Kirk A. Cullimore

5     
House Sponsor: Kay J. Christofferson

6     

7     LONG TITLE
8     General Description:
9          This bill amends provisions related to the State Infrastructure Bank Fund.
10     Highlighted Provisions:
11          This bill:
12          ▸     amends provisions related to the State Infrastructure Bank Fund, including:
13               •     certain allowed uses of funds; and
14               •     interest rates and terms of loans from the State Infrastructure Bank Fund; and
15          ▸     makes technical changes.
16     Money Appropriated in this Bill:
17          None
18     Other Special Clauses:
19          None
20     Utah Code Sections Affected:
21     AMENDS:
22          72-2-121, as last amended by Laws of Utah 2019, Chapters 479 and 497
23          72-2-121.3, as last amended by Laws of Utah 2015, Chapter 421
24          72-2-121.4, as last amended by Laws of Utah 2015, Chapter 421
25          72-2-124, as last amended by Laws of Utah 2019, Chapters 327 and 479
26          72-2-201, as last amended by Laws of Utah 2019, Chapter 479
27          72-2-203, as last amended by Laws of Utah 2019, Chapter 479
28          72-2-204, as last amended by Laws of Utah 2019, Chapter 479
29     

30     Be it enacted by the Legislature of the state of Utah:
31          Section 1. Section 72-2-121 is amended to read:
32          72-2-121. County of the First Class Highway Projects Fund.
33          (1) There is created a special revenue fund within the Transportation Fund known as
34     the "County of the First Class Highway Projects Fund."
35          (2) The fund consists of money generated from the following revenue sources:
36          (a) any voluntary contributions received for new construction, major renovations, and
37     improvements to highways within a county of the first class;
38          (b) the portion of the sales and use tax described in Subsection 59-12-2214(3)(b)
39     deposited in or transferred to the fund;
40          (c) the portion of the sales and use tax described in Section 59-12-2217 deposited in or
41     transferred to the fund; and
42          (d) a portion of the local option highway construction and transportation corridor
43     preservation fee imposed in a county of the first class under Section 41-1a-1222 deposited in or
44     transferred to the fund.
45          (3) (a) The fund shall earn interest.
46          (b) All interest earned on fund money shall be deposited into the fund.
47          (4) The executive director shall use the fund money only:
48          (a) to pay debt service and bond issuance costs for bonds issued under Sections
49     63B-16-102, 63B-18-402, and 63B-27-102;
50          (b) for right-of-way acquisition, new construction, major renovations, and
51     improvements to highways within a county of the first class and to pay any debt service and
52     bond issuance costs related to those projects, including improvements to a highway located
53     within a municipality in a county of the first class where the municipality is located within the
54     boundaries of more than a single county;
55          (c) for the construction, acquisition, use, maintenance, or operation of:
56          (i) an active transportation facility for nonmotorized vehicles;
57          (ii) multimodal transportation that connects an origin with a destination; or
58          (iii) a facility that may include a:
59          (A) pedestrian or nonmotorized vehicle trail;
60          (B) nonmotorized vehicle storage facility;
61          (C) pedestrian or vehicle bridge; or
62          (D) vehicle parking lot or parking structure;
63          [(d) for fiscal year 2012-13 only, to pay for or to provide funds to a municipality or
64     county to pay for a portion of right-of-way acquisition, construction, reconstruction,
65     renovations, and improvements to highways described in Subsections 72-2-121.4(7), (8), and
66     (9);]
67          [(e)] (d) to transfer to the 2010 Salt Lake County Revenue Bond Sinking Fund created
68     by Section 72-2-121.3 the amount required in Subsection 72-2-121.3(4)(c) minus the amounts
69     transferred in accordance with Subsection 72-2-124(4)(a)(iv);
70          [(f)] (e) for a fiscal year beginning on or after July 1, 2013, to pay debt service and
71     bond issuance costs for $30,000,000 of the bonds issued under Section 63B-18-401 for the
72     projects described in Subsection 63B-18-401(4)(a);
73          [(g)] (f) for a fiscal year beginning on or after July 1, 2013, and after the department
74     has verified that the amount required under Subsection 72-2-121.3(4)(c) is available in the
75     fund, to transfer an amount equal to 50% of the revenue generated by the local option highway
76     construction and transportation corridor preservation fee imposed under Section 41-1a-1222 in
77     a county of the first class:
78          (i) to the legislative body of a county of the first class; and
79          (ii) to be used by a county of the first class for:
80          (A) highway construction, reconstruction, or maintenance projects; or
81          (B) the enforcement of state motor vehicle and traffic laws;
82          [(h) for fiscal year 2015 only, and after the department has verified that the amount
83     required under Subsection 72-2-121.3(4)(c) is available in the fund and the transfer under
84     Subsection (4)(f) has been made, to transfer an amount equal to the remainder of the revenue
85     available in the fund for the 2015 fiscal year:]
86          [(i) to the legislative body of a county of the first class; and]
87          [(ii) to be used by a county of the first class for:]
88          [(A) highway construction, reconstruction, or maintenance projects; or]
89          [(B) the enforcement of state motor vehicle and traffic laws;]
90          [(i)] (g) for fiscal year 2015-16 only, and after the department has verified that the
91     amount required under Subsection 72-2-121.3(4)(c) is available in the fund and the transfer
92     under Subsection (4)[(f)](e) has been made, to transfer an amount equal to $25,000,000:
93          (i) to the legislative body of a county of the first class; and
94          (ii) to be used by the county for the purposes described in this section;
95          [(j)] (h) for a fiscal year beginning on or after July 1, 2015, after the department has
96     verified that the amount required under Subsection 72-2-121.3(4)(c) is available in the fund
97     and the transfer under Subsection (4)[(f)](e) has been made, to annually transfer an amount
98     equal to up to 42.5% of the sales and use tax revenue imposed in a county of the first class and
99     deposited into the fund in accordance with Subsection 59-12-2214(3)(b) to:
100          (i) the appropriate debt service or sinking fund for the repayment of bonds issued under
101     Section 63B-27-102; and
102          (ii) the Transportation Fund created in Section 72-2-102 until $28,079,000 has been
103     deposited into the Transportation Fund;
104          [(k)] (i) for a fiscal year beginning on or after July 1, 2018, after the department has
105     verified that the amount required under Subsection 72-2-121.3(4)(c) is available in the fund
106     and after the transfer under Subsection (4)[(e)](d), the payment under Subsection (4)[(f)](e),
107     and the transfers under Subsections (4)[(j)](h)(i) and (ii) have been made, to annually transfer
108     20% of the amount deposited into the fund under Subsection (2)(b) to a public transit district in
109     a county of the first class to fund a system for public transit;
110          [(l)] (j) for a fiscal year beginning on or after July 1, 2018, after the department has
111     verified that the amount required under Subsection 72-2-121.3(4)(c) is available in the fund
112     and after the transfer under Subsection (4)[(e)](d), the payment under Subsection (4)[(f)](e),
113     and the transfers under Subsections (4)[(j)](h)(i) and (ii) have been made, to annually transfer
114     20% of the amount deposited into the fund under Subsection (2)(b):
115          (i) to the legislative body of a county of the first class; and
116          (ii) to fund parking facilities in a county of the first class that facilitate significant
117     economic development and recreation and tourism within the state;
118          [(m)] (k) for the 2018-19 fiscal year only, after the department has verified that the
119     amount required under Subsection 72-2-121.3(4)(c) is available in the fund and after the
120     transfer under Subsection (4)(e), the payment under Subsection (4)(f), and the transfers under
121     Subsections (4)(j) through (l) have been made, to transfer $12,000,000 to the Department of
122     Transportation to distribute for the following projects:
123          (i) $2,000,000 to West Valley City for highway improvement to 4100 South;
124          (ii) $1,000,000 to Herriman for highway improvements to Herriman Boulevard from
125     6800 West to 7300 West;
126          (iii) $1,100,000 to South Jordan for highway improvements to Grandville Avenue;
127          (iv) $1,800,000 to Riverton for highway improvements to Old Liberty Way from 13400
128     South to 13200 South;
129          (v) $1,000,000 to Murray City for highway improvements to 5600 South from State
130     Street to Van Winkle;
131          (vi) $1,000,000 to Draper for highway improvements to Lone Peak Parkway from
132     11400 South to 12300 South;
133          (vii) $1,000,000 to Sandy City for right-of-way acquisition for Monroe Street;
134          (viii) $900,000 to South Jordan City for right-of-way acquisition and improvements to
135     10200 South from 2700 West to 3200 West;
136          (ix) $1,000,000 to West Jordan for highway improvements to 8600 South near
137     Mountain View Corridor;
138          (x) $700,000 to South Jordan right-of-way improvements to 10550 South; and
139          (xi) $500,000 to Salt Lake County for highway improvements to 2650 South from
140     7200 West to 8000 West; and
141          [(n)] (l) for a fiscal year beginning after the amount described in Subsection (4)[(j)](h)
142     has been repaid to the Transportation Fund until fiscal year 2030, or sooner if the amount
143     described in Subsection (4)[(j)](h)(ii) has been repaid, after the department has verified that the
144     amount required under Subsection 72-2-121.3(4)(c) is available in the fund and the transfer
145     under Subsection (4)[(f)](e) has been made, and after the bonds under Section 63B-27-102
146     have been repaid, to annually transfer an amount equal to up to 42.5% of the sales and use tax
147     revenue imposed in a county of the first class and deposited into the fund in accordance with
148     Subsection 59-12-2214(3)(b):
149          (i) to the legislative body of a county of the first class; and
150          (ii) to be used by the county for the purposes described in this section.
151          (5) The revenues described in Subsections (2)(b), (c), and (d) that are deposited in the
152     fund and bond proceeds from bonds issued under Sections 63B-16-102, 63B-18-402, and
153     63B-27-102 are considered a local matching contribution for the purposes described under
154     Section 72-2-123.
155          (6) The additional administrative costs of the department to administer this fund shall
156     be paid from money in the fund.
157          (7) Notwithstanding any statutory or other restrictions on the use or expenditure of the
158     revenue sources deposited into this fund, the Department of Transportation may use the money
159     in this fund for any of the purposes detailed in Subsection (4).
160          [(8) (a) For a fiscal year beginning on or after July 1, 2018, at the end of each fiscal
161     year, after all programmed payments and transfers authorized or required under this section
162     have been made, on July 30 the department shall transfer the remainder of the money in the
163     fund to the Transportation Fund to reduce the amount owed to the Transportation Fund under
164     Subsection (4)(j)(ii).]
165          [(b) The department shall provide notice to a county of the first class of the amount
166     transferred in accordance with this Subsection (8).]
167          (8) (a) For a fiscal year beginning on or after July 1, 2020, at the end of each fiscal
168     year, after all programmed payments and transfers authorized or required under this section
169     have been made, on July 30 the department shall transfer the remainder of the money in the
170     fund to the Transportation Fund to reduce the amount owed to the Transportation Fund under
171     Subsection (4)(h)(ii).
172          (b) The department shall provide notice to a county of the first class of the amount
173     transferred in accordance with this Subsection (8).
174          (9) (a) Any revenue in the fund that is not specifically allocated and obligated under
175     [this section] Subsections (4) through (8) is subject to the review process described in this
176     Subsection (9).
177          (b) A county of the first class shall create a county transportation advisory committee
178     as described in Subsection (9)(c) to review proposed transportation and, as applicable, public
179     transit projects and rank projects for allocation of funds.
180          (c) The county transportation advisory committee described in Subsection (9)(b) shall
181     be composed of the following 13 members:
182          (i) six members who are residents of the county, nominated by the county executive
183     and confirmed by the county legislative body who are:
184          (A) members of a local advisory council of a large public transit district as defined in
185     Section 17B-2a-802;
186          (B) county council members; or
187          (C) other residents with expertise in transportation planning and funding; and
188          (ii) seven members nominated by the county executive, and confirmed by the county
189     legislative body, chosen from mayors or managers of cities or towns within the county.
190          (d) (i) A majority of the members of the county transportation advisory committee
191     constitutes a quorum.
192          (ii) The action by a quorum of the county transportation advisory committee constitutes
193     an action by the county transportation advisory committee.
194          (e) The county body shall determine:
195          (i) the length of a term of a member of the county transportation advisory committee;
196          (ii) procedures and requirements for removing a member of the county transportation
197     advisory committee;
198          (iii) voting requirements of the county transportation advisory committee;
199          (iv) chairs or other officers of the county transportation advisory committee;
200          (v) how meetings are to be called and the frequency of meetings, but not less than once
201     annually; and
202          (vi) the compensation, if any, of members of the county transportation advisory
203     committee.
204          (f) The county shall establish by ordinance criteria for prioritization and ranking of
205     projects, which may include consideration of regional and countywide economic development
206     impacts, including improved local access to:
207          (i) employment;
208          (ii) recreation;
209          (iii) commerce; and
210          (iv) residential areas.
211          (g) The county transportation advisory committee shall evaluate and rank each
212     proposed public transit project and regionally significant transportation facility according to
213     criteria developed pursuant to Subsection (9)(f).
214          (h) (i) After the review and ranking of each project as described in this section, the
215     county transportation advisory committee shall provide a report and recommend the ranked list
216     of projects to the county legislative body and county executive.
217          (ii) After review of the recommended list of projects, as part of the county budgetary
218     process, the county executive shall review the list of projects and may include in the proposed
219     budget the proposed projects for allocation, as funds are available.
220          (i) The county executive of the county of the first class, with information provided by
221     the county and relevant state entities, shall provide a report annually to the county
222     transportation advisory committee, and to the mayor or manager of each city, town, or metro
223     township in the county, including the following:
224          (i) the amount of revenue received into the fund during the past year;
225          (ii) any funds available for allocation;
226          (iii) funds obligated for debt service; and
227          (iv) the outstanding balance of transportation-related debt.
228          Section 2. Section 72-2-121.3 is amended to read:
229          72-2-121.3. Special revenue fund -- 2010 Salt Lake County Revenue Bond
230     Sinking Fund.
231          (1) There is created a special revenue fund within the County of the First Class
232     Highway Projects Fund entitled "2010 Salt Lake County Revenue Bond Sinking Fund."
233          (2) The fund consists of:
234          (a) money transferred into the fund from the County of the First Class Highway
235     Projects Fund in accordance with Subsection [72-2-121(4)(e)] 72-2-121(4)(d); and
236          (b) for a fiscal year beginning on or after July 1, 2013, money transferred into the fund
237     from the Transportation Investment Fund of 2005 in accordance with Subsection
238     72-2-124(4)(a)(iv).
239          (3) (a) The fund shall earn interest.
240          (b) All interest earned on fund money shall be deposited into the fund.
241          (4) (a) The director of the Division of Finance may use fund money only as provided in
242     this section.
243          (b) The director of the Division of Finance may not distribute any money from the fund
244     under this section until the director has received a formal opinion from the attorney general that
245     Salt Lake County has entered into a binding agreement with the state of Utah containing all of
246     the terms required by Section 72-2-121.4.
247          (c) Except as provided in Subsection (4)(b), and until the bonds issued by Salt Lake
248     County as provided in the interlocal agreement required by Section 72-2-121.4 are paid off, on
249     July 1 of each year beginning July 1, 2011, the director of the Division of Finance shall transfer
250     from the County of the First Class Highway Projects Fund and the Transportation Investment
251     Fund of 2005 to the 2010 Salt Lake County Revenue Bond Sinking Fund the amount certified
252     by Salt Lake County that is necessary to pay:
253          (i) up to two times the debt service requirement necessary to pay debt service on the
254     revenue bonds issued by Salt Lake County for that fiscal year; and
255          (ii) any additional amounts necessary to pay costs of issuance, pay capitalized interest,
256     and fund any debt service reserve requirements.
257          (d) Except as provided in Subsection (4)(b), and until the bonds issued by Salt Lake
258     County as provided in the interlocal agreement required by Section 72-2-121.4 are paid off, the
259     director of the Division of Finance shall, upon request from Salt Lake County, transfer to Salt
260     Lake County or its designee from the 2010 Salt Lake County Revenue Bond Sinking Fund the
261     amount certified by Salt Lake County as necessary to pay:
262          (i) the debt service on the revenue bonds issued by Salt Lake County as provided in the
263     interlocal agreement required by Section 72-2-121.4; and
264          (ii) any additional amounts necessary to pay costs of issuance, pay capitalized interest,
265     and fund any debt service reserve requirements.
266          (5) Any money remaining in the 2010 Salt Lake County Revenue Bond Sinking Fund
267     at the end of the fiscal year lapses to the County of the First Class Highway Projects Fund.
268          Section 3. Section 72-2-121.4 is amended to read:
269          72-2-121.4. 2010 interlocal agreement governing state highway projects in Salt
270     Lake County.
271          (1) Under the direction of the attorney general, the state of Utah and Salt Lake County
272     may enter into an interlocal agreement that includes, at minimum, the provisions specified in
273     this section.
274          (2) The attorney general shall ensure that, in the agreement, Salt Lake County
275     covenants to:
276          (a) issue revenue bonds in an amount generating proceeds of at least $77,000,000,
277     together with additional amounts necessary to pay costs of issuance, pay capitalized interest,
278     and fund any debt service reserve requirements, and secured by revenues received from the
279     state of Utah under Section 72-2-121.3;
280          (b) transfer at least $68,500,000 to the Department of Transportation to be used for
281     state highway projects in Salt Lake County as provided in the interlocal agreement; and
282          (c) use or transfer to a municipality to use $8,500,000 to pay all or part of the costs of
283     the following highway construction projects in Salt Lake County in the following amounts:
284          (i) $2,000,000 to Salt Lake County for 2300 East in Salt Lake County;
285          (ii) $3,500,000 to Salt Lake City for North Temple;
286          (iii) $1,500,000 to Murray City for 4800 South; and
287          (iv) $1,500,000 to Riverton City for 13400 South -- 4000 West to 4570 West.
288          (3) The attorney general shall ensure that, in the agreement, the state of Utah covenants
289     to:
290          (a) use the money transferred by Salt Lake County under Subsection (2)(b) to pay all or
291     part of the costs of the following state highway construction or reconstruction projects within
292     Salt Lake County:
293          (i) 5400 South -- Bangerter Highway to 4000 West;
294          (ii) Bangerter Highway at SR-201;
295          (iii) 12300 South at State Street;
296          (iv) Bangerter Highway at 6200 South;
297          (v) Bangerter Highway at 7000 South;
298          (vi) Bangerter Highway at 3100 South;
299          (vii) 5400 South -- 4000 West to past 4800 West;
300          (viii) 9400 South and Wasatch Boulevard; and
301          (ix) I-215 West Interchange -- 3500 South to 3800 South and ramp work;
302          (b) widen and improve US-89 between 7200 South and 9000 South with available
303     highway funding identified by the commission; and
304          (c) transfer to Salt Lake County or its designee from the 2010 Salt Lake County
305     Revenue Bond Sinking Fund the amount certified by Salt Lake County as necessary to pay:
306          (i) the debt service on the revenue bonds issued by Salt Lake County; and
307          (ii) any additional amounts necessary to pay costs of issuance, pay capitalized interest,
308     and fund any debt service reserve requirements.
309          (4) The costs under Subsections (2)(c) and (3)(a) may include the cost of acquiring
310     land, interests in land, easements and rights-of-way, improving sites, and making all
311     improvements necessary, incidental, or convenient to the facilities and all related engineering,
312     architectural, and legal fees.
313          (5) In preparing the agreement required by this section, the attorney general and Salt
314     Lake County shall:
315          (a) review each existing interlocal agreement with Salt Lake County concerning Salt
316     Lake County revenues received by the state for state highway projects within Salt Lake County;
317     and
318          (b) as necessary, modify those agreements or draft a new interlocal agreement
319     encompassing all of the provisions necessary to reflect the state of Utah's and Salt Lake
320     County's obligations for those revenues and projects.
321          [(6) If project savings are identified by the Department of Transportation from the
322     funds provided to the Department of Transportation as described in Subsection (2)(b) and if the
323     use of funds is not in violation of any agreement, the Department of Transportation shall
324     provide $1,000,000 of the funds described in Subsection (2)(b) to Draper City to pay for
325     highway improvements to 13490 South.]
326          [(7) If project savings are identified from the funds provided to the Department of
327     Transportation as described in Subsection (2)(b) and if the use of funds is not in violation of
328     any agreement, the Department of Transportation shall provide $3,000,000 of the funds
329     described in Subsection (2)(b) and from funds in the County of the First Class Highway
330     Projects Fund created by Section 72-2-121 to fund the following highway projects:]
331          [(a) $2,000,000 to West Valley City to pay for highway improvements to SR-201
332     Frontage Road at Bangerter Highway and associated roads to ease traffic flow onto Bangerter
333     Highway between SR-201 and Lake Park Boulevard; and]
334          [(b) $1,000,000 to West Valley City for improvements to SR-201 Frontage Road at
335     7200 West.]
336          [(8) If project savings are identified by the Department of Transportation from the
337     funds provided to the Department of Transportation as described in Subsection (2)(b) and if the
338     use of funds is not in violation of any agreement, the Department of Transportation shall
339     provide $1,100,000 of the funds described in Subsection (2)(b) and from funds in the County
340     of the First Class Highway Projects Fund created by Section 72-2-121 to West Jordan City for
341     highway improvements on 4000 West from 7800 South to Old Bingham Highway.]
342          [(9) If project savings are identified by the Department of Transportation from the
343     funds provided to the Department of Transportation as described in Subsection (2)(b) and if the
344     use of funds is not in violation of any agreement, the Department of Transportation shall
345     provide $1,000,000 of the funds described in Subsection (2)(b) and from funds in the County
346     of the First Class Highway Projects Fund created by Section 72-2-121 to Midvale City to fund
347     the following highway projects:]
348          [(a) $500,000 to Midvale City for improvements to Union Park Avenue from I-215 exit
349     south to Creek Road and Wasatch Boulevard; and]
350          [(b) $500,000 to Midvale City for improvements to 7200 South from I-15 to 700
351     West.]
352          [(10) (a) (i) Before providing funds to a municipality or county under Subsections (7),
353     (8), and (9), the Department of Transportation shall obtain from the municipality or county:]
354          [(A) a written certification signed by the county or city mayor or the mayor's designee
355     certifying that the municipality or county will use the funds provided under Subsections (7),
356     (8), and (9) solely for the projects described in Subsections (7), (8), and (9); and]
357          [(B) other documents necessary to protect the state and the bondholders and to ensure
358     that all legal requirements are met.]
359          [(ii) Except as provided in Subsection (10)(b), by January 1 of each year, the
360     municipality or county receiving funds described in Subsections (7), (8), and (9) shall submit to
361     the Department of Transportation a statement of cash flow for the current fiscal year detailing
362     the funds necessary to pay project costs for the projects described in Subsections (7), (8), and
363     (9).]
364          [(iii) Except as provided in Subsection (10)(b), after receiving the statement required
365     under Subsection (10)(a)(ii) and after July 1, the Department of Transportation shall provide
366     funds to the municipality or county necessary to pay project costs for the current fiscal year
367     based upon the statement of cash flow submitted by the municipality or county.]
368          [(iv) Upon the financial close of each project described in Subsections (7), (8), and (9),
369     the municipality or county receiving funds under Subsections (7), (8), and (9) shall submit a
370     statement to the Department of Transportation detailing the expenditure of funds received for
371     each project.]
372          [(b) For calendar year 2012 only:]
373          [(i) the municipality or county shall submit to the Department of Transportation a
374     statement of cash flow as provided in Subsection (10)(a)(ii) as soon as possible; and]
375          [(ii) the Department of Transportation shall provide funds to the municipality or county
376     necessary to pay project costs based upon the statement of cash flow.]
377          [(c) The commission or the state treasurer may make any statement of intent relating to
378     a reimbursement under this Subsection (10) that is necessary or desirable to comply with
379     federal tax law.]
380          Section 4. Section 72-2-124 is amended to read:
381          72-2-124. Transportation Investment Fund of 2005.
382          (1) There is created a capital projects fund entitled the Transportation Investment Fund
383     of 2005.
384          (2) The fund consists of money generated from the following sources:
385          (a) any voluntary contributions received for the maintenance, construction,
386     reconstruction, or renovation of state and federal highways;
387          (b) appropriations made to the fund by the Legislature;
388          (c) registration fees designated under Section 41-1a-1201;
389          (d) the sales and use tax revenues deposited into the fund in accordance with Section
390     59-12-103; and
391          (e) revenues transferred to the fund in accordance with Section 72-2-106.
392          (3) (a) The fund shall earn interest.
393          (b) All interest earned on fund money shall be deposited into the fund.
394          (4) (a) Except as provided in Subsection (4)(b), the executive director may only use
395     fund money to pay:
396          (i) the costs of maintenance, construction, reconstruction, or renovation to state and
397     federal highways prioritized by the Transportation Commission through the prioritization
398     process for new transportation capacity projects adopted under Section 72-1-304;
399          (ii) the costs of maintenance, construction, reconstruction, or renovation to the highway
400     projects described in Subsections 63B-18-401(2), (3), and (4);
401          (iii) principal, interest, and issuance costs of bonds authorized by Section 63B-18-401
402     minus the costs paid from the County of the First Class Highway Projects Fund in accordance
403     with Subsection [72-2-121(4)(f)] 72-2-121(4)(e);
404          (iv) for a fiscal year beginning on or after July 1, 2013, to transfer to the 2010 Salt
405     Lake County Revenue Bond Sinking Fund created by Section 72-2-121.3 the amount certified
406     by Salt Lake County in accordance with Subsection 72-2-121.3(4)(c) as necessary to pay the
407     debt service on $30,000,000 of the revenue bonds issued by Salt Lake County;
408          (v) principal, interest, and issuance costs of bonds authorized by Section 63B-16-101
409     for projects prioritized in accordance with Section 72-2-125;
410          (vi) all highway general obligation bonds that are intended to be paid from revenues in
411     the Centennial Highway Fund created by Section 72-2-118;
412          (vii) for fiscal year 2015-16 only, to transfer $25,000,000 to the County of the First
413     Class Highway Projects Fund created in Section 72-2-121 to be used for the purposes described
414     in Section 72-2-121; and
415          (viii) if a political subdivision provides a contribution equal to or greater than 40% of
416     the costs needed for construction, reconstruction, or renovation of paved pedestrian or paved
417     nonmotorized transportation for projects that:
418          (A) mitigate traffic congestion on the state highway system;
419          (B) are part of an active transportation plan approved by the department; and
420          (C) are prioritized by the commission through the prioritization process for new
421     transportation capacity projects adopted under Section 72-1-304.
422          (b) The executive director may use fund money to exchange for an equal or greater
423     amount of federal transportation funds to be used as provided in Subsection (4)(a).
424          (5) (a) Except as provided in Subsection (5)(b), the executive director may not use fund
425     money, including fund money from the Transit Transportation Investment Fund, within the
426     boundaries of a municipality that is required to adopt a moderate income housing plan element
427     as part of the municipality's general plan as described in Subsection 10-9a-401(3), if the
428     municipality has failed to adopt a moderate income housing plan element as part of the
429     municipality's general plan or has failed to implement the requirements of the moderate income
430     housing plan as determined by the results of the Department of Workforce Service's review of
431     the annual moderate income housing report described in Subsection 35A-8-803(1)(a)(vii).
432          (b) Within the boundaries of a municipality that is required under Subsection
433     10-9a-401(3) to plan for moderate income housing growth but has failed to adopt a moderate
434     income housing plan element as part of the municipality's general plan or has failed to
435     implement the requirements of the moderate income housing plan as determined by the results
436     of the Department of Workforce Service's review of the annual moderate income housing
437     report described in Subsection 35A-8-803(1)(a)(vii), the executive director:
438          (i) may use fund money in accordance with Subsection (4)(a) for a limited-access
439     facility;
440          (ii) may not use fund money for the construction, reconstruction, or renovation of an
441     interchange on a limited-access facility;
442          (iii) may use Transit Transportation Investment Fund money for a multi-community
443     fixed guideway public transportation project; and
444          (iv) may not use Transit Transportation Investment Fund money for the construction,
445     reconstruction, or renovation of a station that is part of a fixed guideway public transportation
446     project.
447          (6) (a) Except as provided in Subsection (6)(b), the executive director may not use fund
448     money, including fund money from the Transit Transportation Investment Fund, within the
449     boundaries of the unincorporated area of a county, if the county is required to adopt a moderate
450     income housing plan element as part of the county's general plan as described in Subsection
451     17-27a-401(3) and if the county has failed to adopt a moderate income housing plan element as
452     part of the county's general plan or has failed to implement the requirements of the moderate
453     income housing plan as determined by the results of the Department of Workforce Service's
454     review of the annual moderate income housing report described in Subsection
455     35A-8-803(1)(a)(vii).
456          (b) Within the boundaries of the unincorporated area of a county where the county is
457     required under Subsection 17-27a-401(3) to plan for moderate income housing growth but has
458     failed to adopt a moderate income housing plan element as part of the county's general plan or
459     has failed to implement the requirements of the moderate income housing plan as determined
460     by the results of the Department of Workforce Service's review of the annual moderate income
461     housing report described in Subsection 35A-8-803(1)(a)(vii), the executive director:
462          (i) may use fund money in accordance with Subsection (4)(a) for a limited-access
463     facility;
464          (ii) may not use fund money for the construction, reconstruction, or renovation of an
465     interchange on a limited-access facility;
466          (iii) may use Transit Transportation Investment Fund money for a multi-community
467     fixed guideway public transportation project; and
468          (iv) may not use Transit Transportation Investment Fund money for the construction,
469     reconstruction, or renovation of a station that is part of a fixed guideway public transportation
470     project.
471          (7) (a) Before bonds authorized by Section 63B-18-401 or 63B-27-101 may be issued
472     in any fiscal year, the department and the commission shall appear before the Executive
473     Appropriations Committee of the Legislature and present the amount of bond proceeds that the
474     department needs to provide funding for the projects identified in Subsections 63B-18-401(2),
475     (3), and (4) or Subsection 63B-27-101(2) for the current or next fiscal year.
476          (b) The Executive Appropriations Committee of the Legislature shall review and
477     comment on the amount of bond proceeds needed to fund the projects.
478          (8) The Division of Finance shall, from money deposited into the fund, transfer the
479     amount of funds necessary to pay principal, interest, and issuance costs of bonds authorized by
480     Section 63B-18-401 or 63B-27-101 in the current fiscal year to the appropriate debt service or
481     sinking fund.
482          (9) (a) There is created in the Transportation Investment Fund of 2005 the Transit
483     Transportation Investment Fund.
484          (b) The fund shall be funded by:
485          (i) contributions deposited into the fund in accordance with Section 59-12-103;
486          (ii) appropriations into the account by the Legislature;
487          (iii) private contributions; and
488          (iv) donations or grants from public or private entities.
489          (c) (i) The fund shall earn interest.
490          (ii) All interest earned on fund money shall be deposited into the fund.
491          (d) Subject to Subsection (9)(e), the Legislature may appropriate money from the fund
492     for public transit capital development of new capacity projects to be used as prioritized by the
493     commission.
494          (e) (i) The Legislature may only appropriate money from the fund for a public transit
495     capital development project or pedestrian or nonmotorized transportation project that provides
496     connection to the public transit system if the public transit district or political subdivision
497     provides funds of equal to or greater than 40% of the costs needed for the project.
498          (ii) A public transit district or political subdivision may use money derived from a loan
499     granted pursuant to Title 72, Chapter 2, Part 2, State Infrastructure Bank Fund, to provide all or
500     part of the 40% requirement described in Subsection (9)(e)(i) if:
501          (A) the loan is approved by the commission as required in Title 72, Chapter 2, Part 2,
502     State Infrastructure Bank Fund; and
503          (B) the proposed capital project has been prioritized by the commission pursuant to
504     Section 72-1-303.
505          Section 5. Section 72-2-201 is amended to read:
506          72-2-201. Definitions.
507          As used in this part:
508          (1) "Fund" means the State Infrastructure Bank Fund created under Section 72-2-202.
509          (2) "Infrastructure assistance" means any use of fund money, except an infrastructure
510     loan, to provide financial assistance for transportation projects, including:
511          (a) capital reserves and other security for bond or debt instrument financing; or
512          (b) any letters of credit, lines of credit, bond insurance, or loan guarantees obtained by
513     a public entity to finance transportation projects.
514          (3) "Infrastructure loan" means a loan of fund money to finance a transportation
515     project.
516          (4) "Public entity" means a state agency, county, municipality, local district, special
517     service district, an intergovernmental entity organized under state law, or the military
518     installation development authority created in Section 63H-1-201.
519          (5) "Transportation project":
520          (a) means a project:
521          (i) to improve a state or local highway;
522          (ii) to improve a public transportation facility or nonmotorized transportation facility;
523          (iii) to construct or improve parking facilities [that support an intermodal regional
524     transportation purpose]; or
525          (iv) that is subject to a transportation reinvestment zone agreement pursuant to Section
526     11-13-227 if the state is party to the agreement;
527          (b) includes the costs of acquisition, construction, reconstruction, rehabilitation,
528     equipping, and fixturing; and
529          (c) may only include a project if the project is part of:
530          (i) the statewide long range plan;
531          (ii) a regional transportation plan of the area metropolitan planning organization if a
532     metropolitan planning organization exists for the area; or
533          (iii) a local government general plan or economic development initiative.
534          Section 6. Section 72-2-203 is amended to read:
535          72-2-203. Loans and assistance -- Authority -- Rulemaking.
536          (1) Money in the fund may be used by the department, as prioritized by the commission
537     or as directed by the Legislature, to make infrastructure loans or to provide infrastructure
538     assistance to any public entity for any purpose consistent with any applicable constitutional
539     limitation.
540          (2) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
541     commission shall make rules providing procedures and standards for making infrastructure
542     loans and providing infrastructure assistance and a process for prioritization of requests for
543     loans and assistance.
544          (3) The prioritization process, procedures, and standards for making an infrastructure
545     loan or providing infrastructure assistance may include consideration of the following:
546          (a) availability of money in the fund;
547          (b) credit worthiness of the project;
548          (c) demonstration that the project will encourage, enhance, or create economic benefits
549     to the state or political subdivision;
550          (d) likelihood that assistance would enable the project to proceed at an earlier date than
551     would otherwise be possible;
552          (e) the extent to which assistance would foster innovative public-private partnerships
553     and attract private debt or equity investment;
554          (f) demonstration that the project provides a benefit to the state highway system,
555     including safety or mobility improvements;
556          (g) the amount of proposed assistance as a percentage of the overall project costs with
557     emphasis on local and private participation;
558          (h) demonstration that the project provides intermodal connectivity with public
559     transportation, pedestrian, or nonmotorized transportation facilities; and
560          (i) other provisions the commission considers appropriate.
561          Section 7. Section 72-2-204 is amended to read:
562          72-2-204. Loan program procedures -- Repayment.
563          (1) A public entity may obtain an infrastructure loan from the department, upon
564     approval by the commission, by entering into a loan contract with the department secured by
565     legally issued bonds, notes, or other evidence of indebtedness validly issued under state law,
566     including pledging all or any portion of a revenue source controlled by the public entity to the
567     repayment of the loan.
568          (2) A loan or assistance from the fund shall bear interest at [or] a rate not to exceed
569     .5% above bond market interest rates available to the state.
570          (3) A loan shall be repaid no later than [10] 15 years from the date the department
571     issues the loan to the borrower, with repayment commencing no later than:
572          (a) when the project is completed; or
573          (b) in the case of a highway project, when the facility has opened to traffic.
574          (4) The public entity shall repay the infrastructure loan in accordance with the loan
575     contract from any of the following sources:
576          (a) transportation project revenues, including special assessment revenues;
577          (b) general funds of the public entity;
578          (c) money withheld under Subsection (7); or
579          (d) any other legally available revenues.
580          (5) An infrastructure loan contract with a public entity may provide that a portion of
581     the proceeds of the loan may be applied to fund a reserve fund to secure the repayment of the
582     loan.
583          (6) Before obtaining an infrastructure loan, a county or municipality shall:
584          (a) publish its intention to obtain an infrastructure loan at least once in accordance with
585     the publication of notice requirements under Section 11-14-316; and
586          (b) adopt an ordinance or resolution authorizing the infrastructure loan.
587          (7) (a) If a public entity fails to comply with the terms of its infrastructure loan
588     contract, the department may seek any legal or equitable remedy to obtain compliance or
589     payment of damages.
590          (b) If a public entity fails to make infrastructure loan payments when due, the state
591     shall, at the request of the department, withhold an amount of money due to the public entity
592     and deposit the withheld money in the fund to pay the amounts due under the contract.
593          (c) The department may elect when to request the withholding of money under this
594     Subsection (7).
595          (8) All loan contracts, bonds, notes, or other evidence of indebtedness securing the
596     loan contracts shall be held, collected, and accounted for in accordance with Section
597     63B-1b-202.