Senator Kirk A. Cullimore proposes the following substitute bill:


1     
BONDING AMENDMENTS

2     
2020 GENERAL SESSION

3     
STATE OF UTAH

4     
Chief Sponsor: Kirk A. Cullimore

5     
House Sponsor: Brady Brammer

6     

7     LONG TITLE
8     General Description:
9          This bill modifies state and local general obligation bond provisions.
10     Highlighted Provisions:
11          This bill:
12          ▸     provides that a first lien is created on ad valorem taxes for the payment of principal
13     and interest on the local political subdivision's general obligation bonds;
14          ▸     provides that a local school board may use revenues remaining from an ad valorem
15     tax levied for school district technology programs or projects after the principal,
16     premium, and interest on the district's bonds have been paid for the applicable
17     period for which the taxes were levied;
18          ▸     provides that a lien does not attach to any technology programs or projects paid for
19     from the remaining tax revenues;
20          ▸     provides that a general obligation bond issued and sold by or on behalf of a local
21     political subdivision is secured by a first statutory lien on all revenues received
22     pursuant to the levy and collection of ad valorem taxes, that:
23               •     arises and attaches immediately to the ad valorem tax revenues without the need
24     for any action or authorization by the local political subdivision;
25               •     is valid and binding from the time the general obligation bonds are executed and
26     delivered; and
27               •     is effective, binding, and enforceable against the local political subdivision, its
28     successors, transferees, and creditors, and all others asserting rights to the ad
29     valorem tax revenues;
30          ▸     requires that amounts appropriated or added to the tax levy to pay principal of,
31     premium, and interest on general obligation bonds be applied to the payment of
32     those bonds;
33          ▸     modifies a provision relating to the Legislature's appropriation of money each fiscal
34     year to pay the principal, premium, and interest due on the State's outstanding
35     general obligation bonds;
36          ▸     modifies amounts related to bond proceeds provided to the State Infrastructure Bank
37     Fund;
38          ▸     modifies provisions related to the State Infrastructure Bank Fund;
39          ▸     authorizes the issuance of general obligation bonds for Department of
40     Transportation projects; and
41          ▸     makes technical and conforming changes.
42     Money Appropriated in this Bill:
43          None
44     Other Special Clauses:
45          None
46     Utah Code Sections Affected:
47     AMENDS:
48          11-14-310, as last amended by Laws of Utah 2018, Chapter 288
49          11-14-501, as last amended by Laws of Utah 2007, Chapter 272
50          63B-27-101, as last amended by Laws of Utah 2019, Chapters 327, 479, and 497
51          63J-1-205.1, as enacted by Laws of Utah 2015, Chapter 175
52          72-2-121, as last amended by Laws of Utah 2019, Chapters 479 and 497
53          72-2-121.3, as last amended by Laws of Utah 2015, Chapter 421
54          72-2-121.4, as last amended by Laws of Utah 2015, Chapter 421
55          72-2-124, as last amended by Laws of Utah 2019, Chapters 327 and 479
56          72-2-201, as last amended by Laws of Utah 2019, Chapter 479
57          72-2-203, as last amended by Laws of Utah 2019, Chapter 479
58          72-2-204, as last amended by Laws of Utah 2019, Chapter 479
59     ENACTS:
60          63B-30-101, Utah Code Annotated 1953
61     

62     Be it enacted by the Legislature of the state of Utah:
63          Section 1. Section 11-14-310 is amended to read:
64          11-14-310. General obligation bonds -- Levy and collection of taxes.
65          (1) (a) (i) Any bonds issued under this chapter [in such manner] that [they] are not
66     payable solely from revenues other than those derived from ad valorem taxes are full general
67     obligations of the local political subdivision[, for].
68          (ii) The local political subdivision's full faith and credit is pledged for the prompt and
69     punctual payment of principal of and interest on [which the full faith and credit of the local
70     political subdivision are pledged, and the] the local political subdivision's general obligation
71     bonds.
72          (iii) A local political subdivision is [hereby expressly] required, regardless of any
73     limitations [which] that may otherwise exist on the amount of taxes [which] that the local
74     political subdivision may levy, to provide for the annual levy and collection [annually] of ad
75     valorem taxes, without limitation as to the rate or amount, on all taxable property in the local
76     political subdivision fully sufficient for [such purpose] the payment of principal and interest on
77     the local political subdivision's general obligation bonds as the principal and interest become
78     due.
79          (iv) If by law ad valorem taxes for the local political subdivision are levied by a board
80     other than its governing body[,]:
81          (A) the taxes [for which provision is herein made] shall be levied by [such] the other
82     board; and
83          (B) the local political subdivision shall [be under the duty in due season in], each year,
84     [to] provide [such other] the levying board with all information necessary to [the] levy [of] the
85     taxes in the required amount.
86          (v) [Such taxes] Taxes levied under Subsection (1)(a)(iv) shall be levied and collected
87     by the same officers, at the same time, and in the same manner as are other taxes levied for the
88     local political subdivision.
89          (b) The pledge of the taxes levied under this section shall constitute an automatically
90     arising first lien on the taxes as provided in Section 11-14-501.
91          [(b)] (c) (i) A local school board may use revenues remaining from a tax levied under
92     this section for school district technology programs or projects after the principal of and
93     premium and interest on the district's general obligation bonds have been paid for the
94     applicable period for which the taxes were levied.
95          (ii) A lien created pursuant to Section 11-14-501 does not attach to any technology
96     programs or projects paid for from the remaining tax revenues under Subsection (1)(c)(i).
97          (2) (a) If [any] a local political subdivision [shall neglect] neglects or [fail] fails for any
98     reason to levy or collect or to cause to be levied or collected sufficient taxes for the prompt and
99     punctual payment of such principal and interest, [any] a person in interest may enforce levy and
100     collection [thereof in any] of sufficient taxes in a court having jurisdiction of the subject
101     matter[, and any].
102          (b) A suit, action, or proceeding brought by [such] a person in interest under
103     Subsection (2)(a) shall be a preferred cause and shall be heard and disposed of without delay.
104          (c) All provisions of the constitution and laws relating to the collection of county and
105     municipal taxes and tax sales [shall also] apply to and regulate the collection of the taxes levied
106     pursuant to this section, through the officer whose duty it is to collect the taxes and money due
107     the local political subdivision.
108          Section 2. Section 11-14-501 is amended to read:
109          11-14-501. Creation and perfection of government security interests.
110          (1) As used in this section:
111          (a) "Bonds" means any bond, note, lease, or other obligation of a governmental unit.
112          (b) (i) "General obligation bond" means a bond, note, warrant, certificate of
113     indebtedness, or other obligation of a local political subdivision that:
114          (A) is payable in whole or in part from revenues derived from ad valorem taxes; and
115          (B) constitutes an indebtedness within the meaning of any applicable constitutional or
116     statutory debt limitation.
117          (ii) "General obligation bond" includes a general obligation tax, revenue, or bond
118     anticipation note issued by a local political subdivision that is payable in whole or in part from
119     revenues derived from ad valorem taxes.
120          [(b)] (c) "Governmental unit" has the meaning assigned in Section 70A-9a-102.
121          [(c)] (d) "Pledge" means the creation of a security interest of any kind.
122          [(d)] (e) "Property" means any property or interests in property, other than real
123     property.
124          [(e)] (f) "Security agreement" means any resolution, ordinance, indenture, document, or
125     other agreement or instrument under which the revenues, fees, rents, charges, taxes, or other
126     property are pledged to secure the bonds.
127          (2) This section expressly governs the creation, perfection, priority, and enforcement of
128     a security interest created by the state or a governmental unit of the state, notwithstanding
129     anything in Title 70A, Chapter 9a, Uniform Commercial Code - Secured Transactions, to the
130     contrary.
131          (3) (a) The revenues, fees, rents, charges, taxes, or other property pledged by a
132     governmental unit for the purpose of securing its bonds are immediately subject to the lien of
133     the pledge.
134          (b) (i) The lien is a perfected lien upon the effective date of the security agreement.
135          (ii) The physical delivery, filing, or recording of a security agreement or financing
136     statement under the Uniform Commercial Code or otherwise, or any other similar act, is not
137     necessary to perfect the lien.
138          (c) The lien of any pledge is valid, binding, perfected, and enforceable from the time
139     the pledge is made.
140          (d) The lien of the pledge has priority:
141          (i) based on the time of the creation of the pledge unless otherwise provided in the
142     security agreement; and
143          (ii) as against all parties having claims of any kind in tort, contract, or otherwise
144     against the governmental unit, regardless of whether or not the parties have notice of the lien.
145          (e) Each pledge and security agreement made for the benefit or security of any of the
146     bonds shall continue to be effective until:
147          (i) the principal, interest, and premium, if any, on the bonds have been fully paid;
148          (ii) provision for payment has been made; or
149          (iii) the lien created by the security agreement has been released by agreement of the
150     parties in interest or as provided by the security agreement that created the lien.
151          (4) (a) General obligation bonds issued and sold by or on behalf of a local political
152     subdivision shall be secured by a first statutory lien on all revenues received pursuant to the
153     levy and collection of ad valorem taxes.
154          (b) The lien described in Subsection (4)(a):
155          (i) arises and attaches immediately to the ad valorem tax revenues without the need for
156     any action or authorization by the local political subdivision;
157          (ii) is valid and binding from the time the general obligation bonds are executed and
158     delivered; and
159          (iii) is effective, binding, and enforceable against the local political subdivision, its
160     successors, transferees, and creditors, and all others asserting rights to the ad valorem tax
161     revenues.
162          (c) A lien described in Subsection (4)(a) is enforceable against the parties described in
163     Subsection (4)(b)(iii):
164          (i) regardless of whether the parties described in Subsection (4)(b)(iii) have notice of
165     the lien; and
166          (ii) without the need for any physical delivery, recordation, filing, or further action.
167          (5) Any amounts appropriated or added to the tax levy to pay principal of and premium
168     and interest on general obligation bonds:
169          (a) shall be applied solely to the payment of those general obligation bonds; and
170          (b) may not be used for any other purpose, except as provided by law.
171          (6) This section applies to all revenues received pursuant to the levy and collection of
172     the ad valorem tax regardless of the date on which the general obligation bonds were issued.
173          (7) This section applies to all bonds, including bonds issued before or after the
174     effective date of this section.
175          Section 3. Section 63B-27-101 is amended to read:
176          63B-27-101. Highway bonds -- Maximum amount -- Use of proceeds for highway
177     projects.
178          (1) (a) Subject to the restriction in Subsection (1)(c), the total amount of bonds issued
179     under this section may not exceed $1,000,000,000 for acquisition and construction proceeds ,
180     plus additional amounts necessary to pay costs of issuance, to pay capitalized interest, and to
181     fund any existing debt service reserve requirements, with the total amount of the bonds not to
182     exceed $1,010,000,000 .
183          (b) When the Department of Transportation certifies to the commission that the
184     requirements of Subsection 72-2-124(7) have been met and certifies the amount of bond
185     proceeds that the commission needs to provide funding for the projects described in Subsection
186     (2) for the current or next fiscal year, the commission may issue and sell general obligation
187     bonds in an amount equal to the certified amount, plus additional amounts necessary to pay
188     costs of issuance , to pay capitalized interest, and to fund any existing debt service reserve
189     requirements, not to exceed 1% of the certified amount .
190          (c) The commission may not issue general obligation bonds authorized under this
191     section if the issuance of the general obligation bonds would result in the total current
192     outstanding general obligation debt of the state exceeding 50% of the limitation described in
193     the Utah Constitution, Article XIV, Section 1.
194          (2) Except as provided in Subsections (3) and (4), proceeds from the issuance of bonds
195     shall be provided to the Department of Transportation to pay all or part of the costs of the
196     following state highway construction or reconstruction projects:
197          (a) state and federal highways prioritized by the Transportation Commission through
198     the prioritization process for new transportation capacity projects adopted under Section
199     72-1-304, giving priority consideration for projects with a regional significance or that support
200     economic development within the state, including:
201          (i) projects that are prioritized but exceed available cash flow beyond the normal
202     programming horizon; or
203          (ii) projects prioritized in the state highway construction program; and
204          (b) $100,000,000 to be used by the Department of Transportation for transportation
205     improvements as prioritized by the Transportation Commission for projects that:
206          (i) have a significant economic development impact associated with recreation and
207     tourism within the state; and
208          (ii) address significant needs for congestion mitigation.
209          (3) [Fifty-six] Forty-six million dollars of the bond proceeds issued under this section
210     shall be provided to the State Infrastructure Bank Fund created by Section 72-2-202 to make
211     funds available for a transportation infrastructure loan or transportation infrastructure
212     assistance under Title 72, Chapter 2, Part 2, State Infrastructure Bank Fund, including the
213     amounts as follows:
214          (a) [$24,000,000] $14,000,000 to the military installation development authority
215     created in Section 63H-1-201;
216          (b) $5,000,000 to the Inland Port Authority created in Section 11-58-201, for highway,
217     infrastructure, and rail right-of-way acquisition, design, engineering, and construction, to be
218     repaid through tax differential; and
219          (c) $7,000,000 to Midvale City for a parking structure in proximity to an intermodal
220     transportation facility that enhances economic development within the city.
221          (4) (a) Four million dollars of the bond proceeds issued under this section shall be used
222     for a public transit fixed guideway rail station associated with or adjacent to an institution of
223     higher education.
224          (b) Nineteen million dollars of the bond proceeds issued under this section shall be used
225     by the Department of Transportation for the design, engineering, construction, or
226     reconstruction of underpasses under a state highway connecting a state park and a project area
227     created by a military installation development authority created in Section 63H-1-201.
228          (c) Nine million dollars of the bond proceeds issued under this section shall be used by
229     the Department of Transportation for infrastructure improvements related to the Provo Airport.
230          (d) If project savings are identified by the Department of Transportation from the funds
231     provided to the Department of Transportation as described in this section, the Department of
232     Transportation may use available funding to study, design, engineer, and construct rail access
233     through I-80 in western Salt Lake County.
234          (5) The bond proceeds issued under this section shall be provided to the Department of
235     Transportation.
236          (6) The costs under Subsection (2) may include the costs of studies necessary to make
237     transportation infrastructure improvements, the costs of acquiring land, interests in land, and
238     easements and rights-of-way, the costs of improving sites, and making all improvements
239     necessary, incidental, or convenient to the facilities, and the costs of interest estimated to
240     accrue on these bonds during the period to be covered by construction of the projects plus a
241     period of six months after the end of the construction period, interest estimated to accrue on
242     any bond anticipation notes issued under the authority of this title, and all related engineering,
243     architectural, and legal fees.
244          (7) The commission or the state treasurer may make any statement of intent relating to
245     a reimbursement that is necessary or desirable to comply with federal tax law.
246          (8) The Department of Transportation may enter into agreements related to the projects
247     described in Subsection (2) before the receipt of proceeds of bonds issued under this section.
248          Section 4. Section 63B-30-101 is enacted to read:
249     
Part 3. General Obligation Bonds

250          63B-30-101. General obligation bonds for transportation projects.
251          (1) As used in this section, "transportation projects" means Department of
252     Transportation projects described in Subsection 63B-27-101(2).
253          (2) (a) When the Department of Transportation certifies to the commission that the
254     requirements of Subsection 72-2-124(7) have been met and certifies the amount of bond
255     proceeds that the commission needs to provide funding for the transportation projects for the
256     current or next fiscal year, the commission may issue and sell general obligation bonds in an
257     amount equal to the certified amount, plus additional amounts necessary to pay costs of
258     issuance, to pay capitalized interest, and to fund any existing debt service reserve requirements,
259     not to exceed 1% of the certified amount.
260          (b) The commission may not issue general obligation bonds authorized under this
261     section if the issuance of the general obligation bonds would result in the total current
262     outstanding general obligation debt of the state exceeding 50% of the limitation described in
263     the Utah Constitution, Article XIV, Section 1.
264          (3) The commission may issue general obligation bonds as provided in this section.
265          (4) The total amount of bonds to be issued under this section may not exceed
266     $89,510,000 for acquisition and construction proceeds, plus additional amounts necessary to
267     pay costs of issuance, to pay capitalized interest, and to fund any existing debt service reserve
268     requirements, with the total amount of the bonds not to exceed $92,000,000.
269          (5) The commission shall ensure that proceeds from the issuance of bonds under this
270     section are provided to the Department of Transportation for use by the Department of
271     Transportation to pay all or part of the cost of the transportation projects, including:
272          (a) interest estimated to accrue on the bonds authorized in this section until the
273     completion of construction of the transportation project, plus a period of 12 months after the
274     end of construction; and
275          (b) all related engineering, architectural, and legal fees.
276          (6) The Department of Transportation shall transfer $20,000,000 of bond proceeds
277     under this section to the Governor's Office of Economic Development for a
278     transportation-related project in a project area created by the military installation development
279     authority, created in Section 63H-1-201.
280          (7) (a) The Department of Transportation may enter into agreements related to the
281     transportation projects before the receipt of proceeds of bonds issued under this section.
282          (b) The state intends to use proceeds of tax-exempt bonds to reimburse itself for
283     expenditures for costs of the transportation projects.
284          Section 5. Section 63J-1-205.1 is amended to read:
285          63J-1-205.1. Legislature to pay debt service first.
286          [In appropriating money from the General Fund, the] The Legislature shall appropriate
287     money each fiscal year sufficient to [debt service] pay the principal, premium, and interest due
288     on the state's outstanding general obligation bonds before making any other appropriation in
289     the fiscal year.
290          Section 6. Section 72-2-121 is amended to read:
291          72-2-121. County of the First Class Highway Projects Fund.
292          (1) There is created a special revenue fund within the Transportation Fund known as
293     the "County of the First Class Highway Projects Fund."
294          (2) The fund consists of money generated from the following revenue sources:
295          (a) any voluntary contributions received for new construction, major renovations, and
296     improvements to highways within a county of the first class;
297          (b) the portion of the sales and use tax described in Subsection 59-12-2214(3)(b)
298     deposited in or transferred to the fund;
299          (c) the portion of the sales and use tax described in Section 59-12-2217 deposited in or
300     transferred to the fund; and
301          (d) a portion of the local option highway construction and transportation corridor
302     preservation fee imposed in a county of the first class under Section 41-1a-1222 deposited in or
303     transferred to the fund.
304          (3) (a) The fund shall earn interest.
305          (b) All interest earned on fund money shall be deposited into the fund.
306          (4) The executive director shall use the fund money only:
307          (a) to pay debt service and bond issuance costs for bonds issued under Sections
308     63B-16-102, 63B-18-402, and 63B-27-102;
309          (b) for right-of-way acquisition, new construction, major renovations, and
310     improvements to highways within a county of the first class and to pay any debt service and
311     bond issuance costs related to those projects, including improvements to a highway located
312     within a municipality in a county of the first class where the municipality is located within the
313     boundaries of more than a single county;
314          (c) for the construction, acquisition, use, maintenance, or operation of:
315          (i) an active transportation facility for nonmotorized vehicles;
316          (ii) multimodal transportation that connects an origin with a destination; or
317          (iii) a facility that may include a:
318          (A) pedestrian or nonmotorized vehicle trail;
319          (B) nonmotorized vehicle storage facility;
320          (C) pedestrian or vehicle bridge; or
321          (D) vehicle parking lot or parking structure;
322          [(d) for fiscal year 2012-13 only, to pay for or to provide funds to a municipality or
323     county to pay for a portion of right-of-way acquisition, construction, reconstruction,
324     renovations, and improvements to highways described in Subsections 72-2-121.4(7), (8), and
325     (9);]
326          [(e)] (d) to transfer to the 2010 Salt Lake County Revenue Bond Sinking Fund created
327     by Section 72-2-121.3 the amount required in Subsection 72-2-121.3(4)(c) minus the amounts
328     transferred in accordance with Subsection 72-2-124(4)(a)(iv);
329          [(f)] (e) for a fiscal year beginning on or after July 1, 2013, to pay debt service and
330     bond issuance costs for $30,000,000 of the bonds issued under Section 63B-18-401 for the
331     projects described in Subsection 63B-18-401(4)(a);
332          [(g)] (f) for a fiscal year beginning on or after July 1, 2013, and after the department
333     has verified that the amount required under Subsection 72-2-121.3(4)(c) is available in the
334     fund, to transfer an amount equal to 50% of the revenue generated by the local option highway
335     construction and transportation corridor preservation fee imposed under Section 41-1a-1222 in
336     a county of the first class:
337          (i) to the legislative body of a county of the first class; and
338          (ii) to be used by a county of the first class for:
339          (A) highway construction, reconstruction, or maintenance projects; or
340          (B) the enforcement of state motor vehicle and traffic laws;
341          [(h) for fiscal year 2015 only, and after the department has verified that the amount
342     required under Subsection 72-2-121.3(4)(c) is available in the fund and the transfer under
343     Subsection (4)(f) has been made, to transfer an amount equal to the remainder of the revenue
344     available in the fund for the 2015 fiscal year:]
345          [(i) to the legislative body of a county of the first class; and]
346          [(ii) to be used by a county of the first class for:]
347          [(A) highway construction, reconstruction, or maintenance projects; or]
348          [(B) the enforcement of state motor vehicle and traffic laws;]
349          [(i)] (g) for fiscal year 2015-16 only, and after the department has verified that the
350     amount required under Subsection 72-2-121.3(4)(c) is available in the fund and the transfer
351     under Subsection (4)[(f)](e) has been made, to transfer an amount equal to $25,000,000:
352          (i) to the legislative body of a county of the first class; and
353          (ii) to be used by the county for the purposes described in this section;
354          [(j)] (h) for a fiscal year beginning on or after July 1, 2015, after the department has
355     verified that the amount required under Subsection 72-2-121.3(4)(c) is available in the fund
356     and the transfer under Subsection (4)[(f)](e) has been made, to annually transfer an amount
357     equal to up to 42.5% of the sales and use tax revenue imposed in a county of the first class and
358     deposited into the fund in accordance with Subsection 59-12-2214(3)(b) to:
359          (i) the appropriate debt service or sinking fund for the repayment of bonds issued under
360     Section 63B-27-102; and
361          (ii) the Transportation Fund created in Section 72-2-102 until $28,079,000 has been
362     deposited into the Transportation Fund;
363          [(k)] (i) for a fiscal year beginning on or after July 1, 2018, after the department has
364     verified that the amount required under Subsection 72-2-121.3(4)(c) is available in the fund
365     and after the transfer under Subsection (4)[(e)](d), the payment under Subsection (4)[(f)](e),
366     and the transfers under Subsections (4)[(j)](h)(i) and (ii) have been made, to annually transfer
367     20% of the amount deposited into the fund under Subsection (2)(b) to a public transit district in
368     a county of the first class to fund a system for public transit;
369          [(l)] (j) for a fiscal year beginning on or after July 1, 2018, after the department has
370     verified that the amount required under Subsection 72-2-121.3(4)(c) is available in the fund
371     and after the transfer under Subsection (4)[(e)](d), the payment under Subsection (4)[(f)](e),
372     and the transfers under Subsections (4)[(j)](h)(i) and (ii) have been made, to annually transfer
373     20% of the amount deposited into the fund under Subsection (2)(b):
374          (i) to the legislative body of a county of the first class; and
375          (ii) to fund parking facilities in a county of the first class that facilitate significant
376     economic development and recreation and tourism within the state;
377          [(m)] (k) for the 2018-19 fiscal year only, after the department has verified that the
378     amount required under Subsection 72-2-121.3(4)(c) is available in the fund and after the
379     transfer under Subsection (4)[(e)](d), the payment under Subsection (4)[(f)](e), and the
380     transfers under Subsections [(4)(j) through (l)] (4)(h), (i), and (j) have been made, to transfer
381     $12,000,000 to the [Department of Transportation] department to distribute for the following
382     projects:
383          (i) $2,000,000 to West Valley City for highway improvement to 4100 South;
384          (ii) $1,000,000 to Herriman for highway improvements to Herriman Boulevard from
385     6800 West to 7300 West;
386          (iii) $1,100,000 to South Jordan for highway improvements to Grandville Avenue;
387          (iv) $1,800,000 to Riverton for highway improvements to Old Liberty Way from 13400
388     South to 13200 South;
389          (v) $1,000,000 to Murray City for highway improvements to 5600 South from State
390     Street to Van Winkle;
391          (vi) $1,000,000 to Draper for highway improvements to Lone Peak Parkway from
392     11400 South to 12300 South;
393          (vii) $1,000,000 to Sandy City for right-of-way acquisition for Monroe Street;
394          (viii) $900,000 to South Jordan City for right-of-way acquisition and improvements to
395     10200 South from 2700 West to 3200 West;
396          (ix) $1,000,000 to West Jordan for highway improvements to 8600 South near
397     Mountain View Corridor;
398          (x) $700,000 to South Jordan right-of-way improvements to 10550 South; and
399          (xi) $500,000 to Salt Lake County for highway improvements to 2650 South from
400     7200 West to 8000 West; and
401          [(n)] (l) for a fiscal year beginning after the amount described in Subsection (4)[(j)](h)
402     has been repaid to the Transportation Fund until fiscal year 2030, or sooner if the amount
403     described in Subsection (4)[(j)](h)(ii) has been repaid, after the department has verified that the
404     amount required under Subsection 72-2-121.3(4)(c) is available in the fund and the transfer
405     under Subsection (4)[(f)](e) has been made, and after the bonds under Section 63B-27-102
406     have been repaid, to annually transfer an amount equal to up to 42.5% of the sales and use tax
407     revenue imposed in a county of the first class and deposited into the fund in accordance with
408     Subsection 59-12-2214(3)(b):
409          (i) to the legislative body of a county of the first class; and
410          (ii) to be used by the county for the purposes described in this section.
411          (5) The revenues described in Subsections (2)(b), (c), and (d) that are deposited in the
412     fund and bond proceeds from bonds issued under Sections 63B-16-102, 63B-18-402, and
413     63B-27-102 are considered a local matching contribution for the purposes described under
414     Section 72-2-123.
415          (6) The additional administrative costs of the department to administer this fund shall
416     be paid from money in the fund.
417          (7) Notwithstanding any statutory or other restrictions on the use or expenditure of the
418     revenue sources deposited into this fund, the Department of Transportation may use the money
419     in this fund for any of the purposes detailed in Subsection (4).
420          (8) (a) For a fiscal year beginning on or after July 1, 2018, at the end of each fiscal
421     year, after all programmed payments and transfers authorized or required under this section
422     have been made, on July 30 the department shall transfer the remainder of the money in the
423     fund to the Transportation Fund to reduce the amount owed to the Transportation Fund under
424     Subsection (4)(j)(ii).
425          (b) The department shall provide notice to a county of the first class of the amount
426     transferred in accordance with this Subsection (8).
427          (9) (a) Any revenue in the fund that is not specifically allocated and obligated under
428     [this section] Subsections (4) through (8) is subject to the review process described in this
429     Subsection (9).
430          (b) A county of the first class shall create a county transportation advisory committee
431     as described in Subsection (9)(c) to review proposed transportation and, as applicable, public
432     transit projects and rank projects for allocation of funds.
433          (c) The county transportation advisory committee described in Subsection (9)(b) shall
434     be composed of the following 13 members:
435          (i) six members who are residents of the county, nominated by the county executive
436     and confirmed by the county legislative body who are:
437          (A) members of a local advisory council of a large public transit district as defined in
438     Section 17B-2a-802;
439          (B) county council members; or
440          (C) other residents with expertise in transportation planning and funding; and
441          (ii) seven members nominated by the county executive, and confirmed by the county
442     legislative body, chosen from mayors or managers of cities or towns within the county.
443          (d) (i) A majority of the members of the county transportation advisory committee
444     constitutes a quorum.
445          (ii) The action by a quorum of the county transportation advisory committee constitutes
446     an action by the county transportation advisory committee.
447          (e) The county body shall determine:
448          (i) the length of a term of a member of the county transportation advisory committee;
449          (ii) procedures and requirements for removing a member of the county transportation
450     advisory committee;
451          (iii) voting requirements of the county transportation advisory committee;
452          (iv) chairs or other officers of the county transportation advisory committee;
453          (v) how meetings are to be called and the frequency of meetings, but not less than once
454     annually; and
455          (vi) the compensation, if any, of members of the county transportation advisory
456     committee.
457          (f) The county shall establish by ordinance criteria for prioritization and ranking of
458     projects, which may include consideration of regional and countywide economic development
459     impacts, including improved local access to:
460          (i) employment;
461          (ii) recreation;
462          (iii) commerce; and
463          (iv) residential areas.
464          (g) The county transportation advisory committee shall evaluate and rank each
465     proposed public transit project and regionally significant transportation facility according to
466     criteria developed pursuant to Subsection (9)(f).
467          (h) (i) After the review and ranking of each project as described in this section, the
468     county transportation advisory committee shall provide a report and recommend the ranked list
469     of projects to the county legislative body and county executive.
470          (ii) After review of the recommended list of projects, as part of the county budgetary
471     process, the county executive shall review the list of projects and may include in the proposed
472     budget the proposed projects for allocation, as funds are available.
473          (i) The county executive of the county of the first class, with information provided by
474     the county and relevant state entities, shall provide a report annually to the county
475     transportation advisory committee, and to the mayor or manager of each city, town, or metro
476     township in the county, including the following:
477          (i) the amount of revenue received into the fund during the past year;
478          (ii) any funds available for allocation;
479          (iii) funds obligated for debt service; and
480          (iv) the outstanding balance of transportation-related debt.
481          (10) As resources allow, the department shall study in 2020 transportation connectivity
482     in the southwest valley of Salt Lake County, including the feasibility of connecting major
483     east-west corridors to U-111.
484          Section 7. Section 72-2-121.3 is amended to read:
485          72-2-121.3. Special revenue fund -- 2010 Salt Lake County Revenue Bond
486     Sinking Fund.
487          (1) There is created a special revenue fund within the County of the First Class
488     Highway Projects Fund entitled "2010 Salt Lake County Revenue Bond Sinking Fund."
489          (2) The fund consists of:
490          (a) money transferred into the fund from the County of the First Class Highway
491     Projects Fund in accordance with Subsection [72-2-121(4)(e)] 72-2-121(4)(d); and
492          (b) for a fiscal year beginning on or after July 1, 2013, money transferred into the fund
493     from the Transportation Investment Fund of 2005 in accordance with Subsection
494     72-2-124(4)(a)(iv).
495          (3) (a) The fund shall earn interest.
496          (b) All interest earned on fund money shall be deposited into the fund.
497          (4) (a) The director of the Division of Finance may use fund money only as provided in
498     this section.
499          (b) The director of the Division of Finance may not distribute any money from the fund
500     under this section until the director has received a formal opinion from the attorney general that
501     Salt Lake County has entered into a binding agreement with the state of Utah containing all of
502     the terms required by Section 72-2-121.4.
503          (c) Except as provided in Subsection (4)(b), and until the bonds issued by Salt Lake
504     County as provided in the interlocal agreement required by Section 72-2-121.4 are paid off, on
505     July 1 of each year beginning July 1, 2011, the director of the Division of Finance shall transfer
506     from the County of the First Class Highway Projects Fund and the Transportation Investment
507     Fund of 2005 to the 2010 Salt Lake County Revenue Bond Sinking Fund the amount certified
508     by Salt Lake County that is necessary to pay:
509          (i) up to two times the debt service requirement necessary to pay debt service on the
510     revenue bonds issued by Salt Lake County for that fiscal year; and
511          (ii) any additional amounts necessary to pay costs of issuance, pay capitalized interest,
512     and fund any debt service reserve requirements.
513          (d) Except as provided in Subsection (4)(b), and until the bonds issued by Salt Lake
514     County as provided in the interlocal agreement required by Section 72-2-121.4 are paid off, the
515     director of the Division of Finance shall, upon request from Salt Lake County, transfer to Salt
516     Lake County or its designee from the 2010 Salt Lake County Revenue Bond Sinking Fund the
517     amount certified by Salt Lake County as necessary to pay:
518          (i) the debt service on the revenue bonds issued by Salt Lake County as provided in the
519     interlocal agreement required by Section 72-2-121.4; and
520          (ii) any additional amounts necessary to pay costs of issuance, pay capitalized interest,
521     and fund any debt service reserve requirements.
522          (5) Any money remaining in the 2010 Salt Lake County Revenue Bond Sinking Fund
523     at the end of the fiscal year lapses to the County of the First Class Highway Projects Fund.
524          Section 8. Section 72-2-121.4 is amended to read:
525          72-2-121.4. 2010 interlocal agreement governing state highway projects in Salt
526     Lake County.
527          (1) Under the direction of the attorney general, the state of Utah and Salt Lake County
528     may enter into an interlocal agreement that includes, at minimum, the provisions specified in
529     this section.
530          (2) The attorney general shall ensure that, in the agreement, Salt Lake County
531     covenants to:
532          (a) issue revenue bonds in an amount generating proceeds of at least $77,000,000,
533     together with additional amounts necessary to pay costs of issuance, pay capitalized interest,
534     and fund any debt service reserve requirements, and secured by revenues received from the
535     state of Utah under Section 72-2-121.3;
536          (b) transfer at least $68,500,000 to the Department of Transportation to be used for
537     state highway projects in Salt Lake County as provided in the interlocal agreement; and
538          (c) use or transfer to a municipality to use $8,500,000 to pay all or part of the costs of
539     the following highway construction projects in Salt Lake County in the following amounts:
540          (i) $2,000,000 to Salt Lake County for 2300 East in Salt Lake County;
541          (ii) $3,500,000 to Salt Lake City for North Temple;
542          (iii) $1,500,000 to Murray City for 4800 South; and
543          (iv) $1,500,000 to Riverton City for 13400 South -- 4000 West to 4570 West.
544          (3) The attorney general shall ensure that, in the agreement, the state of Utah covenants
545     to:
546          (a) use the money transferred by Salt Lake County under Subsection (2)(b) to pay all or
547     part of the costs of the following state highway construction or reconstruction projects within
548     Salt Lake County:
549          (i) 5400 South -- Bangerter Highway to 4000 West;
550          (ii) Bangerter Highway at SR-201;
551          (iii) 12300 South at State Street;
552          (iv) Bangerter Highway at 6200 South;
553          (v) Bangerter Highway at 7000 South;
554          (vi) Bangerter Highway at 3100 South;
555          (vii) 5400 South -- 4000 West to past 4800 West;
556          (viii) 9400 South and Wasatch Boulevard; and
557          (ix) I-215 West Interchange -- 3500 South to 3800 South and ramp work;
558          (b) widen and improve US-89 between 7200 South and 9000 South with available
559     highway funding identified by the commission; and
560          (c) transfer to Salt Lake County or its designee from the 2010 Salt Lake County
561     Revenue Bond Sinking Fund the amount certified by Salt Lake County as necessary to pay:
562          (i) the debt service on the revenue bonds issued by Salt Lake County; and
563          (ii) any additional amounts necessary to pay costs of issuance, pay capitalized interest,
564     and fund any debt service reserve requirements.
565          (4) The costs under Subsections (2)(c) and (3)(a) may include the cost of acquiring
566     land, interests in land, easements and rights-of-way, improving sites, and making all
567     improvements necessary, incidental, or convenient to the facilities and all related engineering,
568     architectural, and legal fees.
569          (5) In preparing the agreement required by this section, the attorney general and Salt
570     Lake County shall:
571          (a) review each existing interlocal agreement with Salt Lake County concerning Salt
572     Lake County revenues received by the state for state highway projects within Salt Lake County;
573     and
574          (b) as necessary, modify those agreements or draft a new interlocal agreement
575     encompassing all of the provisions necessary to reflect the state of Utah's and Salt Lake
576     County's obligations for those revenues and projects.
577          [(6) If project savings are identified by the Department of Transportation from the
578     funds provided to the Department of Transportation as described in Subsection (2)(b) and if the
579     use of funds is not in violation of any agreement, the Department of Transportation shall
580     provide $1,000,000 of the funds described in Subsection (2)(b) to Draper City to pay for
581     highway improvements to 13490 South.]
582          [(7) If project savings are identified from the funds provided to the Department of
583     Transportation as described in Subsection (2)(b) and if the use of funds is not in violation of
584     any agreement, the Department of Transportation shall provide $3,000,000 of the funds
585     described in Subsection (2)(b) and from funds in the County of the First Class Highway
586     Projects Fund created by Section 72-2-121 to fund the following highway projects:]
587          [(a) $2,000,000 to West Valley City to pay for highway improvements to SR-201
588     Frontage Road at Bangerter Highway and associated roads to ease traffic flow onto Bangerter
589     Highway between SR-201 and Lake Park Boulevard; and]
590          [(b) $1,000,000 to West Valley City for improvements to SR-201 Frontage Road at
591     7200 West.]
592          [(8) If project savings are identified by the Department of Transportation from the
593     funds provided to the Department of Transportation as described in Subsection (2)(b) and if the
594     use of funds is not in violation of any agreement, the Department of Transportation shall
595     provide $1,100,000 of the funds described in Subsection (2)(b) and from funds in the County
596     of the First Class Highway Projects Fund created by Section 72-2-121 to West Jordan City for
597     highway improvements on 4000 West from 7800 South to Old Bingham Highway.]
598          [(9) If project savings are identified by the Department of Transportation from the
599     funds provided to the Department of Transportation as described in Subsection (2)(b) and if the
600     use of funds is not in violation of any agreement, the Department of Transportation shall
601     provide $1,000,000 of the funds described in Subsection (2)(b) and from funds in the County
602     of the First Class Highway Projects Fund created by Section 72-2-121 to Midvale City to fund
603     the following highway projects:]
604          [(a) $500,000 to Midvale City for improvements to Union Park Avenue from I-215 exit
605     south to Creek Road and Wasatch Boulevard; and]
606          [(b) $500,000 to Midvale City for improvements to 7200 South from I-15 to 700
607     West.]
608          [(10) (a) (i) Before providing funds to a municipality or county under Subsections (7),
609     (8), and (9), the Department of Transportation shall obtain from the municipality or county:]
610          [(A) a written certification signed by the county or city mayor or the mayor's designee
611     certifying that the municipality or county will use the funds provided under Subsections (7),
612     (8), and (9) solely for the projects described in Subsections (7), (8), and (9); and]
613          [(B) other documents necessary to protect the state and the bondholders and to ensure
614     that all legal requirements are met.]
615          [(ii) Except as provided in Subsection (10)(b), by January 1 of each year, the
616     municipality or county receiving funds described in Subsections (7), (8), and (9) shall submit to
617     the Department of Transportation a statement of cash flow for the current fiscal year detailing
618     the funds necessary to pay project costs for the projects described in Subsections (7), (8), and
619     (9).]
620          [(iii) Except as provided in Subsection (10)(b), after receiving the statement required
621     under Subsection (10)(a)(ii) and after July 1, the Department of Transportation shall provide
622     funds to the municipality or county necessary to pay project costs for the current fiscal year
623     based upon the statement of cash flow submitted by the municipality or county.]
624          [(iv) Upon the financial close of each project described in Subsections (7), (8), and (9),
625     the municipality or county receiving funds under Subsections (7), (8), and (9) shall submit a
626     statement to the Department of Transportation detailing the expenditure of funds received for
627     each project.]
628          [(b) For calendar year 2012 only:]
629          [(i) the municipality or county shall submit to the Department of Transportation a
630     statement of cash flow as provided in Subsection (10)(a)(ii) as soon as possible; and]
631          [(ii) the Department of Transportation shall provide funds to the municipality or county
632     necessary to pay project costs based upon the statement of cash flow.]
633          [(c) The commission or the state treasurer may make any statement of intent relating to
634     a reimbursement under this Subsection (10) that is necessary or desirable to comply with
635     federal tax law.]
636          Section 9. Section 72-2-124 is amended to read:
637          72-2-124. Transportation Investment Fund of 2005.
638          (1) There is created a capital projects fund entitled the Transportation Investment Fund
639     of 2005.
640          (2) The fund consists of money generated from the following sources:
641          (a) any voluntary contributions received for the maintenance, construction,
642     reconstruction, or renovation of state and federal highways;
643          (b) appropriations made to the fund by the Legislature;
644          (c) registration fees designated under Section 41-1a-1201;
645          (d) the sales and use tax revenues deposited into the fund in accordance with Section
646     59-12-103; and
647          (e) revenues transferred to the fund in accordance with Section 72-2-106.
648          (3) (a) The fund shall earn interest.
649          (b) All interest earned on fund money shall be deposited into the fund.
650          (4) (a) Except as provided in Subsection (4)(b), the executive director may only use
651     fund money to pay:
652          (i) the costs of maintenance, construction, reconstruction, or renovation to state and
653     federal highways prioritized by the Transportation Commission through the prioritization
654     process for new transportation capacity projects adopted under Section 72-1-304;
655          (ii) the costs of maintenance, construction, reconstruction, or renovation to the highway
656     projects described in Subsections 63B-18-401(2), (3), and (4);
657          (iii) principal, interest, and issuance costs of bonds authorized by Section 63B-18-401
658     minus the costs paid from the County of the First Class Highway Projects Fund in accordance
659     with Subsection [72-2-121(4)(f)] 72-2-121(4)(e);
660          (iv) for a fiscal year beginning on or after July 1, 2013, to transfer to the 2010 Salt
661     Lake County Revenue Bond Sinking Fund created by Section 72-2-121.3 the amount certified
662     by Salt Lake County in accordance with Subsection 72-2-121.3(4)(c) as necessary to pay the
663     debt service on $30,000,000 of the revenue bonds issued by Salt Lake County;
664          (v) principal, interest, and issuance costs of bonds authorized by Section 63B-16-101
665     for projects prioritized in accordance with Section 72-2-125;
666          (vi) all highway general obligation bonds that are intended to be paid from revenues in
667     the Centennial Highway Fund created by Section 72-2-118;
668          (vii) for fiscal year 2015-16 only, to transfer $25,000,000 to the County of the First
669     Class Highway Projects Fund created in Section 72-2-121 to be used for the purposes described
670     in Section 72-2-121; and
671          (viii) if a political subdivision provides a contribution equal to or greater than 40% of
672     the costs needed for construction, reconstruction, or renovation of paved pedestrian or paved
673     nonmotorized transportation for projects that:
674          (A) mitigate traffic congestion on the state highway system;
675          (B) are part of an active transportation plan approved by the department; and
676          (C) are prioritized by the commission through the prioritization process for new
677     transportation capacity projects adopted under Section 72-1-304.
678          (b) The executive director may use fund money to exchange for an equal or greater
679     amount of federal transportation funds to be used as provided in Subsection (4)(a).
680          (5) (a) Except as provided in Subsection (5)(b), the executive director may not use fund
681     money, including fund money from the Transit Transportation Investment Fund, within the
682     boundaries of a municipality that is required to adopt a moderate income housing plan element
683     as part of the municipality's general plan as described in Subsection 10-9a-401(3), if the
684     municipality has failed to adopt a moderate income housing plan element as part of the
685     municipality's general plan or has failed to implement the requirements of the moderate income
686     housing plan as determined by the results of the Department of Workforce Service's review of
687     the annual moderate income housing report described in Subsection 35A-8-803(1)(a)(vii).
688          (b) Within the boundaries of a municipality that is required under Subsection
689     10-9a-401(3) to plan for moderate income housing growth but has failed to adopt a moderate
690     income housing plan element as part of the municipality's general plan or has failed to
691     implement the requirements of the moderate income housing plan as determined by the results
692     of the Department of Workforce Service's review of the annual moderate income housing
693     report described in Subsection 35A-8-803(1)(a)(vii), the executive director:
694          (i) may use fund money in accordance with Subsection (4)(a) for a limited-access
695     facility;
696          (ii) may not use fund money for the construction, reconstruction, or renovation of an
697     interchange on a limited-access facility;
698          (iii) may use Transit Transportation Investment Fund money for a multi-community
699     fixed guideway public transportation project; and
700          (iv) may not use Transit Transportation Investment Fund money for the construction,
701     reconstruction, or renovation of a station that is part of a fixed guideway public transportation
702     project.
703          (6) (a) Except as provided in Subsection (6)(b), the executive director may not use fund
704     money, including fund money from the Transit Transportation Investment Fund, within the
705     boundaries of the unincorporated area of a county, if the county is required to adopt a moderate
706     income housing plan element as part of the county's general plan as described in Subsection
707     17-27a-401(3) and if the county has failed to adopt a moderate income housing plan element as
708     part of the county's general plan or has failed to implement the requirements of the moderate
709     income housing plan as determined by the results of the Department of Workforce Service's
710     review of the annual moderate income housing report described in Subsection
711     35A-8-803(1)(a)(vii).
712          (b) Within the boundaries of the unincorporated area of a county where the county is
713     required under Subsection 17-27a-401(3) to plan for moderate income housing growth but has
714     failed to adopt a moderate income housing plan element as part of the county's general plan or
715     has failed to implement the requirements of the moderate income housing plan as determined
716     by the results of the Department of Workforce Service's review of the annual moderate income
717     housing report described in Subsection 35A-8-803(1)(a)(vii), the executive director:
718          (i) may use fund money in accordance with Subsection (4)(a) for a limited-access
719     facility;
720          (ii) may not use fund money for the construction, reconstruction, or renovation of an
721     interchange on a limited-access facility;
722          (iii) may use Transit Transportation Investment Fund money for a multi-community
723     fixed guideway public transportation project; and
724          (iv) may not use Transit Transportation Investment Fund money for the construction,
725     reconstruction, or renovation of a station that is part of a fixed guideway public transportation
726     project.
727          (7) (a) Before bonds authorized by Section 63B-18-401 or 63B-27-101 may be issued
728     in any fiscal year, the department and the commission shall appear before the Executive
729     Appropriations Committee of the Legislature and present the amount of bond proceeds that the
730     department needs to provide funding for the projects identified in Subsections 63B-18-401(2),
731     (3), and (4) or Subsection 63B-27-101(2) for the current or next fiscal year.
732          (b) The Executive Appropriations Committee of the Legislature shall review and
733     comment on the amount of bond proceeds needed to fund the projects.
734          (8) The Division of Finance shall, from money deposited into the fund, transfer the
735     amount of funds necessary to pay principal, interest, and issuance costs of bonds authorized by
736     Section 63B-18-401 or 63B-27-101 in the current fiscal year to the appropriate debt service or
737     sinking fund.
738          (9) (a) There is created in the Transportation Investment Fund of 2005 the Transit
739     Transportation Investment Fund.
740          (b) The fund shall be funded by:
741          (i) contributions deposited into the fund in accordance with Section 59-12-103;
742          (ii) appropriations into the account by the Legislature;
743          (iii) private contributions; and
744          (iv) donations or grants from public or private entities.
745          (c) (i) The fund shall earn interest.
746          (ii) All interest earned on fund money shall be deposited into the fund.
747          (d) Subject to Subsection (9)(e), the Legislature may appropriate money from the fund
748     for public transit capital development of new capacity projects to be used as prioritized by the
749     commission.
750          (e) (i) The Legislature may only appropriate money from the fund for a public transit
751     capital development project or pedestrian or nonmotorized transportation project that provides
752     connection to the public transit system if the public transit district or political subdivision
753     provides funds of equal to or greater than 40% of the costs needed for the project.
754          (ii) A public transit district or political subdivision may use money derived from a loan
755     granted pursuant to Title 72, Chapter 2, Part 2, State Infrastructure Bank Fund, to provide all or
756     part of the 40% requirement described in Subsection (9)(e)(i) if:
757          (A) the loan is approved by the commission as required in Title 72, Chapter 2, Part 2,
758     State Infrastructure Bank Fund; and
759          (B) the proposed capital project has been prioritized by the commission pursuant to
760     Section 72-1-303.
761          Section 10. Section 72-2-201 is amended to read:
762          72-2-201. Definitions.
763          As used in this part:
764          (1) "Fund" means the State Infrastructure Bank Fund created under Section 72-2-202.
765          (2) "Infrastructure assistance" means any use of fund money, except an infrastructure
766     loan, to provide financial assistance for transportation projects, including:
767          (a) capital reserves and other security for bond or debt instrument financing; or
768          (b) any letters of credit, lines of credit, bond insurance, or loan guarantees obtained by
769     a public entity to finance transportation projects.
770          (3) "Infrastructure loan" means a loan of fund money to finance a transportation
771     project.
772          (4) "Public entity" means a state agency, county, municipality, local district, special
773     service district, an intergovernmental entity organized under state law, or the military
774     installation development authority created in Section 63H-1-201.
775          (5) "Transportation project":
776          (a) means a project:
777          (i) to improve a state or local highway;
778          (ii) to improve a public transportation facility or nonmotorized transportation facility;
779          (iii) to construct or improve parking facilities [that support an intermodal regional
780     transportation purpose]; or
781          (iv) that is subject to a transportation reinvestment zone agreement pursuant to Section
782     11-13-227 if the state is party to the agreement;
783          (b) includes the costs of acquisition, construction, reconstruction, rehabilitation,
784     equipping, and fixturing; and
785          (c) may only include a project if the project is part of:
786          (i) the statewide long range plan;
787          (ii) a regional transportation plan of the area metropolitan planning organization if a
788     metropolitan planning organization exists for the area; or
789          (iii) a local government general plan or economic development initiative.
790          Section 11. Section 72-2-203 is amended to read:
791          72-2-203. Loans and assistance -- Authority -- Rulemaking.
792          (1) Money in the fund may be used by the department, as prioritized by the commission
793     or as directed by the Legislature, to make infrastructure loans or to provide infrastructure
794     assistance to any public entity for any purpose consistent with any applicable constitutional
795     limitation.
796          (2) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
797     commission shall make rules providing procedures and standards for making infrastructure
798     loans and providing infrastructure assistance and a process for prioritization of requests for
799     loans and assistance.
800          (3) The prioritization process, procedures, and standards for making an infrastructure
801     loan or providing infrastructure assistance may include consideration of the following:
802          (a) availability of money in the fund;
803          (b) credit worthiness of the project;
804          (c) demonstration that the project will encourage, enhance, or create economic benefits
805     to the state or political subdivision;
806          (d) likelihood that assistance would enable the project to proceed at an earlier date than
807     would otherwise be possible;
808          (e) the extent to which assistance would foster innovative public-private partnerships
809     and attract private debt or equity investment;
810          (f) demonstration that the project provides a benefit to the state highway system,
811     including safety or mobility improvements;
812          (g) the amount of proposed assistance as a percentage of the overall project costs with
813     emphasis on local and private participation;
814          (h) demonstration that the project provides intermodal connectivity with public
815     transportation, pedestrian, or nonmotorized transportation facilities; and
816          (i) other provisions the commission considers appropriate.
817          Section 12. Section 72-2-204 is amended to read:
818          72-2-204. Loan program procedures -- Repayment.
819          (1) A public entity may obtain an infrastructure loan from the department, upon
820     approval by the commission, by entering into a loan contract with the department secured by
821     legally issued bonds, notes, or other evidence of indebtedness validly issued under state law,
822     including pledging all or any portion of a revenue source controlled by the public entity to the
823     repayment of the loan.
824          (2) A loan or assistance from the fund shall bear interest at [or] a rate not to exceed
825     .5% above bond market interest rates available to the state.
826          (3) A loan shall be repaid no later than [10] 15 years from the date the department
827     issues the loan to the borrower, with repayment commencing no later than:
828          (a) when the project is completed; or
829          (b) in the case of a highway project, when the facility has opened to traffic.
830          (4) The public entity shall repay the infrastructure loan in accordance with the loan
831     contract from any of the following sources:
832          (a) transportation project revenues, including special assessment revenues;
833          (b) general funds of the public entity;
834          (c) money withheld under Subsection (7); or
835          (d) any other legally available revenues.
836          (5) An infrastructure loan contract with a public entity may provide that a portion of
837     the proceeds of the loan may be applied to fund a reserve fund to secure the repayment of the
838     loan.
839          (6) Before obtaining an infrastructure loan, a county or municipality shall:
840          (a) publish its intention to obtain an infrastructure loan at least once in accordance with
841     the publication of notice requirements under Section 11-14-316; and
842          (b) adopt an ordinance or resolution authorizing the infrastructure loan.
843          (7) (a) If a public entity fails to comply with the terms of its infrastructure loan
844     contract, the department may seek any legal or equitable remedy to obtain compliance or
845     payment of damages.
846          (b) If a public entity fails to make infrastructure loan payments when due, the state
847     shall, at the request of the department, withhold an amount of money due to the public entity
848     and deposit the withheld money in the fund to pay the amounts due under the contract.
849          (c) The department may elect when to request the withholding of money under this
850     Subsection (7).
851          (8) All loan contracts, bonds, notes, or other evidence of indebtedness securing the
852     loan contracts shall be held, collected, and accounted for in accordance with Section
853     63B-1b-202.