1     
FIRST CLASS COUNTY HIGHWAY ROAD FUNDS

2     
AMENDMENTS

3     
2021 GENERAL SESSION

4     
STATE OF UTAH

5     
Chief Sponsor: James A. Dunnigan

6     
Senate Sponsor: Wayne A. Harper

7     

8     LONG TITLE
9     General Description:
10          This bill allocates funds in the County of the First Class Highway Projects Fund and
11     authorizes the issuance of a general obligation bond for certain transportation projects.
12     Highlighted Provisions:
13          This bill:
14          ▸     allocates revenue from certain local option registration fees;
15          ▸     allocates funds in the County of the First Class Highway Projects Fund to cities as
16     one-time distributions;
17          ▸     allocates funds in the County of the First Class Highway Projects Fund for annual
18     distributions to certain political subdivisions within Salt Lake County for the next
19     15 years, subject to availability of funds;
20          ▸     authorizes the issuance of a general obligation bond for certain transportation
21     improvements and infrastructure loans; and
22          ▸     makes technical changes.
23     Money Appropriated in this Bill:
24          None
25     Other Special Clauses:
26          None
27     Utah Code Sections Affected:
28     AMENDS:
29          41-1a-1222, as last amended by Laws of Utah 2018, Chapter 403
30          63I-1-272, as last amended by Laws of Utah 2020, Chapter 154
31          72-2-121, as last amended by Laws of Utah 2020, Fifth Special Session, Chapter 20
32     ENACTS:
33          63B-31-101, Utah Code Annotated 1953
34          63B-31-102, Utah Code Annotated 1953
35     

36     Be it enacted by the Legislature of the state of Utah:
37          Section 1. Section 41-1a-1222 is amended to read:
38          41-1a-1222. Local option highway construction and transportation corridor
39     preservation fee -- Exemptions -- Deposit -- Transfer -- County ordinance -- Notice.
40          (1) As used in this section:
41          (a) "Metro township" means the same as that term is defined in Section 10-2a-403.
42          (b) "Unincorporated" means the same as that term is defined in Section 10-1-104.
43          [(1)] (2) (a) (i) Except as provided in Subsection [(1)] (2)(a)(ii), a county legislative
44     body may impose a local option highway construction and transportation corridor preservation
45     fee of up to $10 on each motor vehicle registration within the county.
46          (ii) A county legislative body may impose a local option highway construction and
47     transportation corridor preservation fee of up to $7.75 on each motor vehicle registration for a
48     six-month registration period under Section 41-1a-215.5 within the county.
49          (iii) A fee imposed under Subsection [(1)] (2)(a)(i) or (ii) shall be set in whole dollar
50     increments.
51          (b) If imposed under Subsection [(1)] (2)(a), at the time application is made for
52     registration or renewal of registration of a motor vehicle under this chapter, the applicant shall
53     pay the local option highway construction and transportation corridor preservation fee
54     established by the county legislative body.
55          (c) The following are exempt from the fee required under Subsection [(1)] (2)(a):
56          (i) a motor vehicle that is exempt from the registration fee under Section 41-1a-1209 or
57     Subsection 41-1a-419(3);
58          (ii) a commercial vehicle with an apportioned registration under Section 41-1a-301;
59     and
60          (iii) a motor vehicle with a Purple Heart special group license plate issued in
61     accordance with Section 41-1a-421.
62          [(2)] (3) (a) Except as provided in Subsection [(2)] (3)(b), the revenue generated under
63     this section shall be:
64          (i) deposited in the Local Highway and Transportation Corridor Preservation Fund
65     created in Section 72-2-117.5;
66          (ii) credited to the county from which it is generated; and
67          (iii) used and distributed in accordance with Section 72-2-117.5.
68          (b) The revenue generated by a fee imposed under this section in a county of the first
69     class shall be deposited or transferred as follows:
70          (i) [70%] 50% of the revenue shall be:
71          (A) deposited in the County of the First Class Highway Projects Fund created in
72     Section 72-2-121; and
73          (B) used in accordance with Section 72-2-121; [and]
74          (ii) 30% of the revenue shall be deposited, credited, and used as provided in Subsection
75     [(2)(a).] (3)(a); and
76          (iii) 20% of the revenue shall be transferred to the legislative body of a county of the
77     first class.
78          (4) Beginning in a fiscal year beginning on or after July 1, 2023, and for 15 years
79     thereafter, the legislative body of the county of the first class shall annually transfer, from the
80     revenue transferred to the legislative body of a county of the first class as described in
81     Subsection (3)(b)(iii):
82          (a) $300,000 to Kearns township; and
83          (b) $225,000 to Magna township.
84          [(3)] (5) To impose or change the amount of a fee under this section, the county
85     legislative body shall pass an ordinance:
86          (a) approving the fee;
87          (b) setting the amount of the fee; and
88          (c) providing an effective date for the fee as provided in Subsection [(4)] (6).
89          [(4)] (6) (a) If a county legislative body enacts, changes, or repeals a fee under this
90     section, the enactment, change, or repeal shall take effect on July 1 if the commission receives
91     notice meeting the requirements of Subsection [(4)] (6)(b) from the county prior to April 1.
92          (b) The notice described in Subsection [(4)] (6)(a) shall:
93          (i) state that the county will enact, change, or repeal a fee under this part;
94          (ii) include a copy of the ordinance imposing the fee; and
95          (iii) if the county enacts or changes the fee under this section, state the amount of the
96     fee.
97          Section 2. Section 63B-31-101 is enacted to read:
98     
Part 1. 2021 Highway General Obligation Bonds

99          63B-31-101. Transportation bonds -- Maximum amount -- Use for transportation
100     projects and related facilities.
101          (1) (a) Subject to the restriction in Subsection (1)(c), the total amount of bonds issued
102     under this section may not exceed $20,000,000.
103          (b) When the Department of Transportation certifies to the commission the amount of
104     bond proceeds that the commission needs to provide funding for the projects described in
105     Subsection (2), the commission may issue and sell general obligation bonds in an amount equal
106     to the certified amount plus costs of issuance.
107          (c) The commission may not issue general obligation bonds authorized under this
108     section if the issuance for general obligation bonds would result in the total current outstanding
109     general obligation debt of the state exceeding 50% of the limitation described in the Utah
110     Constitution, Article XIV, Section 1.
111          (2) (a) Proceeds from the bonds issued under this section shall be provided to the
112     Department of Transportation to pay for or to provide funds to a municipality or county to pay
113     for the costs of right-of-way acquisition, construction, reconstruction, renovations, or
114     improvements to highways, transportation facilities, or multimodal transportation projects
115     described in Subsection (2)(b).
116          (b) Bond proceeds described under Subsection (2)(a) shall be used to pay for the
117     following local transportation projects, transportation facilities, or multimodal transportation
118     projects:
119          (i) construction and improvements to 14600 South in Bluffdale; and
120          (ii) construction of a parking structure in South Jordan.
121          (c) The costs under this Subsection (2) may include the costs of acquiring land,
122     interests in land, easements and rights-of-way, the costs of improving sites, making all
123     improvements necessary, incidental, or convenient to the facilities, and the costs of interest
124     estimated to accrue on these bonds during the period to be covered by construction of the
125     projects plus a period of six months after the end of the construction period, interest estimated
126     to accrue on any bond anticipation notes issued under the authority of this title, and all related
127     engineering, architectural, and legal fees.
128          (3) (a) Proceeds from bonds authorized by this section shall be allocated, subject to
129     Subsection (4)(a), as follows:
130          (i) up to $12,000,000 to Bluffdale; and
131          (ii) up to $8,000,000 to South Jordan.
132          (b) The executive director of the Department of Transportation may allocate bond
133     proceeds under this section together, or for each project separately, when the executive director
134     is satisfied that the planning, engineering, design, and commitment are present to complete the
135     project.
136          (4) (a) Before the Department of Transportation may provide proceeds to a
137     municipality for a project described in Subsection (2)(b), the municipality shall provide a
138     detailed cost estimate of costs to complete the planning and design of the project.
139          (b) After receiving a cost estimate described in Subsection (4)(a), the Department of
140     Transportation may provide to a municipality proceeds reasonably necessary to complete the
141     planning and design of the project.
142          (c) After completion of the planning and design of a project, the municipality shall
143     provide to the Department of Transportation a detailed estimate of the costs to construct and
144     complete a project described in Subsection (2)(b).
145          (d) If approved by the executive director of the Department of Transportation, the
146     Department of Transportation may provide funds to a municipality to construct and complete a
147     project described in Subsection (2)(b).
148          Section 3. Section 63B-31-102 is enacted to read:
149          63B-31-102. Transportation bonds -- Maximum amount -- Use for State
150     Infrastructure Bank Fund loans.
151          (1) (a) Subject to the restriction in Subsection (1)(c), the total amount of bonds issued
152     under this section may not exceed $30,000,000.
153          (b) When the Department of Transportation certifies to the commission the amount of
154     bond proceeds that the commission needs to provide funding for the purposes described in
155     Subsection (2), the commission may issue and sell general obligation bonds in an amount equal
156     to the certified amount plus costs of issuance.
157          (c) The commission may not issue general obligation bonds authorized under this
158     section if the issuance for general obligation bonds would result in the total current outstanding
159     general obligation debt of the state exceeding 50% of the limitation described in the Utah
160     Constitution, Article XIV, Section 1.
161          (2) (a) Proceeds from the bonds issued under this section shall be provided to the
162     Department of Transportation to transfer to the State Infrastructure Bank Fund created in
163     Section 72-2-202 to be used to issue loans pursuant to Title 72, Chapter 2, Part 2, State
164     Infrastructure Bank Fund.
165          (b) Any distribution from the State Infrastructure Bank Fund shall be contingent upon a
166     commitment from the borrower that revenue is available to repay the loan from the State
167     Infrastructure Bank Fund which shall be paid in whole or in part from revenue distributions
168     described in Subsection 72-2-121(4)(m).
169          (c) Notwithstanding Subsection 72-2-204(2), a loan or assistance made with proceeds
170     from bonds issued under this section shall bear an interest rate not to exceed .5% above the
171     bond market interest rate available to the state for an issuance under this section.
172          Section 4. Section 63I-1-272 is amended to read:
173          63I-1-272. Repeal dates, Title 72.
174          (1) Subsection 72-2-121[(9)](10), which creates transportation advisory committees, is
175     repealed July 1, 2022.
176          (2) Title 72, Chapter 4, Part 3, Utah State Scenic Byway Program, is repealed January
177     2, 2025.
178          Section 5. Section 72-2-121 is amended to read:
179          72-2-121. County of the First Class Highway Projects Fund.
180          (1) There is created a special revenue fund within the Transportation Fund known as
181     the "County of the First Class Highway Projects Fund."
182          (2) The fund consists of money generated from the following revenue sources:
183          (a) any voluntary contributions received for new construction, major renovations, and
184     improvements to highways within a county of the first class;
185          (b) the portion of the sales and use tax described in Subsection 59-12-2214(3)(b)
186     deposited [in] into or transferred to the fund;
187          (c) the portion of the sales and use tax described in Section 59-12-2217 deposited [in]
188     into or transferred to the fund; and
189          (d) a portion of the local option highway construction and transportation corridor
190     preservation fee imposed in a county of the first class under Section 41-1a-1222 deposited [in]
191     into or transferred to the fund.
192          (3) (a) The fund shall earn interest.
193          (b) All interest earned on fund money shall be deposited into the fund.
194          (4) The executive director shall use the fund money only:
195          (a) to pay debt service and bond issuance costs for bonds issued under Sections
196     63B-16-102, 63B-18-402, and 63B-27-102;
197          (b) for right-of-way acquisition, new construction, major renovations, and
198     improvements to highways within a county of the first class and to pay any debt service and
199     bond issuance costs related to those projects, including improvements to a highway located
200     within a municipality in a county of the first class where the municipality is located within the
201     boundaries of more than a single county;
202          (c) for the construction, acquisition, use, maintenance, or operation of:
203          (i) an active transportation facility for nonmotorized vehicles;
204          (ii) multimodal transportation that connects an origin with a destination; or
205          (iii) a facility that may include a:
206          (A) pedestrian or nonmotorized vehicle trail;
207          (B) nonmotorized vehicle storage facility;
208          (C) pedestrian or vehicle bridge; or
209          (D) vehicle parking lot or parking structure;
210          (d) to transfer to the 2010 Salt Lake County Revenue Bond Sinking Fund created by
211     Section 72-2-121.3 the amount required in Subsection 72-2-121.3(4)(c) minus the amounts
212     transferred in accordance with Subsection 72-2-124(4)(a)(iv);
213          (e) for a fiscal year beginning on or after July 1, 2013, to pay debt service and bond
214     issuance costs for $30,000,000 of the bonds issued under Section 63B-18-401 for the projects
215     described in Subsection 63B-18-401(4)(a);
216          (f) for a fiscal year beginning on or after July 1, 2013, and after the department has
217     verified that the amount required under Subsection 72-2-121.3(4)(c) is available in the fund, to
218     transfer an amount equal to 50% of the revenue generated by the local option highway
219     construction and transportation corridor preservation fee imposed under Section 41-1a-1222 in
220     a county of the first class:
221          (i) to the legislative body of a county of the first class; and
222          (ii) to be used by a county of the first class for:
223          (A) highway construction, reconstruction, or maintenance projects; or
224          (B) the enforcement of state motor vehicle and traffic laws;
225          (g) for fiscal year 2015-16 only, and after the department has verified that the amount
226     required under Subsection 72-2-121.3(4)(c) is available in the fund and the transfer under
227     Subsection (4)(e) has been made, to transfer an amount equal to $25,000,000:
228          (i) to the legislative body of a county of the first class; and
229          (ii) to be used by the county for the purposes described in this section;
230          (h) for a fiscal year beginning on or after July 1, 2015, after the department has verified
231     that the amount required under Subsection 72-2-121.3(4)(c) is available in the fund and the
232     transfer under Subsection (4)(e) has been made, to annually transfer an amount [equal to up to
233     42.5%] of the sales and use tax revenue imposed in a county of the first class and deposited
234     into the fund in accordance with Subsection 59-12-2214(3)(b) equal to an amount needed to
235     cover the debt to:
236          (i) the appropriate debt service or sinking fund for the repayment of bonds issued under
237     Section 63B-27-102; [and]
238          (ii) the Transportation Fund created in Section 72-2-102 until $28,079,000 has been
239     deposited into the Transportation Fund; and
240          (iii) the appropriate debt service or sinking fund for the repayment of bonds issued
241     under Sections 63B-31-101 and 63B-31-102;
242          (i) [for a fiscal year beginning on or after July 1, 2018,] after the department has
243     verified that the amount required under Subsection 72-2-121.3(4)(c) is available in the fund
244     and after the transfer under Subsection (4)(d), the payment under Subsection (4)(e), and the
245     transfers under Subsections (4)(h)(i) and (ii) have been made, to annually transfer [20% of the
246     amount deposited into the fund under Subsection (2)(b)] $2,000,000 to a public transit district
247     in a county of the first class to fund a system for public transit;
248          (j) for a fiscal year beginning on or after July 1, 2018, after the department has verified
249     that the amount required under Subsection 72-2-121.3(4)(c) is available in the fund and after
250     the transfer under Subsection (4)(d), the payment under Subsection (4)(e), and the transfers
251     under Subsections (4)(h)(i) and (ii) have been made, to annually transfer 20% of the amount
252     deposited into the fund under Subsection (2)(b):
253          (i) to the legislative body of a county of the first class; and
254          (ii) to fund parking facilities in a county of the first class that facilitate significant
255     economic development and recreation and tourism within the state;
256          (k) for the 2018-19 fiscal year only, after the department has verified that the amount
257     required under Subsection 72-2-121.3(4)(c) is available in the fund and after the transfer under
258     Subsection (4)(d), the payment under Subsection (4)(e), and the transfers under Subsections
259     (4)(h), (i), and (j) have been made, to transfer $12,000,000 to the department to distribute for
260     the following projects:
261          (i) $2,000,000 to West Valley City for highway improvement to 4100 South;
262          (ii) $1,000,000 to Herriman for highway improvements to Herriman Boulevard from
263     6800 West to 7300 West;
264          (iii) $1,100,000 to South Jordan for highway improvements to Grandville Avenue;
265          (iv) $1,800,000 to Riverton for highway improvements to Old Liberty Way from 13400
266     South to 13200 South;
267          (v) $1,000,000 to Murray City for highway improvements to 5600 South from State
268     Street to Van Winkle;
269          (vi) $1,000,000 to Draper for highway improvements to Lone Peak Parkway from
270     11400 South to 12300 South;
271          (vii) $1,000,000 to Sandy City for right-of-way acquisition for Monroe Street;
272          (viii) $900,000 to South Jordan City for right-of-way acquisition and improvements to
273     10200 South from 2700 West to 3200 West;
274          (ix) $1,000,000 to West Jordan for highway improvements to 8600 South near
275     Mountain View Corridor;
276          (x) $700,000 to South Jordan right-of-way improvements to 10550 South; and
277          (xi) $500,000 to Salt Lake County for highway improvements to 2650 South from
278     7200 West to 8000 West; [and]
279          [(l) for a fiscal year beginning after the amount described in Subsection (4)(h) has been
280     repaid to the Transportation Fund until fiscal year 2030, or sooner if the amount described in
281     Subsection (4)(h)(ii) has been repaid, after the department has verified that the amount required
282     under Subsection 72-2-121.3(4)(c) is available in the fund and the transfer under Subsection
283     (4)(e) has been made, and after the bonds under Section 63B-27-102 have been repaid, to
284     annually transfer an amount equal to up to 42.5% of the sales and use tax revenue imposed in a
285     county of the first class and deposited into the fund in accordance with Subsection
286     59-12-2214(3)(b):]
287          [(i) to the legislative body of a county of the first class; and]
288          [(ii) to be used by the county for the purposes described in this section.]
289          (l) subject to Subsection (5), for the 2020-2021 fiscal year only, after the department
290     has verified that the amount required under Subsection 72-2-121.3(4)(c) is available in the fund
291     and after the transfer under Subsection (4)(d), the payment under Subsection (4)(e), and the
292     transfers under Subsections (4)(h), (i), and (j) have been made, to transfer the following
293     amounts to the following cities:
294          (i) $2,600,000 to South Salt Lake City;
295          (ii) $1,100,000 to Salt Lake City;
296          (iii) $1,100,000 to West Valley City;
297          (iv) $1,000,000 to Millcreek;
298          (v) $700,000 to Sandy;
299          (vi) $700,000 to West Jordan;
300          (vii) $500,000 to Murray;
301          (viii) $500,000 to South Jordan; and
302          (ix) $500,000 to Taylorsville; and
303          (m) subject to Subsection (5), for a fiscal year beginning on or after July 1, 2021, and
304     for 15 years thereafter, to annually transfer the following amounts to the following cities, metro
305     townships, and the county of the first class for priority projects to mitigate congestion and
306     improve transportation safety:
307          (i) $1,100,000 to Salt Lake City;
308          (ii) $1,100,000 to Sandy;
309          (iii) $1,100,000 to Taylorsville;
310          (iv) $1,100,000 to West Jordan;
311          (v) $1,100,000 to West Valley City;
312          (vi) $800,000 to Herriman;
313          (vii) $700,000 to Draper;
314          (viii) $700,000 to Riverton;
315          (ix) $700,000 to South Jordan;
316          (x) $500,000 to Midvale;
317          (xi) $500,000 to Millcreek;
318          (xii) $500,000 to Murray;
319          (xiii) $400,000 to Cottonwood Heights; and
320          (xiv) $300,000 to Holladay.
321          (5) (a) If revenue in the fund is insufficient to satisfy all of the transfers described in
322     Subsection (4)(m), the executive director shall proportionately reduce the amounts transferred
323     as described in Subsection (4)(m).
324          (b) A local government entity, as that term is defined in Section 63J-1-220, is exempt
325     from entering into an agreement as described in Section 63J-1-220 pertaining to the receipt or
326     expenditure of any funding described in Subsection (4)(l) or (m).
327          (c) A local government may not use revenue described in Subsections (4)(l) and (m) to
328     supplant existing class B or class C road funds that a local government has budgeted for
329     transportation projects.
330          (d) (i) A municipality or county that received a transfer of funds described in
331     Subsection (4)(k) shall submit to the department a statement of cash flow and progress
332     pertaining to the municipality's or county's respective project described in Subsection (4)(k).
333          (ii) After the department is satisfied that the municipality or county described in
334     Subsection (4)(k) has made substantial progress and the expenditure of funds is programmed
335     and imminent, the department may transfer to the same municipality or county the respective
336     amounts described in Subsections (4)(l) and (m).
337          [(5)] (6) The revenues described in Subsections (2)(b), (c), and (d) that are deposited
338     [in] into the fund and bond proceeds from bonds issued under Sections 63B-16-102,
339     63B-18-402, and 63B-27-102 are considered a local matching contribution for the purposes
340     described under Section 72-2-123.
341          [(6)] (7) The additional administrative costs of the department to administer this fund
342     shall be paid from money in the fund.
343          [(7)] (8) Notwithstanding any statutory or other restrictions on the use or expenditure
344     of the revenue sources deposited into this fund, the Department of Transportation may use the
345     money in this fund for any of the purposes detailed in Subsection (4).
346          [(8)] (9) (a) For a fiscal year beginning on or after July 1, 2018, at the end of each
347     fiscal year, after all programmed payments and transfers authorized or required under this
348     section have been made, on November 30 the department shall transfer the remainder of the
349     money in the fund to the Transportation Fund to reduce the amount owed to the Transportation
350     Fund under Subsection [(4)(j)(ii)] (4)(h)(ii).
351          (b) The department shall provide notice to a county of the first class of the amount
352     transferred in accordance with this Subsection [(8)] (9).
353          [(9)] (10) (a) Any revenue in the fund that is not specifically allocated and obligated
354     under Subsections (4) through (8) is subject to the review process described in this Subsection
355     [(9)] (10).
356          (b) A county of the first class shall create a county transportation advisory committee
357     as described in Subsection [(9)] (10)(c) to review proposed transportation and, as applicable,
358     public transit projects and rank projects for allocation of funds.
359          (c) The county transportation advisory committee described in Subsection [(9)] (10)(b)
360     shall be composed of the following 13 members:
361          (i) six members who are residents of the county, nominated by the county executive
362     and confirmed by the county legislative body who are:
363          (A) members of a local advisory council of a large public transit district as defined in
364     Section 17B-2a-802;
365          (B) county council members; or
366          (C) other residents with expertise in transportation planning and funding; and
367          (ii) seven members nominated by the county executive, and confirmed by the county
368     legislative body, chosen from mayors or managers of cities or towns within the county.
369          (d) (i) A majority of the members of the county transportation advisory committee
370     constitutes a quorum.
371          (ii) The action by a quorum of the county transportation advisory committee constitutes
372     an action by the county transportation advisory committee.
373          (e) The county body shall determine:
374          (i) the length of a term of a member of the county transportation advisory committee;
375          (ii) procedures and requirements for removing a member of the county transportation
376     advisory committee;
377          (iii) voting requirements of the county transportation advisory committee;
378          (iv) chairs or other officers of the county transportation advisory committee;
379          (v) how meetings are to be called and the frequency of meetings, but not less than once
380     annually; and
381          (vi) the compensation, if any, of members of the county transportation advisory
382     committee.
383          (f) The county shall establish by ordinance criteria for prioritization and ranking of
384     projects, which may include consideration of regional and countywide economic development
385     impacts, including improved local access to:
386          (i) employment;
387          (ii) recreation;
388          (iii) commerce; and
389          (iv) residential areas.
390          (g) The county transportation advisory committee shall evaluate and rank each
391     proposed public transit project and regionally significant transportation facility according to
392     criteria developed pursuant to Subsection [(9)] (10)(f).
393          (h) (i) After the review and ranking of each project as described in this section, the
394     county transportation advisory committee shall provide a report and recommend the ranked list
395     of projects to the county legislative body and county executive.
396          (ii) After review of the recommended list of projects, as part of the county budgetary
397     process, the county executive shall review the list of projects and may include in the proposed
398     budget the proposed projects for allocation, as funds are available.
399          (i) The county executive of the county of the first class, with information provided by
400     the county and relevant state entities, shall provide a report annually to the county
401     transportation advisory committee, and to the mayor or manager of each city, town, or metro
402     township in the county, including the following:
403          (i) the amount of revenue received into the fund during the past year;
404          (ii) any funds available for allocation;
405          (iii) funds obligated for debt service; and
406          (iv) the outstanding balance of transportation-related debt.
407          [(10)] (11) As resources allow, the department shall study in 2020 transportation
408     connectivity in the southwest valley of Salt Lake County, including the feasibility of
409     connecting major east-west corridors to U-111.