1     
BOND AUTHORIZATION AMENDMENTS

2     
2021 FIRST SPECIAL SESSION

3     
STATE OF UTAH

4     
Chief Sponsor: Mike Schultz

5     
Senate Sponsor: Kirk A. Cullimore

6     

7     LONG TITLE
8     General Description:
9          This bill modifies provisions related to funding for certain transit projects.
10     Highlighted Provisions:
11          This bill:
12          ▸     changes the funding source for the following transit projects:
13               •     double tracking strategic sections of the FrontRunner commuter rail system;
14               •     construction and improvements to the S-line streetcar facilities in Salt Lake
15     City;
16               •     bus rapid transit in the Salt Lake midvalley area;
17               •     an environmental study at the point of the mountain area; and
18               •     a Utah Transit Authority and Sharp-Tintic railroad consolidation project; and
19          ▸     makes technical changes.
20     Money Appropriated in this Bill:
21          None
22     Other Special Clauses:
23          This bill provides a special effective date.
24     Utah Code Sections Affected:
25     AMENDS:
26          63B-31-101, as enacted by Laws of Utah 2021, Chapter 387
27     Uncodified Material Affected:

28     ENACTS UNCODIFIED MATERIAL
29     

30     Be it enacted by the Legislature of the state of Utah:
31          Section 1. Section 63B-31-101 is amended to read:
32          63B-31-101. General obligation bonds -- Maximum amount -- Use of proceeds for
33     projects.
34          (1) (a) Subject to the restriction in Subsection (1)(c), the total amount of bonds issued
35     under this section may not exceed $264,000,000 for acquisition and construction proceeds, plus
36     additional amounts as provided in Subsection (1)(b).
37          (b) When the Department of Transportation certifies to the commission the amount of
38     bond proceeds needed to provide funding for the projects described in this section, the
39     commission may issue and sell general obligation bonds in an amount equal to the certified
40     amount, plus additional amounts necessary to pay costs of issuance, to pay capitalized interest,
41     and to fund any existing debt service reserve requirements, not to exceed 1% of the certified
42     amount.
43          (c) The commission may not issue general obligation bonds authorized under this
44     section if the issuance of the general obligation bonds would result in the total current
45     outstanding general obligation debt of the state exceeding 50% of the limitation described in
46     the Utah Constitution, Article XIV, Section 1.
47          (2) Proceeds from the bonds issued under this section shall be provided to the
48     Department of Transportation to pay for, or to provide funds in accordance with this section to
49     pay for, the costs of right-of-way acquisition, construction, reconstruction, renovations, or
50     improvements with respect to projects described in this section.
51          (3) It is the intent of the Legislature that as transportation projects are prioritized under
52     Section 72-2-124, the Transportation Commission give consideration to projects beyond the
53     normal programming horizon.
54          (4) (a) Two hundred thirty-two million dollars of the proceeds of bonds issued under
55     this section shall be used to [pay for the following transit projects] double track strategic
56     sections of the FrontRunner commuter rail system, to be repaid from the Transit Transportation
57     Investment Fund under Subsection 72-2-124(9)[:].
58          [(i) subject to Subsection (4)(b), $200,000,000 to double track strategic sections of the

59     FrontRunner commuter rail system;]
60          [(ii) $12,000,000 to pay for construction and improvements to the S-line streetcar
61     facilities in Salt Lake City;]
62          [(iii) $11,000,000 for bus rapid transit in the Salt Lake midvalley area;]
63          [(iv) $5,000,000 for an environmental study at the point of the mountain area; and]
64          [(v) $4,000,000 for a Utah Transit Authority and Sharp-Tintic railroad consolidation
65     project.]
66          (b) The issuance of the [$200,000,000 of] bonds for the purpose described in
67     Subsection (4)(a)[(i)] is contingent upon the establishment of an agreement between the
68     Department of Transportation and the Utah Transit Authority whereby the Utah Transit
69     Authority agrees to pay $5,000,000 per year for 15 years toward repayment of the bonds.
70          (5) (a) Twenty-nine million dollars of the proceeds of bonds issued under this section
71     shall be provided to the Department of Transportation to pass through to Brigham City to be
72     used for a Forest Street rail bridge project in Brigham City.
73          (b) Payments shall be made from the Rail Transportation Restricted Account created in
74     Section 72-2-131, from the amount designated under Subsection 72-2-131(4)(c), in the amount
75     per year of the principal and interest payments due under the bonds issued under Subsection
76     (5)(a) until those bonds have been repaid in full.
77          (6) (a) Three million dollars of the proceeds of bonds issued under this section shall be
78     provided to the Department of Transportation to pass through to the city of North Salt Lake for
79     an environmental study for a grade separation at 1100 North in North Salt Lake.
80          (b) Payments shall be made from the Rail Transportation Restricted Account created in
81     Section 72-2-131, from the amount designated under Subsection 72-2-131(4)(b), in the amount
82     per year of the principal and interest payments due under the bonds issued under Subsection
83     (6)(a) until those bonds have been repaid in full.
84          (7) The costs under Subsection (2) may include the costs of studies necessary to make
85     transportation infrastructure improvements, the costs of acquiring land, interests in land, and
86     easements and rights-of-way, the costs of improving sites and making all improvements
87     necessary, incidental, or convenient to the facilities, and the costs of interest estimated to
88     accrue on these bonds during the period to be covered by construction of the projects plus a
89     period of six months after the end of the construction period, interest estimated to accrue on

90     any bond anticipation notes issued under the authority of this title, and all related engineering,
91     architectural, and legal fees.
92          (8) The commission or the state treasurer may make any statement of intent relating to
93     a reimbursement that is necessary or desirable to comply with federal tax law.
94          (9) The Department of Transportation may enter into agreements related to the projects
95     described in Subsection (4) before the receipt of proceeds of bonds issued under this section.
96          Section 2. Intent language.
97          Notwithstanding intent language in H.B. 433, 2021 General Session, Item 2, the
98     Legislature intends that the Department of Transportation use money appropriated in that item
99     as follows: $68,000,000 to double track strategic sections of the FrontRunner commuter rail
100     system; $12,000,000 for construction and improvements to the S-line streetcar facilities in Salt
101     Lake City; $11,000,000 for bus rapid transit in the Salt Lake midvalley area; $5,000,000 for an
102     environmental study at the point of the mountain area; $4,000,000 for a Utah Transit Authority
103     and Sharp-Tintic railroad consolidation project; and $1,600,000 for a rail station in the city of
104     Vineyard.
105          Section 3. Effective date.
106          If approved by two-thirds of all the members elected to each house, this bill takes effect
107     upon approval by the governor, or the day following the constitutional time limit of Utah
108     Constitution, Article VII, Section 8, without the governor's signature, or in the case of a veto,
109     the date of veto override.