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7 LONG TITLE
8 General Description:
9 This bill modifies provisions related to general obligation bonds.
10 Highlighted Provisions:
11 This bill:
12 ▸ removes bonding authorization for some sections of double tracking for the
13 FrontRunner commuter rail and related provisions; and
14 ▸ makes technical changes.
15 Money Appropriated in this Bill:
16 None
17 Other Special Clauses:
18 None
19 Utah Code Sections Affected:
20 AMENDS:
21 63B-31-101, as last amended by Laws of Utah 2021, First Special Session, Chapter 8
22 72-2-131, as last amended by Laws of Utah 2021, Chapter 387
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24 Be it enacted by the Legislature of the state of Utah:
25 Section 1. Section 63B-31-101 is amended to read:
26 63B-31-101. General obligation bonds -- Maximum amount -- Use of proceeds for
27 projects.
28 (1) (a) Subject to the restriction in Subsection (1)(c), the total amount of bonds issued
29 under this section may not exceed $264,000,000 for acquisition and construction proceeds, plus
30 additional amounts as provided in Subsection (1)(b).
31 (b) When the Department of Transportation certifies to the commission the amount of
32 bond proceeds needed to provide funding for the projects described in this section, the
33 commission may issue and sell general obligation bonds in an amount equal to the certified
34 amount, plus additional amounts necessary to pay costs of issuance, to pay capitalized interest,
35 and to fund any existing debt service reserve requirements, not to exceed 1% of the certified
36 amount.
37 (c) The commission may not issue general obligation bonds authorized under this
38 section if the issuance of the general obligation bonds would result in the total current
39 outstanding general obligation debt of the state exceeding 50% of the limitation described in
40 the Utah Constitution, Article XIV, Section 1.
41 (2) Proceeds from the bonds issued under this section shall be provided to the
42 Department of Transportation to pay for, or to provide funds in accordance with this section to
43 pay for, the costs of right-of-way acquisition, construction, reconstruction, renovations, or
44 improvements with respect to projects described in this section.
45 (3) It is the intent of the Legislature that as transportation projects are prioritized under
46 Section 72-2-124, the Transportation Commission give consideration to projects beyond the
47 normal programming horizon.
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57 section shall be provided to the Department of Transportation to pass through to Brigham City
58 to be used for a Forest Street rail bridge project in Brigham City.
59 (b) Payments shall be made from the Rail Transportation Restricted Account created in
60 Section 72-2-131, from the amount designated under Subsection 72-2-131(4)(c), in the amount
61 per year of the principal and interest payments due under the bonds issued under Subsection
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64 shall be provided to the Department of Transportation to pass through to the city of North Salt
65 Lake for an environmental study for a grade separation at 1100 North in North Salt Lake.
66 (b) Payments shall be made from the Rail Transportation Restricted Account created in
67 Section 72-2-131, from the amount designated under Subsection 72-2-131(4)(b), in the amount
68 per year of the principal and interest payments due under the bonds issued under Subsection
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71 make transportation infrastructure improvements, the costs of acquiring land, interests in land,
72 and easements and rights-of-way, the costs of improving sites and making all improvements
73 necessary, incidental, or convenient to the facilities, and the costs of interest estimated to
74 accrue on these bonds during the period to be covered by construction of the projects plus a
75 period of six months after the end of the construction period, interest estimated to accrue on
76 any bond anticipation notes issued under the authority of this title, and all related engineering,
77 architectural, and legal fees.
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79 relating to a reimbursement that is necessary or desirable to comply with federal tax law.
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83 Section 2. Section 72-2-131 is amended to read:
84 72-2-131. Rail Transportation Restricted Account -- Grants for railroad crossing
85 safety.
86 (1) As used in this section, "eligible entity" means:
87 (a) a public entity; or
88 (b) a private entity that is exempt from federal income taxation under Section
89 501(c)(3), Internal Revenue Code.
90 (2) There is created in the Transit Transportation Investment Fund, created in Section
91 72-2-124, the Rail Transportation Restricted Account.
92 (3) The account shall be funded by:
93 (a) appropriations to the account by the Legislature;
94 (b) private contributions;
95 (c) donations or grants from public or private entities; and
96 (d) interest earned on money in the account.
97 (4) Upon appropriation, the department shall:
98 (a) use an amount equal to 10% of the money deposited into the account to provide
99 grants in accordance with Subsection (5);
100 (b) use an amount equal to 10% of the money deposited into the account to pay:
101 (i) the costs of performing environmental impact studies in connection with
102 construction, reconstruction, or renovation projects related to railroad crossings on class A,
103 class B, or class C roads; or
104 (ii) the appropriate debt service or sinking fund for the repayment of bonds issued
105 under Subsection [
106 (c) use the remaining money deposited into the account to pay:
107 (i) the costs of construction, reconstruction, or renovation projects related to railroad
108 crossings on class A, class B, or class C roads;
109 (ii) debt service related to a project described in Subsection (4)(b); or
110 (iii) the appropriate debt service or sinking fund for the repayment of bonds issued
111 under Subsection [
112 (5) (a) The department may award grants to one or more eligible entities to be used for
113 the purpose of improving safety at railroad crossings on class A, class B, or class C roads.
114 (b) An eligible entity may use grant money for any expense related to improving safety
115 at railroad crossings on class A, class B, or class C roads, including:
116 (i) signage; and
117 (ii) safety enhancements to a railroad crossing.
118 (c) The department shall prioritize, in the following order, grants to applicants that
119 propose projects impacting railroad crossings that:
120 (i) have demonstrated safety concerns, including emergency services access; and
121 (ii) have high levels of vehicular and pedestrian traffic.