72-2-117.5 - Definitions -- Local Transportation Corridor Preservation Fund -- Disposition of fund monies.
72-2-117.5. Definitions -- Local Transportation Corridor Preservation Fund --Disposition of fund monies.
(1) As used in this section:
(a) "Council of governments" means a decision-making body in each county composedof the county governing body and the mayors of each municipality in the county.
(b) "Metropolitan planning organization" has the same meaning as defined in Section72-1-208.5.
(2) There is created the Local Transportation Corridor Preservation Fund within theTransportation Fund.
(3) The fund shall be funded from the following sources:
(a) a local option highway construction and transportation corridor preservation feeimposed under Section 41-1a-1222;
(b) appropriations made to the fund by the Legislature;
(c) contributions from other public and private sources for deposit into the fund;
(d) all monies collected from rents and sales of real property acquired with fund monies;
(e) proceeds from general obligation bonds, revenue bonds, or other obligations issued asauthorized by Title 63B, Bonds;
(f) the portion of the sales and use tax described in Subsection 59-12-2217(2)(b) andrequired by Subsection 59-12-2217(8)(a) to be deposited into the fund; and
(g) sales and use tax revenues deposited into the fund in accordance with Section59-12-2218.
(4) (a) The fund shall earn interest.
(b) All interest earned on fund monies shall be deposited into the fund.
(c) All monies appropriated to the Local Transportation Corridor Preservation Fund arenonlapsing.
(d) The State Tax Commission shall provide the department with sufficient data for thedepartment to allocate the revenues:
(i) provided under Subsection (3)(a) to each county imposing a local option highwayconstruction and transportation corridor preservation fee under Section 41-1a-1222;
(ii) provided under Subsection 59-12-2217(2)(b) to each county imposing a countyoption sales and use tax for transportation; and
(iii) provided under Subsection (3)(g) to each county of the second class or city or townwithin a county of the second class that imposes the sales and use tax authorized by Section59-12-2218.
(e) (i) The department shall annually allocate the interest earned on fund monies to eachcounty based on the proportionate amount of interest earned on each county's allocation of fundsunder Subsection (4)(d) on an average monthly balance basis.
(ii) The initial annual allocation of fund interest shall include all interest earned on fundmonies since the creation of the fund.
(f) The monies allocated under Subsection (4)(d):
(i) shall be used for the purposes provided in this section for each county, city, or town;and
(ii) are allocated to each county, city or town as provided in this section:
(A) with the condition that the state will not be charged for any asset purchased with themonies allocated under Subsections (4)(d) and (e); and
(B) are considered a local matching contribution for the purposes described underSection 72-2-123 if used on a state highway.
(g) Administrative costs of the department to implement this section shall be paid fromthe fund.
(5) (a) The department shall authorize the expenditure of fund monies to allow a highwayauthority to acquire real property or any interests in real property for state, county, and municipalhighway corridors subject to:
(i) monies available in the fund to each county under Subsections (4)(d) and (e); and
(ii) the provisions of this section.
(b) Fund monies may be used to pay interest on debts incurred in accordance with thissection.
(c) (i) (A) Fund monies may be used to pay maintenance costs of properties acquiredunder this section but limited to a total of 5% of the purchase price of the property.
(B) Any additional maintenance cost shall be paid from funds other than under thissection.
(C) Revenue generated by any property acquired under this section is excluded from thelimitations under this Subsection (5)(c)(i).
(ii) Fund monies may be used to pay direct costs of acquisition of properties acquiredunder this section.
(d) Fund monies allocated under Subsections (4)(d) and (e) may be used by a countyhighway authority for countywide transportation planning if:
(i) the county is not included in a metropolitan planning organization;
(ii) the transportation planning is part of the county's continuing, cooperative, andcomprehensive process for transportation planning, corridor preservation, right-of-wayacquisition, and project programming;
(iii) no more than four years allocation every 20 years to each county is used fortransportation planning under this Subsection (5)(d); and
(iv) the county otherwise qualifies to use the fund monies as provided under this section.
(e) (i) Subject to Subsection (11), fund monies allocated under Subsections (4)(d) and (e)may be used by a county highway authority for transportation corridor planning that is part of thecorridor elements of an ongoing work program of transportation projects.
(ii) The transportation corridor planning under Subsection (5)(e)(i) shall be under thedirection of:
(A) the metropolitan planning organization if the county is within the boundaries of ametropolitan planning organization; or
(B) the department if the county is not within the boundaries of a metropolitan planningorganization.
(6) (a) (i) The Local Transportation Corridor Preservation Fund shall be used to preservehighway corridors, promote long-term statewide transportation planning, save on acquisitioncosts, and promote the best interests of the state in a manner which minimizes impact on primeagricultural land.
(ii) The Local Transportation Corridor Preservation Fund shall only be used to preserve ahighway corridor that is right-of-way:
(A) in a county of the first or second class for a:
(I) state highway;
(II) a principal arterial highway as defined in Section 72-4-102.5;
(III) a minor arterial highway as defined in Section 72-4-102.5; or
(IV) a collector highway in an urban area as defined in Section 72-4-102.5; or
(B) in a county of the third, fourth, fifth, or sixth class for a:
(I) state highway;
(II) a principal arterial highway as defined in Section 72-4-102.5;
(III) a minor arterial highway as defined in Section 72-4-102.5;
(IV) a major collector highway as defined in Section 72-4-102.5; or
(V) a minor collector road as defined in Section 72-4-102.5.
(iii) The Local Transportation Corridor Preservation Fund may not be used for a highwaycorridor that is primarily a recreational trail as defined under Section 79-5-102.
(b) (i) The department shall develop and implement a program to educate highwayauthorities on the objectives, application process, use, and responsibilities of the LocalTransportation Corridor Preservation Fund as provided under this section to promote the mostefficient and effective use of fund monies including priority use on designated high prioritycorridor preservation projects.
(ii) The department shall develop a model transportation corridor property acquisitionpolicy or ordinance that meets federal requirements for the benefit of a highway authority toacquire real property or any interests in real property under this section.
(c) The department shall authorize the expenditure of fund monies after determining thatthe expenditure is being made in accordance with this section from applications that are:
(i) made by a highway authority;
(ii) endorsed by the council of governments; and
(iii) for a right-of-way purchase for a highway authorized under Subsection (6)(a)(ii).
(7) (a) (i) A council of governments shall establish a council of governmentsendorsement process which includes prioritization and application procedures for use of themonies allocated to each county under this section.
(ii) The endorsement process under Subsection (7)(a)(i) may include review orendorsement of the preservation project by the:
(A) metropolitan planning organization if the county is within the boundaries of ametropolitan planning organization; or
(B) the department if the county is not within the boundaries of a metropolitan planningorganization.
(b) All fund monies shall be prioritized by each highway authority and council ofgovernments based on considerations, including:
(i) areas with rapidly expanding population;
(ii) the willingness of local governments to complete studies and impact statements thatmeet department standards;
(iii) the preservation of corridors by the use of local planning and zoning processes;
(iv) the availability of other public and private matching funds for a project;
(v) the cost-effectiveness of the preservation projects;
(vi) long and short-term maintenance costs for property acquired; and
(vii) whether the transportation corridor is included as part of:
(A) the county and municipal master plan; and
(B) (I) the statewide long range plan; or
(II) the regional transportation plan of the area metropolitan planning organization if oneexists for the area.
(c) The council of governments shall:
(i) establish a priority list of highway corridor preservation projects within the county;
(ii) submit the list described in Subsection (7)(c)(i) to the county's legislative body forapproval; and
(iii) obtain approval of the list described in Subsection (7)(c)(i) from a majority of themembers of the county legislative body.
(d) A county's council of governments may only submit one priority list described inSubsection (7)(c)(i) per calendar year.
(e) A county legislative body may only consider and approve one priority list describedin Subsection (7)(c)(i) per calendar year.
(8) (a) Unless otherwise provided by written agreement with another highway authority,the highway authority that holds the deed to the property is responsible for maintenance of theproperty.
(b) The transfer of ownership for property acquired under this section from one highwayauthority to another shall include a recorded deed for the property and a written agreementbetween the highway authorities.
(9) (a) The proceeds from any bonds or other obligations secured by revenues of theLocal Transportation Corridor Preservation Fund shall be used for the purposes authorized forfunds under this section.
(b) The highway authority shall pledge the necessary part of the revenues of the LocalTransportation Corridor Preservation Fund to the payment of principal and interest on the bondsor other obligations.
(10) (a) A highway authority may not apply for monies under this section to purchase aright-of-way for a state highway unless the highway authority has:
(i) a transportation corridor property acquisition policy or ordinance in effect that meetsfederal requirements for the acquisition of real property or any interests in real property underthis section; and
(ii) an access management policy or ordinance in effect that meets the requirementsunder Subsection 72-2-117(9).
(b) The provisions of Subsection (10)(a)(i) do not apply if the highway authority has awritten agreement with the department for the acquisition of real property or any interests in realproperty under this section.
(11) (a) The department shall, in expending or authorizing the expenditure of fundmonies, ensure to the extent possible that the fund monies allocated to a city or town inaccordance with Subsection (4) are expended:
(i) to fund a project or service as allowed by this section within the city or town to whichthe fund monies are allocated;
(ii) to pay debt service, principal, or interest on a bond or other obligation as allowed bythis section if that bond or other obligation is:
(A) secured by monies allocated to the city or town; and
(B) issued to finance a project or service as allowed by this section within the city ortown to which the fund monies are allocated;
(iii) to fund transportation planning as allowed by this section within the city or town to
which the fund monies are allocated; or
(iv) for another purpose allowed by this section within the city or town to which the fundmonies are allocated.
(b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, thedepartment may make rules to implement the requirements of Subsection (11)(a).
Amended by Chapter 263, 2010 General Session