Rep. Norm Thurston — Voting Record

Bill

Number

H.B. 152 (2017GS)

Sponsor

Rep. Sandall, S.

Final action

Governor Signed 3/22/2017

Outcome

Became law — signed by Gov. Gary R. Herbert

Summary

What it does

• This bill:
• authorizes money in the Local Highway and Transportation Corridor Preservation Fund to be used for construction, maintenance, and operation of class B and class C roads or survey monument restoration or repair with limitations in a county of the third, fourth, fifth, or sixth class; and
• makes technical and conforming changes.

Every vote on this bill

Bill text

TRANSPORTATION FUNDING REVISIONS
GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Scott D. Sandall
Senate Sponsor: 
Kevin T. Van Tassell
LONG TITLE
General Description:
This bill modifies the Transportation Code by amending provisions relating to the Local
Highway and Transportation Corridor Preservation Fund.
Highlighted Provisions:
This bill:
▸ authorizes money in the Local Highway and Transportation Corridor Preservation
Fund to be used for construction, maintenance, and operation of class B and class C
roads or survey monument restoration or repair with limitations in a county of the
third, fourth, fifth, or sixth class; and
▸ makes technical and conforming changes.
Money Appropriated in this Bill:
None
Other Special Clauses:
None
Utah Code Sections Affected:
AMENDS:
41-1a-1222
, as last amended by Laws of Utah 2015, Chapter 421
59-12-2217
, as last amended by Laws of Utah 2015, Chapter 421
59-12-2218
, as last amended by Laws of Utah 2016, Chapter 348
72-2-117.5
, as last amended by Laws of Utah 2015, Chapters 395 and 410
Be it enacted by the Legislature of the state of Utah:
Section 1. Section 
41-1a-1222
 is amended to read:
41-1a-1222.
Local option highway construction and transportation corridor
preservation fee -- Exemptions -- Deposit -- Transfer -- County ordinance -- Notice.
(1) (a) (i) Except as provided in Subsection (1)(a)(ii), a county legislative body may
impose a local option highway construction and transportation corridor preservation fee of up
to $10 on each motor vehicle registration within the county.
(ii) A county legislative body may impose a local option highway construction and
transportation corridor preservation fee of up to $7.75 on each motor vehicle registration for a
six-month registration period under Section 
41-1a-215.5
 within the county.
(iii) A fee imposed under Subsection (1)(a)(i) or (ii) shall be set in whole dollar
increments.
(b) If imposed under Subsection (1)(a), at the time application is made for registration
or renewal of registration of a motor vehicle under this chapter, the applicant shall pay the local
option highway construction and transportation corridor preservation fee established by the
county legislative body.
(c) The following are exempt from the fee required under Subsection (1)(a):
(i) a motor vehicle that is exempt from the registration fee under Section 
41-1a-1209
 or
Subsection 
41-1a-419
(3);
(ii) a commercial vehicle with an apportioned registration under Section 
41-1a-301
;
and
(iii) a motor vehicle with a Purple Heart special group license plate issued in
accordance with Section 
41-1a-421
.
(2) (a) Except as provided in Subsection (2)(b), the revenue generated under this
section shall be:
(i) deposited in the Local 
Highway and
 Transportation Corridor Preservation Fund
created in Section 
72-2-117.5
;
(ii) credited to the county from which it is generated; and
(iii) used and distributed in accordance with Section 
72-2-117.5
.
(b) The revenue generated by a fee imposed under this section in a county of the first
class shall be deposited or transferred as follows:
(i) 50% of the revenue shall be:
(A) deposited in the County of the First Class Highway Projects Fund created in
Section 
72-2-121
; and
(B) used in accordance with Section 
72-2-121
;
(ii) 20% of the revenue shall be:
(A) transferred to the legislative body of a city of the first class:
(I) located in a county of the first class; and
(II) that has:
(Aa) an international airport within its boundaries; and
(Bb) a United States customs office on the premises of the international airport
described in Subsection (2)(b)(ii)(A)(II)(Aa); and
(B) used by the city described in Subsection (2)(b)(ii)(A) for highway construction,
reconstruction, or maintenance projects; and
(iii) 30% of the revenue shall be deposited, credited, and used as provided in
Subsection (2)(a).
(3) To impose or change the amount of a fee under this section, the county legislative
body shall pass an ordinance:
(a) approving the fee;
(b) setting the amount of the fee; and
(c) providing an effective date for the fee as provided in Subsection (4).
(4) (a) If a county legislative body enacts, changes, or repeals a fee under this section,
the enactment, change, or repeal shall take effect on July 1 if the commission receives notice
meeting the requirements of Subsection (4)(b) from the county prior to April 1.
(b) The notice described in Subsection (4)(a) shall:
(i) state that the county will enact, change, or repeal a fee under this part;
(ii) include a copy of the ordinance imposing the fee; and
(iii) if the county enacts or changes the fee under this section, state the amount of the
fee.
Section 2. Section 
59-12-2217
 is amended to read:
59-12-2217.
County option sales and use tax for transportation -- Base -- Rate --
Written prioritization process -- Approval by county legislative body.
(1) Subject to the other provisions of this part, a county legislative body may impose a
sales and use tax of up to .25% on the transactions described in Subsection 
59-12-103
(1)
within the county, including the cities and towns within the county.
(2) Subject to Subsections (3) through (8) and Section 
59-12-2207
, the revenues
collected from a sales and use tax under this section may only be expended for:
(a) a project or service:
(i) relating to a regionally significant transportation facility for the portion of the
project or service that is performed within the county;
(ii) for new capacity or congestion mitigation if the project or service is performed
within a county:
(A) of the first or second class; or
(B) if that county is part of an area metropolitan planning organization; and
(iii) that is on a priority list:
(A) created by the county's council of governments in accordance with Subsection (7);
and
(B) approved by the county legislative body in accordance with Subsection (7);
(b) corridor preservation for a project or service described in Subsection (2)(a) as
provided in Subsection (8); or
(c) debt service or bond issuance costs related to a project or service described in
Subsection (2)(a)(i) or (ii).
(3) If a project or service described in Subsection (2) is for:
(a) a principal arterial highway or a minor arterial highway in a county of the first or
second class or a collector road in a county of the second class, that project or service shall be
part of the:
(i) county and municipal master plan; and
(ii) (A) statewide long-range plan; or
(B) regional transportation plan of the area metropolitan planning organization if a
metropolitan planning organization exists for the area; or
(b) a fixed guideway or an airport, that project or service shall be part of the regional
transportation plan of the area metropolitan planning organization if a metropolitan planning
organization exists for the area.
(4) In a county of the first or second class, a regionally significant transportation
facility project or service described in Subsection (2)(a)(i) shall have a funded year priority
designation on a Statewide Transportation Improvement Program and Transportation
Improvement Program if the project or service described in Subsection (2)(a)(i) is:
(a) a principal arterial highway;
(b) a minor arterial highway;
(c) a collector road in a county of the second class; or
(d) a major collector highway in a rural area.
(5) Of the revenues collected from a sales and use tax imposed under this section
within a county of the first or second class, 25% or more shall be expended for the purpose
described in Subsection (2)(b).
(6) (a) As provided in this Subsection (6), a council of governments shall:
(i) develop a written prioritization process for the prioritization of projects to be funded
by revenues collected from a sales and use tax under this section;
(ii) create a priority list of regionally significant transportation facility projects or
services described in Subsection (2)(a)(i) in accordance with Subsection (7); and
(iii) present the priority list to the county legislative body for approval in accordance
with Subsection (7).
(b) The written prioritization process described in Subsection (6)(a)(i) shall include:
(i) a definition of the type of projects to which the written prioritization process
applies;
(ii) subject to Subsection (6)(c), the specification of a weighted criteria system that the
council of governments will use to rank proposed projects and how that weighted criteria
system will be used to determine which proposed projects will be prioritized;
(iii) the specification of data that is necessary to apply the weighted criteria system;
(iv) application procedures for a project to be considered for prioritization by the
council of governments; and
(v) any other provision the council of governments considers appropriate.
(c) The weighted criteria system described in Subsection (6)(b)(ii) shall include the
following:
(i) the cost effectiveness of a project;
(ii) the degree to which a project will mitigate regional congestion;
(iii) the compliance requirements of applicable federal laws or regulations;
(iv) the economic impact of a project;
(v) the degree to which a project will require tax revenues to fund maintenance and
operation expenses; and
(vi) any other provision the council of governments considers appropriate.
(d) A council of governments of a county of the first or second class shall submit the
written prioritization process described in Subsection (6)(a)(i) to the Executive Appropriations
Committee for approval prior to taking final action on:
(i) the written prioritization process; or
(ii) any proposed amendment to the written prioritization process.
(7) (a) A council of governments shall use the weighted criteria system adopted in the
written prioritization process developed in accordance with Subsection (6) to create a priority
list of regionally significant transportation facility projects or services for which revenues
collected from a sales and use tax under this section may be expended.
(b) Before a council of governments may finalize a priority list or the funding level of a
project, the council of governments shall conduct a public meeting on:
(i) the written prioritization process; and
(ii) the merits of the projects that are prioritized as part of the written prioritization
process.
(c) A council of governments shall make the weighted criteria system ranking for each
project prioritized as part of the written prioritization process publicly available before the
public meeting required by Subsection (7)(b) is held.
(d) If a council of governments prioritizes a project over another project with a higher
rank under the weighted criteria system, the council of governments shall:
(i) identify the reasons for prioritizing the project over another project with a higher
rank under the weighted criteria system at the public meeting required by Subsection (7)(b);
and
(ii) make the reasons described in Subsection (7)(d)(i) publicly available.
(e) Subject to Subsections (7)(f) and (g), after a council of governments finalizes a
priority list in accordance with this Subsection (7), the council of governments shall:
(i) submit the priority list to the county legislative body for approval; and
(ii) obtain approval of the priority list from a majority of the members of the county
legislative body.
(f) A council of governments may only submit one priority list per calendar year to the
county legislative body.
(g) A county legislative body may only consider and approve one priority list submitted
under Subsection (7)(e) per calendar year.
(8) (a) Except as provided in Subsection (8)(b), revenues collected from a sales and use
tax under this section that a county allocates for a purpose described in Subsection (2)(b) shall
be:
(i) deposited in or transferred to the Local 
Highway and
 Transportation Corridor
Preservation Fund created by Section 
72-2-117.5
; and
(ii) expended as provided in Section 
72-2-117.5
.
(b) In a county of the first class, revenues collected from a sales and use tax under this
section that a county allocates for a purpose described in Subsection (2)(b) shall be:
(i) deposited in or transferred to the County of the First Class Highway Projects Fund
created by Section 
72-2-121
; and
(ii) expended as provided in Section 
72-2-121
.
Section 3. Section 
59-12-2218
 is amended to read:
59-12-2218.
County, city, or town option sales and use tax for airports, highways,
and systems for public transit -- Base -- Rate -- Administration of sales and use tax --
Voter approval exception.
(1) Subject to the other provisions of this part, the following may impose a sales and
use tax under this section:
(a) if, on April 1, 2009, a county legislative body of a county of the second class
imposes a sales and use tax under this section, the county legislative body of the county of the
second class may impose the sales and use tax on the transactions:
(i) described in Subsection 
59-12-103
(1); and
(ii) within the county, including the cities and towns within the county; or
(b) if, on April 1, 2009, a county legislative body of a county of the second class does
not impose a sales and use tax under this section:
(i) a city legislative body of a city within the county of the second class may impose a
sales and use tax under this section on the transactions described in Subsection 
59-12-103
(1)
within that city;
(ii) a town legislative body of a town within the county of the second class may impose
a sales and use tax under this section on the transactions described in Subsection 
59-12-103
(1)
within that town; and
(iii) the county legislative body of the county of the second class may impose a sales
and use tax on the transactions described in Subsection 
59-12-103
(1):
(A) within the county, including the cities and towns within the county, if on the date
the county legislative body provides the notice described in Section 
59-12-2209
 to the
commission stating that the county will enact a sales and use tax under this section, no city or
town within that county imposes a sales and use tax under this section or has provided the
notice described in Section 
59-12-2209
 to the commission stating that the city or town will
enact a sales and use tax under this section; or
(B) within the county, except for within a city or town within that county, if, on the
date the county legislative body provides the notice described in Section 
59-12-2209
 to the
commission stating that the county will enact a sales and use tax under this section, that city or
town imposes a sales and use tax under this section or has provided the notice described in
Section 
59-12-2209
 to the commission stating that the city or town will enact a sales and use
tax under this section.
(2) For purposes of Subsection (1) and subject to the other provisions of this section, a
county, city, or town legislative body that imposes a sales and use tax under this section may
impose the tax at a rate of:
(a) .10%; or
(b) .25%.
(3) A sales and use tax imposed at a rate described in Subsection (2)(a) shall be
expended as determined by the county, city, or town legislative body as follows:
(a) deposited as provided in Subsection (9)(b) into the County of the Second Class
State Highway Projects Fund created by Section 
72-2-121.2
 and expended as provided in
Section 
72-2-121.2
;
(b) expended for a project or service relating to an airport facility for the portion of the
project or service that is performed within the county, city, or town within which the tax is
imposed:
(i) for a county legislative body that imposes the sales and use tax, if that airport
facility is part of the regional transportation plan of the area metropolitan planning organization
if a metropolitan planning organization exists for the area; or
(ii) for a city or town legislative body that imposes the sales and use tax, if:
(A) that city or town owns or operates the airport facility; and
(B) an airline is headquartered in that city or town; or
(c) deposited or expended for a combination of Subsections (3)(a) and (b).
(4) Subject to Subsections (5) through (7), a sales and use tax imposed at a rate
described in Subsection (2)(b) shall be expended as determined by the county, city, or town
legislative body as follows:
(a) deposited as provided in Subsection (9)(b) into the County of the Second Class
State Highway Projects Fund created by Section 
72-2-121.2
 and expended as provided in
Section 
72-2-121.2
;
(b) expended for:
(i) a state highway designated under Title 72, Chapter 4, Part 1, State Highways;
(ii) a local highway that is a principal arterial highway, minor arterial highway, major
collector highway, or minor collector road; or
(iii) a combination of Subsections (4)(b)(i) and (ii);
(c) expended for a project or service relating to a system for public transit for the
portion of the project or service that is performed within the county, city, or town within which
the sales and use tax is imposed;
(d) expended for a project or service relating to an airport facility for the portion of the
project or service that is performed within the county, city, or town within which the sales and
use tax is imposed:
(i) for a county legislative body that imposes the sales and use tax, if that airport
facility is part of the regional transportation plan of the area metropolitan planning organization
if a metropolitan planning organization exists for the area; or
(ii) for a city or town legislative body that imposes the sales and use tax, if:
(A) that city or town owns or operates the airport facility; and
(B) an airline is headquartered in that city or town;
(e) expended for:
(i) a class B road, as defined in Section 
72-3-103
;
(ii) a class C road, as defined in Section 
72-3-104
; or
(iii) a combination of Subsections (4)(e)(i) and (ii);
(f) expended for traffic and pedestrian safety, including:
(i) for a class B road, as defined in Section 
72-3-103
, or class C road, as defined in
Section 
72-3-104
, for:
(A) a sidewalk;
(B) curb and gutter;
(C) a safety feature;
(D) a traffic sign;
(E) a traffic signal;
(F) street lighting; or
(G) a combination of Subsections (4)(f)(i)(A) through (F);
(ii) the construction of an active transportation facility that:
(A) is for nonmotorized vehicles and multimodal transportation; and
(B) connects an origin with a destination; or
(iii) a combination of Subsections (4)(f)(i) and (ii); or
(g) deposited or expended for a combination of Subsections (4)(a) through (f).
(5) A county, city, or town legislative body may not expend revenue collected within a
county, city, or town from a tax under this section for a purpose described in Subsections (4)(b)
through (f) unless the purpose is recommended by:
(a) for a county that is part of a metropolitan planning organization, the metropolitan
planning organization of which the county is a part; or
(b) for a county that is not part of a metropolitan planning organization, the council of
governments of which the county is a part.
(6) (a) (i) Except as provided in Subsection (6)(b), a county, city, or town that imposes
a tax described in Subsection (2)(b) shall deposit the revenue collected from a tax rate of .05%
as provided in Subsection (9)(b)(i) into the Local 
Highway and
 Transportation Corridor
Preservation Fund created by Section 
72-2-117.5
.
(ii) Revenue deposited in accordance with Subsection (6)(a)(i) shall be expended and
distributed in accordance with Section 
72-2-117.5
.
(b) A county, city, or town is not required to make the deposit required by Subsection
(6)(a)(i) if the county, city, or town:
(i) imposed a tax described in Subsection (2)(b) on July 1, 2010; or
(ii) has continuously imposed a tax described in Subsection (2)(b):
(A) beginning after July 1, 2010; and
(B) for a five-year period.
(7) (a) Subject to the other provisions of this Subsection (7), a city or town within
which a sales and use tax is imposed at the tax rate described in Subsection (2)(b) may:
(i) expend the revenues in accordance with Subsection (4); or
(ii) expend the revenues in accordance with Subsections (7)(b) through (d) if:
(A) that city or town owns or operates an airport facility; and
(B) an airline is headquartered in that city or town.
(b) (i) A city or town legislative body of a city or town within which a sales and use tax
is imposed at the tax rate described in Subsection (2)(b) may expend the revenues collected
from a tax rate of greater than .10% but not to exceed the revenues collected from a tax rate of
.25% for a purpose described in Subsection (7)(b)(ii) if:
(A) that city or town owns or operates an airport facility; and
(B) an airline is headquartered in that city or town.
(ii) A city or town described in Subsection (7)(b)(i) may expend the revenues collected
from a tax rate of greater than .10% but not to exceed the revenues collected from a tax rate of
.25% for:
(A) a project or service relating to the airport facility; and
(B) the portion of the project or service that is performed within the city or town
imposing the sales and use tax.
(c) If a city or town legislative body described in Subsection (7)(b)(i) determines to
expend the revenues collected from a tax rate of greater than .10% but not to exceed the
revenues collected from a tax rate of .25% for a project or service relating to an airport facility
as allowed by Subsection (7)(b), any remaining revenue that is collected from the sales and use
tax imposed at the tax rate described in Subsection (2)(b) that is not expended for the project or
service relating to an airport facility as allowed by Subsection (7)(b) shall be expended as
follows:
(i) 75% of the remaining revenues shall be deposited as provided in Subsection (9)(c)
into the County of the Second Class State Highway Projects Fund created by Section
72-2-121.2
 and expended as provided in Section 
72-2-121.2
; and
(ii) 25% of the remaining revenues shall be deposited as provided in Subsection (9)(c)
into the Local 
Highway and
 Transportation Corridor Preservation Fund created by Section
72-2-117.5
 and expended and distributed in accordance with Section 
72-2-117.5
.
(d) A city or town legislative body that expends the revenues collected from a sales and
use tax imposed at the tax rate described in Subsection (2)(b) in accordance with Subsections
(7)(b) and (c):
(i) shall, on or before the date the city or town legislative body provides the notice
described in Section 
59-12-2209
 to the commission stating that the city or town will enact a
sales and use tax under this section:
(A) determine the tax rate, the percentage of which is greater than .10% but does not
exceed .25%, the collections from which the city or town legislative body will expend for a
project or service relating to an airport facility as allowed by Subsection (7)(b); and
(B) notify the commission in writing of the tax rate the city or town legislative body
determines in accordance with Subsection (7)(d)(i)(A);
(ii) shall, on or before the April 1 immediately following the date the city or town
legislative body provides the notice described in Subsection (7)(d)(i) to the commission:
(A) determine the tax rate, the percentage of which is greater than .10% but does not
exceed .25%, the collections from which the city or town legislative body will expend for a
project or service relating to an airport facility as allowed by Subsection (7)(b); and
(B) notify the commission in writing of the tax rate the city or town legislative body
determines in accordance with Subsection (7)(d)(ii)(A);
(iii) shall, on or before April 1 of each year after the April 1 described in Subsection
(7)(d)(ii):
(A) determine the tax rate, the percentage of which is greater than .10% but does not
exceed .25%, the collections from which the city or town legislative body will expend for a
project or service relating to an airport facility as allowed by Subsection (7)(b); and
(B) notify the commission in writing of the tax rate the city or town legislative body
determines in accordance with Subsection (7)(d)(iii)(A); and
(iv) may not change the tax rate the city or town legislative body determines in
accordance with Subsections (7)(d)(i) through (iii) more frequently than as prescribed by
Subsections (7)(d)(i) through (iii).
(8) Before a city or town legislative body may impose a sales and use tax under this
section, the city or town legislative body shall provide a copy of the notice described in Section
59-12-2209
 that the city or town legislative body provides to the commission:
(a) to the county legislative body within which the city or town is located; and
(b) at the same time as the city or town legislative body provides the notice to the
commission.
(9) (a) Subject to Subsections (9)(b) through (e) and Section 
59-12-2207
, the
commission shall transmit revenues collected within a county, city, or town from a tax under
this part that will be expended for a purpose described in Subsection (3)(b) or Subsections
(4)(b) through (f) to the county, city, or town legislative body in accordance with Section
59-12-2206
.
(b) Except as provided in Subsection (9)(c) and subject to Section 
59-12-2207
, the
commission shall deposit revenues collected within a county, city, or town from a sales and use
tax under this section that:
(i) are required to be expended for a purpose described in Subsection (6)(a) into the
Local Transportation Corridor Preservation Fund created by Section 
72-2-117.5
; or
(ii) a county, city, or town legislative body determines to expend for a purpose
described in Subsection (3)(a) or (4)(a) into the County of the Second Class State Highway
Projects Fund created by Section 
72-2-121.2
 if the county, city, or town legislative body
provides written notice to the commission requesting the deposit.
(c) Subject to Subsection (9)(d) or (e), if a city or town legislative body provides notice
to the commission in accordance with Subsection (7)(d), the commission shall:
(i) transmit the revenues collected from the tax rate stated on the notice to the city or
town legislative body monthly by electronic funds transfer; and
(ii) deposit any remaining revenues described in Subsection (7)(c) in accordance with
Subsection (7)(c).
(d) (i) If a city or town legislative body provides the notice described in Subsection
(7)(d)(i) to the commission, the commission shall transmit or deposit the revenues collected
from the sales and use tax:
(A) in accordance with Subsection (9)(c);
(B) beginning on the date the city or town legislative body enacts the sales and use tax;
and
(C) ending on the earlier of the June 30 immediately following the date the city or town
legislative body provides the notice described in Subsection (7)(d)(ii) to the commission or the
date the city or town legislative body repeals the sales and use tax.
(ii) If a city or town legislative body provides the notice described in Subsection
(7)(d)(ii) or (iii) to the commission, the commission shall transmit or deposit the revenues
collected from the sales and use tax:
(A) in accordance with Subsection (9)(c);
(B) beginning on the July 1 immediately following the date the city or town legislative
body provides the notice described in Subsection (7)(d)(ii) or (iii) to the commission; and
(C) ending on the earlier of the June 30 of the year after the date the city or town
legislative body provides the notice described in Subsection (7)(d)(ii) or (iii) to the commission
or the date the city or town legislative body repeals the sales and use tax.
(e) (i) If a city or town legislative body that is required to provide the notice described
in Subsection (7)(d)(i) does not provide the notice described in Subsection (7)(d)(i) to the
commission on or before the date required by Subsection (7)(d) for providing the notice, the
commission shall transmit, transfer, or deposit the revenues collected from the sales and use
tax within the city or town in accordance with Subsections (9)(a) and (b).
(ii) If a city or town legislative body that is required to provide the notice described in
Subsection (7)(d)(ii) or (iii) does not provide the notice described in Subsection (7)(d)(ii) or
(iii) to the commission on or before the date required by Subsection (7)(d) for providing the
notice, the commission shall transmit or deposit the revenues collected from the sales and use
tax within the city or town in accordance with:
(A) Subsection (9)(c); and
(B) the most recent notice the commission received from the city or town legislative
body under Subsection (7)(d).
Section 4. Section 
72-2-117.5
 is amended to read:
72-2-117.5.
Definitions -- Local Highway and Transportation Corridor
Preservation Fund -- Disposition of fund money.
(1) As used in this section:
(a) "Council of governments" means a decision-making body in each county composed
of the county governing body and the mayors of each municipality in the county.
(b) "Metropolitan planning organization" has the same meaning as defined in Section
72-1-208.5
.
(2) There is created the Local 
Highway and
 Transportation Corridor Preservation Fund
within the Transportation Fund.
(3) The fund shall be funded from the following sources:
(a) a local option highway construction and transportation corridor preservation fee
imposed 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 money collected from rents and sales of real property acquired with fund money;
(e) proceeds from general obligation bonds, revenue bonds, or other obligations issued
as authorized by Title 63B, Bonds;
(f) the portion of the sales and use tax described in Subsection 
59-12-2217
(2)(b) and
required 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 Section
59-12-2218
.
(4) (a) The fund shall earn interest.
(b) All interest earned on fund money shall be deposited into the fund.
(c) The State Tax Commission shall allocate the revenues:
(i) provided under Subsection (3)(a) to each county imposing a local option highway
construction and transportation corridor preservation fee under Section 
41-1a-1222
;
(ii) provided under Subsection 
59-12-2217
(2)(b) to each county imposing a county
option sales and use tax for transportation; and
(iii) provided under Subsection (3)(g) to each county of the second class or city or town
within a county of the second class that imposes the sales and use tax authorized by Section
59-12-2218
.
(d) The department shall distribute the funds allocated to each county, city, or town
under Subsection (4)(c) to each county, city, or town.
(e) The money allocated and distributed under this Subsection (4):
(i) shall be used for the purposes provided in this section for each county, city, or town;
(ii) is allocated to each county, city, or town as provided in this section with the
condition that the state will not be charged for any asset purchased with the money allocated
and distributed under this Subsection (4), unless there is a written agreement in place with the
department prior to the purchase of the asset stipulating a reimbursement by the state to the
county, city, or town of no more than the original purchase price paid by the county, city, or
town; and
(iii) is considered a local matching contribution for the purposes described under
Section 
72-2-123
 if used on a state highway.
(f) Administrative costs of the department to implement this section shall be paid from
the fund.
(5) (a) A highway authority may acquire real property or any interests in real property
for state, county, and municipal highway corridors subject to:
(i) money available in the fund to each county under Subsection (4); and
(ii) the provisions of this section.
(b) Fund money may be used to pay interest on debts incurred in accordance with this
section.
(c) (i) (A) Fund money may be used to pay maintenance costs of properties acquired
under 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 this
section.
(C) Revenue generated by any property acquired under this section is excluded from
the limitations under this Subsection (5)(c)(i).
(ii) Fund money may be used to pay direct costs of acquisition of properties acquired
under this section.
(d) Fund money allocated and distributed under Subsection (4) may be used by a
county highway authority for countywide transportation planning if:
(i) the county's planning focus area is outside the boundaries of a metropolitan
planning organization;
(ii) the transportation planning is part of the county's continuing, cooperative, and
comprehensive process for transportation planning, corridor preservation, right-of-way
acquisition, and project programming;
(iii) no more than four years allocation every 20 years to each county is used for
transportation planning under this Subsection (5)(d); and
(iv) the county otherwise qualifies to use the fund money as provided under this
section.
(e) (i) Subject to Subsection (11), fund money allocated and distributed under
Subsection (4) may be used by a county highway authority for transportation corridor planning
that is part of the corridor elements of an ongoing work program of transportation projects.
(ii) The transportation corridor planning under Subsection (5)(e)(i) shall be under the
direction of:
(A) the metropolitan planning organization if the county is within the boundaries of a
metropolitan planning organization; or
(B) the department if the county is not within the boundaries of a metropolitan
planning organization.
(f) (i) A county, city, or town that imposes a local option highway construction and
transportation corridor preservation fee under Section 
41-1a-1222
 may elect to administer the
funds allocated and distributed to that county, city, or town under Subsection (4) as a revolving
loan fund.
(ii) If a county, city, or town elects to administer the funds allocated and distributed to
that county, city, or town under Subsection (4) as a revolving loan fund, a local highway
authority shall repay the fund money authorized for the project to the fund.
(iii) A county, city, or town that elects to administer the funds allocated and distributed
to that county, city, or town under Subsection (4) as a revolving loan fund shall establish
repayment conditions of the money to the fund from the specified project funds.
(g) (i) Subject to the restrictions in Subsections (5)(g)(ii) and (iii), fund money may be
used by a county of the third, fourth, fifth, or sixth class or by a city or town within a county of
the third, fourth, fifth, or sixth class for:
(A) the construction, operation, or maintenance of a class B road or class C road; or
(B) the restoration or repair of survey monuments associated with transportation
infrastructure.
(ii) A county, city, or town may not use more than 50% of the current balance of fund
money allocated to the county, city, or town for the purposes described in Subsection (5)(g)(i).
(iii) A county, city, or town may not use more than 50% of the fund revenue collections
allocated to a county, city, or town in the current fiscal year for the purposes described in
Subsection (5)(g)(i).
(6) (a) (i) The Local 
Highway and
 Transportation Corridor Preservation Fund shall be
used to preserve highway corridors, promote long-term statewide transportation planning, save
on acquisition costs, and promote the best interests of the state in a manner which minimizes
impact on prime agricultural land.
(ii) The Local 
Highway and
 Transportation Corridor Preservation Fund shall only be
used to preserve a highway corridor that is right-of-way:
(A) in a county of the first or second class for:
(I) a 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:
(I) a 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 
Highway and
 Transportation Corridor Preservation Fund may not be
used for a highway corridor that is primarily a recreational trail as defined under Section
79-5-102
.
(b) A highway authority shall authorize the expenditure of fund money after
determining that the expenditure is being made in accordance with this section from
applications that are:
(i) endorsed by the council of governments; and
(ii) 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 governments
endorsement process which includes prioritization and application procedures for use of the
money allocated to each county under this section.
(ii) The endorsement process under Subsection (7)(a)(i) may include review or
endorsement of the preservation project by:
(A) the metropolitan planning organization if the county is within the boundaries of a
metropolitan planning organization; or
(B) the department if the county is not within the boundaries of a metropolitan
planning organization.
(b) All fund money shall be prioritized by each highway authority and council of
governments based on considerations, including:
(i) areas with rapidly expanding population;
(ii) the willingness of local governments to complete studies and impact statements
that meet 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
one exists 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 for
approval; and
(iii) obtain approval of the list described in Subsection (7)(c)(i) from a majority of the
members of the county legislative body.
(d) A county's council of governments may only submit one priority list described in
Subsection (7)(c)(i) per calendar year.
(e) A county legislative body may only consider and approve one priority list described
in 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 the property.
(b) The transfer of ownership for property acquired under this section from one
highway authority to another shall include a recorded deed for the property and a written
agreement between the highway authorities.
(9) (a) The proceeds from any bonds or other obligations secured by revenues of the
Local 
Highway and
 Transportation Corridor Preservation Fund shall be used for the purposes
authorized for funds under this section.
(b) The highway authority shall pledge the necessary part of the revenues of the Local
Highway and
 Transportation Corridor Preservation Fund to the payment of principal and
interest on the bonds or other obligations.
(10) (a) A highway authority may not expend money under this section to purchase a
right-of-way for a state highway unless the highway authority has:
(i) a transportation corridor property acquisition policy or ordinance in effect that
meets department requirements for the acquisition of real property or any interests in real
property under this section; and
(ii) an access management policy or ordinance in effect that meets the requirements
under Subsection 
72-2-117
(8).
(b) The provisions of Subsection (10)(a)(i) do not apply if the highway authority has a
written agreement with the department for the department to acquire real property or any
interests in real property on behalf of the local highway authority under this section.
(11) The county shall ensure, to the extent possible, that the fund money allocated and
distributed to a city or town in accordance with Subsection (4) is expended:
(a) to fund a project or service as allowed by this section within the city or town to
which the fund money is allocated;
(b) to pay debt service, principal, or interest on a bond or other obligation as allowed
by this section if that bond or other obligation is:
(i) secured by money allocated to the city or town; and
(ii) issued to finance a project or service as allowed by this section within the city or
town to which the fund money is allocated;
(c) to fund transportation planning as allowed by this section within the city or town to
which the fund money is allocated; or
(d) for another purpose allowed by this section within the city or town to which the
fund money is allocated.