Rep. Norm Thurston — Voting Record

Bill

Number

H.B. 151 First Substitute (2021GS)

Sponsor

Rep. Brammer, B.

Final action

Governor Signed 3/16/2021

Outcome

Became law — signed by Gov. Spencer J. Cox

Summary

What it does

• This bill:
• defines the term "publicly owned infrastructure project" as it pertains to the use of State Infrastructure Bank funds;
• amends provisions related to the use of State Infrastructure Bank funds for transportation and publicly owned infrastructure projects; and
• makes technical changes.

Every vote on this bill

Bill text

STATE INFRASTRUCTURE BANK AMENDMENTS
GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Brady Brammer
Senate Sponsor: 
Kirk A. Cullimore
LONG TITLE
General Description:
This bill amends provisions of the Transportation Code pertaining to the use of State
Infrastructure Bank revenue for transportation or publicly owned infrastructure projects.
Highlighted Provisions:
This bill:
▸ defines the term "publicly owned infrastructure project" as it pertains to the use of
State Infrastructure Bank funds;
▸ amends provisions related to the use of State Infrastructure Bank funds for
transportation and publicly owned infrastructure projects; and
▸ makes technical changes.
Money Appropriated in this Bill:
None
Other Special Clauses:
None
Utah Code Sections Affected:
AMENDS:
72-2-201
, as last amended by Laws of Utah 2020, Chapter 366
72-2-202
, as last amended by Laws of Utah 2019, Chapter 479
72-2-204
, as last amended by Laws of Utah 2020, Chapter 366
72-2-206
, as renumbered and amended by Laws of Utah 1998, Chapter 270
Be it enacted by the Legislature of the state of Utah:
Section 1. Section 
72-2-201
 is amended to read:
72-2-201.
Definitions.
As used in this part:
(1) "Fund" means the State Infrastructure Bank Fund created under Section 
72-2-202
.
(2) "Infrastructure assistance" means any use of fund money, except an infrastructure
loan, to provide financial assistance for transportation projects 
or publicly owned infrastructure
projects
, including:
(a) capital reserves and other security for bond or debt instrument financing; or
(b) any letters of credit, lines of credit, bond insurance, or loan guarantees obtained by
a public entity to finance transportation projects.
(3) "Infrastructure loan" means a loan of fund money to finance a transportation project
or publicly owned infrastructure project
.
(4) "Public entity" means a state agency, county, municipality, local district, special
service district, an intergovernmental entity organized under state law, or the military
installation development authority created in Section 
63H-1-201
.
(5) "Publicly owned infrastructure project" means a project to improve sewer or water
infrastructure that is owned by a public entity.
[
(5)
] 
(6)
 "Transportation project":
(a) means a project:
(i) to improve a state or local highway;
(ii) to improve a public transportation facility or nonmotorized transportation facility;
(iii) to construct or improve parking facilities; or
(iv) that is subject to a transportation reinvestment zone agreement pursuant to Section
11-13-227
 if the state is party to the agreement;
(b) includes the costs of acquisition, construction, reconstruction, rehabilitation,
equipping, and fixturing; and
(c) may only include a project if the project is part of:
(i) the statewide long range plan;
(ii) a regional transportation plan of the area metropolitan planning organization if a
metropolitan planning organization exists for the area; or
(iii) a local government general plan or economic development initiative.
Section 2. Section 
72-2-202
 is amended to read:
72-2-202.
State Infrastructure Bank Fund -- Creation -- Use of money.
(1) There is created a revolving loan fund entitled the State Infrastructure Bank Fund.
(2) (a) The fund consists of money generated from the following revenue sources:
(i) appropriations made to the fund by the Legislature;
(ii) federal money and grants that are deposited in the fund;
(iii) money transferred to the fund by the commission from other money available to
the department;
(iv) state grants that are deposited in the fund;
(v) contributions or grants from any other private or public sources for deposit into the
fund; and
(vi) subject to Subsection (2)(b), all money collected from repayments of fund money
used for infrastructure loans or infrastructure assistance.
(b) When a loan from the fund is repaid, the department may request and the
Legislature may transfer from the fund to the source from which the money originated an
amount equal to the repaid loan.
(3) (a) The fund shall earn interest.
(b) All interest earned on fund money shall be deposited into the fund.
(4) Money in the fund shall be used by the department, as prioritized by the
commission, only to:
(a) provide infrastructure loans or infrastructure assistance; and
(b) pay the department for the costs of administering the fund, providing infrastructure
loans or infrastructure assistance, monitoring transportation projects 
and publicly owned
infrastructure projects
, and obtaining repayments of infrastructure loans or infrastructure
assistance.
(5) (a) The department may establish separate accounts in the fund for infrastructure
loans, infrastructure assistance, administrative and operating expenses, or any other purpose to
implement this part.
(b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
department may make rules governing how the fund and its accounts may be held by an escrow
agent.
(6) Fund money shall be invested by the state treasurer as provided in Title 51, Chapter
7, State Money Management Act, and the earnings from the investments shall be credited to the
fund.
Section 3. Section 
72-2-204
 is amended to read:
72-2-204.
Loan program procedures -- Repayment.
(1) A public entity may obtain an infrastructure loan from the department, upon
approval by the commission, by entering into a loan contract with the department secured by
legally issued bonds, notes, or other evidence of indebtedness validly issued under state law,
including pledging all or any portion of a revenue source controlled by the public entity to the
repayment of the loan.
(2) A loan or assistance from the fund shall bear interest at a rate not to exceed .5%
above bond market interest rates available to the state.
(3) A loan shall be repaid no later than 15 years from the date the department issues the
loan to the borrower, with repayment commencing no later than:
(a) when the project is completed; or
(b) in the case of a highway project, when the facility has opened to traffic.
(4) The public entity shall repay the infrastructure loan in accordance with the loan
contract from any of the following sources:
(a) transportation project 
or publicly owned infrastructure project
 revenues, including
special assessment revenues;
(b) general funds of the public entity;
(c) money withheld under Subsection (7); or
(d) any other legally available revenues.
(5) An infrastructure loan contract with a public entity may provide that a portion of
the proceeds of the loan may be applied to fund a reserve fund to secure the repayment of the
loan.
(6) Before obtaining an infrastructure loan, a county or municipality shall:
(a) publish its intention to obtain an infrastructure loan at least once in accordance with
the publication of notice requirements under Section 
11-14-316
; and
(b) adopt an ordinance or resolution authorizing the infrastructure loan.
(7) (a) If a public entity fails to comply with the terms of its infrastructure loan
contract, the department may seek any legal or equitable remedy to obtain compliance or
payment of damages.
(b) If a public entity fails to make infrastructure loan payments when due, the state
shall, at the request of the department, withhold an amount of money due to the public entity
and deposit the withheld money in the fund to pay the amounts due under the contract.
(c) The department may elect when to request the withholding of money under this
Subsection (7).
(8) All loan contracts, bonds, notes, or other evidence of indebtedness securing the
loan contracts shall be held, collected, and accounted for in accordance with Section
63B-1b-202
.
Section 4. Section 
72-2-206
 is amended to read:
72-2-206.
Department authority to contract.
The department may, upon approval of the commission:
(1) make all contracts, execute all instruments, and do all things necessary or
convenient to provide financial assistance for transportation projects 
or publicly owned
infrastructure projects
 in accordance with this chapter; and
(2) enter into and perform the contracts and agreements with entities concerning the
planning, construction, lease, or other acquisition, installation, or financing of transportation
projects 
or publicly owned infrastructure projects
.