No. 31920 (New Rule): R940-3. Procedures for Transportation Infrastructure Loan Fund Assistance

DAR File No.: 31920
Filed: 09/02/2008, 01:31
Received by: NL

RULE ANALYSIS

Purpose of the rule or reason for the change:

This rule is to establish procedures and standards for making loans and assistance through the Transportation Infrastructure Loan Fund.

Summary of the rule or change:

This rule establishes definitions, outlines commission responsibilities, and establishes conditions for assistance or loans from the Transportation Infrastructure Loan Fund.

State statutory or constitutional authorization for this rule:

Section 72-1-302

Anticipated cost or savings to:

the state budget:

The anticipated cost or savings to the state or a local government will depend on two factors: 1) whether loans are obtained by local government entities through the Transportation Infrastructure Loan Fund; and 2) the terms of the loan as approved by the Utah Transportation Commission. To date, local government entities have obtained a loan through the Transportation Infrastructure Loan Fund only twice since its inception. It is unknown how frequently the Loan Fund will be accessed in the future or what loan terms will be imposed. Historically, the Transportation Commission has imposed an interest rate equal to current Treasury Bill rates. Local entities could realize savings if the rates approved by the Transportation Commission are better than rates a local entity could obtain on the open market. Any proceeds realized from a loan are paid back to the Transportation Infrastructure Loan Fund and become available for loans through the Fund.

local governments:

See the response to state budget above.

small businesses and persons other than businesses:

No financial impacts are imposed on business since statute restricts use of the fund to public entities.

Compliance costs for affected persons:

There are no compliance costs to private entities since the rule doesn't apply to the private sector. There would be no compliance costs for local governments since local governments will seek loans through the Fund only if it is financially advantageous.

Comments by the department head on the fiscal impact the rule may have on businesses:

Whether loans are obtained by local government entities through the Transportation Infrastructure Loan Fund or the terms of the loan as approved by the Utah Transportation Commission, no fiscal impact is expected. John Njord, Executive Director

The full text of this rule may be inspected, during regular business hours, at the Division of Administrative Rules, or at:

Transportation Commission
Administration
CALVIN L RAMPTON COMPLEX
4501 S 2700 W
SALT LAKE CITY UT 84119

Direct questions regarding this rule to:

Maureen Short at the above address, by phone at 801-965-4026, by FAX at 801-965-4338, or by Internet E-mail at [e-mail]

Interested persons may present their views on this rule by submitting written comments to the address above no later than 5:00 p.m. on:

10/15/2008

This rule may become effective on:

10/22/2008

Authorized by:

John R. Njord, Executive Director

RULE TEXT

R940. Transportation Commission, Administration.

R940-3. Procedures for Transportation Infrastructure Loan Fund Assistance.

R940-3-1. Purpose and Authority.

This rule is enacted under the provisions of Section 72-2-203. The purpose of this rule is to establish procedures and standards for making loans and assistance through the Transportation Infrastructure Loan Fund.

 

R940-3-2. Definitions.

(1) "Commission" means the Transportation Commission, which is created in Utah Code Ann. Section 72-1-301;

(2) "Department" means the Utah Department of Transportation, which is created in Utah Code Ann. Section 72-1-101;

(3) "Fund" means the Transportation Infrastructure Loan Fund, which is created in Utah Code Ann. Section 72-2-202;

(4) "Assistance" means infrastructure assistance defined in Utah Code Ann. 72-2-201;

(5) "Loan" means infrastructure loan defined in Utah Code Ann. 72-2-201;

(6) "Transportation project" has the same meaning as defined in Utah Code Ann. 72-2-201;

(7) "Qualified request" means any request submitted by a public entity for assistance or a loan:

(a) that has been received and reviewed by the department;

(b) that has been submitted by the department to the commission for review with a recommendation from the department to accept or reject the request;

(c) for a transportation project that is on the Statewide Transportation Improvement Program;

(8) "Public entity" has the same meaning as defined in Utah Code Ann. 72-2-201.

 

R940-3-3. Commission Responsibilities.

The commission shall:

(a) receive and review all qualified requests for assistance or loans through the fund;

(b) approve assistance or loans provided by the department through the fund;

(c) approve the terms of assistance or loans, including interest rates and repayment;

(d) prioritize requests for assistance or loans based on:

(i) the availability of monies in the fund;

(ii) the merits of each qualified request as determined by the commission including, but not limited to, the ability to repay the loan, management of the project, the need for the transportation project and the public benefit.

 

R940-3-4. Conditions for Assistance or Loans.

The commission shall approve or reject qualified requests submitted by the department during a commission meeting held under 72-1-302, including the terms for repayment. Any subsequent amendments or alterations made to the terms for repayment must be approved by the commission. Repayment of loans must be completed no more than 10 years from the time the loan is executed. If a transportation project is funded with federal funds, all federal regulations must be followed.

 

KEY: infrastructure assistance, Transportation Infrastructure Loan Fund

Date of Enactment or Last Substantive Amendment: 2008

Authorizing, and Implemented or Interpreted Law: 72-2-203