Second Substitute H.B. 158

Representative Wayne A. Harper proposes the following substitute bill:

1 AMENDMENTS TO TRANSPORTATION
2 PROVISIONS
3 2007 GENERAL SESSION
4 STATE OF UTAH
5 Chief Sponsor: Wayne A. Harper
6 Senate Sponsor: ____________
7
8 LONG TITLE
9 General Description:
10 This bill modifies the Motor Vehicles Code, the Sales and Use Tax Act, the Motor and
11 Special Fuel Tax Act, and the Transportation Code by amending provisions relating to
12 transportation.
13 Highlighted Provisions:
14 This bill:
15 . provides definitions;
16 . creates the Mountain View Corridor Fund;
17 . provides that the following shall be deposited in the Mountain View Corridor Fund:
18 . the local corridor preservation fee imposed in a county of the first class;
19 . 25% of the .25% Public Transit Tax revenue in a county of the first class when
20 certain bonds have been paid off; and
21 . 25% of the County Option Sales and Use Tax for Transportation tax revenue
22 imposed in a county of the first class that is designated for corridor preservation;
23 . provides that beginning on July 1, 2009, until December 31, 2018, the motor fuel
24 and special fuel tax rate shall be increased by 2 cents every two years in the odd
25 numbered year;

26 . provides procedures for implementing the motor fuel and special fuel tax rate
27 adjustment;
28 . grants the State Tax Commission rulemaking authority to establish rules to
29 implement the motor fuel and special fuel tax rate adjustment provisions;
30 . exempts the Mountain View Corridor Fund from spending limit provisions;
31 . authorizes issuance of a $300,000,000 general obligation bond to pay all or part of
32 the cost of acquiring and constructing a highway construction project within the
33 Mountain View Corridor;
34 . exempts the general obligation bond from certain debt limitation provisions;
35 . authorizes the Department of Transportation to spend revenues deposited in the
36 Transportation Corridor Preservation Revolving Loan Fund on administrative costs
37 for transportation corridor preservation;
38 . restricts the use of the Local Transportation Corridor Preservation Fund revenue to
39 preserve highway corridors that are rights-of-way for certain highways;
40 . requires the Division of Finance to transfer funds from the State Public
41 Transportation System Tax Highway Fund into the Mountain View Corridor Fund if
42 the fund monies are not required to pay certain costs for certain highway projects in
43 the current fiscal year;
44 . provides that local revenues from a county of the first class that are deposited in the
45 Mountain View Corridor Fund and used to pay for the purchase of rights-of-way or
46 construction costs for a project within the Mountain View Corridor shall be
47 considered a local matching contribution; and
48 . makes technical changes.
49 Monies Appropriated in this Bill:
50 None
51 Other Special Clauses:
52 This bill takes effect on July 1, 2007.
53 Utah Code Sections Affected:
54 AMENDS:
55 41-1a-1222, as enacted by Chapter 284, Laws of Utah 2005
56 59-12-502, as last amended by Chapters 253 and 329, Laws of Utah 2006

57 59-12-1703, as enacted by Chapter 1, Laws of Utah 2006, Fourth Special Session
58 59-13-201, as last amended by Chapter 237, Laws of Utah 2004
59 59-13-301, as last amended by Chapters 7 and 268, Laws of Utah 2003
60 59-13-304, as last amended by Chapter 1, Laws of Utah 2005, First Special Session
61 63-38c-103, as last amended by Chapter 1, Laws of Utah 2005, First Special Session
62 63-38c-402, as last amended by Chapters 308 and 318, Laws of Utah 2004
63 72-2-117, as last amended by Chapter 284, Laws of Utah 2005
64 72-2-117.5, as last amended by Chapter 1, Laws of Utah 2006, Fourth Special Session
65 72-2-121, as last amended by Chapter 1, Laws of Utah 2006, Fourth Special Session
66 ENACTS:
67 63B-16-101, Utah Code Annotated 1953
68 72-2-125, Utah Code Annotated 1953
69
70 Be it enacted by the Legislature of the state of Utah:
71 Section 1. Section 41-1a-1222 is amended to read:
72 41-1a-1222. Local option transportation corridor preservation fee -- Exemptions
73 -- Deposit -- County ordinance -- Notice.
74 (1) (a) (i) A county legislative body may impose a local option transportation corridor
75 preservation fee of up to $10 on each motor vehicle registration within the county.
76 (ii) A fee imposed under Subsection (1)(a)(i) shall be set in whole dollar increments.
77 (b) If imposed under Subsection (1)(a), at the time application is made for registration
78 or renewal of registration of a motor vehicle under this chapter, the applicant shall pay the local
79 option transportation corridor preservation fee established by the county legislative body.
80 (c) A motor vehicle that is exempt from the registration fee under Section 41-1a-1209
81 or Subsection 41-1a-419 (3) is also exempt from the local option transportation corridor
82 preservation fee required by this section.
83 (d) A commercial motor vehicle with an apportioned registration under Section
84 41-1a-301 is exempt from the local option transportation corridor preservation fee required by
85 this section.
86 (2) [The] (a) Except as provided in Subsection (2)(b), the revenue generated under this
87 section shall be:

88 [(a)] (i) deposited in the Local Transportation Corridor Preservation Fund created in
89 Section 72-2-117.5 ;
90 [(b)] (ii) credited to the county from which it is generated; and
91 [(c)] (iii) used and distributed in accordance with Section 72-2-117.5 .
92 (b) The revenue generated by a fee imposed under this section in a county of the first
93 class shall be:
94 (i) deposited in the Mountain View Corridor Fund created in Section 72-2-125 ; and
95 (ii) used in accordance with Section 72-2-125 .
96 (3) To impose or change the amount of a fee under this section, the county legislative
97 body shall pass an ordinance:
98 (a) approving the fee;
99 (b) setting the amount of the fee; and
100 (c) providing an effective date for the fee as provided in Subsection (4).
101 (4) (a) If a county legislative body enacts, changes, or repeals a fee under this section,
102 the enactment, change, or repeal shall take effect on July 1 if the commission receives notice
103 meeting the requirements of Subsection (4)(b) from the county prior to April 1.
104 (b) The notice described in Subsection (4)(a) shall:
105 (i) state that the county will enact, change, or repeal a fee under this part;
106 (ii) include a copy of the ordinance imposing the fee; and
107 (iii) if the county enacts or changes the fee under this section, state the amount of the
108 fee.
109 Section 2. Section 59-12-502 is amended to read:
110 59-12-502. Additional public transit tax for expanded system and fixed guideway
111 and interstate improvements -- Base -- Rate -- Voter approval.
112 (1) (a) (i) In addition to other sales and use taxes, including the public transit district tax
113 authorized by Section 59-12-501 , a county, city, or town within a transit district organized
114 under Title 17A, Chapter 2, Part 10, Utah Public Transit District Act, may impose a sales and
115 use tax of .25% on the transactions described in Subsection 59-12-103 (1) located within the
116 county, city, or town, to fund a fixed guideway and expanded public transportation system.
117 (ii) Notwithstanding Subsection (1)(a)(i), a county, city, or town may not impose a tax
118 under this section on:

119 (A) the sales and uses described in Section 59-12-104 to the extent the sales and uses
120 are exempt from taxation under Section 59-12-104 ; and
121 (B) any amounts paid or charged by a seller that collects a tax under Subsection
122 59-12-107 (1)(b).
123 (b) For purposes of this Subsection (1), the location of a transaction shall be
124 determined in accordance with Section 59-12-207 .
125 (c) (i) A county, city, or town may impose the tax under this section only if the
126 governing body of the county, city, or town submits, by resolution, the proposal to all the
127 qualified voters within the county, city, or town for approval at a general or special election
128 conducted in the manner provided by statute.
129 (ii) Notice of the election under Subsection (1)(c)(i) shall be given by the county, city,
130 or town governing body 15 days in advance in the manner prescribed by statute.
131 (2) If the majority of the voters voting in this election approve the proposal, it shall
132 become effective on the date provided by the county, city, or town governing body.
133 (3) (a) This section may not be construed to require an election in jurisdictions where
134 voters have previously approved a public transit sales or use tax.
135 (b) This section shall be construed to require an election to impose the sales and use
136 tax authorized by this section, including jurisdictions where the voters have previously
137 approved the sales and use tax authorized by Section 59-12-501 , but this section may not be
138 construed to affect the sales and use tax authorized by Section 59-12-501 .
139 (4) No public funds shall be spent to promote the required election.
140 (5) (a) Notwithstanding the designated use of revenues in Subsection (1), of the
141 revenues generated by the tax imposed under this section by any county of the first class:
142 (i) 75% shall be allocated to fund a fixed guideway and expanded public transportation
143 system; and
144 (ii) except as provided in Subsection (5)(b), 25% shall be allocated to fund new
145 construction, major renovations, and improvements to Interstate 15 and state highways within
146 the county and to pay any debt service and bond issuance costs related to those projects.
147 [(b) Notwithstanding the designated use of revenues in Subsection (1), beginning on
148 July 1, 2006, and ending on July 1, 2007, a county of the first class may expend an amount not
149 to exceed $3,500,000 of the revenues described in Subsection (5)(a)(ii) for expenses relating to

150 reconfiguring railroad curves within that county to reduce rail congestion.]
151 (b) (i) As used in this Subsection (5)(b), "Mountain View Corridor" means the land
152 area of Salt Lake County running from Interstate 80 south between SR-154 and SR-111 to
153 12600 South and then south and southeasterly to the northern portion of Utah County west of
154 SR-15.
155 (ii) Beginning on July 1, 2008 and except as provided in Subsection (5)(c), a bond may
156 not be issued to fund new construction, major renovations, and improvements to Interstate 15
157 and state highways within the county if the bond is intended to be paid from revenues allocated
158 under Subsection (5)(a)(ii).
159 (iii) When all bonds incurred before July 1, 2008 for new construction, major
160 renovations, and improvements to Interstate 15 and state highways within the county which
161 were intended to be paid from revenues allocated under Subsection (5)(a)(ii) have been paid
162 off, the revenues generated by the tax imposed under this section that are allocated under
163 Subsection (5)(a)(ii) shall be deposited in the Mountain View Corridor Fund created in Section
164 72-2-125 .
165 (iv) The Department of Transportation shall notify the commission when all bonds that
166 are intended to be paid from revenues allocated under Subsection (5)(a)(ii) have been paid off.
167 (6) A county of the first class may, through an interlocal agreement, authorize the
168 deposit or transfer of the portion of the revenues described in Subsection (5)(a)(ii) to the Public
169 Transportation System Tax Highway Fund created in Section 72-2-121 .
170 Section 3. Section 59-12-1703 is amended to read:
171 59-12-1703. Opinion question election -- Base -- Rate -- Imposition of tax -- Use of
172 tax revenues -- Administration, collection, and enforcement of tax by commission --
173 Administrative fee -- Enactment or repeal of tax -- Annexation -- Notice.
174 (1) (a) Beginning on or after April 1, 2007, and subject to the other provisions of this
175 part, a county legislative body may impose a sales and use tax of up to .25%:
176 (i) on the transactions:
177 (A) described in Subsection 59-12-103 (1); and
178 (B) within the county, including the cities and towns within the county;
179 (ii) for the purposes described in Subsection (4); and
180 (iii) in addition to any other sales and use tax authorized under this chapter.

181 (b) Notwithstanding Subsection (1)(a)(i), a county legislative body may not impose a
182 tax under this section on:
183 (i) the sales and uses described in Section 59-12-104 to the extent the sales and uses
184 are exempt from taxation under Section 59-12-104 ; or
185 (ii) any amounts paid or charged by a seller that collects a tax under Subsection
186 59-12-107 (1)(b).
187 (c) For purposes of this Subsection (1), the location of a transaction shall be
188 determined in accordance with Section 59-12-207 .
189 (2) (a) Except as provided in Subsection (2)(d), before imposing a tax under this part, a
190 county legislative body shall:
191 (i) obtain approval from a majority of the members of the county legislative body to
192 impose the tax; and
193 (ii) submit an opinion question to the county's registered voters voting on the
194 imposition of the tax so that each registered voter has the opportunity to express the registered
195 voter's opinion on whether a tax should be imposed under this part.
196 (b) (i) In a county of the first or second class, the opinion question required by
197 Subsection (2)(a)(ii) shall state the following:
198 "Shall (insert the name of the county), Utah, be authorized to impose a (insert the
199 amount of the sales and use tax up to .25%) sales and use tax for corridor preservation,
200 congestion mitigation, or to expand capacity for regionally significant transportation facilities?"
201 (ii) In a county of the third, fourth, fifth, or sixth class, the opinion question required by
202 Subsection (2)(a)(ii) shall state the following:
203 "Shall (insert the name of the county), Utah, be authorized to impose a (insert the
204 amount of the sales and use tax up to .25%) sales and use tax for transportation projects,
205 corridor preservation, congestion mitigation, or to expand capacity for regionally significant
206 transportation facilities?"
207 (c) Except as provided in Subsection (2)(d), the election required by this Subsection (2)
208 shall be held:
209 (i) at a regular general election conducted in accordance with the procedures and
210 requirements of Title 20A, Election Code, governing regular elections; or
211 (ii) at a special election called by the county legislative body that is:

212 (A) held only on the date of a municipal general election as provided in Subsection
213 20A-1-202 (1); and
214 (B) authorized in accordance with the procedures and requirements of Section
215 20A-1-203 .
216 (d) Notwithstanding Subsection (2)(a) or (c), if a county seeks to impose a tax under
217 this part on or after April 1, 2007, but on or before December 31, 2007, the county legislative
218 body shall:
219 (i) obtain the approval required by Subsection (2)(a)(i) within five calendar days of
220 September 20, 2006;
221 (ii) direct the county clerk to submit the opinion question required by Subsection
222 (2)(a)(ii) during the November 7, 2006 general election; and
223 (iii) hold the election required by this section on November 7, 2006.
224 (3) If a county legislative body determines that a majority of the county's registered
225 voters voting on the imposition of the tax have voted in favor of the imposition of the tax in
226 accordance with Subsection (2), the county legislative body shall impose the tax in accordance
227 with this section.
228 (4) (a) Subject to Subsections (5) and (6), the revenues generated by a tax under this
229 part may only be expended for:
230 (i) a project or service:
231 (A) relating to a regionally significant transportation facility;
232 (B) for the portion of the project or service that is performed within the county;
233 (C) for new capacity or congestion mitigation if the project or service is performed
234 within a county:
235 (I) of the first class;
236 (II) of the second class; or
237 (III) that is part of an area metropolitan planning organization;
238 (D) (I) if the project or service is a principal arterial highway or a minor arterial
239 highway in a county of the first or second class, that is part of the county and municipal master
240 plan and part of:
241 (Aa) the statewide long-range plan; or
242 (Bb) the regional transportation plan of the area metropolitan planning organization if a

243 metropolitan planning organization exists for the area; or
244 (II) if the project or service is for a fixed guideway or an airport, that is part of the
245 regional transportation plan of the area metropolitan planning organization if a metropolitan
246 planning organization exists for the area; and
247 (E) that is on a priority list:
248 (I) created by the county's council of governments in accordance with Subsection (5);
249 and
250 (II) approved by the county legislative body in accordance with Subsection (6);
251 (ii) corridor preservation for a project described in Subsection (4)(a)(i) as provided in
252 Subsection (7)(b); or
253 (iii) any debt service and bond issuance costs related to a project described in
254 Subsection (4)(a)(i) or (ii).
255 (b) In a county of the first or second class, a regionally significant transportation
256 facility project or service described in Subsection (4)(a)(i)(A) must have a funded year priority
257 designation on a Statewide Transportation Improvement Program and Transportation
258 Improvement Program if the project or service described in Subsection (4)(a)(i) is:
259 (i) a principal arterial highway as defined in Section 72-4-102.5 ;
260 (ii) a minor arterial highway as defined in Section 72-4-102.5 ; or
261 (iii) a major collector highway:
262 (A) as defined in Section 72-4-102.5 ; and
263 (B) in a rural area.
264 (c) Notwithstanding the designated use of revenues in Subsection (4)(a), of the
265 revenues generated by the tax imposed under this section by any county of the first or second
266 class, 25% or more shall be expended for the purpose described in Subsection (4)(a)(ii).
267 (d) For purposes of this Subsection (4), the revenues a county will receive from a tax
268 under this part do not include amounts retained by the commission in accordance with
269 Subsection (8).
270 (5) (a) The county's council of governments shall create a priority list of regionally
271 significant transportation facility projects described in Subsection (4)(a) using the process
272 described in Subsection (5)(b) and present the priority list to the county's legislative body for
273 approval as described in Subsection (6).

274 (b) Subject to Sections 59-12-1704 and 59-12-1705 , a council of governments shall
275 establish a council of governments' endorsement process which includes prioritization and
276 application procedures for use of the revenues a county will receive from a tax under this part.
277 (6) (a) The council of governments shall submit the priority list described in
278 Subsection (5) to the county's legislative body and obtain approval of the list from a majority of
279 the members of the county legislative body.
280 (b) A county's council of governments may only submit one priority list per calendar
281 year.
282 (c) A county legislative body may only consider and approve one priority list per
283 calendar year.
284 (7) (a) (i) Except as provided in Subsections (7)(a)(ii) and (7)(b), revenues described in
285 Subsection (4) shall be transmitted:
286 (A) by the commission;
287 (B) to the county;
288 (C) monthly; and
289 (D) by electronic funds transfer.
290 (ii) A county may request that the commission transfer a portion of the revenues
291 described in Subsection (4):
292 (A) directly to a public transit district:
293 (I) organized under Title 17A, Chapter 2, Part 10, Utah Public Transit District Act; and
294 (II) designated by the county; and
295 (B) by providing written notice to the commission:
296 (I) requesting the revenues to be transferred directly to a public transit district as
297 provided in Subsection (7)(a)(ii)(A); and
298 (II) designating the public transit district to which the revenues are requested to be
299 transferred.
300 (b) (i) Except as provided in Subsection (7)(b)(ii), revenues generated by a tax under
301 this part that are allocated for a purpose described in Subsection (4)(a)(ii) shall be:
302 (A) deposited in or transferred to the Local Transportation Corridor Preservation Fund
303 created by Section 72-2-117.5 ; and
304 (B) expended as provided in Section 72-2-117.5 .

305 (ii) In a county of the first class, revenues generated by a tax under this part that are
306 allocated for a purpose described in Subsection (4)(a)(ii) shall be:
307 (A) deposited in or transferred to the [Public Transportation System Tax Highway]
308 Mountain View Corridor Fund created by Section [ 72-2-121 ] 72-2-125 ; and
309 (B) expended as provided in Section [ 72-2-121 ] 72-2-125 .
310 (8) (a) (i) Except as provided in Subsection (8)(b), the tax authorized under this part
311 shall be administered, collected, and enforced in accordance with:
312 (A) the same procedures used to administer, collect, and enforce the tax under:
313 (I) Part 1, Tax Collection; or
314 (II) Part 2, Local Sales and Use Tax Act; and
315 (B) Chapter 1, General Taxation Policies.
316 (ii) A tax under this part is not subject to Subsections 59-12-205 (2) through (7).
317 (b) (i) The commission may retain an amount of tax collected under this part of not to
318 exceed the lesser of:
319 (A) 1.5%; or
320 (B) an amount equal to the cost to the commission of administering this part.
321 (ii) Any amount the commission retains under Subsection (8)(b)(i) shall be:
322 (A) placed in the Sales and Use Tax Administrative Fees Account; and
323 (B) used as provided in Subsection 59-12-206 (2).
324 (9) (a) (i) Except as provided in Subsection (9)(b) or (c), if, on or after April 1, 2007, a
325 county enacts or repeals a tax or changes the rate of a tax under this part, the enactment, repeal,
326 or change shall take effect:
327 (A) on the first day of a calendar quarter; and
328 (B) after a 90-day period beginning on the date the commission receives notice meeting
329 the requirements of Subsection (9)(a)(ii) from the county.
330 (ii) The notice described in Subsection (9)(a)(i)(B) shall state:
331 (A) that the county will enact, repeal, or change the rate of a tax under this part;
332 (B) the statutory authority for the tax described in Subsection (9)(a)(ii)(A);
333 (C) the effective date of the tax described in Subsection (9)(a)(ii)(A); and
334 (D) if the county enacts the tax or changes the rate of the tax described in Subsection
335 (9)(a)(ii)(A), the rate of the tax.

336 (b) (i) For a transaction described in Subsection (9)(b)(iii), if the billing period for the
337 transaction begins before the effective date of the enactment of the tax or tax rate increase
338 under Subsection (1), the enactment of a tax or a tax rate increase shall take effect on the first
339 day of the first billing period that begins after the effective date of the enactment of the tax or
340 the tax rate increase.
341 (ii) For a transaction described in Subsection (9)(b)(iii), if the billing period for the
342 transaction begins before the effective date of the repeal of the tax or the tax rate decrease
343 imposed under Subsection (1), the repeal of a tax or a tax rate decrease shall take effect on the
344 first day of the last billing period that began before the effective date of the repeal of the tax or
345 the tax rate decrease.
346 (iii) Subsections (9)(b)(i) and (ii) apply to transactions subject to a tax under:
347 (A) Subsection 59-12-103 (1)(b);
348 (B) Subsection 59-12-103 (1)(c);
349 (C) Subsection 59-12-103 (1)(d);
350 (D) Subsection 59-12-103 (1)(e);
351 (E) Subsection 59-12-103 (1)(f);
352 (F) Subsection 59-12-103 (1)(g);
353 (G) Subsection 59-12-103 (1)(h);
354 (H) Subsection 59-12-103 (1)(i);
355 (I) Subsection 59-12-103 (1)(j); or
356 (J) Subsection 59-12-103 (1)(k).
357 (c) (i) If a tax due under this chapter on a catalogue sale is computed on the basis of
358 sales and use tax rates published in the catalogue, an enactment, repeal, or change in the rate of
359 a tax described in Subsection (9)(a)(i) takes effect:
360 (A) on the first day of a calendar quarter; and
361 (B) beginning 60 days after the effective date of the enactment, repeal, or change in the
362 rate of the tax under Subsection (9)(a)(i).
363 (ii) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act,
364 the commission may by rule define the term "catalogue sale."
365 (d) (i) Except as provided in Subsection (9)(e) or (f), if, for an annexation that occurs
366 on or after April 1, 2007, the annexation will result in the enactment, repeal, or change in the

367 rate of a tax under this part for an annexing area, the enactment, repeal, or change shall take
368 effect:
369 (A) on the first day of a calendar quarter; and
370 (B) after a 90-day period beginning on the date the commission receives notice meeting
371 the requirements of Subsection (9)(d)(ii) from the county that annexes the annexing area.
372 (ii) The notice described in Subsection (9)(d)(i)(B) shall state:
373 (A) that the annexation described in Subsection (9)(d)(i)(B) will result in an enactment,
374 repeal, or change in the rate of a tax under this part for the annexing area;
375 (B) the statutory authority for the tax described in Subsection (9)(d)(ii)(A);
376 (C) the effective date of the tax described in Subsection (9)(d)(ii)(A); and
377 (D) if the county enacts the tax or changes the rate of the tax described in Subsection
378 (9)(d)(ii)(A), the rate of the tax.
379 (e) (i) For a transaction described in Subsection (9)(e)(iii), if the billing period for the
380 transaction begins before the effective date of the enactment of the tax or a tax rate increase
381 under Subsection (1), the enactment of a tax or a tax rate increase shall take effect on the first
382 day of the first billing period that begins after the effective date of the enactment of the tax or
383 the tax rate increase.
384 (ii) For a transaction described in Subsection (9)(e)(iii), if the billing period for the
385 transaction begins before the effective date of the repeal of the tax or the tax rate decrease
386 imposed under Subsection (1), the repeal of a tax or a tax rate decrease shall take effect on the
387 first day of the last billing period that began before the effective date of the repeal of the tax or
388 the tax rate decrease.
389 (iii) Subsections (9)(e)(i) and (ii) apply to transactions subject to a tax under:
390 (A) Subsection 59-12-103 (1)(b);
391 (B) Subsection 59-12-103 (1)(c);
392 (C) Subsection 59-12-103 (1)(d);
393 (D) Subsection 59-12-103 (1)(e);
394 (E) Subsection 59-12-103 (1)(f);
395 (F) Subsection 59-12-103 (1)(g);
396 (G) Subsection 59-12-103 (1)(h);
397 (H) Subsection 59-12-103 (1)(i);

398 (I) Subsection 59-12-103 (1)(j); or
399 (J) Subsection 59-12-103 (1)(k).
400 (f) (i) If a tax due under this chapter on a catalogue sale is computed on the basis of
401 sales and use tax rates published in the catalogue, an enactment, repeal, or change in the rate of
402 a tax described in Subsection (9)(d)(i) takes effect:
403 (A) on the first day of a calendar quarter; and
404 (B) beginning 60 days after the effective date of the enactment, repeal, or change in the
405 rate under Subsection (9)(d)(i).
406 (ii) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act,
407 the commission may by rule define the term "catalogue sale."
408 Section 4. Section 59-13-201 is amended to read:
409 59-13-201. Rate -- Tax basis -- Exemptions -- Revenue deposited in the
410 Transportation Fund -- Restricted account for boating uses -- Refunds -- Reduction of tax
411 in limited circumstances.
412 (1) (a) Subject to the provisions of this section, a tax is imposed at the rate of 24-1/2
413 cents per gallon upon all motor fuel that is sold, used, or received for sale or used in this state.
414 (b) In lieu of the tax imposed under Subsection (1)(a) and subject to the provisions of
415 this section, a tax is imposed at the rate of 3/19 of the rate imposed under Subsection (1)(a),
416 rounded up to the nearest penny, upon all motor fuels that meet the definition of clean fuel in
417 Section 59-13-102 and are sold, used, or received for sale or use in this state.
418 (c) (i) Beginning on or after January 1, 2009, and until December 31, 2018, the
419 commission shall, every two years in the odd numbered year, increase the rate imposed under
420 Subsection (1)(a) by 2 cents.
421 (ii) The adjusted fuel tax rate shall take effect on January 1 in a year that the fuel tax
422 rate is required to be adjusted in accordance with Subsection (1)(c)(i).
423 (iii) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act,
424 the commission may make rules implementing the provisions of this Subsection (1)(c).
425 (2) Any increase or decrease in tax rate applies to motor fuel that is imported to the
426 state or sold at refineries in the state on or after the effective date of the rate change.
427 (3) (a) No motor fuel tax is imposed upon:
428 (i) motor fuel that is brought into and sold in this state in original packages as purely

429 interstate commerce sales;
430 (ii) motor fuel that is exported from this state if proof of actual exportation on forms
431 prescribed by the commission is made within 180 days after exportation;
432 (iii) motor fuel or components of motor fuel that is sold and used in this state and
433 distilled from coal, oil shale, rock asphalt, bituminous sand, or solid hydrocarbons located in
434 this state; or
435 (iv) motor fuel that is sold to the United States government, this state, or the political
436 subdivisions of this state.
437 (b) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
438 commission shall make rules governing the procedures for administering the tax exemption
439 provided under Subsection (3)(a)(iv).
440 (4) The commission may either collect no tax on motor fuel exported from the state or,
441 upon application, refund the tax paid.
442 (5) (a) All revenue received by the commission under this part shall be deposited daily
443 with the state treasurer and credited to the Transportation Fund.
444 (b) An appropriation from the Transportation Fund shall be made to the commission to
445 cover expenses incurred in the administration and enforcement of this part and the collection of
446 the motor fuel tax.
447 (6) (a) The commission shall determine what amount of motor fuel tax revenue is
448 received from the sale or use of motor fuel used in motorboats registered under the provisions
449 of the State Boating Act, and this amount shall be deposited in a restricted revenue account in
450 the General Fund of the state.
451 (b) The funds from this account shall be used for the construction, improvement,
452 operation, and maintenance of state-owned boating facilities and for the payment of the costs
453 and expenses of the Division of Parks and Recreation in administering and enforcing the State
454 Boating Act.
455 (7) (a) The United States government or any of its instrumentalities, this state, or a
456 political subdivision of this state that has purchased motor fuel from a licensed distributor or
457 from a retail dealer of motor fuel and has paid the tax on the motor fuel as provided in this
458 section is entitled to a refund of the tax and may file with the commission for a quarterly
459 refund.

460 (b) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
461 commission shall make rules governing the application and refund provided for in Subsection
462 (7)(a).
463 (8) (a) The commission shall refund annually into the Off-Highway Vehicle Account in
464 the General Fund an amount equal to the lesser of the following:
465 (i) .5% of the motor fuel tax revenues collected under this section; or
466 (ii) $1,050,000.
467 (b) This amount shall be used as provided in Section 41-22-19 .
468 (c) This Subsection (8) sunsets on July 1, 2010.
469 (9) (a) Beginning on April 1, 2001, a tax imposed under this section on motor fuel that
470 is sold, used, or received for sale or use in this state is reduced to the extent provided in
471 Subsection (9)(b) if:
472 (i) a tax imposed on the basis of the sale, use, or receipt for sale or use of the motor
473 fuel is paid to the Navajo Nation;
474 (ii) the tax described in Subsection (9)(a)(i) is imposed without regard to whether or
475 not the person required to pay the tax is an enrolled member of the Navajo Nation; and
476 (iii) the commission and the Navajo Nation execute and maintain an agreement as
477 provided in this Subsection (9) for the administration of the reduction of tax.
478 (b) (i) If but for Subsection (9)(a) the motor fuel is subject to a tax imposed by this
479 section:
480 (A) the state shall be paid the difference described in Subsection (9)(b)(ii) if that
481 difference is greater than $0; and
482 (B) a person may not require the state to provide a refund, a credit, or similar tax relief
483 if the difference described in Subsection (9)(b)(ii) is less than or equal to $0.
484 (ii) The difference described in Subsection (9)(b)(i) is equal to the difference between:
485 (A) the amount of tax imposed on the motor fuel by this section; less
486 (B) the tax imposed and collected by the Navajo Nation on the motor fuel.
487 (c) For purposes of Subsections (9)(a) and (b), the tax paid to the Navajo Nation under
488 a tax imposed by the Navajo Nation on the basis of the sale, use, or receipt for sale or use of
489 motor fuel does not include any interest or penalties a taxpayer may be required to pay to the
490 Navajo Nation.

491 (d) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
492 commission shall make rules governing the procedures for administering the reduction of tax
493 provided under this Subsection (9).
494 (e) The agreement required under Subsection (9)(a):
495 (i) may not:
496 (A) authorize the state to impose a tax in addition to a tax imposed under this chapter;
497 (B) provide a reduction of taxes greater than or different from the reduction described
498 in this Subsection (9); or
499 (C) affect the power of the state to establish rates of taxation;
500 (ii) shall:
501 (A) be in writing;
502 (B) be signed by:
503 (I) the chair of the commission or the chair's designee; and
504 (II) a person designated by the Navajo Nation that may bind the Navajo Nation;
505 (C) be conditioned on obtaining any approval required by federal law;
506 (D) state the effective date of the agreement; and
507 (E) state any accommodation the Navajo Nation makes related to the construction and
508 maintenance of state highways and other infrastructure within the Utah portion of the Navajo
509 Nation; and
510 (iii) may:
511 (A) notwithstanding Section 59-1-403 , authorize the commission to disclose to the
512 Navajo Nation information that is:
513 (I) contained in a document filed with the commission; and
514 (II) related to the tax imposed under this section;
515 (B) provide for maintaining records by the commission or the Navajo Nation; or
516 (C) provide for inspections or audits of distributors, carriers, or retailers located or
517 doing business within the Utah portion of the Navajo Nation.
518 (f) (i) If, on or after April 1, 2001, the Navajo Nation changes the tax rate of a tax
519 imposed on motor fuel, any change in the reduction of taxes under this Subsection (9) as a
520 result of the change in the tax rate is not effective until the first day of the calendar quarter after
521 a 60-day period beginning on the date the commission receives notice:

522 (A) from the Navajo Nation; and
523 (B) meeting the requirements of Subsection (9)(f)(ii).
524 (ii) The notice described in Subsection (9)(f)(i) shall state:
525 (A) that the Navajo Nation has changed or will change the tax rate of a tax imposed on
526 motor fuel;
527 (B) the effective date of the rate change of the tax described in Subsection (9)(f)(ii)(A);
528 and
529 (C) the new rate of the tax described in Subsection (9)(f)(ii)(A).
530 (g) If the agreement required by Subsection (9)(a) terminates, a reduction of tax is not
531 permitted under this Subsection (9) beginning on the first day of the calendar quarter after a
532 30-day period beginning on the day the agreement terminates.
533 (h) If there is a conflict between this Subsection (9) and the agreement required by
534 Subsection (9)(a), this Subsection (9) governs.
535 Section 5. Section 59-13-301 is amended to read:
536 59-13-301. Tax basis -- Rate -- Exemptions -- Revenue deposited with treasurer
537 and credited to Transportation Fund -- Reduction of tax in limited circumstances.
538 (1) (a) Except as provided in Subsections (2), (3), and (11) and Section 59-13-304 , a
539 tax is imposed at the same rate imposed under Subsection 59-13-201 (1)[(a)] on the:
540 (i) removal of undyed diesel fuel from any refinery;
541 (ii) removal of undyed diesel fuel from any terminal;
542 (iii) entry into the state of any undyed diesel fuel for consumption, use, sale, or
543 warehousing;
544 (iv) sale of undyed diesel fuel to any person who is not registered as a supplier under
545 this part unless the tax has been collected under this section;
546 (v) any untaxed special fuel blended with undyed diesel fuel; or
547 (vi) use of untaxed special fuel, other than a clean special fuel.
548 (b) The tax imposed under this section shall only be imposed once upon any special
549 fuel.
550 (2) (a) No special fuel tax is imposed or collected upon dyed diesel fuel which:
551 (i) is sold or used for any purpose other than to operate or propel a motor vehicle upon
552 the public highways of the state, but this exemption applies only in those cases where the

553 purchasers or the users of special fuel establish to the satisfaction of the commission that the
554 special fuel was used for purposes other than to operate a motor vehicle upon the public
555 highways of the state; or
556 (ii) is sold to this state or any of its political subdivisions.
557 (b) No special fuel tax is imposed on undyed diesel fuel which:
558 (i) is sold to the United States government or any of its instrumentalities or to this state
559 or any of its political subdivisions;
560 (ii) is exported from this state if proof of actual exportation on forms prescribed by the
561 commission is made within 180 days after exportation;
562 (iii) is used in a vehicle off-highway;
563 (iv) is used to operate a power take-off unit of a vehicle;
564 (v) is used for off-highway agricultural uses;
565 (vi) is used in a separately fueled engine on a vehicle that does not propel the vehicle
566 upon the highways of the state; or
567 (vii) is used in machinery and equipment not registered and not required to be
568 registered for highway use.
569 (3) No tax is imposed or collected on special fuel if it is:
570 (a) purchased for business use in machinery and equipment not registered and not
571 required to be registered for highway use; and
572 (b) used pursuant to the conditions of a state implementation plan approved under Title
573 19, Chapter 2, Air Conservation Act.
574 (4) Upon request of a buyer meeting the requirements under Subsection (3), the
575 Division of Air Quality shall issue an exemption certificate that may be shown to a seller.
576 (5) The special fuel tax shall be paid by the supplier.
577 (6) (a) The special fuel tax shall be paid by every user who is required by Sections
578 59-13-303 and 59-13-305 to obtain a special fuel user permit and file special fuel tax reports.
579 (b) The user shall receive a refundable credit for special fuel taxes paid on purchases
580 which are delivered into vehicles and for which special fuel tax liability is reported.
581 (7) (a) Except as provided under Subsections (7)(b) and (c), all revenue received by the
582 commission from taxes and license fees under this part shall be deposited daily with the state
583 treasurer and credited to the Transportation Fund.

584 (b) An appropriation from the Transportation Fund shall be made to the commission to
585 cover expenses incurred in the administration and enforcement of this part and the collection of
586 the special fuel tax.
587 (c) Five dollars of each special fuel user trip permit fee paid under Section 59-13-303
588 may be used by the commission as a dedicated credit to cover the costs of electronic
589 credentialing as provided in Section 41-1a-303 .
590 (8) The commission may either collect no tax on special fuel exported from the state
591 or, upon application, refund the tax paid.
592 (9) (a) The United States government or any of its instrumentalities, this state, or a
593 political subdivision of this state that has purchased special fuel from a supplier or from a retail
594 dealer of special fuel and has paid the tax on the special fuel as provided in this section is
595 entitled to a refund of the tax and may file with the commission for a quarterly refund in a
596 manner prescribed by the commission.
597 (b) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
598 commission shall make rules governing the application and refund provided for in Subsection
599 (9)(a).
600 (10) (a) The purchaser shall pay the tax on diesel fuel purchased for uses under
601 Subsections (2)(b)(i), (iii), (iv), (v), (vi), and (vii) and apply for a refund for the tax paid as
602 provided in Subsection (9) and this Subsection (10).
603 (b) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
604 commission shall make rules governing the application and refund for off-highway and
605 nonhighway uses provided under Subsections (2)(b)(iii), (iv), (vi), and (vii).
606 (c) A refund of tax paid under this part on diesel fuel used for nonhighway agricultural
607 uses shall be made in accordance with the tax return procedures under Section 59-13-202 .
608 (11) (a) Beginning on April 1, 2001, a tax imposed under this section on special fuel is
609 reduced to the extent provided in Subsection (11)(b) if:
610 (i) the Navajo Nation imposes a tax on the special fuel;
611 (ii) the tax described in Subsection (11)(a)(i) is imposed without regard to whether the
612 person required to pay the tax is an enrolled member of the Navajo Nation; and
613 (iii) the commission and the Navajo Nation execute and maintain an agreement as
614 provided in this Subsection (11) for the administration of the reduction of tax.

615 (b) (i) If but for Subsection (11)(a) the special fuel is subject to a tax imposed by this
616 section:
617 (A) the state shall be paid the difference described in Subsection (11)(b)(ii) if that
618 difference is greater than $0; and
619 (B) a person may not require the state to provide a refund, a credit, or similar tax relief
620 if the difference described in Subsection (11)(b)(ii) is less than or equal to $0.
621 (ii) The difference described in Subsection (11)(b)(i) is equal to the difference
622 between:
623 (A) the amount of tax imposed on the special fuel by this section; less
624 (B) the tax imposed and collected by the Navajo Nation on the special fuel.
625 (c) For purposes of Subsections (11)(a) and (b), the tax paid to the Navajo Nation on
626 the special fuel does not include any interest or penalties a taxpayer may be required to pay to
627 the Navajo Nation.
628 (d) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
629 commission shall make rules governing the procedures for administering the reduction of tax
630 provided under this Subsection (11).
631 (e) The agreement required under Subsection (11)(a):
632 (i) may not:
633 (A) authorize the state to impose a tax in addition to a tax imposed under this chapter;
634 (B) provide a reduction of taxes greater than or different from the reduction described
635 in this Subsection (11); or
636 (C) affect the power of the state to establish rates of taxation;
637 (ii) shall:
638 (A) be in writing;
639 (B) be signed by:
640 (I) the chair of the commission or the chair's designee; and
641 (II) a person designated by the Navajo Nation that may bind the Navajo Nation;
642 (C) be conditioned on obtaining any approval required by federal law;
643 (D) state the effective date of the agreement; and
644 (E) state any accommodation the Navajo Nation makes related to the construction and
645 maintenance of state highways and other infrastructure within the Utah portion of the Navajo

646 Nation; and
647 (iii) may:
648 (A) notwithstanding Section 59-1-403 , authorize the commission to disclose to the
649 Navajo Nation information that is:
650 (I) contained in a document filed with the commission; and
651 (II) related to the tax imposed under this section;
652 (B) provide for maintaining records by the commission or the Navajo Nation; or
653 (C) provide for inspections or audits of suppliers, distributors, carriers, or retailers
654 located or doing business within the Utah portion of the Navajo Nation.
655 (f) (i) If, on or after April 1, 2001, the Navajo Nation changes the tax rate of a tax
656 imposed on special fuel, any change in the amount of the reduction of taxes under this
657 Subsection (11) as a result of the change in the tax rate is not effective until the first day of the
658 calendar quarter after a 60-day period beginning on the date the commission receives notice:
659 (A) from the Navajo Nation; and
660 (B) meeting the requirements of Subsection (11)(f)(ii).
661 (ii) The notice described in Subsection (11)(f)(i) shall state:
662 (A) that the Navajo Nation has changed or will change the tax rate of a tax imposed on
663 special fuel;
664 (B) the effective date of the rate change of the tax described in Subsection
665 (11)(f)(ii)(A); and
666 (C) the new rate of the tax described in Subsection (11)(f)(ii)(A).
667 (g) If the agreement required by Subsection (11)(a) terminates, a reduction of tax is not
668 permitted under this Subsection (11) beginning on the first day of the calendar quarter after a
669 30-day period beginning on the day the agreement terminates.
670 (h) If there is a conflict between this Subsection (11) and the agreement required by
671 Subsection (11)(a), this Subsection (11) governs.
672 Section 6. Section 59-13-304 is amended to read:
673 59-13-304. Exemptions from Special Fuel Tax -- Clean Special Fuel Tax --
674 Certificate required -- Fees for certificates -- Inspection of vehicles -- Exemptions.
675 (1) (a) Except as provided in Subsection (4), a user of special fuel who owns a vehicle
676 powered by a clean special fuel as defined under Section 59-13-102 shall pay a clean special

677 fuel tax as provided under this section for use of clean special fuel.
678 (b) A user of special fuel who qualifies for the clean special fuel tax shall annually
679 purchase from the commission a clean special fuel tax certificate for each vehicle owned or
680 leased that is powered by a clean special fuel.
681 (c) Clean special fuel tax certificates are provided to encourage the use of clean fuels to
682 reduce air pollution.
683 (2) (a) The fee for a clean special fuel tax certificate is:
684 (i) 70/.19 of the tax per gallon imposed under Subsection 59-13-201 (1)[(a)], rounded
685 up to the nearest dollar, for qualified motor vehicles as defined under Section 59-13-102 ; and
686 (ii) 36/.19 of the tax per gallon imposed under Subsection 59-13-201 (1)[(a)], rounded
687 up to the nearest dollar, for other vehicles.
688 (b) The commission may require each vehicle to be inspected for safe operation before
689 issuing the certificate.
690 (c) Each vehicle shall be equipped with an approved and properly installed carburetion
691 system if it is powered by a fuel that is gaseous at standard atmospheric conditions.
692 (3) (a) Beginning January 1, 2001 through December 31, 2010, there is imposed a
693 surcharge of $35 on each clean special fuel tax certificate issued under this section.
694 (b) (i) Until Subsection (3)(b)(ii) applies, surcharges imposed under Subsection (3)(a)
695 shall be deposited into the Centennial Highway Fund Restricted Account created under Section
696 72-2-118 .
697 (ii) When the highway general obligation bonds have been paid off and the highway
698 projects completed that are intended to be paid from revenues deposited in the Centennial
699 Highway Fund Restricted Account as determined by the Executive Appropriations Committee
700 under Subsection 72-2-118 (6)(d), the surcharge imposed under Subsection (3)(a) shall be
701 deposited into the Transportation Investment Fund of 2005 created by Section 72-2-124 .
702 (4) A governmental entity identified in Subsection 59-13-301 (9) that owns or leases a
703 vehicle powered by a special fuel that qualifies as a clean special fuel is exempt from the clean
704 special fuel tax imposed under this section.
705 Section 7. Section 63-38c-103 is amended to read:
706 63-38c-103. Definitions.
707 As used in this chapter:

708 (1) (a) "Appropriations" means actual unrestricted capital and operating appropriations
709 from unrestricted General Fund sources and from non-Uniform School Fund income tax
710 revenues as presented in the governor's executive budgets.
711 (b) "Appropriation" includes appropriations that are contingent upon available
712 surpluses in the General Fund.
713 (c) "Appropriations" does not mean:
714 (i) debt service expenditures;
715 (ii) emergency expenditures;
716 (iii) expenditures from all other fund or subfund sources presented in the executive
717 budgets;
718 (iv) transfers into, or appropriations made to, the General Fund Budget Reserve
719 Account established in Section 63-38-2.5 ;
720 (v) transfers into, or appropriations made to, the Education Budget Reserve Account
721 established in Section 63-38-2.6 ;
722 (vi) monies appropriated to fund the total one-time project costs for the construction of
723 capital developments as defined in Section 63A-5-104 ;
724 (vii) appropriations made to the Centennial Highway Fund Restricted Account created
725 by Section 72-2-118 ; [or]
726 (viii) appropriations made to the Transportation Investment Fund of 2005 created by
727 Section 72-2-124 [.]; or
728 (ix) appropriations made to the Mountain View Corridor Fund created by Section
729 72-2-125 .
730 (2) "Base year real per capita appropriations" means the result obtained for the state by
731 dividing the fiscal year 1985 actual appropriations of the state less debt monies by:
732 (a) the state's July 1, 1983 population; and
733 (b) the fiscal year 1983 inflation index divided by 100.
734 (3) "Calendar year" means the time period beginning on January 1 of any given year
735 and ending on December 31 of the same year.
736 (4) "Fiscal emergency" means an extraordinary occurrence requiring immediate
737 expenditures and includes the settlement under Chapter 4, Laws of Utah 1988, Fourth Special
738 Session.

739 (5) "Fiscal year" means the time period beginning on July 1 of any given year and
740 ending on June 30 of the subsequent year.
741 (6) "Fiscal year 1985 actual base year appropriations" means fiscal year 1985 actual
742 capital and operations appropriations from General Fund and non-Uniform School Fund
743 income tax revenue sources, less debt monies.
744 (7) "Inflation index" means the change in the general price level of goods and services
745 as measured by the Gross National Product Implicit Price Deflator of the Bureau of Economic
746 Analysis, U.S. Department of Commerce calculated as provided in Section 63-38c-202 .
747 (8) (a) "Maximum allowable appropriations limit" means the appropriations that could
748 be, or could have been, spent in any given year under the limitations of this chapter.
749 (b) "Maximum allowable appropriations limit" does not mean actual appropriations
750 spent or actual expenditures.
751 (9) "Most recent fiscal year's inflation index" means the fiscal year inflation index two
752 fiscal years previous to the fiscal year for which the maximum allowable inflation and
753 population appropriations limit is being computed under this chapter.
754 (10) "Most recent fiscal year's population" means the fiscal year population two fiscal
755 years previous to the fiscal year for which the maximum allowable inflation and population
756 appropriations limit is being computed under this chapter.
757 (11) "Population" means the number of residents of the state as of July 1 of each year
758 as calculated by the Governor's Office of Planning and Budget according to the procedures and
759 requirements of Section 63-38c-202 .
760 (12) "Revenues" means the revenues of the state from every tax, penalty, receipt, and
761 other monetary exaction and interest connected with it that are recorded as unrestricted revenue
762 of the General Fund and from non-Uniform School Fund income tax revenues, except as
763 specifically exempted by this chapter.
764 (13) "Security" means any bond, note, warrant, or other evidence of indebtedness,
765 whether or not the bond, note, warrant, or other evidence of indebtedness is or constitutes an
766 "indebtedness" within the meaning of any provision of the constitution or laws of this state.
767 Section 8. Section 63-38c-402 is amended to read:
768 63-38c-402. Debt limitation -- Vote requirement needed to exceed limitation --
769 Exceptions.

770 (1) (a) Except as provided in Subsection (1)(b), the outstanding general obligation debt
771 of the state may not exceed 45% of the maximum allowable appropriations limit unless
772 approved by more than a two-thirds vote of both houses of the Legislature.
773 (b) Notwithstanding the limitation contained in Subsection (1)(a), debt issued under the
774 authority of the following parts or sections is not subject to the debt limitation established by
775 this section:
776 (i) Title 63B, Chapter 6, Part 2, 1997 Highway General Obligation Bond
777 Authorization;
778 (ii) Title 63B, Chapter 6, Part 3, 1997 Highway Bond Anticipation Note Authorization;
779 (iii) Title 63B, Chapter 7, Part 2, 1998 Highway General Obligation Bond
780 Authorization;
781 (iv) Title 63B, Chapter 7, Part 3, 1998 Highway Bond Anticipation Note
782 Authorization;
783 (v) Title 63B, Chapter 8, Part 2, 1999 Highway General Obligation Bond
784 Authorization;
785 (vi) Title 63B, Chapter 8, Part 3, 1999 Highway Bond Anticipation Note
786 Authorization;
787 (vii) Title 63B, Chapter 9, Part 2, 2000 Highway General Obligation Bond;
788 (viii) Title 63B, Chapter 10, Part 1, 2001 Highway General Obligation Bond;
789 (ix) Title 63B, Chapter 10, Part 2, 2001 Highway General Obligation Bond
790 Anticipation Notes;
791 (x) Title 63B, Chapter 11, Part 5, 2002 Highway General Obligation Bond for Salt
792 Lake County;
793 (xi) Title 63B, Chapter 11, Part 6, 2002 Highway General Obligation Bond
794 Anticipation Notes for Salt Lake County Authorization; [and]
795 (xii) Section 63B-13-102 [.]; and
796 (xiii) Section 63B-16-101 .
797 (2) This section does not apply if contractual rights will be impaired.
798 Section 9. Section 63B-16-101 is enacted to read:
799 Part 1. 2007 General Bond Obligations
800 63B-16-101. Highway bonds -- Maximum amount -- Projects authorized.

801 (1) The total amount of bonds issued under this section may not exceed $300,000,000.
802 (2) (a) Proceeds from the issuance of bonds shall be:
803 (i) deposited in the Mountain View Corridor Fund created by Section 72-2-125 ; and
804 (ii) used by the Department of Transportation to pay for the costs of acquiring and
805 constructing a highway construction project within the Mountain View Corridor as defined in
806 Section 72-2-125 .
807 (b) The Department of Transportation shall use bond proceeds to pay for the portion of
808 the highway construction project described in Subsection (2)(a)(ii) that is located in Salt Lake
809 County.
810 (c) The costs under this Subsection (2) may include the cost of acquiring land, interests
811 in land, easements and rights-of-way, improving sites, and making all improvements necessary,
812 incidental, or convenient to the facilities, interest estimated to accrue on these bonds during the
813 period to be covered by construction of the projects plus a period of six months after the end of
814 the construction period, interest estimated to accrue on any bond anticipation notes issued
815 under the authority of this title, and all related engineering, architectural, and legal fees.
816 (3) The commission or the state treasurer may make any statement of intent relating to
817 a reimbursement that is necessary or desirable to comply with federal tax law.
818 (4) The Department of Transportation may enter into agreements related to the project
819 before the receipt of proceeds of bonds issued under this chapter.
820 Section 10. Section 72-2-117 is amended to read:
821 72-2-117. Transportation Corridor Preservation Revolving Loan Fund --
822 Distribution -- Repayment -- Rulemaking.
823 (1) There is created the Transportation Corridor Preservation Revolving Loan Fund
824 within the Transportation Fund.
825 (2) The fund shall be funded from the following sources:
826 (a) motor vehicle rental tax imposed under Section 59-12-1201 ;
827 (b) appropriations made to the fund by the Legislature;
828 (c) contributions from other public and private sources for deposit into the fund;
829 (d) interest earnings on cash balances;
830 (e) all monies collected for repayments and interest on fund monies;
831 (f) all monies collected from rents and sales of real property acquired with fund

832 monies; and
833 (g) proceeds from general obligation bonds, revenue bonds, or other obligations as
834 authorized by Title 63B, Bonds.
835 (3) All monies appropriated to the Transportation Corridor Preservation Revolving
836 Loan Fund are nonlapsing.
837 (4) (a) The commission shall authorize the expenditure of fund monies to allow the
838 department to acquire real property or any interests in real property for state, county, and
839 municipal transportation corridors subject to:
840 (i) monies available in the fund;
841 (ii) rules made under Subsection (7); and
842 (iii) Subsection (9).
843 (b) Fund monies may be used to pay interest on debts incurred in accordance with this
844 section.
845 (5) Administrative costs [of the Transportation Corridor Preservation Revolving Loan
846 Fund] for transportation corridor preservation shall be paid from the fund.
847 (6) The department:
848 (a) may apply to the commission under this section for monies from the Transportation
849 Corridor Preservation Revolving Loan Fund for a specified transportation corridor project,
850 including for county and municipal projects; and
851 (b) shall repay the fund monies authorized for the project to the fund as required under
852 Subsection (7).
853 (7) The commission shall:
854 (a) administer the Transportation Corridor Preservation Revolving Loan Fund to:
855 (i) preserve transportation corridors;
856 (ii) promote long-term statewide transportation planning;
857 (iii) save on acquisition costs; and
858 (iv) promote the best interests of the state in a manner which minimizes impact on
859 prime agricultural land;
860 (b) prioritize fund monies based on considerations, including:
861 (i) areas with rapidly expanding population;
862 (ii) the willingness of local governments to complete studies and impact statements

863 that meet department standards;
864 (iii) the preservation of corridors by the use of local planning and zoning processes;
865 (iv) the availability of other public and private matching funds for a project; and
866 (v) the cost-effectiveness of the preservation projects;
867 (c) designate high priority corridor preservation projects in cooperation with a
868 metropolitan planning organization;
869 (d) administer the program for the purposes provided in this section;
870 (e) prioritize fund monies in accordance with this section; and
871 (f) make rules in accordance with Title 63, Chapter 46a, Utah Administrative
872 Rulemaking Act, establishing:
873 (i) the procedures for the awarding of fund monies;
874 (ii) the procedures for the department to apply for transportation corridor preservation
875 monies for projects; and
876 (iii) repayment conditions of the monies to the fund from the specified project funds.
877 (8) (a) The proceeds from any bonds or other obligations secured by revenues of the
878 Transportation Corridor Preservation Revolving Loan Fund shall be used for:
879 (i) the acquisition of real property in hardship cases; and
880 (ii) any of the purposes authorized for funds in the Transportation Corridor
881 Preservation Revolving Loan Fund under this section.
882 (b) The commission shall pledge the necessary part of the revenues of the
883 Transportation Corridor Preservation Revolving Loan Fund to the payment of principal of and
884 interest on the bonds or other obligations.
885 (9) (a) The department may not apply for monies under this section unless the highway
886 authority has an access management policy or ordinance in effect that meets the requirements
887 under Subsection (9)(b).
888 (b) The access management policy or ordinance shall:
889 (i) be for the purpose of balancing the need for reasonable access to land uses with the
890 need to preserve the smooth flow of traffic on the highway system in terms of safety, capacity,
891 and speed; and
892 (ii) include provisions:
893 (A) limiting the number of conflict points at driveway locations;

894 (B) separating conflict areas;
895 (C) reducing the interference of through traffic;
896 (D) spacing at-grade signalized intersections; and
897 (E) providing for adequate on-site circulation and storage.
898 (c) The department shall develop a model access management policy or ordinance that
899 meets the requirements of this Subsection (9) for the benefit of a county or municipality under
900 this section.
901 (10) (a) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking
902 Act, the commission shall make rules establishing a corridor preservation advisory council.
903 (b) The corridor preservation advisory council shall:
904 (i) assist with and help coordinate the corridor preservation efforts of the department
905 and local governments;
906 (ii) provide recommendations and priorities concerning corridor preservation and the
907 use of fund monies to the department and to the commission; and
908 (iii) include members designated by each metropolitan planning organization in the
909 state to represent local governments that are involved with corridor preservation through
910 official maps and planning.
911 Section 11. Section 72-2-117.5 is amended to read:
912 72-2-117.5. Local Transportation Corridor Preservation Fund -- Distribution.
913 (1) As used in this section:
914 (a) "Council of governments" means a decision-making body in each county composed
915 of the county governing body and the mayors of each municipality in the county.
916 (b) "Metropolitan planning organization" has the same meaning as defined in Section
917 72-1-208.5 .
918 (2) There is created the Local Transportation Corridor Preservation Fund within the
919 Transportation Fund.
920 (3) The fund shall be funded from the following sources:
921 (a) a local option transportation corridor preservation fee imposed under Section
922 41-1a-1222 ;
923 (b) appropriations made to the fund by the Legislature;
924 (c) contributions from other public and private sources for deposit into the fund;

925 (d) interest earnings on cash balances;
926 (e) all monies collected from rents and sales of real property acquired with fund
927 monies;
928 (f) proceeds from general obligation bonds, revenue bonds, or other obligations issued
929 as authorized by Title 63B, Bonds; and
930 (g) the portion of the sales and use tax described in Subsection 59-12-1703 (4)(a)(ii)
931 and required by Subsection 59-12-1703 (7)(b)(i) to be deposited into the fund.
932 (4) (a) All monies appropriated to the Local Transportation Corridor Preservation Fund
933 are nonlapsing.
934 (b) The State Tax Commission shall provide the department with sufficient data for the
935 department to allocate the revenues:
936 (i) provided under Subsection (3)(a) to each county imposing a local option
937 transportation corridor preservation fee under Section 41-1a-1222 ; and
938 (ii) provided under Subsection 59-12-1703 (4)(a)(ii) to each county imposing a county
939 option sales and use tax for transportation.
940 (c) The monies allocated under Subsection (4)(b):
941 (i) shall be used for the purposes provided in this section for each county; and
942 (ii) are allocated to each county as provided in this section:
943 (A) with the condition that the state will not be charged for any asset purchased with
944 the monies allocated under Subsection (4)(b); and
945 (B) are considered a local matching contribution for the purposes described under
946 Section 72-2-123 if used on a state highway.
947 (d) Administrative costs of the department to implement this section shall be paid from
948 the fund.
949 (5) (a) The department shall authorize the expenditure of fund monies to allow a
950 highway authority to acquire real property or any interests in real property for state, county, and
951 municipal transportation corridors subject to:
952 (i) monies available in the fund to each county under Subsection (4)(b); and
953 (ii) the provisions of this section.
954 (b) Fund monies may be used to pay interest on debts incurred in accordance with this
955 section.

956 (c) (i) (A) Fund monies may be used to pay maintenance costs of properties acquired
957 under this section but limited to a total of 5% of the purchase price of the property.
958 (B) Any additional maintenance cost shall be paid from funds other than under this
959 section.
960 (C) Revenue generated by any property acquired under this section is excluded from
961 the limitations under this Subsection (5)(c)(i).
962 (ii) Fund monies may be used to pay direct costs of acquisition of properties acquired
963 under this section.
964 (d) Fund monies allocated under Subsection (4)(b) may be used by a county highway
965 authority for countywide transportation planning if:
966 (i) the county is not included in a metropolitan planning organization;
967 (ii) the transportation planning is part of the county's continuing, cooperative, and
968 comprehensive process for transportation planning, corridor preservation, right-of-way
969 acquisition, and project programming;
970 (iii) no more than four years allocation every 20 years to each county is used for
971 transportation planning under this Subsection (5)(d); and
972 (iv) the county otherwise qualifies to use the fund monies as provided under this
973 section.
974 (e) (i) Fund monies allocated under Subsection (4)(b) may be used by a county
975 highway authority for transportation corridor planning that is part of the corridor elements of an
976 ongoing work program of transportation projects.
977 (ii) The transportation corridor planning under Subsection (5)(e)(i) shall be under the
978 direction of:
979 (A) the metropolitan planning organization if the county is within the boundaries of a
980 metropolitan planning organization; or
981 (B) the department if the county is not within the boundaries of a metropolitan
982 planning organization.
983 (6) (a) (i) The Local Transportation Corridor Preservation Fund shall be used to
984 preserve transportation corridors, promote long-term statewide transportation planning, save on
985 acquisition costs, and promote the best interests of the state in a manner which minimizes
986 impact on prime agricultural land.

987 (ii) The Local Transportation Corridor Preservation Fund shall only be used to preserve
988 a highway corridor that is right-of-way:
989 (A) in a county of the first or second class for a:
990 (I) state highway;
991 (II) a principal arterial highway as defined in Section 72-4-102.5 ; or
992 (III) a minor arterial highway as defined in Section 72-4-102.5 ; or
993 (B) in a county of the third, fourth, fifth, or sixth class:
994 (I) state highway;
995 (II) a principal arterial highway as defined in Section 72-4-102.5 ;
996 (III) a minor arterial highway as defined in Section 72-4-102.5 ;
997 (IV) a major collector highway as defined in Section 72-4-102.5 ; or
998 (V) a minor collector roads as defined in Section 72-4-102.5 .
999 [(ii)] (iii) The Local Transportation Corridor Preservation Fund may not be used for a
1000 transportation corridor that is primarily a recreational trail as defined under Section
1001 63-11a-101 .
1002 (b) (i) The department shall develop and implement a program to educate highway
1003 authorities on the objectives, application process, use, and responsibilities of the Local
1004 Transportation Corridor Preservation Fund as provided under this section to promote the most
1005 efficient and effective use of fund monies including priority use on designated high priority
1006 corridor preservation projects.
1007 (ii) The department shall develop a model transportation corridor property acquisition
1008 policy or ordinance that meets federal requirements for the benefit of a highway authority to
1009 acquire real property or any interests in real property under this section.
1010 (c) The department shall authorize the expenditure of fund monies after determining
1011 that the expenditure is being made in accordance with this section from applications that are:
1012 (i) made by a highway authority; [and]
1013 (ii) endorsed by the council of governments[.]; and
1014 (iii) for a right-of-way purchase for a highway authorized under Subsection (6)(a)(ii).
1015 (7) (a) (i) A council of governments may establish a council of governments
1016 endorsement process which includes prioritization and application procedures for use of the
1017 monies allocated to each county under this section.

1018 (ii) The endorsement process under Subsection (7)(a)(i) may include review or
1019 endorsement of the preservation project by the:
1020 (A) metropolitan planning organization if the county is within the boundaries of a
1021 metropolitan planning organization; or
1022 (B) the department if the county is not within the boundaries of a metropolitan
1023 planning organization.
1024 (b) All fund monies shall be prioritized by each highway authority and council of
1025 governments based on considerations, including:
1026 (i) areas with rapidly expanding population;
1027 (ii) the willingness of local governments to complete studies and impact statements
1028 that meet department standards;
1029 (iii) the preservation of corridors by the use of local planning and zoning processes;
1030 (iv) the availability of other public and private matching funds for a project;
1031 (v) the cost-effectiveness of the preservation projects;
1032 (vi) long and short-term maintenance costs for property acquired; and
1033 (vii) whether the transportation corridor is included as part of:
1034 (A) the county and municipal master plan; and
1035 (B) (I) the statewide long range plan; or
1036 (II) the regional transportation plan of the area metropolitan planning organization if
1037 one exists for the area.
1038 (8) (a) Unless otherwise provided by written agreement with another highway
1039 authority, the highway authority that holds the deed to the property is responsible for
1040 maintenance of the property.
1041 (b) The transfer of ownership for property acquired under this section from one
1042 highway authority to another shall include a recorded deed for the property and a written
1043 agreement between the highway authorities.
1044 (9) (a) The proceeds from any bonds or other obligations secured by revenues of the
1045 Local Transportation Corridor Preservation Fund shall be used for the purposes authorized for
1046 funds under this section.
1047 (b) The highway authority shall pledge the necessary part of the revenues of the Local
1048 Transportation Corridor Preservation Fund to the payment of principal and interest on the

1049 bonds or other obligations.
1050 (10) (a) A highway authority may not apply for monies under this section unless the
1051 highway authority has:
1052 (i) a transportation corridor property acquisition policy or ordinance in effect that
1053 meets federal requirements for the acquisition of real property or any interests in real property
1054 under this section; and
1055 (ii) an access management policy or ordinance in effect that meets the requirements
1056 under Subsection 72-2-117 (9).
1057 (b) The provisions of Subsection (10)(a)(i) do not apply if the highway authority has a
1058 written agreement with the department for the acquisition of real property or any interests in
1059 real property under this section.
1060 Section 12. Section 72-2-121 is amended to read:
1061 72-2-121. Public Transportation System Tax Highway Fund.
1062 (1) There is created a special revenue fund entitled the Public Transportation System
1063 Tax Highway Fund.
1064 (2) The fund consists of monies generated from the following revenue sources:
1065 (a) any voluntary contributions received for new construction, major renovations, and
1066 improvements to Interstate 15 and state highways within a county of the first class; and
1067 (b) the portion of the sales and use tax described in Subsection 59-12-502 (5)(a)(ii)
1068 deposited in or transferred to the fund through an interlocal agreement[; and].
1069 [(c) the portion of the sales and use tax described in Subsection 59-12-1703 (4)(a)(ii)
1070 and required by Subsection 59-12-1703 (7)(b)(ii) to be deposited in or transferred to the fund.]
1071 (3) (a) The fund shall earn interest.
1072 (b) All interest earned on fund monies shall be deposited into the fund.
1073 (4) (a) The Division of Finance shall, from funds that are deposited or transferred into
1074 the Public Transportation System Tax Highway Fund, transfer into the Mountain View
1075 Corridor created by Section 72-2-125 the amount of funds certified by the Department of
1076 Transportation in accordance with Subsection (4)(b) that are not required to pay:
1077 (i) principal, interest, and issuance costs of bonds issued for highway construction
1078 projects authorized under Subsection 63B-11-502 (2)(a) or (e) in the current fiscal year; or
1079 (ii) construction or reconstruction costs for projects authorized under Subsection

1080 63B-11-502 (2)(a) or (e) in the current fiscal year.
1081 (b) The Division of Finance shall transfer the amount under Subsection (7)(a) when the
1082 Division of Finance receives a written letter from the Department of Transportation certifying
1083 the amounts of funds available under Subsection (4)(a).
1084 [(4)] (5) The executive director may use fund monies, as prioritized by the
1085 Transportation Commission[: (a) for the portion of the monies generated from the revenue
1086 sources described in Subsections (2)(a) and (b)], only for new construction, major renovations,
1087 and improvements to Interstate 15 and state highways within a county of the first class and to
1088 pay any debt service and bond issuance costs related to those projects[; and].
1089 [(b) for the portion of the monies generated from the revenue sources described in
1090 Subsection (2)(c), only for state highway corridor preservation for new state highway projects
1091 within a county of the first class, to pay any debt service and bond issuance costs related to
1092 those projects, and shall not supplant monies already designated for state projects.]
1093 [(5)] (6) The additional administrative costs of the department to administer this fund
1094 shall be paid from the monies in the fund.
1095 Section 13. Section 72-2-125 is enacted to read:
1096 72-2-125. Mountain View Corridor Fund.
1097 (1) As used in this section, "Mountain View Corridor" means the land area of Salt Lake
1098 County running from Interstate 80 south between SR-154 and SR-111 to 12600 South and then
1099 south and southeasterly to the northern portion of Utah County west of SR-15.
1100 (2) There is created a special revenue fund within the Transportation Fund entitled the
1101 Mountain View Corridor Fund.
1102 (3) The fund consists of monies generated from the following sources:
1103 (a) any voluntary contributions received for the maintenance, construction,
1104 reconstruction, or renovation of a state highway within the Mountain View Corridor;
1105 (b) appropriations made to the fund by the Legislature;
1106 (c) a local option transportation corridor preservation fee imposed in a county of the
1107 first class under Section 41-1a-1222 ;
1108 (d) a portion of the Public Transit Tax imposed in a county of the first class under
1109 Section 59-12-502 ; and
1110 (e) a portion of the County Option Sales and Use Tax for Transportation tax revenue

1111 imposed in a county of the first class that is designated for corridor preservation under Section
1112 59-12-1703 .
1113 (4) (a) The fund shall earn interest.
1114 (b) All interest earned on fund monies shall be deposited into the fund.
1115 (5) The executive director may use fund monies only to pay for:
1116 (a) the acquisition of real property within the Mountain View Corridor;
1117 (b) a highway construction project within the Mountain View Corridor; and
1118 (c) any debt service and bond issuance costs related to that project.
1119 (6) The revenues described in Subsections (3)(c), (d), and (e) that are deposited in the
1120 fund:
1121 (a) shall be used on the portion of the project described in Subsection (5) that is located
1122 in a county of the first class; and
1123 (b) are considered a local matching contribution for the purposes described under
1124 Section 72-2-123 .
1125 Section 14. Effective date.
1126 This bill takes effect on July 1, 2007.