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S.B. 24

This document includes House Floor Amendments incorporated into the bill on Wed, Feb 16, 2011 at 11:32 AM by jeyring. -->              1     

MOTOR VEHICLE DIVISION FEE AMENDMENTS

             2     
2011 GENERAL SESSION

             3     
STATE OF UTAH

             4     
Chief Sponsor: Kevin T. Van Tassell

             5     
House Sponsor: Julie Fisher

             6     

             7      LONG TITLE
             8      Committee Note:
             9          The Transportation Interim Committee recommended this bill.
             10      General Description:
             11          This bill amends provisions relating to revenue collected from certain Motor Vehicle
             12      Division fees.
             13      Highlighted Provisions:
             14          This bill:
             15          .    provides that certain license plate fees shall be established in accordance with
             16      certain requirements rather than established in statute and provides for the
             17      disposition of those fees;
             18          .    provides that funds available to the Tax Commission for the purchase and
             19      distribution of license plates and decals are nonlapsing;
             20          .    creates the Electronic Payment Fee Restricted Account and provides that funds in
             21      the account are nonlapsing;
             22          .    provides that certain Motor Vehicle Division fees collected to cover the costs of
             23      electronic payments shall be deposited in the Electronic Payment Fee Restricted
             24      Account; and
             25          .    makes technical changes.
             26      Money Appropriated in this Bill:
             27          None



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House Floor Amendments 2-16-2011 je/sch
             28
     Other Special Clauses:
             29          This bill takes effect on July 1, 2011.
             30      Utah Code Sections Affected:
             31      AMENDS:
             32          41-1a-1201, as last amended by Laws of Utah 2010, Chapters 295 and 391
             33          41-1a-1211, as last amended by Laws of Utah 2009, Chapters 183 and 348
             34          41-1a-1221, as last amended by Laws of Utah 2010, Chapter 391
             35          41-3-604, as last amended by Laws of Utah 2010, Chapter 391
             36          41-22-36, as last amended by Laws of Utah 2010, Chapter 391
             37          63J-1-602.2, as enacted by Laws of Utah 2010, Chapter 265 and last amended by
             38      Coordination Clause, Laws of Utah 2010, Chapter 265
             39          72-2-118, as last amended by Laws of Utah 2010, Chapter 391
             40          72-2-124, as last amended by Laws of Utah 2010, Chapter 391
             41          73-18-25, as last amended by Laws of Utah 2010, Chapter 391
             42      ENACTS:
             43          41-1a-121, Utah Code Annotated 1953
             43a      H. Uncodified Material Affected:
             43b          ENACTS UNCODIFIED MATERIAL .H
             44     

             45      Be it enacted by the Legislature of the state of Utah:
             46          Section 1. Section 41-1a-121 is enacted to read:
             47          41-1a-121. Electronic Payment Fee Restricted Account.
             48          (1) As used in this section, "account" means the Electronic Payment Fee Restricted
             49      Account created by this section.
             50          (2) There is created within the General Fund a restricted account known as the
             51      Electronic Payment Fee Restricted Account.
             52          (3) (a) The account shall be funded from the fees imposed and collected under Sections
             53      41-1a-1221 , 41-3-604 , 41-22-36 , and 73-18-25 .
             54          (b) The fees described in Subsection (3)(a) shall be paid to the division, which shall
             55      deposit them in the account.
             56          (4) The Legislature shall appropriate the funds in the account to the commission to
             57      cover the costs of electronic payments.
             58          (5) In accordance with Section 63J-1-602.2 , appropriations made to the division from



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             59
     the account are nonlapsing.
             60          Section 2. Section 41-1a-1201 is amended to read:
             61           41-1a-1201. Disposition of fees.
             62          (1) All fees received and collected under this part shall be transmitted daily to the state
             63      treasurer.
             64          (2) Except as provided in Subsections (3), [(5)] (6), and [(6)] (7) and Sections
             65      41-1a-422 , 41-1a-1220 , 41-1a-1221 , and 41-1a-1223 all fees collected under this part shall be
             66      deposited in the Transportation Fund.
             67          (3) [(a)] Funds generated under Subsections 41-1a-1211 (1)(b)[(i)](ii), (6)(b)[(i)](ii),
             68      and (7) and Section 41-1a-1212 may be used by the commission [as a dedicated credit] to cover
             69      the costs incurred in issuing license plates under Part 4, License Plates and Registration Indicia.
             70          [(b) Fees for statehood centennial license plates shall be collected and deposited in the
             71      Transportation Fund, less production and administrative costs incurred by the commission.]
             72          (4) In accordance with Section 63J-1-602.2 , all funds available to the commission for
             73      the purchase and distribution of license plates and decals are nonlapsing.
             74          [(4)] (5) Except as provided in Subsection (3) and Section 41-1a-1205 , the expenses of
             75      the commission in enforcing and administering this part shall be provided for by legislative
             76      appropriation from the revenues of the Transportation Fund.
             77          [(5)] (6) (a) Except as provided in Subsection [(5)] (6)(b), the following portions of the
             78      registration fees imposed under Section 41-1a-1206 for each vehicle shall be deposited in the
             79      Centennial Highway Fund Restricted Account created under Section 72-2-118 :
             80          (i) $10 of the registration fees imposed under Subsections 41-1a-1206 (1)(a), (1)(b), (2),
             81      and (5);
             82          (ii) $1 of the registration fees imposed under Subsections 41-1a-1206 (1)(c)(i),
             83      (1)(c)(ii), and (1)(d)(ii);
             84          (iii) $2 of the registration fee imposed under Subsection 41-1a-1206 (1)(e)(ii);
             85          (iv) $3 of the registration fee imposed under Subsection 41-1a-1206 (1)(d)(i); and
             86          (v) $4.50 of the registration fee imposed under Subsection 41-1a-1206 (1)(e)(i).
             87          (b) When the highway general obligation bonds have been paid off and the highway
             88      projects completed that are intended to be paid from revenues deposited in the Centennial
             89      Highway Fund Restricted Account as determined by the Executive Appropriations Committee



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             90
     under Subsection 72-2-118 (6)(d), the portions of the registration fees deposited under
             91      Subsection [(5)] (6)(a) for each vehicle shall be deposited in the Transportation Investment
             92      Fund of 2005 created by Section 72-2-124 .
             93          [(6)] (7) The following portions of the registration fees imposed under Section
             94      41-1a-1206 for each vehicle shall be deposited in the Transportation Investment Fund of 2005
             95      created by Section 72-2-124 :
             96          (a) $20 of each registration fee collected under Subsections 41-1a-1206 (1)(a), (1)(b),
             97      (1)(c), (1)(d)(i), (1)(e)(i), (2)(a), and (5); and
             98          (b) 50 cents of each registration fee collected under Subsection 41-1a-1206 (1)(e)(ii).
             99          Section 3. Section 41-1a-1211 is amended to read:
             100           41-1a-1211. License plate fees -- Application fees for issuance and renewal of
             101      personalized and special group license plates -- Replacement fee for license plates --
             102      Postage fees.
             103          (1) (a) Except as provided in Subsections (11) and (12), a license plate fee [of $5 per
             104      set] established in accordance with Section 63J-1-504 shall be paid to the division for the
             105      issuance of any new license plate under Part 4, License Plates and Registration Indicia.
             106          (b) The license plate fee shall be deposited as follows:
             107          [(i) $4 as provided in Section 41-1a-1201 ; and]
             108          [(ii)] (i) $1 in the Transportation Fund[.]; and
             109          (ii) the remainder of the fee charged under Subsection (1)(a), as provided in Section
             110      41-1a-1201 .
             111          (2) An applicant for original issuance of personalized license plates issued under
             112      Section 41-1a-410 shall pay a $50 per set license plate application fee in addition to the fee
             113      required in Subsection (1).
             114          (3) Beginning July 1, 2003, a person who applies for a special group license plate shall
             115      pay a $5 fee for the original set of license plates in addition to the fee required under
             116      Subsection (1).
             117          (4) An applicant for original issuance of personalized special group license plates shall
             118      pay the license plate application fees required in Subsection (2) in addition to the license plate
             119      fees and license plate application fees established under Subsections (1) and (3).
             120          (5) An applicant for renewal of personalized license plates issued under Section



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             121
     41-1a-410 shall pay a $10 per set application fee.
             122          (6) (a) [A fee of $5 shall be paid to the division] The division may charge a fee
             123      established under Section 63J-1-504 to recover the costs for the replacement of any license
             124      plate issued under Part 4, License Plates and Registration Indicia.
             125          (b) The license plate fee shall be deposited as follows:
             126          [(i) $4 as provided in Section 41-1a-1201 ; and]
             127          [(ii)] (i) $1 in the Transportation Fund[.]; and
             128          (ii) the remainder of the fee charged under Subsection (6)(a), as provided in Section
             129      41-1a-1201 .
             130          (7) The division may charge a fee established under Section 63J-1-504 to recover its
             131      costs for the replacement of decals issued under Section 41-1a-418 .
             132          (8) The division may charge a fee established under Section 63J-1-504 to recover the
             133      cost of issuing stickers under Section 41-1a-416 .
             134          (9) In addition to any other fees required by this section, the division shall assess a fee
             135      established under Section 63J-1-504 to cover postage expenses if new or replacement license
             136      plates are mailed to the applicant.
             137          (10) The fees required under this section are separate from and in addition to
             138      registration fees required under Section 41-1a-1206 .
             139          (11) (a) An applicant for a license plate issued under Section 41-1a-407 is not subject
             140      to the license plate fee under Subsection (1).
             141          (b) An applicant for a Purple Heart special group license plate issued in accordance
             142      with Section 41-1a-421 is exempt from the fees under Subsections (1), (3), and (7).
             143          (12) A person is exempt from the fee under Subsection (1) or (6) if the person:
             144          (a) was issued a clean fuel special group license plate in accordance with Section
             145      41-1a-418 prior to the effective date of rules made by the Department of Transportation under
             146      Subsection 41-6a-702 (5)(b);
             147          (b) beginning on the effective date of rules made by the Department of Transportation
             148      authorized under Subsection 41-6a-702 (5)(b), is no longer eligible for a clean fuel special
             149      group license plate under the rules made by the Department of Transportation; and
             150          (c) upon renewal or reissuance, is required to replace the clean fuel special group
             151      license plate with a new license plate.



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             152
         (13) Until June 30, 2011, a person is exempt from the license plate fee under
             153      Subsection (1) or (6) if the person:
             154          (a) was issued a firefighter recognition special group license plate in accordance with
             155      Section 41-1a-418 prior to July 1, 2009;
             156          (b) upon renewal of the person's vehicle registration on or after July 1, 2009, is not a
             157      contributor to the Firefighter Support Restricted Account as required under Section 41-1a-418 ;
             158      and
             159          (c) is required to replace the firefighter special group license plate with a new license
             160      plate in accordance with Section 41-1a-418 .
             161          Section 4. Section 41-1a-1221 is amended to read:
             162           41-1a-1221. Fees to cover the cost of electronic payments.
             163          (1) As used in this section:
             164          (a) "Electronic payment" means use of any form of payment processed through
             165      electronic means, including credit cards, debit cards, and automatic clearinghouse transactions.
             166          (b) "Electronic payment fee" means the fee assessed to defray:
             167          (i) the charge, discount fee, or processing fee charged by credit card companies or
             168      processing agents to process an electronic payment; or
             169          (ii) costs associated with the purchase of equipment necessary for processing electronic
             170      payments.
             171          (2) (a) The Motor Vehicle Division may collect an electronic payment fee on all
             172      registrations and renewals of registration under Subsections 41-1a-1206 (1)(a), (1)(b), and (2).
             173          (b) The fee described in Subsection (2)(a):
             174          (i) shall be imposed regardless of the method of payment for a particular transaction;
             175      and
             176          (ii) need not be separately identified from the fees imposed for registration and
             177      renewals of registration under Subsections 41-1a-1206 (1)(a), (1)(b), and (2).
             178          (3) The division shall establish the fee according to the procedures and requirements of
             179      Section 63J-1-504 .
             180          (4) A fee imposed under this section:
             181          (a) shall be [used by the division as a dedicated credit to cover the costs of electronic
             182      payments] deposited in the Electronic Payment Fee Restricted Account created by Section



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             183
     41-1a-121 ; and
             184          (b) is not subject to Subsection 63J-2-202 (2).
             185          Section 5. Section 41-3-604 is amended to read:
             186           41-3-604. Fee to cover the cost of electronic payments.
             187          (1) As used in this section:
             188          (a) "Electronic payment" has the same meaning as defined in Section 41-1a-1221 .
             189          (b) "Electronic payment fee" has the same meaning as defined in Section 41-1a-1221 .
             190          (2) (a) The division may collect a fee to cover the cost of electronic payments on the
             191      following transactions:
             192          (i) each purchase or renewal of a license under Section 41-3-202 ;
             193          (ii) each purchase of a book of temporary permits under Section 41-3-302 ;
             194          (iii) each penalty issued for a delinquent temporary permit under Section 41-3-302 ;
             195          (iv) each purchase of an in-transit permit under Section 41-3-305 ;
             196          (v) each purchase of a loaded demonstration permit under Section 41-3-502 ;
             197          (vi) each purchase of a license plate under Section 41-3-503 ; and
             198          (vii) each purchase of a salvage vehicle buyer license under Section 41-3-202 .
             199          (b) The fee described in Subsection (2)(a):
             200          (i) shall be imposed regardless of the method of payment for a particular transaction;
             201      and
             202          (ii) need not be separately identified from the fees and penalty described in Subsections
             203      (2)(a)(i) through (vii).
             204          (3) The division shall establish the fee under Subsection (2)(a) according to the
             205      procedures and requirements of Section 63J-1-504 .
             206          (4) A fee imposed under this section:
             207          (a) shall be [used by the division as a dedicated credit to cover the costs of electronic
             208      payments] deposited in the Electronic Payment Fee Restricted Account created by Section
             209      41-1a-121 ; and
             210          (b) is not subject to Subsection 63J-2-202 (2).
             211          Section 6. Section 41-22-36 is amended to read:
             212           41-22-36. Fees to cover the costs of electronic payments.
             213          (1) As used in this section:



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             214
         (a) "Electronic payment" has the same meaning as defined in Section 41-1a-1221 .
             215          (b) "Electronic payment fee" has the same meaning as defined in Section 41-1a-1221 .
             216          (2) (a) The Motor Vehicle Division may collect an electronic payment fee on all
             217      registrations and renewals of registration under Section 41-22-8 .
             218          (b) The fee described in Subsection (2)(a) shall be imposed regardless of the method of
             219      payment for a particular transaction.
             220          (3) The division shall establish the fee according to the procedures and requirements of
             221      Section 63J-1-504 .
             222          (4) A fee imposed under this section:
             223          (a) shall be [used by the Motor Vehicle Division as a dedicated credit to cover the costs
             224      of electronic payments] deposited in the Electronic Payment Fee Restricted Account created by
             225      Section 41-1a-121 ;
             226          (b) is not subject to Subsection 63J-2-202 (2); and
             227          (c) need not be separately identified from the fees imposed on registrations and
             228      renewals of registration under Section 41-22-8 .
             229          Section 7. Section 63J-1-602.2 is amended to read:
             230           63J-1-602.2. List of nonlapsing funds and accounts -- Title 31 through Title 45.
             231          (1) Appropriations from the Technology Development Restricted Account created in
             232      Section 31A-3-104 .
             233          (2) Appropriations from the Criminal Background Check Restricted Account created in
             234      Section 31A-3-105 .
             235          (3) Appropriations from the Captive Insurance Restricted Account created in Section
             236      31A-3-304 , except to the extent that Section 31A-3-304 makes the money received under that
             237      section free revenue.
             238          (4) Appropriations from the Title Licensee Enforcement Restricted Account created in
             239      Section 31A-23a-415 .
             240          (5) The fund for operating the state's Federal Health Care Tax Credit Program, as
             241      provided in Section 31A-38-104 .
             242          (6) The Special Administrative Expense Account created in Section 35A-4-506 .
             243          (7) Funding for a new program or agency that is designated as nonlapsing under
             244      Section 36-24-101 .



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             245
         (8) The Oil and Gas Conservation Account created in Section 40-6-14.5 .
             246          (9) The Off-Highway Access and Education Restricted Account created in Section
             247      41-22-19.5 .
             248          (10) Funds available to the Tax Commission under Section 41-1a-1201 for the
             249      purchase and distribution of license plates and decals.
             250          (11) Appropriations from the Electronic Payment Fee Restricted Account created by
             251      Section 41-1a-121 to the Motor Vehicle Division.
             252          Section 8. Section 72-2-118 is amended to read:
             253           72-2-118. Centennial Highway Fund Restricted Account.
             254          (1) There is created a restricted account entitled the Centennial Highway Fund
             255      Restricted Account within the Transportation Investment Fund of 2005 created by Section
             256      72-2-124 .
             257          (2) The account consists of money generated from the following revenue sources:
             258          (a) any voluntary contributions received for the construction, major reconstruction, or
             259      major renovation of state or federal highways;
             260          (b) appropriations made to the fund by the Legislature;
             261          (c) registration fees designated under Subsection 41-1a-1201 [(5)](6)(a); and
             262          (d) the sales and use tax amounts provided for in Section 59-12-103 .
             263          (3) (a) The account shall earn interest.
             264          (b) All interest earned on account money shall be deposited into the account.
             265          (4) The executive director may use account money, as prioritized by the Transportation
             266      Commission, only to pay the costs of construction, major reconstruction, or major renovation
             267      to state and federal highways.
             268          (5) When the highway general obligation bonds have been paid off and the highway
             269      projects completed that are intended to be paid from revenues deposited in the account as
             270      determined by the Executive Appropriations Committee under Subsection (6)(d), the Division
             271      of Finance shall transfer any existing balance in the account into the Transportation Investment
             272      Fund of 2005 created by Section 72-2-124 .
             273          (6) (a) The Division of Finance shall monitor the highway general obligation bonds
             274      that are being paid from revenues deposited in the account.
             275          (b) The department shall monitor the highway construction, major reconstruction, or



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             276
     major renovation projects that are being paid from revenues deposited in the account.
             277          (c) Upon request by the Executive Appropriations Committee of the Legislature:
             278          (i) the Division of Finance shall report to the committee the status of all highway
             279      general obligation bonds that are being paid from revenues deposited in the account; and
             280          (ii) the department shall report to the committee the status of all highway construction,
             281      major reconstruction, or major renovation projects that are being paid from revenues deposited
             282      in the account.
             283          (d) The Executive Appropriations Committee of the Legislature shall notify the State
             284      Tax Commission, the department, and the Division of Finance when:
             285          (i) all highway general obligation bonds that are intended to be paid from revenues
             286      deposited in the account have been paid off; and
             287          (ii) all highway projects that are intended to be paid from revenues deposited in the
             288      account have been completed.
             289          (7) (a) The Division of Finance shall, from funds that are deposited into the Centennial
             290      Highway Fund Restricted Account, transfer into the Transportation Investment Fund of 2005
             291      created by Section 72-2-124 the amount of funds certified by the Transportation Commission
             292      in accordance with Subsection (7)(b) that are not required to pay:
             293          (i) principal, interest, and issuance costs of bonds issued for projects in the Centennial
             294      Highway Program in the current fiscal year; or
             295          (ii) construction or reconstruction costs for projects in the Centennial Highway
             296      Program in the current fiscal year.
             297          (b) The Division of Finance shall transfer the amount under Subsection (7)(a) when the
             298      Division of Finance receives a written letter from the Transportation Commission certifying the
             299      amount of funds available under Subsection (7)(a).
             300          Section 9. Section 72-2-124 is amended to read:
             301           72-2-124. Transportation Investment Fund of 2005.
             302          (1) There is created a special revenue fund entitled the Transportation Investment Fund
             303      of 2005.
             304          (2) The fund consists of money generated from the following sources:
             305          (a) any voluntary contributions received for the maintenance, construction,
             306      reconstruction, or renovation of state and federal highways;



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             307
         (b) appropriations made to the fund by the Legislature;
             308          (c) the sales and use tax revenues deposited into the fund in accordance with Section
             309      59-12-103 ; and
             310          (d) registration fees designated under Subsection 41-1a-1201 [(6)](7).
             311          (3) When the highway general obligation bonds have been paid off and the highway
             312      projects completed that are intended to be paid from revenues deposited in the Centennial
             313      Highway Fund Restricted Account as determined by the Executive Appropriations Committee
             314      under Subsection 72-2-118 (6)(d), the fund shall also consist of money generated from the
             315      following sources:
             316          (a) registration fees designated under Subsection 41-1a-1201 [(5)](6)(a); and
             317          (b) the sales and use tax amounts provided for in Section 59-12-103 .
             318          (4) (a) The fund shall earn interest.
             319          (b) All interest earned on fund money shall be deposited into the fund.
             320          (5) (a) Except as provided in Subsection (5)(b), the executive director may use fund
             321      money only to pay:
             322          (i) the costs of maintenance, construction, reconstruction, or renovation to state and
             323      federal highways prioritized by the Transportation Commission through the prioritization
             324      process for new transportation capacity projects adopted under Section 72-1-304 ;
             325          (ii) the costs of maintenance, construction, reconstruction, or renovation to the highway
             326      projects described in Subsection 63B-18-401 (2); and
             327          (iii) principal, interest, and issuance costs of bonds authorized by Section 63B-18-401 .
             328          (b) The executive director may use fund money to exchange for an equal or greater
             329      amount of federal transportation funds to be used as provided in Subsection (5)(a).
             330          (6) (a) Before bonds authorized by Section 63B-18-401 may be issued in any fiscal
             331      year, the department and the commission shall appear before the Executive Appropriations
             332      Committee of the Legislature and present the amount of bond proceeds that the department
             333      needs to provide funding for the projects identified in Subsection 63B-18-401 (2) for the next
             334      fiscal year.
             335          (b) The Executive Appropriations Committee of the Legislature shall review and
             336      comment on the amount of bond proceeds needed to fund the projects.
             337          (7) The Division of Finance shall, from money deposited into the fund, transfer the



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House Floor Amendments 2-16-2011 je/sch
             338
     amount of funds necessary to pay principal, interest, and issuance costs of bonds authorized by
             339      Section 63B-18-401 in the current fiscal year to the appropriate debt service or sinking fund.
             340          Section 10. Section 73-18-25 is amended to read:
             341           73-18-25. Fees to cover the costs of electronic payments.
             342          (1) As used in this section:
             343          (a) "Electronic payment" has the same meaning as defined in Section 41-1a-1221 .
             344          (b) "Electronic payment fee" has the same meaning as defined in Section 41-1a-1221 .
             345          (2) (a) The Motor Vehicle Division may collect an electronic payment fee on all
             346      registrations and renewals of registration under Section 73-18-7 .
             347          (b) The fee described under Subsection (2)(a) shall be imposed regardless of the
             348      method of payment for a particular transaction.
             349          (3) The Motor Vehicle Division shall establish the fee according to the procedures and
             350      requirements of Section 63J-1-504 .
             351          (4) A fee imposed under this section:
             352          (a) shall be [used by the Motor Vehicle Division as a dedicated credit to cover the costs
             353      of electronic payments] deposited in the Electronic Payment Fee Restricted Account created by
             354      Section 41-1a-121 ;
             355          (b) is not subject to Subsection 63J-2-202 (2); and
             356          (c) need not be separately identified from the fees imposed on registrations and
             357      renewals of registration under Section 73-18-7 .
             357a      H. Section 11. Intent language regarding lapsing of money.
             357b          It is the intent of the Legislature that money received by the Tax Commission during
             357c      fiscal year 2010-11 under the following sections shall be considered dedicated credits and in
             357d      closing out fiscal year 2010-11 the unspent dedicated credits shall lapse to the Electronic
             357e      Payment Fee Restricted Account created by Section 41-1a-121 in this bill:
             357f          (1) Section 41-1a-122;
             357g          (2) Section 41-3-604;
             357h          (3) Section 41-22-36; and
             357i          (4) Section 73-18-25. .H
             358          Section H. [ 11 ] 12 .H . Effective date.
             359          This bill takes effect on July 1, 2011.





Legislative Review Note
    as of 11-17-10 2:26 PM


Office of Legislative Research and General Counsel



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