Senator Kevin T. Van Tassell proposes the following substitute bill:


1     
TRANSPORTATION FUNDING AMENDMENTS

2     
2015 GENERAL SESSION

3     
STATE OF UTAH

4     
Chief Sponsor: Kevin T. Van Tassell

5     
House Sponsor: Don L. Ipson

6     

7     LONG TITLE
8     General Description:
9          This bill amends provisions relating to transportation funding.
10     Highlighted Provisions:
11          This bill:
12          ▸     repeals the requirement for a person who sells motor fuel or undyed special fuel in a
13     retail sale to post a tax rate decal on each motor fuel or undyed special fuel pump or
14     dispensing device;
15          ▸     increases the tax rate for a tax imposed upon motor fuel that is sold, used, or
16     received for sale or used in this state;
17          ▸     increases the tax rate for a tax imposed upon special fuel that is sold, used, or
18     received for sale or used in this state;
19          ▸     amends the cap on the amount of motor fuel tax revenue that is deposited in the
20     Off-Highway Vehicle Account;
21          ▸     appropriates Transportation Fund revenues to the Department of Transportation for
22     maintenance and bridge rehabilitation projects;
23          ▸     requires the Department of Transportation to seek to maintain an aggregate highway
24     system condition;
25          ▸     requires the Department of Transportation to annually report to the Transportation

26     Interim Committee on the highway system condition;
27          ▸     amends the apportionment formula for revenues deposited in the class B and class C
28     roads account; and
29          ▸     makes technical corrections.
30     Money Appropriated in this Bill:
31          None
32     Other Special Clauses:
33          This bill provides a special effective date.
34     Utah Code Sections Affected:
35     AMENDS:
36          59-13-201, as last amended by Laws of Utah 2010, Chapter 308
37          59-13-301, as last amended by Laws of Utah 2011, Chapter 259
38          72-2-106, as last amended by Laws of Utah 2010, Chapter 278
39          72-2-108, as last amended by Laws of Utah 2008, Chapter 109
40     ENACTS:
41          72-1-212, Utah Code Annotated 1953
42     REPEALS:
43          59-13-104, as enacted by Laws of Utah 1998, Chapter 253
44     

45     Be it enacted by the Legislature of the state of Utah:
46          Section 1. Section 59-13-201 is amended to read:
47          59-13-201. Rate -- Tax basis -- Exemptions -- Revenue deposited in the
48     Transportation Fund -- Restricted account for boating uses -- Refunds -- Reduction of tax
49     in limited circumstances.
50          (1) (a) Subject to the provisions of this section, a tax is imposed [at the rate of 24-1/2
51     cents per gallon] upon all motor fuel that is sold, used, or received for sale or used in this
52     state[.] at the rate of:
53          (i) until June 30, 2016, 29-1/2 cents per gallon;
54          (ii) beginning on July 1, 2016, and until June 30, 2017, 30-1/2 cents per gallon;
55          (iii) beginning on July 1, 2017, and until June 30, 2018, 31-1/2 cents per gallon;
56          (iv) beginning on July 1, 2018, and until June 30, 2019, 32-1/2 cents per gallon; and

57          (v) beginning on or after July 1, 2019, 33-1/2 cents per gallon.
58          (b) In lieu of the tax imposed under Subsection (1)(a) and subject to the provisions of
59     this section, a tax is imposed at the rate of 3/19 of the rate imposed under Subsection (1)(a),
60     rounded up to the nearest penny, upon all motor fuels that meet the definition of clean fuel in
61     Section 59-13-102 and are sold, used, or received for sale or use in this state.
62          (2) Any increase or decrease in tax rate applies to motor fuel that is imported to the
63     state or sold at refineries in the state on or after the effective date of the rate change.
64          (3) (a) No motor fuel tax is imposed upon:
65          (i) motor fuel that is brought into and sold in this state in original packages as purely
66     interstate commerce sales;
67          (ii) motor fuel that is exported from this state if proof of actual exportation on forms
68     prescribed by the commission is made within 180 days after exportation;
69          (iii) motor fuel or components of motor fuel that is sold and used in this state and
70     distilled from coal, oil shale, rock asphalt, bituminous sand, or solid hydrocarbons located in
71     this state; or
72          (iv) motor fuel that is sold to the United States government, this state, or the political
73     subdivisions of this state.
74          (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
75     commission shall make rules governing the procedures for administering the tax exemption
76     provided under Subsection (3)(a)(iv).
77          (4) The commission may either collect no tax on motor fuel exported from the state or,
78     upon application, refund the tax paid.
79          (5) (a) All revenue received by the commission under this part shall be deposited daily
80     with the state treasurer and credited to the Transportation Fund.
81          (b) An appropriation from the Transportation Fund shall be made to the commission to
82     cover expenses incurred in the administration and enforcement of this part and the collection of
83     the motor fuel tax.
84          (6) (a) The commission shall determine what amount of motor fuel tax revenue is
85     received from the sale or use of motor fuel used in motorboats registered under the provisions
86     of the State Boating Act, and this amount shall be deposited in a restricted revenue account in
87     the General Fund of the state.

88          (b) The funds from this account shall be used for the construction, improvement,
89     operation, and maintenance of state-owned boating facilities and for the payment of the costs
90     and expenses of the Division of Parks and Recreation in administering and enforcing the State
91     Boating Act.
92          (7) (a) The United States government or any of its instrumentalities, this state, or a
93     political subdivision of this state that has purchased motor fuel from a licensed distributor or
94     from a retail dealer of motor fuel and has paid the tax on the motor fuel as provided in this
95     section is entitled to a refund of the tax and may file with the commission for a quarterly
96     refund.
97          (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
98     commission shall make rules governing the application and refund provided for in Subsection
99     (7)(a).
100          (8) (a) The commission shall refund annually into the Off-Highway Vehicle Account in
101     the General Fund an amount equal to the lesser of the following:
102          (i) .5% of the motor fuel tax revenues collected under this section; or
103          (ii) [$1,050,000] $1,500,000.
104          (b) This amount shall be used as provided in Section 41-22-19.
105          (9) (a) Beginning on April 1, 2001, a tax imposed under this section on motor fuel that
106     is sold, used, or received for sale or use in this state is reduced to the extent provided in
107     Subsection (9)(b) if:
108          (i) a tax imposed on the basis of the sale, use, or receipt for sale or use of the motor
109     fuel is paid to the Navajo Nation;
110          (ii) the tax described in Subsection (9)(a)(i) is imposed without regard to whether or
111     not the person required to pay the tax is an enrolled member of the Navajo Nation; and
112          (iii) the commission and the Navajo Nation execute and maintain an agreement as
113     provided in this Subsection (9) for the administration of the reduction of tax.
114          (b) (i) If but for Subsection (9)(a) the motor fuel is subject to a tax imposed by this
115     section:
116          (A) the state shall be paid the difference described in Subsection (9)(b)(ii) if that
117     difference is greater than $0; and
118          (B) a person may not require the state to provide a refund, a credit, or similar tax relief

119     if the difference described in Subsection (9)(b)(ii) is less than or equal to $0.
120          (ii) The difference described in Subsection (9)(b)(i) is equal to the difference between:
121          (A) the amount of tax imposed on the motor fuel by this section; less
122          (B) the tax imposed and collected by the Navajo Nation on the motor fuel.
123          (c) For purposes of Subsections (9)(a) and (b), the tax paid to the Navajo Nation under
124     a tax imposed by the Navajo Nation on the basis of the sale, use, or receipt for sale or use of
125     motor fuel does not include any interest or penalties a taxpayer may be required to pay to the
126     Navajo Nation.
127          (d) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
128     commission shall make rules governing the procedures for administering the reduction of tax
129     provided under this Subsection (9).
130          (e) The agreement required under Subsection (9)(a):
131          (i) may not:
132          (A) authorize the state to impose a tax in addition to a tax imposed under this chapter;
133          (B) provide a reduction of taxes greater than or different from the reduction described
134     in this Subsection (9); or
135          (C) affect the power of the state to establish rates of taxation;
136          (ii) shall:
137          (A) be in writing;
138          (B) be signed by:
139          (I) the chair of the commission or the chair's designee; and
140          (II) a person designated by the Navajo Nation that may bind the Navajo Nation;
141          (C) be conditioned on obtaining any approval required by federal law;
142          (D) state the effective date of the agreement; and
143          (E) state any accommodation the Navajo Nation makes related to the construction and
144     maintenance of state highways and other infrastructure within the Utah portion of the Navajo
145     Nation; and
146          (iii) may:
147          (A) notwithstanding Section 59-1-403, authorize the commission to disclose to the
148     Navajo Nation information that is:
149          (I) contained in a document filed with the commission; and

150          (II) related to the tax imposed under this section;
151          (B) provide for maintaining records by the commission or the Navajo Nation; or
152          (C) provide for inspections or audits of distributors, carriers, or retailers located or
153     doing business within the Utah portion of the Navajo Nation.
154          (f) (i) If, on or after April 1, 2001, the Navajo Nation changes the tax rate of a tax
155     imposed on motor fuel, any change in the reduction of taxes under this Subsection (9) as a
156     result of the change in the tax rate is not effective until the first day of the calendar quarter after
157     a 60-day period beginning on the date the commission receives notice:
158          (A) from the Navajo Nation; and
159          (B) meeting the requirements of Subsection (9)(f)(ii).
160          (ii) The notice described in Subsection (9)(f)(i) shall state:
161          (A) that the Navajo Nation has changed or will change the tax rate of a tax imposed on
162     motor fuel;
163          (B) the effective date of the rate change of the tax described in Subsection (9)(f)(ii)(A);
164     and
165          (C) the new rate of the tax described in Subsection (9)(f)(ii)(A).
166          (g) If the agreement required by Subsection (9)(a) terminates, a reduction of tax is not
167     permitted under this Subsection (9) beginning on the first day of the calendar quarter after a
168     30-day period beginning on the day the agreement terminates.
169          (h) If there is a conflict between this Subsection (9) and the agreement required by
170     Subsection (9)(a), this Subsection (9) governs.
171          Section 2. Section 59-13-301 is amended to read:
172          59-13-301. Tax basis -- Rate -- Exemptions -- Revenue deposited with treasurer
173     and credited to Transportation Fund -- Reduction of tax in limited circumstances.
174          (1) (a) Except as provided in Subsections (2), (3), (11), and (12) and Section
175     59-13-304, a tax is imposed [at the same rate imposed under Subsection 59-13-201(1)(a)] on
176     the:
177          (i) removal of undyed diesel fuel from any refinery;
178          (ii) removal of undyed diesel fuel from any terminal;
179          (iii) entry into the state of any undyed diesel fuel for consumption, use, sale, or
180     warehousing;

181          (iv) sale of undyed diesel fuel to any person who is not registered as a supplier under
182     this part unless the tax has been collected under this section;
183          (v) any untaxed special fuel blended with undyed diesel fuel; or
184          (vi) use of untaxed special fuel other than propane or electricity.
185          (b) The tax imposed under Subsection (1)(a) is imposed at the rate of:
186          (i) until June 30, 2016, 27 cents per gallon;
187          (ii) beginning on July 1, 2016, and until June 30, 2017, 27-1/2 cents per gallon;
188          (iii) beginning on July 1, 2017, and until June 30, 2018, 28 cents per gallon;
189          (iv) beginning on July 1, 2018, and until June 30, 2019, 28-1/2 cents per gallon; and
190          (v) beginning on or after July 1, 2019, 29 cents per gallon.
191          [(b)] (c) The tax imposed under this section shall only be imposed once upon any
192     special fuel.
193          (2) (a) No special fuel tax is imposed or collected upon dyed diesel fuel which:
194          (i) is sold or used for any purpose other than to operate or propel a motor vehicle upon
195     the public highways of the state, but this exemption applies only in those cases where the
196     purchasers or the users of special fuel establish to the satisfaction of the commission that the
197     special fuel was used for purposes other than to operate a motor vehicle upon the public
198     highways of the state; or
199          (ii) is sold to this state or any of its political subdivisions.
200          (b) No special fuel tax is imposed on undyed diesel fuel or clean fuel that is:
201          (i) sold to the United States government or any of its instrumentalities or to this state or
202     any of its political subdivisions;
203          (ii) exported from this state if proof of actual exportation on forms prescribed by the
204     commission is made within 180 days after exportation;
205          (iii) used in a vehicle off-highway;
206          (iv) used to operate a power take-off unit of a vehicle;
207          (v) used for off-highway agricultural uses;
208          (vi) used in a separately fueled engine on a vehicle that does not propel the vehicle
209     upon the highways of the state; or
210          (vii) used in machinery and equipment not registered and not required to be registered
211     for highway use.

212          (3) No tax is imposed or collected on special fuel if it is:
213          (a) (i) purchased for business use in machinery and equipment not registered and not
214     required to be registered for highway use; and
215          (ii) used pursuant to the conditions of a state implementation plan approved under Title
216     19, Chapter 2, Air Conservation Act; or
217          (b) propane or electricity.
218          (4) Upon request of a buyer meeting the requirements under Subsection (3), the
219     Division of Air Quality shall issue an exemption certificate that may be shown to a seller.
220          (5) The special fuel tax shall be paid by the supplier.
221          (6) (a) The special fuel tax shall be paid by every user who is required by Sections
222     59-13-303 and 59-13-305 to obtain a special fuel user permit and file special fuel tax reports.
223          (b) The user shall receive a refundable credit for special fuel taxes paid on purchases
224     which are delivered into vehicles and for which special fuel tax liability is reported.
225          (7) (a) Except as provided under Subsections (7)(b) and (c), all revenue received by the
226     commission from taxes and license fees under this part shall be deposited daily with the state
227     treasurer and credited to the Transportation Fund.
228          (b) An appropriation from the Transportation Fund shall be made to the commission to
229     cover expenses incurred in the administration and enforcement of this part and the collection of
230     the special fuel tax.
231          (c) Five dollars of each special fuel user trip permit fee paid under Section 59-13-303
232     may be used by the commission as a dedicated credit to cover the costs of electronic
233     credentialing as provided in Section 41-1a-303.
234          (8) The commission may either collect no tax on special fuel exported from the state
235     or, upon application, refund the tax paid.
236          (9) (a) The United States government or any of its instrumentalities, this state, or a
237     political subdivision of this state that has purchased special fuel from a supplier or from a retail
238     dealer of special fuel and has paid the tax on the special fuel as provided in this section is
239     entitled to a refund of the tax and may file with the commission for a quarterly refund in a
240     manner prescribed by the commission.
241          (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
242     commission shall make rules governing the application and refund provided for in Subsection

243     (9)(a).
244          (10) (a) The purchaser shall pay the tax on diesel fuel or clean fuel purchased for uses
245     under Subsections (2)(b)(i), (iii), (iv), (v), (vi), and (vii) and apply for a refund for the tax paid
246     as provided in Subsection (9) and this Subsection (10).
247          (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
248     commission shall make rules governing the application and refund for off-highway and
249     nonhighway uses provided under Subsections (2)(b)(iii), (iv), (vi), and (vii).
250          (c) A refund of tax paid under this part on diesel fuel used for nonhighway agricultural
251     uses shall be made in accordance with the tax return procedures under Section 59-13-202.
252          (11) (a) Beginning on April 1, 2001, a tax imposed under this section on special fuel is
253     reduced to the extent provided in Subsection (11)(b) if:
254          (i) the Navajo Nation imposes a tax on the special fuel;
255          (ii) the tax described in Subsection (11)(a)(i) is imposed without regard to whether the
256     person required to pay the tax is an enrolled member of the Navajo Nation; and
257          (iii) the commission and the Navajo Nation execute and maintain an agreement as
258     provided in this Subsection (11) for the administration of the reduction of tax.
259          (b) (i) If but for Subsection (11)(a) the special fuel is subject to a tax imposed by this
260     section:
261          (A) the state shall be paid the difference described in Subsection (11)(b)(ii) if that
262     difference is greater than $0; and
263          (B) a person may not require the state to provide a refund, a credit, or similar tax relief
264     if the difference described in Subsection (11)(b)(ii) is less than or equal to $0.
265          (ii) The difference described in Subsection (11)(b)(i) is equal to the difference
266     between:
267          (A) the amount of tax imposed on the special fuel by this section; less
268          (B) the tax imposed and collected by the Navajo Nation on the special fuel.
269          (c) For purposes of Subsections (11)(a) and (b), the tax paid to the Navajo Nation on
270     the special fuel does not include any interest or penalties a taxpayer may be required to pay to
271     the Navajo Nation.
272          (d) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
273     commission shall make rules governing the procedures for administering the reduction of tax

274     provided under this Subsection (11).
275          (e) The agreement required under Subsection (11)(a):
276          (i) may not:
277          (A) authorize the state to impose a tax in addition to a tax imposed under this chapter;
278          (B) provide a reduction of taxes greater than or different from the reduction described
279     in this Subsection (11); or
280          (C) affect the power of the state to establish rates of taxation;
281          (ii) shall:
282          (A) be in writing;
283          (B) be signed by:
284          (I) the chair of the commission or the chair's designee; and
285          (II) a person designated by the Navajo Nation that may bind the Navajo Nation;
286          (C) be conditioned on obtaining any approval required by federal law;
287          (D) state the effective date of the agreement; and
288          (E) state any accommodation the Navajo Nation makes related to the construction and
289     maintenance of state highways and other infrastructure within the Utah portion of the Navajo
290     Nation; and
291          (iii) may:
292          (A) notwithstanding Section 59-1-403, authorize the commission to disclose to the
293     Navajo Nation information that is:
294          (I) contained in a document filed with the commission; and
295          (II) related to the tax imposed under this section;
296          (B) provide for maintaining records by the commission or the Navajo Nation; or
297          (C) provide for inspections or audits of suppliers, distributors, carriers, or retailers
298     located or doing business within the Utah portion of the Navajo Nation.
299          (f) (i) If, on or after April 1, 2001, the Navajo Nation changes the tax rate of a tax
300     imposed on special fuel, any change in the amount of the reduction of taxes under this
301     Subsection (11) as a result of the change in the tax rate is not effective until the first day of the
302     calendar quarter after a 60-day period beginning on the date the commission receives notice:
303          (A) from the Navajo Nation; and
304          (B) meeting the requirements of Subsection (11)(f)(ii).

305          (ii) The notice described in Subsection (11)(f)(i) shall state:
306          (A) that the Navajo Nation has changed or will change the tax rate of a tax imposed on
307     special fuel;
308          (B) the effective date of the rate change of the tax described in Subsection
309     (11)(f)(ii)(A); and
310          (C) the new rate of the tax described in Subsection (11)(f)(ii)(A).
311          (g) If the agreement required by Subsection (11)(a) terminates, a reduction of tax is not
312     permitted under this Subsection (11) beginning on the first day of the calendar quarter after a
313     30-day period beginning on the day the agreement terminates.
314          (h) If there is a conflict between this Subsection (11) and the agreement required by
315     Subsection (11)(a), this Subsection (11) governs.
316          (12) (a) [Beginning on January 1, 2009, a] A tax imposed under this section on
317     compressed natural gas is imposed at a [reduced] rate of [8-1/2 cents per gasoline gallon
318     equivalent to be increased or decreased proportionately with any increase or decrease in the rate
319     in Subsection 59-13-201(1)(a).]:
320          (i) until June 30, 2016, 10-1/2 cents per gasoline gallon equivalent;
321          (ii) beginning on July 1, 2016, and until June 30, 2017, 12-1/2 cents per gasoline gallon
322     equivalent;
323          (iii) beginning on July 1, 2017, and until June 30, 2018, 14-1/2 cents per gasoline
324     gallon equivalent; and
325          (iv) beginning on or after July 1, 2018, 16-1/2 cents per gasoline gallon equivalent.
326          (b) [Beginning on July 1, 2011, a] A tax imposed under this section on liquified natural
327     gas is imposed at a [reduced] rate of [8-1/2 cents per gasoline gallon equivalent to be increased
328     or decreased proportionately with any increase or decrease in the rate in Subsection
329     59-13-201(1)(a).]:
330          (i) until June 30, 2016, 10-1/2 cents per gasoline gallon equivalent;
331          (ii) beginning on July 1, 2016, and until June 30, 2017, 12-1/2 cents per gasoline gallon
332     equivalent;
333          (iii) beginning on July 1, 2017, and until June 30, 2018, 14-1/2 cents per gasoline
334     gallon equivalent; and
335          (iv) beginning on or after July 1, 2018, 16-1/2 cents per gasoline gallon equivalent.

336          Section 3. Section 72-1-212 is enacted to read:
337          72-1-212. Aggregate highway system condition -- Annual report.
338          (1) Using the department's asset management system, the department shall seek to
339     maintain an aggregate highway system condition as measured by the department in 2015 for:
340          (a) roads not included on the National Highway System; and
341          (b) bridges.
342          (2) The department shall annually report to the Transportation Interim Committee of
343     the Legislature by November 30 of each year on:
344          (a) the condition of the system under Subsection (1);
345          (b) the change in condition since the last annual report required under this Subsection
346     (2); and
347          (c) progress toward achieving performance targets established under the department's
348     asset management system.
349          Section 4. Section 72-2-106 is amended to read:
350          72-2-106. Appropriations from Transportation Fund.
351          (1) On and after July 1, 1981, there is appropriated from the Transportation Fund to the
352     use of the department an amount equal to two-elevenths of the taxes collected from the motor
353     fuel tax and the special fuel tax, exclusive of the formula amount appropriated to the B and C
354     road fund and the collector road fund, to be used for highway rehabilitation.
355          (2) For fiscal years 2016, 2017, and 2018 only, $40,000,000 is annually appropriated
356     from the Transportation Fund to the department to be used for maintenance on roads classified
357     by the department as level two roads for maintenance purposes.
358          (3) For fiscal year 2018 only, $25,000,000 is appropriated from the Transportation
359     Fund to the department to be used for bridge rehabilitation projects.
360          Section 5. Section 72-2-108 is amended to read:
361          72-2-108. Apportionment of funds available for use on class B and class C roads
362     -- Bonds.
363          (1) For purposes of this section:
364          (a) "Graveled road" means a road:
365          (i) that is:
366          (A) graded; and

367          (B) drained by transverse drainage systems to prevent serious impairment of the road
368     by surface water;
369          (ii) that has an improved surface; and
370          (iii) that has a wearing surface made of:
371          (A) gravel;
372          (B) broken stone;
373          (C) slag;
374          (D) iron ore;
375          (E) shale; or
376          (F) other material that is:
377          (I) similar to a material described in Subsection (1)(a)(iii)(A) through (E); and
378          (II) coarser than sand.
379          (b) "Paved road" includes a graveled road with a chip seal surface.
380          (c) "Road mile" means a one-mile length of road, regardless of:
381          (i) the width of the road; or
382          (ii) the number of lanes into which the road is divided.
383          (d) "Weighted mileage" means the sum of the following:
384          (i) paved road miles multiplied by five; and
385          [(ii) graveled road miles multiplied by two; and]
386          [(iii)] (ii) all other road type road miles multiplied by [one] two.
387          (2) Subject to the provisions of Subsections (3) through (5), funds in the class B and
388     class C roads account shall be apportioned among counties and municipalities in the following
389     manner:
390          (a) 50% in the ratio that the class B roads weighted mileage within each county and
391     class C roads weighted mileage within each municipality bear to the total class B and class C
392     roads weighted mileage within the state; and
393          (b) 50% in the ratio that the population of a county or municipality bears to the total
394     population of the state as of the last official federal census or the United States Bureau of
395     Census estimate, whichever is most recent, except that if population estimates are not available
396     from the United States Bureau of Census, population figures shall be derived from the estimate
397     from the Utah Population Estimates Committee.

398          (3) For purposes of Subsection (2)(b), "the population of a county" means:
399          (a) the population of a county outside the corporate limits of municipalities in that
400     county, if the population of the county outside the corporate limits of municipalities in that
401     county is not less than 14% of the total population of that county, including municipalities; and
402          (b) if the population of a county outside the corporate limits of municipalities in the
403     county is less than 14% of the total population:
404          (i) the aggregate percentage of the population apportioned to municipalities in that
405     county shall be reduced by an amount equal to the difference between:
406          (A) 14%; and
407          (B) the actual percentage of population outside the corporate limits of municipalities in
408     that county; and
409          (ii) the population apportioned to the county shall be 14% of the total population of
410     that county, including incorporated municipalities.
411          (4) (a) If an apportionment under Subsection (2) for fiscal year 2014 to a county or
412     municipality with a population of less than 14,000 is less than 120% of the amount apportioned
413     to the county or municipality from the class B and class C roads account for fiscal year
414     1996-97, the department shall:
415          (i) reapportion the funds under Subsection (2) to ensure that the county or municipality
416     receives an amount equal to [120% of] the amount apportioned to the county or municipality
417     from the class B and class C roads account for fiscal year 1996-97 multiplied by the percentage
418     increase in the class B and class C roads account from fiscal year 1996-1997 to the most
419     recently completed fiscal year; and
420          (ii) decrease proportionately as provided in Subsection (4)(b) the apportionments to
421     counties and municipalities for which the reapportionment under Subsection (4)(a)(i) does not
422     apply.
423          (b) The aggregate amount of the funds that the department shall decrease
424     proportionately from the apportionments under Subsection (4)(a)(ii) is an amount equal to the
425     aggregate amount reapportioned to counties and municipalities under Subsection (4)(a)(i).
426          (5) (a) In addition to the apportionment adjustments made under Subsection (4), a
427     county or municipality that qualifies for reapportioned money under Subsection (4)(a)(i) shall
428     receive the percentage change in the class B and class C roads account compounded annually

429     beginning in fiscal year 2006-07.
430          (b) The adjustment under Subsection (5)(a) shall be made in the same way as provided
431     in Subsection (4)(a)(ii) and (b).
432          (6) The governing body of any municipality or county may issue bonds redeemable up
433     to a period of 10 years under Title 11, Chapter 14, Local Government Bonding Act, to pay the
434     costs of constructing, repairing, and maintaining class B or class C roads and may pledge class
435     B or class C road funds received pursuant to this section to pay principal, interest, premiums,
436     and reserves for the bonds.
437          Section 6. Repealer.
438          This bill repeals:
439          Section 59-13-104, Tax rate decals -- Posted on pump.
440          Section 7. Effective date.
441          This bill takes effect on July 1, 2015.