H.B. 166

1

TRANSPORTATION REVISIONS
2 2007 GENERAL SESSION
3 STATE OF UTAH
4 Chief Sponsor: Wayne A. Harper
5 Senate Sponsor: Sheldon L. Killpack
6
7 LONG TITLE
8 General Description:
9 This bill amends provisions relating to public transit.
10 Highlighted Provisions:
11 This bill:
12 . provides definitions;
13 . provides that if a public transit district comprised a geographical area consisting of
14 more than one county as the boundaries of that transit district existed on January 1,
15 2007:
16 . the counties, cities, towns, or unincorporated areas that comprised that district
17 shall be withdrawn from the public transit district as of January 1, 2008; and
18 . the public transit district shall be dissolved;
19 . provides procedures and requirements for the dissolution of the public transit
20 district;
21 . repeals provisions governing the Board of Trustees for a public transit district that
22 has more than 200,000 people residing within the district boundaries;
23 . imposes certain sales and use taxes for public transit as state imposed taxes rather
24 than local option sales and use taxes and specifies certain locations where the state
25 sales and use taxes are imposed;
26 . authorizes certain local option sales and use taxes for certain transportation
27 purposes;

28 . requires the Department of Transportation to provide public transit services to
29 counties, cities, towns, or unincorporated areas that are withdrawn from a public
30 transit district;
31 . creates public transit project development and operations divisions within the
32 Department of Transportation;
33 . enacts provisions governing the rights and obligations of employees of the
34 Department of Transportation providing public transit services;
35 . enacts provisions governing public transit facilities and services provided by the
36 Department of Transportation; and
37 . makes technical changes.
38 Monies Appropriated in this Bill:
39 None
40 Other Special Clauses:
41 This bill takes effect on January 1, 2008.
42 Utah Code Sections Affected:
43 AMENDS:
44 10-8-86, as last amended by Chapter 213, Laws of Utah 1988
45 17A-1-502, as last amended by Chapter 295, Laws of Utah 2004
46 17A-1-503, as last amended by Chapter 295, Laws of Utah 2004
47 17A-2-1016, as last amended by Chapter 136, Laws of Utah 2005
48 17A-2-1051, as last amended by Chapter 71, Laws of Utah 2005
49 17A-2-1038, as last amended by Chapters 295 and 336, Laws of Utah 2004
50 17B-2-512, as last amended by Chapters 89 and 170, Laws of Utah 2003
51 59-12-102, as last amended by Chapter 1, Laws of Utah 2006, Fourth Special Session
52 59-12-501, as last amended by Chapter 253, Laws of Utah 2006
53 59-12-502, as last amended by Chapters 253 and 329, Laws of Utah 2006
54 59-12-504, as last amended by Chapter 253, Laws of Utah 2006
55 59-12-1001, as last amended by Chapter 253, Laws of Utah 2006
56 59-12-1502, as enacted by Chapter 282, Laws of Utah 2003
57 59-12-1503, as last amended by Chapter 253, Laws of Utah 2006
58 59-12-1703, as enacted by Chapter 1, Laws of Utah 2006, Fourth Special Session

59 63-56-502, as last amended by Chapter 319, Laws of Utah 2006
60 72-1-102, as last amended by Chapter 372, Laws of Utah 2001
61 72-1-203, as last amended by Chapter 139, Laws of Utah 2006
62 72-1-204, as renumbered and amended by Chapter 270, Laws of Utah 1998
63 72-1-301, as last amended by Chapter 176, Laws of Utah 2002
64 72-1-303, as last amended by Chapter 336, Laws of Utah 2004
65 72-2-121, as last amended by Chapter 1, Laws of Utah 2006, Fourth Special Session
66 72-6-115, as last amended by Chapter 27, Laws of Utah 2001
67 72-10-102, as last amended by Chapter 183, Laws of Utah 2003
68 76-10-1503, as last amended by Chapter 151, Laws of Utah 1998
69 ENACTS:
70 17A-2-1065, Utah Code Annotated 1953
71 59-12-1801, Utah Code Annotated 1953
72 59-12-1802, Utah Code Annotated 1953
73 59-12-1803, Utah Code Annotated 1953
74 59-12-1804, Utah Code Annotated 1953
75 72-2-301, Utah Code Annotated 1953
76 72-14-101, Utah Code Annotated 1953
77 72-14-102, Utah Code Annotated 1953
78 72-14-103, Utah Code Annotated 1953
79 72-14-104, Utah Code Annotated 1953
80 72-14-105, Utah Code Annotated 1953
81 72-14-106, Utah Code Annotated 1953
82 72-14-201, Utah Code Annotated 1953
83 72-14-202, Utah Code Annotated 1953
84 72-14-203, Utah Code Annotated 1953
85 REPEALS:
86 59-12-503, as enacted by Chapter 131, Laws of Utah 1997
87
88 Be it enacted by the Legislature of the state of Utah:
89 Section 1. Section 10-8-86 is amended to read:

90 10-8-86. Organization, operation, maintenance, and funding of public
91 transportation system authorized.
92 (1) The governing body of any municipality may adopt a resolution allowing the
93 municipality to organize, operate, and maintain a public transportation system within such
94 municipality and to impose a sales and a use tax to fund the system as provided in Section
95 [ 59-12-501 ] 59-12-1803 .
96 (2) The authority granted municipalities by this section to organize, operate, and
97 maintain a public transportation system is inapplicable to a municipality located in or within
98 five highway or roadway miles of the boundary of an existing transit district, unless the
99 existing transit district consents to the organization and operation of such a system by the
100 municipality.
101 Section 2. Section 17A-1-502 is amended to read:
102 17A-1-502. Special districts to submit budgets.
103 (1) (a) Except as provided in Subsection (1)(b), within 30 days after it is approved by
104 the board, and at least 30 days before the board adopts a final budget, the board of each
105 independent special district with an annual budget of $50,000 or more shall send a copy of its
106 tentative budget and notice of the time and place for its budget hearing to:
107 (i) each of its constituent entities that has in writing requested a copy; and
108 (ii) to each of its customer agencies that has in writing requested a copy.
109 [(b) Within 30 days after it is approved by the board, and at least 30 days before the
110 board adopts a final budget, the board of a public transit district serving a population of more
111 than 200,000 people shall send a copy of its tentative budget and notice of the time and place
112 for its budget hearing to:]
113 [(i) each of its constituent entities; and]
114 [(ii) to each of its customer agencies that has in writing requested a copy.]
115 [(c)] (b) The special district shall include with the tentative budget a signature sheet
116 that includes:
117 (i) language that the constituent entity or customer agency received the tentative budget
118 and has no objection to it; and
119 (ii) a place for the chairperson or other designee of the constituent entity or customer
120 agency to sign.

121 (2) Each constituent entity and each customer agency that receives the tentative budget
122 shall review the tentative budget submitted by the district and either:
123 (a) sign the signature sheet and return it to the district; or
124 (b) attend the budget hearing or other meeting scheduled by the district to discuss the
125 objections to the proposed budget.
126 (3) (a) If any constituent entity or customer agency that received the tentative budget
127 has not returned the signature sheet to the special district within 15 calendar days after the
128 tentative budget was mailed, the special district shall send a written notice of the budget
129 hearing to each constituent entity or customer agency that did not return a signature sheet and
130 invite them to attend that hearing.
131 (b) If requested to do so by any constituent entity or customer agency, the special
132 district shall schedule a meeting to discuss the budget with the constituent entities and
133 customer agencies.
134 (c) At the budget hearing, the special district board shall:
135 (i) explain its budget and answer any questions about it;
136 (ii) specifically address any questions or objections raised by the constituent entity,
137 customer agency, or those attending the meeting; and
138 (iii) seek to resolve the objections.
139 (4) Nothing in this part prevents any special district board from approving or
140 implementing a budget over any or all constituent entity's or customer agency's protests,
141 objections, or failure to respond.
142 Section 3. Section 17A-1-503 is amended to read:
143 17A-1-503. Special districts to submit audit reports.
144 (1) [(a) Except as provided in Subsection (1)(b), within] Within 30 days after it is
145 presented to the board, the board of each independent special district with an annual budget of
146 $50,000 or more shall send a copy of any audit report to:
147 [(i)] (a) each of its constituent entities that has in writing requested a copy; and
148 [(ii)] (b) each of its customer agencies that has in writing requested a copy.
149 [(b) Within 30 days after it is presented to the board, the board of a public transit
150 district serving a population of more than 200,000 people shall send a copy of its annual audit
151 report to:]

152 [(i) each of its constituent entities; and]
153 [(ii) each of its customer agencies that has in writing requested a copy.]
154 (2) Each constituent entity and each customer agency that received the audit report
155 shall review the audit report submitted by the district and, if necessary, request a meeting with
156 the independent special district board to discuss the audit report.
157 (3) At the meeting, the special district board shall:
158 (a) answer any questions about the audit report; and
159 (b) discuss their plans to implement suggestions made by the auditor.
160 Section 4. Section 17A-2-1016 is amended to read:
161 17A-2-1016. Powers of incorporated district -- Bidding -- Eminent domain.
162 (1) As used in this section, "operator" means any city, public agency, person, firm, or
163 private corporation engaged in the transportation of passengers for hire.
164 (2) Any district incorporated under this part may:
165 (a) have perpetual succession;
166 (b) sue and be sued in all actions and proceedings and in all courts and tribunals of
167 competent jurisdiction;
168 (c) adopt a corporate seal and alter it at pleasure;
169 (d) levy and collect taxes only for paying:
170 (i) the principal and interest of bonded indebtedness of the district; or
171 (ii) any final judgment obtained against the district beyond the amount of any
172 collectable insurance or indemnity policy if the district is required by final order of any court of
173 competent jurisdiction to levy a tax to pay the judgment;
174 (e) take by grant, purchase, bequest, devise, or lease, and to hold, enjoy, lease, sell,
175 encumber, alien, or otherwise dispose of real or personal property of every kind within the
176 district;
177 (f) make contracts and enter into stipulations of any nature, including contracts and
178 stipulations:
179 (i) to indemnify and save harmless;
180 (ii) to do all acts to exercise the powers granted in this part; and
181 (iii) with any department or agency of the United States of America, of the state, or
182 with any public agency or private person, firm, or corporation upon terms and conditions the

183 board of trustees finds are in the best interests of the district;
184 (g) (i) insure against:
185 (A) loss of revenues from accident or destruction of the system or any part of the
186 system, from any cause whatsoever; or
187 (B) public liability or property damage, or against all other types of events, acts, or
188 omissions; and
189 (ii) provide in the proceedings authorizing the issuance of any bonds for the carrying of
190 any other insurance, in an amount and of such character as may be specified, and for the
191 payment of the premiums on the insurance;
192 (h) provide a public transit system for the transportation of passengers and their
193 incidental baggage;
194 (i) purchase all supplies, equipment, and materials;
195 (j) construct facilities and works, but when the expenditure required exceeds $25,000
196 construction shall be let in accordance with Title 63, Chapter 56, Utah Procurement Code;
197 (k) acquire, contract for, lease, construct, own, operate, control, or use rights-of-way,
198 rail lines, monorails, bus lines, stations, platforms, switches, yards, terminals, parking lots, any
199 facilities necessary or convenient for public transit service, and all structures necessary for
200 access by persons and vehicles;
201 (l) hire, lease, or contract for the supplying of, or management of, any facilities,
202 operations, equipment, services, employees, or management staff of any operator and provide
203 for subleases or subcontracts by the operator upon terms that are in the public interest; and
204 (m) operate feeder bus lines and other feeder services as necessary.
205 (3) (a) Bids or proposals shall be advertised through public notice as determined by the
206 board.
207 (b) The notice may include publication in a newspaper of general circulation in the
208 district, trade journal, or other method determined by the board at least once and not less than
209 ten days prior to the expiration of the period within which bids or proposals are received.
210 (c) The board may reject any and all bids or proposals and readvertise or give renotice
211 at its discretion.
212 (d) If, after rejecting bids or proposals, the board determines and declares by vote of
213 two-thirds of all its members present that in its opinion the supplies, equipment, and materials

214 may be purchased at a lower price in the open market, the board may proceed to purchase the
215 same in the open market without further observance of the provisions requiring contracts, bids
216 or proposals, advertisement, or notice.
217 (e) Contracts, in writing or otherwise, may be let without advertising for or inviting
218 bids when any repairs, alterations, or other work or the purchase of materials, supplies,
219 equipment, or other property is found by the board upon a two-thirds vote of its members
220 present to be of urgent necessity, or where the general manager certifies by affidavit that there
221 is only one source for the required supplies, equipment, and materials, or construction items.
222 (f) If any payment on a contract with a private contractor to construct facilities under
223 this section is retained or withheld, it shall be retained or withheld and released as provided in
224 Section 13-8-5 .
225 (4) (a) Installations in state highways or freeways are subject to the approval of the
226 Department of Transportation.
227 (b) It is presumed that the use of the streets, roads, highways, and other public places
228 by the district for any of the purposes permitted in this section constitutes no greater burden on
229 adjoining properties than the uses existing on July 9, 1969.
230 (c) If facilities, other than state highways or freeways referred to in Subsection (2),
231 including streets, roads, highways, pipelines, sewers, water mains, storm drains, poles, and
232 communications wires of another public agency of the state, or of a private owner must be
233 relocated, replaced, or altered in order for the district to construct or operate its system, or to
234 preserve and maintain already constructed district facilities, the facilities shall be relocated,
235 replaced, or altered with reasonable promptness by the respective public corporation, state, or
236 private owner and the district shall by prior agreement reimburse the public corporation, state,
237 or private owner for the reasonable cost incurred in relocation, replacement, or alteration.
238 (d) The district may enter into an agreement with any city or county having jurisdiction
239 over the street, road, or highway involved and, as may be provided by agreement, close any city
240 street or county road at or near the point of its interception with any district facility or provide
241 for carrying the city street or county road over or under or to a connection with the district
242 facility and may do any and all work on the city street or county road as is necessary. A city
243 street or county road may not be closed directly or indirectly by the construction of district
244 facilities except:

245 (i) pursuant to agreement; or
246 (ii) while temporarily necessary during the construction of district facilities.
247 (5) The state, a municipality, or a county may acquire private property interests within
248 its respective boundaries by eminent domain pursuant to Title 78, Chapter 34, Eminent
249 Domain, including fee simple, easements, air rights, rights-of-way, and other private property
250 interests necessary to the establishment and operation of a public transit district.
251 (6) (a) Notwithstanding the provisions of this section, if a public transit district
252 incorporated under this part comprised a geographical area consisting of more than one county
253 as the boundaries of that district existed on January 1, 2007:
254 (i) the counties, cities, towns, or unincorporated areas that comprised that district shall
255 be withdrawn from the public transit district as of January 1, 2008; and
256 (ii) the public transit district shall be dissolved in accordance with Section
257 17A-2-1065 .
258 (b) The Department of Transportation shall provide a public transit system for a
259 county, city, town, or unincorporated area that is withdrawn from a public transit district under
260 this Subsection (6) in accordance with Section 72-14-102 .
261 Section 5. Section 17A-2-1038 is amended to read:
262 17A-2-1038. Board of trustees -- Appointment -- Apportionment -- Qualifications
263 -- Quorum -- Compensation -- Terms.
264 [(1) (a) All powers, privileges, and duties vested in any incorporated district shall be
265 performed by a board of trustees.]
266 [(b) The board may delegate the exercise of any duty to any of the offices created under
267 this part.]
268 [(2) If 200,000 people or fewer reside within the district boundaries:]
269 [(a) (i) the] (1) (a) The board of trustees shall consist of[: (A)] members appointed by
270 the legislative bodies of each municipality, county, or unincorporated area within any county
271 on the basis of one member for each full unit of regularly scheduled passenger routes proposed
272 to be served by the district in each municipality or unincorporated area within any county in the
273 following calendar year[; and].
274 [(B) for] (b) For purposes of determining membership under Subsection [(2)(a)(i)(A)]
275 (1)(a), the number of service miles comprising a unit shall be determined jointly by the

276 legislative bodies of the municipalities or counties comprising the district[; and].
277 [(ii) the] (c) The board of trustees may consist of a member that is a commissioner on
278 the Transportation Commission created in Section 72-1-301 and appointed as provided in
279 Subsection [(10)] (8), who shall serve as a nonvoting, ex officio member[;].
280 [(b) members] (d) Members appointed under this Subsection [(2)] (1) shall be
281 appointed and added to the board or omitted from the board at the time scheduled routes are
282 changed, or as municipalities, counties, or unincorporated areas of counties annex to or
283 withdraw from the district using the same appointment procedures[; and].
284 [(c) for] (e) For purposes of appointing members under this Subsection [(2)(b)] (1),
285 municipalities, counties, and unincorporated areas of counties in which regularly scheduled
286 passenger routes proposed to be served by the district in the following calendar year is less than
287 a full unit, as defined in Subsection [(2)(a)] (1)(b), may combine with any other similarly
288 situated municipality or unincorporated area to form a whole unit and may appoint one member
289 for each whole unit formed.
290 [(3) (a) If more than 200,000 people reside within the district boundaries, the board of
291 trustees shall consist of 15 members appointed as described under this Subsection (3) and one
292 nonvoting, ex officio member appointed as provided in Subsection (10).]
293 [(b) Except as provided under Subsections (3)(c) and (3)(d), the board shall apportion
294 voting members to each county within the district using an average of:]
295 [(i) the proportion of population included in the district and residing within each
296 county, rounded to the nearest 1/15 of the total transit district population; and]
297 [(ii) the proportion of transit sales and use tax collected from areas included in the
298 district and within each county, rounded to the nearest 1/15 of the total transit sales and use tax
299 collected for the transit district.]
300 [(c) The board shall join an entire or partial county not apportioned a voting member
301 under this Subsection (3) with an adjacent county for representation. The combined
302 apportionment basis included in the district of both counties shall be used for the
303 apportionment.]
304 [(d) If rounding to the nearest 1/15 of the total transit district apportionment basis
305 under Subsection (3)(b) results in an apportionment of:]
306 [(i) more than 15 members, the county or combination of counties with the smallest

307 additional fraction of a whole member proportion shall have one less member apportioned to it;
308 or]
309 [(ii) less than 15 members, the county or combination of counties with the largest
310 additional fraction of a whole member proportion shall have one more member apportioned to
311 it.]
312 [(e) If the unincorporated area of a county is at least 1/15 of the district's population,
313 the county executive, with the advice and consent of the county legislative body, shall appoint
314 one voting member to represent each 1/15 of the district's population within a county's
315 unincorporated area population.]
316 [(f) If a municipality's population is at least 1/15 of the district's population, the chief
317 municipal executive, with the advice and consent of the municipal legislative body, shall
318 appoint one voting member to represent each 1/15 of the district's population within a
319 municipality.]
320 [(g) The number of voting members appointed from a county and municipalities within
321 a county under Subsections (3)(e) and (f) shall be subtracted from the county's total voting
322 member apportionment under this Subsection (3).]
323 [(h) If the entire county is within the district, the remaining voting members for the
324 county shall represent the county or combination of counties if Subsection (3)(c) applies, or the
325 municipalities within the county.]
326 [(i) If the entire county is not within the district, and the county is not joined with
327 another county under Subsection (3)(c), the remaining voting members for the county shall
328 represent a municipality or combination of municipalities.]
329 [(j) Except as provided under Subsections (3)(e) and (f), voting members representing
330 counties, combinations of counties if Subsection (3)(c) applies, or municipalities within the
331 county shall be designated and appointed by a simple majority of the chief executives of the
332 municipalities within the county or combinations of counties if Subsection (3)(c) applies. The
333 appointments shall be made by joint written agreement of the appointing municipalities, with
334 the consent and approval of the county legislative body of the county that has at least 1/15 of
335 the district's apportionment basis.]
336 [(k) Voting members representing a municipality or combination of municipalities
337 shall be designated and appointed by the chief executive officer of the municipality or simple

338 majority of chief executive officers of municipalities with the consent of the legislative body of
339 the municipality or municipalities.]
340 [(l) The appointment of voting members shall be made without regard to partisan
341 political affiliation from among citizens in the community.]
342 [(m) Each voting member shall be a bona fide resident of the municipality, county, or
343 unincorporated area or areas which the voting member is to represent for at least six months
344 before the date of appointment, and must continue in that residency to remain qualified to serve
345 as a voting member.]
346 [(n) (i) All population figures used under this section shall be derived from the most
347 recent official census or census estimate of the United States Bureau of the Census.]
348 [(ii) If population estimates are not available from the United States Bureau of Census,
349 population figures shall be derived from the estimate from the Utah Population Estimates
350 Committee.]
351 [(iii) All transit sales and use tax totals shall be obtained from the State Tax
352 Commission.]
353 [(o) (i) The board shall be apportioned as provided under this section in conjunction
354 with the decennial United States Census Bureau report every ten years.]
355 [(ii) Within 120 days following the receipt of the population estimates under this
356 Subsection (5)(k), the district shall reapportion representation on the board of trustees in
357 accordance with this section.]
358 [(iii) The board shall adopt by resolution a schedule reflecting the current and proposed
359 apportionment.]
360 [(iv) Upon adoption of the resolution, the board shall forward a copy of the resolution
361 to each of its constituent entities as defined under Section 17A-1-501 .]
362 [(v) The appointing entities gaining a new board member shall appoint a new member
363 within 30 days following receipt of the resolution.]
364 [(vi) The appointing entities losing a board member shall inform the board of which
365 member currently serving on the board will step down upon appointment of a new member
366 under Subsection (5)(k)(v).]
367 [(4)] (2) (a) Except the initial members of the board, the terms of office of the voting
368 members of the board shall be two years or until a successor is appointed, qualified, seated, and

369 has taken the oath of office.
370 (b) At the first meeting of the initial members of the board held after July 1, 2004,
371 voting members of the board shall designate by the drawing of lots for 1/2 of their number to
372 serve for one-year terms and 1/2 for two-year terms.
373 (c) A voting member may not be appointed for more than three successive full terms.
374 [(5)] (3) (a) Vacancies for voting members shall be filled by the official appointing the
375 member creating the vacancy for the unexpired term, unless the official fails to fill the vacancy
376 within 90 days.
377 (b) If the appointing official under Subsection [(2)] (1) does not fill the vacancy within
378 90 days, the board of trustees of the authority shall fill the vacancy.
379 [(c) If the appointing official under Subsection (3) does not fill the vacancy within 90
380 days, the governor, with the advice and consent of the Senate, shall fill the vacancy.]
381 [(6)] (4) (a) Each voting member may cast one vote on all questions, orders,
382 resolutions, and ordinances coming before the board of trustees.
383 (b) A majority of all voting members of the board of trustees are a quorum for the
384 transaction of business.
385 (c) The affirmative vote of a majority of all voting members present at any meeting at
386 which a quorum was initially present shall be necessary and, except as otherwise provided, is
387 sufficient to carry any order, resolution, ordinance, or proposition before the board of trustees.
388 [(7) The] (5) Each public transit district shall pay to each voting member:
389 (a) an attendance fee of $50 per board or committee meeting attended, not to exceed
390 $200 in any calendar month to any voting member; and
391 (b) reasonable mileage and expenses necessarily incurred to attend board or committee
392 meetings.
393 [(8)] (6) (a) Members of the initial board of trustees shall convene at the time and place
394 fixed by the chief executive officer of the entity initiating the proceedings.
395 (b) Immediately upon convening, the board of trustees shall elect from its voting
396 membership a president, vice president, and secretary who shall serve for a period of two years
397 or until their successors shall be elected and qualified.
398 [(9)] (7) At the time of a voting member's appointment or during a voting member's
399 tenure in office, a voting member may not hold any employment, except as an independent

400 contractor or elected public official, with a county or municipality within the district.
401 [(10)] (8) The Transportation Commission created in Section 72-1-301[ : (a) for public
402 transit districts serving a population of 200,000 people or fewer,] may appoint a commissioner
403 of the Transportation Commission to serve on the board of trustees as a nonvoting, ex officio
404 member[; and].
405 [(b) for public transit districts serving a population of more than 200,000 people, shall
406 appoint a commissioner of the Transportation Commission to serve on the board of trustees as
407 a nonvoting, ex officio member.]
408 Section 6. Section 17A-2-1051 is amended to read:
409 17A-2-1051. Members of board subject to recall.
410 (1) (a) A member of the board of trustees of a district is subject to recall at any time by
411 the governing body of the municipality, county, or unincorporated county area from which the
412 member is appointed.
413 (b) A recall of a member of the board of trustees shall be made in the same manner as
414 original appointment.
415 (c) The appointing entities shall provide written notice to the member of the board of
416 trustees being recalled.
417 (2) Upon written notice to the board, a member may resign the board member's
418 position as trustee.
419 (3) If a member of the board is recalled or resigns under this section, the vacancy shall
420 be filled in accordance with Subsection 17A-2-1038 [(5)](3).
421 Section 7. Section 17A-2-1065 is enacted to read:
422 17A-2-1065. Dissolution of multicounty public transit district.
423 (1) A public transit district incorporated under this part that comprised a geographical
424 area consisting of more than one county as the boundaries of that transit district existed on
425 January 1, 2007 shall be dissolved in accordance with this section.
426 (2) Prior to the dissolution of a public transit district described under Subsection (1):
427 (a) the outstanding debt of the district shall be:
428 (i) satisfied or discharged in connection with the dissolution; or
429 (ii) assumed by another governmental entity with the consent of all the holders of that
430 debt and all the holders of other debts of the public transit district; and

431 (b) all outstanding contracts to which the public transit district is a party shall be
432 resolved through mutual termination or the assignment of the district's rights, duties, privileges,
433 and responsibilities to another entity with the consent of the other parties to the contract.
434 (3) The terms of the members of the Board of Trustees of a public transit district
435 described under Subsection (1) appointed under Section 17A-2-1038 expire on January 1,
436 2008, and the Transportation Commission shall serve as the Board of Trustees under Section
437 17A-2-1038 for a public transit district that is subject to dissolution under Subsection (1).
438 (4) (a) (i) Any assets of the public transit district remaining after paying all debts and
439 other obligations of the public transit district shall be used to pay costs associated with the
440 dissolution process under this section.
441 (ii) Any costs of the dissolution process remaining after exhausting the remaining
442 assets of the public transit district under Subsection (4)(a)(i) shall be paid by the Board of
443 Trustees.
444 (b) Any assets of the public transit district remaining after application of Subsection
445 (4)(a) shall be distributed to the Department of Transportation to be used to provide public
446 transit services in accordance with Section 72-14-102 .
447 (5) (a) Within 30 days after completion of the requirements under Subsections (2)
448 through (4), the Board of Trustees shall file a notice with the lieutenant governor.
449 (b) The notice required under Subsection (5)(a) shall include a certification by the
450 Board of Trustees that all requirements for the dissolution have been complied with.
451 (c) Upon the lieutenant governor's issuance of the certificate of dissolution under
452 Section 67-1a-6.5 , the public transit district is dissolved.
453 Section 8. Section 17B-2-512 is amended to read:
454 17B-2-512. Protests -- Election.
455 (1) (a) An owner of private real property located within or a registered voter residing
456 within an area proposed to be annexed may protest an annexation by filing a written protest
457 with the board of trustees of the proposed annexing local district, except:
458 (i) as provided in Section 17B-2-513 ;
459 (ii) for an annexation under Section 17B-2-515 ; and
460 (iii) for an annexation proposed by a local district that receives sales and use tax funds
461 from the counties, cities, and towns within the local district that impose a sales and use tax

462 under Section 59-12-501 or 59-12-1803 .
463 (b) A protest of a boundary adjustment is not governed by this section but is governed
464 by Section 17B-2-516 .
465 (2) Each protest under Subsection (1)(a) shall be filed within 30 days after the date of
466 the public hearing under Section 17B-2-509 .
467 (3) (a) Except as provided in Subsection (4), the local district shall hold an election on
468 the proposed annexation if:
469 (i) timely protests are filed by:
470 (A) the owners of private real property that:
471 (I) is located within the area proposed to be annexed;
472 (II) covers at least 10% of the total private land area within the entire area proposed to
473 be annexed and within each applicable area; and
474 (III) is equal in assessed value to at least 10% of the assessed value of all private real
475 property within the entire area proposed to be annexed and within each applicable area; or
476 (B) registered voters residing within the entire area proposed to be annexed and within
477 each applicable area equal in number to at least 10% of the number of votes cast within the
478 entire area proposed for annexation and within each applicable area, respectively, for the office
479 of governor at the last regular general election before the filing of the petition; or
480 (ii) the proposed annexing local district is one that receives sales and use tax funds
481 from the counties, cities, and towns within the local district that impose a sales and use tax
482 under Section 59-12-501 or 59-12-1803 .
483 (b) (i) At each election held under Subsection (3)(a)(ii), the ballot question shall be
484 phrased to indicate that a voter's casting a vote for or against the annexation includes also a
485 vote for or against the imposition of the sales and use tax as provided in Section 59-12-501 .
486 (ii) Except as otherwise provided in this part, each election under Subsection (3)(a)
487 shall be governed by Title 20A, Election Code.
488 (c) If a majority of registered voters residing within the area proposed to be annexed
489 and voting on the proposal vote:
490 (i) in favor of annexation, the board of trustees shall, subject to Subsections
491 17B-2-514 (1)(b), (2), and (3), complete the annexation by adopting a resolution approving
492 annexation of the area; or

493 (ii) against annexation, the annexation process is terminated, the board may not adopt a
494 resolution approving annexation of the area, and the area proposed to be annexed may not for
495 two years be the subject of an effort under this part to annex to the same local district.
496 (4) If sufficient protests are filed under this section to require an election for a
497 proposed annexation to which the protest provisions of this section are applicable, a board of
498 trustees may, notwithstanding Subsection (3), adopt a resolution rejecting the annexation and
499 terminating the annexation process without holding an election.
500 Section 9. Section 59-12-102 is amended to read:
501 59-12-102. Definitions.
502 As used in this chapter:
503 (1) (a) "Admission or user fees" includes season passes.
504 (b) "Admission or user fees" does not include annual membership dues to private
505 organizations.
506 (2) "Agreement" means the Streamlined Sales and Use Tax Agreement described in
507 Section 59-12-102.1 .
508 (3) "Agreement combined tax rate" means the sum of the tax rates:
509 (a) listed under Subsection (4); and
510 (b) that are imposed within a local taxing jurisdiction.
511 (4) "Agreement sales and use tax" means a tax imposed under:
512 (a) Subsection 59-12-103 (2)(a)(i) or (2)(b)(iii)(A);
513 (b) Section 59-12-204 ;
514 (c) Section 59-12-401 ;
515 (d) Section 59-12-402 ;
516 (e) Section 59-12-501 ;
517 (f) Section 59-12-502 ;
518 (g) Section 59-12-703 ;
519 (h) Section 59-12-802 ;
520 (i) Section 59-12-804 ;
521 (j) Section 59-12-1001 ;
522 (k) Section 59-12-1102 ;
523 (l) Section 59-12-1302 ;

524 (m) Section 59-12-1402 ; [or]
525 (n) Section 59-12-1503 [.];
526 (o) Section 59-12-1703 ; or
527 (p) Section 59-12-1803 .
528 (5) "Aircraft" is as defined in Section 72-10-102 .
529 (6) "Alcoholic beverage" means a beverage that:
530 (a) is suitable for human consumption; and
531 (b) contains .5% or more alcohol by volume.
532 (7) "Area agency on aging" is as defined in Section 62A-3-101 .
533 (8) "Assisted amusement device" means an amusement device, skill device, or ride
534 device that is started and stopped by an individual:
535 (a) who is not the purchaser or renter of the right to use or operate the amusement
536 device, skill device, or ride device; and
537 (b) at the direction of the seller of the right to use the amusement device, skill device,
538 or ride device.
539 (9) "Assisted cleaning or washing of tangible personal property" means cleaning or
540 washing of tangible personal property if the cleaning or washing labor is primarily performed
541 by an individual:
542 (a) who is not the purchaser of the cleaning or washing of the tangible personal
543 property; and
544 (b) at the direction of the seller of the cleaning or washing of the tangible personal
545 property.
546 (10) "Authorized carrier" means:
547 (a) in the case of vehicles operated over public highways, the holder of credentials
548 indicating that the vehicle is or will be operated pursuant to both the International Registration
549 Plan and the International Fuel Tax Agreement;
550 (b) in the case of aircraft, the holder of a Federal Aviation Administration operating
551 certificate or air carrier's operating certificate; or
552 (c) in the case of locomotives, freight cars, railroad work equipment, or other rolling
553 stock, the holder of a certificate issued by the United States Surface Transportation Board.
554 (11) (a) Except as provided in Subsection (11)(b), "biomass energy" means any of the

555 following that is used as the primary source of energy to produce fuel or electricity:
556 (i) material from a plant or tree; or
557 (ii) other organic matter that is available on a renewable basis, including:
558 (A) slash and brush from forests and woodlands;
559 (B) animal waste;
560 (C) methane produced:
561 (I) at landfills; or
562 (II) as a byproduct of the treatment of wastewater residuals;
563 (D) aquatic plants; and
564 (E) agricultural products.
565 (b) "Biomass energy" does not include:
566 (i) black liquor;
567 (ii) treated woods; or
568 (iii) biomass from municipal solid waste other than methane produced:
569 (A) at landfills; or
570 (B) as a byproduct of the treatment of wastewater residuals.
571 (12) (a) "Bundled transaction" means the sale of two or more items of tangible personal
572 property if:
573 (i) one or more of the items of tangible personal property is food and food ingredients;
574 and
575 (ii) the items of tangible personal property are:
576 (A) distinct and identifiable; and
577 (B) sold for one price that is not itemized.
578 (b) "Bundled transaction" does not include the sale of tangible personal property if the
579 sales price varies, or is negotiable, on the basis of the selection by the purchaser of the items of
580 tangible personal property included in the transaction.
581 (c) For purposes of Subsection (12)(a)(ii)(A), tangible personal property that is distinct
582 and identifiable does not include:
583 (i) packaging that:
584 (A) accompanies the sale of the tangible personal property; and
585 (B) is incidental or immaterial to the sale of the tangible personal property;

586 (ii) tangible personal property provided free of charge with the purchase of another
587 item of tangible personal property; or
588 (iii) an item of tangible personal property included in the definition of "purchase
589 price."
590 (d) For purposes of Subsection (12)(c)(ii), an item of tangible personal property is
591 provided free of charge with the purchase of another item of tangible personal property if the
592 sales price of the purchased item of tangible personal property does not vary depending on the
593 inclusion of the tangible personal property provided free of charge.
594 (13) "Certified automated system" means software certified by the governing board of
595 the agreement in accordance with Section 59-12-102.1 that:
596 (a) calculates the agreement sales and use tax imposed within a local taxing
597 jurisdiction:
598 (i) on a transaction; and
599 (ii) in the states that are members of the agreement;
600 (b) determines the amount of agreement sales and use tax to remit to a state that is a
601 member of the agreement; and
602 (c) maintains a record of the transaction described in Subsection (13)(a)(i).
603 (14) "Certified service provider" means an agent certified:
604 (a) by the governing board of the agreement in accordance with Section 59-12-102.1 ;
605 and
606 (b) to perform all of a seller's sales and use tax functions for an agreement sales and
607 use tax other than the seller's obligation under Section 59-12-107.4 to remit a tax on the seller's
608 own purchases.
609 (15) (a) Subject to Subsection (15)(b), "clothing" means all human wearing apparel
610 suitable for general use.
611 (b) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
612 commission shall make rules:
613 (i) listing the items that constitute "clothing"; and
614 (ii) that are consistent with the list of items that constitute "clothing" under the
615 agreement.
616 (16) "Coal-to-liquid" means the process of converting coal into a liquid synthetic fuel.

617 (17) "Commercial use" means the use of gas, electricity, heat, coal, fuel oil, or other
618 fuels that does not constitute industrial use under Subsection (39) or residential use under
619 Subsection (76).
620 (18) (a) "Common carrier" means a person engaged in or transacting the business of
621 transporting passengers, freight, merchandise, or other property for hire within this state.
622 (b) (i) "Common carrier" does not include a person who, at the time the person is
623 traveling to or from that person's place of employment, transports a passenger to or from the
624 passenger's place of employment.
625 (ii) For purposes of Subsection (18)(b)(i), in accordance with Title 63, Chapter 46a,
626 Utah Administrative Rulemaking Act, the commission may make rules defining what
627 constitutes a person's place of employment.
628 (19) "Component part" includes:
629 (a) poultry, dairy, and other livestock feed, and their components;
630 (b) baling ties and twine used in the baling of hay and straw;
631 (c) fuel used for providing temperature control of orchards and commercial
632 greenhouses doing a majority of their business in wholesale sales, and for providing power for
633 off-highway type farm machinery; and
634 (d) feed, seeds, and seedlings.
635 (20) "Computer" means an electronic device that accepts information:
636 (a) (i) in digital form; or
637 (ii) in a form similar to digital form; and
638 (b) manipulates that information for a result based on a sequence of instructions.
639 (21) "Computer software" means a set of coded instructions designed to cause:
640 (a) a computer to perform a task; or
641 (b) automatic data processing equipment to perform a task.
642 (22) "Construction materials" means any tangible personal property that will be
643 converted into real property.
644 (23) "Delivered electronically" means delivered to a purchaser by means other than
645 tangible storage media.
646 (24) (a) "Delivery charge" means a charge:
647 (i) by a seller of:

648 (A) tangible personal property; or
649 (B) services; and
650 (ii) for preparation and delivery of the tangible personal property or services described
651 in Subsection (24)(a)(i) to a location designated by the purchaser.
652 (b) "Delivery charge" includes a charge for the following:
653 (i) transportation;
654 (ii) shipping;
655 (iii) postage;
656 (iv) handling;
657 (v) crating; or
658 (vi) packing.
659 (25) "Dietary supplement" means a product, other than tobacco, that:
660 (a) is intended to supplement the diet;
661 (b) contains one or more of the following dietary ingredients:
662 (i) a vitamin;
663 (ii) a mineral;
664 (iii) an herb or other botanical;
665 (iv) an amino acid;
666 (v) a dietary substance for use by humans to supplement the diet by increasing the total
667 dietary intake; or
668 (vi) a concentrate, metabolite, constituent, extract, or combination of any ingredient
669 described in Subsections (25)(b)(i) through (v);
670 (c) (i) except as provided in Subsection (25)(c)(ii), is intended for ingestion in:
671 (A) tablet form;
672 (B) capsule form;
673 (C) powder form;
674 (D) softgel form;
675 (E) gelcap form; or
676 (F) liquid form; or
677 (ii) notwithstanding Subsection (25)(c)(i), if the product is not intended for ingestion in
678 a form described in Subsections (25)(c)(i)(A) through (F), is not represented:

679 (A) as conventional food; and
680 (B) for use as a sole item of:
681 (I) a meal; or
682 (II) the diet; and
683 (d) is required to be labeled as a dietary supplement:
684 (i) identifiable by the "Supplemental Facts" box found on the label; and
685 (ii) as required by 21 C.F.R. Sec. 101.36.
686 (26) (a) "Direct mail" means printed material delivered or distributed by United States
687 mail or other delivery service:
688 (i) to:
689 (A) a mass audience; or
690 (B) addressees on a mailing list provided by a purchaser of the mailing list; and
691 (ii) if the cost of the printed material is not billed directly to the recipients.
692 (b) "Direct mail" includes tangible personal property supplied directly or indirectly by a
693 purchaser to a seller of direct mail for inclusion in a package containing the printed material.
694 (c) "Direct mail" does not include multiple items of printed material delivered to a
695 single address.
696 (27) (a) "Drug" means a compound, substance, or preparation, or a component of a
697 compound, substance, or preparation that is:
698 (i) recognized in:
699 (A) the official United States Pharmacopoeia;
700 (B) the official Homeopathic Pharmacopoeia of the United States;
701 (C) the official National Formulary; or
702 (D) a supplement to a publication listed in Subsections (27)(a)(i)(A) through (C);
703 (ii) intended for use in the:
704 (A) diagnosis of disease;
705 (B) cure of disease;
706 (C) mitigation of disease;
707 (D) treatment of disease; or
708 (E) prevention of disease; or
709 (iii) intended to affect:

710 (A) the structure of the body; or
711 (B) any function of the body.
712 (b) "Drug" does not include:
713 (i) food and food ingredients;
714 (ii) a dietary supplement;
715 (iii) an alcoholic beverage; or
716 (iv) a prosthetic device.
717 (28) (a) Except as provided in Subsection (28)(c), "durable medical equipment" means
718 equipment that:
719 (i) can withstand repeated use;
720 (ii) is primarily and customarily used to serve a medical purpose;
721 (iii) generally is not useful to a person in the absence of illness or injury; and
722 (iv) is not worn in or on the body.
723 (b) "Durable medical equipment" includes parts used in the repair or replacement of the
724 equipment described in Subsection (28)(a).
725 (c) Notwithstanding Subsection (28)(a), "durable medical equipment" does not include
726 mobility enhancing equipment.
727 (29) "Electronic" means:
728 (a) relating to technology; and
729 (b) having:
730 (i) electrical capabilities;
731 (ii) digital capabilities;
732 (iii) magnetic capabilities;
733 (iv) wireless capabilities;
734 (v) optical capabilities;
735 (vi) electromagnetic capabilities; or
736 (vii) capabilities similar to Subsections (29)(b)(i) through (vi).
737 (30) "Employee" is as defined in Section 59-10-401 .
738 (31) "Fixed guideway" means a public transit facility that uses and occupies:
739 (a) rail for the use of public transit; or
740 (b) a separate right-of-way for the use of public transit.

741 (32) (a) "Food and food ingredients" means substances:
742 (i) regardless of whether the substances are in:
743 (A) liquid form;
744 (B) concentrated form;
745 (C) solid form;
746 (D) frozen form;
747 (E) dried form; or
748 (F) dehydrated form; and
749 (ii) that are:
750 (A) sold for:
751 (I) ingestion by humans; or
752 (II) chewing by humans; and
753 (B) consumed for the substance's:
754 (I) taste; or
755 (II) nutritional value.
756 (b) "Food and food ingredients" includes an item described in Subsection (63)(b)(iii).
757 (c) "Food and food ingredients" does not include:
758 (i) an alcoholic beverage;
759 (ii) tobacco; or
760 (iii) prepared food.
761 (33) (a) "Fundraising sales" means sales:
762 (i) (A) made by a school; or
763 (B) made by a school student;
764 (ii) that are for the purpose of raising funds for the school to purchase equipment,
765 materials, or provide transportation; and
766 (iii) that are part of an officially sanctioned school activity.
767 (b) For purposes of Subsection (33)(a)(iii), "officially sanctioned school activity"
768 means a school activity:
769 (i) that is conducted in accordance with a formal policy adopted by the school or school
770 district governing the authorization and supervision of fundraising activities;
771 (ii) that does not directly or indirectly compensate an individual teacher or other

772 educational personnel by direct payment, commissions, or payment in kind; and
773 (iii) the net or gross revenues from which are deposited in a dedicated account
774 controlled by the school or school district.
775 (34) "Geothermal energy" means energy contained in heat that continuously flows
776 outward from the earth that is used as the sole source of energy to produce electricity.
777 (35) "Governing board of the agreement" means the governing board of the agreement
778 that is:
779 (a) authorized to administer the agreement; and
780 (b) established in accordance with the agreement.
781 (36) (a) "Hearing aid" means:
782 (i) an instrument or device having an electronic component that is designed to:
783 (A) (I) improve impaired human hearing; or
784 (II) correct impaired human hearing; and
785 (B) (I) be worn in the human ear; or
786 (II) affixed behind the human ear;
787 (ii) an instrument or device that is surgically implanted into the cochlea; or
788 (iii) a telephone amplifying device.
789 (b) "Hearing aid" does not include:
790 (i) except as provided in Subsection (36)(a)(i)(B) or (36)(a)(ii), an instrument or device
791 having an electronic component that is designed to be worn on the body;
792 (ii) except as provided in Subsection (36)(a)(iii), an assistive listening device or system
793 designed to be used by one individual, including:
794 (A) a personal amplifying system;
795 (B) a personal FM system;
796 (C) a television listening system; or
797 (D) a device or system similar to a device or system described in Subsections
798 (36)(b)(ii)(A) through (C); or
799 (iii) an assistive listening device or system designed to be used by more than one
800 individual, including:
801 (A) a device or system installed in:
802 (I) an auditorium;

803 (II) a church;
804 (III) a conference room;
805 (IV) a synagogue; or
806 (V) a theater; or
807 (B) a device or system similar to a device or system described in Subsections
808 (36)(b)(iii)(A)(I) through (V).
809 (37) (a) "Hearing aid accessory" means a hearing aid:
810 (i) component;
811 (ii) attachment; or
812 (iii) accessory.
813 (b) "Hearing aid accessory" includes:
814 (i) a hearing aid neck loop;
815 (ii) a hearing aid cord;
816 (iii) a hearing aid ear mold;
817 (iv) hearing aid tubing;
818 (v) a hearing aid ear hook; or
819 (vi) a hearing aid remote control.
820 (c) "Hearing aid accessory" does not include:
821 (i) a component, attachment, or accessory designed to be used only with an:
822 (A) instrument or device described in Subsection (36)(b)(i); or
823 (B) assistive listening device or system described in Subsection (36)(b)(ii) or (iii); or
824 (ii) a hearing aid battery.
825 (38) "Hydroelectric energy" means water used as the sole source of energy to produce
826 electricity.
827 (39) "Industrial use" means the use of natural gas, electricity, heat, coal, fuel oil, or
828 other fuels:
829 (a) in mining or extraction of minerals;
830 (b) in agricultural operations to produce an agricultural product up to the time of
831 harvest or placing the agricultural product into a storage facility, including:
832 (i) commercial greenhouses;
833 (ii) irrigation pumps;

834 (iii) farm machinery;
835 (iv) implements of husbandry as defined in Subsection 41-1a-102 (23) that are not
836 registered under Title 41, Chapter 1a, Part 2, Registration; and
837 (v) other farming activities;
838 (c) in manufacturing tangible personal property at an establishment described in SIC
839 Codes 2000 to 3999 of the 1987 Standard Industrial Classification Manual of the federal
840 Executive Office of the President, Office of Management and Budget;
841 (d) by a scrap recycler if:
842 (i) from a fixed location, the scrap recycler utilizes machinery or equipment to process
843 one or more of the following items into prepared grades of processed materials for use in new
844 products:
845 (A) iron;
846 (B) steel;
847 (C) nonferrous metal;
848 (D) paper;
849 (E) glass;
850 (F) plastic;
851 (G) textile; or
852 (H) rubber; and
853 (ii) the new products under Subsection (39)(d)(i) would otherwise be made with
854 nonrecycled materials; or
855 (e) in producing a form of energy or steam described in Subsection 54-2-1 (2)(a) by a
856 cogeneration facility as defined in Section 54-2-1 .
857 (40) (a) Except as provided in Subsection (40)(b), "installation charge" means a charge
858 for installing tangible personal property.
859 (b) Notwithstanding Subsection (40)(a), "installation charge" does not include a charge
860 for repairs or renovations of tangible personal property.
861 (41) (a) "Lease" or "rental" means a transfer of possession or control of tangible
862 personal property for:
863 (i) (A) a fixed term; or
864 (B) an indeterminate term; and

865 (ii) consideration.
866 (b) "Lease" or "rental" includes an agreement covering a motor vehicle and trailer if the
867 amount of consideration may be increased or decreased by reference to the amount realized
868 upon sale or disposition of the property as defined in Section 7701(h)(1), Internal Revenue
869 Code.
870 (c) "Lease" or "rental" does not include:
871 (i) a transfer of possession or control of property under a security agreement or
872 deferred payment plan that requires the transfer of title upon completion of the required
873 payments;
874 (ii) a transfer of possession or control of property under an agreement that requires the
875 transfer of title:
876 (A) upon completion of required payments; and
877 (B) if the payment of an option price does not exceed the greater of:
878 (I) $100; or
879 (II) 1% of the total required payments; or
880 (iii) providing tangible personal property along with an operator for a fixed period of
881 time or an indeterminate period of time if the operator is necessary for equipment to perform as
882 designed.
883 (d) For purposes of Subsection (41)(c)(iii), an operator is necessary for equipment to
884 perform as designed if the operator's duties exceed the:
885 (i) set-up of tangible personal property;
886 (ii) maintenance of tangible personal property; or
887 (iii) inspection of tangible personal property.
888 (42) "Load and leave" means delivery to a purchaser by use of a tangible storage media
889 if the tangible storage media is not physically transferred to the purchaser.
890 (43) "Local taxing jurisdiction" means a:
891 (a) county that is authorized to impose an agreement sales and use tax;
892 (b) city that is authorized to impose an agreement sales and use tax; or
893 (c) town that is authorized to impose an agreement sales and use tax.
894 (44) "Manufactured home" is as defined in Section 58-56-3 .
895 (45) For purposes of Section 59-12-104 , "manufacturing facility" means:

896 (a) an establishment described in SIC Codes 2000 to 3999 of the 1987 Standard
897 Industrial Classification Manual of the federal Executive Office of the President, Office of
898 Management and Budget;
899 (b) a scrap recycler if:
900 (i) from a fixed location, the scrap recycler utilizes machinery or equipment to process
901 one or more of the following items into prepared grades of processed materials for use in new
902 products:
903 (A) iron;
904 (B) steel;
905 (C) nonferrous metal;
906 (D) paper;
907 (E) glass;
908 (F) plastic;
909 (G) textile; or
910 (H) rubber; and
911 (ii) the new products under Subsection (45)(b)(i) would otherwise be made with
912 nonrecycled materials; or
913 (c) a cogeneration facility as defined in Section 54-2-1 .
914 (46) "Member of the immediate family of the producer" means a person who is related
915 to a producer described in Subsection 59-12-104 (20)(a) as a:
916 (a) child or stepchild, regardless of whether the child or stepchild is:
917 (i) an adopted child or adopted stepchild; or
918 (ii) a foster child or foster stepchild;
919 (b) grandchild or stepgrandchild;
920 (c) grandparent or stepgrandparent;
921 (d) nephew or stepnephew;
922 (e) niece or stepniece;
923 (f) parent or stepparent;
924 (g) sibling or stepsibling;
925 (h) spouse;
926 (i) person who is the spouse of a person described in Subsections (46)(a) through (g);

927 or
928 (j) person similar to a person described in Subsections (46)(a) through (i) as
929 determined by the commission by rule made in accordance with Title 63, Chapter 46a, Utah
930 Administrative Rulemaking Act.
931 (47) "Mobile home" is as defined in Section 58-56-3 .
932 (48) "Mobile telecommunications service" is as defined in the Mobile
933 Telecommunications Sourcing Act, 4 U.S.C. Sec. 124.
934 (49) (a) Except as provided in Subsection (49)(c), "mobility enhancing equipment"
935 means equipment that is:
936 (i) primarily and customarily used to provide or increase the ability to move from one
937 place to another;
938 (ii) appropriate for use in a:
939 (A) home; or
940 (B) motor vehicle; and
941 (iii) not generally used by persons with normal mobility.
942 (b) "Mobility enhancing equipment" includes parts used in the repair or replacement of
943 the equipment described in Subsection (49)(a).
944 (c) Notwithstanding Subsection (49)(a), "mobility enhancing equipment" does not
945 include:
946 (i) a motor vehicle;
947 (ii) equipment on a motor vehicle if that equipment is normally provided by the motor
948 vehicle manufacturer;
949 (iii) durable medical equipment; or
950 (iv) a prosthetic device.
951 (50) "Model 1 seller" means a seller that has selected a certified service provider as the
952 seller's agent to perform all of the seller's sales and use tax functions for agreement sales and
953 use taxes other than the seller's obligation under Section 59-12-107.4 to remit a tax on the
954 seller's own purchases.
955 (51) "Model 2 seller" means a seller that:
956 (a) except as provided in Subsection (51)(b), has selected a certified automated system
957 to perform the seller's sales tax functions for agreement sales and use taxes; and

958 (b) notwithstanding Subsection (51)(a), retains responsibility for remitting all of the
959 sales tax:
960 (i) collected by the seller; and
961 (ii) to the appropriate local taxing jurisdiction.
962 (52) (a) Subject to Subsection (52)(b), "model 3 seller" means a seller that has:
963 (i) sales in at least five states that are members of the agreement;
964 (ii) total annual sales revenues of at least $500,000,000;
965 (iii) a proprietary system that calculates the amount of tax:
966 (A) for an agreement sales and use tax; and
967 (B) due to each local taxing jurisdiction; and
968 (iv) entered into a performance agreement with the governing board of the agreement.
969 (b) For purposes of Subsection (52)(a), "model 3 seller" includes an affiliated group of
970 sellers using the same proprietary system.
971 (53) "Modular home" means a modular unit as defined in Section 58-56-3 .
972 (54) "Motor vehicle" is as defined in Section 41-1a-102 .
973 (55) "Oil shale" means a group of fine black to dark brown shales containing
974 bituminous material that yields petroleum upon distillation.
975 (56) (a) "Other fuels" means products that burn independently to produce heat or
976 energy.
977 (b) "Other fuels" includes oxygen when it is used in the manufacturing of tangible
978 personal property.
979 (57) "Pawnbroker" is as defined in Section 13-32a-102 .
980 (58) "Pawn transaction" is as defined in Section 13-32a-102 .
981 (59) (a) "Permanently attached to real property" means that for tangible personal
982 property attached to real property:
983 (i) the attachment of the tangible personal property to the real property:
984 (A) is essential to the use of the tangible personal property; and
985 (B) suggests that the tangible personal property will remain attached to the real
986 property in the same place over the useful life of the tangible personal property; or
987 (ii) if the tangible personal property is detached from the real property, the detachment
988 would:

989 (A) cause substantial damage to the tangible personal property; or
990 (B) require substantial alteration or repair of the real property to which the tangible
991 personal property is attached.
992 (b) "Permanently attached to real property" includes:
993 (i) the attachment of an accessory to the tangible personal property if the accessory is:
994 (A) essential to the operation of the tangible personal property; and
995 (B) attached only to facilitate the operation of the tangible personal property;
996 (ii) a temporary detachment of tangible personal property from real property for a
997 repair or renovation if the repair or renovation is performed where the tangible personal
998 property and real property are located; or
999 (iii) an attachment of the following tangible personal property to real property,
1000 regardless of whether the attachment to real property is only through a line that supplies water,
1001 electricity, gas, telephone, cable, or supplies a similar item as determined by the commission by
1002 rule made in accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act:
1003 (A) property attached to oil, gas, or water pipelines, other than the property listed in
1004 Subsection (59)(c)(iii);
1005 (B) a hot water heater;
1006 (C) a water softener system; or
1007 (D) a water filtration system, other than a water filtration system manufactured as part
1008 of a refrigerator.
1009 (c) "Permanently attached to real property" does not include:
1010 (i) the attachment of portable or movable tangible personal property to real property if
1011 that portable or movable tangible personal property is attached to real property only for:
1012 (A) convenience;
1013 (B) stability; or
1014 (C) for an obvious temporary purpose;
1015 (ii) the detachment of tangible personal property from real property other than the
1016 detachment described in Subsection (59)(b)(ii); or
1017 (iii) an attachment of the following tangible personal property to real property if the
1018 attachment to real property is only through a line that supplies water, electricity, gas, telephone,
1019 cable, or supplies a similar item as determined by the commission by rule made in accordance

1020 with Title 63, Chapter 46a, Utah Administrative Rulemaking Act:
1021 (A) a refrigerator;
1022 (B) a washer;
1023 (C) a dryer;
1024 (D) a stove;
1025 (E) a television;
1026 (F) a computer;
1027 (G) a telephone; or
1028 (H) tangible personal property similar to Subsections (59)(c)(iii)(A) through (G) as
1029 determined by the commission by rule made in accordance with Title 63, Chapter 46a, Utah
1030 Administrative Rulemaking Act.
1031 (60) "Person" includes any individual, firm, partnership, joint venture, association,
1032 corporation, estate, trust, business trust, receiver, syndicate, this state, any county, city,
1033 municipality, district, or other local governmental entity of the state, or any group or
1034 combination acting as a unit.
1035 (61) "Place of primary use":
1036 (a) for telephone service other than mobile telecommunications service, means the
1037 street address representative of where the purchaser's use of the telephone service primarily
1038 occurs, which shall be:
1039 (i) the residential street address of the purchaser; or
1040 (ii) the primary business street address of the purchaser; or
1041 (b) for mobile telecommunications service, is as defined in the Mobile
1042 Telecommunications Sourcing Act, 4 U.S.C. Sec. 124.
1043 (62) "Postproduction" means an activity related to the finishing or duplication of a
1044 medium described in Subsection 59-12-104 (56)(a).
1045 (63) (a) "Prepared food" means:
1046 (i) food:
1047 (A) sold in a heated state; or
1048 (B) heated by a seller;
1049 (ii) two or more food ingredients mixed or combined by the seller for sale as a single
1050 item; or

1051 (iii) except as provided in Subsection (63)(c), food sold with an eating utensil provided
1052 by the seller, including a:
1053 (A) plate;
1054 (B) knife;
1055 (C) fork;
1056 (D) spoon;
1057 (E) glass;
1058 (F) cup;
1059 (G) napkin; or
1060 (H) straw.
1061 (b) "Prepared food" does not include:
1062 (i) food that a seller only:
1063 (A) cuts;
1064 (B) repackages; or
1065 (C) pasteurizes; or
1066 (ii) (A) the following:
1067 (I) raw egg;
1068 (II) raw fish;
1069 (III) raw meat;
1070 (IV) raw poultry; or
1071 (V) a food containing an item described in Subsections (63)(b)(ii)(A)(I) through (IV);
1072 and
1073 (B) if the Food and Drug Administration recommends in Chapter 3, Part 401.11 of the
1074 Food and Drug Administration's Food Code that a consumer cook the items described in
1075 Subsection (63)(b)(ii)(A) to prevent food borne illness; or
1076 (iii) the following if sold without eating utensils provided by the seller:
1077 (A) food and food ingredients sold by a seller if the seller's proper primary
1078 classification under the 2002 North American Industry Classification System of the federal
1079 Executive Office of the President, Office of Management and Budget, is manufacturing in
1080 Sector 311, Food Manufacturing, except for Subsector 3118, Bakeries and Tortilla
1081 Manufacturing;

1082 (B) food and food ingredients sold in an unheated state:
1083 (I) by weight or volume; and
1084 (II) as a single item; or
1085 (C) a bakery item, including:
1086 (I) a bagel;
1087 (II) a bar;
1088 (III) a biscuit;
1089 (IV) bread;
1090 (V) a bun;
1091 (VI) a cake;
1092 (VII) a cookie;
1093 (VIII) a croissant;
1094 (IX) a danish;
1095 (X) a donut;
1096 (XI) a muffin;
1097 (XII) a pastry;
1098 (XIII) a pie;
1099 (XIV) a roll;
1100 (XV) a tart;
1101 (XVI) a torte; or
1102 (XVII) a tortilla.
1103 (c) Notwithstanding Subsection (63)(a)(iii), an eating utensil provided by the seller
1104 does not include the following used to transport the food:
1105 (i) a container; or
1106 (ii) packaging.
1107 (64) "Prescription" means an order, formula, or recipe that is issued:
1108 (a) (i) orally;
1109 (ii) in writing;
1110 (iii) electronically; or
1111 (iv) by any other manner of transmission; and
1112 (b) by a licensed practitioner authorized by the laws of a state.

1113 (65) (a) Except as provided in Subsection (65)(b)(ii) or (iii), "prewritten computer
1114 software" means computer software that is not designed and developed:
1115 (i) by the author or other creator of the computer software; and
1116 (ii) to the specifications of a specific purchaser.
1117 (b) "Prewritten computer software" includes:
1118 (i) a prewritten upgrade to computer software if the prewritten upgrade to the computer
1119 software is not designed and developed:
1120 (A) by the author or other creator of the computer software; and
1121 (B) to the specifications of a specific purchaser;
1122 (ii) notwithstanding Subsection (65)(a), computer software designed and developed by
1123 the author or other creator of the computer software to the specifications of a specific purchaser
1124 if the computer software is sold to a person other than the purchaser; or
1125 (iii) notwithstanding Subsection (65)(a) and except as provided in Subsection (65)(c),
1126 prewritten computer software or a prewritten portion of prewritten computer software:
1127 (A) that is modified or enhanced to any degree; and
1128 (B) if the modification or enhancement described in Subsection (65)(b)(iii)(A) is
1129 designed and developed to the specifications of a specific purchaser.
1130 (c) Notwithstanding Subsection (65)(b)(iii), "prewritten computer software" does not
1131 include a modification or enhancement described in Subsection (65)(b)(iii) if the charges for
1132 the modification or enhancement are:
1133 (i) reasonable; and
1134 (ii) separately stated on the invoice or other statement of price provided to the
1135 purchaser.
1136 (66) (a) "Prosthetic device" means a device that is worn on or in the body to:
1137 (i) artificially replace a missing portion of the body;
1138 (ii) prevent or correct a physical deformity or physical malfunction; or
1139 (iii) support a weak or deformed portion of the body.
1140 (b) "Prosthetic device" includes:
1141 (i) parts used in the repairs or renovation of a prosthetic device; or
1142 (ii) replacement parts for a prosthetic device.
1143 (c) "Prosthetic device" does not include:

1144 (i) corrective eyeglasses;
1145 (ii) contact lenses;
1146 (iii) hearing aids; or
1147 (iv) dental prostheses.
1148 (67) (a) "Protective equipment" means an item:
1149 (i) for human wear; and
1150 (ii) that is:
1151 (A) designed as protection:
1152 (I) to the wearer against injury or disease; or
1153 (II) against damage or injury of other persons or property; and
1154 (B) not suitable for general use.
1155 (b) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
1156 commission shall make rules:
1157 (i) listing the items that constitute "protective equipment"; and
1158 (ii) that are consistent with the list of items that constitute "protective equipment"
1159 under the agreement.
1160 (68) (a) "Purchase price" and "sales price" mean the total amount of consideration:
1161 (i) valued in money; and
1162 (ii) for which tangible personal property or services are:
1163 (A) sold;
1164 (B) leased; or
1165 (C) rented.
1166 (b) "Purchase price" and "sales price" include:
1167 (i) the seller's cost of the tangible personal property or services sold;
1168 (ii) expenses of the seller, including:
1169 (A) the cost of materials used;
1170 (B) a labor cost;
1171 (C) a service cost;
1172 (D) interest;
1173 (E) a loss;
1174 (F) the cost of transportation to the seller; or

1175 (G) a tax imposed on the seller; or
1176 (iii) a charge by the seller for any service necessary to complete the sale.
1177 (c) "Purchase price" and "sales price" do not include:
1178 (i) a discount:
1179 (A) in a form including:
1180 (I) cash;
1181 (II) term; or
1182 (III) coupon;
1183 (B) that is allowed by a seller;
1184 (C) taken by a purchaser on a sale; and
1185 (D) that is not reimbursed by a third party; or
1186 (ii) the following if separately stated on an invoice, bill of sale, or similar document
1187 provided to the purchaser:
1188 (A) the amount of a trade-in;
1189 (B) the following from credit extended on the sale of tangible personal property or
1190 services:
1191 (I) interest charges;
1192 (II) financing charges; or
1193 (III) carrying charges;
1194 (C) a tax or fee legally imposed directly on the consumer;
1195 (D) a delivery charge; or
1196 (E) an installation charge.
1197 (69) "Purchaser" means a person to whom:
1198 (a) a sale of tangible personal property is made; or
1199 (b) a service is furnished.
1200 (70) "Regularly rented" means:
1201 (a) rented to a guest for value three or more times during a calendar year; or
1202 (b) advertised or held out to the public as a place that is regularly rented to guests for
1203 value.
1204 (71) "Renewable energy" means:
1205 (a) biomass energy;

1206 (b) hydroelectric energy;
1207 (c) geothermal energy;
1208 (d) solar energy; or
1209 (e) wind energy.
1210 (72) (a) "Renewable energy production facility" means a facility that:
1211 (i) uses renewable energy to produce electricity; and
1212 (ii) has a production capacity of 20 kilowatts or greater.
1213 (b) A facility is a renewable energy production facility regardless of whether the
1214 facility is:
1215 (i) connected to an electric grid; or
1216 (ii) located on the premises of an electricity consumer.
1217 (73) "Rental" is as defined in Subsection (41).
1218 (74) "Repairs or renovations of tangible personal property" means:
1219 (a) a repair or renovation of tangible personal property that is not permanently attached
1220 to real property; or
1221 (b) attaching tangible personal property to other tangible personal property if the other
1222 tangible personal property to which the tangible personal property is attached is not
1223 permanently attached to real property.
1224 (75) "Research and development" means the process of inquiry or experimentation
1225 aimed at the discovery of facts, devices, technologies, or applications and the process of
1226 preparing those devices, technologies, or applications for marketing.
1227 (76) "Residential use" means the use in or around a home, apartment building, sleeping
1228 quarters, and similar facilities or accommodations.
1229 (77) "Retail sale" or "sale at retail" means a sale, lease, or rental for a purpose other
1230 than:
1231 (a) resale;
1232 (b) sublease; or
1233 (c) subrent.
1234 (78) (a) "Retailer" means any person engaged in a regularly organized business in
1235 tangible personal property or any other taxable transaction under Subsection 59-12-103 (1), and
1236 who is selling to the user or consumer and not for resale.

1237 (b) "Retailer" includes commission merchants, auctioneers, and any person regularly
1238 engaged in the business of selling to users or consumers within the state.
1239 (79) (a) "Sale" means any transfer of title, exchange, or barter, conditional or
1240 otherwise, in any manner, of tangible personal property or any other taxable transaction under
1241 Subsection 59-12-103 (1), for consideration.
1242 (b) "Sale" includes:
1243 (i) installment and credit sales;
1244 (ii) any closed transaction constituting a sale;
1245 (iii) any sale of electrical energy, gas, services, or entertainment taxable under this
1246 chapter;
1247 (iv) any transaction if the possession of property is transferred but the seller retains the
1248 title as security for the payment of the price; and
1249 (v) any transaction under which right to possession, operation, or use of any article of
1250 tangible personal property is granted under a lease or contract and the transfer of possession
1251 would be taxable if an outright sale were made.
1252 (80) "Sale at retail" is as defined in Subsection (77).
1253 (81) "Sale-leaseback transaction" means a transaction by which title to tangible
1254 personal property that is subject to a tax under this chapter is transferred:
1255 (a) by a purchaser-lessee;
1256 (b) to a lessor;
1257 (c) for consideration; and
1258 (d) if:
1259 (i) the purchaser-lessee paid sales and use tax on the purchaser-lessee's initial purchase
1260 of the tangible personal property;
1261 (ii) the sale of the tangible personal property to the lessor is intended as a form of
1262 financing:
1263 (A) for the property; and
1264 (B) to the purchaser-lessee; and
1265 (iii) in accordance with generally accepted accounting principles, the purchaser-lessee
1266 is required to:
1267 (A) capitalize the property for financial reporting purposes; and

1268 (B) account for the lease payments as payments made under a financing arrangement.
1269 (82) "Sales price" is as defined in Subsection (68).
1270 (83) (a) "Sales relating to schools" means the following sales by, amounts paid to, or
1271 amounts charged by a school:
1272 (i) sales that are directly related to the school's educational functions or activities
1273 including:
1274 (A) the sale of:
1275 (I) textbooks;
1276 (II) textbook fees;
1277 (III) laboratory fees;
1278 (IV) laboratory supplies; or
1279 (V) safety equipment;
1280 (B) the sale of a uniform, protective equipment, or sports or recreational equipment
1281 that:
1282 (I) a student is specifically required to wear as a condition of participation in a
1283 school-related event or school-related activity; and
1284 (II) is not readily adaptable to general or continued usage to the extent that it takes the
1285 place of ordinary clothing;
1286 (C) sales of the following if the net or gross revenues generated by the sales are
1287 deposited into a school district fund or school fund dedicated to school meals:
1288 (I) food and food ingredients; or
1289 (II) prepared food; or
1290 (D) transportation charges for official school activities; or
1291 (ii) amounts paid to or amounts charged by a school for admission to a school-related
1292 event or school-related activity.
1293 (b) "Sales relating to schools" does not include:
1294 (i) bookstore sales of items that are not educational materials or supplies;
1295 (ii) except as provided in Subsection (83)(a)(i)(B):
1296 (A) clothing;
1297 (B) clothing accessories or equipment;
1298 (C) protective equipment; or

1299 (D) sports or recreational equipment; or
1300 (iii) amounts paid to or amounts charged by a school for admission to a school-related
1301 event or school-related activity if the amounts paid or charged are passed through to a person:
1302 (A) other than a:
1303 (I) school;
1304 (II) nonprofit organization authorized by a school board or a governing body of a
1305 private school to organize and direct a competitive secondary school activity; or
1306 (III) nonprofit association authorized by a school board or a governing body of a
1307 private school to organize and direct a competitive secondary school activity; and
1308 (B) that is required to collect sales and use taxes under this chapter.
1309 (c) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
1310 commission may make rules defining the term "passed through."
1311 (84) For purposes of this section and Section 59-12-104 , "school" means:
1312 (a) an elementary school or a secondary school that:
1313 (i) is a:
1314 (A) public school; or
1315 (B) private school; and
1316 (ii) provides instruction for one or more grades kindergarten through 12; or
1317 (b) a public school district.
1318 (85) "Seller" means a person that makes a sale, lease, or rental of:
1319 (a) tangible personal property; or
1320 (b) a service.
1321 (86) (a) "Semiconductor fabricating, processing, research, or development materials"
1322 means tangible personal property:
1323 (i) used primarily in the process of:
1324 (A) (I) manufacturing a semiconductor;
1325 (II) fabricating a semiconductor; or
1326 (III) research or development of a:
1327 (Aa) semiconductor; or
1328 (Bb) semiconductor manufacturing process; or
1329 (B) maintaining an environment suitable for a semiconductor; or

1330 (ii) consumed primarily in the process of:
1331 (A) (I) manufacturing a semiconductor;
1332 (II) fabricating a semiconductor; or
1333 (III) research or development of a:
1334 (Aa) semiconductor; or
1335 (Bb) semiconductor manufacturing process; or
1336 (B) maintaining an environment suitable for a semiconductor.
1337 (b) "Semiconductor fabricating, processing, research, or development materials"
1338 includes:
1339 (i) parts used in the repairs or renovations of tangible personal property described in
1340 Subsection (86)(a); or
1341 (ii) a chemical, catalyst, or other material used to:
1342 (A) produce or induce in a semiconductor a:
1343 (I) chemical change; or
1344 (II) physical change;
1345 (B) remove impurities from a semiconductor; or
1346 (C) improve the marketable condition of a semiconductor.
1347 (87) "Senior citizen center" means a facility having the primary purpose of providing
1348 services to the aged as defined in Section 62A-3-101 .
1349 (88) "Simplified electronic return" means the electronic return:
1350 (a) described in Section 318(C) of the agreement; and
1351 (b) approved by the governing board of the agreement.
1352 (89) "Solar energy" means the sun used as the sole source of energy for producing
1353 electricity.
1354 (90) (a) "Sports or recreational equipment" means an item:
1355 (i) designed for human use; and
1356 (ii) that is:
1357 (A) worn in conjunction with:
1358 (I) an athletic activity; or
1359 (II) a recreational activity; and
1360 (B) not suitable for general use.

1361 (b) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
1362 commission shall make rules:
1363 (i) listing the items that constitute "sports or recreational equipment"; and
1364 (ii) that are consistent with the list of items that constitute "sports or recreational
1365 equipment" under the agreement.
1366 (91) "State" means the state of Utah, its departments, and agencies.
1367 (92) "Storage" means any keeping or retention of tangible personal property or any
1368 other taxable transaction under Subsection 59-12-103 (1), in this state for any purpose except
1369 sale in the regular course of business.
1370 (93) (a) "Tangible personal property" means personal property that:
1371 (i) may be:
1372 (A) seen;
1373 (B) weighed;
1374 (C) measured;
1375 (D) felt; or
1376 (E) touched; or
1377 (ii) is in any manner perceptible to the senses.
1378 (b) "Tangible personal property" includes:
1379 (i) electricity;
1380 (ii) water;
1381 (iii) gas;
1382 (iv) steam; or
1383 (v) prewritten computer software.
1384 (94) "Tar sands" means impregnated sands that yield mixtures of liquid hydrocarbon
1385 and require further processing other than mechanical blending before becoming finished
1386 petroleum products.
1387 (95) (a) "Telecommunications enabling or facilitating equipment, machinery, or
1388 software" means an item listed in Subsection (95)(b) if that item is purchased or leased
1389 primarily to enable or facilitate one or more of the following to function:
1390 (i) telecommunications switching or routing equipment, machinery, or software; or
1391 (ii) telecommunications transmission equipment, machinery, or software.

1392 (b) The following apply to Subsection (95)(a):
1393 (i) a pole;
1394 (ii) software;
1395 (iii) a supplementary power supply;
1396 (iv) temperature or environmental equipment or machinery;
1397 (v) test equipment;
1398 (vi) a tower; or
1399 (vii) equipment, machinery, or software that functions similarly to an item listed in
1400 Subsections (95)(b)(i) through (vi) as determined by the commission by rule made in
1401 accordance with Subsection (95)(c).
1402 (c) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
1403 commission may by rule define what constitutes equipment, machinery, or software that
1404 functions similarly to an item listed in Subsections (95)(b)(i) through (vi).
1405 (96) "Telecommunications equipment, machinery, or software required for 911
1406 service" means equipment, machinery, or software that is required to comply with 47 C.F.R.
1407 Sec. 20.18.
1408 (97) "Telecommunications maintenance or repair equipment, machinery, or software"
1409 means equipment, machinery, or software purchased or leased primarily to maintain or repair
1410 one or more of the following, regardless of whether the equipment, machinery, or software is
1411 purchased or leased as a spare part or as an upgrade or modification to one or more of the
1412 following:
1413 (a) telecommunications enabling or facilitating equipment, machinery, or software;
1414 (b) telecommunications switching or routing equipment, machinery, or software; or
1415 (c) telecommunications transmission equipment, machinery, or software.
1416 (98) (a) "Telecommunications switching or routing equipment, machinery, or software"
1417 means an item listed in Subsection (98)(b) if that item is purchased or leased primarily for
1418 switching or routing:
1419 (i) voice communications;
1420 (ii) data communications; or
1421 (iii) telephone service.
1422 (b) The following apply to Subsection (98)(a):

1423 (i) a bridge;
1424 (ii) a computer;
1425 (iii) a cross connect;
1426 (iv) a modem;
1427 (v) a multiplexer;
1428 (vi) plug in circuitry;
1429 (vii) a router;
1430 (viii) software;
1431 (ix) a switch; or
1432 (x) equipment, machinery, or software that functions similarly to an item listed in
1433 Subsections (98)(b)(i) through (ix) as determined by the commission by rule made in
1434 accordance with Subsection (98)(c).
1435 (c) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
1436 commission may by rule define what constitutes equipment, machinery, or software that
1437 functions similarly to an item listed in Subsections (98)(b)(i) through (ix).
1438 (99) (a) "Telecommunications transmission equipment, machinery, or software" means
1439 an item listed in Subsection (99)(b) if that item is purchased or leased primarily for sending,
1440 receiving, or transporting:
1441 (i) voice communications;
1442 (ii) data communications; or
1443 (iii) telephone service.
1444 (b) The following apply to Subsection (99)(a):
1445 (i) an amplifier;
1446 (ii) a cable;
1447 (iii) a closure;
1448 (iv) a conduit;
1449 (v) a controller;
1450 (vi) a duplexer;
1451 (vii) a filter;
1452 (viii) an input device;
1453 (ix) an input/output device;

1454 (x) an insulator;
1455 (xi) microwave machinery or equipment;
1456 (xii) an oscillator;
1457 (xiii) an output device;
1458 (xiv) a pedestal;
1459 (xv) a power converter;
1460 (xvi) a power supply;
1461 (xvii) a radio channel;
1462 (xviii) a radio receiver;
1463 (xix) a radio transmitter;
1464 (xx) a repeater;
1465 (xxi) software;
1466 (xxii) a terminal;
1467 (xxiii) a timing unit;
1468 (xxiv) a transformer;
1469 (xxv) a wire; or
1470 (xxvi) equipment, machinery, or software that functions similarly to an item listed in
1471 Subsections (99)(b)(i) through (xxv) as determined by the commission by rule made in
1472 accordance with Subsection (99)(c).
1473 (c) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
1474 commission may by rule define what constitutes equipment, machinery, or software that
1475 functions similarly to an item listed in Subsections (99)(b)(i) through (xxv).
1476 (100) (a) "Telephone service" means a two-way transmission:
1477 (i) by:
1478 (A) wire;
1479 (B) radio;
1480 (C) lightwave; or
1481 (D) other electromagnetic means; and
1482 (ii) of one or more of the following:
1483 (A) a sign;
1484 (B) a signal;

1485 (C) writing;
1486 (D) an image;
1487 (E) sound;
1488 (F) a message;
1489 (G) data; or
1490 (H) other information of any nature.
1491 (b) "Telephone service" includes:
1492 (i) mobile telecommunications service;
1493 (ii) private communications service; or
1494 (iii) automated digital telephone answering service.
1495 (c) "Telephone service" does not include a service or a transaction that a state or a
1496 political subdivision of a state is prohibited from taxing as of July 1, 2001, under the Internet
1497 Tax Freedom Act, Pub. L. No. 105-277.
1498 (101) Notwithstanding where a call is billed or paid, "telephone service address"
1499 means:
1500 (a) if the location described in this Subsection (101)(a) is known, the location of the
1501 telephone service equipment:
1502 (i) to which a call is charged; and
1503 (ii) from which the call originates or terminates;
1504 (b) if the location described in Subsection (101)(a) is not known but the location
1505 described in this Subsection (101)(b) is known, the location of the origination point of the
1506 signal of the telephone service first identified by:
1507 (i) the telecommunications system of the seller; or
1508 (ii) if the system used to transport the signal is not that of the seller, information
1509 received by the seller from its service provider; or
1510 (c) if the locations described in Subsection (101)(a) or (b) are not known, the location
1511 of a purchaser's primary place of use.
1512 (102) (a) "Telephone service provider" means a person that:
1513 (i) owns, controls, operates, or manages a telephone service; and
1514 (ii) engages in an activity described in Subsection (102)(a)(i) for the shared use with or
1515 resale to any person of the telephone service.

1516 (b) A person described in Subsection (102)(a) is a telephone service provider whether
1517 or not the Public Service Commission of Utah regulates:
1518 (i) that person; or
1519 (ii) the telephone service that the person owns, controls, operates, or manages.
1520 (103) "Tobacco" means:
1521 (a) a cigarette;
1522 (b) a cigar;
1523 (c) chewing tobacco;
1524 (d) pipe tobacco; or
1525 (e) any other item that contains tobacco.
1526 (104) "Unassisted amusement device" means an amusement device, skill device, or
1527 ride device that is started and stopped by the purchaser or renter of the right to use or operate
1528 the amusement device, skill device, or ride device.
1529 (105) (a) "Use" means the exercise of any right or power over tangible personal
1530 property under Subsection 59-12-103 (1), incident to the ownership or the leasing of that
1531 property, item, or service.
1532 (b) "Use" does not include the sale, display, demonstration, or trial of that property in
1533 the regular course of business and held for resale.
1534 (106) (a) Subject to Subsection (106)(b), "vehicle" means the following that are
1535 required to be titled, registered, or titled and registered:
1536 (i) an aircraft as defined in Section 72-10-102 ;
1537 (ii) a vehicle as defined in Section 41-1a-102 ;
1538 (iii) an off-highway vehicle as defined in Section 41-22-2 ; or
1539 (iv) a vessel as defined in Section 41-1a-102 .
1540 (b) For purposes of Subsection 59-12-104 (33) only, "vehicle" includes:
1541 (i) a vehicle described in Subsection (106)(a); or
1542 (ii) (A) a locomotive;
1543 (B) a freight car;
1544 (C) railroad work equipment; or
1545 (D) other railroad rolling stock.
1546 (107) "Vehicle dealer" means a person engaged in the business of buying, selling, or

1547 exchanging a vehicle as defined in Subsection (106).
1548 (108) (a) Except as provided in Subsection (108)(b), "waste energy facility" means a
1549 facility that generates electricity:
1550 (i) using as the primary source of energy waste materials that would be placed in a
1551 landfill or refuse pit if it were not used to generate electricity, including:
1552 (A) tires;
1553 (B) waste coal; or
1554 (C) oil shale; and
1555 (ii) in amounts greater than actually required for the operation of the facility.
1556 (b) "Waste energy facility" does not include a facility that incinerates:
1557 (i) municipal solid waste;
1558 (ii) hospital waste as defined in 40 C.F.R. 60.51c; or
1559 (iii) medical/infectious waste as defined in 40 C.F.R. 60.51c.
1560 (109) "Watercraft" means a vessel as defined in Section 73-18-2 .
1561 (110) "Wind energy" means wind used as the sole source of energy to produce
1562 electricity.
1563 (111) "ZIP Code" means a Zoning Improvement Plan Code assigned to a geographic
1564 location by the United States Postal Service.
1565 Section 10. Section 59-12-501 is amended to read:
1566 Part 5. State Public Transportation Taxes
1567 59-12-501. State public transportation tax -- Base -- Rate.
1568 (1) [(a) (i) In addition to other sales and use taxes, any county, city, or town within a
1569 transit district organized under Title 17A, Chapter 2, Part 10, Utah Public Transit District Act,
1570 may impose a sales and use tax of up to] Beginning on January 1, 2008, a state tax of .25% is
1571 imposed on the transactions described in Subsection 59-12-103 (1) [located within the county,
1572 city, or town,] to fund a state public [transportation] transit system.
1573 [(ii)] (2) Notwithstanding Subsection (1)[(a)(i), a county, city, or town may not
1574 impose], a tax under this section may not be imposed on[: (A)] the sales and uses described in
1575 Section 59-12-104 to the extent the sales and uses are exempt from taxation under Section
1576 59-12-104 [; and].
1577 [(B) any amounts paid or charged by a seller that collects a tax under Subsection

1578 59-12-107 (1)(b).]
1579 (3) The tax imposed by Subsection (1) shall be imposed within the boundaries of a
1580 geographical area that were within the boundaries of a transit district:
1581 (a) organized under Title 17A, Chapter 2, Part 10, Utah Public Transit District Act;
1582 (b) as the boundaries of that transit district existed on January 1, 2007; and
1583 (c) if that transit district was comprised of a geographical area consisting of more than
1584 one county.
1585 [(b)] (4) For purposes of this [Subsection (1)] section, the location of a transaction
1586 shall be determined in accordance with Section 59-12-207 .
1587 [(c) (i) A county, city, or town may impose a tax under this section only if the
1588 governing body of the county, city, or town, by resolution, submits the proposal to all the
1589 qualified voters within the county, city, or town for approval at a general or special election
1590 conducted in the manner provided by statute.]
1591 [(ii) An election under Subsection 17B-2-512 (3)(a)(ii) approving the annexation of an
1592 area to a public transit district or local district and approving for that annexed area the sales and
1593 use tax authorized by this section satisfies the election requirement of Subsection (1)(c)(i) for
1594 the area to be annexed to the public transit district or local district.]
1595 [(2) (a) If only a portion of a county is included within a public transit district, the
1596 proposal may be submitted only to the qualified voters residing within the boundaries of the
1597 proposed or existing public transit district.]
1598 [(b) Notice of any such election shall be given by the county, city, or town governing
1599 body 15 days in advance in the manner prescribed by statute.]
1600 [(c) If a majority of the voters voting in such election approve the proposal, it shall
1601 become effective on the date provided by the county, city, or town governing body.]
1602 [(3) This section may not be construed to require an election in jurisdictions where
1603 voters have previously approved a public transit sales or use tax.]
1604 (5) Revenue generated by a tax under this section shall be:
1605 (a) deposited in the Public Transit Fund created by Section 72-2-301; and
1606 (b) expended as provided in Section 72-2-301 .
1607 Section 11. Section 59-12-502 is amended to read:
1608 59-12-502. State tax for fixed guideway, expanded public transportation system,

1609 and interstate improvements -- Base -- Rate.
1610 (1) [(a) (i) In addition to other sales and use taxes, including the public transit district
1611 tax authorized by Section 59-12-501 , a county, city, or town within a transit district organized
1612 under Title 17A, Chapter 2, Part 10, Utah Public Transit District Act, may impose a sales and
1613 use tax of] Beginning on January 1, 2008, a state tax of .25% is imposed on the transactions
1614 described in Subsection 59-12-103 (1) [located within the county, city, or town,] to fund a fixed
1615 guideway and expanded public transportation system.
1616 [(ii)] (2) Notwithstanding Subsection (1)[(a)(i), a county, city, or town may not
1617 impose], a tax under this section may not be imposed on[: (A)] the sales and uses described in
1618 Section 59-12-104 to the extent the sales and uses are exempt from taxation under Section
1619 59-12-104 [; and].
1620 [(B) any amounts paid or charged by a seller that collects a tax under Subsection
1621 59-12-107 (1)(b).]
1622 (3) The tax imposed by Subsection (1) shall be imposed within the boundaries of the
1623 following if the following imposed a tax under this section on January 1, 2007:
1624 (a) a county of the first class, including the cities and towns within the boundaries of
1625 that county of the first class;
1626 (b) a county of the second class, including the cities and towns within the boundaries of
1627 that county of the second class; or
1628 (c) a combination of Subsections (3)(a) and (b).
1629 [(b)] (4) For purposes of this [Subsection (1)] section, the location of a transaction
1630 shall be determined in accordance with Section 59-12-207 .
1631 [(c) (i) A county, city, or town may impose the tax under this section only if the
1632 governing body of the county, city, or town submits, by resolution, the proposal to all the
1633 qualified voters within the county, city, or town for approval at a general or special election
1634 conducted in the manner provided by statute.]
1635 [(ii) Notice of the election under Subsection (1)(c)(i) shall be given by the county, city,
1636 or town governing body 15 days in advance in the manner prescribed by statute.]
1637 [(2) If the majority of the voters voting in this election approve the proposal, it shall
1638 become effective on the date provided by the county, city, or town governing body.]
1639 [(3) (a) This section may not be construed to require an election in jurisdictions where

1640 voters have previously approved a public transit sales or use tax.]
1641 [(b) This section shall be construed to require an election to impose the sales and use
1642 tax authorized by this section, including jurisdictions where the voters have previously
1643 approved the sales and use tax authorized by Section 59-12-501 , but this section may not be
1644 construed to affect the sales and use tax authorized by Section 59-12-501 .]
1645 [(4) No public funds shall be spent to promote the required election.]
1646 (5) [(a)] Notwithstanding [the designated use of revenues in] Subsection (1), of the
1647 revenues generated by the state tax imposed under this section [by any] within the boundaries
1648 of a county of the first class, including the cities and towns within the boundaries of that county
1649 of the first class:
1650 [(i)] (a) 75% shall be allocated to fund a fixed guideway and expanded public
1651 transportation system; and
1652 [(ii)] (b) [except as provided in Subsection (5)(b),] 25% shall be allocated to fund new
1653 construction, major renovations, and improvements to Interstate 15 and state highways within
1654 [the] that county of the first class and to pay any debt service and bond issuance costs related to
1655 those projects.
1656 [(b) Notwithstanding the designated use of revenues in Subsection (1), beginning on
1657 July 1, 2006, and ending on July 1, 2007, a county of the first class may expend an amount not
1658 to exceed $3,500,000 of the revenues described in Subsection (5)(a)(ii) for expenses relating to
1659 reconfiguring railroad curves within that county to reduce rail congestion.]
1660 [(6) A county of the first class may, through an interlocal agreement, authorize the
1661 deposit or transfer of the portion of the revenues described in Subsection (5)(a)(ii) to the Public
1662 Transportation System Tax Highway Fund created in Section 72-2-121 .]
1663 (6) (a) Revenues generated by a tax under this section that are allocated for the purpose
1664 described under Subsection (5)(a) shall be:
1665 (i) deposited in the Public Transit Fund created by Section 72-2-301 ; and
1666 (ii) expended as provided in Section 72-2-301 .
1667 (b) Revenues generated by a tax under this section that are allocated for the purpose
1668 described under Subsection (5)(b) shall be:
1669 (i) deposited in the Public Transportation System Tax Highway Fund created in
1670 Section 72-2-121 ; and

1671 (ii) expended as provided in Section 72-2-121 .
1672 Section 12. Section 59-12-504 is amended to read:
1673 59-12-504. Enactment or repeal of tax -- Effective date -- Administration,
1674 collection, and enforcement of tax.
1675 [(1) For purposes of this section:]
1676 [(a) "Annexation" means an annexation to:]
1677 [(i) a county under Title 17, Chapter 2, Annexation to County; or]
1678 [(ii) a city or town under Title 10, Chapter 2, Part 4, Annexation.]
1679 [(b) "Annexing area" means an area that is annexed into a county, city, or town.]
1680 [(2) (a) Except as provided in Subsection (2)(c) or (d), if, on or after July 1, 2004, a
1681 county, city, or town enacts or repeals a tax under this part, the enactment or repeal shall take
1682 effect:]
1683 [(i) on the first day of a calendar quarter; and]
1684 [(ii) after a 90-day period beginning on the date the commission receives notice
1685 meeting the requirements of Subsection (2)(b) from the county, city, or town.]
1686 [(b) The notice described in Subsection (2)(a)(ii) shall state:]
1687 [(i) that the county, city, or town will enact or repeal a tax under this part;]
1688 [(ii) the statutory authority for the tax described in Subsection (2)(b)(i);]
1689 [(iii) the effective date of the tax described in Subsection (2)(b)(i); and]
1690 [(iv) if the county, city, or town enacts the tax described in Subsection (2)(b)(i), the
1691 rate of the tax.]
1692 (1) Subject to Subsections (2) and (3), a tax rate repeal or a tax rate change for a tax
1693 imposed under this part shall take effect on the first day of a calendar quarter.
1694 [(c) (i)] (2) (a) [Notwithstanding Subsection (2)(a), for] For a transaction described in
1695 Subsection (2)(c)[(iii)], the enactment of a tax shall take effect on the first day of the first
1696 billing period[: (A)] that begins after the effective date of the enactment of the tax[; and (B)]
1697 if the billing period for the transaction begins before the effective date of the enactment of the
1698 tax under:
1699 [(I)] (i) Section 59-12-501 ; or
1700 [(II)] (ii) Section 59-12-502 .
1701 [(ii)] (b) [Notwithstanding Subsection (2)(a), for] For a transaction described in

1702 Subsection (2)(c)[(iii)], the repeal of a tax shall take effect on the first day of the last billing
1703 period[: (A)] that began before the effective date of the repeal of the tax[; and (B)] if the billing
1704 period for the transaction begins before the effective date of the repeal of the tax imposed
1705 under:
1706 [(I)] (i) Section 59-12-501 ; or
1707 [(II)] (ii) Section 59-12-502 .
1708 [(iii)] (c) Subsections (2)[(c)(i)] (a) and [(ii)] (b) apply to transactions subject to a tax
1709 under:
1710 [(A)] (i) Subsection 59-12-103 (1)(b);
1711 [(B)] (ii) Subsection 59-12-103 (1)(c);
1712 [(C)] (iii) Subsection 59-12-103 (1)(d);
1713 [(D)] (iv) Subsection 59-12-103 (1)(e);
1714 [(E)] (v) Subsection 59-12-103 (1)(f);
1715 [(F)] (vi) Subsection 59-12-103 (1)(g);
1716 [(G)] (vii) Subsection 59-12-103 (1)(h);
1717 [(H)] (viii) Subsection 59-12-103 (1)(i);
1718 [(I)] (ix) Subsection 59-12-103 (1)(j); or
1719 [(J)] (x) Subsection 59-12-103 (1)(k).
1720 [(d) (i)] (3) (a) [Notwithstanding Subsection (2)(a), if] If a tax due under this [chapter]
1721 part on a catalogue sale is computed on the basis of sales and use tax rates published in the
1722 catalogue, an enactment or repeal of a tax [described in Subsection (2)(a)] under this part takes
1723 effect:
1724 [(A)] (i) on the first day of a calendar quarter; and
1725 [(B)] (ii) beginning 60 days after the effective date of the enactment or repeal [under
1726 Subsection (2)(a)] of the tax under this part.
1727 [(ii)] (b) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking
1728 Act, the commission may by rule define the term "catalogue sale."
1729 [(3) (a) Except as provided in Subsection (3)(c) or (d), if, for an annexation that occurs
1730 on or after July 1, 2004, the annexation will result in the enactment or repeal of a tax under this
1731 part for an annexing area, the enactment or repeal shall take effect:]
1732 [(i) on the first day of a calendar quarter; and]

1733 [(ii) after a 90-day period beginning on the date the commission receives notice
1734 meeting the requirements of Subsection (3)(b) from the county, city, or town that annexes the
1735 annexing area.]
1736 [(b) The notice described in Subsection (3)(a)(ii) shall state:]
1737 [(i) that the annexation described in Subsection (3)(a) will result in an enactment or
1738 repeal of a tax under this part for the annexing area;]
1739 [(ii) the statutory authority for the tax described in Subsection (3)(b)(i);]
1740 [(iii) the effective date of the tax described in Subsection (3)(b)(i); and]
1741 [(iv) the rate of the tax described in Subsection (3)(b)(i).]
1742 [(c) (i) Notwithstanding Subsection (3)(a), for a transaction described in Subsection
1743 (3)(c)(iii), the enactment of a tax shall take effect on the first day of the first billing period:]
1744 [(A) that begins after the effective date of the enactment of the tax; and]
1745 [(B) if the billing period for the transaction begins before the effective date of the
1746 enactment of the tax under:]
1747 [(I) Section 59-12-501 ; or]
1748 [(II) Section 59-12-502 .]
1749 [(ii) Notwithstanding Subsection (3)(a), for a transaction described in Subsection
1750 (3)(c)(iii), the repeal of a tax shall take effect on the first day of the last billing period:]
1751 [(A) that began before the effective date of the repeal of the tax; and]
1752 [(B) if the billing period for the transaction begins before the effective date of the
1753 repeal of the tax imposed under:]
1754 [(I) Section 59-12-501 ; or]
1755 [(II) Section 59-12-502 .]
1756 [(iii) Subsections (3)(c)(i) and (ii) apply to transactions subject to a tax under:]
1757 [(A) Subsection 59-12-103 (1)(b);]
1758 [(B) Subsection 59-12-103 (1)(c);]
1759 [(C) Subsection 59-12-103 (1)(d);]
1760 [(D) Subsection 59-12-103 (1)(e);]
1761 [(E) Subsection 59-12-103 (1)(f);]
1762 [(F) Subsection 59-12-103 (1)(g);]
1763 [(G) Subsection 59-12-103 (1)(h);]

1764 [(H) Subsection 59-12-103 (1)(i);]
1765 [(I) Subsection 59-12-103 (1)(j); or]
1766 [(J) Subsection 59-12-103 (1)(k).]
1767 [(d) (i) Notwithstanding Subsection (3)(a), if a tax due under this chapter on a
1768 catalogue sale is computed on the basis of sales and use tax rates published in the catalogue, an
1769 enactment or repeal of a tax described in Subsection (3)(a) takes effect:]
1770 [(A) on the first day of a calendar quarter; and]
1771 [(B) beginning 60 days after the effective date of the enactment or repeal under
1772 Subsection (3)(a).]
1773 [(ii) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act,
1774 the commission may by rule define the term "catalogue sale."]
1775 (4) [(a)] [Except as provided in Subsection (4)(b), a] A tax [authorized under] imposed
1776 by this part shall be administered, collected, and enforced in accordance with:
1777 [(i)] (a) the same procedures used to administer, collect, and enforce the tax under[:
1778 (A)] Part 1, Tax Collection; [or] and
1779 [(B) Part 2, Local Sales and Use Tax Act; and]
1780 [(ii)] (b) Chapter 1, General Taxation Policies.
1781 [(b) Notwithstanding Subsection (4)(a), a tax under this part is not subject to
1782 Subsections 59-12-205 (2) through (7).]
1783 Section 13. Section 59-12-1001 is amended to read:
1784 59-12-1001. Authority to impose tax for highways or to fund a system for public
1785 transit -- Base -- Rate -- Ordinance requirements -- Voter approval requirements --
1786 Election requirements -- Notice of election requirements -- Exceptions to voter approval
1787 requirements -- Enactment or repeal of tax -- Effective date -- Notice requirements.
1788 (1) (a) A city or town in which the transactions described in Subsection 59-12-103 (1)
1789 are not subject to a sales and use tax under Section 59-12-501 or 59-12-1803 may as provided
1790 in this part impose a sales and use tax of .25% on the transactions described in Subsection
1791 59-12-103 (1) located within the city or town.
1792 (b) Notwithstanding Subsection (1)(a), a city or town may not impose a tax under this
1793 section on:
1794 (i) the sales and uses described in Section 59-12-104 to the extent the sales and uses

1795 are exempt from taxation under Section 59-12-104 ; and
1796 (ii) any amounts paid or charged by a seller that collects a tax under Subsection
1797 59-12-107 (1)(b).
1798 (c) For purposes of this Subsection (1), the location of a transaction shall be
1799 determined in accordance with Section 59-12-207 .
1800 (2) (a) A city or town imposing a tax under this part may use the revenues generated by
1801 the tax:
1802 (i) for the construction and maintenance of highways under the jurisdiction of the city
1803 or town imposing the tax;
1804 (ii) subject to Subsection (2)(b), to fund a system for public transit; or
1805 (iii) for a combination of the purposes described in Subsections (2)(a)(i) and (ii).
1806 (b) (i) For purposes of Subsection (2)(a)(ii) and except as provided in Subsection
1807 (2)(b)(ii), "public transit" is as defined in Section 17A-2-1004 .
1808 (ii) Notwithstanding Subsection (2)(b)(i), "public transit" does not include a fixed
1809 guideway system.
1810 (3) To impose a tax under this part, the governing body of the city or town shall:
1811 (a) pass an ordinance approving the tax; and
1812 (b) except as provided in Subsection (7), obtain voter approval for the tax as provided
1813 in Subsection (4).
1814 (4) To obtain voter approval for a tax under Subsection (3)(b), a city or town shall:
1815 (a) hold an election during:
1816 (i) a regular general election; or
1817 (ii) a municipal general election; and
1818 (b) publish notice of the election:
1819 (i) 15 days or more before the day on which the election is held; and
1820 (ii) in a newspaper of general circulation in the city or town.
1821 (5) An ordinance approving a tax under this part shall provide an effective date for the
1822 tax as provided in Subsection (6).
1823 (6) (a) For purposes of this Subsection (6):
1824 (i) "Annexation" means an annexation to a city or town under Title 10, Chapter 2, Part
1825 4, Annexation.

1826 (ii) "Annexing area" means an area that is annexed into a city or town.
1827 (b) (i) Except as provided in Subsection (6)(c) or (d), if, on or after July 1, 2004, a city
1828 or town enacts or repeals a tax under this part, the enactment or repeal shall take effect:
1829 (A) on the first day of a calendar quarter; and
1830 (B) after a 90-day period beginning on the date the commission receives notice meeting
1831 the requirements of Subsection (6)(b)(ii) from the city or town.
1832 (ii) The notice described in Subsection (6)(b)(i)(B) shall state:
1833 (A) that the city or town will enact or repeal a tax under this part;
1834 (B) the statutory authority for the tax described in Subsection (6)(b)(ii)(A);
1835 (C) the effective date of the tax described in Subsection (6)(b)(ii)(A); and
1836 (D) if the city or town enacts the tax described in Subsection (6)(b)(ii)(A), the rate of
1837 the tax.
1838 (c) (i) Notwithstanding Subsection (6)(b)(i), for a transaction described in Subsection
1839 (6)(c)(iii), the enactment of a tax shall take effect on the first day of the first billing period[:
1840 (A)] that begins after the effective date of the enactment of the tax[; and (B)] if the billing
1841 period for the transaction begins before the effective date of the enactment of the tax under
1842 Subsection (1).
1843 (ii) Notwithstanding Subsection (6)(b)(i), for a transaction described in Subsection
1844 (6)(c)(iii), the repeal of a tax shall take effect on the first day of the last billing period[: (A)]
1845 that began before the effective date of the repeal of the tax[; and (B)] if the billing period for
1846 the transaction begins before the effective date of the repeal of the tax imposed under
1847 Subsection (1).
1848 (iii) Subsections (6)(c)(i) and (ii) apply to transactions subject to a tax under:
1849 (A) Subsection 59-12-103 (1)(b);
1850 (B) Subsection 59-12-103 (1)(c);
1851 (C) Subsection 59-12-103 (1)(d);
1852 (D) Subsection 59-12-103 (1)(e);
1853 (E) Subsection 59-12-103 (1)(f);
1854 (F) Subsection 59-12-103 (1)(g);
1855 (G) Subsection 59-12-103 (1)(h);
1856 (H) Subsection 59-12-103 (1)(i);

1857 (I) Subsection 59-12-103 (1)(j); or
1858 (J) Subsection 59-12-103 (1)(k).
1859 (d) (i) Notwithstanding Subsection (6)(b)(i), if a tax due under this chapter on a
1860 catalogue sale is computed on the basis of sales and use tax rates published in the catalogue, an
1861 enactment or repeal of a tax described in Subsection (6)(b)(i) takes effect:
1862 (A) on the first day of a calendar quarter; and
1863 (B) beginning 60 days after the effective date of the enactment or repeal under
1864 Subsection (6)(b)(i).
1865 (ii) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act,
1866 the commission may by rule define the term "catalogue sale."
1867 (e) (i) Except as provided in Subsection (6)(f) or (g), if, for an annexation that occurs
1868 on or after July 1, 2004, the annexation will result in the enactment or repeal of a tax under this
1869 part for an annexing area, the enactment or repeal shall take effect:
1870 (A) on the first day of a calendar quarter; and
1871 (B) after a 90-day period beginning on the date the commission receives notice meeting
1872 the requirements of Subsection (6)(e)(ii) from the city or town that annexes the annexing area.
1873 (ii) The notice described in Subsection (6)(e)(i)(B) shall state:
1874 (A) that the annexation described in Subsection (6)(e)(i) will result in an enactment or
1875 repeal of a tax under this part for the annexing area;
1876 (B) the statutory authority for the tax described in Subsection (6)(e)(ii)(A);
1877 (C) the effective date of the tax described in Subsection (6)(e)(ii)(A); and
1878 (D) the rate of the tax described in Subsection (6)(e)(ii)(A).
1879 (f) (i) Notwithstanding Subsection (6)(e)(i), for a transaction described in Subsection
1880 (6)(f)(iii), the enactment of a tax shall take effect on the first day of the first billing period[:
1881 (A)] that begins after the effective date of the enactment of the tax[; and (B)] if the billing
1882 period for the transaction begins before the effective date of the enactment of the tax under
1883 Subsection (1).
1884 (ii) Notwithstanding Subsection (6)(e)(i), for a transaction described in Subsection
1885 (6)(f)(iii), the repeal of a tax shall take effect on the first day of the last billing period[: (A)]
1886 that began before the effective date of the repeal of the tax[; and (B)] if the billing period for
1887 the transaction begins before the effective date of the repeal of the tax imposed under

1888 Subsection (1).
1889 (iii) Subsections (6)(f)(i) and (ii) apply to transactions subject to a tax under:
1890 (A) Subsection 59-12-103 (1)(b);
1891 (B) Subsection 59-12-103 (1)(c);
1892 (C) Subsection 59-12-103 (1)(d);
1893 (D) Subsection 59-12-103 (1)(e);
1894 (E) Subsection 59-12-103 (1)(f);
1895 (F) Subsection 59-12-103 (1)(g);
1896 (G) Subsection 59-12-103 (1)(h);
1897 (H) Subsection 59-12-103 (1)(i);
1898 (I) Subsection 59-12-103 (1)(j); or
1899 (J) Subsection 59-12-103 (1)(k).
1900 (g) (i) Notwithstanding Subsection (6)(e)(i), if a tax due under this chapter on a
1901 catalogue sale is computed on the basis of sales and use tax rates published in the catalogue, an
1902 enactment or repeal of a tax described in Subsection (6)(e)(i) takes effect:
1903 (A) on the first day of a calendar quarter; and
1904 (B) beginning 60 days after the effective date of the enactment or repeal under
1905 Subsection (6)(e)(i).
1906 (ii) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act,
1907 the commission may by rule define the term "catalogue sale."
1908 (7) (a) Except as provided in Subsection (7)(b), a city or town is not subject to the
1909 voter approval requirements of Subsection (3)(b) if:
1910 (i) on or before January 1, 1996, the city or town imposed a license fee or tax on
1911 businesses based on gross receipts pursuant to Section 10-1-203 ; or
1912 (ii) the city or town:
1913 (A) on or before June 30, 2002, obtained voter approval in accordance with Subsection
1914 (3)(b) to impose a tax under this part for a purpose described in Subsection (2)(a)(i); and
1915 (B) on or after July 1, 2002, uses the revenues generated by a tax under this part for a
1916 purpose described in Subsection (2)(a).
1917 (b) Notwithstanding Subsection (7)(a), the exception from the voter approval
1918 requirements in Subsection (7)(a)(i) does not apply to a city or town that, on or before January

1919 1, 1996, imposed a license fee or tax on only one class of businesses based on gross receipts
1920 pursuant to Section 10-1-203 .
1921 Section 14. Section 59-12-1502 is amended to read:
1922 59-12-1502. Definitions.
1923 As used in this part:
1924 (1) "Annexation" means an annexation to a county under Title 17, Chapter 2,
1925 Annexation to County.
1926 (2) "Annexing area" means an area that is annexed into a county.
1927 (3) "Qualifying county" means a county [in] within which a sales and use tax
1928 [authorized by] under Section 59-12-502 is not imposed [by:].
1929 [(a) the county;]
1930 [(b) a city within the county; or]
1931 [(c) a town within the county.]
1932 (4) "State highway" means a highway designated as a state highway under Title 72,
1933 Chapter 4, Designation of State Highways Act.
1934 (5) (a) Except as provided in Subsection (5)(b), "public transit" is as defined in Section
1935 17A-2-1004 .
1936 (b) Notwithstanding Subsection (5)(a), "public transit" does not include a fixed
1937 guideway system.
1938 Section 15. Section 59-12-1503 is amended to read:
1939 59-12-1503. Base -- Rate -- Imposition of tax -- Opinion question election -- Use of
1940 tax revenues -- Administration, collection, and enforcement of tax by commission --
1941 Administrative fee -- Enactment or repeal of tax -- Annexation -- Notice.
1942 (1) (a) [Beginning on or after April 1, 2004, and subject] Subject to the other
1943 provisions of this part, the county legislative body of a qualifying county may impose a sales
1944 and use tax of .25%:
1945 (i) on the transactions:
1946 (A) described in Subsection 59-12-103 (1); and
1947 (B) within the county, including the cities and towns within the county;
1948 (ii) for the purposes determined by the county legislative body in accordance with
1949 Subsection (2); and

1950 (iii) in addition to any other sales and use tax authorized under this chapter.
1951 (b) Notwithstanding Subsection (1)(a)(i), a county legislative body may not impose a
1952 tax under this section on:
1953 (i) the sales and uses described in Section 59-12-104 to the extent the sales and uses
1954 are exempt from taxation under Section 59-12-104 ; or
1955 (ii) any amounts paid or charged by a seller that collects a tax under Subsection
1956 59-12-107 (1)(b).
1957 (c) For purposes of this Subsection (1), the location of a transaction shall be
1958 determined in accordance with Section 59-12-207 .
1959 (2) (a) Subject to Subsection (2)(b), before obtaining the approval required by
1960 Subsection (3), a county legislative body shall adopt a resolution specifying the percentage of
1961 revenues the county will receive from the tax under this part that will be allocated to fund one
1962 or more of the following:
1963 (i) a project or service relating to a fixed guideway system[: (A)] for the portion of the
1964 project or service that is performed within the county[; and];
1965 [(B) if the fixed guideway system is owned and operated by a public transit district
1966 organized under Title 17A, Chapter 2, Part 10, Utah Public Transit District Act;]
1967 (ii) a project or service relating to a system for public transit[: (A)] for the portion of
1968 the project or service that is performed within the county; [and] or
1969 [(B) if the system for public transit is owned and operated by a public transit district
1970 organized under Title 17A, Chapter 2, Part 10, Utah Public Transit District Act; or]
1971 (iii) the following relating to a state highway within the county:
1972 (A) a project beginning on or after the day on which a county legislative body imposes
1973 a tax under this part only within the county involving:
1974 (I) new construction;
1975 (II) a renovation;
1976 (III) an improvement; or
1977 (IV) an environmental study;
1978 (B) debt service on a project described in Subsections (2)(a)(iii)(A)(I) through (IV); or
1979 (C) bond issuance costs relating to a project described in Subsections (2)(a)(iii)(A)(I)
1980 through (IV).

1981 (b) (i) A county legislative body shall in the resolution required by Subsection (2)(a)
1982 allocate as required by Subsection (2)(a) 100% of the revenues the county will receive from the
1983 tax under this part.
1984 (ii) For purposes of this Subsection (2)(b), the revenues a county will receive from the
1985 tax under this part do not include amounts retained by the commission in accordance with
1986 Subsection (8).
1987 (3) (a) Before imposing a tax under this part, a county legislative body shall:
1988 (i) obtain approval from a majority of the members of the county legislative body to:
1989 (A) impose the tax; and
1990 (B) allocate the revenues the county will receive from the tax in accordance with the
1991 resolution adopted in accordance with Subsection (2); and
1992 (ii) subject to Subsection (3)(b), submit an opinion question to the county's registered
1993 voters voting on the imposition of the tax so that each registered voter has the opportunity to
1994 express the registered voter's opinion on whether a tax should be imposed under this part.
1995 (b) The opinion question required by Subsection (3)(a)(ii) shall state the allocations
1996 specified in the resolution:
1997 (i) adopted in accordance with Subsection (2); and
1998 (ii) approved by the county legislative body in accordance with Subsection (3)(a).
1999 (c) The election required by this Subsection (3) shall be held:
2000 (i) (A) at a regular general election; and
2001 (B) in accordance with the procedures and requirements of Title 20A, Election Code,
2002 governing regular general elections; or
2003 (ii) (A) at a special election called by the county legislative body;
2004 (B) only on the date of a municipal general election provided in Subsection
2005 20A-1-202 (1); and
2006 (C) in accordance with the procedures and requirements of Section 20A-1-203 .
2007 (4) (a) Subject to Subsection (8), if a county legislative body determines that a majority
2008 of the county's registered voters voting on the imposition of the tax have voted in favor of the
2009 imposition of the tax in accordance with Subsection (3), the county legislative body may
2010 impose the tax by a majority vote of all of the members of the county legislative body.
2011 (b) If a county legislative body imposes a tax under Subsection (4)(a), the revenues

2012 generated by the tax shall be:
2013 (i) allocated in accordance with the allocations specified in the resolution under
2014 Subsection (2); and
2015 (ii) expended as provided in this part.
2016 (5) If a county legislative body allocates revenues generated by the tax for a project
2017 described in Subsection (2)(a)(iii)(A), before beginning the project the county legislative body
2018 shall:
2019 (a) obtain approval from the Transportation Commission to complete the project; and
2020 (b) enter into an interlocal agreement:
2021 (i) established in accordance with Title 11, Chapter 13, Interlocal Cooperation Act;
2022 (ii) with the Department of Transportation; and
2023 (iii) to complete the project.
2024 (6) (a) If after a county legislative body imposes a tax under Subsection (4) the county
2025 legislative body seeks to change the allocation of the tax specified in the resolution under
2026 Subsection (2), the county legislative body may change the allocation of the tax by:
2027 (i) adopting a resolution in accordance with Subsection (2) specifying the percentage of
2028 revenues the county will receive from the tax under this part that will be allocated to fund one
2029 or more of the systems or projects described in Subsection (2);
2030 (ii) obtaining approval to change the allocation of the tax from a majority of the
2031 members of the county legislative body; and
2032 (iii) (A) submitting an opinion question to the county's registered voters voting on
2033 changing the allocation of the tax so that each registered voter has the opportunity to express
2034 the registered voter's opinion on whether the allocation of the tax should be changed; and
2035 (B) obtaining approval to change the allocation of the tax from a majority of the
2036 county's registered voters voting on changing the allocation of the tax.
2037 (b) (i) The opinion question required by Subsection (6)(a)(iii) shall state the allocations
2038 specified in the resolution:
2039 (A) adopted in accordance with Subsection (6)(a)(i); and
2040 (B) approved by the county legislative body in accordance with Subsection (6)(a)(ii).
2041 (ii) The election required by Subsection (6)(a)(iii) shall follow the procedures and
2042 requirements of Title 11, Chapter 14, Local Government Bonding Act.

2043 (7) (a) (i) Except as provided in Subsection (7)(a)(ii), revenues generated by a tax
2044 under this part that are allocated for a purpose described in Subsection (2)(a)(i) or (ii) shall be
2045 transmitted:
2046 (A) by the commission;
2047 (B) to the county;
2048 (C) monthly; and
2049 (D) by electronic funds transfer.
2050 (ii) Notwithstanding Subsection (7)(a)(i), a county may request that the commission
2051 transfer the revenues described in Subsection (7)(a)(i):
2052 (A) directly to [a public transit district:] the Department of Transportation; and
2053 [(I) organized under Title 17A, Chapter 2, Part 10, Utah Public Transit District Act;
2054 and]
2055 [(II) designated by the county; and]
2056 (B) by providing written notice to the commission[: (I)] requesting the revenues to be
2057 transferred directly to [a public transit district] the Department of Transportation as provided in
2058 Subsection (7)(a)(ii)(A)[; and (II) designating the public transit district to which the revenues
2059 are requested to be transferred].
2060 (b) Revenues generated by a tax under this part that are allocated for a purpose
2061 described in Subsection (2)(a)(iii) shall be:
2062 (i) deposited into the State Highway Projects Within Counties Fund created by Section
2063 72-2-121.1 ; and
2064 (ii) expended as provided in Section 72-2-121.1 .
2065 (8) (a) (i) Except as provided in Subsection (8)(a)(ii), the tax authorized under this part
2066 shall be administered, collected, and enforced in accordance with:
2067 (A) the same procedures used to administer, collect, and enforce the tax under:
2068 (I) Part 1, Tax Collection; or
2069 (II) Part 2, Local Sales and Use Tax Act; and
2070 (B) Chapter 1, General Taxation Policies.
2071 (ii) Notwithstanding Subsection (8)(a)(i), a tax under this part is not subject to
2072 Subsections 59-12-205 (2) through (7).
2073 (b) (i) The commission may retain an amount of tax collected under this part of not to

2074 exceed the lesser of:
2075 (A) 1.5%; or
2076 (B) an amount equal to the cost to the commission of administering this part.
2077 (ii) Any amount the commission retains under Subsection (8)(b)(i) shall be:
2078 (A) placed in the Sales and Use Tax Administrative Fees Account; and
2079 (B) used as provided in Subsection 59-12-206 (2).
2080 (9) (a) (i) Except as provided in Subsection (9)(b) or (c), if, on or after July 1, 2004, a
2081 county enacts or repeals a tax under this part, the enactment or repeal shall take effect:
2082 (A) on the first day of a calendar quarter; and
2083 (B) after a 90-day period beginning on the date the commission receives notice meeting
2084 the requirements of Subsection (9)(a)(ii) from the county.
2085 (ii) The notice described in Subsection (9)(a)(i)(B) shall state:
2086 (A) that the county will enact or repeal a tax under this part;
2087 (B) the statutory authority for the tax described in Subsection (9)(a)(ii)(A);
2088 (C) the effective date of the tax described in Subsection (9)(a)(ii)(A); and
2089 (D) if the county enacts the tax described in Subsection (9)(a)(ii)(A), the rate of the tax.
2090 (b) (i) Notwithstanding Subsection (9)(a)(i), for a transaction described in Subsection
2091 (9)(b)(iii), the enactment of a tax shall take effect on the first day of the first billing period[:
2092 (A)] that begins after the effective date of the enactment of the tax[; and (B)] if the billing
2093 period for the transaction begins before the effective date of the enactment of the tax under
2094 Subsection (1).
2095 (ii) Notwithstanding Subsection (9)(a)(i), for a transaction described in Subsection
2096 (9)(b)(iii), the repeal of a tax shall take effect on the first day of the last billing period[: (A)]
2097 that began before the effective date of the repeal of the tax[; and (B)] if the billing period for
2098 the transaction begins before the effective date of the repeal of the tax imposed under
2099 Subsection (1).
2100 (iii) Subsections (9)(b)(i) and (ii) apply to transactions subject to a tax under:
2101 (A) Subsection 59-12-103 (1)(b);
2102 (B) Subsection 59-12-103 (1)(c);
2103 (C) Subsection 59-12-103 (1)(d);
2104 (D) Subsection 59-12-103 (1)(e);

2105 (E) Subsection 59-12-103 (1)(f);
2106 (F) Subsection 59-12-103 (1)(g);
2107 (G) Subsection 59-12-103 (1)(h);
2108 (H) Subsection 59-12-103 (1)(i);
2109 (I) Subsection 59-12-103 (1)(j); or
2110 (J) Subsection 59-12-103 (1)(k).
2111 (c) (i) Notwithstanding Subsection (9)(a)(i), if a tax due under this chapter on a
2112 catalogue sale is computed on the basis of sales and use tax rates published in the catalogue, an
2113 enactment or repeal of a tax described in Subsection (9)(a)(i) takes effect:
2114 (A) on the first day of a calendar quarter; and
2115 (B) beginning 60 days after the effective date of the enactment or repeal under
2116 Subsection (9)(a)(i).
2117 (ii) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act,
2118 the commission may by rule define the term "catalogue sale."
2119 (d) (i) Except as provided in Subsection (9)(e) or (f), if, for an annexation that occurs
2120 on or after July 1, 2004, the annexation will result in the enactment or repeal of a tax under this
2121 part for an annexing area, the enactment or repeal shall take effect:
2122 (A) on the first day of a calendar quarter; and
2123 (B) after a 90-day period beginning on the date the commission receives notice meeting
2124 the requirements of Subsection (9)(d)(ii) from the county that annexes the annexing area.
2125 (ii) The notice described in Subsection (9)(d)(i)(B) shall state:
2126 (A) that the annexation described in Subsection (9)(d)(i)(B) will result in an enactment
2127 or repeal of a tax under this part for the annexing area;
2128 (B) the statutory authority for the tax described in Subsection (9)(d)(ii)(A);
2129 (C) the effective date of the tax described in Subsection (9)(d)(ii)(A); and
2130 (D) the rate of the tax described in Subsection (9)(d)(ii)(A).
2131 (e) (i) Notwithstanding Subsection (9)(d)(i), for a transaction described in Subsection
2132 (9)(e)(iii), the enactment of a tax shall take effect on the first day of the first billing period[:
2133 (A)] that begins after the effective date of the enactment of the tax[; and (B)] if the billing
2134 period for the transaction begins before the effective date of the enactment of the tax under
2135 Subsection (1).

2136 (ii) Notwithstanding Subsection (9)(d)(i), for a transaction described in Subsection
2137 (9)(e)(iii), the repeal of a tax shall take effect on the first day of the last billing period[: (A)]
2138 that began before the effective date of the repeal of the tax[; and (B)] if the billing period for
2139 the transaction begins before the effective date of the repeal of the tax imposed under
2140 Subsection (1).
2141 (iii) Subsections (9)(e)(i) and (ii) apply to transactions subject to a tax under:
2142 (A) Subsection 59-12-103 (1)(b);
2143 (B) Subsection 59-12-103 (1)(c);
2144 (C) Subsection 59-12-103 (1)(d);
2145 (D) Subsection 59-12-103 (1)(e);
2146 (E) Subsection 59-12-103 (1)(f);
2147 (F) Subsection 59-12-103 (1)(g);
2148 (G) Subsection 59-12-103 (1)(h);
2149 (H) Subsection 59-12-103 (1)(i);
2150 (I) Subsection 59-12-103 (1)(j); or
2151 (J) Subsection 59-12-103 (1)(k).
2152 (f) (i) Notwithstanding Subsection (9)(d)(i), if a tax due under this chapter on a
2153 catalogue sale is computed on the basis of sales and use tax rates published in the catalogue, an
2154 enactment or repeal of a tax described in Subsection (9)(d)(i) takes effect:
2155 (A) on the first day of a calendar quarter; and
2156 (B) beginning 60 days after the effective date of the enactment or repeal under
2157 Subsection (9)(d)(i).
2158 (ii) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act,
2159 the commission may by rule define the term "catalogue sale."
2160 Section 16. Section 59-12-1703 is amended to read:
2161 59-12-1703. Base -- Rate -- Imposition of tax -- Opinion question election -- Use of
2162 tax revenues -- Administration, collection, and enforcement of tax by commission --
2163 Administrative fee -- Enactment or repeal of tax -- Annexation -- Notice.
2164 (1) (a) Beginning on or after April 1, 2007, and subject to the other provisions of this
2165 part, a county legislative body may impose a sales and use tax of up to .25%:
2166 (i) on the transactions:

2167 (A) described in Subsection 59-12-103 (1); and
2168 (B) within the county, including the cities and towns within the county;
2169 (ii) for the purposes described in Subsection (4); and
2170 (iii) in addition to any other sales and use tax authorized under this chapter.
2171 (b) Notwithstanding Subsection (1)(a)(i), a county legislative body may not impose a
2172 tax under this section on:
2173 (i) the sales and uses described in Section 59-12-104 to the extent the sales and uses
2174 are exempt from taxation under Section 59-12-104 ; or
2175 (ii) any amounts paid or charged by a seller that collects a tax under Subsection
2176 59-12-107 (1)(b).
2177 (c) For purposes of this Subsection (1), the location of a transaction shall be
2178 determined in accordance with Section 59-12-207 .
2179 (2) (a) [Except as provided in Subsection (2)(d), before] Before imposing a tax under
2180 this part, a county legislative body shall:
2181 (i) obtain approval from a majority of the members of the county legislative body to
2182 impose the tax; and
2183 (ii) submit an opinion question to the county's registered voters voting on the
2184 imposition of the tax so that each registered voter has the opportunity to express the registered
2185 voter's opinion on whether a tax should be imposed under this part.
2186 (b) (i) In a county of the first or second class, the opinion question required by
2187 Subsection (2)(a)(ii) shall state the following:
2188 "Shall (insert the name of the county), Utah, be authorized to impose a (insert the
2189 amount of the sales and use tax up to .25%) sales and use tax for corridor preservation,
2190 congestion mitigation, or to expand capacity for regionally significant transportation facilities?"
2191 (ii) In a county of the third, fourth, fifth, or sixth class, the opinion question required by
2192 Subsection (2)(a)(ii) shall state the following:
2193 "Shall (insert the name of the county), Utah, be authorized to impose a (insert the
2194 amount of the sales and use tax up to .25%) sales and use tax for transportation projects,
2195 corridor preservation, congestion mitigation, or to expand capacity for regionally significant
2196 transportation facilities?"
2197 (c) [Except as provided in Subsection (2)(d), the] The election required by this

2198 Subsection (2) shall be held:
2199 (i) at a regular general election conducted in accordance with the procedures and
2200 requirements of Title 20A, Election Code, governing regular elections; or
2201 (ii) at a special election called by the county legislative body that is:
2202 (A) held only on the date of a municipal general election as provided in Subsection
2203 20A-1-202 (1); and
2204 (B) authorized in accordance with the procedures and requirements of Section
2205 20A-1-203 .
2206 [(d) Notwithstanding Subsection (2)(a) or (c), if a county seeks to impose a tax under
2207 this part on or after April 1, 2007, but on or before December 31, 2007, the county legislative
2208 body shall:]
2209 [(i) obtain the approval required by Subsection (2)(a)(i) within five calendar days of
2210 September 20, 2006;]
2211 [(ii) direct the county clerk to submit the opinion question required by Subsection
2212 (2)(a)(ii) during the November 7, 2006 general election; and]
2213 [(iii) hold the election required by this section on November 7, 2006.]
2214 (3) If a county legislative body determines that a majority of the county's registered
2215 voters voting on the imposition of the tax have voted in favor of the imposition of the tax in
2216 accordance with Subsection (2), the county legislative body shall impose the tax in accordance
2217 with this section.
2218 (4) (a) Subject to Subsections (5) and (6), the revenues generated by a tax under this
2219 part may only be expended for:
2220 (i) a project or service:
2221 (A) relating to a regionally significant transportation facility;
2222 (B) for the portion of the project or service that is performed within the county;
2223 (C) for new capacity or congestion mitigation if the project or service is performed
2224 within a county:
2225 (I) of the first class;
2226 (II) of the second class; or
2227 (III) that is part of an area metropolitan planning organization;
2228 (D) (I) if the project or service is a principal arterial highway or a minor arterial

2229 highway in a county of the first or second class, that is part of the county and municipal master
2230 plan and part of:
2231 (Aa) the statewide long-range plan; or
2232 (Bb) the regional transportation plan of the area metropolitan planning organization if a
2233 metropolitan planning organization exists for the area; or
2234 (II) if the project or service is for a fixed guideway or an airport, that is part of the
2235 regional transportation plan of the area metropolitan planning organization if a metropolitan
2236 planning organization exists for the area; and
2237 (E) that is on a priority list:
2238 (I) created by the county's council of governments in accordance with Subsection (5);
2239 and
2240 (II) approved by the county legislative body in accordance with Subsection (6);
2241 (ii) corridor preservation for a project described in Subsection (4)(a)(i) as provided in
2242 Subsection (7)(b); or
2243 (iii) any debt service and bond issuance costs related to a project described in
2244 Subsection (4)(a)(i) or (ii).
2245 (b) In a county of the first or second class, a regionally significant transportation
2246 facility project or service described in Subsection (4)(a)(i)(A) [must] shall have a funded year
2247 priority designation on a Statewide Transportation Improvement Program and Transportation
2248 Improvement Program if the project or service described in Subsection (4)(a)(i) is:
2249 (i) a principal arterial highway as defined in Section 72-4-102.5 ;
2250 (ii) a minor arterial highway as defined in Section 72-4-102.5 ; or
2251 (iii) a major collector highway:
2252 (A) as defined in Section 72-4-102.5 ; and
2253 (B) in a rural area.
2254 (c) Notwithstanding the designated use of revenues in Subsection (4)(a), of the
2255 revenues generated by the tax imposed under this section by any county of the first or second
2256 class, 25% or more shall be expended for the purpose described in Subsection (4)(a)(ii).
2257 (d) For purposes of this Subsection (4), the revenues a county will receive from a tax
2258 under this part do not include amounts retained by the commission in accordance with
2259 Subsection (8).

2260 (5) (a) The county's council of governments shall create a priority list of regionally
2261 significant transportation facility projects described in Subsection (4)(a) using the process
2262 described in Subsection (5)(b) and present the priority list to the county's legislative body for
2263 approval as described in Subsection (6).
2264 (b) Subject to Sections 59-12-1704 and 59-12-1705 , a council of governments shall
2265 establish a council of governments' endorsement process which includes prioritization and
2266 application procedures for use of the revenues a county will receive from a tax under this part.
2267 (6) (a) The council of governments shall submit the priority list described in
2268 Subsection (5) to the county's legislative body and obtain approval of the list from a majority of
2269 the members of the county legislative body.
2270 (b) A county's council of governments may only submit one priority list per calendar
2271 year.
2272 (c) A county legislative body may only consider and approve one priority list per
2273 calendar year.
2274 (7) (a) (i) Except as provided in Subsections (7)(a)(ii) and (7)(b), revenues described in
2275 Subsection (4) shall be transmitted:
2276 (A) by the commission;
2277 (B) to the county;
2278 (C) monthly; and
2279 (D) by electronic funds transfer.
2280 (ii) A county may request that the commission transfer a portion of the revenues
2281 described in Subsection (4):
2282 (A) directly to [a public transit district:] the Department of Transportation; and
2283 [(I) organized under Title 17A, Chapter 2, Part 10, Utah Public Transit District Act;
2284 and]
2285 [(II) designated by the county; and]
2286 (B) by providing written notice to the commission[: (I)] requesting the revenues to be
2287 transferred directly to [a public transit district as provided in Subsection (7)(a)(ii)(A); and] the
2288 Department of Transportation.
2289 [(II) designating the public transit district to which the revenues are requested to be
2290 transferred.]

2291 (b) (i) Except as provided in Subsection (7)(b)(ii), revenues generated by a tax under
2292 this part that are allocated for a purpose described in Subsection (4)(a)(ii) shall be:
2293 (A) deposited in or transferred to the Local Transportation Corridor Preservation Fund
2294 created by Section 72-2-117.5 ; and
2295 (B) expended as provided in Section 72-2-117.5 .
2296 (ii) In a county of the first class, revenues generated by a tax under this part that are
2297 allocated for a purpose described in Subsection (4)(a)(ii) shall be:
2298 (A) deposited in or transferred to the Public Transportation System Tax Highway Fund
2299 created by Section 72-2-121 ; and
2300 (B) expended as provided in Section 72-2-121 .
2301 (8) (a) (i) Except as provided in Subsection (8)(b), the tax authorized under this part
2302 shall be administered, collected, and enforced in accordance with:
2303 (A) the same procedures used to administer, collect, and enforce the tax under:
2304 (I) Part 1, Tax Collection; or
2305 (II) Part 2, Local Sales and Use Tax Act; and
2306 (B) Chapter 1, General Taxation Policies.
2307 (ii) A tax under this part is not subject to Subsections 59-12-205 (2) through (7).
2308 (b) (i) The commission may retain an amount of tax collected under this part of not to
2309 exceed the lesser of:
2310 (A) 1.5%; or
2311 (B) an amount equal to the cost to the commission of administering this part.
2312 (ii) Any amount the commission retains under Subsection (8)(b)(i) shall be:
2313 (A) placed in the Sales and Use Tax Administrative Fees Account; and
2314 (B) used as provided in Subsection 59-12-206 (2).
2315 (9) (a) (i) Except as provided in Subsection (9)(b) or (c), if, on or after April 1, 2007, a
2316 county enacts or repeals a tax or changes the rate of a tax under this part, the enactment, repeal,
2317 or change shall take effect:
2318 (A) on the first day of a calendar quarter; and
2319 (B) after a 90-day period beginning on the date the commission receives notice meeting
2320 the requirements of Subsection (9)(a)(ii) from the county.
2321 (ii) The notice described in Subsection (9)(a)(i)(B) shall state:

2322 (A) that the county will enact, repeal, or change the rate of a tax under this part;
2323 (B) the statutory authority for the tax described in Subsection (9)(a)(ii)(A);
2324 (C) the effective date of the tax described in Subsection (9)(a)(ii)(A); and
2325 (D) if the county enacts the tax or changes the rate of the tax described in Subsection
2326 (9)(a)(ii)(A), the rate of the tax.
2327 (b) (i) For a transaction described in Subsection (9)(b)(iii), if the billing period for the
2328 transaction begins before the effective date of the enactment of the tax or tax rate increase
2329 under Subsection (1), the enactment of a tax or a tax rate increase shall take effect on the first
2330 day of the first billing period that begins after the effective date of the enactment of the tax or
2331 the tax rate increase.
2332 (ii) For a transaction described in Subsection (9)(b)(iii), if the billing period for the
2333 transaction begins before the effective date of the repeal of the tax or the tax rate decrease
2334 imposed under Subsection (1), the repeal of a tax or a tax rate decrease shall take effect on the
2335 first day of the last billing period that began before the effective date of the repeal of the tax or
2336 the tax rate decrease.
2337 (iii) Subsections (9)(b)(i) and (ii) apply to transactions subject to a tax under:
2338 (A) Subsection 59-12-103 (1)(b);
2339 (B) Subsection 59-12-103 (1)(c);
2340 (C) Subsection 59-12-103 (1)(d);
2341 (D) Subsection 59-12-103 (1)(e);
2342 (E) Subsection 59-12-103 (1)(f);
2343 (F) Subsection 59-12-103 (1)(g);
2344 (G) Subsection 59-12-103 (1)(h);
2345 (H) Subsection 59-12-103 (1)(i);
2346 (I) Subsection 59-12-103 (1)(j); or
2347 (J) Subsection 59-12-103 (1)(k).
2348 (c) (i) If a tax due under this chapter on a catalogue sale is computed on the basis of
2349 sales and use tax rates published in the catalogue, an enactment, repeal, or change in the rate of
2350 a tax described in Subsection (9)(a)(i) takes effect:
2351 (A) on the first day of a calendar quarter; and
2352 (B) beginning 60 days after the effective date of the enactment, repeal, or change in the

2353 rate of the tax under Subsection (9)(a)(i).
2354 (ii) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act,
2355 the commission may by rule define the term "catalogue sale."
2356 (d) (i) Except as provided in Subsection (9)(e) or (f), if, for an annexation that occurs
2357 on or after April 1, 2007, the annexation will result in the enactment, repeal, or change in the
2358 rate of a tax under this part for an annexing area, the enactment, repeal, or change shall take
2359 effect:
2360 (A) on the first day of a calendar quarter; and
2361 (B) after a 90-day period beginning on the date the commission receives notice meeting
2362 the requirements of Subsection (9)(d)(ii) from the county that annexes the annexing area.
2363 (ii) The notice described in Subsection (9)(d)(i)(B) shall state:
2364 (A) that the annexation described in Subsection (9)(d)(i)(B) will result in an enactment,
2365 repeal, or change in the rate of a tax under this part for the annexing area;
2366 (B) the statutory authority for the tax described in Subsection (9)(d)(ii)(A);
2367 (C) the effective date of the tax described in Subsection (9)(d)(ii)(A); and
2368 (D) if the county enacts the tax or changes the rate of the tax described in Subsection
2369 (9)(d)(ii)(A), the rate of the tax.
2370 (e) (i) For a transaction described in Subsection (9)(e)(iii), if the billing period for the
2371 transaction begins before the effective date of the enactment of the tax or a tax rate increase
2372 under Subsection (1), the enactment of a tax or a tax rate increase shall take effect on the first
2373 day of the first billing period that begins after the effective date of the enactment of the tax or
2374 the tax rate increase.
2375 (ii) For a transaction described in Subsection (9)(e)(iii), if the billing period for the
2376 transaction begins before the effective date of the repeal of the tax or the tax rate decrease
2377 imposed under Subsection (1), the repeal of a tax or a tax rate decrease shall take effect on the
2378 first day of the last billing period that began before the effective date of the repeal of the tax or
2379 the tax rate decrease.
2380 (iii) Subsections (9)(e)(i) and (ii) apply to transactions subject to a tax under:
2381 (A) Subsection 59-12-103 (1)(b);
2382 (B) Subsection 59-12-103 (1)(c);
2383 (C) Subsection 59-12-103 (1)(d);

2384 (D) Subsection 59-12-103 (1)(e);
2385 (E) Subsection 59-12-103 (1)(f);
2386 (F) Subsection 59-12-103 (1)(g);
2387 (G) Subsection 59-12-103 (1)(h);
2388 (H) Subsection 59-12-103 (1)(i);
2389 (I) Subsection 59-12-103 (1)(j); or
2390 (J) Subsection 59-12-103 (1)(k).
2391 (f) (i) If a tax due under this chapter on a catalogue sale is computed on the basis of
2392 sales and use tax rates published in the catalogue, an enactment, repeal, or change in the rate of
2393 a tax described in Subsection (9)(d)(i) takes effect:
2394 (A) on the first day of a calendar quarter; and
2395 (B) beginning 60 days after the effective date of the enactment, repeal, or change in the
2396 rate under Subsection (9)(d)(i).
2397 (ii) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act,
2398 the commission may by rule define the term "catalogue sale."
2399 Section 17. Section 59-12-1801 is enacted to read:
2400 Part 18. Local Option Sales and Use Tax for Public Transportation Systems Act
2401 59-12-1801. Title.
2402 This part is known as the "Local Option Sales and Use Tax for Public Transportation
2403 Systems Act."
2404 Section 18. Section 59-12-1802 is enacted to read:
2405 59-12-1802. Definitions.
2406 As used in this section:
2407 (1) "Qualifying city" means a city that:
2408 (a) imposed a tax in accordance with Section 59-12-501 on January 1, 2007; and
2409 (b) on July 1, 2007, is not located within the boundaries of a geographical area within
2410 which a state tax is imposed under Section 59-12-501 .
2411 (2) "Qualifying town" means a town that:
2412 (a) imposed a tax in accordance with Section 59-12-501 on January 1, 2007; and
2413 (b) on July 1, 2007, is not located within the boundaries of a geographical area within
2414 which a state tax is imposed under Section 59-12-501 .

2415 (3) "Qualifying unincorporated area" means a geographical area:
2416 (a) that is a portion of the unincorporated area of a county;
2417 (b) within which a tax was imposed in accordance with Section 59-12-501 on January
2418 1, 2007; and
2419 (c) that, on July 1, 2007, is not located within the boundaries of a geographical area
2420 within which a state tax is imposed under Section 59-12-501 .
2421 Section 19. Section 59-12-1803 is enacted to read:
2422 59-12-1803. Imposition of tax -- Base -- Rate.
2423 (1) Subject to the other provisions of this part, beginning on July 1, 2007, a sales and
2424 use tax of up to .25% may be imposed to fund a public transportation system:
2425 (a) by the legislative body of a qualifying city on the transactions described in
2426 Subsection 59-12-103 (1) located within the qualifying city;
2427 (b) by the legislative body of a qualifying town on the transactions described in
2428 Subsection 59-12-103 (1) located within the qualifying town; or
2429 (c) by the legislative body of a county on the transactions described in Subsection
2430 59-12-103 (1) located within a qualifying unincorporated area within the county.
2431 (2) Notwithstanding Subsection (1), a tax under this section may not be imposed on:
2432 (a) the sales and uses described in Section 59-12-104 to the extent the sales and uses
2433 are exempt from taxation under Section 59-12-104 ; or
2434 (b) any amounts paid or charged by a seller that collects a tax under Subsection
2435 59-12-107 (1)(b).
2436 (3) For purposes of this section, the location of a transaction shall be determined in
2437 accordance with Section 59-12-207 .
2438 Section 20. Section 59-12-1804 is enacted to read:
2439 59-12-1804. Enactment or repeal of tax -- Effective date -- Notice requirements --
2440 Administration, collection, and enforcement of tax.
2441 (1) For purposes of this section:
2442 (a) "Annexation" means an annexation to:
2443 (i) a county under Title 17, Chapter 2, Annexation to County; or
2444 (ii) a city or town under Title 10, Chapter 2, Part 4, Annexation.
2445 (b) "Annexing area" means an area that is annexed into a county, city, or town.

2446 (2) (a) Except as provided in Subsection (2)(c) or (d), if, on or after July 1, 2007, a
2447 county, city, or town enacts or repeals a tax under this part, the enactment or repeal shall take
2448 effect:
2449 (i) on the first day of a calendar quarter; and
2450 (ii) after a 90-day period beginning on the date the commission receives notice meeting
2451 the requirements of Subsection (2)(b) from the county, city, or town.
2452 (b) The notice described in Subsection (2)(a)(ii) shall state:
2453 (i) that the county, city, or town will enact or repeal a tax under this part;
2454 (ii) the statutory authority for the tax described in Subsection (2)(b)(i);
2455 (iii) the effective date of the tax described in Subsection (2)(b)(i); and
2456 (iv) if the county, city, or town enacts the tax described in Subsection (2)(b)(i), the rate
2457 of the tax.
2458 (c) (i) Notwithstanding Subsection (2)(a), for a transaction described in Subsection
2459 (2)(c)(iii), the enactment of a tax shall take effect on the first day of the first billing period that
2460 begins after the effective date of the enactment of the tax if the billing period for the transaction
2461 begins before the effective date of the enactment of the tax under this part.
2462 (ii) Notwithstanding Subsection (2)(a), for a transaction described in Subsection
2463 (2)(c)(iii), the repeal of a tax shall take effect on the first day of the last billing period that
2464 began before the effective date of the repeal of the tax if the billing period for the transaction
2465 begins before the effective date of the repeal of the tax imposed under this part.
2466 (iii) Subsections (2)(c)(i) and (ii) apply to transactions subject to a tax under:
2467 (A) Subsection 59-12-103 (1)(b);
2468 (B) Subsection 59-12-103 (1)(c);
2469 (C) Subsection 59-12-103 (1)(d);
2470 (D) Subsection 59-12-103 (1)(e);
2471 (E) Subsection 59-12-103 (1)(f);
2472 (F) Subsection 59-12-103 (1)(g);
2473 (G) Subsection 59-12-103 (1)(h);
2474 (H) Subsection 59-12-103 (1)(i);
2475 (I) Subsection 59-12-103 (1)(j); or
2476 (J) Subsection 59-12-103 (1)(k).

2477 (d) (i) Notwithstanding Subsection (2)(a), if a tax due under this chapter on a catalogue
2478 sale is computed on the basis of sales and use tax rates published in the catalogue, an
2479 enactment or repeal of a tax described in Subsection (2)(a) takes effect:
2480 (A) on the first day of a calendar quarter; and
2481 (B) beginning 60 days after the effective date of the enactment or repeal under
2482 Subsection (2)(a).
2483 (ii) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act,
2484 the commission may by rule define the term "catalogue sale."
2485 (3) (a) Except as provided in Subsection (3)(c) or (d), if, for an annexation that occurs
2486 on or after July 1, 2007, the annexation will result in the enactment or repeal of a tax under this
2487 part for an annexing area, the enactment or repeal shall take effect:
2488 (i) on the first day of a calendar quarter; and
2489 (ii) after a 90-day period beginning on the date the commission receives notice meeting
2490 the requirements of Subsection (3)(b) from the county, city, or town that annexes the annexing
2491 area.
2492 (b) The notice described in Subsection (3)(a)(ii) shall state:
2493 (i) that the annexation described in Subsection (3)(a) will result in an enactment or
2494 repeal of a tax under this part for the annexing area;
2495 (ii) the statutory authority for the tax described in Subsection (3)(b)(i);
2496 (iii) the effective date of the tax described in Subsection (3)(b)(i); and
2497 (iv) the rate of the tax described in Subsection (3)(b)(i).
2498 (c) (i) Notwithstanding Subsection (3)(a), for a transaction described in Subsection
2499 (3)(c)(iii), the enactment of a tax shall take effect on the first day of the first billing period that
2500 begins after the effective date of the enactment of the tax if the billing period for the transaction
2501 begins before the effective date of the enactment of the tax under this part.
2502 (ii) Notwithstanding Subsection (3)(a), for a transaction described in Subsection
2503 (3)(c)(iii), the repeal of a tax shall take effect on the first day of the last billing period that
2504 began before the effective date of the repeal of the tax if the billing period for the transaction
2505 begins before the effective date of the repeal of the tax imposed under this part.
2506 (iii) Subsections (3)(c)(i) and (ii) apply to transactions subject to a tax under:
2507 (A) Subsection 59-12-103 (1)(b);

2508 (B) Subsection 59-12-103 (1)(c);
2509 (C) Subsection 59-12-103 (1)(d);
2510 (D) Subsection 59-12-103 (1)(e);
2511 (E) Subsection 59-12-103 (1)(f);
2512 (F) Subsection 59-12-103 (1)(g);
2513 (G) Subsection 59-12-103 (1)(h);
2514 (H) Subsection 59-12-103 (1)(i);
2515 (I) Subsection 59-12-103 (1)(j); or
2516 (J) Subsection 59-12-103 (1)(k).
2517 (d) (i) Notwithstanding Subsection (3)(a), if a tax due under this part on a catalogue
2518 sale is computed on the basis of sales and use tax rates published in the catalogue, an
2519 enactment or repeal of a tax described in Subsection (3)(a) takes effect:
2520 (A) on the first day of a calendar quarter; and
2521 (B) beginning 60 days after the effective date of the enactment or repeal under
2522 Subsection (3)(a).
2523 (ii) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act,
2524 the commission may by rule define the term "catalogue sale."
2525 (4) (a) Except as provided in Subsection (4)(b), a tax authorized under this part shall be
2526 administered, collected, and enforced in accordance with:
2527 (i) the same procedures used to administer, collect, and enforce the tax under:
2528 (A) Part 1, Tax Collection; or
2529 (B) Part 2, Local Sales and Use Tax Act; and
2530 (ii) Chapter 1, General Taxation Policies.
2531 (b) Notwithstanding Subsection (4)(a), a tax under this part is not subject to
2532 Subsections 59-12-205 (2) through (7).
2533 Section 21. Section 63-56-502 is amended to read:
2534 63-56-502. Procurement of design-build transportation project contracts.
2535 (1) As used in this section:
2536 (a) "Design-build transportation project contract" means the procurement of both the
2537 design and construction of a transportation project in a single contract with a company or
2538 combination of companies capable of providing the necessary engineering services and

2539 construction.
2540 (b) "Transportation agency" means:
2541 (i) the Department of Transportation;
2542 (ii) a county of the first or second class, as defined in Section 17-50-501 ;
2543 (iii) a municipality of the first class, as defined in Section 10-2-301 ; and
2544 [(iv) a public transit district that has more than 200,000 people residing within its
2545 boundaries; and]
2546 [(v)] (iv) a public airport authority.
2547 (2) Except as provided in Subsection (3), a transportation agency may award a
2548 design-build transportation project contract for any transportation project that has an estimated
2549 cost of at least $50,000,000 by following the requirements of this section.
2550 (3) (a) The Department of Transportation:
2551 (i) may award a design-build transportation project contract for any transportation
2552 project by following the requirements of this section; and
2553 (ii) shall make rules, by following the procedures and requirements of Title 63, Chapter
2554 46a, Utah Administrative Rulemaking Act, establishing requirements for the procurement of its
2555 design-build transportation project contracts in addition to those required by this section.
2556 [(b) A public transit district that has more than 200,000 people residing within its
2557 boundaries:]
2558 [(i) may award a design-build transportation project contract for any transportation
2559 project by following the requirements of this section; and]
2560 [(ii) shall pass ordinances or a resolution establishing requirements for the procurement
2561 of its design-build transportation project contracts in addition to those required by this section.]
2562 [(c)] (b) A design-build transportation project contract authorized under this
2563 Subsection (3) is not subject to the estimated cost threshold under Subsection (2).
2564 (4) (a) Before entering a design-build transportation project contract, a transportation
2565 agency may issue a request for qualifications to prequalify potential contractors.
2566 (b) Public notice of the request for qualifications shall be given in accordance with
2567 policy board rules.
2568 (c) A transportation agency shall require, as part of the qualifications specified in the
2569 request for qualifications, that potential contractors at least demonstrate their:

2570 (i) construction experience;
2571 (ii) design experience;
2572 (iii) financial, manpower, and equipment resources available for the project; and
2573 (iv) experience in other design-build transportation projects with attributes similar to
2574 the project being procured.
2575 (d) The request for qualifications shall identify the number of eligible competing
2576 proposers that the transportation agency will select to submit a proposal, which must be at least
2577 two.
2578 (5) (a) The transportation agency shall:
2579 (i) evaluate the responses received from the request for qualifications;
2580 (ii) select from their number those qualified to submit proposals; and
2581 (iii) invite those respondents to submit proposals based upon the transportation
2582 agency's request for proposals.
2583 (b) (i) Except as provided in Subsection (5)(b)(ii), if the transportation agency fails to
2584 receive at least two qualified eligible competing proposers, the transportation agency shall
2585 readvertise the project.
2586 (ii) Until July 1, 2010, a transportation agency may award a contract for a
2587 transportation project that has an estimated cost of $5,000,000 or less to a qualified eligible
2588 proposer if:
2589 (A) only a single proposal is received; and
2590 (B) the transportation agency determines that:
2591 (I) the proposal is advantageous to the state; and
2592 (II) the proposal price is reasonable.
2593 (iii) The Transportation Interim Committee and Government Operations Interim
2594 Committee of the Legislature shall review Subsection (5)(b)(ii) prior to November 30, 2009.
2595 (6) The transportation agency shall issue a request for proposals to those qualified
2596 respondents that:
2597 (a) includes a scope of work statement constituting an information for proposal that
2598 may include:
2599 (i) preliminary design concepts;
2600 (ii) design criteria, needs, and objectives;

2601 (iii) warranty and quality control requirements;
2602 (iv) applicable standards;
2603 (v) environmental documents;
2604 (vi) constraints;
2605 (vii) time expectations or limitations;
2606 (viii) incentives or disincentives; and
2607 (ix) other special considerations;
2608 (b) requires submitters to provide:
2609 (i) a sealed cost proposal;
2610 (ii) a critical path matrix schedule, including cash flow requirements;
2611 (iii) proposal security; and
2612 (iv) other items required by the department for the project; and
2613 (c) may include award of a stipulated fee to be paid to submitters who submit
2614 unsuccessful proposals.
2615 (7) The transportation agency shall:
2616 (a) evaluate the submissions received in response to the request for proposals from the
2617 prequalified proposers;
2618 (b) comply with rules relating to discussion of proposals, best and final offers, and
2619 evaluations of the proposals submitted; and
2620 (c) after considering price and other identified factors, award the contract to the
2621 responsible proposer whose proposal is most advantageous to the state.
2622 Section 22. Section 72-1-102 is amended to read:
2623 72-1-102. Definitions.
2624 As used in this title:
2625 (1) "Commission" means the Transportation Commission created under Section
2626 72-1-301 .
2627 (2) "Construction" means the construction, reconstruction, replacement, and
2628 improvement of the highways, including the acquisition of rights-of-way and material sites.
2629 (3) "Department" means the Department of Transportation created in Section 72-1-201 .
2630 (4) "Executive director" means the executive director of the department appointed
2631 under Section 72-1-202 .

2632 (5) "Farm tractor" has the meaning set forth in Section 41-1a-102 .
2633 (6) "Federal aid primary highway" means that portion of connected main highways
2634 located within this state officially designated by the department and approved by the United
2635 States Secretary of Transportation under Title 23, Highways, U.S.C.
2636 (7) "Fixed guideway" means a public transit facility that uses and occupies:
2637 (a) rail for the use of public transit; or
2638 (b) a separate right-of-way for the use of public transit.
2639 [(7)] (8) "Highway" means any public road, street, alley, lane, court, place, viaduct,
2640 tunnel, culvert, bridge, or structure laid out or erected for public use, or dedicated or abandoned
2641 to the public, or made public in an action for the partition of real property, including the entire
2642 area within the right-of-way.
2643 [(8)] (9) "Highway authority" means the department or the legislative, executive, or
2644 governing body of a county or municipality.
2645 [(9)] (10) "Implement of husbandry" has the meaning set forth in Section 41-1a-102 .
2646 [(10)] (11) "Interstate system" means any highway officially designated by the
2647 department and included as part of the national interstate and defense highways, as provided in
2648 the Federal Aid Highway Act of 1956 and any supplemental acts or amendments.
2649 [(11)] (12) "Limited-access facility" means a highway especially designated for
2650 through traffic, and over, from, or to which neither owners nor occupants of abutting lands nor
2651 other persons have any right or easement, or have only a limited right or easement of access,
2652 light, air, or view.
2653 [(12)] (13) "Motor vehicle" has the same meaning set forth in Section 41-1a-102 .
2654 [(13)] (14) "Municipality" has the same meaning set forth in Section 10-1-104 .
2655 [(14)] (15) "National highway systems highways" means that portion of connected
2656 main highways located within this state officially designated by the department and approved
2657 by the United States Secretary of Transportation under Title 23, Highways, U.S.C.
2658 (16) "Person" has the same meaning as defined in Section 59-12-102 .
2659 [(15)] (17) (a) "Port-of-entry" means a fixed or temporary facility constructed,
2660 operated, and maintained by the department where drivers, vehicles, and vehicle loads are
2661 checked or inspected for compliance with state and federal laws as specified in Section
2662 72-9-501 .

2663 (b) "Port-of-entry" includes inspection and checking stations and weigh stations.
2664 [(16)] (18) "Port-of-entry agent" means a person employed at a port-of-entry to perform
2665 the duties specified in Section 72-9-501 .
2666 (19) "Public transit" means the transportation of passengers only and their incidental
2667 baggage by means other than:
2668 (a) chartered bus;
2669 (b) sightseeing bus;
2670 (c) taxi; or
2671 (d) other vehicle not on an individual passenger fare paying basis.
2672 [(17)] (20) "Right-of-way" means real property or an interest in real property, usually
2673 in a strip, acquired for or devoted to a highway.
2674 [(18)] (21) "Sealed" does not preclude acceptance of electronically sealed and submitted
2675 bids or proposals in addition to bids or proposals manually sealed and submitted.
2676 [(19)] (22) "Semitrailer" has the meaning set forth in Section 41-1a-102 .
2677 [(20)] (23) "SR" means state route and has the same meaning as state highway as
2678 defined in this section.
2679 [(21)] (24) "State highway" means those highways designated as state highways in
2680 Title 72, Chapter 4, Designation of State Highways Act.
2681 [(22)] (25) "State highway purposes" has the meaning set forth in Section 72-5-102 .
2682 [(23)] (26) "State transportation systems" means all streets, alleys, roads, highways,
2683 and thoroughfares of any kind, including connected structures, airports, spaceports, and all
2684 other modes and forms of conveyance used by the public.
2685 [(24)] (27) "Trailer" has the meaning set forth in Section 41-1a-102 .
2686 (28) "Transit facility" means a transit vehicle, transit station, depot, passenger loading
2687 or unloading zone, parking lot, or other facility leased by or operated by or on behalf of the
2688 department and related to the public transit services provided by the department, including
2689 railway or right-of-way, railway line, and a reasonable area immediately adjacent to a
2690 designated stop on the route traveled by a transit vehicle.
2691 (29) "Transit vehicle" means a passenger bus, coach, railcar, van, or other vehicle
2692 operated as public transportation by the department.
2693 [(25)] (30) "Truck tractor" has the meaning set forth in Section 41-1a-102 .

2694 [(26)] (31) "UDOT" means the Utah Department of Transportation.
2695 [(27)] (32) "Vehicle" has the same meaning set forth in Section 41-1a-102 .
2696 Section 23. Section 72-1-203 is amended to read:
2697 72-1-203. Deputy director -- Appointment -- Qualifications -- Other assistants
2698 and advisers -- Salaries.
2699 (1) The executive director shall appoint a [deputy] director of highways, who shall be a
2700 registered professional engineer in the state and shall serve at the discretion of the executive
2701 director.
2702 (2) (a) The [deputy] director of highways is the chief engineer of the department.
2703 (b) The [deputy] director of highways shall assist the executive director and is
2704 responsible for:
2705 [(a)] (i) highway program and project development; and
2706 [(b)] (ii) operation and maintenance of the state [transportation] highway systems.
2707 (3) (a) The executive director shall appoint a director of public transit, who shall have
2708 actual experience in the management, construction, and operation of public transit facilities and
2709 fixed guideways.
2710 (b) The director of public transit shall assist the executive director and is responsible
2711 for:
2712 (i) public transit program and project development;
2713 (ii) operation and maintenance of state public transit systems; and
2714 (iii) interfacing with metropolitan planning organizations and elected officials to
2715 develop and effectively operate state public transit systems.
2716 [(3)] (4) (a) The executive director may also appoint assistants to administer the
2717 divisions of the department.
2718 (b) These assistants shall serve at the discretion of the executive director.
2719 [(4)] (5) In addition, the executive director may employ other assistants and advisers as
2720 the executive director finds necessary and fix salaries in accordance with the salary standards
2721 adopted by the Department of Human Resource Management.
2722 Section 24. Section 72-1-204 is amended to read:
2723 72-1-204. Divisions enumerated -- Duties.
2724 The divisions of the department are:

2725 (1) the Administrative Services Division responsible for:
2726 (a) all personnel management including recruiting, training, testing, developing, and
2727 assisting the transition of personnel into the department;
2728 (b) maintaining records;
2729 (c) data processing;
2730 (d) procuring administrative supplies and equipment; and
2731 (e) risk management;
2732 (2) the Comptroller Division responsible for:
2733 (a) all financial aspects of the department, including budgeting, accounting, and
2734 contracting; and
2735 (b) providing all material data and documentation necessary for effective fiscal
2736 planning and programming;
2737 (3) the Internal Audit Division responsible for:
2738 (a) conducting and verifying all internal audits and reviews within the department;
2739 (b) performing financial and compliance audits to determine the allowability and
2740 reasonableness of proposals, accounting records, and final costs of consultants, contractors,
2741 utility companies, and other entities used by the department; and
2742 (c) implementing audit procedures that meet or exceed generally accepted auditing
2743 standards relating to revenues, expenditures, and funding;
2744 (4) the Community Relations Division responsible for:
2745 (a) coordinating, organizing, and managing the department's public hearing process;
2746 (b) responding to citizens' complaints and requests;
2747 (c) developing and implementing the department's public information programs;
2748 (d) assisting the divisions and regions in the department's citizen involvement
2749 programs; and
2750 (e) preparing and distributing internal department communications;
2751 (5) the Program Development Division responsible for:
2752 (a) developing transportation plans for state transportation systems;
2753 (b) collecting, processing, and storing transportation data to support department's
2754 engineering functions;
2755 (c) designating state transportation systems qualifications;

2756 (d) developing a statewide transportation improvement program for approval by the
2757 commission;
2758 (e) providing cartographic services to the department; and
2759 (f) assisting local governments in participating in federal-aid transportation programs;
2760 (6) the Highway Project Development Division responsible for:
2761 (a) developing statewide standards for highway project design and construction;
2762 (b) providing support for highway project development in the areas of design
2763 environment, right-of-way, materials testing, structures, value engineering, and construction;
2764 (c) designing specialty highway projects; and
2765 (d) performing research into materials and methods for construction of state
2766 transportation systems; [and]
2767 (7) the Highways and Aeronautics Operations Division responsible for:
2768 (a) maintaining the state highway transportation systems;
2769 (b) state highway transportation systems safety;
2770 (c) operating state ports-of-entry;
2771 (d) operating state motor carrier safety programs in accordance with this title and
2772 federal law;
2773 (e) aeronautical operations; and
2774 (f) providing equipment for department engineering and maintenance functions[.];
2775 (8) the Public Transit Project Development Division responsible for:
2776 (a) developing statewide standards for public transit facility design and construction;
2777 (b) providing support for public transit facility and fixed guideway development in the
2778 areas of design, environment, right-of-way, materials testing, structures, value engineering, and
2779 construction;
2780 (c) designing specialty transit facility and fixed guideway projects; and
2781 (d) performing research into materials and methods for construction of state public
2782 transit or fixed guideway systems; and
2783 (9) the Public Transit Operations Division responsible for:
2784 (a) maintaining the state public transit systems;
2785 (b) state public transit systems safety; and
2786 (c) operating public transit systems in accordance with this title and federal law.

2787 Section 25. Section 72-1-301 is amended to read:
2788 72-1-301. Transportation Commission created -- Members, appointment, terms --
2789 Qualifications -- Pay and expenses -- Chair -- Quorum -- Surety bond.
2790 (1) (a) There is created the Transportation Commission which shall consist of [seven]
2791 11 members.
2792 (b) The members of the commission shall be residents of Utah.
2793 (c) No more than [four] six of the commissioners shall be members of any one political
2794 party.
2795 (d) (i) The commissioners shall be appointed by the governor, with the consent of the
2796 Senate, for a term of six years, beginning on April 1 of odd-numbered years, except as provided
2797 under Subsection (1)(d)(ii).
2798 (ii) The first two additional commissioners serving on the seven member commission
2799 shall be appointed for terms of two years nine months and four years nine months, respectively,
2800 initially commencing on July 1, 1996, and subsequently commencing as specified under
2801 Subsection (1)(d)(i).
2802 (e) The commissioners serve on a part-time basis.
2803 (f) Each commissioner shall remain in office until a successor is appointed and
2804 qualified.
2805 (2) The selection of the commissioners shall be as follows:
2806 (a) one commissioner from Box Elder, Cache, or Rich county;
2807 (b) one commissioner from Salt Lake or Tooele county;
2808 (c) one commissioner from Carbon, Emery, Grand, or San Juan county;
2809 (d) one commissioner from Beaver, Garfield, Iron, Kane, Millard, Piute, Sanpete,
2810 Sevier, Washington, or Wayne county;
2811 (e) one commissioner from Weber, Davis, or Morgan county;
2812 (f) one commissioner from Juab, Utah, Wasatch, Duchesne, Summit, Uintah, or
2813 Daggett county; [and]
2814 (g) one commissioner from Salt Lake County that represents the interests of public
2815 transit;
2816 (h) one commissioner from Davis or Weber county that represents the interests of
2817 public transit;

2818 (i) one commissioner from Utah or Tooele county that represents the interests of public
2819 transit; and
2820 [(g)] (j) [one commissioner] two commissioners selected from the state at large.
2821 (3) (a) Members appointed before May 2, 1996, shall continue to receive the
2822 compensation, per diem, expenses, and benefits they were receiving as of January 1, 1996.
2823 (b) Members appointed after May 2, 1996, shall receive no compensation or benefits
2824 for their services, but may receive per diem and expenses incurred in the performance of the
2825 member's official duties at the rates established by the Division of Finance under Sections
2826 63A-3-106 and 63A-3-107 .
2827 (c) Members may decline to receive compensation, benefits, per diem, and expenses
2828 for their service.
2829 (4) (a) One member of the commission shall be designated by the governor as chair.
2830 (b) The commission shall select one member as vice chair to act in the chair's absence.
2831 (5) Any four commissioners constitute a quorum.
2832 (6) (a) Each member of the commission shall qualify by:
2833 (i) taking the constitutional oath of office; and
2834 (ii) giving a surety bond.
2835 (b) The Division of Finance of the Department of Administrative Services shall
2836 determine the form and amount of the bond, and the state shall pay the bond premium.
2837 Section 26. Section 72-1-303 is amended to read:
2838 72-1-303. Duties of commission.
2839 (1) The commission has the following duties:
2840 [(1)] (a) determining priorities and funding levels of projects in the state transportation
2841 systems for each fiscal year based on project lists compiled by the department;
2842 [(2)] (b) determining additions and deletions to state highways under Chapter 4,
2843 Designation of State Highways Act;
2844 [(3)] (c) holding public hearings and otherwise providing for public input in
2845 transportation matters;
2846 [(4)] (d) making policies and rules in accordance with Title 63, Chapter 46a, Utah
2847 Administrative Rulemaking Act, necessary to perform the commission's duties described under
2848 this section;

2849 [(5)] (e) in accordance with Section 63-46b-12 , reviewing orders issued by the
2850 executive director in adjudicative proceedings held in accordance with Title 63, Chapter 46b,
2851 Administrative Procedures Act;
2852 [(6)] (f) advising the department in state transportation systems policy;
2853 [(7)] (g) approving settlement agreements of condemnation cases subject to Section
2854 63-38b-401 ;
2855 [(8)] (h) in accordance with Section 17A-2-1038 , appointing a commissioner to serve
2856 as a nonvoting, ex officio member on the board of trustees of a public transit district;
2857 [(9)] (i) in accordance with Section 17A-2-1039 , reviewing, at least annually, the
2858 short-term and long-range public transit plans; and
2859 [(10)] (j) reviewing administrative rules made, amended, or repealed by the
2860 department.
2861 (2) The commission has the following duties with respect to public transit facilities:
2862 (a) determining the public transit facilities that should be acquired or constructed;
2863 (b) supervising and regulating every transit facility owned and operated by the
2864 department, including the fixing of rates, fares, rentals, charges, and classifications thereof, and
2865 making and enforcement of rules, regulations, contracts, practices, and schedules, for or in
2866 connection with any public transit facility owned or controlled by the department; and
2867 (c) making rules in accordance with Title 63, Chapter 46a, Utah Administrative
2868 Rulemaking Act, necessary for the government and management of the affairs of public transit
2869 facilities owned or operated by the department and for carrying into effect the provisions of this
2870 title.
2871 Section 27. Section 72-2-121 is amended to read:
2872 72-2-121. Public Transportation System Tax Highway Fund.
2873 (1) There is created a special revenue fund entitled the Public Transportation System
2874 Tax Highway Fund.
2875 (2) The fund consists of monies generated from the following revenue sources:
2876 (a) any voluntary contributions received for new construction, major renovations, and
2877 improvements to Interstate 15 and state highways within a county of the first class;
2878 (b) the portion of the sales and use tax described in Subsection 59-12-502 (5)[(a)(ii)](b)
2879 deposited in or transferred to the fund [through an interlocal agreement]; and

2880 (c) the portion of the sales and use tax described in Subsection 59-12-1703 (4)(a)(ii)
2881 and required by Subsection 59-12-1703 (7)(b)(ii) to be deposited in or transferred to the fund.
2882 (3) (a) The fund shall earn interest.
2883 (b) All interest earned on fund monies shall be deposited into the fund.
2884 (4) The executive director may use fund monies, as prioritized by the Transportation
2885 Commission:
2886 (a) for the portion of the monies generated from the revenue sources described in
2887 Subsections (2)(a) and (b), only for new construction, major renovations, and improvements to
2888 Interstate 15 and state highways within a county of the first class and to pay any debt service
2889 and bond issuance costs related to those projects; and
2890 (b) for the portion of the monies generated from the revenue sources described in
2891 Subsection (2)(c), only for state highway corridor preservation for new state highway projects
2892 within a county of the first class, to pay any debt service and bond issuance costs related to
2893 those projects, and shall not supplant monies already designated for state projects.
2894 (5) The additional administrative costs of the department to administer this fund shall
2895 be paid from the monies in the fund.
2896 Section 28. Section 72-2-301 is enacted to read:
2897 Part 3. Public Transit Fund
2898 72-2-301. Public Transit Fund.
2899 (1) There is created a fund entitled the "Public Transit Fund."
2900 (2) The fund consists of monies generated from the following revenue sources:
2901 (a) any voluntary contributions received for the construction, operation, and
2902 maintenance of public transit facilities;
2903 (b) appropriations made to the fund by the Legislature;
2904 (c) the sales and use tax amounts provided for in Sections 59-12-501 and 59-12-502 ;
2905 and
2906 (d) passenger fares imposed in accordance with Section 72-14-201 .
2907 (3) (a) The fund shall earn interest.
2908 (b) All interest earned on fund monies shall be deposited into the fund.
2909 (4) The executive director may use fund monies, as prioritized by the Transportation
2910 Commission, only to pay the costs of construction, major reconstruction, major renovation,

2911 operations, or maintenance of public transit facilities.
2912 Section 29. Section 72-6-115 is amended to read:
2913 72-6-115. Traffic Management Committee -- Appointment -- Duties.
2914 (1) As used in this section, "committee" means the Traffic Management Committee
2915 created in this section.
2916 (2) (a) There is created within the Department of Transportation the Traffic
2917 Management Committee comprising up to 13 members knowledgeable about traffic
2918 engineering, traffic flow, air quality, or intelligent transportation systems as follows:
2919 (i) two members designated by the executive director of the department;
2920 (ii) one member designated by the Utah Association of Counties;
2921 (iii) one member designated by the Department of Environmental Quality;
2922 (iv) one member designated by the Wasatch Front Regional Council;
2923 (v) one member designated by the Mountainland Association of Governments;
2924 (vi) one member designated by the Commissioner of Public Safety; [and]
2925 (vii) one member designated by the Utah League of Cities and Towns;
2926 (viii) one member designated by the [general manager of a public transit district with
2927 more than 200,000 people residing within the public transit district boundaries] executive
2928 director representing the interests of state public transit facilities;
2929 (ix) up to four additional members designated by the committee for one-year terms;
2930 and
2931 (x) a designating entity under Subsections (2)(a)(i) through (viii) may designate an
2932 alternative member to serve in the absence of its designated member.
2933 (b) The committee shall:
2934 (i) advise the department on matters related to the implementation and administration
2935 of this section;
2936 (ii) make recommendations to law enforcement agencies related to traffic flow and
2937 incident management during heavy traffic periods;
2938 (iii) make recommendations to the department, counties, and municipalities on
2939 increasing the safety and efficiency of highways using current traffic management systems,
2940 including traffic signal coordination, traffic monitoring, freeway ramp metering, variable
2941 message signing, and incident management; and

2942 (iv) evaluate the cost effectiveness of implementing a specific traffic management
2943 system on a highway considering:
2944 (A) existing traffic volume in the area;
2945 (B) the necessity and potential of reducing vehicle emissions in the area;
2946 (C) the feasibility of the traffic management system on the highway; and
2947 (D) whether traffic congestion will be reduced by the system.
2948 (c) The committee shall annually elect a chair and a vice chair from its members.
2949 (d) When a vacancy occurs in the membership for any reason, the replacement shall be
2950 appointed.
2951 (e) The committee shall meet as it determines necessary to accomplish its duties.
2952 (f) Reasonable notice shall be given to each member of the committee prior to any
2953 meeting.
2954 (g) A majority of the committee constitutes a quorum for the transaction of business.
2955 (h) (i) (A) Members who are not government employees shall receive no compensation
2956 or benefits for their services, but may receive per diem and expenses incurred in the
2957 performance of the member's official duties at the rates established by the Division of Finance
2958 under Sections 63A-3-106 and 63A-3-107 .
2959 (B) Members may decline to receive per diem and expenses for their service.
2960 (ii) (A) State government officer and employee members who do not receive salary, per
2961 diem, or expenses from their agency for their service may receive per diem and expenses
2962 incurred in the performance of their official duties from the committee at the rates established
2963 by the Division of Finance under Sections 63A-3-106 and 63A-3-107 .
2964 (B) State government officer and employee members may decline to receive per diem
2965 and expenses for their service.
2966 (iii) (A) Local government members who do not receive salary, per diem, or expenses
2967 from the entity that they represent for their service may receive per diem and expenses incurred
2968 in the performance of their official duties at the rates established by the Division of Finance
2969 under Sections 63A-3-106 and 63A-3-107 .
2970 (B) Local government members may decline to receive per diem and expenses for their
2971 service.
2972 (3) (a) The Department of Transportation shall implement and administer traffic

2973 management systems to facilitate the efficient flow of motor vehicle traffic on state highways
2974 to improve regional mobility, and to reduce motor vehicle emissions where those
2975 improvements are cost effective, as determined by the committee in accordance with criteria
2976 under Subsection (2)(b).
2977 (b) A traffic management system shall be designed to allow safe, efficient, and
2978 effective:
2979 (i) integration of existing traffic management systems;
2980 (ii) additions of highways and intersections under county and city administrative
2981 jurisdiction;
2982 (iii) incorporation of other traffic management systems; and
2983 (iv) adaptation to future traffic needs.
2984 (4) (a) The cost of implementing and administering a traffic management system shall
2985 be shared pro rata by the department and the counties and municipalities using it.
2986 (b) The department shall enter into an agreement or contract under Title 11, Chapter
2987 13, Interlocal Cooperation Act, with a county or municipality to share costs incurred under this
2988 section.
2989 (5) Additional highways and intersections under the administrative jurisdiction of a
2990 county or municipality may be added to a traffic management system upon application of the
2991 county or municipality after:
2992 (a) a recommendation of the committee;
2993 (b) approval by the department;
2994 (c) determination of the appropriate cost share of the addition under Subsection (4)(a);
2995 and
2996 (d) an agreement under Subsection (4)(b).
2997 (6) The committee may establish technical advisory committees as needed to assist in
2998 accomplishing its duties under this section.
2999 Section 30. Section 72-10-102 is amended to read:
3000 72-10-102. Definitions.
3001 As used in this chapter:
3002 (1) "Acrobatics" means the intentional maneuvers of an aircraft not necessary to air
3003 navigation.

3004 (2) "Aeronautics" means transportation by aircraft, air instruction, the operation, repair,
3005 or maintenance of aircraft, and the design, operation, repair, or maintenance of airports, or
3006 other air navigation facilities.
3007 (3) "Aeronautics instructor" means any individual engaged in giving or offering to give
3008 instruction in aeronautics, flying, or ground subjects, either with or without:
3009 (a) compensation or other reward;
3010 (b) advertising the occupation;
3011 (c) calling his facilities an air school, or any equivalent term; or
3012 (d) employing or using other instructors.
3013 (4) "Aircraft" means any contrivance now known or in the future invented, used, or
3014 designed for navigation of or flight in the air.
3015 (5) "Air instruction" means the imparting of aeronautical information by any aviation
3016 instructor or in any air school or flying club.
3017 (6) "Airport" means any area of land, water, or both, that:
3018 (a) is used or is made available for landing and takeoff;
3019 (b) provides facilities for the shelter, supply, and repair of aircraft, and handling of
3020 passengers and cargo; and
3021 (c) meets the minimum requirements established by the division as to size and design,
3022 surface, marking, equipment, and operation.
3023 (7) "Airport authority" means a political subdivision of the state, other than a county or
3024 municipality, that is authorized by statute to operate an airport.
3025 (8) "Air school" means any person engaged in giving, offering to give, or advertising,
3026 representing, or holding himself out as giving, with or without compensation or other reward,
3027 instruction in aeronautics, flying, or ground subjects, or in more than one of these subjects.
3028 (9) "Airworthiness" means conformity with requirements prescribed by the Federal
3029 Aviation Administration regarding the structure or functioning of aircraft, engine, parts, or
3030 accessories.
3031 (10) "Antique aircraft" means a civil aircraft that is:
3032 (a) 30 years old or older, calculated as to include the current year;
3033 (b) primarily a collector's item and used solely for recreational or display purposes;
3034 (c) not used for daily or regular transportation; and

3035 (d) not used for commercial operations.
3036 (11) "Civil aircraft" means any aircraft other than a public aircraft.
3037 (12) "Commercial aircraft" means aircraft used for commercial purposes.
3038 (13) "Commercial airport" means a landing area, landing strip, or airport that may be
3039 used for commercial operations.
3040 (14) "Commercial flight operator" means a person who conducts commercial
3041 operations.
3042 (15) "Commercial operations" means:
3043 (a) any operations of an aircraft for compensation or hire or any services performed
3044 incidental to the operation of any aircraft for which a fee is charged or compensation is
3045 received, including the servicing, maintaining, and repairing of aircraft, the rental or charter of
3046 aircraft, the operation of flight or ground schools, the operation of aircraft for the application or
3047 distribution of chemicals or other substances, and the operation of aircraft for hunting and
3048 fishing; or
3049 (b) the brokering or selling of any of these services; but
3050 (c) does not include any operations of aircraft as common carriers certificated by the
3051 federal government or the services incidental to those operations.
3052 (16) "Dealer" means any person who is actively engaged in the business of flying for
3053 demonstration purposes, or selling or exchanging aircraft, and who has an established place of
3054 business.
3055 (17) "Division" means the Highways and Aeronautics Operations Division in the
3056 Department of Transportation, created in Section 72-1-204 .
3057 (18) "Experimental aircraft" means:
3058 (a) any aircraft designated by the Federal Aviation Administration or the military as
3059 experimental and used solely for the purpose of experiments, or tests regarding the structure or
3060 functioning of aircraft, engines, or their accessories; and
3061 (b) any aircraft designated by the Federal Aviation Administration as:
3062 (i) being custom or amateur built; and
3063 (ii) used for recreational, educational, or display purposes.
3064 (19) "Flight" means any kind of locomotion by aircraft while in the air.
3065 (20) "Flying club" means five or more persons who for neither profit nor reward own,

3066 lease, or use one or more aircraft for the purpose of instruction, pleasure, or both.
3067 (21) "Glider" means an aircraft heavier than air, similar to an airplane, but without a
3068 power plant.
3069 (22) "Mechanic" means a person who constructs, repairs, adjusts, inspects, or
3070 overhauls aircraft, engines, or accessories.
3071 (23) "Parachute jumper" means any person who has passed the required test for
3072 jumping with a parachute from an aircraft, and has passed an examination showing that he
3073 possesses the required physical and mental qualifications for the jumping.
3074 (24) "Parachute rigger" means any person who has passed the required test for packing,
3075 repairing, and maintaining parachutes.
3076 (25) "Passenger aircraft" means aircraft used for transporting persons, in addition to the
3077 pilot or crew, with or without their necessary personal belongings.
3078 (26) "Person" means any individual, corporation, limited liability company, or
3079 association of individuals.
3080 (27) "Pilot" means any person who operates the controls of an aircraft while in-flight.
3081 (28) "Primary glider" means any glider that has a gliding angle of less than ten to one.
3082 (29) "Public aircraft" means an aircraft used exclusively in the service of any
3083 government or of any political subdivision, including the government of the United States, of
3084 the District of Columbia, and of any state, territory, or insular possession of the United States,
3085 but not including any government-owned aircraft engaged in carrying persons or goods for
3086 commercial purposes.
3087 (30) "Reckless flying" means the operation or piloting of any aircraft recklessly, or in a
3088 manner as to endanger the property, life, or body of any person, due regard being given to the
3089 prevailing weather conditions, field conditions, and to the territory being flown over.
3090 (31) "Registration number" means the number assigned by the Federal Aviation
3091 Administration to any aircraft, whether or not the number includes a letter or letters.
3092 (32) "Secondary glider" means any glider that has a gliding angle between ten to one
3093 and 16 to one, inclusive.
3094 (33) "Soaring glider" means any glider that has a gliding angle of more than 16 to one.
3095 Section 31. Section 72-14-101 is enacted to read:
3096 CHAPTER 14. PUBLIC TRANSIT ACT

3097 Part 1. General Provisions
3098 72-14-101. Title -- Legislative findings.
3099 (1) This chapter is known as the "Public Transit Act."
3100 (2) The Legislature hereby finds and declares that:
3101 (a) the predominant part of the state's population is located in its rapidly expanding
3102 metropolitan and other urban areas which generally cross the boundary lines of local
3103 jurisdictions and often extend into two or more counties;
3104 (b) the welfare and vitality of urban areas, the satisfactory movement of people within
3105 these areas, the lessening of traffic congestion and the effectiveness of housing, tourist,
3106 highway, and other governmental programs, are being jeopardized thereby; and
3107 (c) the problems involved in adequately furnishing public urban transportation for the
3108 present and future needs of the people of the state are of such magnitude and complexity that
3109 the various urban transit districts, municipalities, and counties acting individually, lack the
3110 ability, finances, and jurisdiction to resolve, establish, and coordinate urban transportation.
3111 (3) Therefore, it is essential to establish a division within the Department of
3112 Transportation to provide public transit which can exercise jurisdiction without being restricted
3113 to municipal corporate or county limits and represents the interests of the state in the
3114 coordination of urban transportation systems.
3115 (4) It is the purpose of this part to provide the means necessary to provide public transit
3116 services for persons presently and in the future.
3117 Section 32. Section 72-14-102 is enacted to read:
3118 72-14-102. Department public transit responsibilities -- Employee rights.
3119 (1) (a) Beginning on July 1, 2007, the department shall:
3120 (i) provide a public transit system for the transportation of passengers and their
3121 incidental baggage for a county, city, town, or unincorporated area if the county, city, town, or
3122 unincorporated area was within the boundaries of a transit district:
3123 (A) organized under Title 17A, Chapter 2, Part 10, Utah Public Transit District Act;
3124 (B) as the boundaries of that transit district existed on January 1, 2007; and
3125 (C) if that transit district comprised of a geographical area consisting of more than one
3126 county;
3127 (ii) purchase all supplies, equipment, and materials necessary for the construction,

3128 maintenance, and operation of public transit facilities;
3129 (iii) construct public transit facilities and works; and
3130 (iv) acquire, contract for, lease, construct, own, operate, control, or use rights-of-way,
3131 rail lines, monorails, bus lines, stations, platforms, switches, yards, terminals, parking lots, any
3132 facilities necessary or convenient for public transit service, and all structures necessary for
3133 access by persons and vehicles.
3134 (b) The department may:
3135 (i) provide the public transit services required under this section; or
3136 (ii) contract with another person to provide the public transit services required under
3137 this section.
3138 (2) (a) Employees of a public transit district described under Subsection (1)(a), to the
3139 extent necessary for the operation of public transit facilities by the department, except
3140 executive or administrative officers and employees, shall be transferred to and appointed
3141 employees of the department.
3142 (b) The employees under Subsection (2)(a) shall be given sick leave, seniority,
3143 vacation, and pension or retirement credits in accordance with the records of the public transit
3144 district dissolved in accordance with Subsection 17A-2-1016 (6).
3145 (c) Members and beneficiaries of any pension or retirement plan or other program of
3146 benefits established by the dissolved public transit district, shall continue to have rights,
3147 privileges, benefits, obligations, and status with respect to the pension or retirement plan or
3148 program.
3149 (d) Terms, conditions, and provisions of any pension or retirement plan or of any
3150 amendment or modification to the pension or retirement plan affecting employees may be
3151 established, amended, or modified by agreement with the employees or their duly authorized
3152 representatives.
3153 Section 33. Section 72-14-103 is enacted to read:
3154 72-14-103. Participation in federal programs authorized.
3155 (1) The department may solicit, contract, accept grants, contributions, or loans from the
3156 United States, or any department, instrumentality, or agency of the United States to:
3157 (a) establish, finance, construct, improve, maintain, or operate transit facilities and
3158 equipment; or

3159 (b) to study and plan transit facilities in accordance with any legislation Congress has
3160 adopted or may adopt.
3161 (2) The department may do all things necessary within the limitations imposed under
3162 this chapter in order to avail itself of any aid, assistance, or cooperation available under federal
3163 legislation, including compliance with labor standards and the making of arrangements for
3164 employees as may be required by the United States or any department, instrumentality, or
3165 agency of the United States.
3166 Section 34. Section 72-14-104 is enacted to read:
3167 72-14-104. Traffic laws applicable.
3168 The department is subject, in the operation of its transit facilities, transit vehicles, and
3169 equipment, to the laws and regulations of the state and of applicable municipalities relating to
3170 traffic and operation of vehicles upon the streets and highways of the state.
3171 Section 35. Section 72-14-105 is enacted to read:
3172 72-14-105. Employee rights and benefits extended under federal law to apply.
3173 (1) The rights, benefits, and other employee protective conditions and remedies of
3174 Section 13(c) of the Urban Mass Transportation Act of 1964, as amended by 49 U.S.C.
3175 5333(b), as determined by the Secretary of Labor, apply to:
3176 (a) the department's establishment and operation of a public transit service or system;
3177 and
3178 (b) a lease, contract, or other arrangement that the department enters into for the
3179 operation of a public transit service or system.
3180 (2) Whenever the department operates a public transit system or service, or enters into
3181 any lease, contract, or other arrangement for the operation of a public transit system or service,
3182 the department shall take such action as may be necessary to extend to employees or affected
3183 public transit service systems furnishing like services, in accordance with seniority, the first
3184 opportunity for reasonably comparable employment in any available nonsupervisory jobs in
3185 respect to such operations for which they can qualify after a reasonable training period.
3186 (3) Employment under Subsection (2) shall not result in any worsening of the
3187 employee's position in the employee's former employment or any loss of wages, hours, working
3188 conditions, seniority, fringe benefits, and rights and privileges pertaining thereto.
3189 Section 36. Section 72-14-106 is enacted to read:

3190 72-14-106. Employees may organize and bargain collectively -- Strikes prohibited
3191 -- District to enter into bargaining agreements.
3192 (1) Except as provided in Subsection (2), employees of any public transit system
3193 established and operated by the department shall have the right to self-organization, to form,
3194 join, or assist labor organizations and to bargain collectively through representatives of their
3195 own choosing.
3196 (2) Employees of a public transit system established and operated by the department
3197 and labor organizations may not join in any strike against the public transit system.
3198 (3) The district shall recognize and bargain exclusively with any labor organization
3199 representing a majority of its employees in an appropriate unit with respect to wages, salaries,
3200 hours, working conditions, and welfare and pension and retirement provisions, and, upon
3201 reaching agreement with such labor organization, to enter into and execute a written contract
3202 incorporating therein the agreements so reached.
3203 Section 37. Section 72-14-201 is enacted to read:
3204 Part 2. Passenger Fares
3205 72-14-201. Establishment of passenger fares.
3206 (1) (a) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act,
3207 the commission shall set the amount of any rates or charges for public transit services provided.
3208 (b) Rates and charges established under this section for public transit services provided
3209 shall be reasonable.
3210 (c) To the extent practicable, rates and charges established by the commission under
3211 this Subsection (1) shall result in enough revenue to make the transit system self-supporting
3212 and sufficient to:
3213 (i) pay the operating expenses of the public transit service provided;
3214 (ii) provide for repairs, maintenance, and depreciation of works and property owned or
3215 operated by the department;
3216 (iii) provide for the purchase, lease, or acquisition of property and equipment; and
3217 (iv) provide for payment of contracts, agreements, leases, and other legal liabilities
3218 incurred by the department.
3219 (2) Rates or charges collected under this section shall be deposited in the Public
3220 Transportation Fund created by Section 72-2-301 .

3221 Section 38. Section 72-14-202 is enacted to read:
3222 72-14-202. Failure to pay fare -- Infraction.
3223 (1) A person may not ride a transit vehicle without payment of the applicable fare
3224 established by the commission.
3225 (2) A person who violates Subsection (1) is guilty of an infraction.
3226 Section 39. Section 72-14-203 is enacted to read:
3227 72-14-203. Law enforcement officers.
3228 (1) The department may employ law enforcement officers or contract with other law
3229 enforcement agencies to provide law enforcement services for public transit facilities.
3230 (2) A law enforcement officer employed or provided by contract under Subsection (1)
3231 is a law enforcement officer under Section 53-13-103 and shall be subject to the provisions of
3232 that section.
3233 Section 40. Section 76-10-1503 is amended to read:
3234 76-10-1503. Definitions.
3235 As used in this act:
3236 (1) "Bus" means any passenger bus or coach or other motor vehicle having a seating
3237 capacity of 15 or more passengers operated by a bus company for the purpose of carrying
3238 passengers or cargo for hire and includes a transit vehicle, as defined in Section 17A-2-1004 ,
3239 of:
3240 (a) a public transit district under Title 17A, Chapter 2, Part 10, Utah Public Transit
3241 District Act: or
3242 (b) the Department of Transportation.
3243 (2) "Bus company" or "company" means any person, group of persons or corporation
3244 providing for-hire transportation to passengers or cargo by bus upon the highways in the state,
3245 including passengers and cargo in interstate or intrastate travel. These terms also include local
3246 public bodies, public transit districts, municipalities, public corporations, boards and
3247 commissions established under the laws of the state providing transportation to passengers or
3248 cargo by bus upon the highways in the state, whether or not for hire.
3249 (3) "Charter" means a group of persons, pursuant to a common purpose and under a
3250 single contract, and at a fixed charge in accordance with a bus company's tariff, which has
3251 acquired the exclusive use of a bus to travel together to a specified destination or destinations.

3252 (4) "Passenger" means any person transported or served by a bus company, including
3253 persons accompanying or meeting another being transported, any person shipping or receiving
3254 cargo and any person purchasing a ticket or receiving a pass.
3255 (5) (a) "Terminal" means a bus station or depot or any other facility operated or leased
3256 by or operated on behalf of a bus company and includes a transit facility, as defined in Section
3257 17A-2-1004 , of:
3258 (i) a public transit district under Title 17A, Chapter 2, Part 10, Utah Public Transit
3259 District Act; or
3260 (ii) the Department of Transportation.
3261 (b) [This term] "Terminal" includes a reasonable area immediately adjacent to any
3262 designated stop along the route traveled by any bus operated by a bus company and parking lots
3263 or areas adjacent to terminals.
3264 Section 41. Repealer.
3265 This bill repeals:
3266 Section 59-12-503, Public transit taxes -- Local option direct transfer.
3267 Section 42. Effective date.
3268 This bill takes effect on January 1, 2008.




Legislative Review Note
as of 2-5-07 10:54 AM

Office of Legislative Research and General Counsel