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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             17      shall be withdrawn from the public transit district as of January 1, 2008; and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             29      counties, cities, towns, or unincorporated areas that are withdrawn from a public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


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