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S.B. 225

             1     

TRANSPORTATION REVISIONS

             2     
2012 GENERAL SESSION

             3     
STATE OF UTAH

             4     
Chief Sponsor: J. Stuart Adams

             5     
House Sponsor: Gage Froerer

             6     
             7      LONG TITLE
             8      General Description:
             9          This bill modifies provisions relating to transportation funding.
             10      Highlighted Provisions:
             11          This bill:
             12          .    provides that certain registration fees shall be deposited in the Transportation
             13      Investment Fund of 2005 rather than the Centennial Highway Fund Restricted
             14      Account;
             15          .    provides that certain sales and use tax dedications shall be deposited in the
             16      Transportation Investment Fund of 2005 rather than the Centennial Highway Fund
             17      Restricted Account and the Critical Highway Access Needs Fund;
             18          .    provides that certain principal, interest, and issuance costs of bonds shall be paid
             19      from the Transportation Investment Fund of 2005 rather than the Centennial
             20      Highway Fund Restricted Account and the Critical Highway Access Needs Fund;
             21      and
             22          .    makes technical changes.
             23      Money Appropriated in this Bill:
             24          None
             25      Other Special Clauses:
             26          This bill takes effect on July 1, 2012.
             27      Utah Code Sections Affected:


             28      AMENDS:
             29          41-1a-1201, as last amended by Laws of Utah 2011, Chapters 189 and 268
             30          59-12-103, as last amended by Laws of Utah 2011, Chapters 285, 303, 342, and 441
             31          72-2-118, as last amended by Laws of Utah 2011, Chapter 189
             32          72-2-124, as last amended by Laws of Utah 2011, Chapter 189
             33          72-2-125, as last amended by Laws of Utah 2010, Chapter 278
             34     
             35      Be it enacted by the Legislature of the state of Utah:
             36          Section 1. Section 41-1a-1201 is amended to read:
             37           41-1a-1201. Disposition of fees.
             38          (1) All fees received and collected under this part shall be transmitted daily to the state
             39      treasurer.
             40          (2) Except as provided in Subsections (3), (6), and (7) and Sections 41-1a-422 ,
             41      41-1a-1220 , 41-1a-1221 , and 41-1a-1223 all fees collected under this part shall be deposited in
             42      the Transportation Fund.
             43          (3) Funds generated under Subsections 41-1a-1211 (1)(b)(ii), (6)(b)(ii), and (7) and
             44      Section 41-1a-1212 may be used by the commission to cover the costs incurred in issuing
             45      license plates under Part 4, License Plates and Registration Indicia.
             46          (4) In accordance with Section 63J-1-602.2 , all funds available to the commission for
             47      the purchase and distribution of license plates and decals are nonlapsing.
             48          (5) Except as provided in Subsection (3) and Section 41-1a-1205 , the expenses of the
             49      commission in enforcing and administering this part shall be provided for by legislative
             50      appropriation from the revenues of the Transportation Fund.
             51          (6) [(a) Except as provided in Subsection (6)(b), the] The following portions of the
             52      registration fees imposed under Section 41-1a-1206 for each vehicle shall be deposited in the
             53      [Centennial Highway Fund Restricted Account] Transportation Investment Fund of 2005
             54      created under Section [ 72-2-118 ] 72-2-124 :
             55          [(i) $10] (a) $30 of the registration fees imposed under Subsections 41-1a-1206 (1)(a),
             56      (1)(b), (1)(f), (2), and (5);
             57          [(ii) $1] (b) $21 of the registration fees imposed under Subsections
             58      41-1a-1206 (1)(c)(i)[,] and (1)(c)(ii)[, and (1)(d)(ii)];


             59          [(iii) $2] (c) $2.50 of the registration fee imposed under Subsection
             60      41-1a-1206 (1)(e)(ii);
             61          [(iv) $3] (d) $23 of the registration fee imposed under Subsection 41-1a-1206 (1)(d)(i);
             62      [and]
             63          [(v) $4.50] (e) $24.50 of the registration fee imposed under Subsection
             64      41-1a-1206 (1)(e)(i)[.]; and
             65          (f) $1 of the registration fee imposed under Subsection 41-1a-1206 (1)(d)(ii).
             66          [(b) When the highway general obligation bonds have been paid off and the highway
             67      projects completed that are intended to be paid from revenues deposited in the Centennial
             68      Highway Fund Restricted Account as determined by the Executive Appropriations Committee
             69      under Subsection 72-2-118 (6)(d), the portions of the registration fees deposited under
             70      Subsection (6)(a) for each vehicle shall be deposited in the Transportation Investment Fund of
             71      2005 created by Section 72-2-124 .]
             72          [(7) The following portions of the registration fees imposed under Section 41-1a-1206
             73      for each vehicle shall be deposited in the Transportation Investment Fund of 2005 created by
             74      Section 72-2-124 :]
             75          [(a) $20 of each registration fee collected under Subsections 41-1a-1206 (1)(a), (1)(b),
             76      (1)(c), (1)(d)(i), (1)(e)(i), (1)(f), (2)(a), and (5); and]
             77          [(b) 50 cents of each registration fee collected under Subsection 41-1a-1206 (1)(e)(ii).]
             78          Section 2. Section 59-12-103 is amended to read:
             79           59-12-103. Sales and use tax base -- Rates -- Effective dates -- Use of sales and use
             80      tax revenues.
             81          (1) A tax is imposed on the purchaser as provided in this part for amounts paid or
             82      charged for the following transactions:
             83          (a) retail sales of tangible personal property made within the state;
             84          (b) amounts paid for:
             85          (i) telecommunications service, other than mobile telecommunications service, that
             86      originates and terminates within the boundaries of this state;
             87          (ii) mobile telecommunications service that originates and terminates within the
             88      boundaries of one state only to the extent permitted by the Mobile Telecommunications
             89      Sourcing Act, 4 U.S.C. Sec. 116 et seq.; or


             90          (iii) an ancillary service associated with a:
             91          (A) telecommunications service described in Subsection (1)(b)(i); or
             92          (B) mobile telecommunications service described in Subsection (1)(b)(ii);
             93          (c) sales of the following for commercial use:
             94          (i) gas;
             95          (ii) electricity;
             96          (iii) heat;
             97          (iv) coal;
             98          (v) fuel oil; or
             99          (vi) other fuels;
             100          (d) sales of the following for residential use:
             101          (i) gas;
             102          (ii) electricity;
             103          (iii) heat;
             104          (iv) coal;
             105          (v) fuel oil; or
             106          (vi) other fuels;
             107          (e) sales of prepared food;
             108          (f) except as provided in Section 59-12-104 , amounts paid or charged as admission or
             109      user fees for theaters, movies, operas, museums, planetariums, shows of any type or nature,
             110      exhibitions, concerts, carnivals, amusement parks, amusement rides, circuses, menageries,
             111      fairs, races, contests, sporting events, dances, boxing matches, wrestling matches, closed circuit
             112      television broadcasts, billiard parlors, pool parlors, bowling lanes, golf, miniature golf, golf
             113      driving ranges, batting cages, skating rinks, ski lifts, ski runs, ski trails, snowmobile trails,
             114      tennis courts, swimming pools, water slides, river runs, jeep tours, boat tours, scenic cruises,
             115      horseback rides, sports activities, or any other amusement, entertainment, recreation,
             116      exhibition, cultural, or athletic activity;
             117          (g) amounts paid or charged for services for repairs or renovations of tangible personal
             118      property, unless Section 59-12-104 provides for an exemption from sales and use tax for:
             119          (i) the tangible personal property; and
             120          (ii) parts used in the repairs or renovations of the tangible personal property described


             121      in Subsection (1)(g)(i), whether or not any parts are actually used in the repairs or renovations
             122      of that tangible personal property;
             123          (h) except as provided in Subsection 59-12-104 (7), amounts paid or charged for
             124      assisted cleaning or washing of tangible personal property;
             125          (i) amounts paid or charged for tourist home, hotel, motel, or trailer court
             126      accommodations and services that are regularly rented for less than 30 consecutive days;
             127          (j) amounts paid or charged for laundry or dry cleaning services;
             128          (k) amounts paid or charged for leases or rentals of tangible personal property if within
             129      this state the tangible personal property is:
             130          (i) stored;
             131          (ii) used; or
             132          (iii) otherwise consumed;
             133          (l) amounts paid or charged for tangible personal property if within this state the
             134      tangible personal property is:
             135          (i) stored;
             136          (ii) used; or
             137          (iii) consumed; and
             138          (m) amounts paid or charged for a sale:
             139          (i) (A) of a product transferred electronically; or
             140          (B) of a repair or renovation of a product transferred electronically; and
             141          (ii) regardless of whether the sale provides:
             142          (A) a right of permanent use of the product; or
             143          (B) a right to use the product that is less than a permanent use, including a right:
             144          (I) for a definite or specified length of time; and
             145          (II) that terminates upon the occurrence of a condition.
             146          (2) (a) Except as provided in Subsections (2)(b) through (e), a state tax and a local tax
             147      is imposed on a transaction described in Subsection (1) equal to the sum of:
             148          (i) a state tax imposed on the transaction at a tax rate equal to the sum of:
             149          (A) 4.70%; and
             150          (B) (I) the tax rate the state imposes in accordance with Part 18, Additional State Sales
             151      and Use Tax Act, if the location of the transaction as determined under Sections 59-12-211


             152      through 59-12-215 is in a county in which the state imposes the tax under Part 18, Additional
             153      State Sales and Use Tax Act; and
             154          (II) the tax rate the state imposes in accordance with Part 20, Supplemental State Sales
             155      and Use Tax Act, if the location of the transaction as determined under Sections 59-12-211
             156      through 59-12-215 is in a city, town, or the unincorporated area of a county in which the state
             157      imposes the tax under Part 20, Supplemental State Sales and Use Tax Act; and
             158          (ii) a local tax equal to the sum of the tax rates a county, city, or town imposes on the
             159      transaction under this chapter other than this part.
             160          (b) Except as provided in Subsection (2)(d) or (e), a state tax and a local tax is imposed
             161      on a transaction described in Subsection (1)(d) equal to the sum of:
             162          (i) a state tax imposed on the transaction at a tax rate of 2%; and
             163          (ii) a local tax equal to the sum of the tax rates a county, city, or town imposes on the
             164      transaction under this chapter other than this part.
             165          (c) Except as provided in Subsection (2)(d) or (e), a state tax and a local tax is imposed
             166      on amounts paid or charged for food and food ingredients equal to the sum of:
             167          (i) a state tax imposed on the amounts paid or charged for food and food ingredients at
             168      a tax rate of 1.75%; and
             169          (ii) a local tax equal to the sum of the tax rates a county, city, or town imposes on the
             170      amounts paid or charged for food and food ingredients under this chapter other than this part.
             171          (d) (i) For a bundled transaction that is attributable to food and food ingredients and
             172      tangible personal property other than food and food ingredients, a state tax and a local tax is
             173      imposed on the entire bundled transaction equal to the sum of:
             174          (A) a state tax imposed on the entire bundled transaction equal to the sum of:
             175          (I) the tax rate described in Subsection (2)(a)(i)(A); and
             176          (II) (Aa) the tax rate the state imposes in accordance with Part 18, Additional State
             177      Sales and Use Tax Act, if the location of the transaction as determined under Sections
             178      59-12-211 through 59-12-215 is in a county in which the state imposes the tax under Part 18,
             179      Additional State Sales and Use Tax Act; and
             180          (Bb) the tax rate the state imposes in accordance with Part 20, Supplemental State
             181      Sales and Use Tax Act, if the location of the transaction as determined under Sections
             182      59-12-211 through 59-12-215 is in a city, town, or the unincorporated area of a county in which


             183      the state imposes the tax under Part 20, Supplemental State Sales and Use Tax Act; and
             184          (B) a local tax imposed on the entire bundled transaction at the sum of the tax rates
             185      described in Subsection (2)(a)(ii).
             186          (ii) Subject to Subsection (2)(d)(iii), for a bundled transaction other than a bundled
             187      transaction described in Subsection (2)(d)(i):
             188          (A) if the sales price of the bundled transaction is attributable to tangible personal
             189      property, a product, or a service that is subject to taxation under this chapter and tangible
             190      personal property, a product, or service that is not subject to taxation under this chapter, the
             191      entire bundled transaction is subject to taxation under this chapter unless:
             192          (I) the seller is able to identify by reasonable and verifiable standards the tangible
             193      personal property, product, or service that is not subject to taxation under this chapter from the
             194      books and records the seller keeps in the seller's regular course of business; or
             195          (II) state or federal law provides otherwise; or
             196          (B) if the sales price of a bundled transaction is attributable to two or more items of
             197      tangible personal property, products, or services that are subject to taxation under this chapter
             198      at different rates, the entire bundled transaction is subject to taxation under this chapter at the
             199      higher tax rate unless:
             200          (I) the seller is able to identify by reasonable and verifiable standards the tangible
             201      personal property, product, or service that is subject to taxation under this chapter at the lower
             202      tax rate from the books and records the seller keeps in the seller's regular course of business; or
             203          (II) state or federal law provides otherwise.
             204          (iii) For purposes of Subsection (2)(d)(ii), books and records that a seller keeps in the
             205      seller's regular course of business includes books and records the seller keeps in the regular
             206      course of business for nontax purposes.
             207          (e) Subject to Subsections (2)(f) and (g), a tax rate repeal or tax rate change for a tax
             208      rate imposed under the following shall take effect on the first day of a calendar quarter:
             209          (i) Subsection (2)(a)(i)(A);
             210          (ii) Subsection (2)(b)(i);
             211          (iii) Subsection (2)(c)(i); or
             212          (iv) Subsection (2)(d)(i)(A)(I).
             213          (f) (i) A tax rate increase shall take effect on the first day of the first billing period that


             214      begins after the effective date of the tax rate increase if the billing period for the transaction
             215      begins before the effective date of a tax rate increase imposed under:
             216          (A) Subsection (2)(a)(i)(A);
             217          (B) Subsection (2)(b)(i);
             218          (C) Subsection (2)(c)(i); or
             219          (D) Subsection (2)(d)(i)(A)(I).
             220          (ii) The repeal of a tax or a tax rate decrease shall take effect on the first day of the last
             221      billing period that began before the effective date of the repeal of the tax or the tax rate
             222      decrease if the billing period for the transaction begins before the effective date of the repeal of
             223      the tax or the tax rate decrease imposed under:
             224          (A) Subsection (2)(a)(i)(A);
             225          (B) Subsection (2)(b)(i);
             226          (C) Subsection (2)(c)(i); or
             227          (D) Subsection (2)(d)(i)(A)(I).
             228          (g) (i) For a tax rate described in Subsection (2)(g)(ii), if a tax due on a catalogue sale
             229      is computed on the basis of sales and use tax rates published in the catalogue, a tax rate repeal
             230      or change in a tax rate takes effect:
             231          (A) on the first day of a calendar quarter; and
             232          (B) beginning 60 days after the effective date of the tax rate repeal or tax rate change.
             233          (ii) Subsection (2)(g)(i) applies to the tax rates described in the following:
             234          (A) Subsection (2)(a)(i)(A);
             235          (B) Subsection (2)(b)(i);
             236          (C) Subsection (2)(c)(i); or
             237          (D) Subsection (2)(d)(i)(A)(I).
             238          (iii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
             239      the commission may by rule define the term "catalogue sale."
             240          (3) (a) The following state taxes shall be deposited into the General Fund:
             241          (i) the tax imposed by Subsection (2)(a)(i)(A);
             242          (ii) the tax imposed by Subsection (2)(b)(i);
             243          (iii) the tax imposed by Subsection (2)(c)(i); or
             244          (iv) the tax imposed by Subsection (2)(d)(i)(A)(I).


             245          (b) The following local taxes shall be distributed to a county, city, or town as provided
             246      in this chapter:
             247          (i) the tax imposed by Subsection (2)(a)(ii);
             248          (ii) the tax imposed by Subsection (2)(b)(ii);
             249          (iii) the tax imposed by Subsection (2)(c)(ii); and
             250          (iv) the tax imposed by Subsection (2)(d)(i)(B).
             251          (4) (a) Notwithstanding Subsection (3)(a), for a fiscal year beginning on or after July 1,
             252      2003, the lesser of the following amounts shall be used as provided in Subsections (4)(b)
             253      through (g):
             254          (i) for taxes listed under Subsection (3)(a), the amount of tax revenue generated:
             255          (A) by a 1/16% tax rate on the transactions described in Subsection (1); and
             256          (B) for the fiscal year; or
             257          (ii) $17,500,000.
             258          (b) (i) For a fiscal year beginning on or after July 1, 2003, 14% of the amount
             259      described in Subsection (4)(a) shall be transferred each year as dedicated credits to the
             260      Department of Natural Resources to:
             261          (A) implement the measures described in Subsections 79-2-303 (3)(a) through (d) to
             262      protect sensitive plant and animal species; or
             263          (B) award grants, up to the amount authorized by the Legislature in an appropriations
             264      act, to political subdivisions of the state to implement the measures described in Subsections
             265      79-2-303 (3)(a) through (d) to protect sensitive plant and animal species.
             266          (ii) Money transferred to the Department of Natural Resources under Subsection
             267      (4)(b)(i) may not be used to assist the United States Fish and Wildlife Service or any other
             268      person to list or attempt to have listed a species as threatened or endangered under the
             269      Endangered Species Act of 1973, 16 U.S.C. Sec. 1531 et seq.
             270          (iii) At the end of each fiscal year:
             271          (A) 50% of any unexpended dedicated credits shall lapse to the Water Resources
             272      Conservation and Development Fund created in Section 73-10-24 ;
             273          (B) 25% of any unexpended dedicated credits shall lapse to the Utah Wastewater Loan
             274      Program Subaccount created in Section 73-10c-5 ; and
             275          (C) 25% of any unexpended dedicated credits shall lapse to the Drinking Water Loan


             276      Program Subaccount created in Section 73-10c-5 .
             277          (c) For a fiscal year beginning on or after July 1, 2003, 3% of the amount described in
             278      Subsection (4)(a) shall be deposited each year in the Agriculture Resource Development Fund
             279      created in Section 4-18-6 .
             280          (d) (i) For a fiscal year beginning on or after July 1, 2003, 1% of the amount described
             281      in Subsection (4)(a) shall be transferred each year as dedicated credits to the Division of Water
             282      Rights to cover the costs incurred in hiring legal and technical staff for the adjudication of
             283      water rights.
             284          (ii) At the end of each fiscal year:
             285          (A) 50% of any unexpended dedicated credits shall lapse to the Water Resources
             286      Conservation and Development Fund created in Section 73-10-24 ;
             287          (B) 25% of any unexpended dedicated credits shall lapse to the Utah Wastewater Loan
             288      Program Subaccount created in Section 73-10c-5 ; and
             289          (C) 25% of any unexpended dedicated credits shall lapse to the Drinking Water Loan
             290      Program Subaccount created in Section 73-10c-5 .
             291          (e) (i) For a fiscal year beginning on or after July 1, 2003, 41% of the amount described
             292      in Subsection (4)(a) shall be deposited in the Water Resources Conservation and Development
             293      Fund created in Section 73-10-24 for use by the Division of Water Resources.
             294          (ii) In addition to the uses allowed of the Water Resources Conservation and
             295      Development Fund under Section 73-10-24 , the Water Resources Conservation and
             296      Development Fund may also be used to:
             297          (A) conduct hydrologic and geotechnical investigations by the Division of Water
             298      Resources in a cooperative effort with other state, federal, or local entities, for the purpose of
             299      quantifying surface and ground water resources and describing the hydrologic systems of an
             300      area in sufficient detail so as to enable local and state resource managers to plan for and
             301      accommodate growth in water use without jeopardizing the resource;
             302          (B) fund state required dam safety improvements; and
             303          (C) protect the state's interest in interstate water compact allocations, including the
             304      hiring of technical and legal staff.
             305          (f) For a fiscal year beginning on or after July 1, 2003, 20.5% of the amount described
             306      in Subsection (4)(a) shall be deposited in the Utah Wastewater Loan Program Subaccount


             307      created in Section 73-10c-5 for use by the Water Quality Board to fund wastewater projects.
             308          (g) For a fiscal year beginning on or after July 1, 2003, 20.5% of the amount described
             309      in Subsection (4)(a) shall be deposited in the Drinking Water Loan Program Subaccount
             310      created in Section 73-10c-5 for use by the Division of Drinking Water to:
             311          (i) provide for the installation and repair of collection, treatment, storage, and
             312      distribution facilities for any public water system, as defined in Section 19-4-102 ;
             313          (ii) develop underground sources of water, including springs and wells; and
             314          (iii) develop surface water sources.
             315          (5) (a) Notwithstanding Subsection (3)(a), for a fiscal year beginning on or after July 1,
             316      2006, the difference between the following amounts shall be expended as provided in this
             317      Subsection (5), if that difference is greater than $1:
             318          (i) for taxes listed under Subsection (3)(a), the amount of tax revenue generated for the
             319      fiscal year by a 1/16% tax rate on the transactions described in Subsection (1); and
             320          (ii) $17,500,000.
             321          (b) (i) The first $500,000 of the difference described in Subsection (5)(a) shall be:
             322          (A) transferred each fiscal year to the Department of Natural Resources as dedicated
             323      credits; and
             324          (B) expended by the Department of Natural Resources for watershed rehabilitation or
             325      restoration.
             326          (ii) At the end of each fiscal year, 100% of any unexpended dedicated credits described
             327      in Subsection (5)(b)(i) shall lapse to the Water Resources Conservation and Development Fund
             328      created in Section 73-10-24 .
             329          (c) (i) After making the transfer required by Subsection (5)(b)(i), $150,000 of the
             330      remaining difference described in Subsection (5)(a) shall be:
             331          (A) transferred each fiscal year to the Division of Water Resources as dedicated
             332      credits; and
             333          (B) expended by the Division of Water Resources for cloud-seeding projects
             334      authorized by Title 73, Chapter 15, Modification of Weather.
             335          (ii) At the end of each fiscal year, 100% of any unexpended dedicated credits described
             336      in Subsection (5)(c)(i) shall lapse to the Water Resources Conservation and Development Fund
             337      created in Section 73-10-24 .


             338          (d) After making the transfers required by Subsections (5)(b) and (c), 94% of the
             339      remaining difference described in Subsection (5)(a) shall be deposited into the Water
             340      Resources Conservation and Development Fund created in Section 73-10-24 for use by the
             341      Division of Water Resources for:
             342          (i) preconstruction costs:
             343          (A) as defined in Subsection 73-26-103 (6) for projects authorized by Title 73, Chapter
             344      26, Bear River Development Act; and
             345          (B) as defined in Subsection 73-28-103 (8) for the Lake Powell Pipeline project
             346      authorized by Title 73, Chapter 28, Lake Powell Pipeline Development Act;
             347          (ii) the cost of employing a civil engineer to oversee any project authorized by Title 73,
             348      Chapter 26, Bear River Development Act;
             349          (iii) the cost of employing a civil engineer to oversee the Lake Powell Pipeline project
             350      authorized by Title 73, Chapter 28, Lake Powell Pipeline Development Act; and
             351          (iv) other uses authorized under Sections 73-10-24 , 73-10-25.1 , 73-10-30 , and
             352      Subsection (4)(e)(ii) after funding the uses specified in Subsections (5)(d)(i) through (iii).
             353          (e) After making the transfers required by Subsections (5)(b) and (c) and subject to
             354      Subsection (5)(f), 6% of the remaining difference described in Subsection (5)(a) shall be
             355      transferred each year as dedicated credits to the Division of Water Rights to cover the costs
             356      incurred for employing additional technical staff for the administration of water rights.
             357          (f) At the end of each fiscal year, any unexpended dedicated credits described in
             358      Subsection (5)(e) over $150,000 lapse to the Water Resources Conservation and Development
             359      Fund created in Section 73-10-24 .
             360          (6) Notwithstanding Subsection (3)(a), for a fiscal year beginning on or after July 1,
             361      2003, and for taxes listed under Subsection (3)(a), the amount of revenue generated by a 1/16%
             362      tax rate on the transactions described in Subsection (1) for the fiscal year shall be deposited in
             363      the Transportation Fund created by Section 72-2-102 .
             364          (7) [(a)] Notwithstanding Subsection (3)(a) [and until Subsection (7)(b) applies],
             365      beginning on [January 1, 2000] July 1, 2012, the Division of Finance shall deposit into the
             366      [Centennial Highway Fund Restricted Account] Transportation Investment Fund of 2005
             367      created in Section [ 72-2-118 ] 72-2-124 a portion of the taxes listed under Subsection (3)(a)
             368      equal to the revenues generated by a 1/64% tax rate on the taxable transactions under


             369      Subsection (1).
             370          [(b) Notwithstanding Subsection (3)(a), when the highway general obligation bonds
             371      have been paid off and the highway projects completed that are intended to be paid from
             372      revenues deposited in the Centennial Highway Fund Restricted Account as determined by the
             373      Executive Appropriations Committee under Subsection 72-2-118 (6)(d), the Division of
             374      Finance shall deposit into the Transportation Investment Fund of 2005 created by Section
             375      72-2-124 a portion of the taxes listed under Subsection (3)(a) equal to the revenues generated
             376      by a 1/64% tax rate on the taxable transactions under Subsection (1).]
             377          [(8) (a) Notwithstanding Subsection (3)(a) and in addition to the amount deposited in
             378      Subsection (7)(a), for the 2010-11 fiscal year only, the Division of Finance shall deposit into
             379      the Centennial Highway Fund Restricted Account created by Section 72-2-118 a portion of the
             380      taxes listed under Subsection (3)(a) equal to 1.93% of the revenues collected from the
             381      following taxes, which represents a portion of the approximately 17% of sales and use tax
             382      revenues generated annually by the sales and use tax on vehicles and vehicle-related products:]
             383          [(i) the tax imposed by Subsection (2)(a)(i)(A);]
             384          [(ii) the tax imposed by Subsection (2)(b)(i);]
             385          [(iii) the tax imposed by Subsection (2)(c)(i); and]
             386          [(iv) the tax imposed by Subsection (2)(d)(i)(A)(I).]
             387          [(b) Notwithstanding Subsection (3)(a), in addition to the amount deposited in
             388      Subsection (7)(a), and until Subsection (8)(c) applies, for the 2011-12 fiscal year only, the
             389      Division of Finance shall deposit into the Centennial Highway Fund Restricted Account
             390      created by Section 72-2-118 a portion of the taxes listed under Subsection (3)(a) equal to 8.3%
             391      of the revenues collected from the following taxes, which represents a portion of the
             392      approximately 17% of sales and use tax revenues generated annually by the sales and use tax
             393      on vehicles and vehicle-related products:]
             394          [(i) the tax imposed by Subsection (2)(a)(i)(A);]
             395          [(ii) the tax imposed by Subsection (2)(b)(i);]
             396          [(iii) the tax imposed by Subsection (2)(c)(i); and]
             397          [(iv) the tax imposed by Subsection (2)(d)(i)(A)(I).]
             398          [(c) Notwithstanding Subsection (3)(a), in addition to the amounts deposited under
             399      Subsection (7)(b), and until Subsection (8)(d) or (e) applies, when the highway general


             400      obligation bonds have been paid off and the highway projects completed that are intended to be
             401      paid from revenues deposited in the Centennial Highway Fund Restricted Account as
             402      determined by the Executive Appropriations Committee under Subsection 72-2-118 (6)(d), the
             403      Division of Finance shall deposit into the Transportation Investment Fund of 2005 created by
             404      Section 72-2-124 a portion of the taxes listed under Subsection (3)(a) equal to 8.3% of the
             405      revenues collected from the following taxes, which represents a portion of the approximately
             406      17% of sales and use tax revenues generated annually by the sales and use tax on vehicles and
             407      vehicle-related products:]
             408          [(i) the tax imposed by Subsection (2)(a)(i)(A);]
             409          [(ii) the tax imposed by Subsection (2)(b)(i);]
             410          [(iii) the tax imposed by Subsection (2)(c)(i); and]
             411          [(iv) the tax imposed by Subsection (2)(d)(i)(A)(I).]
             412          [(d)] (8) (a) Notwithstanding Subsection (3)(a), in addition to the amounts deposited in
             413      Subsection (7)[(a), until Subsection (8)(e) applies], and subject to Subsection (8)[(f)](b), for a
             414      fiscal year beginning on or after July 1, 2012, the Division of Finance shall deposit into the
             415      [Centennial Highway Fund Restricted Account] Transportation Investment Fund of 2005
             416      created by Section [ 72-2-118 ] 72-2-124 :
             417          (i) a portion of the taxes listed under Subsection (3)(a) in an amount equal to 8.3% of
             418      the revenues collected from the following taxes, which represents a portion of the
             419      approximately 17% of sales and use tax revenues generated annually by the sales and use tax
             420      on vehicles and vehicle-related products:
             421          (A) the tax imposed by Subsection (2)(a)(i)(A);
             422          (B) the tax imposed by Subsection (2)(b)(i);
             423          (C) the tax imposed by Subsection (2)(c)(i); and
             424          (D) the tax imposed by Subsection (2)(d)(i)(A)(I); plus
             425          (ii) an amount equal to 30% of the growth in the amount of revenues collected in the
             426      current fiscal year from the sales and use taxes described in Subsections (8)[(d)](a)(i)(A)
             427      through (D) that exceeds the amount collected from the sales and use taxes described in
             428      Subsections (8)[(d)](a)(i)(A) through (D) in the 2010-11 fiscal year.
             429          [(e) Notwithstanding Subsection (3)(a), in addition to the amounts deposited under
             430      Subsection (7)(b), and subject to Subsection (8)(f), when the highway general obligation bonds


             431      have been paid off and the highway projects completed that are intended to be paid from
             432      revenues deposited in the Centennial Highway Fund Restricted Account as determined by the
             433      Executive Appropriations Committee under Subsection 72-2-118 (6)(d), for a fiscal year
             434      beginning on or after July 1, 2012, the Division of Finance shall deposit into the Transportation
             435      Investment Fund of 2005 created by Section 72-2-124 :]
             436          [(i) a portion of the taxes listed under Subsection (3)(a) in an amount equal to 8.3% of
             437      the revenues collected from the following taxes, which represents a portion of the
             438      approximately 17% of sales and use tax revenues generated annually by the sales and use tax
             439      on vehicles and vehicle-related products:]
             440          [(A) the tax imposed by Subsection (2)(a)(i)(A);]
             441          [(B) the tax imposed by Subsection (2)(b)(i);]
             442          [(C) the tax imposed by Subsection (2)(c)(i); and]
             443          [(D) the tax imposed by Subsection (2)(d)(i)(A)(I); plus]
             444          [(ii) an amount equal to 30% of the growth in the amount of revenues collected in the
             445      current fiscal year from the sales and use taxes described in Subsections (8)(e)(i)(A) through
             446      (D) that exceeds the amount collected from the sales and use taxes described in Subsections
             447      (8)(e)(i)(A) through (D) in the 2010-11 fiscal year.]
             448          [(f)] (b) (i) Subject to Subsections (8)[(f)](b)(ii) and (iii), in any fiscal year that the
             449      portion of the sales and use taxes deposited under Subsection (8)[(d)](a) [or (e)] represents an
             450      amount that is a total lower percentage of the sales and use taxes described in Subsections
             451      (8)[(e)](a)(i)(A) through (D) generated in the current fiscal year than the total percentage of
             452      sales and use taxes deposited in the previous fiscal year, the Division of Finance shall deposit
             453      an amount under Subsection (8)[(d)](a) [or (e)] equal to the product of:
             454          (A) the total percentage of sales and use taxes deposited under Subsection (8)[(d)](a)
             455      [or (e)] in the previous fiscal year; and
             456          (B) the total sales and use tax revenue generated by the taxes described in Subsections
             457      (8)[(e)](a)(i)(A) through (D) in the current fiscal year.
             458          (ii) In any fiscal year in which the portion of the sales and use taxes deposited under
             459      Subsection (8)[(d)](a) [or (e)] would exceed 17% of the revenues collected from the sales and
             460      use taxes described in Subsections (8)[(e)](a)(i)(A) through (D) in the current fiscal year, the
             461      Division of Finance shall deposit 17% of the revenues collected from the sales and use taxes


             462      described in Subsections (8)[(e)](a)(i)(A) through (D) for the current fiscal year under
             463      Subsection (8)[(d)](a) [or (e)].
             464          (iii) In all subsequent fiscal years after a year in which 17% of the revenues collected
             465      from the sales and use taxes described in Subsections (8)[(e)](a)(i)(A) through (D) was
             466      deposited under Subsection (8)[(d)](a) [or (e)], the Division of Finance shall annually deposit
             467      17% of the revenues collected from the sales and use taxes described in Subsections
             468      (8)[(e)](a)(i)(A) through (D) in the current fiscal year under Subsection (8)[(d)](a) [or (e)].
             469          [(9) (a) Notwithstanding Subsection (3)(a) and for the fiscal year 2008-09 only, the
             470      Division of Finance shall deposit $55,000,000 of the revenues generated by the taxes listed
             471      under Subsection (3)(a) into the Critical Highway Needs Fund created by Section 72-2-125 .]
             472          [(b)] (9) Notwithstanding Subsection (3)(a) [and until Subsection (9)(c) applies], and in
             473      addition to the amounts deposited under Subsection (7) and (8), for a fiscal year beginning on
             474      or after July 1, [2009] 2012, the Division of Finance shall annually deposit $90,000,000 of the
             475      revenues generated by the taxes listed under Subsection (3)(a) into the [Critical Highway
             476      Needs] Transportation Investment Fund of 2005 created by Section [ 72-2-125 ] 72-2-124 .
             477          [(c) Notwithstanding Subsection (3)(a) and in addition to any amounts deposited under
             478      Subsections (7) and (8), when the general obligation bonds authorized by Section 63B-16-101
             479      have been paid off and the highway projects completed that are included in the prioritized
             480      project list under Subsection 72-2-125 (4) as determined in accordance with Subsection
             481      72-2-125 (6), the Division of Finance shall annually deposit $90,000,000 of the revenues
             482      generated by the taxes listed under Subsection (3)(a) into the Transportation Investment Fund
             483      of 2005 created by Section 72-2-124 .]
             484          (10) Notwithstanding Subsection (3)(a), for each fiscal year beginning with fiscal year
             485      2009-10, $533,750 shall be deposited into the Qualified Emergency Food Agencies Fund
             486      created by Section 9-4-1409 and expended as provided in Section 9-4-1409 .
             487          (11) (a) [(i)] Notwithstanding Subsection (3)(a), except as provided in Subsection
             488      (11)[(a)(ii)](b), and [until Subsection (11)(b) applies] in addition to any amounts deposited
             489      under Subsections (7), (8), and (9), beginning on [January 1, 2009] July 1, 2012, the Division
             490      of Finance shall deposit into the [Critical Highway Needs Fund] Transportation Investment
             491      Fund of 2005 created by Section [ 72-2-125 ] 72-2-124 the amount of tax revenue generated by a
             492      .025% tax rate on the transactions described in Subsection (1).


             493          [(ii)] (b) For purposes of Subsection (11)(a)[(i)], the Division of Finance may not
             494      deposit into the [Critical Highway Needs Fund] Transportation Investment Fund of 2005 any
             495      tax revenue generated by amounts paid or charged for food and food ingredients, except for tax
             496      revenue generated by a bundled transaction attributable to food and food ingredients and
             497      tangible personal property other than food and food ingredients described in Subsection (2)(e).
             498          [(b) (i) Notwithstanding Subsection (3)(a), except as provided in Subsection (11)(b)(ii),
             499      and in addition to any amounts deposited under Subsections (7), (9), and (10), when the general
             500      obligation bonds authorized by Section 63B-16-101 have been paid off and the highway
             501      projects completed that are included in the prioritized project list under Subsection 72-2-125 (4)
             502      as determined in accordance with Subsection 72-2-125 (6), the Division of Finance shall
             503      deposit into the Transportation Investment Fund of 2005 created by Section 72-2-124 the
             504      amount of tax revenue generated by a .025% tax rate on the transactions described in
             505      Subsection (1).]
             506          [(ii) For purposes of Subsection (11)(b)(i), the Division of Finance may not deposit
             507      into the Transportation Investment Fund of 2005 any tax revenue generated by amounts paid or
             508      charged for food and food ingredients, except for tax revenue generated by a bundled
             509      transaction attributable to food and food ingredients and tangible personal property other than
             510      food and food ingredients described in Subsection (2)(e).]
             511          (12) (a) Notwithstanding Subsection (3)(a), and except as provided in Subsection
             512      (12)(b), beginning on January 1, 2009, the Division of Finance shall deposit into the
             513      Transportation Fund created by Section 72-2-102 the amount of tax revenue generated by a
             514      .025% tax rate on the transactions described in Subsection (1) to be expended to address
             515      chokepoints in construction management.
             516          (b) For purposes of Subsection (12)(a), the Division of Finance may not deposit into
             517      the Transportation Fund any tax revenue generated by amounts paid or charged for food and
             518      food ingredients, except for tax revenue generated by a bundled transaction attributable to food
             519      and food ingredients and tangible personal property other than food and food ingredients
             520      described in Subsection (2)(e).
             521          Section 3. Section 72-2-118 is amended to read:
             522           72-2-118. Centennial Highway Fund Restricted Account.
             523          (1) There is created a restricted account entitled the Centennial Highway Fund


             524      Restricted Account within the Transportation Investment Fund of 2005 created by Section
             525      72-2-124 .
             526          (2) The account consists of money generated from the following revenue sources:
             527          (a) any voluntary contributions received for the construction, major reconstruction, or
             528      major renovation of state or federal highways; and
             529          (b) appropriations made to the fund by the Legislature[;].
             530          [(c) registration fees designated under Subsection 41-1a-1201 (6)(a); and]
             531          [(d) the sales and use tax amounts provided for in Section 59-12-103 .]
             532          (3) (a) The account shall earn interest.
             533          (b) All interest earned on account money shall be deposited into the account.
             534          (4) The executive director may use account money, as prioritized by the Transportation
             535      Commission, only to pay the costs of construction, major reconstruction, or major renovation
             536      to state and federal highways.
             537          (5) When the highway general obligation bonds have been paid off and the highway
             538      projects completed that are intended to be paid from revenues deposited in the account as
             539      determined by the Executive Appropriations Committee under Subsection (6)(d), the Division
             540      of Finance shall transfer any existing balance in the account into the Transportation Investment
             541      Fund of 2005 created by Section 72-2-124 .
             542          (6) (a) The Division of Finance shall monitor the highway general obligation bonds
             543      that are being paid from revenues deposited in the account.
             544          (b) The department shall monitor the highway construction, major reconstruction, or
             545      major renovation projects that are being paid from revenues deposited in the account.
             546          (c) Upon request by the Executive Appropriations Committee of the Legislature:
             547          (i) the Division of Finance shall report to the committee the status of all highway
             548      general obligation bonds that are being paid from revenues deposited in the account; and
             549          (ii) the department shall report to the committee the status of all highway construction,
             550      major reconstruction, or major renovation projects that are being paid from revenues deposited
             551      in the account.
             552          (d) The Executive Appropriations Committee of the Legislature shall notify the State
             553      Tax Commission, the department, and the Division of Finance when:
             554          (i) all highway general obligation bonds that are intended to be paid from revenues


             555      deposited in the account have been paid off; and
             556          (ii) all highway projects that are intended to be paid from revenues deposited in the
             557      account have been completed.
             558          [(7) (a) The Division of Finance shall, from funds that are deposited into the
             559      Centennial Highway Fund Restricted Account, transfer into the Transportation Investment
             560      Fund of 2005 created by Section 72-2-124 the amount of funds certified by the Transportation
             561      Commission in accordance with Subsection (7)(b) that are not required to pay:]
             562          [(i) principal, interest, and issuance costs of bonds issued for projects in the Centennial
             563      Highway Program in the current fiscal year; or]
             564          [(ii) construction or reconstruction costs for projects in the Centennial Highway
             565      Program in the current fiscal year.]
             566          [(b) The Division of Finance shall transfer the amount under Subsection (7)(a) when
             567      the Division of Finance receives a written letter from the Transportation Commission certifying
             568      the amount of funds available under Subsection (7)(a).]
             569          Section 4. Section 72-2-124 is amended to read:
             570           72-2-124. Transportation Investment Fund of 2005.
             571          (1) There is created a special revenue fund entitled the Transportation Investment Fund
             572      of 2005.
             573          (2) The fund consists of money generated from the following sources:
             574          (a) any voluntary contributions received for the maintenance, construction,
             575      reconstruction, or renovation of state and federal highways;
             576          (b) appropriations made to the fund by the Legislature;
             577          (c) the sales and use tax revenues deposited into the fund in accordance with Section
             578      59-12-103 ; and
             579          (d) registration fees designated under [Subsection] Section 41-1a-1201 [(7)].
             580          [(3) When the highway general obligation bonds have been paid off and the highway
             581      projects completed that are intended to be paid from revenues deposited in the Centennial
             582      Highway Fund Restricted Account as determined by the Executive Appropriations Committee
             583      under Subsection 72-2-118 (6)(d), the fund shall also consist of money generated from the
             584      following sources:]
             585          [(a) registration fees designated under Subsection 41-1a-1201 (6)(a); and]


             586          [(b) the sales and use tax amounts provided for in Section 59-12-103 .]
             587          [(4)] (3) (a) The fund shall earn interest.
             588          (b) All interest earned on fund money shall be deposited into the fund.
             589          [(5)] (4) (a) Except as provided in Subsection [(5)] (4)(b), the executive director may
             590      use fund money only to pay:
             591          (i) the costs of maintenance, construction, reconstruction, or renovation to state and
             592      federal highways prioritized by the Transportation Commission through the prioritization
             593      process for new transportation capacity projects adopted under Section 72-1-304 ;
             594          (ii) the costs of maintenance, construction, reconstruction, or renovation to the highway
             595      projects described in Subsection 63B-18-401 (2); [and]
             596          (iii) principal, interest, and issuance costs of bonds authorized by Section
             597      63B-18-401 [.];
             598          (iv) principal, interest, and issuance costs of bonds authorized by Section 63-16-101
             599      for projects prioritized in accordance with Section 72-2-125 ; and
             600          (v) all highway general obligation bonds that are intended to be paid from revenues in
             601      the Centennial Highway Fund Restricted Account created by Section 72-2-118 .
             602          (b) The executive director may use fund money to exchange for an equal or greater
             603      amount of federal transportation funds to be used as provided in Subsection [(5)] (4)(a).
             604          [(6)] (5) (a) Before bonds authorized by Section 63B-18-401 may be issued in any
             605      fiscal year, the department and the commission shall appear before the Executive
             606      Appropriations Committee of the Legislature and present the amount of bond proceeds that the
             607      department needs to provide funding for the projects identified in Subsection 63B-18-401 (2)
             608      for the next fiscal year.
             609          (b) The Executive Appropriations Committee of the Legislature shall review and
             610      comment on the amount of bond proceeds needed to fund the projects.
             611          [(7)] (6) The Division of Finance shall, from money deposited into the fund, transfer
             612      the amount of funds necessary to pay principal, interest, and issuance costs of bonds authorized
             613      by Section 63B-18-401 in the current fiscal year to the appropriate debt service or sinking fund.
             614          Section 5. Section 72-2-125 is amended to read:
             615           72-2-125. Critical Highway Needs Fund.
             616          (1) There is created a special revenue fund within the Transportation Investment Fund


             617      of 2005 known as the "Critical Highway Needs Fund."
             618          (2) The fund consists of money generated from the following sources:
             619          (a) any voluntary contributions received for the maintenance, construction,
             620      reconstruction, or renovation of state and federal highways; and
             621          (b) appropriations made to the fund by the Legislature[; and].
             622          [(c) the sales and use tax revenues deposited into the fund in accordance with Section
             623      59-12-103 .]
             624          (3) (a) The fund shall earn interest.
             625          (b) Interest on fund money shall be deposited into the fund.
             626          (4) (a) The executive director shall use money deposited into the fund to pay[: (i)] the
             627      costs of right-of-way acquisition, maintenance, construction, reconstruction, or renovation to
             628      state and federal highways identified by the department and prioritized by the commission in
             629      accordance with this Subsection (4)[; and].
             630          [(ii) principal, interest, and issuance costs of bonds authorized by Section 63B-16-101 .]
             631          (b) (i) The department shall:
             632          (A) establish a complete list of projects to be maintained, constructed, reconstructed, or
             633      renovated using the funding described in Subsection (4)(a) based on the following criteria:
             634          (I) the highway construction project is a high priority project due to high growth in the
             635      surrounding area;
             636          (II) the highway construction project addresses critical access needs that have a high
             637      impact due to commercial and energy development;
             638          (III) the highway construction project mitigates congestion;
             639          (IV) whether local matching funds are available for the highway construction project;
             640      and
             641          (V) the highway construction project is a critical alternative route for priority Interstate
             642      15 reconstruction projects; and
             643          (B) submit the list of projects to the commission for prioritization in accordance with
             644      Subsection (4)(c).
             645          (ii) A project that is included in the list under this Subsection (4):
             646          (A) is not required to be currently listed in the statewide long-range plan; and
             647          (B) is not required to be prioritized through the prioritization process for new


             648      transportation capacity projects adopted under Section 72-1-304 .
             649          (c) (i) The commission shall prioritize the project list submitted by the department in
             650      accordance with Subsection (4)(b).
             651          (ii) For projects prioritized under this Subsection (4)(c), the commission shall give
             652      priority consideration to fully funding a project that meets the criteria under Subsection
             653      (4)(b)(i)(A)(V).
             654          (d) (i) Expenditures of bond proceeds issued in accordance with Section 63B-16-101
             655      by the department for the construction of highway projects prioritized under this Subsection (4)
             656      may not exceed $1,200,000,000.
             657          (ii) Money expended from the fund for principal, interest, and issuance costs of bonds
             658      issued under Section 63B-16-101 is not considered an expenditure for purposes of the
             659      $1,200,000,000 cap under Subsection (4)(d)(i).
             660          (e) (i) Before bonds authorized by Section 63B-16-101 may be issued in any fiscal
             661      year, the department and the commission shall appear before the Executive Appropriations
             662      Committee of the Legislature and present:
             663          (A) the commission's current list of projects established and prioritized in accordance
             664      with this Subsection (4); and
             665          (B) the amount of bond proceeds that the department needs to provide funding for
             666      projects on the project list prioritized in accordance with this Subsection (4) for the next fiscal
             667      year.
             668          (ii) The Executive Appropriations Committee of the Legislature shall review and
             669      comment on the prioritized project list and the amount of bond proceeds needed to fund the
             670      projects on the prioritized list.
             671          (f) The Division of Finance shall, from money deposited into the fund, transfer the
             672      amount of funds necessary to pay principal, interest, and issuance costs of bonds authorized by
             673      Section 63B-16-101 in the current fiscal year to the appropriate debt service or sinking fund.
             674          (5) When the general obligation bonds authorized by Section 63B-16-101 have been
             675      paid off and the highway projects completed that are included in the prioritized project list
             676      under Subsection (4), the Division of Finance shall transfer any existing balance in the fund
             677      into the Transportation Investment Fund of 2005 created by Section 72-2-124 .
             678          (6) (a) The Division of Finance shall monitor the general obligation bonds authorized


             679      by Section 63B-16-101 .
             680          (b) The department shall monitor the highway construction or reconstruction projects
             681      that are included in the prioritized project list under Subsection (4).
             682          (c) Upon request by the Executive Appropriations Committee of the Legislature:
             683          (i) the Division of Finance shall report to the committee the status of all general
             684      obligation bonds issued under Section 63B-16-101 ; and
             685          (ii) the department shall report to the committee the status of all highway construction
             686      or reconstruction projects that are included in the prioritized project list under Subsection (4).
             687          (d) When the Division of Finance has reported that the general obligation bonds issued
             688      by Section 63B-16-101 have been paid off and the department has reported that projects
             689      included in the prioritized project list are complete to the Executive Appropriations Committee
             690      of the Legislature, the Division of Finance shall transfer any existing fund balance in
             691      accordance with Subsection (5).
             692          (7) (a) Unless prioritized and approved by the Transportation Commission, the
             693      department may not delay a project prioritized under this section to a different fiscal year than
             694      programmed by the commission due to an unavoidable shortfall in revenues if:
             695          (i) the prioritized project was funded by the Legislature in an appropriations act; or
             696          (ii) general obligation bond proceeds have been issued for the project in the current
             697      fiscal year.
             698          (b) For projects identified under Subsection (7)(a), the commission shall prioritize and
             699      approve any project delays for projects prioritized under this section due to an unavoidable
             700      shortfall in revenues if:
             701          (i) the prioritized project was funded by the Legislature in an appropriations act; or
             702          (ii) general obligation bond proceeds have been issued for the project in the current
             703      fiscal year.
             704          Section 6. Effective date.
             705          This bill takes effect on July 1, 2012.





Legislative Review Note
    as of 2-16-12 4:01 PM


Office of Legislative Research and General Counsel


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